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Why
Forestry?
Ireland
has the climate - and land
Ireland has the best climate in Europe for tree production; the combination
of climate, soils (marginal agricultural land) and tree species achieves
softwood volume production three to five times higher than elsewhere.
Good quality hardwoods can be grown in Ireland on better soils.
Europe
needs timber
Unlike grass based products such as milk, the European Union produces
only half of its present annual timber requirements. The EU has a strategy
to promote forestry, including substantial premiums for farmers. The UK,
Ireland's main export market, imports over 80% of its wood requirement.
While the UK may be 50% self sufficient in sawn softwood by 2025, its
production is projected to fall significantly again over the following
25 years. A focused, quality driven strategy in Ireland can exploit that
opportunity, building on the expanding Irish timber-processing sector.
Quality
provides sawn wood- it provides profit
Taking the long view, wood production will be the main source of forest
income, although other sources must be nurtured. For growers to get the
greatest return on their investment it is essential to maximise production
of sawn timber for use in higher value markets. This requires focus, planning
and active management. WOODLAND
aims to deliver those qualities for you. These are also national issues
and we continue to promote the commercial view- quality timber is the
best possible support for sustained forestry management.
Forestry
is a prudent investment
Forestry
is basically an investment in growing wood as a commodity. Growth performance
is predictable. Economic forces do not affect growth. The intrinsic merits
of the investment are well recognised by institutions such as pension
funds and private investors who are already major investors in Irish forestry,
as well as by the thousands for farmers who have planted lands in recent
years. You can avail of those same benefits through the professional management
of WOODLAND
and take advantage of improved premium income- the premium income is higher
for farmers than for any other landowner.
The
costs are low
The financial return
from forestry investment depends on costs, revenues and their timing.
As a result of substantial grants, there is usually little or no outlay
required for investing in forestry for those who already own land.
The
returns are superior
Forestry is a sound, high yielding, low risk investment. Many institutions,
private individuals and farmers invested in forestry during the 1990s.
The returns for forestry and the risk return ratios (decent rate of return
and low risk) are hard to equal - and its a lot easier to go look at your
forest than an apartment somewhere in mainland Europe. For farmers, these
factors, together with the highest premium levels, payable for twenty
years, make it a sound investment. Sound silvicultural management techniques
can further improve returns.
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Forestry
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Forestry
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