GOVERNMENT schemes to help combat climate change could deliver a big payday to Scottish farmers looking to plant commercial woodlands on poor quality grazing land.

Afforestation targets set out in the latest Land Use Strategy – with 10,000ha of new forestry planted annually – are a key part of meeting Scotland’s environmental objectives.

“But these are not mere political aspirations, they are backed by hard cash in the form of planting grants administered by the Forestry Commission and charged by Ministers to deliver the targets. The carbon sequestration provided by new trees forms a key part of the government’s action plan,” said leading forestry expert Simon Hart.

Mr Hart, general manager of Bellshill-based EGGER Forest Management, believes the support for commercial forestry announced recently by the NFUS and the National Sheep Association is causing farmers and landowners to think again about the benefits of integrating woodlands with sheep flocks.

“Forestry is an industry that is really growing in stature in rural Scotland and farmers are realising that combining forestry and agriculture can make commercial sense. NFUS and the NAS recently came out in favour of commercial forestry at an event at Lymiecleuch near Teviothead in March, and reported in the The Scottish Farmer.

“Not only can forest economics stack up in isolation, but when prudently located on a hill farm, it can produce significant farming benefits as well. These include shelter, improved access and rationalising of boundaries.

“The Scottish Government is strongly committed to delivering its afforestation targets set out in the latest Land Use Strategy, with the SNP endorsing the annual target of 10,000ha of new forestry in its recent manifesto.

“Needless to say, the grant system can be a little complicated and no two sites are the same. However, there is a range of woodland creation options from low-density woodlands of native species with biodiversity objectives, to commercial spruce that will meet farmers’ more economic objectives.

“Grant rates are high and this means for many schemes, the financial package will cover all of the costs. This is a significant step forward, as farmers won’t have the negative cashflow often associated with previous tree planting enterprises. And the news gets better, as the Basic Payment Scheme is retained after the trees get planted,” said Mr Hart.

There are yet further incentives in central Scotland via the Central Scotland Green Network top-up grants. These add £750 or £2,500/ha for up to 40ha – that could mean up to £100,000 of additional tax-free income in the first year of a new scheme.

The definition of central Scotland is generous as it includes Ayrshire, parts of Stirlingshire and Fife plus Edinburgh and the Lothians. This presents an excellent opportunity for those located in this area, with relatively low-grade farmland that is often ideal for commercial forestry.

“In recent years, the economics of forestry have improved dramatically – with timber prices rising on average by some 10% per annum in the last decade,” added Mr Hart.

“Demand for wood is high and rising, with the UK being only about 20% self-sufficient in wood-derived products. Thanks to a modern UK-based processing industry that handles some 10 million tonnes of UK timber every year, farmers who plant now can be confident of good demand in the future.

“Conifer woodlands established in the 1970s and ‘80s are now being felled and generating a tax-free profit to the owner of £10-20,000/ha. Only 10 hectares or so planted back then, on land that may have had little agricultural value, could now form a very useful boost to a farmer’s pension pot.

“Forests are not just about conventional economics and improving farm productivity. Woods add to biodiversity and can enhance the market value of farms and estates by improving the landscape. Woods help to reduce flooding and can be used to reduce the impacts of diffuse pollution from farmland.

“When we holiday in the likes of Austria, Sweden and Norway we often admire an attractive landscape that is surprisingly wooded. EU forest cover averages 35% and it’s a lot more in these three countries, while Scotland’s is only 17%.

“The key thing we see in these countries is the integration of farming and forestry, where many land owners are both foresters and farmers. That is a vision that should now be possible in Scotland.”

EGGER Forest Management in partnership with The Scottish Farmer is offering free advice on available grants at a seminar and BBQ in its marquee at the Royal Highland Show, Avenue P (next to the Forestry Arena).

For more information and tickets call 01434 611038 or email forestry.uk@egger.com

For Queries:

Jackie Watson

EGGER (UK) Ltd

Anick Grange Road

Hexham

Northumberland

T +44 1434 613363

M +44 7802 271038

F +44 1434 605103

jackie.watson@egger.com