Conditions for timber production in Ireland are excellent. Ideal soil conditions, high rainfall, a mild climate coupled with a low incidence of environmental pollution combine to give us the highest growth rates for forests in Europe.

Investors can purchase both existing forestry plantations and lands suitable for afforestation.  Forestry Services ltd. source both types for investors who can then avail of the afforestation grant and premium scheme and forest road grant administered by the Forest Service of the Department of Agriculture.  The investor remains 100% owner of both the land and the crop with management provided by Forestry Services ltd.

The two most important financial incentives for forestry in Ireland are the Afforestation grant scheme and the forestry premium scheme. These schemes were introduced under EU council regulation 2080/92 and support the afforestation of agricultural land.   The Tax-Free status attached to forestry in Ireland is also a significant incentive towards investment.

• Tax-Free forestry premium payable for 20 years 
• Additional F.E.P.S premium payable on forestry planted on R.E.P.S farms 
• Afforestation grants cover full costs of planting, Free forest establishment 
• Plant forests and retain full single farm payment 
• Landowner remains 100% owner of both the land and the crop 
• Attractive grants for forest roads, pruning and shaping 
• Tax efficient regarding inheritance 
• Tax-Free status of timber sales 

Ireland can be proud of the modern sawmilling and panel board industry now established which competes with the best in the world.  This existing market is being underpinned by an increasing demand for biomass from the renewable energy sector.  This sector is being driven by Government policy with the following targets:

• 20% reduction in GHG emissions by 2020
• Overall 44% of electrical consumption from renewables by 2020
• 12% renewable heat by 2020 (5% by 2010)  Currently 3.8%.
• 30% co-firing with biomass at the 3 peat power plants by 2015
• 800 MW of CHP by 2020
• 10 % transport bio-fuels by 2020
• The target for Ireland in the European renewable energy directive (2009/28/EC) is 16% share of renewable energy in the final consumption by 2020.  The share in 2008 was 4.5%.

The most recent COFORD timber forecast for the Island of Ireland produced the following conclusions (Put in Coford Graphs)

• All Ireland supply of timber is forecast to increase from 3.8 million M3 at present to 4.7 million M3 by 2020 and 6.5 million M3 by 2028.  This increase in supply will come from the private sector.
• Demand by 2020 is forecast at 6.3 million M3 made up of conventional demand of 3.6 million M3 and 2.7 million M3 for biomass.
• Therefore the roundwood supply demand deficit by 2020 is forecasted at almost 2 million M3 with demand far outstripping supply.

To view current Irish timber price trends click here

Below are the projected returns from a well managed Sitka spruce cropPrivate owners will niche sell in good markets particularly at clearfelling

Current timber prices from a  well managed high yielding Sitka spruce crop.

(Net return per ha from harvesting)

Forestry Services ltd. provide quality independent advise on forestry investments and provide for future management based on advise given.

To get further details and potential returns on investing in forestry in Ireland or on lands and forests currently available contact us here

Forestry Services Ltd. Experience, reliability and delivery in the forestry business for over 25 years.