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<div id="introtext"><p><strong>Forestry Statistics 2006</strong></p></div>
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<li><a href="#one">Government Expenditure on forestry</a></li>
<li><a href="#two">Grant schemes</a></li>
<li><a href="#three">The Farm Woodland Premium Scheme</a></li>
<li><a href="#four">Energy Crops</a></li>
<li><a href="#five">Price of wood and wood products</a></li>
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<h1>Finance & prices</h1>
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<p><strong>This section contains information about Government expenditure on forestry, grants and financial returns from forestry. </strong></p>
<hr />
<h2><a name="one" id="one"></a>Government expenditure on forestry </h2>
<p>Net expenditure on public forests by the Forestry Commission in 2003-04 totalled £66 million, a fall of 10% from the previous year. £62 million was used to fund forest management and development, £25 million for recreation, conservation & heritage and £42 million for harvesting & haulage. Timber sales generated a total income of £62 million in 2003-04.</p>
<p>The total net expenditure for 2003-04 of £66 million comprised £32 million in Scotland, £23 million in England and £12 million in Wales.</p>
<table title="Table 7.1 Funding public forests - net expenditure" cellpadding="2" width="95%">
<caption>Table 7.1 Funding public forests - net expenditure<sup>1</sup></caption>
<thead>
<tr>
<td colspan="5" class="quantity">£ million</td>
</tr>
<tr>
<th width="32%"></th>
<th width="17%"><div class="center">2000-01</div></th>
<th width="17%"><div class="center">2001-02</div></th>
<th width="17%"><div class="center">2002-03</div></th>
<th width="17%"><div class="center">2003-04</div></th>
</tr>
</thead><tbody>
<tr>
<td class="left"><strong>GB </strong></td>
<td><strong>34.2</strong></td>
<td><strong>49.2 </strong></td>
<td><strong>74.2</strong></td>
<td><strong>66.4</strong></td>
</tr>
<tr>
<td class="left">Forest management & development<sup>2</sup> </td>
<td>51.5</td>
<td>57.8</td>
<td>77.6</td>
<td>61.8</td>
</tr>
<tr>
<td class="left">Recreation, conservation & heritage </td>
<td>15.5</td>
<td>18.5 </td>
<td>21.5</td>
<td>25.0</td>
</tr>
<tr>
<td class="left">Harvesting & haulage </td>
<td>42.5</td>
<td>42.7</td>
<td>43.4</td>
<td>41.9</td>
</tr>
<tr>
<td class="left"><em>Less</em> timber income </td>
<td>-75.2</td>
<td>-69.8</td>
<td>-68.2</td>
<td>-62.2</td>
</tr>
<tr>
<td class="left"><strong>England </strong></td>
<td><strong>10.2</strong></td>
<td><strong>16.5</strong></td>
<td><strong>22.7</strong></td>
<td><strong>22.5</strong></td>
</tr>
<tr>
<td class="left">Forest management & development<sup>2</sup> </td>
<td>14.5</td>
<td>18.4</td>
<td>22.4</td>
<td>19.5</td>
</tr>
<tr>
<td class="left">Recreation, conservation & heritage </td>
<td>7.8</td>
<td>8.2</td>
<td>8.5</td>
<td>9.6</td>
</tr>
<tr>
<td class="left">Harvesting & haulage </td>
<td>10.3</td>
<td>9.6</td>
<td>10.1</td>
<td>10.2</td>
</tr>
<tr>
<td class="left"><em>Less</em> timber income </td>
<td>-22.4</td>
<td>-19.6</td>
<td>-18.4</td>
<td>-16.8</td>
</tr>
<tr>
<td class="left"><strong>Scotland </strong></td>
<td><strong>18.2</strong></td>
<td><strong>22.8</strong></td>
<td><strong>39.4</strong></td>
<td><strong>31.7</strong></td>
</tr>
<tr>
<td class="left">Forest management & development<sup>2</sup> </td>
<td>26.4</td>
<td>27.4</td>
<td>43.7</td>
<td>34.3</td>
</tr>
<tr>
<td class="left">Recreation, conservation & heritage </td>
<td>5.9</td>
<td>6.9</td>
<td>7.1</td>
<td>7.8</td>
</tr>
<tr>
<td class="left">Harvesting & haulage </td>
<td>22.4 </td>
<td>22.8</td>
<td>22.5</td>
<td>21.9</td>
</tr>
<tr>
<td class="left"><em>Less</em> timber income </td>
<td>-36.5</td>
<td>-34.3</td>
<td>-34.0</td>
<td>-32.3</td>
</tr>
<tr>
<td class="left"><strong>Wales </strong></td>
<td><strong>5.9</strong></td>
<td><strong>9.9</strong></td>
<td><strong>12.1</strong></td>
<td><strong>12.2</strong></td>
</tr>
<tr>
<td class="left">Forest management & development<sup>2</sup> </td>
<td>10.5</td>
<td>12.0</td>
<td>11.4</td>
<td>7.9</td>
</tr>
<tr>
<td class="left">Recreation, conservation & heritage </td>
<td>1.8</td>
<td>3.4</td>
<td>5.9</td>
<td>7.6</td>
</tr>
<tr>
<td class="left">Harvesting & haulage </td>
<td>9.8</td>
<td>10.3</td>
<td>10.7</td>
<td>9.7</td>
</tr>
<tr>
<td class="left"><em>Less</em> timber income </td>
<td>-16.2</td>
<td>-15.8</td>
<td>-15.9</td>
<td>-13.0</td>
</tr>
</tbody>
</table>
<p class="sources">Source: Forestry Commission Annual Reports & Accounts.</p>
