Economic Evaluation of the Farm Woodland Scheme in Scotland

Abstract

This paper describes an economic evaluation of planting under the Farm Woodland Scheme in Scotland based on the calculation of the Scheme's net UK Exchequer cost (NEC) and its relationship to the benefits observed through a survey of first‐year Scheme entrants. It was found that the motivation in planting was primarily for ‘environmental’ benefits such as landscape, amenity, wildlife and sport. Income and timber production were much less important. On average, payments under the Scheme under‐compensated farmers for their direct and opportunity costs associated with planting. When based on agricultural savings in the year of planting, the annual NEC was #58 per ha, but this cost increases substantially if the additionality principle is applied. Anticipated benefits in terms of farm output reduction, income diversification, employment and timber production are identified but the effects are not large. Environmental benefits were not included in the evaluation and these may provide greater justification for the expenditure.

Voluntary incentive schemes for farm forestry: uptake, policy effectiveness and employment impacts

“…Full details are given in Crabtree (1996). The data are analysed here in relation to whether the farms were designated as Less-Favoured Areas (LFA) or non-LFA (arable).…”

“…It was launched in 1992 and planting under the scheme in Scotland was evaluated for government in 1996 (Crabtree, 1996). In order to join the scheme, farmers must first enter the Woodland Grant Scheme (WGS), which provides a payment incentive for planting.…”

Towards a research agenda for woodland expansion in Scotland

“…Farm size is positively associated with uptake of grant schemes, with larger farms more likely to take an interest in forestry (Gasson and Hill, 1990;Crabtree and Appleton, 1992;Crabtree et al, 2001). Woodland expansion is also more likely on sheep pasture than arable land due to lower opportunity costs and potential for integration with existing land use (Morgan- Davies et al, 2008;Bibby, 2009).…”

Proceedings of the fifth symposium on oak woodlands: oaks in California’s changing landscape. 2001 October 22-25; San Diego, CA.

“…The concept of rancher self-consumption appeared in the scientific literature more than 25 years ago (Smith andMartin 1972, Torell andothers 2001). Application of the concept to forest landowners has just recently emerged (Crabtree andAppleton 1992, Samuel andThomas 1999). In Spain, self-consumption of environmental services has been quantified for the dehesa of Monfrague Shire (Mariscal and Campos-Palacín 2000).…”