The Estonian Private Forestry Union protested on Toompea on Wednesday, May 29, demanding that when the state imposes restrictions on a private landowner's land that prevent it from being used, it should be accompanied by fair compensation and the possibility of replacing the land, as well as an early end to land tax increases.

Currently, the state compensates landowners for forests in areas with restrictions due to nature conservation, with the amount varying depending on the type of restrictions: areas within Natura 2000 protected or restricted zones or a forest reserve in a protected area receive €134 per hectare per year, and Natura 2000 areas without a forest reserve receive up to €60 per hectare per year.

Researchers from the institute of forestry and engineering at the University of Life Sciences have developed a methodology to determine how much income landowners actually lose due to restrictions on Natura 2000 forest areas.

The study considered the forest area's growth potential and conservation constraints, dividing the income into one-time and annual income. The landowner receive a one-time compensation when the protection regime is established. The annual compensation is paid from the year after the amendments come into force.

The calculations show that the fair compensation in target protection zones, including forest habitats in restricted zones and reserves, is €134 per hectare on average and €167 per hectare based on the average prices over the last three years.

However, the compensation rates varied significantly based on the age and productivity of the forest, as well as the activities that could occur there without protection. Currently, strictly protected regions pay €134 per hectare in compensation, while last year's prices averaged €197.

In merely restricted zones, so not under strict protection, the average rate of compensation, taking into account current restrictions, was €30 per hectare at average prices over the last five years and €40 per hectare at last year's prices. At last year's prices, the average compensation was €61 per hectare.

The analysis was commissioned from the university by the Private Forestry Union and the Center for Environmental Investments.

The Ministry of Climate is now evaluating how to set fair compensation rates according to the new methodology, and in June the Ministry of Climate, the Environment Agency, the Private Forestry Union, the Ministry of Regional Development and Agriculture, and the Estonian Nature Foundation will meet to discuss this.

According to the Private Forestry Union (Erametsaliit), 50,000 hectares of private forests are under strict protection in Estonia, while around 150,000 hectares are under less strict protection.

However, according to the Environment Agency, 39,000 hectares of private forests are under strict protection as of May 2024, or about 3 percent of Estonia's private forests. A year ago, the same data showed 27,000 hectares of private forests under strict protection.

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