Thursday, March 28, 2024

Farm forestry sets new direction

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The next Farm Forestry Association conference in Rotorua on May 16-20 will begin to chart a reformation for new and existing members.
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Small scale forestry is likely to have a major role in sustainable land use for New Zealand’s future, organising chairman Graham West says.

“Many issues are aligning and giving a clear indication the future economic model for land use will need to integrate more tree crops.”

Rising market demand for environmental stewardship and sustainable products has accelerated Government policy toward a trend that will incentivise or regulate for change to land use that has better strategic positioning for future generations.

Small and medium scale forests less than 1000 hectares have about 14,000 owners. A 2015 survey found 36% or 5000 are farmers but many are urban investors involved in syndicates or joint ventures. 

They are New Zealanders, not overseas corporates, and many have a passion for investing is something that feels right. They enjoy visiting forests and seeing a tree crop rapidly grow. Their connection to the land is no different to other rural interests, he said.

However, like all primary sectors, the group faces issues and decisions. 

The rules signalled around the Emissions Trading Scheme will impact significantly on recent plantings and future species options. 

The National Environmental Standard for Plantation Forests is about to be reviewed and possibly tightened. 

Regional councils are introducing regulations and incentives schemes that frequently change the rules for forestry land owners and the rules around fumigation of export logs are about to change.

All those matters indicate small-scale forest investors need to have their business and political interests managed and protected by an effective professional lobby group. 

That group is the association but as an organisation run largely on a voluntary basis it will have an increasing load to bear, West said.

“Our conference theme, Fast Forward, is to encourage all to seize the opportunity and to engage in the many decisions.”

This year the association aims to engage young people by funding the attendance of 15 to 20 young rural people. 

“Small-scale forestry in NZ is at a watershed moment.

“The combination of timber demand, carbon credits and incentives create fresh business models to positively structure forestry cashflows,” he said.

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