The Forestry Programme 2023-2027 replaces the previous Forestry Programme of 2014-2020 (extended to 2022). This new Programme was created in alignment with Ireland’s recently published Forest Strategy and as such, is designed to provide lasting benefits for many key areas such as climate change, biodiversity, wood production, employment alongside enhancing societal benefits.
The Forestry Programme 2023-2027 is extremely ambitious and distinct from its predecessors, demonstrated by the new & revised schemes on offer. This is reflected in the increased premium payment rates contained within the Programme. These increased rates are envisaged to incentivise behavioural change and to reflect the new terms and conditions associated within these schemes.
Please see the below table for the increase in premium rates for Forest Types offered under the Afforestation Scheme 2023-2027, relative to the equivalent offering in the Afforestation Scheme 2014-2022.
|
|
Forest Type
|
FP 2014-2022 Annual Premiums/ha
|
FP 2023-2027 Annual Premium/ha
|
Difference
|
|
FT1
|
Native forests
|
€665
|
€1,103
|
€438
|
|
FT6
|
Pure Broadleaves - oak or beech
|
€645
|
€1,037
|
€392
|
|
FT7
|
Other Broadleaves
|
€605
|
€973
|
€368
|
|
FT8
|
Agroforestry
|
€645
|
€975
|
€330
|
|
FT11
|
Mixed high forests: Scots Pine, Douglas Fir
|
€590
|
€863
|
€273
|
|
FT12
|
Mixed high forests with mainly spruce, 20% broadleaves
|
€510
|
€746
|
€236
|
As the Forestry Programme 2014-2020 (extended to 2022) is a standalone Programme, the schemes contained within are subject to their own unique terms, conditions, and rates.
The Forestry Programmes also operate pursuant to State Aid approval. A key element of this approval is that the aid must have an "incentive effect". An incentive effect is present when the aid changes the behaviour of an undertaking such as additional activity contributing to the development of the sector, where it would not have taken place without such aid or where in its absence the activity would have transpired in a restricted or different manner.
My Department, as the granting Authority in this instance, must ensure that any State Aid provided does not subsidise the costs of an activity or undertaking that would have incurred in any instance and must not compensate for the normal business risk of an economic activity. State Aid shall only be deemed allowable once an application has been made before
the activity or undertaking has commenced. A participant under an existing contract would be in breach of this incentive effect if availing of State Aid premium rates applicable to the current or future Forestry Programmes.
