The Farm Forest

How do you best go about planting and managing a plantation? For most landowners this is a new venture and they are unsure about what exactly is involved and whether they should do the work themselves or contract it out. It is important to get independent and objective advice regarding this issue.

To assess the implications of planting land on your farm and household income you should first visit your Teagasc office where you will be advised on the best options for you.

• Once you have decided to plant some land you must get an approved forester to prepare the grant application. A list of approved foresters can be obtained from your local Teagasc office or directly from the Forest Service.
• Apply for planting approval as early as possible to avoid planting late in the growing season and include any areas you might consider planting as adding areas later will require a separate approval.
• The Forest Service processes the application and once satisfied that all the criteria for good forest establishment are in place an approval letter will be issued to the landowner. It is vital that no work starts on the proposed plantation until this approval letter is issued.
• You must then organise to have the forest establishment operation completed to the required standard. There are several options and you can organise and do as much or as little of the work yourself as you wish.
• Whichever option you choose, it is vital to obtain a basic knowledge of forestry so that you know when a forest is being properly established and managed. Don’t miss the opportunity to participate in forestry training courses, field days and demonstrations organised by Teagasc and the Forest Service throughout the country.
• It is crucial that the plantation is successfully established and that the work is done properly at the start, as mistakes are often difficult to rectify later.

There are four main options available for having your forest established. The one that suits you will depend on the time you have available to manage or work on the crop yourself. There is little point in deciding to do the work yourself and finding that you don’t have the time to manage the crop as the need arises. However, some people who opt to do the work themselves produce excellent plantations as they can put a lot more time and effort into ongoing work and management than a forest management company might do.

Option 1: Do the Development and Management Work Yourself
• You must be prepared to invest time in gaining knowledge of forestry establishment and management techniques. Attend Teagasc/Forest Service courses or field days in your area. Talk to neighbours who have already planted and learn from their experiences.
• You can do the work yourself or hire in help. However, you must employ an approved forester to submit your application to the Forest Service. The local Forest Service Inspector inspects the site and once the approval is issued you can prepare to plant according to the guidelines laid down in the approval.
• It is essential that any contractors who are hired in have a current tax clearance certificate, as evidence of this will be needed when you are applying for grant payment.
• When the work is completed you should apply for payment of the Afforestation Grant and first Forestry Premium payment. You must hire in an approved forestry consultant to map the planted area and the species boundaries on an original 6” composite map (obtainable from the Ordnance Survey). A surveyor or engineer is required to map any undefined boundaries.
• You will be required to submit receipts to show expenditure, as the grant is cost based. You can cost in a charge for your own time including planning, direct labour, supervision, overheads and time spent sourcing materials.
• You should submit Certificates of Provenance and Provenance Declaration Forms for trees purchased. The nursery will provide these, along with the invoice.
• If the work has been carried out to the required standard, payment to you of the First Instalment of the Afforestation Grant and first Forestry Premium will be approved. Following inspection by the Forest Service inspector, the Second Instalment Grant, also known as the maintenance grant, will be paid to you four years later if the site has been properly managed and maintained.

Option 2: Hire a Consultant or Contractor to do Some or All of the Development and Management Work.
•You must employ an approved consultant forester or contractor to apply for planting grant approval on your behalf. Generally they have knowledge of subcontractors and machine operators and can source trees and other materials. They can be employed to organise some, or all, of the establishment work. It is important to agree a price for the specified work and the standards required (preferably by contract). Once the work is completed you apply for payment of the grant, again employing your approved forester. A consultant/contractor may also be employed to organise or carry out subsequent maintenance.
• With this option you may need to have access to funds to cover the costs incurred, as payment of the Grant will not be made until the work is completed and the job approved by the Forest Service Inspector.
• You can opt to give all the work to one contracting company who will establish and manage the site, usually for four years. You may mandate payment of the First and Second Instalments of the Afforestation Grant to the contracting company. The advantage of this is that you do not need bridging finance to cover costs incurred, as the contracting company will carry the costs.
• Any contractor, whether or not on the Forest Service list of approved foresters, can do the forest establishment and maintenance work as long as an approved forester prepares applications for planting approval and grant payment.
• Check other jobs that the contractor or consultant has done nearby and talk to other landowners to assure yourself regarding the quality of work done.
• Whether you opt to draw down the grant yourself or to mandate the grant to the contracting company, the annual Forestry Premium payment will be paid to you directly.
• After the four-year stage you can opt to manage the plantation yourself. Alternatively you may choose to pay an annual maintenance fee to a contracting company for ongoing maintenance and insurance costs.

Option 3: Hire in a ‘Self-Assessment’ Company to Establish the Plantation
• Many farmers employ a forestry company to carry out all the development and early management of their plantations. As a means of speeding up applications, a number of these companies have been authorised by the Forest Service to carry out their own pre-planting assessments.
• These ‘Self-Assessment’ companies establish and maintain sites under contract.
• The Forest Service Inspectors check a percentage of sites before planting, after planting and after four years. All other sites that are not planted under the Self-Assessment system are inspected at all three stages.
• The company’s approved forester completes the application for planting grant approval and submits it to the Forest Service.
• The Self Assessment companies are: Coillte Farm Forestry Services, Forestry Services Ltd., Green Belt Ltd., Mid-Western Forestry Services Ltd., South Western Forestry Services Ltd. and Woodland Contractors Ltd.

Option 4: Enter a Partnership with a Management Company.
• Under Options 1,2 and 3 you retain ownership of the crop and the land. In a partnership agreement you still retain full ownership of the land but share the profits arising from the sale of the timber crop. The forest management company (e.g. Coillte) undertakes to manage the plantation for the lifetime of the crop.
• The management company deducts all costs and the remaining profit from the sale of the crop is shared between the company and yourself. It is your responsibility to replant the site after clearfell.
• You can negotiate the timing of payment for your share of the crop e.g. the company may give you an advance on the profit from the harvest at the time of signing the contract. However any upfront payments are deducted from your share of the profits from the timber crop.
• You keep the annual Forestry Premium payments.
• The company may also pay you annual payments after year 20 (advances on timber sales) so that you have some income during the whole life of the timber crop. However this decreases your share of the revenue from timber sales.