AMC funding at the heart of the National Forest

AMC funding and a successful National Forest Tender Scheme application has put a Leicestershire farm right at the heart of England’s new National Forest.

Now, six months after buying Tempe Farm at Swepstone, near Ashby-de-la-Zouch, landowner Dr David Donald has trees occupying two-thirds of his 144 acres.

When David took the decision to purchase Tempe Farm he turned to the specialist rural finance service offered by AMC via local Agents, Fisher German in Ashby-de-la-Zouch.

“David approached us about the purchase of Tempe Farm, essentially 144 acres of arable and grassland, with two farm buildings which were not being used. Whilst this was a land purchase, the difference was the location of the land and what he planned to do with it,” said David Merton, Partner with Rural Property Surveyors, Fisher German.

“The property lies within the 200 square miles spanning Staffordshire, Derbyshire and Leicestershire designated for the new National Forest. The purchase was conditional on a successful application to the National Forest Tender Scheme, set up to encourage the conversion of productive agricultural land to woodland in this area of the Midlands.

“We helped at all stages in the process and once we heard the tender application had been successful AMC quickly approved the funding,” said Mr Merton. 

Successful tender

Tempe Farm features a range of habitats making it ideal as a conservation area. The 144 acres runs along the spine of a hill and includes a mix of meadowland and grassland. The Gilwiskaw brook, part of the River Mease SAC (Special Area of Conservation), forms the farms western boundary.

“Tempe Farm was an opportunity to invest in environmental improvement. I owned 23 acres of land between Ashby-de-la-Zouch and Burton-on-Trent and had been successful there with an application to the National Forest Tender Scheme. This is now planted up.

“Tempe offered the opportunity for a much larger woodland creation project. I put in my application in March 2006 and it was approved in July.  I purchased the property at the end of August and planting started mid-October and ended in April this year, using predominantly oak and ash, with elder and willow in the wetter areas,” said David.

An investment in the future

“This is an investment in the future. I have an income from the land through the Farm Woodland Premium Scheme, an annual payment of £300 per hectare for the next 15 years. The meadowland will continue to be grazed, although at a lower level than previously, and next year the re-seeded parkland will be grazed as well. Finding appropriate uses for the present agricultural buildings will also be important or the long-term future of the farm.

“I chose AMC to fund this project because they offered a better understanding of rural enterprises and offered sensible, practical advice, as well as funds at a competitive rate. I have taken out an interest-only, variable rate loan over 20 years which offers me the flexibility to pay off lump sums in the first five years without breakage costs, providing I do not go below 50% of the original amount borrowed. This is a big bonus to me, and with other schemes in the pipeline I am sure I will be approaching AMC again in the future,” said Donald.

The Tender Scheme

Successful scheme applicants receive their payments in two instalments: 80% in Year 1 after completion of planting and other works, and the rest five years later. The Scheme is unique. In addition to the standard planting grants that are available elsewhere in the UK, under the Scheme, funding of other works and some compensation for the difference in value between agricultural land and woodland can be available. Ownership of the land is retained by the landowner, as well as the responsibility for their scheme and its establishment.

The Tender Scheme is highly competitive. The applicant tells the National Forest Company what woodland they want to create and manage and how much this would cost. The NFC then selects a limited number of schemes to fund each year based on which scheme they believe delivers the greatest benefit to the creation of the new National Forest. The Scheme enables landowners to diversify their landholding and business interests, create commercial and/or amenity woodland and can be linked with work that enhances or creates opportunities for recreation, access and tourism.