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- Sell the forest with the land or only the felling rights? A comparison
Sell the forest with the land or only the felling rights? A comparison
When a mature forest is ready for harvest, the owner has two main routes: sell the whole plot or sell only the right to fell the timber. Both are legal and common, but they suit different situations.
Comparison
| Criterion | Forest with land | Felling rights only |
|---|---|---|
| What stays yours | Nothing, the plot passes to the buyer | The land and the regenerating forest |
| Sum | Higher: timber plus land | Lower: timber only, minus harvesting costs |
| Regeneration duty | The buyer’s | Yours (within 3 years) |
| Taxes | No income tax after 10 years of ownership | Income taxed under separate rules |
| Future obligations | None | Land tax, maintenance, regeneration |
When selling with the land makes sense
When the forest is far from home, when nobody can look after it, when you want the full sum at once and the matter closed. Also when the plot is small: tending 2 ha of regenerating forest for decades rarely pays off.
When selling only the felling rights makes sense
When you want to keep the land for your children, when the plot is next to the homestead, when you plan to replant and grow a new forest yourself. Selling the felling rights lets you “take the harvest” and carry on.
What to watch when selling felling rights
- State the boundaries of the felling area, the species to be cut and the deadline clearly in the contract
- Agree who obtains the permit and who is responsible for complying with its conditions
- Discuss the condition of roads after the work and the handling of logging residues
- Set the payment terms: an advance before work and the balance on measurement, or the full sum upfront
- Remember that the regeneration duty within 3 years stays with you unless the contract says otherwise
A third option. You can sell the forest with the land and, if the buyer agrees, stipulate in the contract that after harvesting you buy back part of the plot, for example next to the homestead, for a nominal sum. Such arrangements are rare but possible.