Frequently Asked Questions about Forest Roads and Harvesting
Find out all you need to know about harvesting your plantation or building a forest road.
Why should I thin?
If your forest premium is running out, thinning can provide you with a regular income until the final clear-fell which could be up to 20 years after your premium ends. If you don’t thin, you will not have income from your plantation.
How much will I get from clear-felling?
Clear-felling is when the main income comes in for the plantation owner. In many circumstances, the final harvest will achieve around €9,000 per acre. This depends on timber quality, volume per acre and how the plantation was managed in the past. Well managed plantations always exceed poorly managed ones.
How much will I earn from thinning?
Don’t expect too much from first thinning. First thinning is designed to remove poorer quality trees to allow better trees room to grow, the timber from first thinning is generally poor quality. In recent years plantation owners have been able to make small profit from this operation.
How much will it cost to thin?
We charge a set fee to thin your plantation. It is related to the volume harvested and in most cases is less than the revenue received.
Why employ Veon (formerly FEL) when I can sell the timber myself?
We project manage the whole operation to make sure the process is carried out properly. Veon will make sure that your plantation complies with the conditions of your felling licence, ensuring the right trees are removed, minimising damage to the remaining trees and surrounding environment, take care of Health and Safety issues and make sure all timber is accounted for so that you get your money.
Do I need a harvesting road?
In most cases you will need a harvesting road. Our Foresters will advise you on the best and most cost effective options. Remember that the Forest Service provides grant aid up to 80% of the costs of constructing a road.
What is a felling licence and do I need one?
A felling licence is a permit to allow you to fell trees in your plantation. It is a requirement under the 1946 felling act and you must have one before you begin felling. We apply for this on your behalf as part of our service.
I’ve thinned before, when can I thin again?
Thinning takes place every 3 – 5 years depending on the species and productivity of the plantation.
How do you ensure that all my timber is properly accounted for?
From the outset we accurately measure the timber to be removed from the stand. VEON measure the production of the harvester and forwarder daily so that we know what to expect at roadside. Finally, we have developed a strong and robust timber docket tracking system which tracks timber from the plantation’s roadside to the sawmill. If we spot anything we are not happy with we will stop the operation until it is resolved. We also control access to the plantation during the operation to make sure only authorised vehicles get in.
Will I be taxed on the income from harvesting?
In general, timber income is free from income tax up to the income tax threshold. In the majority of cases no income tax in paid on the income. At Clear-Fell we aim to manage the felling to fall below the income tax threshold.
How is the timber measured and sold?
We measure the standing timber using the latest equipment, the measurements are then analysed by professional foresters. We have a list of selected timber buyers which we tender to. We only work with professional timber buyers who have proven to us that they are capable of carrying out the harvesting to the highest operational and environmental standards to safeguard the forest owner’s forestry assets.
What taxes will I be liable to pay?
The only taxes applicable are PRSI and Universal Social Charge at your prevailing rate.
How does marking second and subsequent thinnings benefit the plantation?
Marking is carried out by our professional foresters. The purpose of this is to select poorer trees, favouring better ones which will form the basis of the final crop. It ensures that thinning is carried out consistently across the plantation. For the harvesting operator it removes the chance that he will take the better trees thus enhancing the value of the crop after thinning. It also reduces the cost of harvesting, thereby increasing the price of the timber for you.
How much timber do you harvest every year?
Veon will harvest 75,000 tonnes of timber in 2017 up from 50,000 tonnes in 2016.