Forest Industries Ireland Welcomes Budget 2027 Forestry Allocation, But Warns Red Tape and Low Planting Rates Threaten €2 Billion Sector
Forest Industries Ireland (FII), the trade association within Ibec, has today welcomed the continued financial support for the forestry sector announced by Minister of State Niall Collins in Budget 2027. However, the industry body has urgently warned that structural barriers and excessive red tape are choking the sector, rendering available funding moot as national afforestation rates languish at critically low levels.
While acknowledging the robust funding package, FII stressed that capital availability is no longer the primary obstacle to expanding Ireland’s forest estate.
“We welcome the continued funding commitment in Budget 2027, which proves the Government recognises the vital role of forestry,” said Mark McAuley, Director of FII. “But the harsh reality is that funding is not the problem. Irish afforestation rates remain far too low at around 2,000 hectares per annum. Clearly, there are major systemic issues preventing greater uptake by farmers, and the Government must urgently address these as it designs the next Forestry Programme commencing in 2028.”
Mr McAuley continued, “These chronically low planting rates pose a direct threat to the future viability of Ireland’s wood products sector. The industry is a cornerstone of the rural economy, creating 10,000 jobs and contributing over €2 billion annually to the Irish economy. To protect this vital sector, FII is calling for a redoubling of efforts to make forestry a highly attractive option for farmers, which requires drastically reducing red tape and ensuring forestry can compete effectively with other land-use options.
The industry body also emphasised the strategic national importance of forestry in tackling the dual crises of housing and climate change. Mr McAuley said, “Forestry is critical to achieving Ireland’s climate ambitions, serving as an important mechanism for offsetting emissions from the agriculture sector. Furthermore, a thriving forestry sector is essential for driving regional economic activity and providing the sustainable timber required to build the housing the country desperately needs, while transitioning to greener, lower-carbon homes.
“The current afforestation schemes represent a genuinely good financial offering to farmers, yet far too few are progressing to actual planting,” he continued. “Problems continue to arise regarding stringent land eligibility criteria and hidden costs. We need to confront these issues head-on and allow more land to be planted. Right now, we are unnecessarily ruling out too much farmland that could be used for valuable, sustainable forestry.”
FII is calling on the Department of Agriculture, Food and the Marine to immediately engage with industry stakeholders to streamline administrative processes, overhaul eligibility constraints, and secure the future of the Irish forestry sector while designing the 2028 Forestry Programme.
ENDS
About Forest Industries Ireland (FII):
Forest Industries Ireland is the Ibec group that represents the forestry and timber sector in Ireland. Its members include the leading companies operating across the entire supply chain, from forest owners and management companies to sawmills and timber processors.
