THE NATIONAL FOREST

OFFICE AND THE

CHALLENGE OF

ECOLOGICAL TRANSITION

Public thematic report

September 2024

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Summary report

Created in 1964, following the administration of waters and forests, which itself was the

successor to centuries-old systems originating from a royal ordinance of 1346, the national

forestry Office (

Office national des forêts

, ONF) is a public agency responsible for the

sustainable management of public forests. In mainland France, this includes 1.7 million

hectares of state-owned forests and 2.9 million hectares belonging to other public forest

owners, primarily local authorities. The principles governing the management of these forests

have been defined by the forest code since 1827 and form the basis of the "forestry regime."

With a budget exceeding €900 million and a workforce of 8,043 employees at the end of

2023, the ONF manages 25 % of the forested area in mainland France and markets 40 % of

the timber produced in the country, making it a key player in the forestry and timber sector.

The ONF is also responsible for carrying out public-interest missions on behalf of the

State, including biodiversity conservation and wildfire prevention. Additionally, as an industrial

and commercial public agency, it operates in competitive markets by offering services such as

forestry works, consultancy, and project management.

Vulnerable public forests at the centre of ecological transition challenges

The increasing frequency of droughts in recent years has severely impacted forest

stands, especially as these events are now often accompanied by outbreaks of insects that

attack trees (such as bark beetles affecting conifers), leading to widespread forest dieback.

Between 2018 and 2021, 25,000 hectares of state-owned forests and an equal area of

forests owned by local authorities were destroyed, necessitating an unprecedented

reforestation effort supported by the central government since 2020 under the recovery plan

and later through France 2030. However, this renewal of public forests is taking place in an

uncertain context, with questions around which tree species to plant, the availability of

seedlings, and the capacity of forestry contractors. Further complicating matters are numerous

imbalances between forests and game populations, which require resolution through closer

cooperation with hunting representatives—a process initiated in 2023.

Climate change is also slowing the growth of forest stands, which has, in turn, reduced

the volume of harvestable timber. The biological production of French public forests decreased

by 6.5 % between 2005 and 2021, and timber harvesting volumes have dropped by nearly

20 % over the past seven years. In contrast, the volume of accidental harvests increased by

160 % in State-owned forests and 277 % in other public forests between 2017 and 2022.

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Changes in timber harvest volumes and accidental harvests in state-owned and other

public forests since 2017 (Mm²)

Source: Court of Accounts, based on ONF data – Detailed figures for harvested and accidental

volumes are not available before 2017

Since 2017, the volume of timber put up for sale has decreased by 19 % in State-owned

forests and by 4 % in other public forests.

The vulnerability of French forests has brought renewed attention to the environmental

services they provide to users and their significance for biodiversity and carbon storage. The

ONF must now fully integrate these elements into its management practices, in addition to

production, which remains a strategic concern for both the organisation and the forestry sector.

While biodiversity preservation already receives particular attention in public forests, the

impact and effectiveness of the ONF’s actions remain difficult to measure. In contrast, public

forests' contribution to the carbon cycle and its value still lack practical applications in the

ONF’s management practices, due to insufficient scientific knowledge.

The challenges facing the ONF are numerous and complex. The planned management

of forests over a 15 to 20-year period is now being called into question, as it is no longer

suitable for the rapid and unpredictable changes in forest populations. In collaboration with its

supervisory authorities and the

Fédération nationale des communes forestières

(FNCOFOR),

the organisation has embarked on a process, which is not yet complete, aimed at updating

management documents to make them more agile and responsive to these challenges.

Furthermore, it is experimenting with diversifying silvicultural methods and tree species to

enhance forest populations' resilience to water stress and other stress conditions, particularly

through the concept of

‘‘

mosaic forest

.’’

An improving financial position

The financing of the ONF has historically been based on four economic sub-models

corresponding to each of its statutory missions, which are partly interdependent.

In practice, the ONF's budget relies heavily on revenue from the sale of state-owned

timber (€315.4 million in 2023, accounting for 40 % of its turnover), which is correlated with the

international and volatile timber market.

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Evolution of turnover and unit prices of timber from state forests since 1999

(in constant 2023 euros)

Source: ONF - Management Report 2023 (reprocessed by the Court of Accounts)

The improvement in the net result of the establishment observed in 2022 (€53 million)

and 2023 (€51 million) is largely due to the surge in timber prices during this period (+50 % for

the main marketed species). This contrasts with the previous situation, characterised by results

that were, at best, slightly positive (2013 to 2016) but mostly deficit (2017 to 2021), which

forced the establishment to rely on borrowing to finance its investments. Following a peak of

nearly €400 million in 2020 and 2021, ONF’s indebtedness has been reduced in 2022 and

2023, standing at €271.3 million.

This positive dynamic is also attributed to an increase in State subsidies to the

establishment aimed at balancing the costs associated with the implementation of the forestry

regime in other public forests and covering historically deficit interest missions.

Evolution of public subsidies between 2013 and 2023

Source: Court of Accounts

The compensatory payment granted to the ONF, in addition to the “management fees”

and the per-hectare tax paid by public forest owners other than the central government for the

implementation of the forestry regime (€39.1 million in 2023), was increased by €7.5 million in

2023, bringing the total to €147.9 million.