<ol>
<li>Excludes notional cost of capital and any surplus/ deficit on sale of properties. </li>
<li>Includes all expenditure on public forests not covered under "recreation, conservation & heritage" or "harvesting & haulage".</li>
</ol>
<p>In addition to expenditure on public forests, the Forestry Commission spent a total of £99 million on other activities in 2003-04. £40 million of this total was used by the national offices in each country for grants and partnership funding and a further £32 million for policy, regulation & administration. At a GB level, £36 million was used for international & GB support services and £12 million for research.</p>
<table title="Table 7.2 Other government expenditure on forestry" cellpadding="2" width="95%">
<caption>Table 7.2 Other government expenditure on forestry<sup>1</sup>,<sup>2</sup></caption>
<thead>
<tr>
<td colspan="5" class="quantity">£ million</td>
</tr>
<tr>
<th width="32%"></th>
<th width="17%"><div class="center">2000-01</div></th>
<th width="17%"><div class="center">2001-02</div></th>
<th width="17%"><div class="center">2002-03</div></th>
<th width="17%"><div class="center">2003-04</div></th>
</tr>
</thead><tbody>
<tr>
<td class="left"><strong>GB</strong></td>
<td><strong>89.8 </strong></td>
<td><strong>88.5 </strong></td>
<td><strong>89.9</strong></td>
<td><strong>99.0</strong></td>
</tr>
<tr>
<td class="left">Grants and partnership funding<sup>3</sup> - total</td>
<td>40.6 </td>
<td>38.7</td>
<td>37.8</td>
<td>40.1</td>
</tr>
<tr>
<td class="left">Policy, regulation & administration - total</td>
<td>17.0 </td>
<td>19.5</td>
<td>22.8</td>
<td>31.7</td>
</tr>
<tr>
<td class="left">Research - GB funded</td>
<td>12.3 </td>
<td>12.4 </td>
<td>11.9</td>
<td>12.4</td>
</tr>
<tr>
<td class="left">International & GB support services </td>
<td>31.7 </td>
<td>31.7 </td>
<td>31.7</td>
<td>36.3</td>
</tr>
<tr>
<td class="left"><em>Less</em> recovery of support service costs from countries</td>
<td>-11.9 </td>
<td>-13.8</td>
<td>-14.2</td>
<td>-21.5</td>
</tr>
<tr>
<td class="left"><strong>England </strong></td>
<td><strong>25.3 </strong></td>
<td><strong>28.7</strong></td>
<td><strong>31.4</strong></td>
<td><strong>34.3</strong></td>
</tr>
<tr>
<td class="left">Grants and partnership funding<sup>3</sup> </td>
<td>18.2 </td>
<td>18.8</td>
<td>18.8</td>
<td>18.6</td>
</tr>
<tr>
<td class="left">Policy, regulation & administration<sup>4</sup> </td>
<td>7.1 </td>
<td>9.9</td>
<td>12.5</td>
<td>15.7</td>
</tr>
<tr>
<td class="left"><strong>Scotland </strong></td>
<td><strong>26.3 </strong></td>
<td><strong>24.0 </strong></td>
<td><strong>20.1</strong></td>
<td><strong>25.0</strong></td>
</tr>
<tr>
<td class="left">Grants and partnership funding<sup>3</sup> </td>
<td>19.6 </td>
<td>17.4</td>
<td>14.0</td>
<td>15.8</td>
</tr>
<tr>
<td class="left">Policy, regulation & administration<sup>4</sup> </td>
<td>6.7 </td>
<td>6.6</td>
<td>6.1</td>
<td>9.2</td>
</tr>
<tr>
<td class="left"><strong>Wales </strong></td>
<td><strong>6.1 </strong></td>
<td><strong>5.5</strong></td>
<td><strong>9.1</strong></td>
<td><strong>12.5</strong></td>
</tr>
<tr>
<td class="left">Grants and partnership funding<sup>3</sup> </td>
<td>2.9 </td>
<td>2.6</td>
<td>4.9</td>
<td>5.7</td>
</tr>
<tr>
<td class="left">Policy, regulation & administration<sup>4</sup> </td>
<td>3.2 </td>
<td>2.9</td>
<td>4.1</td>
<td>6.8</td>
</tr>
</tbody>
</table>
<p class="sources">Source: Forestry Commission Annual Reports & Accounts.</p>
<ol>
<li>Forestry Commission expenditure only. Excludes expenditure incurred by other departments, e.g. FWPS payments.</li>
<li>Excludes miscellaneous income.</li>
<li>EU co-financing not subtracted from grant expenditure.</li>
<li>Country costs include shares of GB support service costs. </li>
</ol>
<hr />
<h2><a name="two" id="two"></a>Grant Schemes</h2>
<p>Non-FC woodland in Great Britain is supported by a range of grants for creating new woodland and managing existing woodland. The Woodland Grant Scheme (WGS) was introduced in 1988, at the same time as tax relief was phased out. In Scotland, WGS was replaced by SFGS in 2003. The statistics here exclude data from the SFGS. In England, WGS was closed to new applications in 2004 and the English Woodland Grant Scheme was launched in July 2005. In Wales, WGS will be replaced by Better Woodlands for Wales (BWW) in December 2005.</p>
