Minister clarifies payment schemes available for broadleaf plantations
Minister for Agriculture, Food and the Marine Martin Heydon has clarified the payment schemes available for broadleaf forestry plantations.
Minister Heydon was made the clarifications in reply to a query by Fianna Fáil TD Ryan O'Meara, who asked the minister if he will consider a payment plan/scheme for broadleaf plantations beyond the 20-year mark, "to make broadleaf plantations more financially viable for farmers in forestry".
Deputy O’Meara said he asked the question “given there is currently only a 20-year payment for broadleaf planting with no commercial payout at the end of this time period and farmers are left without any income from the plantation after that period”.
Minister Heydon replied that premium rates offered through the Afforestation Scheme 2023-2027 “represent the calculation of income foregone from other farm enterprises and an additional amount for forest management and forest-environmental and climate services provided by the forest owner”.
The minister then made a distinction between the payment period and the rotation period.
He said: “The relevant rotation period for the mix of tree species was taken into account so that the income foregone was considered for the rotation period rather than for the period of the premiums.
“This is why a farmer who plants a native forest will receive a premium of €1,103 per hectare for 20 years while a farmer who plants a mixed high forest with mainly spruce and 20% broadleaves will receive a premium of €746 per hectare for 20 years.
“Premium payments are income tax free and in addition where applicable, farmers retain Basic Income Support for Sustainability (BISS) payments.”
Schemes
Minister Heydon added that his department provides “a range of schemes to support the sustainable management of forests in Ireland that are available to forest owners after their premium payments are complete”.
He added that “income from thinning interventions is also income tax free”.
In outlining the other schemes available, Minister Heydon said: “To facilitate the management and haulage of timber, forest owners can receive €66 per linear metre for new roads constructed.
“The Woodland Improvement Scheme also provides financial support to existing broadleaf forest owners who wish to manage and maintain their forests to benefit the environment and the ecosystem services they provide.
“The scheme offers a payment of €1,200/ha and a forest owner may apply for two thinning interventions.”
Minister Heydon also mentioned the Native Woodland Conservation (NWC) Scheme, which is likewise offered through the Forestry Programme.
He said this “provides financial support to eligible forest owners for the appropriate restoration, conservation, and enhancement of existing native woodland for sustainable forest management”.
“Grants of €6,000/ha for restoration and enhancement works are available, along with a Payment for Ecosystems Services of €500/ha, paid over seven years.”
The minister went on to say that farmers and other landowners interested in planting native woodlands may also opt into the Woodland Environmental Fund (WEF) as part of their native forest afforestation application.
“This aims to facilitate the planting of more native woodlands by providing an access point for businesses to part fund the establishment of these forests.
“Businesses participating in the Woodland Environmental Fund may pay landowners an additional €1,000/ha for planting native woodland under ‘Forest Types’ FT1 (native forests) and FT2 (forests for water) of my department's afforestation scheme," Minister Heydon said.
