GRANTS AND GOOD ADVICE

The Forestry Grant Scheme was introduced in April 2015 with uptake in the Highlands being particularly disappointing. Scottish Government have reviewed the scheme and increased the rates for native woodland planting in the Highland Region as well as increasing the rate for deer fencing. This has helped stimulate renewed interest from landowners,farmers and crofters in planting new woodland in the Highland area according to John McGlade, founder of the forestry management company McGlade Forestry.

“The revised rates are for a new targeted area in the Highlands which recognises the higher establishment costs in these areas. Together with an increase in the grant for deer fencing on higher ground this has helped stimulate an increase in uptake of the woodland creation scheme. As well as the benefits of shelter for deer, livestock and increased wildlife habitat the revised grant rates can now be cashflow positive in many cases and as a result has generated a good bit of interest,” he comments.

McGlade points out that the forestry industry has been trying for many years, going back decades, to get farmers and land owners to consider planting well designed forests on their poorer grazing land. However, in the past generally the grant rates have not be attractive enough and the long term investment cycle of forestry has made it less attractive than normal farming practices.

The latest grant scheme has been partially inspired by earlier successful ‘Targeted’ grant schemes, one in Grampian introduced in the late 90’s was a particular success where lower yielding farm land was targeted which in forestry terms would yield good commercial crops of timber. Attractive grant rates were offered to plant these lower yielding areas on farms. The average size of scheme then was 28ha and these woodlands will come into production quite soon. The scheme ran from 1997 to 2003. That scheme, McGlade points out, showed conclusively that if you offer the right incentives you can encourage a much greater take of woodland creation up from landowners, farmers and investors.

“There are real benefits to livestock and crops of planting well designed woodland which, with proper planning, can grow into productive small woodlands that can generate very significant income over time,” he notes.

Potentially there is also a clear win-win to be created by bringing together investors with farmers and landowners who are in possession of poorer grazing or hill land that could be put forward as a well designed proposal for a new forest. “The biggest hurdle for a potential investor interested in forestry as a stable, long term investment, is finding the land. It is always worth looking to see if a potential investor can do some sort of a deal/partnership with a landowner or farmer who may have the land, but who may lack the ability to meet the capital outlay required to plant up significant areas,” he says.

“Woodland planting on the farm traditionally was marginalised to the wettest corner or stone ridden slopes with little input thereafter. With the current rates of grant on offer there is a huge incentive for farmers, landowners and foresters to come together and look more positively at the possibilities of planting marginal hill land, lower yielding low ground as well as smaller holdings. The tree crop being established with a longer harvesting rotation offset with high yielding returns.

Forestry professionals can offer key advice on grant incentives and financial returns as well as offering a complete service from planning through to establishment and eventual harvesting of the woodland,” he notes.

John McGlade, founder of the forestry management company McGlade Forestry.