I thank the Chairman and members for the invitation to speak about the forest strategy today. For the past 100 years we have been creating new forests in Ireland and the forest strategy builds on this legacy. We have gone from 1% forest cover in 1900 to nearly 12% today, which is the highest it has been for 350 years. Forestry is a priority for the Department and farmers are critical to delivering an increase in planting. This is why we have undertaken extensive work in the development of a policy that supports a sustainable future for forestry in Ireland.
The forest strategy was preceded by a comprehensive public consultation and the development of a shared national vision for trees, woods and forests in Ireland until 2050. Citizens want the right tree in the right place for the right reasons with the right management. The forest strategy reflects that vision. It is a roadmap for the rest of this decade for the delivery of forests for climate, for nature, for wood, for people, and for economic and rural development. The strategy includes an implementation plan with 87 detailed actions.
Close to half of these actions are contained in the new forestry programme. The new programme covers the next four years and has budgetary commitments of €1.3 billion, which is the largest investment in tree planting in the history of the State. The programme includes schemes to support the creation of new forests and to sustainably manage existing forests. The majority of these schemes are now open to applications, with more planned to open on a phased basis during the year. The primary support for the creation of new forests is the new afforestation scheme. This includes increased premium rates ranging from between 46% to 66% higher than those previously applicable. The incentives for farmers are higher than those for other landowners. They get premiums for 20 years for farmers, compared with 15 years for non-farmers.
The programme supports all types of trees and forests. For example, a farmer who plants an 8 ha native forest can receive over €253,000. This is made up of almost €80,000 in grants for forest establishment and fencing and more than €176,000 in premiums over 20 years. A farmer who plants an 8 ha mixed forest with conifers and 20% broadleaves, can receive over €157,000. This is made up of almost €38,000 in grants for forest establishment and fencing and more than €119,000 in premiums over 20 years. When this forest is harvested, at current prices it could realise approximately €200,000 for the farmer, subject of course to a number of variables. In addition, farmers can generate income from thinning interventions over the life of the forest cycle. The new forestry programme also includes an environmental report grant to support additional costs associated with applications under the licensing process. All payments and earnings continue to be income tax free. Supports are also available to forest owners who wish to manage their forest under sustainable forestry management practices. These include the forest road scheme, the woodland improvement scheme and the native woodland conservation scheme. These are all already open to applications. In addition, the forestry programme provides incentives to encourage training and raising awareness for sustainable forest management.
The knowledge transfer groups initiative, which facilitates peer-to-peer learning amongst forest owners, is already under way. It is important to raise awareness of forestry at a wider scale and to promote its benefits to both forest owners and communities. To help achieve this, we are funding 42 innovative promotion projects across the country. I would also like to mention the new native tree area scheme. No licence is needed for planting under this scheme. Farmers can receive up to €22,84 in premiums over ten years for planting 1 ha of native trees. This is a good gateway into afforestation and the approval process is very quick.
I will turn to those whose plantations have been affected by ash dieback disease. Since 2013, more than €10 million has been paid for site clearance and replanting of ash forests, covering 1,700 ha. We also increased incentives in the new programme with a 100% increase in the clearance grant and increased replanting rates. This scheme is already fully open, and applications are being processed and paid. I am aware that there are around 6,000 ash forest owners who have not yet joined the scheme and it would be in their interest to do so as soon as possible. A report commissioned by the Minister of State, Senator Hackett, which reviewed the supports in place made clear that more could be done. On foot of those recommendations, the Government only last week approved an action plan for ash dieback. An additional €79.5 million of funding is now available to pay a climate performance action payment of €5,000 per hectare to those ash plantation owners who have or will replant under a departmental reconstitution scheme. The plan not only offers additional financial support to landowners but it also commits to other actions in terms of process, implementation and communication. The Department is now progressing the arrangements to implement the actions contained in the plan. A task force to facilitate a swift implementation of the ash dieback action plan has been set up as a subcommittee of the new forest strategy consultative committee and its first meeting will take place in the coming weeks.
We cannot speak about forestry without talking about licensing. We have in recent years put much effort and resources into developing a more responsive system to build confidence in the sector. We have also set out our level of ambition for delivery this year in the forestry licensing plan, which includes a target to issue 4,200 new licences in 2024. This is however entirely contingent on receiving enough applications to achieve this goal. While there has been a steady level of interest, we need more applications to plant. We are also committed to turning around these applications within six or nine months, depending on whether an appropriate assessment is needed or not.
All applications must go through a very rigorous assessment process to ensure all environmental obligations are fully complied with and this the space in which we are operating. We will continue to look at improving our systems so that we have an efficient and effective service and we are committed to training and providing all the required help to registered foresters to make successful applications.
It is of note that there are 2,945 ha currently available for planting under the afforestation schemes. Ultimately, the decision to plant trees is one for private landowners, most of whom are farmers. This will be determined not only by the relative economics of activities on the land asset, but also by the cultural attachment to the land and the more traditional farming activities practised on it. For many farmers, the economics of forestry stacks up well relative to other activities on the land. It has been shown there is a good internal rate of return for farmers from forestry, but the cultural elements run deep. This is why forestry must be viewed as an activity complementary to other farming activities and that can deliver a strong economic return for farmers. We have now set a course for a renewed future for forestry in Ireland. It will not be easy and achieving our ambitious objectives will require a wide collective effort and it will be important to ensure there is a shared responsibility, collaboration and ownership approach across Government Departments, agencies and forestry stakeholders. The Department is fully committed to playing its part in supporting a successful and sustainable forestry sector for the benefit of all.
