Why you should consider agroforestry

Financial incentives are very tempting – and land can be eligible for agroforestry grants and premiums, BISS, CRISS and Organic Payments

The new Forestry Programme 20232027 has thrown up some exciting options for farmers to create an aesthetically interesting and financially rewarding feature on their farms. The financial incentives of afforestation have been substantially improved. The forest premium for farmers has been extended to 20 years and the rate of payment has increased to €863/ha (€349/ac) for mixed conifers and up to €1,142/ha (€462/ac) for certain forest types.

These changes should encourage more planting. Given the ever-increasing value of timber, forestry is among the best investments any farmer could consider.

However, the obligation to re-plant with no supports after clear-fell is a major disincentive. This issue badly needs to be addressed if planting targets — and indeed carbon emission targets — are to be met.

I know many farmers who are reluctant to go down the afforestation route because they view the obligation to replant as something of a poisoned chalice for those that will come after them.

Despite the financial benefit from clear-felling — generally €25,000-28,000/ha — the cost of re-planting at €3,500/ha, coupled with no financial return from the replanted forest for many years into the future, does not make for a very attractive inheritance.

However, the income tax-free status of timber sales, and the inheritance tax benefits of forestry are significant factors to be borne in mind.

Agroforestry

A booklet titled Agroforestry with Organics that was recently published by the Agricultural Consultants Association (ACA) recently dropped through my virtual letterbox. I would never have associated organics with forestry.

Agroforestry is a combination of trees and grassland or crops on the same piece of land, which enables more sustainable farming, improved animal welfare, increased biodiversity, mitigation of the effects of climate change, water protection, production of renewable energy, localised shelter and production of quality timber.

The booklet emphasises the strong compatibility between the Organic Farming Scheme (OFS) and forestry. OFS parcels can be converted to forestry during the OFS contract without penalty.

The agroforestry scheme is one of the few schemes to seamlessly integrate with the OFS.

The use of trees in an organic system has been seen to be extremely beneficial on many farms throughout Ireland. A more diverse range of habitats improves biodiversity in local and larger ecosystems.

Land declared as agroforestry can be eligible for agroforestry grants and premiums, BISS, CRISS and Organic Payments at the dry stock rate on the same land parcel.

The agroforestry option is now also of real interest to owners of ash dieback-infected plantations — you can convert from dead and dying ash to agroforestry. The area could then be allowable for nitrogen and phosphorus and grassland stocking rate calculations for farmers not in derogation.

The recent announcement of €5,000/ha available to owners of infected plantations who clear and replant the area under a climate action performance payment is a significant step in the right direction for forestry.

Combining this with the agroforestry option on the replanting should be of real interest to many owners.

Options

An agroforestry plot will comprise rows of trees in a grass or tillage field. There are different options within the scheme such as the silvo-pastoral option for drystock farmers and the silvo-arable option for tillage farmers.

There is also a forest gardening option, where fruit and nut trees can occupy up to 40pc of the species planted. This may be of interest to free-range organic poultry producers.

Agroforestry payments

There is an initial establishment grant of €8,555/ha for the silvo-pastoral system or €6,000/ha for the silvo-arable and forest gardening options.

There is an annual premium payable for 10 years that amounts to €975 for the silvo-pastoral option and €825 for the other options. These payments are income tax free.

Table 1 sets out an example of a typical farm attracting BISS, CRISS and Eco-scheme payment of €250/ha along with the Agroforestry and Organics Farming Scheme payment.

Organics

Don’t forget, farmers can get very attractive payments under the Organic Farming Scheme. In addition to the payment rates as set out in Table 2, there is an administration payment in year one of €2,000 and an annual payment of €1,400 thereafter.

For example, a drystock farmer owning 50ha will receive a total annual payment when fully converted of €14,400.

Further information

Contact the Agricultural Consultants Association head office at 051 645705 or at www.aca.ie

‘I know many farmers who are reluctant to go down the afforestation route because they view the obligation to replant as something of a poisoned chalice for those that will come after them’

Dear Mary Frances, two of our fields have boundaries with a busy main road. The road level is higher than our fields. Over the last few years, due to heavy lorry traffic, the stone walls on the boundaries with the road have collapsed back into our field.

About 15 years ago, the county council repaired and strengthened a full section of the wall. However, since we alerted them to the recent wall issues, they have not taken any action and will not take any responsibility.

The field is completely fenced in electric wire so the damage is being caused solely by traffic on the road and not by livestock.

We are very worried that the road might fully collapse onto our field as well as being concerned about ongoing damage to stone wall boundaries.

Do we have any recourse for repair with the county council?

Dear reader, it would appear that the wall is a party wall. Although it stands entirely on your property, it separates your property from the public road, which is owned by the county council. If this is indeed a party wall, both you and the County Council share responsibility for its upkeep and maintenance. The fact that the council carried out work on a full section of the wall 15 years ago strengthens the case that it is a party wall — it serves as an acknowledgment by the County Council that they have at least some responsibility for the wall.

However, you also have responsibility for the wall and you can not be complacent.

The wall is on your property and as the person who has the authority to admit or exclude persons from the property, under the Occupiers Liability Act 1995, you have a duty of care to visitors, recreational users and even trespassers.

You are aware that the wall is in dangerous condition and you cannot be reckless about the safety of people who may go on to your property, even if they are trespassing.

If the wall collapses and injures someone, you could find yourself dealing with a litigation case and all the headaches that go with that.

I presume that you have insurance on your lands. I would contact the insurance company and putting them on notice that there is a dangerous wall on the property and that you are making efforts to have repairs carried out on it.

The injured party may also sue the county council and see if liability/damages etc, can be shared but that would be of little consolation to you.

I think you will have to ramp things up with the County Council. Have you correspondence in writing with them, pointing out that damage has been caused to the boundary wall by traffic on the public road?

Have they written back to you advising you that the wall is not their responsibility and that they will not be carrying out repairs?

If not, I would initially send them a letter by registered post pointing out to them that they repaired and strengthened the wall 15 years ago, that the wall is now in dangerous condition again and that you expect them to repair it.

I would also give them a timeline — such as four weeks — to set out a programme of works and give you a timescale of when the works will be completed.

I would explain that if no response is received or if they decline to accept responsibility, you will be taking the matter further. If no satisfactory response is received, I would then consult a solicitor and put things on a legal footing.

Your solicitor should write to the council and threaten legal action if an appropriate response is not forthcoming. Depending on the response, you may be advised to issue legal proceedings against the council.

In the meantime, I would engage an expert to look at the wall and give an indication of the costings involved in making it safe. I would also erect signs at the entrance to the field warning people not to trespass and indicating that there is a dangerous structure there.

I would also take what remedial action and do everything possible to make the wall safe in the short term until more permanent works are carried out.

Remember that even if the council have some responsibility for repairing the wall, it does not negate your own responsibility to ensure that your property is safe for anyone including trespassers that might go on to it. You need to take immediate action to address this issue.

Mary Frances Fahy is a solicitor and tax consultant and the principal of Fahy Neilan Solicitors, Ballaghaderreen, Co Roscommon.

If you have a legal query for Mary Frances please email it to farming@independent.ie or post it to Farming Independent, Independent House, Talbot St, Dublin 1. All queries will be treated with the utmost discretion.

‘You cannot be reckless about the safety of people who may go on to your property, even if they are trespassing’