Farmers in Wales are to be offered an extra £825 per hectare to plant native woodlands, as ministers step up efforts to accelerate tree planting and meet climate and biodiversity targets.
The one-time incentive, available on March 4, is designed to encourage early adoption over the next three years. The plan comes amid continued pressure on the Welsh Government to increase forestry rates while balancing food production and land use.
The payment of £825 per hectare will be in line with the revised Forest Creation Grant, which currently pays up to £13,294 per hectare, including 12 years of maintenance and premium payments depending on the planting option chosen.
The enhanced incentives apply to forests that are primarily native broadleaf trees, with no more than 20% conifers, and achieve a minimum of 800 stems per hectare.
This standard is likely to prioritize small-scale native schemes, conservation belts, and agroforestry systems over large commercial conifer blocks.
Deputy Prime Minister for Rural Affairs Hugh Ilanka-Davies said the payments reflected the environmental value of native tree plantations.
“This is a great opportunity for landowners and farmers to consider whether their land could benefit from additional tree planting, such as windbreaks that provide shade and shelter benefits for livestock or the integration of agroforestry,” he said.
He added that the incentive recognizes “the ecosystem benefits provided by natural forests, including biodiversity, carbon capture and improved air quality.”
Ministers said the changes in 2026 aim to make forest creation more practical and flexible, especially for farmers.
A notable addition this year is new water-related capital support. Funding will be provided for gutters, piping and sluices to enable stream planting, helping to protect waterways from rising temperatures and agricultural runoff while maintaining access for livestock.
The contract period for the Forest Creation Grant has also been extended, allowing up to two years to complete large-scale tree planting. The adjustments are aimed at easing pressures related to seasonal constraints, contractor availability and supply chain disruptions.
Tree planting support is also linked to future sustainable agriculture plans. Farmers participating in the scheme will be required to complete a tree and hedge planting opportunity plan and plant at least 0.1 hectare by the end of 2028, based on universal action.
Forest subsidies sit on top of universal payments and are designed to encourage tree planting beyond minimum requirements. Details of the voluntary and collective actions are expected to be announced by the end of March.
Three years of enhanced incentives are suggested to encourage early participation, but with land increasingly under pressure to produce food, create habitat and sequester carbon, its uptake will depend on how well forest proposals align with agribusiness priorities.
Ministers are betting that higher fees, greater flexibility and practical infrastructure support will enable more uses and accelerate the pace of native forest creation across Wales.
