Frequently Asked Questions about Forestry and Planting on your Land

Find out all you need to know about planting on your land and forestry in Ireland and with our Frequently Asked Questions.

Is my land suitable for planting?

Most land is suitable for planting. Our foresters will assess your land and tell you if it is suitable for Forestry and what species will best suit your land to maximise your returns.

What grants are paid and who gets them?

The planting grant is paid in 2 stages – the establishment grant in year 1 and the maintenance grant in year 4. Most clients prefer to mandate these grants to us in a 4 year establishment contract. Veon will take on the cost of planting and maintenance on your behalf.  Other clients prefer to receive the grant and we are paid a fee by the client for our work.

How much fencing will be done on site?

Fencing depends on how stock proof the boundaries of the property are. Where the boundaries are not stock proof we will erect a new high quality fence which will protect the new plantation.

Do I have to pay anything towards the planting of my land?

In most cases you will not have to pay anything to plant your land. The government scheme is designed to cover 100% of the costs of planting your land. In our experience, where grants have not covered the costs this will be due to high fencing costs or the plot of land being planted is less than 2.5 ha.

What works will be carried out over the four years?

Once the planting work is completed, Veon will maintain the plantation for 4 years. This work mainly involves controlling vegetation and replacing dead trees where necessary.

How much forest premium will I get if I plant?

The forest premium payments depend on the species planted. The species planted depends on the soil and other conditions of the land you own. Veon’s foresters will aim to maximise your premium income, balancing that with timber income after the premiums have run out in 15 years. Click the link below for current rates or use our income calculator to see how much you could earn?

How long will it take for me to receive my first premium after the site is planted?

The first premium is paid when the first grant is paid by the Forest Service. From then on forest premiums are paid every April, subject to the plantation being up to an acceptable standard.

Are the forestry Premiums index linked?

Forest premiums are not index linked.

Are forest premiums income tax free?

Yes, Forest premiums are free from income tax. However, you will have to pay USC and PRSI on your forest premium. Remember that income from your timber is also treated the same way.

What happens after 4 years?

When the maintenance grant is paid, it is important that you maintain your plantation so that you can protect and maximise your income. We recommend that you take up a management contract for a small fee with us and we will make sure your plantation performs to its full potential. Clients who avail of this option may be eligible to obtain forestry insurance cover under our existing group schemes.

Once my land is planted, will I get the forest premium and my single farm payment on the planted land?

Yes, as long as the land you planted was claimed on an area aid map in 2008.

Does planting my land affect my dis-advantaged area grant?

Yes, the forest premium will replace your dis-advantaged area payment. Our foresters will go through the pros and cons of this to make sure this is to your advantage.

What happens after the premiums run out?

We design your forest so that when the premiums run out, your forest will be ready for thinning. First thinning takes place between 14 and 20 years. Every 4 years or so you will receive income from thinnings. At the end of the rotation (30 to 35 years) your forest will be clear-felled and you will receive a large income-tax-free lump sum at that time.

When it’s all cleared do I need to replant?

Under current legislation you have to replant your land once it is clear-felled. There are no grants available for replanting your land. The income from the timber sale more than offsets replanting costs.

Is it insured and for how long?

Under our establishment contract with you we will insure your plantations for the first 4 years until it receives the maintenance grant. We will cover your growing forest for public liability and reconstitution. We will not cover your forest for fire which can be arranged at an extra cost.

Do I need permission to plant my land?

Yes, you need permission to plant. As part of our work for you, we will get your land approved by the Forest Service. It usually takes about 12-14 weeks.

Are the grants guaranteed, Can the government cut the payments?

Even during the recession, the government has shown strong support for forestry. It is not likely that they would stop paying forest premiums to those who have already planted their land as they are contractually obliged to continue paying premiums once you have planted your land.

Who owns the trees?

The trees and timber belong to you, even though the government pays for your land to be planted and pays you tax free forest premium.

Do you have any plantations around that I can look at?

Veon manages 40,000 acres of forests all over Ireland. Our foresters would be delighted to show you plantations we have planted and are managing so that you can see what happens at the various stages of growth.