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IMPROVING THE ECONOMIC VALUE OF FORESTS (Rural Priorities)
Article 20(b)(ii)
Measure Code (122)
Rationale for Intervention
One of the objectives of the Scottish Forestry Strategy 2006 is to "develop a more efficient and competitive timber supply chain". The quality of the timber produced is a key element in the competitiveness and economic viability of the supply sector. Consequently, the production of high quality timber is a major theme within the Strategy, which identifies the need to encourage silvicultural operations that enhance timber quality. However, many of these operations can only be undertaken at a financial loss and providing support for these has proven to be an effective mechanism for improving forest management, timber quality and economic viability. The production of high quality timber provides better access to markets, as does independent certification of sustainable forest management.
Objectives
The aim of the measure is to encourage investment in the production of high quality timber, through the adoption of good silvicultural practice that is consistent with sustainable forest management. This investment is also aimed at providing more market opportunities in the timber supply chain.
Scope and actions
The eligible investments will be those operations identified and agreed as delivering the aim of the measure and are shown to be at a net cost to the potential beneficiary.
The investment operations eligible for support are:
- early pruning to improve timber quality;
- high pruning to improve timber quality;
- pre-commercial and non-commercial thinning to improve average stem quality;
- controlling grey squirrels to prevent bark stripping damage and enable quality timber production from broadleaved woodland;
- re-spacing of natural regeneration where stem density exceeds 4,000 trees/hectare; and
- reducing deer numbers to minimise browsing and fraying damage which results in stem deformities or fungal rot so as to improve the conditions for the production of quality timber.
Where independent certification of the forest holding has been undertaken, in accordance with the UK Woodland Assurance Standard, additional support will be given to the associated costs of preparing and implementing a plan required by the Certification Body to close out Corrective Action requests.
Definition of beneficiaries
The financial beneficiaries are the private owners or occupiers of forested land (or associations thereof). The measure will be available to a potential beneficiary with a forest holding of 30 hectares or greater and who is managing it in accordance with an approved Forest Plan. This Forest Plan will require compliance with the UK Forestry Standard that sets out the standards for sustainable forest management in the UK.
In addition to the Forest Plan, the potential beneficiary must produce an investment plan that justifies and estimates the net cost of operations that will enhance the quality of timber. This plan will quantify the estimated costs of operations and any estimated income to be derived from produce that arises from carrying out the operations. The potential beneficiary for auditing purposes will keep invoices for actual expenditure and income associated with these operations.
Payment will be made in arrears, for the net cost of investment operations completed, on the basis of the approved estimates in the investment plan or on receipted invoices, whatever is the lesser.
Aid intensity
The payment rate will be up to 50% of the net actual costs identified and approved in the required investment plan.
Transition arrangements
None
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