Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I thank Deputy Kenny for this question. My colleague, the Minister of State, Deputy Doyle, is unavoidably absent today. The current forestry programme does not differentiate between a farmer and non-farmer but targets funding at all landowners who wish to convert lands to forestry. It is important to note that the non-farmer category also includes recently retired farmers and the family members of existing farmers. I am satisfied that the vast bulk of the grants and premiums paid under our forestry schemes are paid to, and remain in, rural Ireland.

Reinstating the farmer-non-farmer forest premium differential is not an option being considered by the Department. Therefore the Forestry Programme 2014-2020 will continue to pay the same premium to all landowners to ensure that the maximum amount of land is available for afforestation.

With regard to land prices, the value of land is governed by the laws of supply and demand, and for those selling land, this is a positive development. There are many reasons lands are put up for sale and there are also regional variations in terms of demand, supply and quality which influence the final price paid for land. Forestry may be one of many factors which can influence movements in land prices. According to my Department’s own analysis, returns from forestry, while attractive for landowners, are not such as to drive excessive land prices.

From an investment perspective, investors cannot afford to pay too much for bare forestry land given the returns available, and this should act as a natural brake for this type of investment. For farmers, forestry offers a viable alternative enterprise which allows them to diversify their income stream towards the more stable timber market and for this reason the supports offered by the State are very much welcomed.

My Department is currently undertaking a mid-term review of the forestry programme 2014–2020, under which there will be proposals to make further improvements to the forestry schemes. These improvements are aimed at encouraging farmers to see forestry as part of the farming enterprise as opposed to being an alternative to farming. I expect to be making a further announcement on this review and its recommendations in the near future.

See this speech in context