Afforestation Scheme 2007

As part of the agreement that Minister Wallace got from the EU to run the new FEPS scheme before final agreement of the 2007-2013 RDP, she also got agreement to run the New Afforestation Scheme 2007 operational from the 1st January 2007. The scheme has been improved and updated with several significant changes

Rates up by 15%

The first significant change to the Afforestation Scheme 2007 is that the premium rates have been increased by 15%. This is in line with Government policy and is the third increase since the Afforestation Scheme was introduced under the 1994 RDP. This increase, as with previous increases and stated Government policy and undertakings, will apply to all plantations grant-aided since the 1993-2000 RDP Afforestation Scheme.

A farmer who planted 30 acres of enclosed land with mixed conifers in 1994 would have been getting a premium of €98 per acre. In 1997 this increased to €118 per acre, in 2000 it increased further to €169 per acre and now it has been increased again further to €194 per acre.

Farmers often ask if the premiums are linked to inflation and when we tell them that they are not, some are disappointed and even think about not planting because of this. That is however until we explain to them and show them how the premiums have increased by more than twice the rate of inflation since 1994, 118% increase in premiums versus 51% increase in inflation. (inflation from CSO). The rate of premium has increased from €98 in 1994 to €194 per acre in 2007. If the premiums were index-linked they would only be worth €134 per acre today, 45 euro of an increase instead of the 105 euro increase that has been paid. I think its fair to say that it was a good think that the premiums were not index-linked and also that someone planting can expect that the value of the premium will at least match the rate of inflation. (over the last 14 years the premiums have increased by more than twice the rate of inflation.

Afforestation Scheme 2007 Premium rates in € per ACRE
Grant and Premium Categories	Up to 15 acres	15 to 30 acres	Over 30 acres
GPC 1 - Unenclosed land	97.51 acre	97.51 acre	97.51 acre
GPC 2 - Non-diverse conifers	156.60 acre	162.51 acre	168.41 acre
GPC 3 - 20% diverse conifers	182.00 acre	187.91 acre	193.82 acre
GPC 4 - 100% diverse conifers	193.82 acre	199.73 acre	205.64 acre
GPC 5 - Ash - Alder - Sycamore	205.64 acre	211.55 acre	217.45 acre
GPC 6 - Oak pure of in mixture	220.41 acre	226.32 acre	232.23 acre
GPC 7 - Beech pure or in mixture	220.41 acre	226.32 acre	232.23 acre

25% of income from farming no longer required to qualify as farmer

Another significant change has been made regarding the income qualification requirement. Under the old scheme a farmers had to prove that he/she derived at least 25% of income from farming to qualify for the higher rate of premium. Under the new Afforestation Scheme 2007, if a person has a Department Registration number (herd no, reps no, flock no etc) then he/she will be classified as a farmer and will be eligible to receive the higher rate of premium.

This is part of a programme by the Dept of Agriculture to standardise the qualification requirements of their various schemes and to remove the unfair advantages that some schemes had over others. This will be good news for many farmers who could not qualify under the old scheme due to having an off-farm job.

Abolition of the 70 mile rule

The third significant change to be introduced in the new Afforestation Scheme 2007 is the abolition of the 70 mile rule. In the old scheme a landowner had to live within 70 miles of the plantation to qualify for the farmer rate of premium. Not only that but he/she had to continue to live within 70 miles of the plantation to continue getting the farmer rate of premium for the 20 years. Now this has been abolished, and where you live has no relevance to you qualifying for the farmer rate of premium.

The 70 mile rule originally existed in the pre SFP schemes where payments were linked to production. Now with the introduction of SFP where there is no requirement to produce the 70 mile rule has been abolished as a farmer does not have to be within commuting distance of his/her farm (this rule still applies for the Disadvantaged Area Scheme). In line with this change and the fact that if you are a forest owner you do not need to see the plantation every day or even week, this requirement has been abolished.

The major significance of this change is that farmers need not worry about a situation whereby at some time in the future when they may move beyond the 70 miles and worry about losing their premiums. This again reinforces the fact that forestry requires very little work from the farmer and allows he/she to seek well paid work wherever they may choose to go, even abroad.

Afforestation Scheme 2007 Premium rates in € per HECTARE
Grant and Premium Categories	Up to 15 acres	15 to 30 acres	Over 30 acres
GPC 1 - Unenclosed land	240.94 ha	240.94 ha	240.94 ha
GPC 2 - Non-diverse conifers	386.95 ha	401.56 ha	416.16 ha
GPC 3 - 20% diverse conifers	449.74 ha	464.35 ha	478.94 ha
GPC 4 - 100% diverse conifers	478.94 ha	493.55 ha	508.15 ha
GPC 5 - Ash - Alder - Sycamore	508.15 ha	522.76 ha	537.35 ha
GPC 6 - Oak pure of in mixture	544.65 ha	559.26 ha	573.86 ha
GPC 7 - Beech pure or in mixture	544.65 ha	559.26 ha	573.86 ha

Increase in Premiums since 1994

Far from remaining static, forestry premiums have increased significantly over the years. This increase has been granted to all plantation owners and now people who planted in 1994 and were getting 89 Euro per acre are not getting 194 Euro per acre. They have benefited from all four increases.

Premium value today if they had been index-linked

Some farmers worry that the value of their premiums will be eroded by inflation over time. Some wish that the premium payments were index-linked.

In the graph above we show that if the premiums were index linked that today they would be worth only 134 euro per acre compared to the 194 euro per acre that the premium actually is.

Afforestation Scheme 2007 documents

Below are a number of documents that relate to the Afforestation Scheme 2007 that you can download.