Water company offers to pay for trees on small farmland plots

Farmers with marginal land as compact as 0.9ha can apply for a free tree planting scheme and an annual income of £1,977/ha by Severn Trent water company.

The firm’s forest creation fund had previously only covered parcels of land over 4ha, but it has now announced a new scheme specific to sites of between 0.9 and 2ha.

See also: Why agroforestry is adding value on arable farms

Severn Trent says it will plan the scheme, source the trees and pay landowners and farmers £800/acre a year for 10 years to cover maintenance.

The landowner will be responsible for planting the trees and will have the freedom to apply for a biodiversity net gain (BNG) baseline assessment and keep the carbon credits.

Severn Trent environmental engagement manager Miranda De Freston said low-grade land would get priority, helping to enhance biodiversity and soil health.

The so-called “small acre” offer will run in tandem with Severn Trent’s existing tree planting scheme for creating woodland on areas over 4ha.

For the main scheme, there is an annual premium payment of £200/ha for the first 10 years, for sites of 8ha or more.

It covers all aspects of planning, planting, management and 35 years of maintenance, while the landowner again retains ownership.

Severn Trent will set each site up with a BNG baseline assessment to help landowners attain biodiversity credits, which will be handed back to the landowners after the 35-year management period.

Ms De Freston said that, based on the current Department for Business, Energy & Industrial Strategy values, these have the potential to be worth £15,434/ha after that 35-year period.

The water company will also offer to price match labour costs for planting if landowners have in-house staff, and it will consider alternative planting techniques such as agroforestry.

Update 15 March 2023

Please note, that Severn Trent’s ‘small acre’ tree planting offer for sites between 2.2 and 5 acres is now closed for this planting season due to excess demand. The tree planting fund for land of 10 acres and over in size remains available.