Budget 2016 has been favourable towards forestry as we predicted.
Timber and forestry income has been removed from the High Earners restriction, meaning there is no limit to the annual earnings that can be received from timber earnings in a year. The implications of this are that commercial and silvicultural issues will impact on the harvesting decisions.
Harvesting and particularly clearfell harvesting, is the most valuable occasion in the lifetime of a commercial forest. Therefore, the news is very welcome. Similarly, the Capital Acquisitions Tax has remained the same, offering a 90% relief on agricultural transactions - the threshold has increased to €280,000 also.
From the planting side of things, there habeen almost €114 million dedicated to establish a further 7,000 hectares in the 2016 season and to provide for 120 km's of roadways into Irish forestry.
Contact your local forester to learn how forestry is an excellent pension and income option for you.
Green Belt atended the Teagasc reforestation event in Feakle on March 4th.
At this event, there were showcases of the quality work completed by Liam Cleare, now of Green Belt, who harvested and clearfelled the site for Denis. It was a high yielding site and an average tree size of 0.4m3 was harvested at clearfell - which is impressive after a 26 year rotation. The landowner is now looking at replanting and used brash bailing to help clear up the site and to generate a little extra income.
Green Belt has clearfelled a numbver of sites across the country. Whether as a result of wind throw from storm damage or of naturally reaching clearfell age, our team of harvesters and hauliers will work to achieve the very best result from your harvest.
Contact the harvesting team to discuss the options available to you.
Green Belt Ltd is Irelands largest private forestry company
Green Belt was established in 1982 by Tim O’Brien and Mossie Ryan, both qualified and experienced foresters.
Since then it has seen substantial growth and currently ranks as the largest and most progressive private forestry company in this country - managing in excess of 320,000 planted acres. Included in our clients are all the main pension funds in Ireland as well as many corporate investors.
At establishment phase, Green Belt operates a 4 year management contract which is specifically designed for farmers. We will undertake to establish a forest for you, the farmer or investor, utilising the grant paid by the Forest Service. This contract relieves you of all the risks in establishing your plantation and leaves you free to concentrate on your main farming activities. In most circumstances the grant covers establishment costs. The premium is available for the forest owner for 15 years, at an average value of €206 per acre per annum.
As forest owner you always own the land and timber. Green Belt works with you to enhance the plantation and maximise the potential returns from your forestry.
Our inital priority is to see the plantation through to year 4 establishment. From that point Green Belt would like to work with you through to maturity and manage your plantation to achieve the maximum return from your timber.
Semi Mature Forestry:
With many forests now having reached 20 years of age, there are no longer premiums available for these plantations (old schemes ran for 20 years). Many of these farmers are now considering selling on their assets and potentially reinvesting into new land to farm the premiums. As a result, there is ample opportunity to acquire high quality semi mature forestry plantations. The term to maturity is much reduced, thus the returns can be very attractive - in the region of 5% - 7% per annum, compounded. Green Belt source, negotiate and manage these plantations on your behalf. Annual reports and a detailed program of activity keep you informed of your investment. Many indigenous and international investors work with Green Belt to improve their portfolio. A long term proven track record and excellent reputation has made us the clear choice for forestry management in Ireland, the UK and Europe.