Welsh government boosts woodland grants with £825 per hectare incentive

Welsh farmers are being offered an additional £825 per hectare to plant native woodland, as ministers step up efforts to accelerate tree creation and meet climate and biodiversity targets.

The one-off incentive, available on 4 March, is designed to encourage early uptake over the next three years. It comes amid continued pressure on the Welsh government to increase woodland creation rates while balancing food production and land use.

The £825 per hectare payment will sit alongside revised Woodland Creation Grant rates, which now pay up to £13,294 per hectare, including 12 years of maintenance and premium payments, depending on the planting option selected.

The enhanced incentive applies to woodland that is predominantly native broadleaf, contains no more than 20% conifers and achieves a minimum of 800 stems per hectare.

The criteria are likely to favour smaller-scale native schemes, shelterbelts and agroforestry systems rather than large commercial conifer blocks.

Huw Irranca-Davies, the Deputy First Minister with responsibility for Rural Affairs, said the payment reflects the environmental value of native planting.

“This is an excellent opportunity for landowners and farmers to explore whether they have land which would benefit from additional tree planting, such as integrating shelterbelts or agroforestry to provide shade and shelter benefits to livestock,” he said.

He added that the incentive recognises “the ecosystem benefits delivered by native woodland, including improved biodiversity, carbon capture and air quality.”

Ministers say the 2026 changes are intended to make woodland creation more practical and flexible, particularly for working farms.

A notable addition this year is new water-related capital support. Funding will be available for troughs, piping and water gates to enable riparian planting, helping protect watercourses from rising temperatures and agricultural runoff while maintaining livestock access.

The Woodland Creation Grant contract length has also been extended, allowing up to two years to complete larger-scale planting. The adjustment is aimed at easing pressures linked to seasonal constraints, contractor availability and supply chain disruption.

Tree planting support also links to the incoming Sustainable Farming Scheme. Farmers entering the scheme will be required to complete a Tree and Hedgerow Planting Opportunity Plan and undertake at least 0.1 hectare of planting by the end of 2028 under a Universal Action.

The woodland grants sit on top of the Universal Payment and are designed to encourage planting beyond the minimum requirement. Further details on Optional and Collaborative Actions are due before the end of March.

The three-year enhanced incentive signals a push for earlier participation, but with land increasingly under pressure for food production, habitat creation and carbon sequestration, uptake will depend on how well woodland proposals align with farm business priorities.

Ministers are betting that higher rates, added flexibility and practical infrastructure support will unlock more applications — and accelerate the pace of native woodland creation across Wales.