Fianna Fáil’s agriculture spokesman Charlie McConalogue TD asked Minister for Agriculture Michael Creed whether greater demand for land suitable for afforestation was driving up the price of land in some areas, and the consequences for young farmers trying to access land.

“Forestry may be one of many factors which can influence movements in land prices,” Minister Creed replied. He cited other factors including regional variations in supply and demand and individual circumstances including the sale of land seen as marginal for agriculture and restructuring of farm holdings following retirement, death or inheritance.

Complexity

“The perceived link between afforestation grants, premium rates and movement in land prices overlooks the complexity that exists within the land market,” the minister said, arguing that non-farmer investors do not account for a significant portion of new forestry planting – “although it is increasing”.

“For farmers, forestry offers a viable alternative enterprise which allows them to diversify their income stream away from volatile agricultural markets and towards the more stable timber market and for this reason the supports offered by the State are very much welcomed,” Minister Creed added.

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Forestry 'one of many factors' driving land prices – Creed

The role of forestry development in rising land prices came up in the Dáil last week.