Falling forestry planting rates undermining long-term viability of Ireland’s timber sector

The industry is seeking a dramatic increase in afforestation by changing agricultural incentives – and to this end it is seeking the greater use of Irish wood in, for example, the construction of housing, according to Mark McAuley, director of Forest Industries Ireland.

A huge amount of forestry planted during a boom period in the 1980s and 1990s is now maturing and will greatly increase supply over the coming 10 years, he said.

But the reduction in the annual budget of the Government’s forestry programme from €110m to €91m was a major worry for the future health of the sector – because it suggested farmers are now turning away from commercial tree planting,

It’s easier for farmers to do other things. It’s a big decision to go into forestry

The budget reduction was largely accounted for by a fall in new forestry activity, which meant fewer forestry premiums having to be paid out to farmers.

“It is a clear sign that forestry activity is going in the wrong direction, and a barometer of the decline is in planting,” he said.

“The big expenditure in the forestry budget is in paying farmers over 20 years for planting trees. So effectively, you’ve got more farmers dropping out the back end of the scheme than you have new farmers coming in the front end of the scheme,” said McAuley.

Farmers in forestry face tight environmental rules that have placed restrictions on the sector, he said.

“Fundamentally, it is easier for farmers to do other things. On the other hand, it’s a big decision to go into forestry and the application process has become so complex.”

The industry is worried about the falling planting rate, as it undermines the long-term viability of Ireland’s timber sector, said McAuley.​