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Scotland Rural Development Programme 2007-2013

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ESTABLISHMENT OF SHORT ROTATION COPPICE CROPS OF WILLOW OR POPLAR (Rural Priorities)

Article 20 b(i)

Measure Code (121)

Rationale for intervention

The expansion of appropriate woodland, to be managed as short rotation coppice, will contribute to rural development by providing an option for farm diversification that has the economic potential to take advantage of emerging local wood fuel markets and renewable energy projects. Creating a substantial source of local produce for wood fuel markets will encourage the movement of cost-effective processing closer to the rural timber resource and help to support associated local businesses.

In addition to the potential economic benefits provided by short rotation coppice, the establishment of this new woodland will contribute to carbon sequestration to support the Scottish Executive's Climate Change Programme. As part of this, the Scottish Forestry Strategy 2006 includes targets to deliver annual carbon savings of 0.6 million tonnes of carbon (MtC) by 2010, 0.8MtC by 2015 and 1.0MtC by 2020.

The establishment costs, of woodland to be managed as short rotation coppice, are high and it takes a period of 3 to 4 years to the first harvest. This makes it less attractive to farmers who are used to an annual return from crops. Consequently, support is required for this form of agricultural diversification.

Objectives

The aim of the measure is to support the establishment of short rotation coppice crops, through the planting of willow or poplar cuttings, to help deliver both the economic and the environmental benefits of this type of agricultural diversification.

Scope and actions

This measure requires the beneficiary to establish and maintain short rotation coppice of willow or poplar, which will be harvested on a cycle between 2 and 5 years.

In order to be eligible for support, the potential beneficiary must demonstrate that they have established an end use for the produce e.g. evidence of a supply contact. Also, the produce must be used to develop a fuel supply for renewable energy products. Support under this measure is available only for the first establishment of SRC, support is not available for replacement of poplar or willow rootstocks that have been grubbed up.

The minimum eligible area will be 2 hectares and at least 10,000 cuttings per hectare must be established and maintained.

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

Beneficiaries

Owners or occupiers of agricultural land

Aid intensity

Support will be given to the total cost of establishing short rotation coppice at a rate of 40% (50% in LFA) of actual costs, up to a maximum cost of €2,248 per hectare, based on receipted invoices.

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