PLA NT I N G T HE I DE A Looking at the income potential to planting trees
The perception of woodland
Grant schemes and funding are not new to the world of
planting schemes among many
woodland, however there is the constant arrival of new
is that they are a long-term
In addition, alternative revenue streams beyond that of
opportunities, be they amenity or commercial schemes.
investment. This is understandable
traditional timber production help provide a return on
given that conifer species can
horizon.
take approximately 50 years to
Broadly speaking the financial viability of woodland
mature and broadleaf species, in most cases, over 100 years after initial planting. However,
investment sooner than the traditional 50 to 100 years
planting in England is dependent on either grant scheme funding, or commercial revenues streams. The world of grant schemes is ever evolving. However, there are a few important points to consider when looking for suitable grant schemes:
there is more income potential to planting than just the traditional
LOCATION
timber income streams.
Most woodland schemes are available nationally.
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However, some, such as The Woodland Trust’s
and evapotranspiration. Benefits have also been
Northern Forest, are more regionally based. It is worth
identified in improved water quality through
conducting proper research into the local and national
reduced nitrogen and silt reaching the water
schemes available to ensure funding opportunities are
courses in wet conditions.
maximised and the planting capitalises on your local
Woodland for Water provides the same grant
environment.
funding as the Woodland Creation Scheme under Countryside Stewardship, however, has a minimum size of 1 hectare allowing planting to be
SIZE It is important to assess the size of the area you wish to plant as the majority of planting schemes have a minimum eligible area (normally approximately 3 hectares, such as Natural England’s Woodland Creation scheme). The Woodland Trust’s MOREwoods Scheme, however, offers planting on sites as small as 0.5 hectares, helping to ensure planting can be focused and targeted. Whereas, the Woodland Creation Planning Grant has a minimum eligible area of 5 hectares. Alongside the minimum eligible area, most grant schemes also have a minimum parcel size allowing for greater flexibility in the areas planted.
focused and flexible. •
If considering commercial woodland, then often a larger scheme is of benefit. This helps provide increased access to the timber markets, but also a greater quantity of timber can help reduce the costs of felling and restocking operations through economies of scale. In addition, having a scheme that is capable of supporting different species to a commercial scale can reduce risks from market forces. A woodland of varying species can prevent entire timber stocks being lost through disease and infestation such as phytophthora in Larch. The Woodland Creation Planning Grant is designed to assist in the planning stages for woodland
OBJECTIVES
planting that benefits the forestry sector through long term timber production.
The motivation behind your planting can often determine the most suitable grants available. Take three examples below: •
A consortium of 9 small farms, known as Pontbren, in Wales, have combined together to conduct landscape scale change to achieve the maximum benefits from woodland planting. The planting is based around the creation of small woodland parcels and shelter belts. The research shows that this planting can increase farming output by 20%. The improvements are due to improved soil structure, and nutrient uptake increasing the quality of the grass crop. As well as planting helping to deliver a varied diet and provide shelter for livestock. Therefore, if your motivation is for the planting to co-exist alongside, and improve, your day-today farming business then often smaller parcels, through the Woodland Trusts MOREwoods can offer greater benefit.
•
The Woodland for Water is a targeted scheme for woodland creation around watercourses. The planting of small riparian woodland parcels has been shown to offer local and downstream flood risk benefits, through improved soil structure
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Woodland planting offers farms the opportunity to diversify revenue streams. However, the timber market is not the only revenue stream of woodland.
woodland planters with assistance to maximise both the timber production and carbon sequestration of the planting. In addition, there are government backed funds to help in the early planning process to assist in improving the environmental benefits of woodland planting, and therefore return on investment.
Considering the type of revenue stream that would complement the existing farming business is an
RECREATION & DIVERSIFICATION
important part of the puzzle in determining what type of planting suits you and therefore the funding scheme
There are grant schemes available that offer larger
most suitable. There are three main revenue streams
capital payments per hectare where long term public
that planting can generate:
access can be guaranteed. In addition, associated opportunities such as camping, walking, cycling and education, can create income through supporting
TIMBER SALES
diversified businesses such as a farm shop or café.
The timber market is currently buoyant thanks to
access of any kind, including footpaths and bridleways,
an increased demand; with softwood sawlog prices
that once trees have reached maturity, tree surveys
currently reaching a peak of approximately £63.50
are conducted annually or biennially to ensure public
per cubic meter. As context, one hectare of conifer
safety.
It is important, where woodland planting has public
woodland, over a 50-year lifespan, could reach up to 400 cubic meters, resulting in a potential timber value of over £25,400. Further, financial advisers are estimating a rise in demand for timber of 3.1% year on year for the next three decades, helping to sustain a strong supply and demand curve for woodland investors and woodland planters.
CARBON The rise in social responsibility is resulting in private companies looking to offset their carbon emissions, consequentially, the price of Woodland Carbon Units, has seen a huge rise. Woodland Carbon Units (equating to one Unit per tonne of sequestered carbon), sold from Woodland Carbon Code verified planting schemes, have seen an 8% rise in price in the last year alone, reaching a current price of £28 per Unit. Depending upon the species mix and location, there is an average carbon sequestration potential of approximately 450 tonnes per hectare over a 100-year period. Subject to reaching the necessary registrations and verifications, woodland planting of any size can be approved through the Woodland Carbon Code to sell Units, either through private auctions or through the Woodland Carbon Guarantee Fund. It is important to ensure that the grant scheme used does not prevent verification within the Code. Nonetheless, the Woodland Creation Planning Grant provides
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So how do you know whether woodland planting is right for you and what type of woodland planting scheme is most appropriate and will enable you to maximise grant funding and revenue potential? The flowchart overleaf takes you step by step through this decision process to ensure the best woodland planting scheme to suit your needs.
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PLANNING STAGES
FORESTRY & WOODLAND
No
0-2ha
How big is the proposed woodland creation?
2ha+
WCPG
No EIA screening required
EIA screening required
PLANTING STAGES
Are you applying fo
Woodland Creation Plannin
Start planting
FURTHER FUNDING
Want to sell carbon?
Want a guarantee on carbon price? No
WM
Yes
Woodland Managem
WCC
WCaG
Woodland Carbon Code
Woodland Carbon Guarantee Fund
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F U N D I N G F LO W C H A RT
Yes
or Funding?
5ha+
How big is the proposed woodland creation?
0-3ha
3ha+
Yes
ng Grant
1ha+
Is the woodland creation near water?
WCG
W4W
Woodland Creation Grant
Woodland for Water
No 0.5ha+
MOREwoods
WD1 Woodland Creation Maintenance Payment
Yes
MPG
ment Planning Grant
Want to manage your woodland? 3ha+
Want to improve your woodland? Yes
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Are the trees diseased? Yes
WD2
WTH
Woodland Improvement
Woodland Tree Health
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WOODLAND PL ANTING If you would like to have a discussion around the best woodland planting opportunities for your particular circumstances, please contact:
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PETER KNOX MRICS SURVEYOR
0191 303 9546 pck@gscgrays.co.uk
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