THE future of Scottish native woodlands is brighter than ever largely due to the number of farmers, landowners and crofters who, fearing cutbacks in financial support through the Common Agricultural Policy, aim to take advantage of payments from tree- planting schemes.

These expansion plans are welcomed by a number of organisations, not least the Scottish Office Agriculture, Environment and Fisheries Department, the National Farmers' Union of Scotland, Scottish Natural Heritage, Scottish Woodlands and the Royal Society for the Protection of Birds.

David Henderson-Howat, chief conservator for Scotland for the Forestry Commission's Forestry Authority, said: ''It is fair to say that over the course of many centuries we have lost a large area of our native woodland resource but we are leading a tremendous effort by many people and organisations to protect the native woodlands.

''We still have and to establish new ones. The prospects for native woodlands have probably never been better - solid progress is being made to ensure they are protected, well managed and expanded.''

Henderson-Howat was speaking at the launch of the Forest of Spey, where timber production will work together with nature conservation, farming, tourism and landscape enhancement and job creation.

Commission chairman Sir Peter Hutchison said similar new tree- planting and regeneration programmes are under way in Glen Affric, Grampian, Central Scotland, the Borders and the Western Isles.

Of the Speyside scheme, he said: ''Jobs are vital to communities. The old adage 'a forest that pays is a forest that stays' is still apposite, and a major interest of the wider community is that these forests continue to produce high-quality timber into the future.''

For many farmers there are opportunities for early grant payment that will help offset falling incomes from traditional agricultural enterprises. The Scottish Agricultural College has pointed out that in the first three months of this year 1397 hectares, from arable land in the North-east to hill land in Argyll, have been put forward for either new planting or natural generation, attracting grant income of #4.5m.

''We have more than 120 farmers in the first quarter seeking advice - an indication that landowners have an immediate need to raise income or capital to help them out of financial difficulties, while others see both the short-term grant benefits and longer-term farm improvement and timber income,'' said senior woodland adviser Philip Gordon.

The Farm Woodland Premium Scheme, set up in 1997 and revised in 1998, is an example of how farmers are looking to woodland restoration and new plantings as a money earner.

According to the Forestry Commission, in the financial year 1996-97, grant assistance was paid on 12,583ha of native woodland planting, management, restocking, regeneration or improvement work in Scotland and that does not include the native woodland projects undertaken by the Forestry Commission's Forest Enterprise.

Under the scheme, planters receive Woodland Grant Scheme (WGS) grants for establishment and Farm Woodland Premium Scheme annual payments for 10 to 15 years. The latter requires that more than half the area is planted with broad-leaved trees and/or native Scots pine.

The WGS grants of #4.5m were supplemented in some cases by Challenge Fund Grants and Woodland Improvement Grants. During 1996-97 15,800ha of Forestry Commission native woodlands were subject to biodiversity action plans to protect endangered habitats taking the total area of native woodland projects to well over 28,000ha.

The payment rates range from #60 per ha per annum to #300

per ha depending on the category of land.