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5.3.2.2 Measures targeting the sustainable use of forestry land
5.3.2.2.1 and 5.3.2.2.3 First Afforestation of Agricultural and Non-agriculturalLand
WOODLAND CREATION (Land Managers Options and Rural Priorities)

Articles 36(b)(i) and 36(b)(iii)

Measure Code (221 and 223)

Rationale for Intervention

By European standards of land cover, Scotland has a very low proportion of woodland. Afforestation of both agricultural land and non-agricultural land is identified within the Scottish Forestry Strategy 2006 as a mechanism for delivering wide-ranging economic, social and environmental priorities. Appropriate woodland creation can increase carbon sequestration to support the Climate Change Programme, provide opportunities for public access (and associated health and community benefits), contribute to Habitat Action Plan targets, diversify farmed landscapes and improve quality of life by improving derelict, underused and neglected land.

New small-scale woodland planting, particularly in the farming and crofting landscapes, recognised as providing a wide range of environmental and amenity benefits, as well as supporting farm diversification and adding value to the existing woodland resource. However, the costs of establishing and maintaining small woods are proportionally high and there has been very little expansion without public support at an appropriate level.

The Strategy includes targets for the forestry sector in Scotland to deliver annual carbon savings of 0.6 million tonnes of carbon (MtC) by 2010, 0.8 MtC by 2015 and 1.0 MtC by 2020. Overall, the Strategy would like to see Scotland's woodlands increase from 17.1% of the land area to about 25%.

Objectives

The aim of the measure is to support the creation of a broad range of woodland types that are appropriate in their design and location to deliver the afforestation objectives and priorities contained within in the Scottish Forestry Strategy 2006. These includes small woods up to one hectare in size, primarily in the farming and crofting landscapes, and woods over one hectare in size. Both scales of woodland creation will provide a range of environmental and social benefits. The use of both conifer and broadleaved species in the Scottish context are widely acknowledged to be appropriate and positive in securing the environmental enhancements which flow from the creation of well designed woodland.

The long term nature of woodland creation means that adaption to climate change is an important aspect of design especially with respect to species choice. The options offered for this Measure allow the use of a range of planting models which will ensure that the most appropriate woodland design is applied at a project level. In Scotland all woodland creation projects with the potential for significant environmental impact fall within the scope of the EIA Regulation, as well as being the subject of consultation with public agencies responsible for environmental protection.

This measure contains three options. Option (a) is for creation of woods up to one hectare in size, option (b) is a tariff-based scheme for woods over one hectare and/or for woods of various types, and option (c) is a tender scheme targeted at specific regional or thematic priorities such as climate change mitigation.

Scope and actions

Option A - Small-Scale Woodland Creation ( Land Managers Options).

The measure requires the beneficiary to establish and maintain new woods that conform to the following criteria:

• the wood must be in the size range of 0.1-1.0 hectares and planted with native species only;
• design of the woods must follow the guidance in 'Creation of Small Woodlands on Farms' published by the Forestry Commission in 2006 and other detailed published guidance on best practice;
• conifers should be established at a density of 2,500 trees/ha and broadleaves established at a density of 1,100 trees/ha and these should be maintained as such for 10 years;
• the trees must be protected from livestock, rabbits and damage from deer;
• the planting and maintenance must follow sound silvicultural practice and resolve any site problems; and,
• appropriate consultation with neighbours and interested bodies should be carried out prior to planting.

Beneficiaries

Owners and occupiers of agricultural land and/or non-agricultural land (be they "farmers or associations thereof" or "of any other private law person").

Aid intensity

Support will be given to the cost of establishing the woodland on the basis of a 70% contribution to that cost. Under this option no payment is made in respect of annual maintenance costs or income forgone. The cost of establishing such woodland is based on a 'model' cost, which has been derived using standard costs for each of the operations required for establishment. This model recognises the additional planting costs incurred with the establishment of small woodland areas. Both the standard costs and the model have been subject to examination for its adequacy and accuracy by representatives of the Institute of Chartered Foresters, a body of expertise that is functionally independent from the compilers. The payment rate will be €3,650/ha. As a single payment made after planting and tree protection has been completed

Under this option planting on agricultural land will not be eligible for any payments to cover the loss of income resulting from the afforestation.

