Premiums
Forestry has a major role to play in the high priority area of Rural Development. Significant financial incentives are provided to encourage afforestation and Climate Change mitigation. These are administered by Forest Service, Department of Agriculture, Fisheries and Food, Johnstown Castle Estate, Wexford.

IMPORTANT NOTICE (issued by Forest Service February 2010):
Tax Clearance Certificates are required for all forest owners in receipt of annual forestry premium payments exceeding €10,000. Tax clearance certificates should be forwarded to the Forest Service, Johnstown Castle Estate, Co. Wexford.

In the budget of 7 April, 2009 the Minister for Agriculture, Fisheries and Food reduced premium rates by 8%. Further changes were made in January, 2011.

Afforestation Premium rates (from 1 January 2011): (for new approvals)

FEPS is for REPS farmers with suitable land and area. €200 per hectare for five years is added by participation in the improved FEPS scheme introduced in 2008. The additional FEPS premium is €150 per hectare if the area planted is less than 8 hectares - the minimum is 5 hectares - unless the farm size is over 30 hectares in which case the FEPS minimum is 8 hectares.

Non farmers get €181 per hectare per annum for conifers (€121 per hectare on unenclosed land) and €195 for broadleaves, payable for fifteen years.

Premiums are tax exempted (except where the beneficiary may be subject to the high income tax provisions). Premiums are subject to the Income Levy from 1 January, 2009. See Income Levy.