As the festive countdown gets into full swing, they’ll be sung about, danced around and decorated. But a tree is not just for Christmas.

From carbon capture to leisure and investment, the importance of forestry and woodland is growing. Here are six pointers for landowners and land managers.

1. A solid investment The commercial forestry market has long been seen as an important asset for tax planning, given timber acts as a stable store of value. Commercial timber investment has performed exceptionally well over the past 20 years and the outlook for the timber market is very good, with global demand forecast to double by 2050.

2. Amenity interest is on the rise Lifestyle buyers have pushed up demand and prices for amenity woodland. Buyers are generally looking for comparatively small areas of 5-20 hectares and it’s recognised that this woodland can be used for various productive enterprises from glamping to forest schools. Take your time to consider if a carbon sale is right for you.

3. Carbon sequestration There are sound reasons for planting trees to capture carbon and the Government is encouraging this as part of its net zero ambitions. However, the carbon market is still in its infancy and it’s likely to be several years before it becomes a reliable income source.

4. Speed of return The cash return from forestry is very slow as you have to wait at least 30 years before you can harvest timber. Historically investors have gone into forestry for capital growth but as prices increase, it will become difficult to derive the same level of return we’ve seen in the past.

5. Grants, grants, grants Government grants are fuelling considerable planting in the amenity woodland sector. Woodland creation is a key feature of existing stewardship schemes and the new Environmental Land Management Scheme so there are excellent opportunities out there. Grant schemes include the England Woodland Creation Offer, the Glastir Woodland Creation Scheme in Wales and Scotland’s Forestry Grant Scheme. There’s also support for woodland creation near rivers to deliver benefits such as flood prevention and improved water quality. It can take a long time to get through the grant process, so if you are thinking about planting trees, early engagement with the process is very important.

6. Right tree, right place Species selection depends on what the woodland will be used for and the site’s growing conditions. Access requirements, the presence of rare or protected species and archaeological features must also be considered and peatlands must be protected. Requirements for planting permission vary but in most cases an Environmental Impact Assessment determination will be needed and consultation with the local community is always advised. Trees typically need to be booked from nurseries at least a year in advance.

Further information

Contact Mark Townsend or James Adamson

See Aspects of Land Autumn/Winter 2021 for more rural news and points of view