<p>In WGS, for new woodland areas there were two grant rates for broadleaves (for areas above and below 10 hectares) and one grant rate for conifers. The higher broadleaved rate of grant was also paid to encourage planting of Scots pine to establish new native pinewoods. These grants were paid in two instalments, the first instalment being paid when the work has been carried out to a satisfactory standard, the following payment five years later. A discretionary payment was paid for natural regeneration. This was based on the costs of the preparatory work required. When the trees were a certain height, a fixed payment equivalent to the restocking grant was paid. </p>
<p>In WGS, supplementary grants were available for planting on better quality agricultural land (Better Land Contribution) and to encourage the creation of new woodland close to towns and cities, where public access will be allowed (Community Woodland Contribution). A Premium was also available for planting woodland in the Community Forests and National Forest in England. Farmers could additionally apply for the Farm Woodland Premium Scheme. This scheme offered payments from the rural affairs departments to compensate for agricultural income foregone. Challenge funds, where applicants bid for the money they require to carry out the work, were also available to encourage new planting in certain targeted areas.</p>
<p>In WGS, grants for existing woodland included a restocking grant (paid in one instalment), a management grant (usually paid over a five year period) and a number of Woodland Improvement Grants. There were also Challenge funded projects to encourage certain types of work in existing woodland.</p>
<p>The Scottish Forestry Grants Scheme (SFGS) was developed to implement the Scottish Forestry Strategy. It aims to encourage the creation and management of woods and forests to provide economic, environmental and social benefits now and in the future. Grants are available for:</p>
<ul>
<li>Expansion - creating new woodlands;</li>
<li>Restocking - replanting woodlands after clear felling; and</li>
<li>Stewardship - improving the value of existing woodlands.</li>
</ul>
<p>Locational premiums provide additional funding to normal SFGS grants for planting of woodlands in certain areas. A total of 870 hectares were grant aided under SFGS Locational Premium in 2004-05. For statistics on the SFGS, see FC Scotland Annual Reports.</p>
<p>Table 7.3 shows the areas where the initial work has been carried out satisfactorily and the first instalment of grant has been paid; it demonstrates how much new work is being undertaken with grant aid. This differs from the non-Forestry Commission information in Table 1.12, which for natural colonisation/regeneration is from second instalment payments, and demonstrates the woodland area that has become successfully established. </p>
<p>Table 7.4 shows the annual management grant, but does not include the more capital-oriented woodland improvement grant.</p>
<p>The Forest Service in Northern Ireland operates a similar scheme, but their data are not included in this section; for more information see the Forest Service annual report.</p>
<p>A total of 8.7 thousand hectares of woodland received first instalment WGS support in Great Britain in 2004-05.</p>
<table title="Table 7.3 Areas receiving first instalment WGS support in Great Britain in year ending 31 March 2005" cellpadding="2" width="95%">
<caption>Table 7.3 Areas receiving first instalment<sup>1</sup> WGS support in Great Britain in year ending 31 March 2005</caption>
<thead>
<tr>
<td colspan="5" class="quantity">thousands of hectares</td>
</tr>
<tr>
<th width="20%"></th>
<th width="20%"><div class="center">New planting (excluding natural regeneration)</div></th>
<th width="20%"><div class="center">New woodland (from natural regeneration)</div></th>
<th width="20%"><div class="center">Restocking (excluding natural regeneration)</div></th>
<th width="20%"><div class="center">Restocking (from natural regeneration)</div></th>
</tr>
</thead>
<tbody>
<tr>
<td colspan="5" class="left"><strong>Broadleaves</strong></td>
</tr>
<tr>
<td class="left">Total grant-aided</td>
<td>7.5</td>
<td>0.3</td>
<td>0.8</td>
<td>0.2</td>
</tr>
<tr>
<td class="left">Better land contribution</td>
<td>4.0</td>
<td>0.0</td>
<td colspan="2" rowspan="6">Additional contributions not available for restocking</td>
</tr>
<tr>
<td class="left">Community woodland contribution</td>
<td>0.7</td>
<td>0.0</td>
</tr>
<tr>
<td class="left">Community forest premium</td>
<td>0.5</td>
<td>0.0</td>
</tr>
<tr>
<td class="left">Challenge funds</td>
<td>0.8</td>
<td>0.0</td>
</tr>
<tr>
<td class="left">Tendering (National Forest)</td>