Option (b) - Woodland creation (Rural Priorities)

Scope and actions

The measure requires the beneficiary to establish and maintain new woods that are designed to conform to one or more of the following woodland types, each of which has different eligibility criteria:

1. Productive conifer (low cost) woodland:

• Land and design appropriate to timber production
• 85% predominantly spruce, 5% broadleaves, 10% open ground
• Minimum area 5 ha
• Minimum stocking density: spruce 2,500 trees/ha, broadleaves 1,100 trees/ha

2. Productive conifer (high cost) woodland:

• Land and design appropriate to timber production
• 85% other conifer e.g.SP, DF Larch etc, 5% broadleaves, 10% open ground
• Minimum area 5 ha
• Minimum stocking density: SP 3,000 trees/ha, DF & Larch 2,000 trees/ha, broadleaves 1,100 trees/ha

3. Productive broadleaved woodland:

• Land and design appropriate to timber production
• 85% productive broadleaves e.g. Oak, Be, Syc, Ash etc, 5% non-productive broadleaves, 10% open ground
• Minimum area 2 ha
• Minimum stocking density: Oak, Be 3,100 trees/ha, Syc, Ash etc 2,500 trees/ha non-productive broadleaves 1,100 trees/ha

4. Native & riparian woodland (planting):

• Contributing to native woodland strategies and/or native woodland habitat networks
• 75% native species, 25% open ground
• Minimum area 0.25 ha
• Minimum stocking density 1,600 trees/ha

5. Native & riparian woodland (natural regeneration):

• Contributing to native woodland strategies and/or native woodland habitat networks
• 75% native species, 25% open ground
• Minimum area 0.25 ha
• Minimum stocking density 1,600 trees/ha

6. Mixed woodland:

• Small scale planting of areas predominantly in the farming and crofting landscape.
• 80% mixed conifer/broadleaves, 20% open ground
• Minimum area 0.25 ha
• Minimum stocking density: conifers 2,500 trees/ha, broadleaves 1,600 trees/ha

Proposals will be assessed against both national and regional priorities, with geographical targeting based on regional Indicative Forestry Strategies, regional Woodland Strategies and proposed Forest Habitats Networks etc. These regional strategies are independently produced by a partnership of regional stakeholders and the process involves consultation with a wide range of environmental and social interests as well as public consultation.

All planting proposals will need to comply with the requirements of the UK Forestry Standard.

Proposals for afforestation are also subject to statutory consultation and the requirements of the Environment Impact Assessment (Forestry) (Scotland) Regulations 1999 (Council Directive 85/337/ ECC as amended by Council Directive 97/11/ EC).

Beneficiaries

Owners and occupiers of agricultural land and/or non-agricultural land (be they "farmers or associations thereof" or "of any other private law person"). Public bodies are not eligible to receive payments for annual maintenance and income forgone.

Aid intensity

Agricultural Land

Support will be given to the establishment cost of afforestation on the basis of a 70% contribution to the cost of planting. The cost of planting varies with each of the woodland types and therefore a separate 'model' cost has been derived using standard costs for each of the operations required in establishment. Both the standard costs and the models have been subject to examination for their adequacy and accuracy by representatives of the Institute of Chartered Foresters, a body of expertise that is functionally independent from the compilers.

Support will be given to the cost of the annual maintenance of the afforestation, covering a period of 5 years, on the basis of 70% of the maintenance costs. The cost of maintenance varies with each of the woodland types and therefore a separate 'model' cost has been derived using standard costs for each of the operations required in maintenance. Both the standard costs and the models have been subject to examination for their adequacy and accuracy by representatives of the Institute of Chartered Foresters, a body of expertise that is functionally independent from the compilers.

Support will be given to "farmers or associations thereof who worked the land before its afforestation or for any other natural persons or private-law bodies" in the form of an annual premium per hectare to cover the loss of income resulting from afforestation for a maximum period of 15 years. The duration of the annual payments will vary depending on the types of woodland that are planted. Payments will be made for 15 years for woodlands containing more than 50% broadleaves and 10 years for woodland comprising less than 50 % broadleaves. The rates of payment will also differentiate between the main types of agricultural land to be converted to woodland, broadly reflecting differences in income foregone from typical agricultural activity. Details of the payment rates and land categories are as set out below.

