4.5 Financial Supports 2022

Financial support schemes are provided by the Department to assist in the management of the current forest estate and for the creation of new forests.

In 2022, €70.4 million of capital expenditure was invested in forestry development, 88% of which went towards afforestation grants and premiums. The balance, of approximately €8 million, was spent on other support schemes such as forest roads for harvesting, woodland improvement, shaping of broadleaves and environmental assessments.

Table 4.3 Annual capital expenditure on forestry schemes 2013 – 2022

Year Total Afof restation Forestry Support Total Expenditure €m Programme €m Schemes €m
2013	100.8	5.7	106.5
2014	102.5	5.6	108.1
2015	98.7	4	102.7
2016	98	4.2	102.2
2017	93.6	5.9	99.6
2018	86.4	6.4	92.8
2019	80.2	6.6	86.8
2020	71.6	6.0	77.6
2021	64.0	4.0	68.0
2022	64.3	6.1	70.4

Source: Forest Statistics Ireland 2023

Key to the success of increasing afforestation rates is to build confidence among landowners of the benefits of forestry as a viable option to complement existing enterprises. A package of €1.3 billion has been secured, which will support the biggest and best-funded Forestry Programme to date in Ireland.

The Forestry Programme 2023-2027 includes proposed increases in premiums for planting trees ranging from between 46% to 66%, alongside a longer term of 20 years for farmers. It has been designed in such a way that farmers will receive 33% more in annual premium payments than any other landowner in order to incentivise afforestation and to also provide a valuable addition to farm incomes.

Agroforestry is a land use option in which trees are grown in combination with agriculture on the same land, which is positive for animal welfare, improves biodiversity, can off-set emissions from other farming practices, and can prevent nutrient runoff when planted in strategic locations. In addition, it is possible to grow quality timber with little impact on existing agricultural production. Agroforestry was introduced to Ireland’s forestry support schemes in 2015 and the measure mainly targeted at silvopastoral systems which combine forestry and pasture, including grazing and the growing of fodder. It is proposed to expand this in the Forestry Programme 2023-2027 with pilot schemes for silvoarable and forest gardening systems, and an increase in the number of premiums offered for agroforestry from 5 years to 10 years. There are 55.6 hectares planted in agroforestry since the scheme measure was launched in 2015.

In addition, DAFM is planning to incentivise small-scale tree planting aimed at re-engaging farmers with afforestation. Widening the options for small-scale tree planting measures is considered an important measure to make tree planting more attractive to farmers. This would

also allow for greater integration between the measures in the National Forestry Programme and the Common Agriculture Policy.

In this regard, Government approval was sought to amend the Forestry Act 2014, through Part 3 of the Animal Health and Welfare and Forestry (Miscellaneous Provisions) Bill, which was signed into law by the President on the 4th of April 2022. Under this new legislation, Section 2 of the Forestry Act 2014 was amended to allow for the planting of trees on areas up to one hectare or 20 metres in width, as part of a proposed scheme, which is subject to approval, without the requirement for an afforestation licence. The trees planted under this scheme have to be native tree species only, of which not more than 25 per cent are Scots pine. This change will allow forests to be created through initiatives other than the afforestation scheme, thereby contributing to Ireland’s target in relation to a wide range of environmental priorities, particularly climate change, biodiversity and water quality.