Twigging what trees really cost
Cant see the wood for the trees? Look no further than our five-page Woodland Special for answers on coppicing (p17), on reviving old woodland (p14) and on how to nurse young trees to maturity (p16). But we start with a brisk canter through the real cost of planting woodlands. Tom Allen-Stevens reports.
Twigging what trees really cost
WHAT is the real cost of establishing trees? Working out the cost of the trees themselves, planting and initial protection – fences, tubes, and so on – is fairly easy. More difficult to quantify are the hidden costs over the years following planting. Theres the labour involved in weeding, pruning and "beating up", or replacement of dead stock. And theres the revenue lost from taking the land out of agricultural production.
This is the subject of a study by the Institute of Water and Environment at Cranfield University. Researchers at Silsoe have looked at the first-year costs incurred on four different sites in Bedfordshire: Dunton, Clapham, Ampthill and Arlesey. Estimates of maintenance costs and grant aid under the various schemes are used to assess the net margin of each enterprise over the first 10 years.
Traditional, broadleaved woodland was not the only forestry planted. Poplar was planted at two of the four sites, Ampthill and Arlesey. At Ampthill it was undertaken by the Poplar Tree Company in lieu of the planting grant and 50% of the Better Land Supplement. Agroforestry, where trees are integrated into an existing farming system, was also investigated. At Clapham small groups of trees were planted in pasture grazed by cattle. At Arlesey poplars were planted in a council-owned arable field in 15m rows.
Size matters
The difference in year one establishment costs for the broadleaved plots is mainly down to plot size: at Arlesey there was just one large plot of over 13ha, while no plot was bigger than 2.8ha at Dunton, which means the protection costs were much higher. Fencing costs were greatest at the Clapham site, due to the need for heavy-duty cattle fencing.
Larger plots reduce the grant, however; the Forestry Commission planting grant is reduced for areas over 10ha. At Dunton, 10% of the area is coniferous, which also reduces the planting grant.
Grant aid was least at Clapham. Being owned by the county council, the site did not qualify for Farm Woodland Premium Scheme. Dr Paul Burgess, who heads the Cranfield team, says that if FWPS had been payable, the site would have turned a profit – which demonstrates how critical grant aid is.
During the first 10 years, the poplar sites appear to be disappointingly costly. However the Poplar Tree Company indicates that the Ampthill site would yield a return from thinnings before year 10, and the trees would be ready to harvest by about year 25. Dr Burgess also stresses the high maintenance and pruning costs, and low level of grants. "However, in the absence of woodland grants, it would offer an inexpensive way of incorporating trees into an arable landscape, when compared to the other systems," he says.
Forestry grants on offer
Grants come from two sources: the Forestry Commission pays for the Woodland Grant Scheme (WGS), while MAFF pays for the Farm Woodland Premium Scheme (FWPS).
WGS Planting Grant
Paid in two instalments: 70% when planting is finished and 30% after five years. The level of the grant depends on tree density, area planted and proportion of broadleaved and conifer species; about £1,350/ha.
WGS Better Land Supplement
Lump sum of £600/ha paid in first year for land taken out of arable production or improved grassland. Received at same pro rata rate as the Planting Grant, but irrespective of coniferous content.
WGS Community Woodland Supplement
Discretionary lump sum of £950/ha where a wood can be used for informal public recreation (eg near a town or city). The grant reflects provision for public access, stiles, dog gates and information boards, etc, as well as clearly-defined footpaths and, in some cases, car-parking.
FWPS
Grant paid to farmers only for establishing a new woodland and taking land permanently out of production. £300/ha per year for a 10-year period.
System Establishment Woodland grant Net Net Net 10-year
and site costs paid by farmer receipts margin revenue margin return from
from ag from from woodland
Year 1 Years 2-10 Year 1 Years 2-10 component new original compared
All figures £/ha woodland ag system with ag prod
Traditional broadleaf
Dunton 1,600 230 1,827 3,098 0 3,095 3,700 -605
Clapham 1,610 290 1,545 405 0 50 1,700 -1,650
Arlesey 1,080 300 1,610 3,004 0 3,234 3,700 -466
Poplar Ampthill 290 150 600 2,700 0 2,860 3,700 -840 Arlesey 1,510 680 1,635 3,015 0 2,460 3,700 -1,240
Silvopastoral*
Clapham 660 20 62 16 1,630 1,028 1,700 -672
Silvoarable*
Arlesey 290 1,030 200 47 2,486 1,413 3,700 -2,287
*The figures for the two agroforestry systems are averaged over the whole area.