Woodland planting payments for farmers set to increase

20 March 2024

Environment and climate
Trees

The government has announced changes and an uplift to some of the EWCO (England Woodland Creation Offer) payments.

The changes aim to bring the current offer in line with SFI and CS, although the payment structure is slightly different.

Under new plans, EWCO agreement holders could get between £8000 to £11,600 per hectare from stackable ‘additional contributions’ and will see an increase in the annual woodland maintenance payments (£350 to £400 per hectare).

The additional contributions pay for the public benefits delivered by the woodland planting. 

Standard payments supporting the initial planting costs will remain at up to £10,200 per hectare.

Some additional contribution payments have increased and will provide the following rates for delivering public benefits:

  • Water quality: £500/ha
  • Flood risk management: £1,000/ha
  • Riparian buffers: £2,500/ha
  • Recreational access: £3,700/ha
  • Close to settlements: £600/ha

The government also announced a £1,100 per hectare payment additional contributions payment when planting on low sensitivity land and a new ‘Nature Recovery – premium’ payment at £3,300 per hectare.

The maximum additional contribution payment increases to £12,700 if the land is also eligible for the new low sensitivity land payment.

Although the changes will be available for new applicants, not all new rates and payments are available to all existing applicants and agreement holders.

Policies and incentives must be ‘carefully considered’

The changes hope to encourage more woodland creation on low sensitivity areas and that the “best agricultural land is kept for food production”, said Environment Minister Rebecca Pow.  

NFU Deputy President David Exwood said: “Managing existing trees on farm and planting new trees is a crucial part of the industry’s ambition to reach net zero by 2040 and something that must be carefully considered with the right policies and incentives to ensure that it can work alongside productive farming.”

The EWCO is the government's main woodland creation fund. It is anticipated that it will be integrated into the ELMs offer in 2025.

More detail can be found in the EWCO Operation Note 67.

It is important to note that the maintenance payment rate increase (£400/ha) also applies to Countryside Stewardship Woodland Creation Maintenance (WD1) and Tree Health Pilot maintenance. The RPA and Forestry Commission will be in contact accordingly with agreement holders.

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