Specific Details
Working Towards Ireland's Shared Vision for Forestry and a New forestry Strategy
Intended results
IFA wish to highlight how farmers are crucial to the success of future forest strategy
1. Farmers must to be recognised as crucial decision makers with regards to the future forest strategy. Agricultural land accounts for approximately 65% of the total land area of Ireland and farmers will ultimately determine the production systems implemented on their land.
Although increasing the forest area on farms has been identified as a climate mitigation and adaptation strategy, current policy is failing to entice farmers and landowners to increase tree cover on their farms. The share of afforested area planted by farmers in 2021 was 18% (360 hectares) which was a sharp decline from their 2013 share of 97% (6,064 hectares).
2. To emphasise the need for the reform of the licencing system
There have been improvements in the issuing of licences. Since September 2021, the total number of forest licences in the system longer than 120 days was nearly 5,000 licences, figure has now reduced to 1,700 licences. However, there are still 885 licences that have been in the system for over 13 months.
Although we are slowly seeing the backlog of licences reduce, it does not negate the fact that the current licence system is not fit for purpose and needs to be reformed. Excessive bureaucracy, ineffective administration as well as spiralling costs have led to forestry no longer being viable at farm scale.
If we are to attract farmers to plant at the scale required with need the following changes
i. The system must guarantee that a farmer has to wait no longer than 4 months for a decision on forestry licence as set out in the Forestry Act 2014 Section 18(1).
ii. The system must be reformed and simplified to create a regulatory framework that supports planting and management at farm level.
iii. Forest road construction and thinning operations should be removed from the licence system and approved under a forest management plan.
3. To highlight the Payment for Ecosystem Services is essential
Grants and incentives underpin most farmers decision to plant. Significant increases have been announced under the new Forestry Programme 2023 – 2027 with premium rates increasing between 46% to 66% depending on the forest type being established and the term of premium payments for farmer increases to 20 years.
The new forestry type Mixed High Forest with mainly spruce and 20% broadleaves, the most popular forest type among farmers previously, sees the premiums increase by 44% from €510 to €746 per hectare. This means that farmers over the 20-year term of the premium payment can earn €14,920 per hectare income tax free (it is liable for PRSI and USC).
However, it is important to note that the area of broadleaves to be planted has increased from 15% to 20% under the new rate, this is in addition to the area that a farmer is required to be set aside for biodiversity enhancement (approx. 15%). This reduces the productive area, and although farmers will be paid on this area for 20 years under the premium, the financial return generated from timber sales is reduced.
If we are to reduce the risk associated with planting and ensure farmers investment in forestry are protected into the future, in an ever change regulatory landscape, it is vital that the goods and benefits – the ‘ecosystem services' – provided forests are properly valued and a system is developed that pays farmers for ecosystem services provided by their forests beyond the 20-year premium, to offset the loss of timber income.
4. To highlight how the level of Department of Agriculture, Food and the Marine's support offered to Forest owners for Ash Dieback disease must be improved
The handling by the Department of the ash dieback disease outbreak, particularly the level of support offered to forest owners has been totally insufficient. Farmers with ash dieback feel abandoned and ignored by the Government. The treatment of these farmers is key reason for the rapid decline in planting in the last decade.
Farmers that have experienced diseases with other agricultural commodities have seen programmes introduced by the Department, which include valuation and compensation measures. Farmers with ash dieback have been treated very differently, with schemes that do not reflect or compensate for the hardship of affected farmers.
If farmers are to plant, especially more diverse species, they must have confidence that they will be properly supported should their forest be devastated by another disease. Particularly as it is anticipated changes in climatic conditions may impact the prevalence and severity of these risks. It is vital that the new strategy includes a tree health resilience and compensation plan to support the vision.
A new Reconstitution Scheme must be introduced to ensure that farmers affected by the disease are appropriately supported to manage infected plantations
- All infected plantations (both grant aided and non-grant aided) must be eligible for a 100% reconstitution grant to support forest owners to clearfell and replant with tree species that satisfy their management objectives.
- Forest premiums must be paid on replanted land for 15 years according to GPC rates established.
- The option not to replant, without penalties, must also be available under certain circumstances.
5. IFA recommends the relaxation of the replanting obligation
In repeated reviews the replanting obligation has been highlighted as a significant barrier to planting. Relaxing the replanting obligation would reassure farmers and may positively impact forested land values. In reality most afforested land provides only marginal returns in other forms of agriculture and the high costs associated with returning to agricultural use makes this land use reversion unlikely.
However, the provision of an opt-out option would remove a major barrier to planting. It could be controlled and managed to limit deforestation by only removing obligation on environmental and/or economic grounds, where a better economic return from alternative enterprise can be demonstrated. 6. National certification scheme
6. National certification scheme
The lack of certification in the private sector is a potential future barrier to mobilisation and access to markets that require timber to be certified. Currently in the private sector only 4% of the private forest estate is certified. Financial costs associated with certification particularly for farm forests are the main barrier to certification.
The lack of certification in the private sector needs to be addressed if the investment in forestry is to be realised and in order to take advantage of new markets. A National Group Scheme is the only sustainable solution that adequately addresses the certification barriers.
The strategy must give a clear commitment to support and increase the level of the certification in the private sector to a sustainable level, with short, medium and long-term targets.
7. Establishment of Forestry Development Agency (FDA)
The existing structures are failing forest owners and the wider industry. A new and innovative approach is needed to restore confidence and incentivise farmers to plant while addressing issues such as the barriers to afforestation, harvesting and forest road construction to access forests.
There is a need to establish an independent structure to drive the industry, such as exists in other natural resource sectors. It would be charged with optimising the performance of the Irish forest industry by providing technical expertise, business support, funding, training and promoting responsible environmental practice.
Name of person primarily responsible for lobbying on this activity
Tim Cullinan IFA President, Jason Fleming IFA Farm forestry Chair, Geraldine O'Sullivan IFA Senior Policy Executive, Edel McEvoy IFA Policy Executive
Carol Nolan
TD (Dáil Éireann, the Oireachtas)
Martin Heydon
Minister of State (Department of Agriculture, Food and the Marine)