Many are calling on the Government to reconsider its decision amid concerns over long-term damage to the sector
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Fears are growing that millions of trees in Scotland could be cut down after the Scottish National Party slashed funding.
Seedlings being grown for new woodlands as part of the Scottish Government's expanding forestry targets may have to be destroyed.
Ronald Christie - who has been growing 130 million trees - says with the budget cuts, the market will dry up leaving skilled workers out of jobs.
He is calling on the Government to reconsider its decision amid concerns over long-term damage to the sector.
Fears are growing that millions of trees in Scotland could be cut down after the Scottish National Party slashed funding
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The SNP's climate change commitments include increasing tree-planting to 18,000 hectares annually from this year - the equivalent of around 28 million trees across an area about three times the size of Dundee.
In December, the Government announced that funding was being cut by 41 per cent, from £77.2million to £45.4million.
The new budget means only 9,000 hectares were planted in the year from April.
Christie, the owner of Christies of Fochabers said the cuts were an "absolute shocker".
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"We've been encouraged to grow trees by the government to reach this target of 18,000 hectares," he told the BBC.
"To grow trees takes a three-year cycle and unless we're told in the next few weeks if there is funding available, this whole lot will have to be destroyed."
He added that the funding would amount to around 10 million tree seedings being ripped up and burnt.
Christie warned that the same could happen next year if the money allocated remains the same.
Seedlings being grown for new woodlands as part of the Scottish government's expanding forestry targets may have to be destroyed
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Stuart Goodall, from Confor (Confederation of Forest Industries), said the need for trees to tackle climate change had "galvanised" the sector.
He said: "Businesses had been investing millions of pounds, training people up and we were just starting to see that confidence seeping into the sector.
"Something like this is going to be a big blow and that confidence will take many years to get back."