Demand in Scotland’s forestry market soars amid climate change battle
THE increased interest in planting trees to combat climate change has resulted in a huge jump in the UK’s forestry market’s demand and values, according to a new report.
Scotland accounted for 85 per cent of all UK forestry sales last year, says a new report.
Analysis by land agency Savills, published in its annual forestry market report, shows the total value of the UK forestry investment market increased by 23 per cent to £262.7 million in the 2021 forestry year covering 12 months to September 30.
The report also found that the average gross value for forestry sales was up 39% to average just over £15,000 per hectare during the year. However, the average value of productive conifer forestry increased by 61% to £23,720 per hectare.
Sales in the north of Scotland accounted for 32% of total UK market share at 5,692 hectares sold to an average value of £10,261 per productive hectare.
Central Scotland sales equated to 33% of all sales with 5,807 hectares sold to an average value of £23,476 per productive hectare, while southern Scotland accounted for 20% of the UK market with 3,556 hectares selling to an average value of £29,163 a hectare.
Sales in England and Wales accounted for 15% of the market with average values of £29,985 paid per productive hectare.
The report said strong overall growth in the market was driven by the high quality of some of the forestry assets sold during the year, and there was a notable widening in the range of prices paid for forests.
“The relationship between the productivity of a forest, or the ability to improve that productivity over time and the price paid, is very apparent, especially for what are considered ‘best in class’ assets,” said James Adamson, head of UK forestry investment at Savills.
“These tend to be large-scale, high-yield class forests in areas of competitive timber marketing. Growth in values has not been even across the UK, and the individual attributes of a property must be considered in each instance.”
But farmers fear the country is set to lose more valuable foodproducing land to so-called “green lairds”.
Land values in Scotland are booming because investors are putting cash into forestry and tree-planting to offset carbon emissions.
Recently more than 150 Scottish farmers and crofters joined a national webinar, staged by NFU Scotland, to discuss the fierce debate around carbon trading, carbon audits and carbon sequestration.
As the UK Government consults on developing the UK emissions trading scheme (UK ETS), NFUS is asking its members for their views.
A members-only survey is already under way.
The UK Government has recognised that there is significant interest and ongoing investment from the private sector in carbon trading.
NFUS climate change policy manager Kate Hopper said: “Our members are rightly concerned about the impact of carbon trading on land use change in Scotland. NFUS is concerned that unregulated trading could lead to a reduction of land which would be best used to produce sustainable food.
“Scottish farmers and crofters are also calling for accurate auditing of carbon emissions and sequestration at both a national and farm level to identify how farms and crofts can balance their own carbon emissions.”
The Scottish Government has a target of 18,000 hectares (44,500 acres) of new woodland each year by 2024/25 in an attempt to offset the effects of climate change. Land reform campaigners have warned of businesses buying up land in Scotland to offset their carbon emissions, rather than reducing what they emit.