In 2006 Danish forestry showed an average
deficit of 600 DKK (80 €) per hectare. This is an improvement from 2005
when the deficit was as high as 1,000 DKK (135 €).
The main reasons for the improvement are extensive felling and better
timber prices. The deficit is caused by accumulated debts in the
forests. The primary reason for the debts is tax on inheritance when a
private forest is passed on from one generation to the next.
Replanting expenditure increased considerably after the storms in 2005,
but these costs are mainly covered by state subsidies for replanting
deciduous forests after the storms.
In 2006 a reduction of the soil tax on forests was reflected in the
economic results. The tax was reduced from 220 DKK (29 €) in 2005 to
140 DKK (19 €) per hectare. All in all, this means an aggregate
reduction of 28 million DKK (3.8 million €) for Denmark's privately
owned forests. Revenue from sources other than wood continued to
increase in 2006.
The total revenue from private forests, which amounted to 3900 DDK (520
€) per hectare, is the best ever in the 10 last years and there are
good reasons for optimism. However, it must not be forgotten that
forestry still shows a deficit, if interest on forestry debt is taken
into account.
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