THE SCOTTISH Government has announced plans to invest £160m in forestry and agriculture.

First Minister Nicola Sturgeon unveiled the Government’s Programme for Scotland 2020-21, setting out the actions the government is taking to ensure Scotland’s economic, health, and social recovery from the coronavirus pandemic and beyond.

Forestry investment will comprise the majority of the £160m pot, with an injection of £150m to increase new planting, expand Scotland’s national forests and land, and increase the supply of young trees.

This funding will support Scotland to increase planting targets to 18,000 hectares per year in 2012-25.

Read more - Millions pumped in to forestry expansion

The remaining £10 million will support a Sustainable Agriculture Capital Grant Scheme which will open for applications later this month and assist farmers and crofters with grants of up to £20,000 to purchase new equipment that will reduce emissions and improve productivity.

Rural Economy secretary Fergus Ewing commented: “The forestry sector makes a huge contribution to the rural economy - over £1 billion Gross Value Added and 25,000 jobs. This demonstrates the scale of activity in Scotland’s forests, and the potential for making a significant contribution to the green recovery.

“We know farmers and crofters want to contribute to our climate change ambitions and to cut their emissions and farm more sustainably. Helping them to change their practice by ensuring they have access to the right equipment, tools and knowledge is key. The new £10 million Sustainable Agriculture Capital Grant Scheme will provide support to do this.

“These investments will also help support and create jobs and opportunities across the rural economy, including in remote and island communities.”

NFU Scotland’s President Andrew McCornick welcomed the funding announcement: “For a significant number of NFU Scotland members, forestry has become an increasingly important diversified income stream. The availability of increased funds for planting will allow more farmers and crofters to identify if investment in trees is the right business decision for them.

“NFU Scotland has long maintained that improved business performance and climate change goals can go hand in hand – given the right investment and advice. But that requires appropriate funding targeted at effective investment to make a difference. On that basis, we would want to see that £10 million funding commitment sustained and built upon in the future to deliver climate change targets and allow a more significant number of farmers and crofters to respond meaningfully to the climate emergency and play a full part in our green recovery.”

Chief executive of Scottish Land & Estates, Sarah-Jane Laing, said Scotland’s land managers, farmers and rural businesses are ready to play their part in the fight against climate change: “Scotland’s land-based businesses are well-placed to kick-start this green recovery, and so we welcome the Scottish Government’s commitment to creating a Green Jobs Fund which will not only help us achieve these aims but will also create vital employment in rural Scotland.

The Programme for Government sets out a range of initiatives to stimulate youth employment, training and apprenticeships. Within a £100 million Green Jobs Fund, land-based sectors will be supported to provide retraining opportunities and Modern Apprenticeships.

Ms Laing added: “As businesses in Scotland’s tourism and leisure sector begin the slow recovery from the Covid pandemic, implementing a new ‘Tourist Tax’ would be an unnecessary and, in many cases, unviable burden and so we are pleased the Scottish Government has taken the decision to delay implementation of the Transient Visitor Levy.

“We are also pleased to see the Scottish Government committing to improving mobile coverage across Scotland. This is a problem which not only affects the quality of life in rural Scotland but which also stifles development, holds new businesses back and poses a danger to those working in high-risk, remote roles, and so we welcome the ongoing commitment to addressing Scotland’s so-called ‘notspots’ which suffer from a complete lack of mobile coverage.”

Chairman of the Scottish Tennant Farmers Association, Christopher Nicholson raised his concerns: “Whilst this cash injection will undoubtedly be welcomed by the forestry industry, additional tree planting on this scale threatens the future of the tenanted sector, as marginal land, which traditionally provided opportunities for new blood to enter farming, is diverted instead into forestry. Tenant farmers are now facing a double whammy. Firstly, land available for new entrants and others to rent will become even scarcer as landowners see tree planting as an attractive alternative to tenant farming. Existing tenancy arrangements are already in danger of not being renewed and STFA is aware of some secure tenants who are being put under pressure to relinquish their land for forestry development.”