The Forestry Monthly Report (FMR), issued by the Forest Service provides information on all the key operations in forestry, including applications for afforestation and roading grants and felling licences.

The most recent report up until the end of June is a good indicator of forestry activity, which remains high. There are dips in performance especially in relation to issuing approvals but the FMR is not designed to provide commentary. However, an examination of the June report is worthwhile as it provides month-by-month and cumulative data.

AFFORESTATION

Interest in planting continues to increase. There was a major increase in pre-planting approval applications or Form 1s submitted during the first six months of 2013, compared with 2012. The Forest Service received 1,199 applications for 10,703ha of planting compared with 788 in 2012 for 6,732ha. The average area per planting application increased from 8ha to 9ha.

Based on current data, Form 1 applications could reach 20,000ha this year. However, pre-planting approvals don’t translate into actual planting. Even if all applicants wish to plant, there are insufficient funds to meet a programme of this magnitude. In addition, many applications are turned down for a number of reasons.

More than half will either be rejected or applicants may change their minds and either opt out or defer the decision to plant. Those who do proceed and receive approval make it to the actual planting phase when they submit Form 2s for grant payment after planting.

In 2012, Form 2s were submitted for 4,309ha of afforestation from January to June, while this dropped to 4,149ha this year. Worse, the average size of these new plantations also decreased to 6ha.

The total area approved for payment dropped from 3,098ha for the first six months this year compared with 3,579ha for 2012.

Grants were provided for 2,481ha of afforestation for the first six months compared with 2,942ha during the same period in 2012. These are also well down on 2011 and 2010 when 3,021ha and 3,074ha were grant aided at the half year mark.

While the interest in planting is extremely high, the actual performance is down. It is too early to judge the likely output at yearend at this stage but the negative trend is worrying. Apart from 2010 when grants were paid out for 8,314ha of planting, annual afforestation grants have averaged only 6,600ha in 2011 and 2012. With grant aid well below 2011 and 2012 levels, annual afforestation in 2013 could prove to be the lowest since 1985.

HARVESTING ROADS

Activity in relation to road construction is a good indicator of timber mobility and the Forest Service Monthly Report provides mixed messages in this regard.

Applications (Form 1s) were received for 89.2km of roads in 2012 down from 92.5km during the same period in 2012. The recent report claims that 105km were approved for grant aid during the first six months compared with 96.8km in 2012. There is obviously a carryover from previous years in the case of approvals.

Like afforestation grants, the next phase is submission of Form 2s for grant payment where roadwork has been carried out. Applications for 40.8km of roads were submitted in 2012, more than double the 2012 total of 18.5km.

The Forest Service approved payment for 32.5km and actually paid out grants for 29.7km. Expenditure by the Forest Service on harvesting roads decreased during the January to June period from €1.2m in 2012 to €1m this year. However, due to a reduction in grant aid, the length of roads constructed increased to 29.7km compared with 27.5km the previous year.

It is also likely that roads completed will serve a greater harvested area because applicants who previously received grant aid based on a road density of 20m/ha can now expect approval for 10m/ha or less. This will result in longer haulage distances for harvesting forwarders, but it does ensure that a larger area is being accessed with less forest roads and lower unit cost per linear metre.

In summary, grant aid was paid for 29.7ha of roads and 105km of road construction applications have been approved. So, there is a major backlog building up in relation to forest road construction in: a) carrying out the road building programme after Forest Service approval; and b) payment of grant aid by the Forest Service after harvesting work has been carried out. The evidence would suggest that while payment is due on 11.1km of roads completed, there are 64.8km of roads approved but yet to be built.

There is an inevitable timelag between approvals and actual work carried out due to a number of factors, such as the availability of contractors but it seems like an excessive backlog given the solid prices paid for timber at the moment.

FELLING

Applications for felling licences are also a good indicator of future short-term timber mobility. Applications for the first six months have increased steadily from 7,313ha in 2010 to 9,239ha this year (Table 1).

However, approvals are well down this year, compared with previous years. This is having a negative effect on timber mobility.

The most obvious way in dealing with the backlog of approvals is to dispense with applications for felling licences for thinning. There is no logic in having to apply for a felling licence for thinning.

Like other operations, thinning should feature in the forest management plan. It should to be planned, carried out and recorded as part of the forest cycle like vegetation control, roading, brashing and pruning.

Thinning is an essential operation in the growing cycle and should not require a felling licence, especially from a regulatory body that encourages forest owners to thin in the first place.

Forest Service inspectors should instead concentrate their resources on approving felling licences for clearfelling.

Only 30% of applications for felling licences received in the first six months of 2012 and 2013 were approved.

The Forestry Monthly Report is an excellent indicator of forestry activity and performance in Ireland. It requires commentary and explanation on aspects of the report, such as the fall-off in afforestation between initial applications and final planting.

The IFA carried out a survey earlier this year on why farmers opt out at this key stage. This report cited reasons such as uncertainty in relation to long-term grant and premium commitments and the virtual elimination of afforestation on unenclosed land.

However, the interest levels in afforestation, along with increased applications for roading grants and felling licences, demonstrate that the private plantation owners — mainly farmers — are showing a positive interest at all stages of the forestry chain.

The report would be enhanced if it included commentary along with a more reader-friendly format rather than a series of spreadsheets. A compilation of the data would be worthwhile especially at year-end in an overall assessment or annual account, as has been proposed in the recent Forest Service draft review of forestry.