The planting target of 20,000 hectares per annum was established under the 1996 Strategic Plan for the Development of the Forestry Sector in Ireland — Growing for the Future. This target was re-affirmed recently in Peter Bacon and Associates Review and Appraisal of Ireland's Forestry Development Strategy, September 2004, although it was also noted that a lesser annual planting figure could be justified if the planting was undertaken in a manner that maximised the non-timber benefits.
In terms of the strategies employed to achieve this target, my Department offers a 100% afforestation grant covering the costs associated with the establishment of the plantation, coupled with a 20 year premium for farmers and a 15 year premium for non-farmers to cover loss of income. In addition, earnings from commercial forestry are exempt from income taxes and from capital gains tax on the timber asset.
The advent of the single payment scheme in 2005 and the concessions offered to farm foresters in regard to the consolidation of entitlements, means that prospective farm foresters are currently in the position of being able to afforest up to 50% of their average claimed eligible land while receiving full single payment entitlements and also their twenty year forestry premium. As a result, there has never been a better time for farmers to participate in the afforestation programme. I would therefore urge all landowners considering forestry as a land use option, to make best use of the generous supports currently available.