Sheep in a forest of pine trees. Illustration / AI generated.
Over the past decade, powerful overseas investors have spent nearly a billion dollars buying tracts of Kiwi farmland for forestry. Find the land in the interactive map below by Herald Data Editor Chris Knox.
Overseas forestry companies have spent nearly a billion dollars buying more than 100,000 hectares of New Zealand farmland over a decade.
If the farmland was placed side-by-side it would be larger than the combined urban cores of Auckland, Christchurch and Wellington.
Explore our map below to see the locations of the land around Aotearoa.
Foreign farm-to-forest conversions have been controversial, and the government may limit them later this year.
Purchases of entire farms by overseas investors require government approval. The Herald used the information released with these government decisions to map the land.
Overseas purchases make up about a third of the total conversions of farms to forestry - the other two-thirds were converted by Kiwis.
During the last decade only seven farm-to-forestry applications made to the Overseas Investment Office (OIO) were declined. In these seven cases, Ministers were not convinced there was enough benefit to New Zealand.
In the same period of time, foreign forestry investors have spent at least $897 million on farmland in Aotearoa, and probably much more: the value of 20 large purchases has not been disclosed.
Nearly 23,000ha of the land was bought within the last four years by a single overseas investor, with a disclosed sale price of $219.6 million. That investor was Ingka Investments Forest Assets NZ, owned by Ingka Group, the largest franchisee of IKEA stores.
One of the concerns about increasing forestry is the impact it has on land and communities -particularly from slash and other debris left behind after harvesting.
The devastation following Cyclone Gabrielle highlighted the dangers and damage forest slash can cause.
Dr Steve Urlich, Senior Lecturer in Environmental Management at Lincoln University, said the Government tightened the national rules around slash removal in 2023 but is now proposing to relax them with changes to the National Environmental Standards for Commercial Forestry.
Beef and Lamb New Zealand, the industry organisation representing sheep and beef farmers, said farm sales and conversions have happened at an “alarming rate” for a decade, and when good farming land is planted out in trees it affects jobs and exports in the meat sector.
In May, Federated Farmers launched its “Save Our Sheep” (SOS) campaign, calling for urgent action to support New Zealand’s sheep industry.
Forestry advocates point to the economic benefits of forestry and wood processing, including $6 billion in export value and 40,000 jobs. Forestry is New Zealand’s fifth largest export earner according to the New Zealand Forest Owners Association (NZFOA).
Chief Executive Elizabeth Heeg previously told the Herald, “We are known for our sustainability...our ability to manage forests effectively, and with good environmental outcomes.”
To buy sensitive land, which includes any non-urban land larger than 5ha, an overseas investor must show how their investment will deliver tangible benefits to New Zealand – such as job creation, increased export revenue or environmental improvements.
Benefits may also include increased public access, protection of historic heritage or alignment with other government objectives.
Land Information New Zealand (LINZ) says the benefits must be proportionate to the sensitivity of the land and the nature of the investment.
The OIO cannot consider any detriments when making its decision, aside from those that relate to water bottling.
Investors buying land already planted for forestry, or land to be used for forestry, or more than 1000ha of forestry rights in a calendar year, must still apply through the OIO.
They can also on-sell the land and forestry rights to other overseas buyers, who must also apply for consent.
In these cases, no benefit to New Zealand needs to be demonstrated, only whether the land will continue to be used for forestry.
The Government has moved to limit forestry conversions and its “farm-to-forest” ban is set to become law later this year.
Only 6319 hectares have been approved since the new policy was announced and 2024’s 11,794 ha was already well down on the 2022 peak of 27,788 ha.