Compensatory allowances in respect of forestry were paid under a provision of an EC Regulation designed to compensate farmers in disadvantaged areas for the loss of livestock headage payments incurred when they converted their land from livestock to forestry. The then governing EC Regulation required that the forestry payments be confined to those who were already receiving livestock headage payments before afforesting their land.
Forestry compensatory allowances have now been replaced by a forest premium which is available to eligible farmers throughout the country and is not linked to receipt of livestock headage payments in the disadvantaged areas.