<td>0.3</td>
<td>0.0</td>
</tr>
<tr>
<td class="left">Short rotation coppice locational contribution</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr>
<td colspan="5" class="left"><strong>Conifers</strong></td>
</tr>
<tr>
<td class="left">Total grant-aided</td>
<td>1.2</td>
<td>0.0</td>
<td>1.2</td>
<td>0.1</td>
</tr>
<tr>
<td class="left">Better land contribution</td>
<td>0.2</td>
<td>0.0</td>
<td colspan="2" rowspan="5">Additional contributions not available for restocking</td>
</tr>
<tr>
<td class="left">Community woodland contribution</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr>
<td class="left">Community forest premium</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr>
<td class="left">Challenge funds</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr>
<td class="left">Tendering (National Forest)</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr>
<td class="left">Short rotation coppice locational contribution</td>
<td colspan="4" class="center">(not applicable - conifers are not used for short rotation coppice)</td>
</tr>
<tr>
<td colspan="5" class="left"><strong>Total</strong></td>
</tr>
<tr>
<td class="left"><strong>Total grant-aided</strong></td>
<td><strong>8.7</strong></td>
<td><strong>0.3</strong></td>
<td><strong>2.0</strong></td>
<td><strong>0.3</strong></td>
</tr>
<tr>
<td class="left"><strong>Better land contribution</strong></td>
<td><strong>4.2</strong></td>
<td><strong>0.0</strong></td>
<td colspan="2" rowspan="6">Additional contributions not available for restocking</td>
</tr>
<tr>
<td class="left"><strong>Community woodland contribution</strong></td>
<td><strong>0.7</strong></td>
<td><strong>0.0</strong></td>
</tr>
<tr>
<td class="left"><strong>Community forest premium</strong></td>
<td><strong>0.5</strong></td>
<td><strong>0.0</strong></td>
</tr>
<tr>
<td class="left"><strong>Challenge funds</strong></td>
<td><strong>0.8</strong></td>
<td><strong>0.0</strong></td>
</tr>
<tr>
<td class="left"><strong>Tendering (National Forest)</strong></td>
<td><strong>0.3</strong></td>
<td><strong>0.0</strong></td>
</tr>
<tr>
<td class="left"><strong>Short rotation coppice locational contribution</strong></td>
<td><strong>0.0</strong></td>
<td><strong>0.0</strong></td>
</tr>
</tbody>
</table>
<p class="sources">Source: Woodland Grant Scheme</p>
<ol>
<li>First instalment and supplementary payments. Supplementary payments are only available for new woodland. </li>
</ol>
<p>A total of 31.7 thousand hectares of woodland in Great Britain was approved for annual management grant under the Woodland Grant Scheme (WGS) in 2004-05. This represented a decrease of 28% from the 2003-04 figure of 43.9 thousand hectares. The total of 31.7 thousand hectares in 2004-05 comprised 30.4 thousand hectares in England (96%), 1.1 thousand hectares in Scotland (3%) and 0.2 thousand hectares in Wales (1%).</p>
<table title="Table 7.4 Woodland in Great Britain approved for annual management grant under the Woodland Grant Scheme " cellpadding="2" width="95%">
<caption>Table 7.4 Woodland in Great Britain approved for annual management grant<sup>1</sup> under the Woodland Grant Scheme </caption>
<thead>
<tr>
<td colspan="5" class="quantity">thousands of hectares</td>
</tr>
<tr>
<th width="20%" class="left">Year (ending 31/3)</th>
<th width="20%"><div class="center">GB</div></th>
<th width="20%"><div class="center">England</div></th>
<th width="20%"><div class="center">Scotland</div></th>
<th width="20%"><div class="center">Wales</div></th>
</tr>
</thead><tbody>
<tr>
<td colspan="5" class="left"><strong>Broadleaves</strong></td>
</tr>
<tr>
<td class="left">2000-01 </td>
<td>22.5 </td>
<td>18.5</td>
<td>2.6</td>
<td>1.4</td>
</tr>
<tr>
<td class="left">2001-02 </td>
<td>18.6</td>
<td>15.4</td>
<td>2.2</td>
<td>1.0</td>
</tr>
<tr>
<td class="left">2002-03 </td>
<td>19.7</td>
<td>15.7</td>
<td>3.2</td>
<td>0.8</td>
</tr>
<tr>
<td class="left">2003-04 </td>
<td>32.2 </td>
<td>30.2</td>
<td>1.3</td>
<td>0.7</td>
</tr>
<tr>
<td class="left">2004-05</td>
<td>24.9</td>
<td>24.5</td>
<td>0.3</td>
<td>0.1</td>
</tr>
<tr>
<td colspan="5" class="left"><strong>Conifers</strong></td>
</tr>
<tr>
<td class="left">2000-01</td>
<td>11.7 </td>
<td>4.9</td>
<td>6.3</td>
<td>0.4</td>
</tr>
<tr>
<td class="left">2001-02</td>
<td>8.1 </td>
<td>4.5</td>
<td>3.1</td>
<td>0.5</td>
</tr>
<tr>
<td class="left">2002-03 </td>
<td>6.8 </td>
<td>3.5</td>
<td>2.8</td>
<td>0.5</td>
</tr>
<tr>
<td class="left">2003-04</td>
<td>11.7 </td>
<td>8.3</td>
<td>3.0</td>
<td>0.4</td>
</tr>
<tr>
<td class="left">2004-05</td>
