The Government has recently announced increases of between 46% and 66% in annual income tax free forest premium payments, with payments now extended to 20 years for farmers.
Grants & Premiums will be payable on 12 new Forest Types (FT) with annual income tax free premiums ranging from €746 per hectare to €1142 per hectare.
The new Native Tree Area Scheme allows for premiums to be paid over 10 years meaning up to €2,284 per hectare per year for 10 years can be secured. This scheme will work very well with the new ACRES agri environmental scheme.
The new Forests for Water Forest Type also provides for an additional payment of €1,000 per hectare to the landowner on completion of planting.
The proposed new premium rates are detailed in the table below.
|FT||Forest Type||Proposed Annual Premium/Ha||Proposed number of premiums for non farmers||Proposed number of premiums for farmers|
|FT2||Forest for Water||1,142||15||20|
|FT3||Forests on Public land||N/A||N/A||N/A|
|FT6||Broadleaf, mainly Oak||€1,037||15||20|
|FT10||Continuous Cover forestry||€912||15||20|
|FT11||Conifer 20% Broadleaf||€863||15||20|
|FT12||Spruce, 20% broadleaf||€746||15||20|
The landowner remains the owner of the land and the timber