Growing opportunities in forestry

With the start of the planting season imminent, now is the ideal time to consider how forestry can fit into your farming enterprise.

Since the commencement of planting schemes in the late 1980s, many landowners have opted for forestry as an ideal complement to existing farm enterprises. In fact, over 21,000 unique forest owners, the majority farmers, have received grant aid to establish forests since 1980. This represents an investment of over €2.5 billion into rural Ireland over the period. 2018 will see continued major investment in forestry with a national allocation of €106m in line with the 2014-2020 Forestry Programme.

The current Forestry Programme offers a wide range of Grant and Premium Categories (GPCs) to suit a broad range of land types and personal circumstances. These range from diverse spruce plantations, broadleaf plantations to agroforestry and new native woodlands.

The latter two options are of particular interest to landowners in environmentally sensitive areas across the southwest (acid sensitive areas, Freshwater Pearl Mussel and some designated sites). They may allow, on suitable soil types and locations, forestry development options to be considered where other schemes are currently restricted with highest premium of €635/ ha per annum in the case of the Native Woodland Establishment Scheme. For more information consult your local Teagasc advisor and make an appointment for one of the free upcoming November Clinics.

Forests can provide attractive income in the short term through tax free premia guaranteed for the first 15 years, without loss of Basic Payment for qualifying applicants, and with income from timber sale progressively increasing thereafter. New forests also offer additional indirect onfarm benefits such as shelter for stock, land drying effect, mitigating of water runoff and nutrients leaching, to mention only a few. These benefits can considerably improve local farming conditions.

Recent financial analysis shows that on marginal farmland, forestry can successfully compete with and, in many cases, exceed returns from drystock enterprises. Many landowners in the southwest, with a keen eye for opportunities to diversify and optimise resources, have recognised the value of forestry and are now owners of developing forests.

The experience of tillage farmer Michael Murphy is a case in point. The Midleton farmer planted eight hectares of broadleaf trees, under the Native Woodland Establishment Scheme (NWS Est.) over the winter of 2015- 2016. In addition to his forestry crop, Michael grows 10 ha of barley, incorporating some wild bird cover, and leases out the remainder of his agricultural holding.

Michael’s view was that the eight ha were, at best, only suitable for summer grazing because of impeded drainage. “This particular site has always been very wet and I felt the forestry would help to dry it out and also have a drying effect on the surrounding fields,” he said.

Michael opted for the Native Woodland Establishment Scheme (NWS Est.). As well as earning a tax free premium of €635 per hectare for the next 15 years, Michael feels that he will be leaving a living, vibrant legacy to future generations of his family.

Michael decided to take on much of the work himself but, as required by the scheme, he used the expertise and guidance of a registered forester, Mark Donnelly of Carrigrohane, to draw up the planting application. Taking into account the wet ground conditions of part of the proposed plantation, Michael and Mark decided to plant a combination of 30 per cent alder, 30 per cent oak, 30 per cent birch and the remaining 10 per cent of biodiversity-rich species such as holly, Scots pine, Hazel, etc.

In addition, paths and open areas were planned and integrated through the plantation. These will provide for further access to this recreational haven for the enjoyment of Michael and his family.

The planting application was submitted and received grant approval from the Forest Service. Michael sourced the trees himself, organised ground cultivation and then preceded to plant the eight ha over the winter of 2015-2016. Maintenance work in 2017 has included the control of vegetation around some of the slower growing broadleaf trees and a small number were also replaced in routine management.

Michael is very happy with his native woodland plantation as well as his active involvement in its on-going management. “One of the nice things about forestry is that you don’t have to worry about the vagaries of the market, at least in the first 15 to 20 years, and you are independent of big agribusiness. You are not trying to force your land to do something nature had never intended it to do”. Michael now looks forward to seeing his forest develop and thrive.