ConFor blames the loss of land to windfarms and because forests are being redesigned as part of biodiversity initiatives.
The group wants 9,000 hectares of trees planted every year until 2020.
ConFor says this would create jobs, attract £600 million of business investment and cut CO2 emissions by 3.6million tonnes.
The report says: "Existing bureaucracy and regulation is standing in the way of increased planting. Forestry is a unique industry - the more economic activity, the greater the environmental benefit. It is Scotland's only carbon-cutting industry."
The Scottish Government hopes the country's woodland will increase from 1.34million hectares, to around 2million hectares by 2050.