Woodland Planting Guide: Planting the idea

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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