Huge forestry boost welcomed
Nicholas Cotter of Mid Western Forestry Services predicted that farmers previously uninterested in trees will opt to plant in 2004, because forest can "put so much money in their pockets."
His company is urging farmers to immediately apply for forestry approval, so that they are at the top of the queue and can conclude their planting before the end of this year.
Only farmers who have planted or who plant trees between 2000 and the end of 2004 can draw their full decoupled CAP Reform entitlements, plus forestry premium, as negotiated by Minister Walsh.
Mr Cotter said this concession has yet to be passed by the EU Council of Ministers, but he advises farmers they can go ahead and seek forestry approval and be ready to take advantage, without fully committing to forestry until the "double" premium is copper-fastened.
SWS Forestry Services have also welcomed Minister Walsh's announcement that farmers can plant this year and still draw their full Single Farm Payment entitlements. Padraig Egan, Manager, SWS Forestry Services, explained how they can consolidate their Single Payment entitlements by applying to the Department to have them transferred through the National Reserve. Farmers will then receive enhanced Single Payment entitlements, calculated on the total forage area declared in 2005.
Furthermore, these farmers will be able to benefit from the Forestry Premium on their afforested lands.
It is expected that detailed rules will be finalised by the end of March. "However, it is essential to act now in order to avail of and maximise these benefits from the scheme," said Mr Egan.
Nicholas Cotter of Mid Western Forestry Services said the forestry premium concession is ideal for farmers who are scaling down because they cannot meet the labour or investment demands of continuing in livestock farming.
He said an "average" 100 acre livestock farmer can plant 80 acres, for which he gets the full 20 year tax free forestry premium of €14,800 per year, plus a Single Farm Payment of about €10,000 per year. But if planting is delayed to 2005 or later, the Single Farm Payment is not available. "We guarantee planting this year if you act now," he is telling farmers. Weather permitting, forestry planting will continue to the end or May or mid-June, and will resume at the start of November.
Jim Reidy, Teagasc's National Forestry Development Officer, also welcomed the substantially enhanced forestry payments on land planted before the end of 2004, as "a huge boost".
He announced a series of Teagasc meetings and courses in the next two months offering full information to farmers on forestry. Mr Reidy said that, independent of the new premium concessions, any farmers who would receive less than €300 per hectare (€80 per acre) of direct payments from 2005 should seriously consider forestry.
