Some forestry contractors have contacted their banks to notify them that they cannot make repayments on harvesters and other equipment because they have no work, according to one contractor who contacted the Irish Farmers Journal.

Affected contractors claim they have no work because of delays by the Forest Service in issuing of felling and other forestry licences.

“Some banks are understanding and agreeable to delayed payment,” the contractor said. “Other lenders are not.”

He said that about one-third of the 150 or so contractors in the country are particularly badly hit because they work only for farmers and other private forestry owners.

Prices are as low as €40/t for pallet wood on the roadside

Contractors who regularly work for Coillte are in a better position because it harvests timber on a continual basis to supply long-term contracts.

Adding to the problem of delayed licences, some landowners who did get licences in 2019 have not yet started felling because they say timber prices are too low at the moment.

“Prices are as low as €40/t for pallet wood on the roadside,” he said. “It was €55/t this time last year. Pulp wood is making €25/t to €27/t at the moment. At least pulp and pallet wood are selling and moving. Commercial timber is meeting poor demand both for export and for home use for construction.”

Freeing up the issuing of licences would generate work for contractors, he said. “But it looks like it will be too late. We need a compensation package from the minister. This whole problem is not of our making.”