1. Forestry Grant Scheme Potential for Woodfuel Support Perth & Argyll Conservancy Syd House Conservator Argyll Woodfuel Forum Cairnbaan 17 March 2015

2. Purpose To give a short introduction on the new Forestry Grant Scheme Outline potential opportunities for support for the Woodfuel sector

3. 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

4. Forestry Grant Scheme 28/11/2015 FGS Seminar 4 £260M

5. SRDP Forestry Budget SRDP 2014-20- £1.35bn Forestry- 3 rd 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 28/11/2015 FGS Seminar 5

6. 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 28/11/2015 FGS Seminar 6

7. 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 28/11/2015 FGS Seminar 7

8. FGS Overview - SMF Sustainable Management of Forests – 9 Options Annual management grant for 5 years Significant changes to options and basis for support 28/11/2015 FGS Seminar 8 Native woodlands Livestock Removal Woodland Grazing Public Access - Rural Public Access - WIAT LISS Grey Squirrel Control – for red squirrels Predator Control – for capercailzie/black grouse Deer Impact reduction

9. 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 28/11/2015 FGS Seminar 9 Forest planning Habitats and species Restructuring Regeneration Low Impact Silvicultural Systems Woodlands in and Around Towns

10. 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 28/11/2015 FGS Seminar 10

11. 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. 1 st round deadline will be 31 Jan 2016. Approval by 31 March 28/11/2015 FGS Seminar 11

12. 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 28/11/2015 FGS Seminar 12

13. 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/a ll-schemes/forestry-grant-scheme/harvesting-and- processing/ 28/11/2015 FGS Seminar 13

14. 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