<td>6.8</td>
<td>5.9</td>
<td>0.8</td>
<td>0.1</td>
</tr>
<tr>
<td colspan="5" class="left"><strong>Total</strong></td>
</tr>
<tr>
<td class="left">2000-01</td>
<td>34.2 </td>
<td>23.4</td>
<td>8.9</td>
<td>1.9</td>
</tr>
<tr>
<td class="left">2001-02</td>
<td>26.7 </td>
<td>19.9</td>
<td>5.3</td>
<td>1.5</td>
</tr>
<tr>
<td class="left">2002-03</td>
<td>26.5 </td>
<td>19.2</td>
<td>6.0</td>
<td>1.3</td>
</tr>
<tr>
<td class="left">2003-04</td>
<td>43.9 </td>
<td>38.5 </td>
<td>4.3</td>
<td>1.0</td>
</tr>
<tr>
<td class="left">2004-05</td>
<td>31.7</td>
<td>30.4</td>
<td>1.1</td>
<td>0.2</td>
</tr>
</tbody>
</table>
<p class="sources">Source: Woodland Grant Scheme</p>
<ol>
<li>Standard, special and annual management grants are included. Woodland Improvement Grants are not included.</li>
</ol>
<p>A total of £28.5 million was paid in grants in 2004-05. 44% of this total comprised new planting under the Woodland Grant Scheme, 28% comprised management grants and 18% comprised new planting supplements.</p>
<h3 class="fig">Figure 7.1 Grant money paid in year ending 31 March 2005 by type of grant</h3>
<img src="../fcfs005_f7_1.gif" />
<p class="sources">Source: Woodland Grant Scheme</p>
<p>Grants for existing natural regeneration are paid to safeguard trees which are already established (for example by fencing to keep deer out), whereas grants for restocking by natural regeneration are for fencing to allow trees to establish (these categories were amalgamated in Table 7.3). Neither the Farm Woodland Premium Scheme (funded by Defra and the devolved administrations) nor Woodland Improvement Grants are included in this figure.</p>
<hr />
<h2><a name="three" id="three"></a>The Farm Woodland Premium Scheme (GB) </h2>
<p>The Farm Woodland Premium Scheme (FWPS) was designed to encourage the creation of new woodlands on farms. It achieved this by offering annual payments to compensate for the agricultural income forgone through establishing and maintaining woodland. The FWPS could only be given where WGS was also payable, because the environmental and silvicultural standards of the WGS must be satisfied before a FWPS application can be approved. As a result, the areas approved for FWPS grant are included in the Woodland Grant Scheme areas in previous tables.</p>
<p>A total of 3 thousand hectares of woodland were approved for FWPS grant in 2004-05. 61% of this total area was in England, 25% in Scotland and 14% in Wales.</p>
<table title="Table 7.5 Area of woodland in GB approved for FWPS grant" cellpadding="2" width="95%">
<caption>Table 7.5 Area of woodland in GB approved for FWPS grant </caption>
<thead>
<tr>
<td colspan="5" class="quantity">hectares</td>
</tr>
<tr>
<th width="20%" class="left">Year (ending 31/3)</th>
<th width="20%"><div class="center">GB</div></th>
<th width="20%"><div class="center">England</div></th>
<th width="20%"><div class="center">Scotland</div></th>
<th width="20%"><div class="center">Wales</div></th>
</tr>
</thead><tbody>
<tr>
<td colspan="5" class="left"><strong>Conifers</strong></td>
</tr>
<tr>
<td class="left">1995-96 </td>
<td>3 379</td>
<td>327</td>
<td>2 976</td>
<td>76</td>
</tr>
<tr>
<td class="left">1996-97 </td>
<td>2 306</td>
<td>225</td>
<td>2 058</td>
<td>23</td>
</tr>
<tr>
<td class="left">1997-98 </td>
<td>2 608</td>
<td>301</td>
<td>2 238</td>
<td>68</td>
</tr>
<tr>
<td class="left">1998-99 </td>
<td>3 711</td>
<td>460</td>
<td>3 159</td>
<td>92</td>
</tr>
<tr>
<td class="left">1999-00 </td>
<td>4 670</td>
<td>563</td>
<td>3 913</td>
<td>195</td>
</tr>
<tr>
<td class="left">2000-01 </td>
<td>1 970</td>
<td>368</td>
<td>1 597</td>
<td>5</td>
</tr>
<tr>
<td class="left">2001-02 </td>
<td>2 368</td>
<td>446</td>
<td>1 915</td>
<td>8</td>
</tr>
<tr>
<td class="left">2002-03 </td>
<td>3 260</td>
<td>200</td>
<td>3 030</td>
<td>30</td>
</tr>
<tr>
<td class="left">2003-04 </td>
<td>725</td>
<td>126</td>
<td>588</td>
<td>12</td>
</tr>
<tr>
<td class="left">2004-05</td>
<td>243</td>
<td>41</td>
<td>188</td>
<td>14</td>
</tr>
<tr>
<td colspan="5" class="left"><strong>Broadleaves</strong></td>
</tr>
<tr>
<td class="left">1995-96 </td>
<td>5 896</td>
<td>2 369</td>
<td>3 243</td>
<td>284</td>
</tr>
<tr>
<td class="left">1996-97 </td>
<td>4 515</td>
<td>1 486</td>
<td>2 907</td>
<td>122</td>
</tr>
<tr>
<td class="left">1997-98 </td>
<td>4 354</td>
<td>1 930</td>
<td>2 247</td>
<td>177</td>
</tr>
<tr>
<td class="left">1998-99 </td>
<td>5 769</td>
<td>2 683</td>
<td>2 803</td>
<td>284</td>
</tr>
<tr>
<td class="left">1999-00 </td>
<td>9 061</td>
<td>2 862</td>
