New Forestry Activity Could Inject €27 Million Into Rural Ireland’s Economy in 2025

An expected increase in new forestry activity in Ireland could inject more than €27 million (US$28.39 million) into the rural economy next year, the Irish Independent reported (12-14-24).

With 560 new afforestation licenses issued by the Department of Agriculture in 2024, Forest Industries Ireland (FII) has forecast an increase in forest planting in 2025. The group, which represents the forestry and timber industry group within Ibec, said that the licenses represent 4,417 hectares (10,915 acres) of potential new forestry projects.

In both 2023 and 2024, about 1,650 hectares (4,077 acres) were actually planted, which FII estimated had generated around €10 million in grants and premiums for those new forests in those years.

Mark McAuley, director of FII, told the Irish Independent that the sector was calling on the Forest Service “and all other stakeholders in the industry” to ensure that the maximum possible number of new afforestation projects go ahead in 2025. The combined value of the forestry grants and premiums for this level of activity was estimated at €27.5 million next year alone.

Under the current forestry program, the grants paid to finance the planting of new forests are up to €6,744 (US$7,089) per hectare. Farmers then receive forest premiums for 20 years of up to €1,103 (US$1,159) per hectare.

“All of this money goes directly into Ireland’s rural economy, mostly to farmers and forestry contractors. Looking further out, considering forest premiums are payable for 20 years to farmers, the total cash injection into the rural economy would be over €105 million (US$110.36 million) stemming from the planting of 4,417 hectares (10,915 acres) of new forests,” McAuley added.