Doing the hard sums on whether or not to plant forestry
offers advice for landowners trying to assess the relative benefits of planting forestry
Forestry is one of the keys in transition to a low-carbon and climate-friendly economy.
But deciding to plant or not to plant will always be a tough decision for farmers and land owners to make, due to the long-term nature of forestry.
Apart from the pros and cons of forestry as a land use, there are a number of other considerations that are specific to the farmers own circumstances, including:
* The age profile of the
farmer/landowner.
* Family circumstances.
* Succession prospects.
* Personal capacity to manage and maintain a forestry plantation for 30/35 years.
The age profile of the farmer becomes crucial if revenue from the forestry crop is intended as a retirement lump-sum from harvesting the crop at clear-felling stage.
This means that a farmer intending to retire at 70 should ideally have planted the crop before 40 years of age. However the principle of using forestry as means of providing for retirement has a lot of merit. Unlike a private pension, forestry allows the farmer to have direct control over the management, growth and end value of the crop and the sale of saw-log when harvested. In addition, the forestry owner will receive planting grants to cover the cost of planting and tax free premiums for 15 years, plus basic payments on the planted land.
Family circumstances and succession should always be considered, as planting forestry is an extremely long-term commitment.
In most situations, the second rotation crop is unlikely to be managed by the original owner due to the long term nature of forestry. The farmer would therefore need to give sufficient thought to succession after his/her retirement takes place. Succession and the transfer of ownership is greatly complicated by the legal obligation to re-plant the land after the original crop is harvested. There are currently no planting grants or premiums available for second rotation forestry planting, which greatly diminishes the value of the asset for ownership transfer to a family member or direct descendent.
Without planting grants or forestry premiums, taking ownership of clear-felled land is a bit like inheriting a poison chalice in relation to the cost of re-planting and ongoing management expenditure.
As the replanting obligation transfers with the land, the new owner is then legally obliged to re-plant the inheritited land.
However, it’s possible that the Department of Agriculture may decide in the future to pay planting grants and premiums for second rotation forestry crops as means of ensuring proper management and maintaining an ongoing supply of high yield-class saw log to the timber processing industry.
Before opting to plant forestry a farmer should be mindful of their personal knowledge of growing forestry and their capacity to manage and maintain a forestry plantation for 30/35 years.
Gone are the days when growing forestry meant planting a crop of trees, closing the gate and hoping to return when the crop is fit for harvesting. Unfortunately this mindset lead to poor plantations in the past at substantial cost to their owners.
Nowadays growing forestry successfully requires serious attention to detail, especially in relation to ground preparation, tree species selection, fertiliser application, plant replacement, vegetation control and a programme for thinning at the appropriate stage. This will involve getting the best possible advice and availing of the services of a qualified forestry expert on an ongoing basis.
On the positive side, of course, growing forestry is not rocket science and is much more doable by becoming involved with a forestry growers group and participating in a knowledge transfer scheme encompassing all aspects of forestry growing and timber production.
There are currently 22 active forestry groups in Ireland who are well positioned to offer all those considering forestry the following services:
* Share knowledge
with group members.
* Source and compile data on market prices in relation to saw-log and pulp wood.
* Assist in the organisation of group thinning and harvesting of small fragmented forestry crops.
* Negotiate group sales of saw-log and pulp-wood with the processing sector.
* Advise on best standard practices in relation to thinning and harvesting.
Teagasc Forestry Section has the expertise to advise individual growers on all the important considerations when planning to grow forestry.
It is, therefore, possible and cheaper for a farmer in conjunction with a Teagasc forestry adviser to organise and carry out the planting of his land without having to engage an outside contractor.
However, there needs to be a very strong commitment and attention to detail in getting the job done to the highest possible standard in order to maximise returns from the eventual forestry crop.
