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Woodland and the Single Payment Scheme

Moat Hall, Newborough. (photographer Christopher Beech) Afforested land is not eligible for payment from the Single Payment System (SPS). However, in certain circumstances (as would apply if the National Forest Tender Scheme was used) afforested land can be used as set-aside providing; (1) the woodland was entered into the Woodland Grant Scheme and the Farm Woodland Premium Scheme; (2) the application to create woodland was approved after 28 June 1995 and; (3) the land is not put to any lucrative use (other than that allowed under SPS rules).

In England, outside the upland SDA, and unless exemptions apply, up to 8% of eligible (allowable arable) land can be entered into set-aside. The Farm Woodland Premium Scheme (FWPS) currently remains at £300/ha for 15 years for planting on arable land and £260/ha for 15 years for planting in improved grassland. If landowners want to ask specific questions regarding the implications of possible woodland creation and its relevance to MTR/SPS, contact the Defra Helpline on 0845 933 5577, or email . Further guidance and advice will be issued by Defra early in 2005.

Fact: Over ten years ago... In 1980 the average price of UK wheat was £105 per tonne, in 1990 £120 per tonne and in 2000 £80 per tonne. 2005 prices for bread and feed wheat are c. £90 per tonne and c. £85 per tonne respectively.

Planting by machine at St. Geore's Wood, near Yoxall. Tender Scheme 2005 IS OPEN!
The National Forest Company has announced that Round 11 of the National Forest Tender Scheme (TS) is open for applications. Applications must be received by noon on 31st March 2005. All applicants will be informed of the NFC's Board decision by 22 July 2005. This is a fast turn-around in order to help the landowner plan ahead. Many successful TS winners can (and do) complete their scheme and receive payment by December. The NFC has over £2 million to fund the successful schemes.

TenderScheme is even more flexible
The minimum size for each Tender Scheme application is now only 3 hectares (7.4 acres). In each scheme a minimum of half the area must be for new planting or natural regeneration (tree seedlings). This smaller minimum size (reduced from 5ha) is ideal for landowners who want to create smaller woodland and for those thinking about a first Tender Scheme. There is no maximum size threshold. Large schemes (usually in excess of 50ha) can be phased over two years.

Celebrating the first Decade 1995-2005
TEN YEARS AGO...the first Tender Scheme applications included proposals for Chapman’s Nursery (Rosliston), Catton Hall and Donisthorpe Colliery. These woodlands have evolved and grown. Chapman’s Nursery boasts an increasingly popular garden centre set amongst a thriving wood, Catton Hall is investing in a wood heat project whilst Donisthorpe Forest Park has helped transform Donisthorpe into a hugely desired location in the Forest.

Fact: In 2004/05 (Round 10), 17 Tender Scheme winners created 320 hectares of new woodland, planted in excess of 500,000 trees and shared over £2 million in grants. The schemes are spread throughout the Forest with 1 in Staffordshire, 5 in Derbyshire and 11 in Leicestershire. The smallest scheme is 5.2 hectares, the largest is just over 57 hectares.The National Forest Strategy (2004-2014) seeks to convert between 4,000-5,000ha for Forest creation. Over 75% of this will be on agricultural land.

NEW GRANTS available

Amongst the objectives of The National Forest are the stimulation of economic enterprises and the creation of jobs. Within this context the physical creation of the Forest means an ever-increasing wood resource for which a working, sustainable market and infrastructure will be needed.

There are grants available to help develop woodland related business in (and outside) The National Forest. The National Forest Company helped one local business (Rowan and Tree Woodland Services at Ravenstone) purchase a mobile bandsaw so that low grade timber can be processed into higher value products such as planks, beams and furniture materials. This is all work that will assist in the creation of woodland related businesses and new opportunities for markets for wood-based products.

Round 10 winners pictured with The Rt Hon John Gummer MP. (photographer Steve Baker) John Gummer MP Praises the Tender Scheme
Speaking at the award ceremony for winners in September 2004, The Rt. Hon John Gummer MP praised Tender Scheme winners for their achievements. He noted the vast scale of Forest creation and the fact that woodland cover over the 200 square miles of the Forest has more than doubled from under 6% to an impressive 15% plus.

"The figures are truly remarkable, much better than anything I might have imagined," commented Mr Gummer. "Ten years ago, we wanted to find a new way to create this Forest," he continued. "It had to be big; it had to be innovative, without the heavy hand of bureaucracy all over it; and it had to be here. It had to have variety and its own unique spirit through real and meaningful partnership. I wish you all another successful ten years of this great initiative."

Opportunities For New Woodland And Business Diversification
There is an opportunity for owners and farmers with land in parts of Lichfield, East Staffordshire, South Derbyshire, Hinckley and Bosworth, Charnwood and North-West Leicestershire to share in over £2 million of funding through the National Forest Tender Scheme.

"Falling agricultural margins and uncertainties due to CAP reform are placing strain on core business," says Charles Meynell, a Partner in the Stafford Office of Fisher German Chartered Surveyors. "Landowners and farmers are seeking practical solutions and Round 11 of the National Forest Tender Scheme will offer significant opportunity to assist reinvestment and/or restructuring as part of whole farm planning". The Tender Scheme can help to release capital value from land, providing an alternative to land sale. It is only available in The National Forest. The aim of the Tender Scheme is to create multi purpose woodland. Schemes can provide for a return from forestry from high value broadleaves, special niche species (cricket bat willow, walnut, cherry, etc), poplars or conifers. Trees are a long-term crop but, says Mr Meynell, "New woodland can create or add value from sporting, private or commercial use and screening to enhance the amenity of a residential property".

In addition to covering the costs of woodland creation, the Tender Scheme can release capital tax free for reinvestment or business restructuring to provide improved income and capital value. Over the first ten years of the National Forest Tender Scheme 162 schemes have provided nearly 3,000 hectares of land used for new woodland, nature conservation or other forest purposes. This has assisted the National Forest Company to increase tree cover through the 200 square mile multi purpose forest from 6% to over 15%

Throughout this period a number of landowners and farmers have prepared bids and implemented schemes that have enabled them to realise value from their land to reinvest into profitable enterprises.

"Now that the regulation of MTR is becoming clearer, it will be possible to enter land into the Tender Scheme and concentrate the historic element of the entitlement upon other land farmed at May 2005". Says Mr Meynell "We are actively encouraging farmers to look at their whole farm business and their assets to see how they can use the Tender Scheme to manage the change in their business structure and realise capital for reinvestment to maintain or improve their income or nett worth".

For those owners and farmers who may not wish to retain their land, the National Forest Company is active in the local land market. In conjunction with partners, the Company is seeking to purchase land in blocks of between 5 – 50 hectares and presently has funds available to complete additional land purchases during the current financial year.

"By the creation of new woodland through the Tender Scheme or land purchase, the Company is directly aiding landowners and farmers in The National Forest area to restructure their business" added

Mr Meynell.