In seeking co-financing we will ensure that the relevant maximum ceilings in the Annex of Council Regulation 1698/2005 are respected. That is, co-financing will not be sought for any elements of annual payments in excess of the following:

• for farmers or associations thereof - €700 per hectare
• for any other natural persons or private-law bodies - €150 per hectare

Definition of Agricultural Land

Agricultural land means land used for horticulture, fruit growing, arable cropping, seed growing, dairy farming, livestock breeding and keeping, the use of the land as grazing land, meadowland, osier land, market gardens and nursery grounds or the use of woodland where that use is ancillary to the use of the land for other agricultural activities. Letting land to another person to carry out an agricultural activity, where the potential beneficiary retains some responsibility for the management of the land, for example letting land on a grazing licence or short term tenancy for grazing is also considered an agricultural activity. Keeping horses for recreation or sporting purposes and fish farming are not considered to be agricultural activities.

The land to be planted must have been in agricultural use for the three years prior to the application for Farmland Premium. Abandoned agricultural land will be land fitting the above description but which has not been in agricultural use more recently than the previous 3 years.

Definition of "farmer"

In accordance with the requirements of Article 31(3) of Regulation ( EC) No 1974/2006 a farmer is defined as meaning a person who devotes an essential part of there working time to agricultural activities and who derives at least 25% of their gross income from farming, taking account of all the land they farm in Scotland.

Non-agricultural land

Support will be given to only the establishment cost of afforestation on the basis of a 70% contribution to the cost of planting. The cost of planting varies with each of the woodland types and therefore a separate 'model' cost has been derived using standard costs for each of the operations required in establishment. Both the standard costs and the models have been subject to examination for their adequacy and accuracy by representatives of the Institute of Chartered Foresters, a body of expertise that is functionally independent from the compilers.

Summary of rates of support for Establishment and Maintenance

* Paid as a lump sum on completion of planting
** Paid annually over a period of 5 years. Trees must be satisfactorily 'established' within 10 years of planting. Only payable where planting has occurred on agricultural, or abandoned agricultural land. Not payable to public bodies.

Productive Woodland Types may receive an additional establishment premium that supports the additional costs of using genetically improved planting material. The categories and payment rates for these are set out below.

In addition to the above payments, support will be available for fencing at a payment rate of 70% of the standard costs of these operations, which are listed as capital items in Paragraph 5.3.2.1.6. This will be paid on completion of the fence erection and planting.

Where the standard costs used in each of the national 'models' can be shown to be inadequate because of quantifiably higher costs in clearly defined geographic areas e.g. new woodlands created in and around populated areas the additional quantifiable costs will be used to construct a supplementary payment.

Option (c) - Woodland creation tenders

Through this option we will invite bids for woodland creation to meet specific priorities laid out to Scotland's Rural Development Plan. These priorities may change over time, but the initial requirement is to support woodland creation for the Scottish Executive's climate change programme. The level of activity under the tender scheme could be around 2000ha/yr as a contribution to the overall aspiration to achieve around 9000ha/year of woodland creation. The intervention rate offered through the woodland creation tender scheme would not exceed the maxima laid down in the Rural Development Regulation.

Quantitative Indicators and Targets

$ Non-lead indicator on water quality (objective 21 pollution by nitrates and pesticides) will be proxied by % of water body length that is of good status for phosphates and is under development
~ Non-lead indicator (objective 23). Non-lead indicator on areas at risk of soil erosion under development. (objective 22)
# All impact indicators will be estimated based on output and result indicators. Quantitative data will be supplemented by qualitative judgement on change. Biodiversity: As measured by farmland bird species population, complemented by additional data on other species. High nature value farmland: Indicator is not developed. The alternative indicator to be used is hectares of land cover under farmland, woodland, urban, other. Water Quality: Gross nutrient balances will be measured at a sample of farms. Supplemented by information on nitrates and phosphates. Climate change: Increases in production of renewable energy will be supplemented where appropriate with information on net carbon savings.

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