Forestry: A Family Thing
IN 2006 Chris Mitchell had a decision to make as to whether he would farm cattle or trees on his 52 acres at Muckelty Hill in South Sligo. Chris likes to think outside the box. He considered that if he went to farm the land with cattle he might have to invest lots more money, up to € 20,000 in reclamation and bringing it up to standard, then buy stock and above all the ongoing costs of his own time and commitment.
At this size of farm Chris knew he would also have to hold down a job if he was to meet his family’s living costs and so he doubted whether he really put what it takes into the farm and meet all his other demands.
So he considered forestry. Chris says that at that time 2005/ 06 many people still saw afforestation as giving up on land. However, he saw it differently. For him faming is a business and business is about time and money and making the best use of what you have. He spoke to a forester from Western Forestry Co- op and what he liked about the co- op forester was that he never felt under any pressure, he just got the information and answers to his questions and it was all up to him.
The annual premia then lasted for 20 years ( they are 15 years now but at a higher rate to include the 5yrs upfront in the 15yrs); Western forestry would do all the grant paperwork, planting, fencing, fertiliser etc and also will be there to manage the forest road, thinnings and harvesting. In one way this was an ideal partnership: Chris has the land, Western Forestry has the expertise and a long time ( 31yrs) in the business.
He has never regretted his decision. It’s now ten years later. His farm of Sitka Spruce, Ash and Beech is maturing. For most of that time he worked for Sligo Dairies and when he came home he was able to spend time with his young family and at the same time watch his investment grow.
In about three years from now he will have his first sales of thinning, followed by more sales as the crop matures and in 20 years from now he will have the full harvest of mature trees. This looks like a long way away but Chris thinks differently. By the time it matures his children will be the same age as he was when he planted it. After all this was an investment for the family not just for himself.
Victor Barber, Forester with Western Forestry Co- op says that today a farmer with 40 acres suitable for forestry could expect an annual premium of around € 8,200, income tax free for 15 years and a crop of that size can reach a value of up to € 10k per acre when it matures in 30 years. “We only see these returns happen in cities with investment in apartments and isn’t it great to see local farmers being able to create that level of wealth and still keep their asset – the land – so that it can be replanted for the benefit of future generation”.
If you would like more information on how forestry can compliment your farm or lifestyle please contact Victor on 086- 8289926 or Declan on 087- 0518680, please see our advert on this page.