decision forestry or farm

alleyb

Looking for help , forestry to me represents the best profit for my farm but the farmer in my blood doesn't want to take this long term decision, I'm getting reps at the moment but my single farm patment is very little because although i'd every acre of my farm eligible for arable aid in the 3 reference years i was in grass selling hay and silage and fattening store lambs on the aftergrass.advice on a profitable enterprises would be welcome because the boys an teagasc tend to be negative and the alternative is forestry

speakswan

Hi,
You could always do half under forestry and farm the better half. That way at least you would have some guaranteed income coming with no work.

Just a thought

Casinoking

I'd steer clear of the forestry option if the land was any way decent at all. It's all fine and well getting your payment for 20 years or so, but after you harvest you're obliged to replant and there are no grants the second time around. The vast majority of anything you make will be gone in replanting costs and maintenance.

speakswan

Yeah valid points but one of the key thing to remember that it is a 35 - 40 year long project and everything will change, so even historical facts may not be valid in today's decision.

I see forestry as an easy safe bet and a good way to diversify your assets and income. The grants are tax free (except for income levy) and there is no capital gains tax or stamp duty on disposal.

parka

Don't forget you have to fence off your land (they do pay for some of it, but not all) and insure the plantation after four years (they do the first four). In the long run it didn't seem like a good idea for me.

parka

Another thing. You get paid for 20 years, but the plantation isn't removed until the 25th year, so there are 5 years of no payments.

Caoimhín

Casinoking wrote: »

The vast majority of anything you make will be gone in replanting costs and maintenance.

That is not true at all. Reforestation is much cheaper than afforestation and even at todays prices for sawlog, the replanting wouldn't make up more than 5% of the clearfell profit.

Caoimhín

parka wrote: »

Another thing. You get paid for 20 years, but the plantation isn't removed until the 25th year, so there are 5 years of no payments.

It depends on the tree species but, the shortest rotation trees (quickest growing) Sitka Spruce, are only ready for clearfelling at 35 years or so. There is some income from thinning every 4 - 5 years beginning at year 17.

I have found that the decision to plant land is usually influenced by personal circumstances.

parka

Caoimhín wrote: »

It depends on the tree species but, the shortest rotation trees (quickest growing) Sitka Spruce, are only ready for clearfelling at 35 years or so. There is some income from thinning every 4 - 5 years beginning at year 17.

I have found that the decision to plant land is usually influenced by personal circumstances.

Good to know, thanks