Preserving property value with continuous-cover forestry

The market value of a forest property depends on many factors—among them site productivity (bonitet), standing timber volume, and accessibility (for example, the road network). On properties managed with continuous-cover forestry, average standing volume is generally much higher than on properties managed using the clearcut method (kalhyggesbruk).^[1]

Higher standing volume with continuous-cover forestry

In 2022, the average standing volume in Sweden outside protected areas was 141 m3sk (cubic meters of forest volume) per hectare^[2]. This can be seen as representative of clearcut forestry, since continuous-cover forestry is practiced on only 2–3% of forest land.^[3] In stands managed with continuous-cover methods, standing volume should generally not fall below 150 m3sk to avoid reduced growth.^[1]

In practice, standing volumes in continuous-cover stands are often significantly higher—around 250 m3sk in southern Sweden and about 200 m3sk in northern Sweden.^[4] That means the portion of property value tied to standing volume can be substantially higher for properties managed with continuous-cover methods.

A steady increase in property values and timber prices

Broker statistics compiled by Ludvig & Co (formerly LRF Konsult) for 2022 show that in southern Sweden, property value measured in SEK per m3sk was 911 SEK/m3sk. According to the same report, prices have increased 39% over the last 10 years—and timber prices have also steadily risen during that period. This means that owners who have managed their properties with continuous-cover methods have been able to sell timber at improving prices while also seeing property values rise substantially.