New grant rates for afforestation

By Donal Magner

The planting programme received a welcome boost recently when John Browne TD, Minister of State with responsibility for forestry, announced increased grants payable for afforestation. Grant rates for planting most species including all conifers, oak and beech were increased by 9% and by 5% for ash and sycamore (see table). Forestry companies, contractors and consultants along with staff at the Forest Service are now expecting an increase in planting applications. In addition to the grant rate increases, there are other incentives which should stimulate interest in planting such as:

• 20 years of tax free premiums - to be reduced to 15 years from 2007;

• the extra incentive that farmers can now plant up to 50% of their land, and draw down the annual forestry premium, without affecting their Single Payment;

• income from premiums and sale of timber are tax free;

• possible reduction in establishment grants from 2007 onwards; and

• wood for energy is likely to be an extra outlet for first thinnings and farmers with forests are ideally placed to benefit both as users and suppliers of wood fuel.

Many farmers planning to plant from November onwards will have carried out site preparation and will have selected their tree species by now. As more and more plantations are being established on better quality land, there are greater opportunities to plant more diverse species including native and naturalised broadleaves.

Revised afforestation grant rates (€/hectare) 2005

The afforestation grant (column 3) is cost-based up to maximum grant levels shown and covers the cost of establishment. It is payable in two moieties: 75% (column 1) following planting and 25% four years later (column 2).

Species selection and the market place

While the Forest Service grant aids 31 forest species, growers would be well advised to limit their palette of species. Experience of the market place tells us that quality spruce will be relatively easy to sell while pruned Douglas fir, larch and Scots pine will also find good markets. As hardwoods comprise less than 1% the total volume of timber sold in Ireland, it is difficult to assess this market. However, oak, beech and ash continue to sell well if quality is good and Spanish chestnut is an underrated species. Sycamore and cherry produce excellent wood while common alder is growing in popularity.

Conifers

Species selection is influenced by site suitability and potential markets. Sitka spruce has a proven record as a versatile species. It grows well on a wide variety of sites and finds ready markets in construction, packaging and is an excellent fibre producer for panel board manufacture. Norway spruce is more site demanding than Sitka but produces better quality timber. Douglas fir produces excellent timber and will perform well - if deer damage is controlled - on sheltered sites with moderately fertile and well drained soils. Other species worth consideration are larch - preferably hybrid if it can be sourced - and Scots pine although slow growing has a number of ecological and aesthetic benefits, and produces excellent timber if pruned. While grand fir, Monterey pine and the cypresses grow well here there is likely to be little demand for these species. The remaining conifer species have limited potential except possibly lodgepole pine in poor sites.

Broadleaves

The Forest Service grant aids 12 broadleaves. Results in some broadleaf plantations have been mixed and growers will need to take great care in matching species to site. Most broadleaves require sheltered sites with free draining good to moderately fertile soils. This is especially true in the case of the main species oak, ash and beech. Alder has increased in popularity in recent years and adapts well to a variety of sites but still needs more research. Birch is an excellent pioneer species but Irish provenances have few of the good commercial wood properties that are found in Scandinavian birch forests.

Cherry produces beautiful wood but is prone to frost damage and a number of diseases including bacterial canker so at best it should be planted in small groups. Sycamore grows vigorously on a variety of sites but should be avoided as it suffers from grey squirrel damage.

Farmers who are still undecided about planting should contact the Forest Service lo-call number in Wexford 1890 200223 for further information on grants, premiums, stacking entitlements and procedures when applying for grant aid.

IFA National Farm Forestry Conference 2005

The annual IFA farm forestry conference will be held on Friday 11 November in the Tullamore Court Hotel, Tuallamore, Co Offaly. Entitled Developing Farm Forestry, it will cover a range of topics which are relevant to farm forestry today including:

• Farm forestry, wood energy and the future.

• The economics of growing broadleaves.

• Opportunities in agroforestry.

• Forestry and REPS.

John Dillon, IFA president, will open the conference while John Browne TD, Minister of State at the Department of Agriculture and Food, will give the keynote address.