By integrating trees, both natives and exotics, on farms we will see landowners diversifying income, improving land productivity, addressing environmental issues like erosion, water quality and climate change, increasing habitats for a range of native species and enhancing our natural landscapes.
It will also help New Zealand move towards a low-emissions economy.
We already know many farmers have identified these benefits.
Of the 2100 Emissions Trading Scheme participants, 1700 are farm foresters.
At the farm forestry conference in Rotorua we heard small scale forestry is seeing average annual returns of $1100 a hectare, not including income from carbon credits.
We’re aiming to increase the planting of trees on farms through the One Billion Trees Fund, which has $120 million to support landowners to get the best out of their land.
The fund has a target of planting two-thirds natives and makes higher payments for the most erodible land.
To date most grants approved through the fund are for native planting projects, with all grants approved for less than 140 hectares.
We are aware of concerns raised by particular local communities around whole farm conversion to forestry.
This is not being subsidised by the Government.
Rather, it is market driven – particularly with high carbon and log prices.
As markets change, so too does land-use.
Take, for instance, the last decade or so where more forestry was converted to farmland at more than 7000 hectares a year.
Or the fact the long-term trend is a reduction in the total number of farms because of things like farm amalgamation and an aging population.
Or the high kiwifruit prices seeing some forest land bought to be converted to kiwifruit.
It is all variable because changes in land-use are driven by the aspirations of individual landowners, sector innovation and those market drivers I’ve already mentioned.
That is why Te Uru Rakau is increasing its regional presence to build even closer relationships with landowners and ensure long-term, sustainable land use that supports our goals as a country.
In this context, it’s important to note that achieving our goal of planting one billion trees requires only 230,000 to 430,000 hectares of new planting.
If all planting occurred by integrating trees on farmland that would equate to just over 3% of all farmland across the country.
That does not suggest a major conversion of farms to forests and that is not what we are aiming for.
We know how important farming is to our economy and will continue to be.
However, we do need to work together to address wider environmental issues and improve land-use to support a balance between volume and value and reinforce our reputation as a world leader in sustainably grown, low-emissions, high-value natural products.
Achieving our goals is an ongoing and evolving process and we all have an important role to play.
The Government is committed to supporting communities to embrace the opportunities in front of us that have arisen from global and local drivers.
The key takeaway here is we have an opportunity to see farming and forestry work together to get the best outcomes for the country.
