The government’s new €1.3 billion Forestry Programme is a “lost opportunity” and will not meet the needs of farmers, one farm organisation has warned today (Wednesday, August 2).

According to the Irish Farmers’ Association (IFA) the way the new Forestry Programme has been constructed “will turn many farmers off the programme”.

Jason Fleming, IFA’s forestry chair, said funding for the programme is “very strong” but farmers lack reassurance about the commercial viability of forestry investments.

The European Commission today approved, under EU state aid rules, a €308 million Irish scheme to support investments in afforestation.

The scheme aims to support the expansion of the Irish national forest estate on both public and private land, to deliver lasting benefits for the climate, biodiversity, wood production, economic development, employment, and quality of life.

Premiums of up to €1,142/ha for planting trees will be available under the EU-approved afforestation scheme as part of the government’s new Forestry Programme 2023-2027.

But Fleming said that farmers’ concerns about the programme have not been heard by the government.

“Farmers will be required to reduce their productive area by 32%, for areas of biodiversity enhancement and broadleaves with only a 20-year premium despite the loss of timber earnings along with the eco-system services being provided.

“This requirement also extends to the replanting stage with no grant, premium, or compensation for the lost productive area,” he said.

According to Fleming there are also concerns over the Payment for Eco System Services (PES) outlined in the programme.

The IFA believes this should be amended to pay farmers to manage land set aside for biodiversity enhancement and broadleaves.

“The PES rate should reflect the income foregone from timber production and must be extended beyond the proposed seven years,” he added.

The IFA said there are also issues with premium rates – which they believe should be index-linked and an increased rate paid to existing forest owners – and also around infected ash woodland which it believes should be eligible for a 100% “reconstitution grant”.

In addition to this, it firmly believes that the replanting obligation “is a key barrier to farmers’ participation” in forestry and should be reviewed.