Another 40,000ha of NZ sheep and beef farms sold for forestry
Almost 40,000ha of sheep and beef farms in New Zealand has been sold for conversion to forestry in the past eight months, according to a new report.
The independent research released by Beef + Lamb New Zealand (B+LNZ) shows that sales of beef and sheep farms, particularly for carbon farming, are continuing 'at an alarming rate'.
Of particular concern, the farm organisation said is a significant shift towards productive land being sold.
The research by Orme and Associates shows a further 38,921ha has been confirmed as sold since the last report in September 2024.
Revised confirmed sales in 2023 now total 29,518ha and in 2024 now 30,483ha – that figure is expected to rise as further sales are confirmed.
The report shows that sales through Overseas Investment Office approvals and to carbon-only forestry entities continue to dominate.
Forestry
The total amount of whole sheep and beef farms sold since January 1, 2017 is now more than 300,000ha.
B+LNZ's conservative estimate is that more than two million stock units have been lost to afforestation over the past 8 years.
New Zealand's Agriculture and Forestry Minister Todd McClay yesterday (Tuesday, June 10) introduced long-awaited legislation that will put a stop to large-scale farm-to-forestry conversions
'For too long, productive sheep and beef farms have been replaced by pine trees in the race for carbon credits. That ends under this government,' McClay said.
'The Climate Change Response (Emissions Trading Scheme – Forestry Conversions) Amendment Bill will restrict wholesale conversions of farmland to exotic forestry by stopping LUC (Land Use Classification) 1-5 land from entering the ETS and capping new ETS registrations on LUC 6 land.
'It will also protect farmers' ability to diversify – allowing up to 25%of a farm to go into trees, while stopping the kind of blanket ETS planting that's been gutting rural communities in places like the East Coast, Wairarapa, the King Country, and Southland,' the minister added.
The bill proposes time-limited transitional exemptions in rare cases for people who were in the process of afforestation prior to these changes originally being announced on December 4, 2024.
The legislation is now before parliament and is to come into force October 2025.
Farms
Kate Acland, B+LNZ chair, said that the updated whole farm sales figures reinforce the need for action.
'While we appreciate the government's announcement this week about legislation being introduced to restrict wholesale conversions based on land use classes, the numbers show whole-farm sales for conversion to forestry for carbon credits are continuing at pace.
'Anecdotally we're still hearing of a significant number of farms being sold this year, despite the government announcing the limits last year.
'We're concerned that some sales are continuing on the basis of intent to purchase land before the limits were announced. We urgently need the government to tighten the criteria around proof of intent to purchase,' she said.
Acland also highlighted the trend of land traditionally well-suited for pastoral farming being increasingly purchased for conversion.
'B+LNZ is not anti-forestry. In particular, we strongly support the integration of trees within farms, which we believe is a better approach.
'Farmers know their land and can plant the right trees in the right places, without affecting overall levels of production.
'Instead, we're seeing blanket pines replacing sustainable food production.
'We're also hearing significant concerns from neighbouring farmers about the impacts of a lack of pest and fire risk management around recently converted areas of land,' Acland said.
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