The European Commission has approved Ireland's new €1.3 billion forestry programme after months of consideration and negotiations with the Government.
The 2023-2027 forestry programme was announced late last year by the then taoiseach Micheál Martin and Minister of State with Responsibility for Forestry Senator Pippa Hackett, but remained inoperational pending EU Commission approval under State aid rules.
The new programme will see farmers benefitting from increased planting grants and the extension of annual premium payments from 15 to 20 years. Non-farmers will get premia for 15 years.
The delay in approving the new scheme meant this year's planting season for trees was missed, which led to much criticism from the nursery and forestry sector.
The Government aims to get forest cover in the country up to 18% from the existing 11% by planting 8,000 hectares of new forest every year.
In recent years, however, less than 2,000 hectares per annum were established and in 2023 to date, only a few hundred hectares were planted.
Minster of State Hackett has welcomed the commission decision, saying that it is a "hugely significant milestone in our longer vision out to 2050 to increase our forest cover as a critical part of the State's Climate Action Plan".
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The minister said it is the best-funded, most environmentally friendly forestry programme in the history of the State.
"It has been designed so that planting trees can deliver for farm incomes, for climate, for biodiversity for water quality - and for the production of high quality timber for use in our homes and other buildings of the future," she said.
Reacting to news of the forestry programme approval, the Irish Farmers' Association said the funding is significant, but the way the programme is constructed will put many farmers off.
Jason Fleming, the IFA's forestry chair, said that farmers will be required to reduce their productive area by 32%, for areas of biodiversity enhancement and broadleaves, with only a 20-year premium, despite the loss of timber earnings along with the ecosystem services being provided.
Forestry Industry Ireland has welcomed the approval of the programme.
"The deal has been far too long coming and has undermined afforestation in 2023," said Mark McCawley, head of Forest Industry Ireland.
"Now it is critically important the Department of Agriculture quickly issues licenses to plant under the new programme."