For the first time in many years there are now some reasons for optimism in Danish forestry. Mr Niels Reventlow, Chairman of the Danish Forest Association, points to three main reasons for the new favourable prospects.
1. The Danish Government has halved the property tax on forests
This tax concession is the result of may years of hard work by the Danish Forest Association. We have presented documentary evidence of the harmful effects of the high property tax on forestry, and finally the Government could no longer ignore the problems.
2. Timber prices are moving in the right direction
The markets for Danish wood are situated far away from the country. The economic situation for Danish forestry is to a large extent determined by business cycles far away from the individual forest owner.
Finally sales of Danish wood are picking up after some tough years with storm damages in 1999 and in 2005.
3. The surrounding world is now prepared to pay for natural forest values
Society at large is finally getting conscious of the fact that co-operation with forest owners is necessary and that they must be paid for preserving natural values and for offering the public new experiences.
The coming EU rural district programme is an example on European level. The principles of the programme are converted into practice in Natura 2000. The Danish State purchases nature conservation services from private forest owners on the basis of agreements and not by applying force. This is a decisive factor for building constructive co-operation with forest owners.
Protection of species is the following important value that forest owners will provide to the society as an element of Natura 2000. Danish forest owners are happy to supply nature conservation, provided that there are clearly defined objectives, fair pay and freedom for forest owners to determine how the agreed targets shall be reached.
Proposed new Danish system
Natural values and nature experiences are services sold on the market. Private forests owners are able and willing to provide more natural values and nature experiences, if such sales contribute to earnings from forestry.
The Danish Forest Association proposes that the Government shall apply more flexible and market oriented systems instead of traditional subsidies:
Let politicians and public authorities make a list of all the things that society could imagine purchasing from private forests, for example more deciduous forests, untouched forests, spectacular nature, off road walking, nights walks, outdoor and leisure time parks etc. And then let private forest owners offer what they can deliver from this list in exchange for a reasonably yearly pay.
The authorities will be able to pick from the offer list the services that give the best value for taxpayers' money. This will constitute a modern, market oriented nature conservation policy with the best possible cost-benefit relation for taxpayers.