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Coillte is Ireland’s largest and most experienced integrated Forestry Company. We are involved in all aspects of timber production from the sourcing of seed, the production of quality nursery stock, planting, maintenance, harvesting and marketing. Our subsidiary company Smartply Europe limited is the largest processor of pulpwood in the country. As the largest landowners on the island of Ireland, we have a presence in every parish offering employment locally, where other traditional jobs are diminishing.
In this article we look at two of our schemes, the Farm Partnership Scheme which has been in existence since 1992 and at our Farm Forestry Management Scheme which we have introduced to cater for those farmers who require forestry expertise in managing their semi-mature plantations that are coming close to a first thinning.
Coillte Farm Partnership Scheme
We introduced the scheme in 1992 and we have approximately 500 farm partners with over 10,000 hectares, participating in the scheme.
When a landowner enters into a Farm Partnership with Coillte, she/he continues to retain ownership of their land and she/he can opt to receive a tax-free income for the life of the crop as well as an advance payment of up to €635 per hectare. The landowner benefits from Coillte’s management and marketing skills throughout the life of the crop and receives the larger share of the clearfell profits.
Coillte Farm Forestry Management Scheme
We are introducing this scheme in 2003 in response to the demand from plantation owners for a scheme that manages and markets their semi-mature plantations.
The scheme is similar to the Farm Partnership scheme in that it provides professional management for the life of the crop. An added feature of the scheme is that it provides for the establishment of the successor crop, if required.
KEY FEATURES OF PARTNERSHIP SCHEME
● The landowner retains ownership of the land.
● An advance payment of up to €635 per hectare is made at the start of the Scheme.
● A forest premium payment is made by the Forest Service for 20 or 15 years depending on the landowners circumstances (Farmer/Non-Farmer).
● The landowner receives 80% of the thinning profits. This amount will be apportioned and paid annually from the time the premium payments cease until the year prior to clearfell. This is known as the thinning annuity.
● The landowner receives 55% of the clearfell profits. Alternatively they can increase their annuity by bringing forward part of their clearfell profits.
● Professional management for the life of the crop. Coillte establish, maintain and market the crop for the full rotation.
● An annual meeting is held with the landowner.
● Partnership transfers to the farmer’s successor in the event of the death of the farmer.
● Coillte implements Sustainable Forest Management principles. Forests managed under the Farm Partnership Scheme will benefit from certification. The company aims to provide independent certification for our customers ensuring that forests are managed to the highest agreed standards.
● Under current legislation all income from the Scheme is tax-free.
KEY FEATURES OF MANAGEMENT SCHEME
● Applies to existing semi-mature and mature plantations, from the current age of the crop up to and including the reforestation of the site following clearfell
● Under the scheme the farmer will have no financial outlay. Coillte will finance the various operations required to bring the crop to maturity. The cost of doing this will be recouped later from thinning revenues.
● Initially Coillte will prepare an inventory and management plan and this will form the basis of the management contract with Coillte.
● Coillte will be responsible for the full management of the crop including thinning, pruning, roading where necessary, maintenance, harvesting and sale of the crop. We will also re-establish the successor crop, if required under the agreement.
● The landowner will be responsible for fire prevention, trespass and fencing repairs, and may take on other operations as agreed.
● Coillte will require an agreed pre-determined percentage of the timber sales revenue in return for managing the crop.
● An annual business meeting will take place. At this meeting Coillte will provide an annual report outlining costs, operations and revenues to-date. Coillte and the landowner will agree the planned operations for the coming two to three years.
● Coillte has 80 years experience in harvesting and marketing timber. We have the harvesting infrastructure and experience to manage the diverse needs of plantation owners.
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