Surge in farm forest applications
About 120 million has been allocated to forestry for this year, to provide for new planting of about 7,000 hectares (5% up on 2009), while also servicing existing premium commitments.
Evidence of the continued interest in forestry is the increase to date in 2010 compared to the same period in 2009 by more than 26% in the number of applications for approval to plant (from 649 to more than 800).
Agriculture Minister Brendan Smith has also signalled an increase in the available funds in the forestry budget for new planting from 2014 onwards, because of the expected reduction in draw-down of funds for existing premium commitments. By 2014, early planters will be coming to the end of their 20-year premium payment period. They carried out a high level of planting from 1994 onwards.
“We have had a very busy planting season, and next year already looks set to be even busier, judging from the level of enquiries we have received,” said Alan Farrelly of GreenBelt Ltd, Ireland’s largest private forestry company.
“The outlook is good for the forestry sector in Ireland,” he said. “Forestry is a very lucrative land use for farmers, particularly for those with marginal land. The state offers tax free premia of up to 728 per hectare for 20 years, along with covering all the costs of carrying out the works. This guaranteed income is very attractive to farmers in the current economic climate.”
“With the state targeting a short term increase in annual planting from 7,000 to 10,000 hectares, and to 15,000 hectares in the medium term, the future looks very bright for the forestry industry in Ireland.”
