What is the Farm Woodland Premium Scheme? 
The Farm Woodland Premium Scheme (FWPS) was established under The Farm Land and Rural Development Act 1988 and opened to applicants running an agricultural business in 1992 as a successor to the Farm Woodland Scheme.
The FWPS was designed to encourage the creation of new woodlands on farms to enhance the environment and as a productive alternative land use. The FWPS is linked with the Forestry Commission Scotland's Woodland Grant Scheme (WGS). The WGS offers grants towards the cost of establishing and maintaining the woodland while the FWPS offers annual payments for 10 or 15 years to compensate for the loss of agricultural income.
The FWPS was closed in 2002 to new applicants to be superceded by The Scottish Forestry Grants Scheme Farmland Premium.
What work is still being done?
Although closed to new applicants we are still committed to funding 2,019 scheme participants covering an area of 40,390 hectares with an annual budget of £5.3m. This financial commitment will last, in some cases, to 2022.
Rates of annual payments are reviewed every 5 years taking into account relevant factors including trends in income from comparable agricultural land. Any changes in rates have to be approved by the Scottish Parliament. The next review is due to take place in 2011.
Where can you find out more?
The Forestry Commission Scotland website contains further information about Forestry schemes, and general information about Forestry in Scotland.