Proposed new forestry premium payments

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.

FTForest TypeProposed Annual Premium/HaProposed number of premiums for non farmersProposed number of premiums for farmers
FT1Native Forests€1,1031520
FT2Forest for Water1,1421520
FT3Forests on Public landN/AN/AN/A
FT4Neighbour Woods€1,1421520
FT5Emergent Forests€3501520
FT6Broadleaf, mainly Oak€1,0371520
FT7Other Broadleaf€9731520
FT8Agro Forestry€9751010
FT9Seed Orchards€1,1421520
FT10Continuous Cover forestry€9121520
FT11Conifer 20% Broadleaf€8631520
FT12Spruce, 20% broadleaf€7461520

    The landowner remains the owner of the land and the timber