Since ash was removed from the approved list of species for grant approval in 2012, broadleaf planting has averaged 21.5% of total planting. The target is 30% , which “is a specific condition of our State Aid approval for the Forestry Programme 2014 to 2020,” according to the Forest Service (FS). The FS has now changed the grant aid rules to ensure a minimum of 15% broadleaves on all planting sites.
30:70 broadleaf
The key to achieving a 30:70 broadleaf to conifer ratio lies in finding a replacement for ash. Broadleaves averaged 31.2% of all afforestation from 2000 up to 2012, the year of Chalara ash dieback, the fatal disease caused by fungal pathogen Hymenoscyphus fraxineus.
Ash afforestation amounted to 30% of broadleaf planting, or 10% of total planting in the years prior to Chalara. It was obvious therefore that broadleaf planting would decrease significantly, after ash was taken off the approved list of grant aided species. Foresters and forest owners – especially farmers – who have a genuine empathy with ash have struggled to find a suitable alternative native or naturalised broadleaf species.
Rule change
To get the broadleaf programme back on track, a recent circular from the Forest Service(2/18) has changed the rules to ensure minimum of 15% broadleaves by area.
There have been mixed views on the Department circular, especially as no suitable alternative species has been found to replace ash.
However, most foresters and nursery managers contacted believe that the 30% target is achievable as follows:
However, a more imaginative approach is required to ensure that Ireland achieves a more diverse species mix including:
Finally, more research is required in our broadleaf tree improvement and forest protection programmes. In addition, forest owners, especially farmers, need to be compensated for carrying 30% of species, which will not provide a return on investment during their own lifetimes.
ITGA welcomes clarification of CAT for forestry
Certain business assets qualify for a 90% deduction when gifted or inherited, but it wasn’t clear if forestry was included.
Now, following representations to the Revenue Commission by Dermot Byrne, tax consultant, on behalf of the Irish Timber Growers Association (ITGA), Revenue has issued a brief (06/18 ) clarifying the position of Capital Acquisitions Tax (CAT) relating to business relief and forestry/woodland businesses.
“In effect, Revenue has now formally determined that forestry qualifies as a business and therefore attracts favourable CAT treatment,” said Seamus Parle, Cooney Parle Auditors and Accountants.
Donal Whelan, technical director, ITGA, welcomed the CAT amendment.
“We have been seeking clarification for some time on this and the ITGA wishes to thank Dermot Byrne, for pursuing this matter,” he said.
“We are delighted there is clearance from Revenue which clarifies that standard forestry is eligible for business relief for CAT, which is extremely important for private forest owners and their families, mainly farmers. The CAT clarification – along with income tax exemption – helps to compensate farmers and other landowners for investing in forestry, which is a viable but long-term land use.”
Teagasc and Letterfrack research on alder
Teagasc would like to hear from forest owners with alder or western red cedar crops at the thinning or post thinning stage. Teagasc and GMIT Letterfrack plan to collaborate on researching the added value potential of both species in the small-diameter class sizes.
A brief survey for growers has been formulated to gather some data regarding the validity of proposing such research.
The responses will be used to evaluate a current proposal for a masters research project. The information supplied will remain strictly confidential with data compiled anonymously.
Growers can complete a short survey, available in the Teagasc newsletter E-news, available by clicking here.
Further information is available from Dr Ian Short, Teagasc broadleaf forestry research officer who can be contacted by emailing ian.short@teagasc.ie or calling 01 8059966.
2018 forestry premium payments
Andrew Doyle, Minister of State with responsibility for forestry recently launched the ITGA Forestry & Timber Yearbook.
“This publication provides up-to-date information and the contacts needed to take forests to the next level,” he said.
Minister Doyle has announced the release of the first bulk payment of annual tax-free forestry premiums for 2018. The payments are currently being issued to forest owners who applied through the Department’s online services website www.agfood.ie.
Online applications
“Some 7,300 forest premium applications have been paid amounting to €27.8m,” he said.
“The Department will continue to process online applications for 2018 forest premiums as they are received, with payments continuing on a weekly basis throughout the year,” he said.