TDs and senators heard from the IFA and Coillte about contracts farmers signed to plant forestry with the state-owned company during a marathon session that lasted nearly four hours.
Members of the IFA forestry committee highlighted a number of key junctures in the long-term farm partnerships where Coillte benefited from a "dominant" position, leaving farmers with insufficient information or leverage to make the best of their forestry.
The IFA's forestry representative for Wexford, Nicholas Sweetman, gave the example of the decision when to clearfell a crop, which has significant implications for the value of the crop and the date at which payments end for the farmer, but rests entirely with Coillte.
Obligation to replant
He added that many farmers weren't aware of their legal obligation to replant the land at their own expense after the end of the partnership with Coillte, especially those who signed earlier contracts in the 1990s. "In more modern contracts, the obligation to replant is clear," he said, noting that Coillte had "upped its game" after the initial lack of transparency became clear.
IFA forestry chair Pat Collins said that many partnerships involved vulnerable farmers, some of them elderly, who did not understand the value of the crop they were sharing with Coillte. He noted that contracts did not specify when in market cycles their timber would be harvested. "When the price of timber was low, Coillte could go in and cut their timber. There is nothing stopping it," he said.
Coillte's managing director for forestry, Gerard Murphy, replied that under the contracts, "we're obliged to maximise the value" of the timber. However, Senator Michelle Mulherin pointed out that "there is no way for the partner to verify that".
Coillte representatives promised that new commercial statements being drafted for farmers would answer these questions, including full details of the past and forecast timber sales extracted from their land.
They are enforcing unfair contracts
"Nobody is suggesting Coillte is cheating on the contracts they have – they are enforcing unfair contracts," Sweetman summarised. IFA and Coillte representatives disagreed on the advice farmers got before signing the contracts, with farmer representatives saying it was insufficient while the company insisted that all partners had received independent legal advice.
There were also conflicting accounts on the notice given to farmers before works took place on their land. Senator Mulherin said she had spoken to a farmer who saw forestry contractors enter her land without notice and "drive over fences". "The partner has to sign the felling license before we actually do it," Coillte's Murphy said, insisting that farmers always knew when trees would be cut.
Return to sender
One indication of the lack of communication between Coillte and farmers came when its strategy and business development director Bill Stanley said that 5% of the letters sent to the 630 farmers in partnership to inform them of a new helpline were "returned to sender". Politicians pointed out that this was inconsistent with the company's assurance that it had at least annual meetings with all partners.
All TDs and senators who spoke were critical of Coillte's handling of partnerships and supported dissatisfied farmers. Several said that more farmers were likely to raise issues as only a small number had completed the 20-year period during which they receive Government premiums and started receiving payments from Coillte under the partnerships.
The IFA and Coillte are due to continue talks started this month and aimed at publishing guidelines to solve the various issues raised by farmers. "Coillte has a duty of care as the dominant partner with the experience and knowledge of the sector to ensure that partners have a clear understanding of the agreement, particularly the timber revenue models and the distribution of the profits," said IFA president Joe Healy.
Read more
How much does a farmer make out of a Coillte farm partnership?
Listen: Disgruntled farmers call for mediation in Coillte contracts
'We haven't missed payments' – Coillte
TDs and senators heard from the IFA and Coillte about contracts farmers signed to plant forestry with the state-owned company during a marathon session that lasted nearly four hours.
Members of the IFA forestry committee highlighted a number of key junctures in the long-term farm partnerships where Coillte benefited from a "dominant" position, leaving farmers with insufficient information or leverage to make the best of their forestry.
The IFA's forestry representative for Wexford, Nicholas Sweetman, gave the example of the decision when to clearfell a crop, which has significant implications for the value of the crop and the date at which payments end for the farmer, but rests entirely with Coillte.
Obligation to replant
He added that many farmers weren't aware of their legal obligation to replant the land at their own expense after the end of the partnership with Coillte, especially those who signed earlier contracts in the 1990s. "In more modern contracts, the obligation to replant is clear," he said, noting that Coillte had "upped its game" after the initial lack of transparency became clear.
IFA forestry chair Pat Collins said that many partnerships involved vulnerable farmers, some of them elderly, who did not understand the value of the crop they were sharing with Coillte. He noted that contracts did not specify when in market cycles their timber would be harvested. "When the price of timber was low, Coillte could go in and cut their timber. There is nothing stopping it," he said.
Coillte's managing director for forestry, Gerard Murphy, replied that under the contracts, "we're obliged to maximise the value" of the timber. However, Senator Michelle Mulherin pointed out that "there is no way for the partner to verify that".
Coillte representatives promised that new commercial statements being drafted for farmers would answer these questions, including full details of the past and forecast timber sales extracted from their land.
They are enforcing unfair contracts
"Nobody is suggesting Coillte is cheating on the contracts they have – they are enforcing unfair contracts," Sweetman summarised. IFA and Coillte representatives disagreed on the advice farmers got before signing the contracts, with farmer representatives saying it was insufficient while the company insisted that all partners had received independent legal advice.
There were also conflicting accounts on the notice given to farmers before works took place on their land. Senator Mulherin said she had spoken to a farmer who saw forestry contractors enter her land without notice and "drive over fences". "The partner has to sign the felling license before we actually do it," Coillte's Murphy said, insisting that farmers always knew when trees would be cut.
Return to sender
One indication of the lack of communication between Coillte and farmers came when its strategy and business development director Bill Stanley said that 5% of the letters sent to the 630 farmers in partnership to inform them of a new helpline were "returned to sender". Politicians pointed out that this was inconsistent with the company's assurance that it had at least annual meetings with all partners.
All TDs and senators who spoke were critical of Coillte's handling of partnerships and supported dissatisfied farmers. Several said that more farmers were likely to raise issues as only a small number had completed the 20-year period during which they receive Government premiums and started receiving payments from Coillte under the partnerships.
The IFA and Coillte are due to continue talks started this month and aimed at publishing guidelines to solve the various issues raised by farmers. "Coillte has a duty of care as the dominant partner with the experience and knowledge of the sector to ensure that partners have a clear understanding of the agreement, particularly the timber revenue models and the distribution of the profits," said IFA president Joe Healy.
Read more
How much does a farmer make out of a Coillte farm partnership?
Listen: Disgruntled farmers call for mediation in Coillte contracts
'We haven't missed payments' – Coillte
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