<td>5 800</td>
<td>399</td>
</tr>
<tr>
<td class="left">2000-01 </td>
<td>4 882</td>
<td>2 795</td>
<td>1 919</td>
<td>168</td>
</tr>
<tr>
<td class="left">2001-02 </td>
<td>5 981</td>
<td>3 818</td>
<td>1 970</td>
<td>193</td>
</tr>
<tr>
<td class="left">2002-03 </td>
<td>6 933</td>
<td>4 389</td>
<td>2 242</td>
<td>302</td>
</tr>
<tr>
<td class="left">2003-04 </td>
<td>6 940</td>
<td>4 347</td>
<td>2 204</td>
<td>389</td>
</tr>
<tr>
<td class="left">2004-05</td>
<td>2 955</td>
<td>1 917</td>
<td>603</td>
<td>435</td>
</tr>
<tr>
<td colspan="5" class="left"><strong>Total</strong></td>
</tr>
<tr>
<td class="left">1995-96 </td>
<td>9 275</td>
<td>2 696</td>
<td>6 219</td>
<td>360</td>
</tr>
<tr>
<td class="left">1996-97 </td>
<td>6 821</td>
<td>1 711</td>
<td>4 965</td>
<td>145</td>
</tr>
<tr>
<td class="left">1997-98 </td>
<td>6 962</td>
<td>2 231</td>
<td>4 485</td>
<td>245</td>
</tr>
<tr>
<td class="left">1998-99 </td>
<td>9 480</td>
<td>3 143</td>
<td>5 962</td>
<td>376</td>
</tr>
<tr>
<td class="left">1999-00 </td>
<td>13 731</td>
<td>3 425</td>
<td>9 713</td>
<td>594</td>
</tr>
<tr>
<td class="left">2000-01 </td>
<td>6 852</td>
<td>3 163</td>
<td>3 516</td>
<td>173</td>
</tr>
<tr>
<td class="left">2001-02 </td>
<td>8 349</td>
<td>4 264</td>
<td>3 885</td>
<td>201</td>
</tr>
<tr>
<td class="left">2002-03 </td>
<td>10 193</td>
<td>4 589</td>
<td>5 272</td>
<td>332</td>
</tr>
<tr>
<td class="left">2003-04 </td>
<td>7 665</td>
<td>4 473</td>
<td>2 792</td>
<td>401</td>
</tr>
<tr>
<td class="left">2004-05</td>
<td>3 198</td>
<td>1 958</td>
<td>791</td>
<td>449</td>
</tr>
</tbody>
</table>
<p class="sources">Source: Woodland Grant Scheme</p>
<hr />
<h2><a name="four" id="four"></a>Energy Crops</h2>
<p>The Energy Crop Scheme (ECS) in England is run by Defra (Department for Environment, Food and Rural Affairs) in partnership with Forestry Commission England. The scheme, which is part of the England Rural Development Programme (ERDP), offers grants for the establishment of energy crops (Short Rotation Coppice and Miscanthus) and for the establishment of producer groups (Short Rotation Coppice only).</p>
<p>A total of 1 429 hectares of short rotation coppice and 1 752 hectares of miscanthus have been agreed under the Energy Crop Scheme in England, as at September 2005.</p>
<table title="Table 7.6 Energy Crop Scheme: Number of applications and area of land" cellpadding="2" width="95%">
<caption>Table 7.6 Energy Crop Scheme: Number of applications and area of land</caption>
<thead>
<tr>
<td colspan="3" class="quantity">Area (hectares)</td>
</tr>
<tr>
<th></th>
<th width="30%"><div class="center">Short Rotation Coppice</div></th>
<th width="30%"><div class="center">Miscanthus</div></th>
</tr>
</thead><tbody>
<tr>
<td class="left">Live agreements</td>
<td>1 429</td>
<td>1 752</td>
</tr>
<tr>
<td class="left">Applications still being processed<sup>1</sup></td>
<td>458</td>
<td>1 650</td>
</tr>
</tbody>
</table>
<p class="sources">Source: Defra</p>
<ol>
<li>Applications still being processed include deferred applications with postponed planting years.</li>
</ol>
<p>In Scotland, Forestry Commission Scotland provides grants for establishing poplars and willows as short rotation coppice (SRC). Grant rates are £600/hectare on non-set aside land and £400/hectare on set aside land. Grants for fencing and ground preparation are also available. The rates are currently under review. The annual planting of SRC is small and in 2004-05 amounted to 13 hectares. </p>
<hr />
<h2><a name="five" id="five"></a>Prices of wood and wood products</h2>
<p>The Forestry Commission has collected information for many years on the prices of conifers sold standing by the FC and publishes a Coniferous Standing Sales Price Index (CSSPI) every 6 months. A softwood sawlog price index, providing information on prices (delivered to roadside), of coniferous sawlogs produced by the Forestry Commission, is also published. <i>Timber Price Indices</i> gives values for overlapping 12 month periods and is available from the Forestry Commission website. There is little other information on wood prices before primary processing and no price index is available for broadleaves. Prices for outputs of primary wood processing are collected by the Office for National Statistics (ONS) in the Producer Price Indices (PPIs), and these are available in the MM22 Business Monitor which gives detailed PPIs monthly, or from the National Statistics website. </p>
