Forestry Grant Scheme

Potential for Woodfuel Support

Perth & Argyll Conservancy

Syd HouseConservator

Argyll Woodfuel ForumCairnbaan 17 March 2015

Purpose

• To give a short introduction on the new Forestry Grant Scheme

• Outline potential opportunities for support for the Woodfuel sector

Background

• Lessons learned from SRDP 2007-13

• Transition from SRDP I• Development of SRDP 2014-20

• Discrete Forestry Grant Scheme

• Approval by European Commission• Programme submitted in June 2014• Approval expected by June 2015• Open for applications from 30 March 2015• FGS contract approval from September 2015

Forestry Grant Scheme

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£260

M

SRDP Forestry Budget

• SRDP 2014-20- £1.35bn • Forestry- 3rd largest element

• £260m – Forestry Grant Scheme• 55% funded by EC – 45% SG• Over £37m per year• £9m headroom in 2015/16 • £26m headroom in 2016/17 (provisional)

• Competitive application process• Scoring and budget management

• Monthly clearing process

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FGS Overview

• Targeted support • For woodland owners, farmers, forestry businesses and

other landowners

• Key aims • Creation of new woodlands• Sustainable management of existing woodlands

• Eligibility• Registered on Rural Payments and Services• Management plan / Operational Plan for WC

• Applications • On-line from 30 March 2015

• Contracts from September 2015

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FGS Overview

• Discrete scheme within SRDP• Evolution from Rural priorities• 8 FGS Grant Categories• 31 options in total• 2 Grant Categories for creating new woodlands

• Woodland creation - 9 Options• Agroforestry - 2 Options (new 2016)

• 7 Categories for existing woodlands• Only Woodland creation available to date

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FGS Overview - SMF

• Sustainable Management of Forests – 9 Options• Annual management grant for 5 years• Significant changes to options and basis for support

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FGS Overview - WIG

• Woodland Improvement Grants – 5 Options• Capital grants for investments in woodland• Similarities to options under RP• But some new options and new basis for support

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FGS Overview – New

• Tree Health – 3 options• Agents services• Sanitation felling/tree removal• Replanting

• Forest Infrastructure – (new 2016)

• Forest roads and lay byes• Harvesting and Processing – (new 2016)

• Small scale timber harvesting & processing • Adding value to timber locally

• Co-operation – (new 2016)

• Feasibility studies• Co-ordinating landscape scale/ multiple owner projects

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Harvesting and Processing

• supports investments in new specialised equipment which will increase the local small-scale harvesting and processing capacity

• support based on actual costs with a maximum contribution of 40 per cent. In any single application, the minimum grant award will be £2,500 and the maximum will be £35,000. NB purchase only ie no hire purchase

• One application round pa due by 31 Jan. 1st round deadline will be 31 Jan 2016. Approval by 31 March

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Examples of what might qualify for

grant aid are:• equipment re small-scale mechanised harvesting operations in small

woodlands e.g. small-scale thinnings harvesters, small-scale forwarders, forestry grabs and purpose-built forestry trailers. equipment to facilitate local timber primary processing at a non-industrial scale (excluding wood chipping)

• non-industrial scale processing equipment, e.g. firewood log processors, small-scale mobile or static saw benches for primary processing of felled trees, hand-held timber strength graders and timber drying kilns

• work to promote development of markets (including cooperative marketing) for the products from these woodlands generated from the small-scale primary processing

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Various eligibility criteria

• Registered for SRDP• Small-scale (ie <10k tones pa)

• private and / or other forest owners• forestry contractors and / or co-operatives• small (non-industrial) scale wood processors• fully constituted community groups• social enterprises• non-profit organisations

• Supporting business info (Business Plan, trading & accounts info etc)https://www.ruralpayments.org/publicsite/futures/topics/all-schemes/forestry-grant-scheme/harvesting-and-processing/

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Other Developments

• Lessons learnt from SRDP I• Planned improvements

• Overall SRDP structure and rules• Forestry grant scheme• IT systems• FCS/RPID role administering FGS• FCS business processes eg consultation/ forest plans