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Coillte Farm Forestry Partnership

The Farm Forestry Partnership introduced by Coillte in 1993 has been successful. To date 292 farmers have joined the scheme and planted over 6,100ha.

The scheme works as follows: At all times the farmer continues to own the land. Coillte plants the land and collects the grant to cover this cost. The farmer receives the annual premium for 20 years (see the news pages for the latest figures). Coillte and the farmer share all of the income received from timber sold during the cropÕs lifetime - from thinning to clearfell.

Under the terms of CoillteÕs basic scheme a farmer receives an up-front payment of £500 per hectare. This payment is followed by an annual payment of the relevant premium for the first 20 years. After the premiums finish the farmer then receives an annual payment from Coillte based on the revenue received from thinnings for a further 20 years at which time the crop should be ready for final felling. Under the scheme, the farmer also receives 55% of the revenue from the final timber crop. Coillte says this basic scheme has attracted a lot of interest since it was introduced.

In response to suggestions from farmers and their advisers, Coillte has added two new options to its Farm Forestry Partnership.

The second option is designed to meet the needs of older farmers who want to receive payment early in the partnership. Under this option the farmer will receive most of the income from future timber sales as an annual payment over 20 years and a reduced final payment when the forest is clearfelled. The annual payment that the farmer will receive over the first 20 years is in addition to the premium.

The third option is for younger farmers who are interested in earning an annual income from their forestry investment over the longer term. The farmer collects the premia for the first 20 years. He then has the option of a higher annual income than the basic scheme over the second 20 year period by bringing forward most of the revenue from thinning and clear felling the final crop. He will receive a reduced lump sum when the crop is eventually clearfelled.

FIGURES
For all options of the scheme the farmer receives an up-front payment of £500 per hectare. For option 1 he receives £328 (premium) per hectare each year for 20 years. For the following 20 years he receives £131 per hectare (thinnings). At clearfelling he gets 55% of the income. For the second option he gets £404 per hectare per year for the first 20 years (£328 premium + £76 thinnings). At clearfelling he receives 20% of the income. For the final option he gets the £328 per hectare premium for years 1 to 20. He receives £320 per hectare for thinnings and a 20% income share at clearfelling.

In addition to the above schemes, Coillte provides a comprehensive range of forestry services - on a once off basis or as part of a longer contract. The company is also interested in purchasing land bordering its existing forests. Contact Coillte on (freephone) 1 800 200 728.

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..the voice of the Irish Timber Industry.