The Irish Farmers' Association (IFA) has warned that even more farmers could find themselves priced out of the land market as a result of plans by foreign investment firms to acquire land for afforestation in Ireland.

It has emerged that Coillte plans on partnering with UK-based investment firm Gresham House to help the fund to buy 12,000ha of forestry and land suitable for new planting.

IFA farm forestry chair Jason Fleming said farmers are very concerned about the establishment of the Irish Strategic Forestry Fund by Coillte and Ireland Strategic Investment Fund (ISIF), which is believed to have pledged around €25m to the UK investor.

One of the other central issues the IFA has with investment funds getting involved with the new forestry programme is the demand implications of these players looking to snap up land.

Competition

“With already strong demand in the agricultural land market and limited supply, the new Irish Strategic Forestry Fund is likely to further increase the competition for land, which will result in more farmers being priced out of the market and unable to expand operations to future proof their businesses.”

This could exacerbate land availability challenges experienced by young farmers in particular, Fleming stated.

Yearly payments

Investment funds are to receive grant aid to fully cover the cost of establishing new forestry and annual payments of between €11,200/ha and €16,500/ha over a 15-year term under the State’s new forestry programme.

“The focus of the State planting programme, as well as Exchequer spending, should be on farmer planting,” the IFA forestry chair added.

“This has the greatest positive impact on the economy, as the majority of the money generated from forest premiums and timber sales is spent locally, fuelling economic growth and supporting jobs and businesses in towns across Ireland.

“The economic benefits when an investor plants or buys existing forests is significantly less, as the majority of the money leaves the local economy,” he said.

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