IFA Submission to Forestry Policy Review

IFA Submission to Forestry Policy Review

IFA Farm Forestry Section

Irish Farm Centre

Bluebell

Dublin 12

31st March 2010

1.Introduction

The Irish Farmers Associations thank the Forest Service for the invitation to make a submission to the Forest Policy Review.

The forest sector has a substantial opportunity to contribute too and develop in the transition towards a green, more sustainable economy. Irelands forest policy must proactively encourage the shift towards a green economy.

The central role farmers’ play in the development of forestry sector in Ireland must be reflected in forest policy. A coordinated forest policy that acts as a guiding framework, which takes into accounts the farm forestry sector’s characteristics and interests is required. A policy that acknowledges and rewards the many products and services, both timber and non-timber, that are provided by the sector.

Economic viability and long-term sustainability must be the cornerstone of Ireland’s forest policy.

1. Level of Afforestation

IFA support the Renewed Programme for Government target of 17% by 2030, however it is proposed that a new longer-term target should be set for 2050. The new target should be evaluated based on the increasing demands placed on the sector from the renewable energy and climate change policy targets.

To achieve the aforementioned targets the following need to be addressed:

-The comprehensive national GIS based Indicative Forestry Strategy must be completed. This should be used to provide a clear road map for achieving the afforestation targets, identify optimum areas for planting.

-A plan to open up lands, which are suitable for forestry but are currently excluded from planting on environmental grounds, needs to be agreed with the relevant Departments. IFA suggest the introduction of a grading system in these areas to categories the risk (if any) so that land can be afforested.

-The replanting obligation is a major deterrent for many farmers considering forestry as an alternative land use option. If the replanting obligation was removed and deforestation controlled via the felling licence it would have a very positive effect on the afforestation levels.

-Farmer confidence must be restored in the Afforestation Scheme. The Government must honour premium commitments and restore full premiums and the re-introduce the Forestry Environmental Protection Scheme, if there is any chance of achieving the targets.

2.1.Rural Development & Employment Generation

Forestry is already a significant source of employment in rural areas, however the potential of forest to generate sustainable long-term employment by way of environmental services, sequestration of carbon and carbon trading, production of fuel wood, sawmill etc. is substantial. IFA estimated that 2,500 sustainable rural based green collar jobs could be created in the forest energy supply chain per million green tonnes of wood produced, therefore the sector has the potential to create in excess of 7,500 new jobs by 2028.

IFA propose the introduction of a Forestry Employment Generation Programme to support the development of new timber and non-timber enterprises.

2.2.Funding of the Afforestation Programme

To achieve the Renewed Programme for Government target of 17% forest cover by 2030, an afforestation programme of 25,000 hectares per annum is required. The funding of the afforestation programme will require significant additional investment if this target is to be achieved. It is estimated that an afforestation budget of €250 million per annum.

Forestry: A Growth Industry report stated that investment in forestry by the Government showed a cost benefit ratio of 1.59, which compares favourably with other capital investments. The cost benefit ratio is greater as the analysis only considered afforestation and does not take into account the value of the down stream processing sector as well as the a wide range public goods & services.

IFA propose that the afforestation programme should continue to be funded directly from the Exchequer.

2.3.Public Goods & Services

Healthy forest ecosystems are ecological life-support systems. Forests provide a full suite of goods and services that are vital to human health and livelihood. Many of these goods and services are traditionally viewed as free benefits to society, or public goods, for example, wildlife habitat and diversity, watershed services, carbon storage, and scenic landscapes.

Lacking a formal market structure, these natural assets are traditionally absent from society’s balance sheet and their critical contributions are often overlooked in decision-making. Recognising forest ecosystems as natural assets with economic and social value can help promote conservation and more responsible decision-making.

IFA propose the introduction of an Ecosystem Services Payment to encourage broader thinking and collaboration to stimulate market-based conservation and stewardship.

1. Species Composition

It is essential that the afforestation programme, particularly the species composition be designed to compliment market demands. The demand for softwood timber is expected to increase significantly in the future, as a global shortage is forecast.

It is crucial that Irelands afforestation programme recognises the clear linkages and synergies between afforestation programme and forecasted market demands and does not unduly favour the planting of hardwoods.

IFA have serious concerns about the very poor quality of some of the broadleaf forests that have been established and propose that broadleaves are only planted on sites that can produce a commercial viable crop.

The policy should consider expanding the list of approved species to (i) exploit potential new markets and (ii) to protect against the potential impact of climate change. Research is needed to investigate the potential of other species in Ireland.

3.1.Indigenous Biodiversity and Tree Species

IFA propose that indigenous hedgerows and biodiversity areas are established or preserved to conserve the nature value of the forest and landscape. Hedgerows and biodiversity areas provide a wide range of valuable services. They include not only biodiversity services, but also regulating services such as pest control and flood control, cultural services such as landscape aesthetics and historical heritage,

1. Future Roundwood Supply & Demand

Ireland forest policy must prioritise wood mobilisation, particularly in the private sector. Farmers face significant challenges and opportunities to mobilise the private sector timber resource if the timber production forecast targets are to be achieved.

IFA propose the development of an integrated supply chain timber mobilisation programme, that supports:

-Improved management, coordination and planning;

-Adoption of silviculture techniques for small scale forestry;

-Strengthens infrastructure and logistics;

-Supports markets and marketing through improved organisation and transparency;

-Enhanced education and training of private forest owners; and

-Supports and mechanisms for financing;

4.1.National Bioenergy Targets

Ireland faces significant challenges to meet EU Renewable Energy Directive, which established mandatory national targets consistent with a 20% share of energy from renewable sources and a 10% share of energy from renewable sources in transport in energy consumption by 2020.

