Minister for Agriculture, Food and the Marine Martin Haydon has outlined the payment schemes available for broadleaf forest plantations.
Minister Haydon obtained the clarification in response to a query from Fianna Fáil TD Ryan O’Meara, who asked the Minister whether he would consider a broadleaf plantation payment plan/scheme after 20 years, “to make broadleaf plantations more financially viable for forest farmers”.
Rep. O’Meara said he asked this question “because there is currently only a 20-year payment for broadleaf farming with no commercial payments at the end of that time period, and farmers are left without any farm income after that period.”
Minister Haydon responded that the premium rates offered through the 2023-2027 afforestation scheme “account for lost income from other agricultural enterprises and an additional amount for forest management and forest environmental and climate services provided by the forest owner”.
The Minister then distinguished between the repayment period and the rotation period.
“The relevant rotation period for the tree species mix was taken into account so that the lost income was taken into account for the rotation period and not the premium period,” he said.
“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 highland forest with mainly spruce and 20% broadleaf will receive a premium of €746 per hectare for 20 years.
“Premium payments are exempt from income tax, and in addition, where applicable, farmers retain basic income support for sustainability (only) Payments.”
Charts
Minister Haydon added that his department provides “a range of schemes to support sustainable forest management in Ireland which are available to forest owners once their installments have been paid”.
“Income generated from mitigation interventions is also exempt from income tax,” he added.
Outlining other schemes available, Minister Haydon said: “To facilitate the management and transport of timber, forest owners can receive €66 per linear meter for new road construction.
“The Forest Improvement Scheme also provides financial support to existing broadleaf forest owners who wish to manage and conserve their forests to benefit the environment and the ecosystem services they provide.
“The scheme offers a payment of €1,200 per hectare, and the forest owner can apply for two mitigation interventions.”
Minister Haydon also mentioned the Native Forest Conservation (NWC) Scheme, which is also delivered through the Forestry Programme.
This “provides financial support to eligible forest owners to restore, conserve and enhance existing native forests for sustainable forest management,” he said.
“Grants of €6,000/ha are available for restoration and improvement works, as well as a payment for ecosystem services of €500/ha, payable over seven years.”
The Minister went on to say that farmers and other landowners interested in planting native forests can also subscribe to the Forest Environment Fund (WEF) as part of their application for afforestation of native forests.
“This aims to facilitate the planting of more native forests by providing an access point for companies to partially finance the establishment of these forests.
“Companies participating in the Forest Environment Fund may pay landowners an additional €1,000/ha to plant native forests under ‘forest types’ FT1 (native forests) and FT2 (forests for water) in my Department’s afforestation scheme,” Minister Haydon said.
