Written answer
Forestry Sector
The Minister said forestry grant rates reflect direct costs and average overheads exceeding 40%, while State Aid rules prevent overcompensation; the 2022 COFORD report found labour costs would need to rise 46% to retain contractors and allowed 5.44 forester and office days per hectare. A 2026 review increased grants and supports.
464. Deputy Michael Fitzmaurice asked the Minister for Agriculture, Food and the Marine the gross profit margin before interest and tax used in calculating the afforestation grant rate for the forestry programme 2023 to 2027. [66618/26]
Comment on this
465. Deputy Michael Fitzmaurice asked the Minister for Agriculture, Food and the Marine the charge rate for approved foresters per day used in calculating the afforestation grant rate for the forestry programme 2023 to 2027. [66616/26]
Comment on this
466. Deputy Michael Fitzmaurice asked the Minister for Agriculture, Food and the Marine the breakdown of the fixed overheads used in calculating the afforestation grant rate for the Forestry Programme 2023 to 2027. [66615/26]
Comment on this
467. Deputy Michael Fitzmaurice asked the Minister for Agriculture, Food and the Marine In the COFORD report of 2022 , Economic Activity and employment levels in the Irish Forest Sector; what did the report state average labour cost would need to increase by if contractors were not to be lost to the construction or other sectors. [66613/26]
Comment on this
468. Deputy Michael Fitzmaurice asked the Minister for Agriculture, Food and the Marine In the COFORD report of 2022 , Economic Activity and employment levels in the Irish Forest Sector, for afforestation, the forester and office inputs in days, per hectare planted. [66612/26]
Comment on this
I propose to take Questions Nos. 464, 465, 466, 467 and 468 together.
The Forestry Programme 2023–2027 was designed to incentivise landowners to engage in tree planting, with grant rates reflecting the direct costs of establishing different forest types.
The grant rates in the table below reflect the overall direct costs of establishing a range of different types of forests.
Native Tree Area Scheme is paid at FT1 and FT2 rates. Premiums are paid over 10 years rather than 20 at a rate of €2,206 per ha annually for NTA1 and €2,284 per ha annually for NTA2
* Additional payment of €1,000 per ha will be paid to landowner on completion of planting
** Grant includes Trails, Seats & Signage Facilities and Derelict Site payment
*** Grant includes Facilities payment
The COFORD report, “Economic Activity and Employment Levels in the Irish Forest Sector” (2022), found that average labour costs would need to increase by 46% if contractors were not to be lost to construction or other sectors.
For afforestation applications, the report provided for 5.44 forester and office input days per hectare planted.
In calculating grant rates, the Department had regard to the COFORD report, direct operational costs and overheads averaging over 40%. The costs are indicative and can vary according to the operation, site, location, economies of scale and contractor or forester rates.
It is important to note that the Forestry Programme operates pursuant to State Aid approval. My Department, as the granting Authority in this instance, must ensure that any State Aid provided is proportionate and does not subsidise the costs of an activity or undertaking that would have incurred in any instance and must not compensate for the normal business risk of an economic activity.
Further, grant rates were considered during the Mid-Term Review of the Forestry Programme which was published in March 2026, providing increased grant rates and supports across key areas including fencing rates and allowances.
My Department remains committed to ensuring that the grant and premium packages in the Forestry Programme are formulated to optimise the incentivisation of tree planting and deliver on climate action targets as well as delivering economies of scale to the forest industry.