more forestry

networks

hello all,i planted 9 hectares of forestry 2yrs ago and am happy enuf with it,:mad:even tho the premuim has been cut.i was thinking of planting another 3 hectares of it early in the year b4 the premuim cut,would i be foolish to plant it now seen as the premuims mite be cut further and the land has to stay in forestry forever? thanks

parka

networks wrote: »

and the land has to stay in forestry forever?

Someone mentioned this to me the other day, it seems a little harsh.

Caoimhín

It is impossible to say if the premium will be cut any further. There has been intense lobbying by the Forestry companies and farming representatives over the past month but i suppose it all depends on how bad things are going to get in the economy in general.

To be honest, I dont think it will matter when you plant, if the economy really tanks, nothing will be sacred.

At the moment, the 1946 felling act requires the land to be replanted after it is harvested. Now there was some moves made last year to reform this but, in my opinion, the cost of removing any tree stumps and turning land back into grass/crops would be far too expensive to justify doing.
Unless of course it is for property development, but then that horse may have bolted for the current generation of land owners...

dontom

networks wrote: »

would i be foolish to plant it now seen as the premuims mite be cut further and the land has to stay in forestry forever? thanks

Irish government have shut down private forestry development:

- No grant aid for forest roads (means no harvest)
- No reconstitution grant with a forest fire
- Income levy (tax) on forestry income
- Over regulated administration (red tape)
- Over restriction on environmental issues
Possible reason:
The Irish private forest estate has reached a size and age
where it will start to compete with the state forest estate.
Due to the lack of forest premium for the state forest, combined with a shrinking market for their timber during the economic crises,
private forest entrepreneurs will successful compete with the state forest.

Naturally, semi states don't like this!!!

Caoimhín

Irish government have shut down private forestry development:

Im not sure that is the policy either on a national of EU level. I work in the private industry, my business depends on it and while the cuts are pretty harsh, i think it is a little dramatic to suggest that they are trying to shut it down.

- No grant aid for forest roads (means no harvest)

The grant aid scheme for forest roads is back up and running, with the only restriction being that the forest has to be within 2 years of first thinning, about 16 - 20 years old. Even if there was no road grant, forests could still be harvested.

-

No reconstitution grant with a forest fire

There hasn't been for years. The reason being that the forest should be insured against fire.

- Income levy (tax) on forestry income

This is a particularly bad decision, it undermines the entire forestry industry (including Coilltes private ventures). I think they could have taken if from the Grant aid as costs are going down, but the big companies lobbied hard against this.
All the same, a 9% cut in premiums is not a lot when you consider the many 10's of thousands losing their jobs and the savage cuts in education and health.

-

Over regulated administration (red tape)

This depends on what you mean, there isn't much red tape for getting a premium payment every year. The initial grant aid application is quite tricky but that is what professional foresters are there for and what money IS easy to get nowadays?

- Over restriction on environmental issues

I wont argue with you there, but most of this regulation is coming from Europe and really it is just bringing Irish forests up to EU standard.

Possible reason:
The Irish private forest estate has reached a size and age
where it will start to compete with the state forest estate.
Due to the lack of forest premium for the state forest, combined with a shrinking market for their timber during the economic crises,
private forest entrepreneurs will successful compete with the state forest.
Naturally, semi states don't like this.

Simply not true nor would it make any sort of economic sense. Coillte do not have that kind of leverage over the department of agriculture and it would break nearly every EU competition law. If this was the case, the private forestry companies (I work for myself by the way, not a company) would have been to the press and the courts by now.

networks

thanks 4 replies, when i planted the land,i signed an agreement with forest service 4 a fixed premium at the time of planting 4 20years(if no increase in premuim in 20yrs,so be it ,i accepted it)if i didnt keep my young forestry in good condition as per agreement my premuims can be stopped,yet that same agreement with a fixed premuim for the forestry can be rewritten again by the govt,not signed by me and premuim slashed and same conditions attached????????,and the forestry company that planted it walks away with 43000 euro!!!:D