Forest drive poses major decisions for landowners
They heard details of the new forest establishment and support grants. Fifteen annual premium payments of over €500 per hectare for conifers and €600 per ha for broadleaves are on offer, and it will be possible for most farmers availing of these to hold on to their Basic Payments.
In most cases, all costs for establishment of the crop in the early years are covered by an afforestation grant.
Objectives of the new Forestry Programme include planting over 43,000 hectares, and building up to 690 kilometres of new forest roads.
What should I consider before deciding to plant?
Planting is a major decision and all implications should be examined.
Is some of my land suitable for forestry?
What proportion of my land is enclosed or unenclosed?
Are there environmental restrictions on my land, such as NHA, SAC, hen harrier SPA?
Will planting maximise family farm income?
What proportion of my land should I plant?
What rate of annual premium will I qualify for?
How will planting affect my Single Farm Payment (SFP), compensatory allowance, nitrate calculations, stocking level calculation, habitat requirements?
Which establishment scheme will suit me best, afforestation scheme or native woodland scheme?
If buying land with the intention of planting, ensure that the land is eligible for forestry grant aid.
Forestry is a long term commitment, most profits will be realised after 35 to 45 years in the case of conifers. Felling the forest before financial maturity is likely to result in substantial opportunity cost in terms of potential returns.
You are changing land use from agriculture to forestry. This means that after harvesting the timber, you will have a legal obligation to re-establish a forest.
How do I apply for planting approval?
As it takes time for the application to be assessed, make sure to apply for planting approval early to catch the planting season, which normally runs between December and April.
It may be helpful to seek references from existing forest owners when selecting a registered forester, who is required to co-apply with you for planting approval.
Include any areas you are unsure of in the application, as you can plant as much or as little of the area that receives approval afterwards.
Applications are submitted to the Forest Service. Establishment operations can begin only after financial approval has been obtained.
Subject to adherence to scheme conditions and various environmental guidelines, the first instalment of the grant (75%) is payable after the planting stage and includes operations such as ground preparation, drainage, fencing and planting.
The remaining 25% is paid four years after planting, once the trees have become fully established and are free-growing. This payment covers maintenance works that will often be required (such as vegetation management, replacement of failures).
The first step is to contact your local Teagasc Forestry staff via your local Teagasc office or via www.teagasc.ie/forestry for independent advice and information.
The option you choose should reflect your circumstances and the amount of time you can allocate to planning, organising and doing the work. It is important that your investment is managed to the highest standards to ensure you reap the rewards as the timber matures.
No matter which option you choose, all the paperwork at pre-planting, post-planting and at the second instalment stage must be prepared by a registered forester working on your behalf.
Registered foresters are professional foresters, either consultant foresters or attached to forestry companies.
These foresters/forestry companies are registered with the Forest Service and carry professional indemnity insurance.
A list of registered foresters is available from your local Teagasc Forestry Development Officer, the Teagasc Forestry website, or from the Forest Service, Department of Agriculture, Food and the Marine, Johnstown Castle, Co Wexford. Lo-Call 1890 200 223 or 053-9160200.
Ensure you have a written contract with your registered forester in place before work begins. All contracts should be referred to a solicitor. The Forest Service sets the standards and approves grant and premium payments. Once you have decided to plant, you can choose how to get the job done from the following options.
Option 1 is to organise the establishment work yourself, this is the most hands-on option, so you must invest time in gaining a good knowledge of forest establishment and management techniques.
All sub-contractors hired, such as machine operators for mounding and drainage must be fully tax compliant. When the work is completed, your Registered Forester submits an application to the Forest Service for payment to you of the first grant instalment and the first forest premium payment.
Proof of ownership and farming status are required at this stage. Your site must also pass a Forest Service inspection after four years for payment of the second instalment grant. You, the applicant, must be prepared to fund all costs until the grant has been paid by the Forest Service.
Option 2 is to hire a registered forester to organise some or all of the establishment work, including submitting your application to the Forest Service.
The registered forester will co-ordinate some or all of the work, using knowledge of subcontractors and machine operators, and can source trees and other materials.
Some of the work can be carried out by you, as agreed with your registered forester in the contract. You, the landowner, must be prepared to fund all costs until the grant has been paid by the Forest Service, unless there is an agreement to mandate the grant to the Registered Forester. The works and the costs involved should be specified in a contract.
Most registered foresters establish and maintain plantations under a four-year contract and usually request that the grants are mandated to them.
Prior to payment of the second instalment grant at year four, you, as the forest owner, must be satisfied that the forest has been maintained in accordance with best practice. Only if you are happy with your plantation should you sign the year four form.
No matter which option you choose, the Forest Service Inspector will assess a sample of sites at pre-approval stage, post-planting stage and at year four.
Do not assume that standards have been checked by a departmental inspector; it is important to keep in mind that you, the applicant, have ultimate responsibility to the Forest Service for your plantation.
Insurance against potential hazards such as fire and windthrow is strongly recommended to protect your investment.
