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27
Many farmers like Michael and Pat have the capacity
and opportunity to diversify their on-farm enterprises
and to provide additional income streams and optimise
their marginal land areas. Table 1 illustrates the projected
revenue stream from a parcel of such land (Yield
Class 24) planted mainly with spruce (including 15%
broadleaves and 15% area for biodiversity enhancement)
in 2019 with a 34 year rotation. Premiums are payable
over 15 years. The Basic Payment is not taken into
account since it can vary from farm to farm. Thinning
cycles are estimated to be every 5 years. For comparative
purposes, both long term historic average timber prices
and 2018 prices are used in this analysis to provide
indicative revenue figures.
Through whole-farm planning, forests can be integrated
into existing farms and provide options on appropriate
land parcels. In this way, forest premiums, combined
with retained basic payments and income tax-free
timber returns can provide additional income streams
on the farm. These additional income streams, including
premiums and timber returns can be put to a range
of uses according to the age and farming status of
forest owners. These uses can potentially cover future
education costs, mortgage repayments, additional
leasing or acquisition of agricultural land, investment in
farm sustainability or as simply as secure, high yielding
pension pot.
JUNE 2019
www.irishfarmersmonthly.com
Forestry Focus
JUNE 2019
Forestry Focus
www.irishfarmersmonthly.com