<p>The average price per m<sup>3</sup> overbark standing was £6.13 in nominal terms (£4.98 in 1996 prices) in the year to March 2005. This represents an increase of 3.7% in real terms compared with the previous year. Over the same time period, sawlog prices have risen by 4.3%. </p>
<table title="Table 7.7 Coniferous standing sales and sawlog price indices for Great Britain " cellpadding="2" width="95%">
<caption>Table 7.7 Coniferous standing sales and sawlog price indices<sup>1</sup> for Great Britain </caption>
<thead>
<tr>
<td colspan="5" class="quantity">Index</td>
</tr>
<tr>
<th width="20%" class="left">Year ending March</th>
<th width="20%"><div class="center">Standing sales Nominal terms<sup>2</sup></div></th>
<th width="20%"><div class="center">Standing sales Real teams<sup>3,4</sup></div></th>
<th width="20%"><div class="center">Sawlogs Nominal terms<sup>2</sup></div></th>
<th width="20%"><div class="center">Sawlogs Real terms<sup>3,4</sup></div></th>
</tr>
</thead><tbody>
<tr>
<td class="left">1996</td>
<td>104.6</td>
<td>106.6</td>
<td>108.6</td>
<td>110.6</td>
</tr>
<tr>
<td class="left">1997</td>
<td>96.8</td>
<td>95.4</td>
<td>104.7</td>
<td>103.1</td>
</tr>
<tr>
<td class="left">1998</td>
<td>82.3</td>
<td>79.1</td>
<td>90.0</td>
<td>86.5</td>
</tr>
<tr>
<td class="left">1999</td>
<td>51.1</td>
<td>47.8</td>
<td>78.1</td>
<td>72.9</td>
</tr>
<tr>
<td class="left">2000</td>
<td>49.7</td>
<td>45.5</td>
<td>83.9</td>
<td>76.7</td>
</tr>
<tr>
<td class="left">2001</td>
<td>45.4</td>
<td>41.1</td>
<td>81.6</td>
<td>73.8</td>
</tr>
<tr>
<td class="left">2002</td>
<td>43.2</td>
<td>38.1</td>
<td>75.3</td>
<td>66.4</td>
</tr>
<tr>
<td class="left">2003</td>
<td>33.6</td>
<td>28.6</td>
<td>72.8</td>
<td>62.0</td>
</tr>
<tr>
<td class="left">2004</td>
<td>32.6</td>
<td>27.0</td>
<td>70.3</td>
<td>58.2</td>
</tr>
<tr>
<td class="left">2005</td>
<td>34.5</td>
<td>28.0</td>
<td>74.7</td>
<td>60.6</td>
</tr>
</tbody>
</table>
<p class="sources">Source: Timber Price Indices.</p>
<ol>
<li>The price indices are constructed from information on Forestry Commission sales only. Year to September 1996 = 100.</li>
<li>Nominal prices are the actual prices at that point in time.</li>
<li>Real terms values are obtained by using the GDP deflator to convert to 'constant prices' (in this case prices in 1996). This allows trends in timber prices to be tracked without the influence of inflation.</li>
<li>Real terms indices have been revised from Forestry Statistics 2004 in light of revisions made by the Office for National Statistics (ONS) to the GDP deflator.</li>
</ol>
<h3 class="fig">Figure 7.2 Coniferous standing sales and sawlog price indices in real terms (year to September 1996 = 100)</h3>
<img src="../fcfs005_f7_2.gif" />
<p class="sources">Source: Timber Price Indices</p>
<p>Note that the overlapping periods used to construct the indices will make this graph in real terms appear smoother than the actual movement of prices, and remove any seasonality in the series.</p>
<hr />
<h2><a name="six" id="six"></a>Financial return from forestry</h2>
<p>Returns to the forest owner are made up of sales of timber (standing or felled), sales of other goods and services, increases in the value of the woodland (from annual increment or market factors), and the net income from subsidies (e.g. planting grants) less taxes. The owner's costs are made up of employment costs and other purchases. </p>
<p>Estimates of the overall return from commercial Sitka spruce plantations are produced annually in the Investment Property Databank (IPD) UK Forestry Index (not National Statistics), which is calculated from a sample of private sector plantations in mainland Britain.</p>
<p>The total return from forestry in the three year period 2001 to 2004 is estimated to be 1.9% per annum. This represents a recovery from the negative returns of recent years but is still well below the peak of 9.9% per annum for the three year period 1993 to 1996.</p>
<table title="Table 7.8 3 year rolling annualised returns from forestry" cellpadding="2" width="60%">
<caption>Table 7.8 3 year rolling annualised returns from forestry</caption>
<thead>
<tr>
<td colspan="5" class="quantity">percent per annum</td>
</tr>
<tr>
<th width="50%"></th>
<th width="50%">Total return</th>
</tr>
</thead><tbody>
<tr>
<td class="left">1992-95</td>
<td>4.4%</td>
</tr>
<tr>
<td class="left">1993-96</td>
<td>9.9%</td>
</tr>
<tr>
<td class="left">1994-97</td>
<td>7.9%</td>
</tr>
<tr>
<td class="left">1995-98</td>
<td>4.5%</td>
</tr>
<tr>
<td class="left">1996-99</td>
<td>-3.0%</td>
</tr>
<tr>
<td class="left">1997-00</td>
<td>-5.2%</td>
</tr>
