Softwood Plantations on your property

How do I get a softwood plantation on my property with Forests NSW?

If you own suitable plantable land in NSW you have a unique opportunity to diversify your income with an annuity agreement with Forests NSW. As part of the agreement Forests NSW will prepare the site, plant the trees, manage the plantation and market the trees.

You will retain clear title to the land and receive an annuity based on the value of your land and its suitability for forestry. Without incurring any up front costs, you will receive a regular annual income from the first year of the plantation.

Why is Forests NSW planting trees?

The focus of Forests NSW' softwood plantations program is to maximise the financial returns from the sale of log products. However, other opportunities such as the sale of carbon credits are becoming an important new area of business.

The softwood plantations being planted now will provide a major resource for the timber industry, generating employment and investment in rural areas. Meanwhile, softwood plantations are reducing the risk of erosion; reducing the impact of salinity; providing shelter for livestock and suppressing weeds.

Regional benefits

Timber growing and processing industries are major rural employers with nearly 42 per cent of the population of the Shires of Tumut, Tumbarumba and Holbrook, supported by the softwood industry.

Annuities

An annuity arrangement isn't complicated. Your property is assessed for its suitability for forestry and a proposal is put to you. If both parties agree, a formal agreement is signed. The site is prepared and the seedlings planted. You are paid regularly by Forests NSW for the life of the plantation which will be around 30 years.

Forests NSW will negotiate an agreed land rental with you, based upon a combination of land value and site productivity for forestry purposes.

What sort of land is Forests NSW looking for?

Forests NSW is looking for land close to its existing 210,000 hectare softwood plantation estate - the largest softwood plantation estate in Australia.

Forests NSW has a preference for sites which:

are large, cleared properties (areas as small as 40 hectares may be considered if they are very favourably situated next to an existing plantation)
were cleared prior to 1990
have good local access
have soils which are moderately fertile, well drained, and at least 50cm deep
have a long-term average annual rainfall greater than 700mm
have less than 18 degrees slope
are not on broken country
are less than 80-100 km from the main market for timber products, although this may vary with the value of the products, the size of the plantation and road quality.

As Forests NSW continues to develop markets for the environmental services provided by planted forests (including salinity control and biodiversity enhancement) annuity arrangements may extend to land which does not meet these specifications.

Landholder preparation

You need to confirm that you have secure title to the land and have title details; decide where the plantation boundaries should be and mark your preferred location for roads. Forests NSW will discuss management, grazing policy and harvesting intentions.

Agreements with Forests NSW

The agreement is a formal, legal contract between you and Forests NSW. In some cases, you may also have an agreement with a third party investor. The agreements detail the rights and obligations of both parties, including issues such as access to your land.

Forestry & Carbon Right

As the plantation takes many years to grow to maturity, Forests NSW requires the registration of a Forestry Right and Carbon Right over your land. These rights are recorded on the title to your land. The Forestry Right protects Forests NSW' investment by allowing access to your land to establish, maintain and harvest the crop.

The Carbon Right grants carbon sequestration rights to the plantation.

Landholder responsibility

You will continue to pay all rates and levies and retain legal responsibility for pest plants and animals. You will also continue to be responsible for fences and livestock management.

Mortgaged land

For an agreement to go ahead, the mortgagee must give consent to the proposal and to the Forestry Right and Carbon Right.

You can still sell your land

You are free to sell your land, as long as the arrangement transfers to the new owner.

Tax

As each person's taxation position is different, we recommend you discuss any tax issues with your accountant.

Grazing

Livestock must be fenced out of the plantation area until the young trees are established. When the trees are around two metres high, which may be as early as 3-4 years after planting, stock can graze in the area. Grazing is an important plantation management tool because it reduces fire risk.

Protection

Plantations are protected from fire by a connected firebreak access network and adequate water points. In areas that are close to the existing Forests NSW' softwood plantations, there is a well developed fire suppression network involving fire spotting towers, aircraft and helicopters, tankers and earth-moving equipment.

Market outlook

Consumer demand for environmentally-friendly building products will ensure a continued demand for softwood. The embodied energy in wood is one-tenth that of steel, concrete and brick and one-hundredth that of aluminium.

With continued technical research and market development, softwoods can win further markets for speciality and structural products.

Plantations capture greenhouse gases, such as carbon dioxide from the atmosphere. In the future, a value may be put on the capture of this carbon, and carbon investment has already been of benefit to the plantation business.