There is still time to apply for Environmental Farming Scheme

The initial application period for the new Environmental Farming Scheme (EFS) ends next Friday, March 31st.
John Hetherington, Managing Director, Premier WoodlandsJohn Hetherington, Managing Director, Premier Woodlands
John Hetherington, Managing Director, Premier Woodlands

And the indications are that uptake levels for the stand alone option of establishing a native woodland have been quite disappointing.

However, this may change over the coming days.

The coming weeks will allow DAERA officials to work through the applications that have been improved. But, already, there are a number of grey areas apparent which the department will have to address. One of these is the issue of which tree species can be planted out within the new woodland. My understanding is that DAERA advisors will have the final say in this matter, unfortunately these people are not qualified professional foresters, plus they have no experience in determining whether or not a woodland would be commercial in nature from the point of view of HMRC.

Forest Service personnel with private sector woodland experience should be making the site visits and determining which tree species can be planted out under EFS. However, we understand they have all been transferred to other duties.

Landowners will want to know from the outset if the woodland they establish under the new scheme has commercial value. If this is the case, then their plantation becomes eligible for all the accompanying tax reliefs. Moreover, afforested land that has not been deemed to be commercial, would then not qualify for the purposes of agricultural roll over tax relief and other eligible reliefs.

HMRC are now taking a specific interest in woodland areas to determine if they are commercial in nature, at such times as its ownership changes hands. In my own case, acting as a professional forester, I am regularly asked by landowners or their accountants to provide the evidence to HMRC to make a determination on this matter, to date with 100% success.

Premier Woodlands will be acting as an official agent on behalf of numerous landowners submitting applications for the Environmental Farming Scheme. No detailed plan of the new woodland area under consideration is required as part of the application process. This will be determined by the department advisors, hopefully in consultation with individual landowners or their agents. However, I will be making it clear to clients from the outset as to whether or not the final tree species suggested could be described as commercial in nature.

One way to resolve this potential bone of contention is for the department to allow professional foresters, acting on landowners behalf, to have a say in the mix of tree species included within the new woodland.

Planting under EFS will not get underway until next year. The scheme has drawn down c.£100m of funding for a five year period. It is to be hoped that DAERA will actively promote its woodland development options during the period ahead.

For further information, contact Premier Woodlands on (028) 7963 4236.

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