NZ Farmers are celebrating the new rules announced on Friday, which will limit farm conversion to forestry, but worry that loopholes remain. That is according to Toby Williams, the chair of Federated Farmers’ meat and wool committee, who said that a surge in recent purchasers has come at the expense of productive farmland.
It comes as NZ Agriculture and Forestry Minister Todd McClay announced new legislation will be introduced later this year, restricting full farm-to-forest conversions on Land Use Classification (LUC) 1-6 land. Under the changes, up to a quarter of farms can be planted in forestry for the Emissions Trading Scheme (ETS). There will also be a ban on full farm-to-forest conversions from entering the ETS for LUC 1-5 actively farmed land and an annual registration cap of 15,000 hectares for forestry entering the ETS for LUC 6 farmland.
Key changes include:
- A moratorium on full farm to forest conversions from entering the ETS for Land Use Classification (LUC) 1-5, actively farmed land.
- An annual registration cap of 15,000 hectares for forestry entering the ETS for LUC 6 farmland.
- Up to 25% of a farm’s LUC 1-6 land to be planted in forestry for the ETS, ensuring farmers retain flexibility and choice.
- Excluding specific categories of Māori-owned land from the restrictions, in line with Treaty obligations, while ensuring pathways for economic development.
McClay said the Government was focused on maintaining strong food and fibre production while supporting sustainable land use: “We remain concerned about the effect that farm conversions are having on highly productive land, particularly sheep and beef farms in Northland, the East Coast and parts of Otago and Southland.”
While Mr Williams welcomed the changes, he told Radio New Zealand yesterday that loopholes that allowed further farm-to-forest conversions remained. Williams also raised concerns about transitional measures for landowners who provided evidence that they were in the process of afforestation prior to the announcement, such as ordering seedlings.
“The idea that buying seedlings before December 2024 is an intention to plant is an absolute joke,” he said, adding it created a loophole for exploitation. “If a forester didn’t own the land, they couldn’t have had any real commitment to plant it. Having a contract on seedlings shouldn’t be accepted.”
“We’re also hearing stories of farmland being bought for conversion to forestry, with the intention of on-selling to foreign investors to get around overseas investment rules.”
Williams said forestry was important, and he wanted to see more processing and value-added programmes in New Zealand; however, his concerns related to the loss of productive farmland.
New rules have created “uncertainty” for forest owners
New Zealand Forest Owners Association (FOA) president Matt Wakelin said the new planting rules were creating “uncertainty” for forest owners, with nurseries already reporting reduced demand for seedlings: “New Zealand forest owners support integrated land use where farming and forestry co-exist. However, this new policy appears to restrict forestry rather than recognise it as a vital primary industry and core contributor to climate mitigation.”
Wakeline said the moratorium on full farm afforestation and the limiting of planting on Land Use Classes 1-6 was “unduly hurting” forest owners and much of New Zealand’s LUC6 land was ill-suited for food production but ideal for planting trees: “The restrictions placed on LUC6 land pushes planting of trees to marginal or less productive land which will have an impact on future timber and fibre supply, jobs and forestry’s ability to support New Zealand in meeting its climate change obligations.”
- To learn more about farm-to-forestry conversions, click here for Wood Central’s special feature last week.
