Timber opportunity
Timber opportunity
THE remainder of the Iscoed Estate, Ferryside, Carmarthenshire now is for sale guided at £300,000 for the whole which includes 209,196 litres of milk quota.
Currently an annual income of £19,488 is generated from leasing the quota and 85 acres let on short term farm business tenancies although these expire from 31 March.
Apart from the farmland which includes 32 acres eligible for arable area aid another 22 acres are a mixture of broadleaved and coniferous woodland of mixed age.
The woodland was established to enhance the sporting qualities over the land and agent John Clegg & Co said there is potential through future farm policy to maximise income and to realise the full and valuable potential of the shoot. The sporting rights over another 79 acres are included in the sale.
Also there are taxation benefits from farmland and woodland ownership. After two years both qualify for 100% inheritance tax relief and currently all income from timber sales is free of income tax and capital gains tax.
• Norway spruce could be grown at 3000 trees/acre to produce a cash crop at years 5,6 and 7.
Annual payments from MAFF under Farm Woodland Premium Scheme (£/ha/year)
Land eligible for arable area aid
payments £300
Improved grassland £260
Financial assistance for further woodland planting
available under the
Forestry Commission Woodland Scheme
Area Conifer Broadleaves (£/ha) (£/ha)
Upto 10 ha 700 1350
10 ha plus 700 1050
A Better Land Supplement of £600/ha may be available.