Ireland Reduces Forest Sector Budget as Farmers Turn Away From Planting Trees

Forest industry experts in Ireland are warning that the €20 million reduction in this year’s allocation from the government for the forestry sector is a sign that the industry is heading in the wrong direction as farmers turn away from planting trees, the Irish Independent reported (10-26-24).

The industry is seeking a dramatic increase in afforestation by changing agricultural incentives—and to this end it is seeking the greater use of Irish wood in, for example, the construction of housing, according to Mark McAuley, director of Forest Industries Ireland. A huge amount of forestry planted during a boom period in the 1980s and 1990s is now maturing and will greatly increase supply over the coming 10 years, he said.

However, the reduction in the annual budget of the government’s forestry program from €110 million to €91 million was a major worry for the future health of the sector because it suggested farmers are now turning away from commercial tree planting. The budget reduction was largely accounted for by a fall in new forestry activity, which meant fewer forestry premiums having to be paid out to farmers.

“The big expenditure in the forestry budget is in paying farmers over 20 years for planting trees,” McAuley added. “So effectively, you’ve got more farmers dropping out the back end of the scheme than you have new farmers coming in the front end of the scheme. Farmers in forestry face tight environmental rules that have placed restrictions on the sector. Fundamentally, it is easier for farmers to do other things. On the other hand, it’s a big decision to go into forestry and the application process has become so complex.”

The industry is worried about the falling planting rate, as it undermines the long-term viability of Ireland’s timber sector, said McAuley.