All major institutional investment funds “must be barred” from claiming increased forest grants and premium rates under the 2023-2027 forest program, a private forest group has warned.
Although SEEFA says the government’s proposed $1.3bn cash injection will attract institutional investors like farmers.”
There is concern that state-owned forest companies could set up “joint ventures” with outside commercial investors to collect the premiums indirectly — a move that private forest companies fear would “overheat the market” if they didn’t find new land to plant would buy.
Speaking to the Farming Independent after submitting a submission to the Department of Agriculture on recommendations for the next scheme, SEEFA Chair Teige Ryan, who represents over 80 per cent of Ireland’s private forest companies, said: “The forest premium increases are very welcome, particularly for Farmers and farming families and will hopefully get our farmers back into forestry.
“But SEEFA strongly disagrees with the forest grants and premium rates being available to institutional investors. The impact this will have on rural communities will drive another wedge between rural communities and forestry and will constitute nothing short of a national scandal.
“Such investors ultimately want to invest in forestry that will provide a return on timber in 25 to 30 years, but from an afforestation perspective, there will be a reversal when they get in.”
In the submission, SEEFA also calls on the ministry to earmark some proposed new funds, subject to state aid approval, to support existing forest owners affected by ash dieback.
“Ultimately, the government has now been given a €1.3 billion war chest to sort through the forest sector and meet targets, but we firmly believe this money should provide ample support to support farmers who are under suffer from the diseased ash dieback.
“Funds should be used to offer farmers premiums for replacement crops if they take out dead or dying ash, that’s the least farmers deserve,” Mr Ryan said.
Earlier this month Agriculture Secretary Charlie McConalogue announced the government’s plans for major investments in Irish forestry, saying: “We are approaching a new and exciting period for forestry in Ireland. The new forest program will drive a new and brighter future for forestry, for farmers and for our climate.”
https://www.independent.ie/business/farming/forestry-enviro/forestry/large-scale-investors-must-be-excluded-from-increased-forestry-premiums-42151197.html Large investors must be “excluded” from increased forest premiums
