The current forestry programme is 100% exchequer funded and governed by rules set out under the ‘European Union Guidelines’ for state aid in the agricultural and forestry sectors and in rural areas since 2014 to 2020.
With regard to afforestation, these rules provide for annual premium payments to cover agricultural income forgone and maintenance; they do not provide for payments for carbon.
These were the sentiments expressed by the Minister for Agriculture, Food and the Marine, Michael Creed, during Dáil proceedings last week after he was asked by deputy Jackie Cahill (Fianna Fáil) if he will introduce proposals to reward financially, landowners who have their lands planted with forestry.
Deputy Cahill also asked the minister to “take into account” the fact that their lands are acting as carbon sinks and helping the state to achieve its climate change targets.
Minister Creed, meanwhile, pointed out to those gathered for proceedings that the current model – adopted by Ireland to increase forest cover – is to provide funding to landowners to cover 100% of the costs of establishing forests, and to provide annual premiums to encourage landowners to make this land-use change.
In addition, tax free incentives are provided when timber is sold and other grant aid is provided to construct forest roads.
He continued: “Other models without the use of significant grant aid could have been explored.
“However, the state has chosen to fund forestry programmes since the 1990s with a combination of grants and premiums, tax incentives and other supports to assist landowners in the management of their plantations.
“The continuation of this model over successive forestry programmes since 1990 has been the favoured option of all of the relevant stakeholders also.
“This model has resulted in the payment of some €2.4 billion directly to farmers by the state since 1990.”