Voolma, K. 2010. Recent Doctoral Theses from Estonia. Estonian University of Life Sciences.  Baltic Forestry 16 (2): 314.  (Chronicle)

The list of the recent Doctoral Theses is presented indicating the titles, defence place, names of authors and their contacts.

Grege-Staltmane, E. and Tuherm, H. 2010. Importance of Discount Rate in Latvian Forest Valuation.   Baltic Forestry 16 (2): 303 – 311.

Many forest scientists around the world have been spending a lot of time on forest value determination. One of the most widely used methods is the net present value method where asset’s value is calculated as the present value of future cash flow. The challenge of this method is the determination of an appropriate discount rate. A high discount rate reduces the present forest value. Therefore, the authors of the paper have analyzed available materials about discount rates in forestry, evaluating discount rate approaches, as well as inspection of specific cash flow subject to different discount rates with income from 1 ha spruce stand, which required an identical start-up capital. Research literature showed that the discounting involves decreasing a future value to its present value while compounding is the reverse. It was demonstrated clearly with the chart that high rates of compound interest cause a very rapid and unrealistic future value increase, while low rates cause slow value increase for a very long period represented by a common forest rotation; for that reason high discount rates used in forest investments are not rational. The factors – roundwood price, costs, increment and cutting age – are important for appropriate discount rate determination in forest valuation because these factors determine what can be earned. Forest risks may be incorporated by potential investors through application of a higher discount rate in case future incomes are endangered.

Key words: compound interest, discount rate, discount rate approaches, forestry risks, investment in forestry.

Aleinikovas, M. 2010. The XXIII IUFRO World Congress in nSeoul.  Baltic Forestry 16 (2): 312 – 314.  (Chronicle)

IUFRO as 'the global network for forest science cooperation' was established in 1892. It has members of about 700 research institutions and universities from 110 countries and 15 thousand of forest scientists, government officials and international organization experts. IUFRO mission is to promote global cooperation in forest-related research and to enhance the understanding of the ecological, economic and social aspects of forests and trees; as well as to disseminate scientific knowledge to stakeholders and decision-makers and to contribute to forest policy and on-the-ground forest management. The largest forest meeting - the XXIII International Union of Forest Research Organizations (IUFRO) Congress ‘Forests for the Future: Sustaining Society and the Environment’ has been held in Seoul (South Korea) on 23-28 August 2010. The Congress course, programme and peculiarities have been described.

Mizaraitė, D., Mizaras, S. and Sadauskienė, L. 2010. Lithuanian Private Forestry: the Situation, Tendencies and Problems.   Baltic Forestry 16 (2): 296 – 302.

This paper is based on a comparative analysis of private forest owners’ sociological surveys in the years 1999 and 2008. In Lithuania, private forestry arose during the last decade. Today, the private forest sector includes 236 thousand private forest owners. The annual volume from the felling in private forests is approximately 2.3 million m³ (State forest survey service, 2008). The regeneration of private forests is satisfactory and the number of recorded illegal cuttings is decreasing. Over 30 thousand individual forest management plans have been prepared for private forest estates. During the last ten years, the private forests’ management legal basis and system of private forests supervision were created and the new system for private forest owners’ advising and training was initiated.
During the study period, the relative importance of private forest owners' various objectives changed. The importance of wood for home consumption slightly increased. However, the interest in obtaining an income from the wood trade and developing recreational areas became less important. Furthermore, the number of forest owners who either purchased or inherited forest estates significantly increased.
The level of importance of various forest estates management problems also changed. The problem of the strict regulations on private forest management decreased in importance during the last ten years. The most important problem for private forest owners was that the forest estates were inefficient for farming due to their small size. The number of private forest owners willing to sell their forest estate decreased. The majority of private forests owners intended to retain the forest estates and to give the property rights to inheritors in the future. The new EU financial support process arose during the last years. Approximately 16% of respondents intended to apply for financial support from EU funds.
The tendency of the expansion of private forests was observed. The existing problem of the private forest owners’ lack of education and training could be solved by establishing private forest services in municipalities. Furthermore, the compensation system should be improved in the future by compensating for losses in already protected areas.

Key words: private forests, owners, initial state, survey and tendencies.