The IFA said it has proactively worked with Government to ensure commitments to farmers are honoured during this unprecedented economic crisis. The IFA said that while the deferred payment of the forest premia is undesirable, it does offer a workable solution. According to the IFA, the Government have been procrastinating on the matter and as a result it has become a major worry to farmers that have planted their land based on Government assurances.

Mr Walshe said: “The decision to cut forest premiums has brought the forestry programme into disrepute.” He added: “Farmers that planted based on Government assurances are very angry. Forestry was sold as a guaranteed tax free income for 20 years, and in the last two budgets they have reneged on both these commitments by cutting forest premiums and introducing an income levy”.

Ireland has the least forest cover in Europe at 10 per cent, as opposed to the European Average of 50 per cent. Farmers are responsible for nearly all of the new planting. The IFA said that if confidence in the sector is not restored and premium commitments honoured, there will be serious ramifications for the national forest, renewable energy and climate change strategies, which will eventually have a far greater cost to the State.

“The Government must honour its commitments to farmers, and provide assurances that the forest premiums will face no further cuts”, said Mr. Walshe. “If commitments are not honoured, farmers will not continue to plant. This will have devastating impact on the services sector including nurseries, forestry companies, production forecasts will have to be scaled back and there will also be implications for energy security in the future,” he concluded.

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