Ownership rights in Estonia

CEPF Seminar on Baltic Countries Forestry

Brussels, 26.06.2013

Priit Põllumäe

Managing director

Estonian Private Forest Union

▪ The EPFU was founded in 1992

▪ We´re a non-profit making organization

▪ We unite about 30 regional forest owners associations

all over Estonia

▪ About 4000 forest owners with ~250 000 ha of forest

land

Briefly about us...

...and about private forest ownership

▪ ~97 000 forest owners in Estonia (0,2 ha < ) from

which:

▪ 93 000 private individuals

▪ ~ 1 M ha of private forest ownership, yet fragmented:

▪ average property 10 ha

▪ 56% of NIPF-s own properties between 0,1-5 ha

Why ownership rights ▪ Ownership rights as a cornerstone for land

management

▪ Land management is a lifestyle, a way and a

possibility to live in rural areas

▪ Indeed, we do have the CAP! But....

Viability!! ▪ ….if ownership rights are not recognized or extremely limited viable land management is not possible!

Infrastructure ▪ 1,58 ha of land:

▪ you pay land tax ~7-8 € annually

▪ the use is limited!

▪ but you have the right to

get compensated 31,6 € cents▪ Problem recognized by the Chancellor of Justice and the Supreme Court of Estonia!

Nature protection ▪ Most importantly – forest owners are not

against biodiversity protection

▪ Yet, numerous problems exist!

▪ practically no involvement of landowners in developing

measures

▪ Natura support may continue, but what about the other

areas?

Taxation ▪ Land tax

▪ Income tax for NIPF owners

is an incredible burden!▪ deductions allowed but only for three years after a harvest

▪ an extremely difficult set of paperwork involved

▪ the system does not encourage forest owners to invest back into the land

Hunting ▪ We have a new Hunting Act!!

▪ Forest owners might get a 10% compensation for

damages that might occur

▪ Landowners representatives are involved in regional

Hunting Councils (decisions made by consensus)

▪ No obligations for the hunters to make contracts with

the landowners

To conclude ▪ In many cases the situation and problems

among all Baltic countries are very similar

▪ If ownership rights are not acknowledged or

very limited the viability of land management is

under threat

If it is not viable... ▪ … we may as well forget the development of

rural areas and the availability of sustainable,

natural resources and their management

It comes down to... ▪ … a decision: how to implement?!

▪ the reality is: educate and trust forest owners and

they will provide timber, infrastructure, biodiversity, clean

water, food, non-timber products etc. much more

cheaper!

priit.pollumae@erametsaliit.ee

www.erametsaliit.ee