Farming Talk – January 15
In November the government launched a new £50 million scheme to boost tree planting.
Unlike previous schemes, such as the Woodland Creation Grant, farmers will not receive any grant funding to plant trees. Instead, farmers will have the option to sell their “woodland carbon units” to the government every five or 10 years up to 2055/56 at an agreed price.
The first step in the Woodland Carbon Guarantee process is to submit an application form, the second is to participate in an online auction used to agree the price at which the units will be sold to the government.
If the project is successful at the auction, a conditional 30 to 35-year contract will be offered, meaning that the landowner is then free to begin planting.
As the woodland grows, it will be verified every five or 10 years to confirm the amount of carbon that has been sequestered and therefore the number of woodland carbon units delivered. You then have the option to sell them to the government for the guaranteed price or to sell them privately or on the open market.
The Woodland Carbon Guarantee is a sign of things to come and may be worth considering, especially if you have large areas of currently unproductive land.
Aidan Greenway, Madeleys chartered surveyors.
