Scottish Government Announces Enhanced Forestry Grant Scheme Rates to Boost Woodland Creation
The Scottish Government last week announced enhanced support under the Forestry Grant Scheme (FGS), providing a boost to woodland creation across Scotland. The changes, whilst small, are the most significant since 2017, and are designed to address the rising costs of establishment and ensure forestry remains competitive with other land uses.
These changes will correlate with the Central Scotland Green Network (CSGN) areas that cover an area of 10,000 square kilometres, from Ayrshire, Inverclyde and Dunbartonshire in the West to Fife and the Lothians in the East.
Under the new rates:
- All areas within the CSGN boundary: landowners will receive a £2,500 per hectare top-up, capped at 40 hectares.
- All areas outside the CSGN: landowners will receive a £1,500 per hectare top-up, capped at 20 hectares.
- The enhanced rates can be applied retrospectively on request to approved contracts where grant claims have not been made.
The announcement follows concerns that inflation and cost increases since 2017 had eroded the real value of support, reducing uptake among farmers and landowners. The revised rates aim to restore confidence and encourage greater participation in woodland creation, particularly in areas where planting has slowed.
David Robertson, Investment and Business Development Director at Scottish Woodlands Ltd, welcomed the announcement:
“We have been lobbying for increased grants for some time and whilst these changes are limited to smaller schemes this is a timely and positive step for Scottish forestry. Enhanced grant rates will not only help farmers and landowners to move forward with planting plans, but they will also provide reassurance to investors that Scotland remains committed to building a pipeline of high-quality woodland projects. In an era when timber supply and climate resilience are critical, this additional support could be the catalyst we need to accelerate woodland creation across the country.”
Mr Robertson added: “As an interim measure this is a welcome step, but we need to see a root and branch review of the grant system and grant rates to make it fit for purpose moving forward.”
The updated scheme is expected to create new opportunities for landowners, investors, and forestry managers, especially within the core CSGN area. The changes also provide stronger signals to investors that forestry remains a priority within Scotland’s natural capital strategy.
While challenges remain, such as grant caps on larger projects and a prolonged approval process, today’s announcement is a clear commitment to expanding Scotland’s woodland estate.
