PRESS RELEASE
19 September 2024
Public thematic report
THE NATIONAL FOREST OFFICE AND THE
CHALLENGE OF ECOLOGICAL TRANSITION
Established in 1964, the National Forest Office (
Office National des Forêts
, ONF) is an
industrial and commercial public agency (EPIC) responsible for the sustainable management
of public forests. In mainland France, the ONF manages approximately 1.7 million hectares
of State-owned forests and 2.9 million hectares belonging to other public forest owners,
including local authorities. The principles governing the management of these forests have
been defined in the Forest Code since 1827 defined in the Forest Code since 1827, known as
the “forestry regime”.
With a budget exceeding €900 million and a workforce of 8,043 staff
as of the end of 2023, the ONF oversees 25 % of the forested area in mainland France and
markets 40 % of the timber produced in the country. The ONF also undertakes public-
interest missions on behalf of the State, such as initiatives aimed at biodiversity
conservation.
Its EPIC status enables it to operate in competitive markets by offering
services such as forestry works, consultancy, and project management.
Fragile public forests at the centre of ecological transition challenges
Droughts and pest infestations are causing large-scale forest dieback. Between 2018 and 2021,
25,000 hectares of state-owned forests, along with an equivalent area of community forests,
were destroyed, necessitating reforestation efforts supported by the State. Additionally,
climate change is slowing the growth of forest stands and reducing the biological productivity
of French public forests. This vulnerability has highlighted the importance of the environmental
services provided by forests, including biodiversity conservation and carbon storage. The ONF
must now fully incorporate these aspects into its management practices.
An improving financial position
Revenue from the sale of state-owned timber accounts for 40 % of the ONF's turnover. This
revenue has increased due to the rise in timber prices observed in 2022 and 2023, contributing
to a reduction in the organisation's indebtedness to €271.3 million at the end of 2023, down
from a peak of nearly €400 million in 2020 and 2021. This positive trend is also the result of
State support in covering the costs associated with implementing the forest regime in other
public forests and the ONF’s public-interest missions. However, as the financing of these
missions only reached a sustainable balance in 2023, the ONF must continue its efforts to
stabilise their costs further. To ensure its commercial operations remain profitable, the ONF
has raised the prices of its services, improved its analytical management tools, and reduced its
wage bill.
Fragile sustainability
Despite recent improvements, the financial sustainability of the ONF remains fragile.
To cushion
the impact of price fluctuations, the State, the ONF, and FNCOFOR have agreed on the goal of
expanding supply contracts. However, achieving this objective requires the ONF to closely
monitor both the prices of the timber it sells and its production costs. The expansion of the
forestry regime also demands significant resources, with the ONF estimating the need for 70
additional employees and €7 million for every 100,000 hectares added. Given the reluctance of
public forest owners to increase their contributions to the funding of the forestry regime, the
fulfilment of this goal will
ultimately
depend on even greater financial support from the State.
Clarifying the eligibility criteria for the forest regime is therefore desirable, along with an
assessment of the financial implications of the decisions made. Finally, the gradual reduction in
ONF staff has significantly impacted the organisation's ability to meet its objectives. However,
the precise number of staff required for the ONF's missions, as well as their distribution by
status, is not currently well-documented and needs to be addressed.
A foreseeable increase in State support in the absence of new sources of funding
The ongoing shift in the ONF’s missions challenges the long-standing principle that "
the forest
pays for itself through timber sales.
" By 2050, the ONF estimates that the annual replanting
effort for declining State-owned forests will need to reach 21,000 hectares, compared to the
current 12,000 hectares. The cost of reforestation is projected to rise to between €100 million
and €120 million per year for State-owned forests alone, up from the current €44.2 million. The
financial effort required for other public forests is estimated at €120 million annually, which
will fall to their owners, with support from the State. Given its financial limitations and without
new sources of funding, the ONF will not be able to meet the ecological transition challenges—
particularly those related to climate change—on its own. In this context, the Court of Accounts
recommends prioritising the objectives assigned to the ONF and adjusting its human and
financial resources to ensure it can fulfil them.
Read the report
PRESS CONTACTS
Julie Poissier
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Communications Director
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T
+33 (0)6 87 36 52 21
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julie.poissier@ccomptes.fr
Sarah Gay
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Press Relations Officer
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T +33 (0)6 50 86 91 83
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sarah.gay@ccomptes.fr