<tr>
<td class="left">1998-01</td>
<td>-5.4%</td>
</tr>
<tr>
<td class="left">1999-02</td>
<td>-3.2%</td>
</tr>
<tr>
<td class="left">2000-03</td>
<td>-1.7%</td>
</tr>
<tr>
<td class="left">2001-04</td>
<td>1.9%</td>
</tr>
</tbody>
</table>
<p class="sources">Source: IPD UK Forestry Index 2005.</p>
<hr />
<h2><a name="seven" id="seven"></a>Gross Value Added (GVA)</h2>
<p>The Annual Business Inquiry (ABI) carried out by the Office for National Statistics (ONS) includes statistics on gross value added broken down by Standard Industrial Classification (SIC). The ABI was extended to include forestry in 2001. Gross Value Added (GVA) is the difference between the value of outputs and the value of intermediate consumption, so mainly comprises employment costs and profits.</p>
<p>GVA reported by the ABI is shown in Table 7.9. From 1998 to 2003, GVA in primary wood processing decreased by 19% to £1.5 billion. GVA in forestry has increased by 15% since 2000 to £0.3 billion in 2003.</p>
<table title="Table 7.9 Gross Value Added in Forestry and Wood Processing" cellpadding="2" width="95%">
<caption>Table 7.9 Gross Value Added in Forestry and Wood Processing</caption>
<thead>
<tr>
<td colspan="7" class="quantity">£ millions</td>
</tr>
<tr>
<th width="20%" class="left">Standard Industrial Classification (SIC)<sup>1</sup></th>
<th><div class="center">1998</div></th>
<th><div class="center">1999</div></th>
<th><div class="center">2000</div></th>
<th><div class="center">2001</div></th>
<th><div class="center">2002</div></th>
<th><div class="center">2003</div></th>
</tr>
</thead>
<tbody>
<tr>
<td class="left"><strong>SIC 02: forestry</strong></td>
<td>..</td>
<td>..</td>
<td>273</td>
<td>294</td>
<td>292</td>
<td>315</td>
</tr>
<tr>
<td colspan="7" class="left">SIC 20</td>
</tr>
<tr>
<td class="left">20.1: sawmills</td>
<td>341 </td>
<td>399</td>
<td>398</td>
<td>312</td>
<td>346</td>
<td>362</td>
</tr>
<tr>
<td class="left">20.2: wood panels </td>
<td>311</td>
<td>291</td>
<td>246</td>
<td>222</td>
<td>232</td>
<td>245</td>
</tr>
<tr>
<td class="left">Other SIC 20: secondary products</td>
<td>1 618</td>
<td>1 411</td>
<td>1 659</td>
<td>1 781</td>
<td>1 881</td>
<td>2 055</td>
</tr>
<tr>
<td class="left"><strong>Total SIC 20: wood products</strong></td>
<td><strong>2 270</strong></td>
<td><strong>2 101</strong></td>
<td><strong>2 303</strong></td>
<td><strong>2 315</strong></td>
<td><strong>2 459</strong></td>
<td><strong>2 662</strong></td>
</tr>
<tr>
<td colspan="7" class="left">SIC 21</td>
</tr>
<tr>
<td class="left"> 21.1: pulp & paper</td>
<td>1 177</td>
<td>1 257</td>
<td>1 007</td>
<td>1 002</td>
<td>1 022</td>
<td>879</td>
</tr>
<tr>
<td class="left">21.2: articles of pulp & paper </td>
<td>2 837</td>
<td>2 730</td>
<td>2 732</td>
<td>2 715</td>
<td>2 747</td>
<td>2 618</td>
</tr>
<tr>
<td class="left"><strong>Total SIC 21: pulp & paper </strong></td>
<td><strong>4 014</strong></td>
<td><strong>3 987</strong></td>
<td><strong>3 739</strong></td>
<td><strong>3 717</strong></td>
<td><strong>3 770</strong></td>
<td><strong>3 496</strong></td>
</tr>
<tr>
<td class="left"><strong>Total wood processing (SIC 20 + 21) </strong></td>
<td><strong>6 284</strong></td>
<td><strong>6 088</strong></td>
<td><strong>6 042</strong></td>
<td><strong>6 032</strong></td>
<td><strong>6 229</strong></td>
<td><strong>6 158</strong></td>
</tr>
<tr>
<td class="left"><strong>Total primary wood processing(SIC 20.1 + 20.2 + 21.1) </strong></td>
<td><strong>1 829</strong></td>
<td><strong>1 947</strong></td>
<td><strong>1 651</strong></td>
<td><strong>1 536</strong></td>
<td><strong>1 600</strong></td>
<td><strong>1 486</strong></td>
</tr>
</tbody>
</table>
<p class="sources">Source: Annual Business Inquiry.</p>
<ol>
<li>The SIC categories shown in the table are:<br />
SIC 02 = Forestry, logging and related services <br />
SIC 20.1 = Sawmilling and planing of wood, impregnation of wood<br />
SIC 20.2 = Manufacture of veneer sheets, manufacture of plywood, laminboard, particle board, fibre board and other panels and boards<br />
Other SIC 20 = manufacture of builders' carpentry and joinery, wooden containers, and other products of wood, straw and plaiting materials<br />
SIC 21.1 = Manufacture of pulp, paper and paperboard<br />
SIC 21.2 = Manufacture of articles of paper and paperboard<br />.. denotes data not available
</li>
</ol>
<hr />
<p><strong>NB: Figures in the tables are individually rounded, so the constituent items may not sum to the totals given.</strong></p>
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