Woodland plays a significant role in supporting our environment and wider climate, and according to Savills‘ latest research, featured in Spotlight: The Forestry Market, interest in tree planting has led to the highest area of new planting since the mid-1990s.
While much of the commentary around achieving a target of 16.5% of woodland cover across the UK by 2050 focuses on new planting, preserving existing stock is equally important. Managed woodlands also provide a range of income potential far beyond simply timber production, which could diversify and support many farm businesses.
Significant uplift in timber value
Historically, undermanagement may have been a result of the typically small scale of farm woodlands and previously low timber prices, making harvesting operations uneconomical. Times have changed. There has been a significant uplift in timber value and, despite some fluctuations, the lesser grade wood fuel and biomass markets remain in good shape. This means even small operations could provide positive income.
Woodland cover also plays an important role in current and likely future rural policy. Understanding woodland assets and how best to manage them to maximise their output is important.
There are lots of attractive grants available for woodland creation, management and for public benefit. They can make a difference and are often the crucial factor between achieving all the woodland objectives or only taking the low hanging fruit.
Woodland Management Plan Grant
Provides a one-off payment to create a UK Forestry Standard (UKFS)-compliant, 10-year woodland management plan. Payment rates are based on the area of eligible woodland, ranging from £1,500 for three to 50 hectares to £3,000 plus £15 per additional hectare for areas over 100 acres. Applications are open year-round.
Woodland Creation Planning Grant
Offers up to £30,500 per project to prepare a UKFS-compliant woodland creation design plan. Funding can be used for site surveys, stakeholder consultations and detailed planting schemes. Applications are open year-round.
England Woodland Creation Offer
Provides up to £10,200 per hectare for tree planting, including site preparation, planting and the protection of young trees. Annual maintenance payments of £400 per hectare for 15 years are available. Additional contributions are offered for enhancing biodiversity, improving water quality and increasing public access. The grant is open year-round.
Woodland Improvement Grant
Expected to reopen in 2025 after a review, this grant supports activities to improve biodiversity and the resilience of existing woodlands. Funding is annual for five years, including £1,000 per year for areas of between three and 10 hectares and £127 per hectare per year for areas over 10 hectares. It covers activities like thinning, coppicing and habitat enhancement. Additional funding is available for deer and squirrel control, fencing, rhododendron control and access improvements.
New tree planting in the UK reached 20,700 hectares in the planting year to March 31, 2024, marking significant tree planting progress and a year-on-year increase of 59%. During the previous four years, planting of new trees was comparatively steady, with an average of 13,500 hectares planted per year.
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