Forestry is the best economic alternative for marginal land:
- No financial input - 100% establishment grant
- Annual income tax free payment for 15yrs
- Income from Timber Sales Income tax free
- You can receive Single Farm Payment & forestry premiums on the same land
- Timber prices are at an all-time high and have been increasing year on year since 2007.
- Timber demand by 2020 is predicted to increase by 1.7 million m3 (nationally) to 6.3 million m3.
- All Ireland timber supply is forecast to increase from 3.8 million m3 at present to 4.7 million m3 by 2020 (and 6.5 million m3 by 2028). The roundwood supply demand deficit by 2020 is therefore forecasted at almost 2 million m3. This increase is expected to come from the private sector. Up to 600,000 tonnes of roundwood per annum is currently imported to supply our sawmills.
- Ireland is a net exporter of timber with 80% of the timber processed exported to the UK. Irelands share of the UK market has grown from 3.37% in 2007 to 6.5% in 2012.
- Firewood market grew by 35% in over the period 2006-2010.
- In 2012, the forestry sector contributed €2.2 billion to the Irish economy.
Ireland has the highest growth rates for growing conifer trees in Europe with trees growing on average three to five times faster in Ireland than mainland Europe. Our wet mineral soils and humid climate favour excellent growth rates.
Forestry is increasingly in demand worldwide, especially so in Europe which has to import 50% of its annual timber requirements. Our nearest neighbour the UK has to import 80% of its sawn timber. Ireland currently exports 80% of its sawn timber to the UK which supplies 6% of the UK requirement. Demand is there and there is room for growth.
As your forest grows it will provide shelter for the rest of your farm. Forests will reduce wind speeds by up to 50% and increase both air and soil temperatures. Furthermore, research has shown that shelter produces healthier livestock, earlier germination and better yields from crops.
For more information please contact us.