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Forestry regime funding implemented in other public forests since 2013 (in €M)

Source: ONF, reprocessed by the Court of Accounts

Relatively stable between 2013 and 2020 (averaging €32.8 million per year), state

funding for the general interest missions entrusted to ONF did not cover the organisation’s

costs, despite the cost-recovery principle outlined in successive State-ONF contracts.

Although state funding increased from 2021 (€51.5 million in 2022 and €67.2 million in 2023),

enabling the ONF to finally achieve financial balance in 2023, the organisation must continue

improving the accuracy of its general-interest mission cost assessments.

This shift since 2021 is also due to the ONF increasing the rates for its commercial

services (work, surveys, expertise) and discontinuing less profitable activities. This strategy

enabled ONF to operate its competitive activities profitably for the first time in 2023.

Additionally, the organisation has worked to enhance its analytical management tools

and reduce its wage bill by favouring the recruitment of private-sector staff, who have formed

the majority of the workforce since 2023.

Fragile financial sustainability and human resource challenges

Despite recent positive trends, the financial sustainability of ONF and its capability to

continue carrying out its missions remain precarious.

To mitigate the impact of market fluctuations, secure demand for timber from public

forests, and support the continuity of local processing businesses, the central government,

ONF, and FNCOFOR have, since 2012, pursued the development of supply contracts. The

goal is to raise these contracts to cover 75 % of timber volumes from State-owned forests and

35 % from other public forests by 2025.

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Evolution of timber volumes sold through supply contracts in state-owned and other

public forests since 2013

Source: Court of Accounts, based on ONF data

This goal is on track to be achieved, with 64.6 % of timber from State-owned forests and

32.9 % from other public forests sold through such agreements in 2023. However, this

progress is more a result of declining available timber volumes than an increase in demand.

Going forward, ONF must remain particularly vigilant about the pricing of timber sold under

these contracts and ensure that its production costs—currently still insufficiently

evaluated— are closely monitored.

The ongoing expansion of the forest management regime, outlined in the current

State- ONF contract, targets an additional 215,000 hectares by the end of 2025. ONF

estimates that managing each increment of 100,000 hectares will require 70 new staff

members and an additional €7 million. However, public forest owners are reluctant to increase

their financial contributions to the regime. As a result, achieving this target

hinges

on ONF’s

ability to redeploy its workforce and rely more heavily on State funding. This situation

underscores the need for clearer criteria governing eligibility for the forest management

regime, accompanied by an evaluation of the financial implications of these policy choices.

Having been subjected to restrictive staffing plans aimed at reducing its workforce

(a drop of 12.3 % since 2013) and, consequently, its wage bill for many years, ONF now finds

its human resources inadequate to handle the growing demands of its assigned missions.

Moreover, ONF successfully secured the cancellation of the employment plan for 2023 and

2024, which proposed a reduction of 95 full-time equivalents (FTE) each year.

The reduction in staff has had significant consequences on the retention of skills within

ONF. Initially affecting support functions, the cuts were later extended to forest workers, whom

the establishment now increasingly relies on to carry out silvicultural work required for the

renewal of public forests, due to the lack of private-sector alternatives. Forest workers are also

needed to strengthen fire surveillance efforts.

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Evolution of workforce by status (FTE)

Source: Court of Accounts - Data from social balance sheets and

management reports. Social balance sheets prior to 2015 are not

comparable due to different category groupings

The exercise of environmental policing missions presents an additional challenge, as it

requires maintaining a sufficient number of civil servants to ensure the proper implementation

of the surveillance duties mandated by the forest management regime.

However, the exact number of staff needed for the ONF's missions, along with their

distribution by status and expertise, has not yet been precisely measured and requires

documentation. This need is further heightened by emerging tensions in the forestry job market

and the historically strained labour relations within the organisation.

A foreseeable increase in State support in the absence of new sources

of funding

The ongoing evolution of the ONF's missions, aimed at better addressing the challenges

of the ecological transition, calls into question the historical principle that

"

the forest pays for

itself through timber sales

," especially given the significant resources required.

By 2050, ONF estimates that the effort to restore deteriorating or potentially deteriorating

stands in state-owned forests will need to increase to 21,000 hectares per year, up from the

current 12,000 hectares. Half of these stands will need to be restored through planting,

compared to only a quarter today, if the goal of forest regeneration is to be maintained. As a

result, the cost of reforestation is projected to rise to between €100 million and

€120 million annually for State-owned forests alone, compared to the current €44.2 million.

Given its role as the owner of State forests, the central government may therefore need to

increase its financial support to ONF to ensure the renewal of these forest areas, in line with

the centuries-old principle of sustainable management applied to them.

The financial effort required to renew other public forests is also estimated at

€120 million per year, to be borne by their owners, with support from the central government

under the France 2030 framework. The increased planting efforts will inevitably impact ONF’s

activities, and the associated costs will need to be covered.

Given its current financial capacity, ONF will not be able to meet the ecological transition

challenges, particularly those linked to climate change, on its own. Without new funding

sources—such as payments for environmental services—and given the unchanged

contribution of local authorities to the forest management system, ONF will remain dependent

on State subsidies to continue its mission of sustainable public forest management.

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The deteriorated state of public finances therefore calls for prioritising the objectives

assigned to ONF in its upcoming objectives contract, as well as adjusting its human and

financial resources to ensure it can meet these goals effectively.