Voluntary incentive schemes for farm forestry: uptake, policy effectiveness and employment impacts

Since 1987 the UK government has operated a farm woodland policy which uses incentive payments to encourage the establishment of woodlands by farmers. This paper uses a utility‐maximizing model of farmer behaviour to explore how farmers react to incentives. An assessment is then made of farmer objectives when entering the Farm Woodland Premium Scheme and a logit model is used to determine which contextual factors are good predictors of uptake. Farm size and the proportion of the farm area in existing woodland were significantly associated with an increased probability of entry into the scheme. The paper then explores the efficiency of voluntary schemes and in particular their additionality. The paper finishes by assessing the impacts on employment of farm level forestry in comparison with other types of planting.