Renting land for forestry

dublinbando · 18-05-2017 07:17PM #1

Hi guys,

I am interested in getting into forestry but do not own any land. I was doing some research and it seems very cheap to rent land.

Would it be a good idea to start afforestation on rented land? Is this sort of thing generally allowed by landlords?

Any information would be much appreciated!

Mooooo · 18-05-2017 07:23PM

dublinbando wrote: »

Hi guys,

I am interested in getting into forestry but do not own any land. I was doing some research and it seems very cheap to rent land.

Would it be a good idea to start afforestation on rented land? Is this sort of thing generally allowed by landlords?

Any information would be much appreciated!

No, you must own it

dublinbando · 18-05-2017 07:39PM

Mooooo wrote: »

No, you must own it

Ok, and is that a law or is it just that landlords don't allow it?

Maybe better to buy the land then?

ganmo · 18-05-2017 07:45PM

Here's some of the problems with renting land for forestry
-Most land leases are 5 or 10 years, forestry is a minimum of 20 years
-if you plant ground there is an obligation to replant.

Buford T. Justice XIX · 18-05-2017 08:21PM

ganmo wrote: »

Here's some of the problems with renting land for forestry
-Most land leases are 5 or 10 years, forestry is a minimum of 20 years
-if you plant ground there is an obligation to replant.

I think the obligation to replant has been removed and the premiums reduced from what they were when replanting was compulsory but I stand to be corrected on that.

dublinbando · 18-05-2017 09:11PM

ganmo wrote: »

Here's some of the problems with renting land for forestry
-Most land leases are 5 or 10 years, forestry is a minimum of 20 years
-if you plant ground there is an obligation to replant.

But say I arrange a 10 year lease, start the forestry, look after it for the life of the lease while collecting the grants and premiums then either renew the lease after 10 years or let the landowner take it from there?

ganmo · 18-05-2017 09:46PM

dublinbando wrote: »

But say I arrange a 10 year lease, start the forestry, look after it for the life of the lease while collecting the grants and premiums then either renew the lease after 10 years or let the landowner take it from there?

That's what a lot of the forestry companies do. They plant and look after the forest up to a certain time taking the grants etc as their payment then it's up to the landowner after that, they can retain the forestry company but I don't know

ganmo · 18-05-2017 09:49PM

Buford T. Justice V wrote: »

I think the obligation to replant has been removed and the premiums reduced from what they were when replanting was compulsory but I stand to be corrected on that.

Take a gander in the forestry section, it's still there.

dublinbando · 18-05-2017 10:12PM

If you look at it like this, you can rent ~40 acres of agricultural land for 3500 per annum, then the starting grant for 40 acres will be about €60,000 for oak or beech including fencing allowance. Then the annual premium would be €9,960 tax free for 15 years.

So if you get this all set up on rented land you will be making a profit of about €6,400 per year. That sounds like a nice little passive income right?

Wildsurfer · 18-05-2017 10:13PM

Why would someone lease their land to you so you could draw down premiums sur they can get premiums themselves tax free

dublinbando · 18-05-2017 10:14PM

Wildsurfer wrote: »

Why would someone lease their land to you so you could draw down premiums sur they can get premiums themselves tax free

There are ads up for agricultural land all over the place?

tractorporn · 18-05-2017 10:19PM

Wildsurfer wrote:

Why would someone lease their land to you so you could draw down premiums sur they can get premiums themselves tax free

I really couldn't see anyone leasing their land allowing forestry being planed on it. Most leases stipulate that forestry is not allowed for a start. And if a farmer wanted to plant his land he'd do it himself.

Username John · 18-05-2017 10:20PM

dublinbando wrote: »

There are ads up for agricultural land all over the place?

Not to rent for forestry...

Why would someone let you grow something on their land for say 10 years, take the premiums, then you feck off and they have land which now will cost a lot of money to turn back into agricultural land, or wait a long time to see a return...

It makes no sense for a land owner to let it to someone for forestry... farmers will pay to rent land and return it in agricultural condition to be let to the next lad after the 5 years is up...

Who2 · 18-05-2017 10:22PM

dublinbando wrote: »

If you look at it like this, you can rent ~40 acres of agricultural land for 3500 per annum, then the starting grant for 40 acres will be about €60,000 for oak or beech including fencing allowance. Then the annual premium would be €9,960 tax free for 15 years.

So if you get this all set up on rented land you will be making a profit of about €6,400 per year. That sounds like a nice little passive income right?

What happens after the premium stops? Do you honestly believe that the land owner will be just happy to let you draw down the 15 or 20 years of premium and then leave you off and he has to deal with a now pretty much useless bit of ground that he will be lucky if his grand kids get to clear fell.

Wildsurfer · 18-05-2017 10:23PM

Yes but not for use as forestry. As grassland or tillage crop. Explain your thinking. You lease the land, then plant and maintain it and draw down premiums? But a farmer can get a forestry company to plant iit and keep all the premiums. Unless maybe christmas trees? That might be different

croot · 18-05-2017 10:44PM

You can't draw down the grants and premiums on forestry unless you own it.

epfff · 18-05-2017 10:59PM

dublinbando wrote: »

If you look at it like this, you can rent ~40 acres of agricultural land for 3500 per annum, then the starting grant for 40 acres will be about €60,000 for oak or beech including fencing allowance. Then the annual premium would be €9,960 tax free for 15 years.

So if you get this all set up on rented land you will be making a profit of about €6,400 per year. That sounds like a nice little passive income right?

Where 40 acres for rent at 3500?
Why would anyone that owned the land cut you into the deal?
Read past the headline on forestry grants I think you are making it very simple compared to what I read.
Also Microsoft are now offering 1k per ha so maybe it's even better?

Nekarsulm · 19-05-2017 07:57AM

Ring around a few Auctioneers who deal in forestry land, and ask them how much clear felled land is selling for.
Now ask yourself, who would rent out their land only to have it de-valued to such an extent, and to leave it un-rentable forever more?
It also removes the land from avricultural use.

Why not buy the land yourself and take it from there?

croot · 19-05-2017 10:21AM

Everyone is missing the point. Forestry grants can only be got IF you own the land. So renting land for forestry is not possible.

tabby aspreme · 19-05-2017 10:35AM

Folks , take a look at the OP's other thread before posting on this one

TITANIUM. · 19-05-2017 10:51AM

tabby aspreme wrote: »

Folks , take a look at the OP's other thread before posting on this one

Jesus I see now.
I'm looking forward to seeing what the next get something for nothing thread will be out of him.

dublinbando · 19-05-2017 01:04PM

I'm legitimately trying to figure out a way to make money to buy a house or obtain a house some how, I was looking at forestry as a business opportunity and seeing whether renting land for this is a possibility or if I would have to buy the land. I am certainly not trying to get something for nothing!

I think the word for it is entrepreneurial.

Wildsurfer · 19-05-2017 01:12PM

Or 'Thinking outside the box' would be another good description. Fair dues lad, its interesting reading for us at the least. This time next year we'll be millionaires Rodney!

Renting land for forestry

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