The need for diversification has been highlighted by industry experts following announcements overseas that the fight against climate change is slowing.

The planting of woodland strikes a benefit to land owners on a multi-faceted level, it allows for the storage of carbon to support the push towards carbon neutrality, benefits biodiversity across ecosystems and can provide income to landowners when the trees come to maturity.

The government outlined their intention to become carbon neutral by 2050, with the forestry sector scheduled to play a major role in proceedings. However, news from Finland, who themselves have an earlier deadline of 2035, has raised questions.

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It has been reported that the reality of climate changes has pushed them back decades, with the vast Taiga boreal forests drying out causing Co2 to begin venting back into the atmosphere. The increase in temperature has also impacted large areas of peatland which is also creating a knock-on effect for flora and fauna. This worrying development brings into question the possibility of the UK achieving their environmental targets given Finland’s stronger starting position.

Keith Muir, associate director at Davidson & Robertson has been monitoring the situation and has raised concerns that the current plan is not a sustainable one given the drastic changes in climate.

He said: “We should not continue to plant the same species without looking further afield and observing and learning from our neighbours.

“Our forests must be resilient and that means more diverse. Monocultures of broadleaf or conifers may not be successful in the future. Pests and disease are gaining bigger footprints – consider the eight toothed Spruce Bark Beetle, the Oak Processionary Moth, Dothistroma Needle Blight, and Ash Dieback to name but a few.

“Swedish research indicates the relationship between species richness and multiple ecosystems were higher with five tree species than with one. Importantly, soil carbon storage was 11% greater, biomass production was 54% greater, and berry production up 45%.”

Mr Muir suggests that landowners must be bolder with their planting choices if the Scottish timber industry is to have a sustainable future and to continue the path to carbon neutrality.

“We must plant and properly manage our land with a diverse range of species able to deal with drought or flood on our temperate island. We need sawmills that can work with different species, and we need architects that are not afraid to use non-standard species to create the homes of the future,” added Mr Muir.

Following the budget announcement David & Robertson state that there’s a pressing need for a flexible rural package tailored to specific sites, as without it, forests may struggle to deliver the multi-benefit outcomes of the past.

Historically, the forestry sector has benefited from tax breaks that increased woodland cover in the UK, but with government finances tight, this sector is now under scrutiny.

While tax exemptions on felling procedures remain, commercial forestry will face a 20% tax starting April 2026, with significant reductions in Business Property Relief. A government review of taxation is set for 2025, creating further uncertainty, while minimum wage and national insurance increases will directly or indirectly impact the rural sector.

It's unclear how Scotland's woodland sector will respond to budget changes and potential cuts in grants.

This article originally appeared in our sister title, the Scottish Farmer.