This equates to a biomass target of approximately 4.3 million tonnes per annum. As Irelands largest biomass resource this offers farmers significant opportunities to develop local markets for forest thinnings and on-farm biomass enterprises.

4.1.1.Integrated Biomass Mobilisation Scheme

There are significant gaps in the current biomass development programme that is impeding the mobilisation of the timber resource to meet the renewable energy targets. Farmer’s need additional support to mobilise wood and establish on farm energy businesses. IFA proposes the following supports mechanism be incorporated into forest policy:

-Biomass Drying & Storage Programme. Woodchip when harvested ranges from 50 to 60 per cent moisture and need to be dried to below 30% for safe storage and efficient combustion. Funding will be required for the establishment of facilities.

-Biomass Delivery Scheme. Biomass fuels are bulky and expensive to delivery. Specialised delivery vehicles such as tipping trailers, blowers etc. can significantly increase efficiency in the supply chain and reduce costs. Partial funding

-Supply Chain Development Programme. To support farmers to establish biomass supply chains for emerging heat market. IFA propose a three-year funding programme to facilitate the start up of regionally distributed biomass supply businesses.

-Business Training and Mentoring Programme designed for farmers.

4.2.Wood Manufacturing Demand

Forest policy must recognise that the wood products industry is a major source of year round employment in rural areas. The forest policy must encourage and facilitate a closer integration between forest owners, sawmills, manufacturers and markets through increased coordination and cooperation at the regional and national level.

Ensuring efficient flow of market information along the timber supply chain will support increased capacity and productivity. Insufficient cooperation between forest owner and wood manufacturers market partners and lack of suitable market structures or transparency will hinder wood mobilisation.

IFA propose that the Government support a full inventory of the private forest estate to facilitate the exchange of superior information so that the forest industry can better plan and manage timber mobilisation from the private forest sector.

4.3.Road Infrastructure

Adequate forest infrastructure is a crucial precondition for increased wood mobilisation. A sufficiently dense and efficient forest access network facilitates a well-functioning wood supply chain and can reduce costs and environmental impacts.

The current level of funding in the Forest Road Scheme is severely hampering the development of the sector and ensuring that timber production targets will not be achieved in the private sector. It is estimated that they is currently a roading deficit for in excess of 15,000 hectares.

IFA propose that the development of an internal forest road network in the private forest estate is prioritised in the new forest policy. Forest roads construction contributes directly to the economy and will generate much needed rural employment in forestry and related downstream industries.

1. Research, Development & Innovation

Research, development and innovation are vital to the expansion of forest and wood product-based industries in Ireland. The aim must be to provide greater evidence-based support for forestry practices, develop capacity in the private sector and encourage innovation in wood based timber products.

5.1.Research

IFA propose greater communication and integration with national, European and International forest research programmes to reduce unnecessary research duplication, in order to maximise the return from Irelands very limited research budget.

IFA suggest prioritising the following research areas:

-Reducing the environmental restrictions being placed on afforestation by providing evidence based research to show forestry overall positive contribution to the environment. It is estimated that 500,000 hectares of land capable of producing a commercially viable timber crop is currently restricted.

-Investigate the market opportunities offered by tree species currently not grant aided by the afforestation programme.

-Alternative silvicultural practices in small-scale forest management and their effects on forest production should be investigated to increase efficiency.

-Market based valuation of ecosystem services provided by Irish forests including recreation should be determined.

-Functioning of forest ecosystems and use of forest resources in changing climate, specifically examining climate change.

-Potential for the utilisation of the increasing timber resources in wood product markets.

5.2.Development

The development of the private forest sector must be the priority of any further forest policy. There is an urgent need to build capacity among forest owners and/or groups to facilitate cooperation, information exchange, access to wood markets, education, training and extension services, to empower and motivate proactive sustainable forest management to mobilise the private forest sector.

Cooperation between forest owners does not solve the private forest fragmentation problem, but it does improve viability and sustainability of the farm forestry sector.

IFA propose that the scheme would provide adequate start-up funding to develop an innovative and successful private forestry marketing groups. The scheme would be operational for 5-year, providing 100% funding in year one reducing each year to support the marketing groups develop to successful business model. The funding would be used to support the group to coordinate private forest owners locally and hire a multi-skilled manager to over development of the marketing group.

5.3.Innovation

Innovation must be central to Irelands forest policy, particularly in relation to development of value added wood products.

IFA propose that forest policy focus on developing new engineered wood products. The demand for engineered wood products has grown dramatically over the past ten years and is expected to continue with the imminent introduction of Green Timber Procurement Policy in the EU.

The manufacturing of engineered wood products must be encouraged and supported by the Government at all levels. Engineered wood products provide the optimum resource utilisation; as well as substantial job creation and export potential. Typically the industry consists of small and medium companies ideally suited to Ireland.

1. Standards, Guidelines & Monitoring

The Irish forest sector is one of the most regulated sectors in Europe. The current Code of Best Forest Practice and the suite of Environmental Guidelines ensure that Irish forests are established and managed according the available best practice. While the new Freshwater Pearl Mussel Requirements place supplementary restrictions on forest owners in designated areas.

It is crucial to the sustainable development of the sector that forest owners are financially rewarded when standards or guidelines are introduced beyond the normative, which reduce the commerciality of the forest, as is the case with the Freshwater Pearl Mussel. IFA suggests that future forest policy recognises ecosystem services provided by the forest and issues compensation to forest owners.

IFA recommends increased monitoring in newly established forests and suggest that the following conditions are introduced to satisfy payment of the second instalment of the establishment grant:

-A detailed long-term management plan is provided to the forest owner;

-The payment of the second instalment is delayed until year 8.

IFA consider that these proposals should be enshrined in forest policy to protect the State and maximise return on investment.

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