Private small forest owners’ cutting decisions are analyzed using decision theory and by focusing on their goals. The need for the study arose because of low cutting intensity among certain groups of small forest owners. This phenomenon is apparent for example in France, the Federal Republic of Germany, the Nordic countries and the USA. My research strategy has been to increase the understanding of the decision situation and decision processes of private small forest owners. This will make it possible for the government and the wood buyers to find effective measures for increasing cutting intensity. The results show that most small forest owners, regardless of owner category, have a long time perspective. In all owner categories we found a strong desire to hold the estate in trust and hand it onto the next generation. Most owners looked upon the estate as an inheritance from the grandparents and a loan from the children. However, the operational goal profile is quite different for various owner categories. If there is a goal conflict between the strategic and operational goals the latter usually prevail. Compared with farmers, many non‐farmers have less economic and financial inducements to cut. For many non‐farmers letting the forest grow is a fair and easy investment alternative. Interesting investment alternatives are needed. Forest bonds are put forward as an idea.