The initial work of clearing the land and planting the trees, a cultivar which is small in size but thick with flowers, will be done by the town's long-term unemployed.
Up to 15 adults could be employed under the initiative. Mr Flavell said nearly 46 per cent of people in the region gained at least some of their income from benefits.
"This project could be the first of many which will help our people get off benefits and back on their feet."
Northland College principal Jim Luders described the scheme as "really exciting". Producing manuka honey was a way for Maori to regain economic independence through their land. The farmland to be planted has potential for erosion. The manuka would help stabilise the land.
Alongside the farm and forestry academy with 40 students, Northland College also has 10 students in a hospitality academy and 20 in a military academy.
Earlier in the day, Mr Guy outlined other plans to boost the region's earnings from farming and forestry. Several Maori trusts in Te Hiku were working on setting up a sheep and beef farming collective that could cover 17,000ha and double meat production within five years. Another nine Maori trusts had formed the Te Tai Tokerau Maori Forestry Collective and were about to plant 800ha of land. Maori were investing $1.2 million, partners $115,000 and the Government $270,000.