Dáil Éireann Debate, Wednesday - 30 September 2026
142. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine to confirm if the foundation pillar of the afforestation programme since 1993 for grant aid to cover 100% of afforestation establishment costs is still the case. [69308/26]
View answer143. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine if he or his Minister of State have the overall authority to set forestry grant and premiums rates. [69306/26]
View answerI propose to take Questions Nos. 142 and 143 together.
The current Forestry Programme 2023-2027 provides significant supports for afforestation and the management of existing forests. This includes grants and premiums for the creation a broad range of forest types offered through the Afforestation Scheme 2023-2027.
Premium rates offered through this scheme represent the calculation of income foregone from other farm enterprises and an additional amount for forest management and forest-environmental and climate services provided by the forest owner. My Department strives to cover 100% of the cost of establishing a forest when developing a Forestry Programme. Grant and premium payments are income tax free and in addition where applicable, farmers may also retain their BISS payments.
While my Department has the authority to initially set grant and premium rates within a Forestry Programme, this is subject to financial sanction and Government approval. Furthermore, while the Forestry Programme is funded under the National Exchequer, all forestry schemes must operate pursuant to State Aid approval from the European Commission.
A key principle of State Aid approval is that this aid must have an "incentive effect" to remain compatible with the EU internal market. An incentive effect is present when the aid changes the behaviour of an undertaking such as additional activity contributing to the development of the sector, where it would not have taken place without such aid or where in its absence the activity would have transpired in a restricted or different manner.
My Department, as the granting Authority in this instance, must ensure that any State Aid provided is proportionate and does not subsidise the costs of an activity or undertaking that would have incurred in any instance and must not compensate for the normal business risk of an economic activity.
I am confident that the existing attractive rates and supports offered under the Forestry Programme, in conjunction with the Mid-Term Review published earlier this year, will continue to support and encourage landowners to plant trees on their land.
