Schroder said the Rotorua-Taupō region, among others, had a mix of high-performing sheep and beef farms and marginal land, making it attractive for forestry investment.
“While forestry has a useful place in our primary sector, the rapid conversion of entire farms has raised concerns amongst the community about rural depopulation, loss of food production and the erosion of local community infrastructure,” he said.
“The proposed legislation goes some way to getting the balance right.”
The Government planting proposal is chiefly based on land-use capability (LUC), ranging from one (highest) to eight.
Legislation would restrict conversions to exotic ETS forests on high to medium-versatility farmland (LUC classes 1-6) and introduce a limit of 15,000ha per year for exotic conversions on medium-versatility farmland (class 6).
The annual limit will be allocated by a ballot process, while allowing for up to 25% of a farm’s LUC 1-6 land to still be planted in exotic forestry for the ETS.
Land protection
Schroder said capping ETS eligibility on LUC 6 land and excluding LUC 1-5 from conversion helped protect the most productive land.
“Allowing up to 25% of a farm to be planted in exotic forestry means landowners still have the flexibility and choice to diversify and manage erosion-prone areas.
“However, the 15,000ha annual cap may still allow significant change, and the ballot system could create uncertainty for landowners.”
Schroder said if the ETS made a clearer distinction between long-term carbon storage and forestry plantations for harvest, it might be easier to balance environmental goals with the needs of rural areas.
Federated Farmers acknowledged the value in maintaining flexibility for landowners, he said.
“This legislation doesn’t oppose forestry; it supports more strategic long-term thinking about how we use our land.
“The challenge is protecting the future of rural communities while still allowing room for diversification when it makes sense.
“This legislation is a more balanced approach and is a positive step forward for rural communities.”
Long-time forestry consultant Jeff Tombleson said the proposed legislation had been signalled before the last election and “imposes little surprise” on the industry.
Since the 1990s, he said farm forestry had not occurred on any scale.
“It almost ceased. Land prices became prohibitive.”
Based in Rotorua, he said the current harvest of the 1990s plantings was 75% complete.
The land involved has largely been replanted, along with a second planting “spike” of up to 300,000ha of new forests on sheep and beef country from 2018-2025.
With relatively high returns for carbon, Tombleson predicted this “spike” would have continued if restrictions were not introduced.
He said the largest areas of new forests in New Zealand were in Auckland/Northland, Southland and the Central Plateau (Rotorua/Taupō).
The Government bill proposes a start date of October 31.
“We will process applications to register in the ETS under the current rules until the restrictions come into effect,” McClay said at Fieldays.
