Will the Trees You Plant Be a Profitable Investment?

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Will the Trees You Plant Be a Profitable Investment? Official journal of the New Zealand Farm Forestry Association February 2018 Will the trees you plant be a profitable investment? Naturally durable timbers working well Challenges for harvesting small forest blocks The fantastic run on log prices Is it time for joint ventures? Promoting the wise use of trees for profit, amenity, sustainability and the environment WOOD-MIZER® SAWMILLS A RBORGEN ® ‘WORLD’S NUMBER 1 SAWMILL’ Over 60,000 Machines Sold Wood-Mizer sawmills: ✓ Use the latest in thin kerf technology. ✓ Produce more timber from fewer trees. ✓ Are adaptable to all sawing situations. ✓ Are flexible in operation. ✓ Have low operaing costs. ✓ New or used. 7 sawmill models and 28 engine options. Personal to Professional sawmills with output from 2 to 100 cubic metres per day. Recover your own timber or mill for others. Contact: Paul Marshall (B.For.Sc., M.Sc., M.N.Z.I.F.) Director Wood-Mizer NZ Ltd. Phone: 03 688 2032 • Fax: 03 688 7676 Mobile: 021 331 838 EMail: [email protected] www.woodmizer.com Aon New Zealand. Market leaders in forestry insurance. Aon places more standing timber insurance than any other broker in NZ. We offer a range of specialised cover for forestry businesses of all sizes. Protect your business from the unexpected. Contact our Aon standing timber specialist broker for more information or an obligation-free quote. 0800 800 398 I [email protected] I aon.co.nz Vol 39 No 1 February 2018 ISSN 0111-2694 Contents If you plant trees during the next few years, will they be a profitable investment ..............................................................................................3 Hamish Levack Is it time for joint ventures? ......................................................................5 Howard Moore Carbon insurance and the Emissions Trading Scheme ................................8 Jo McIntosh and Ollie Belton Goulters Gully field day ..........................................................................10 Julian Bateson Logging day demonstration ....................................................................11 Julian Bateson Eastwoodhill arboretum .........................................................................14 Alex Davies Logging day demonstration 11 Annual conference in Nelson ..................................................................18 Radiata pine for the next generation ........................................................20 Michael Watt and Harriet Palmer Naturally durable timber posts working well .............................................24 Paul Millen, Clemens Altaner and Harriet Palmer Challenges and opportunities for harvesting New Zealand’s farm forest blocks ...........................................................27 Kristopher Brown Action Groups weekend .........................................................................35 Julian Bateson The fantastic run on log prices and demand continues .............................36 Allan Laurie Emissions Trading Scheme now ten years old ..........................................39 Stuart Orme Durable timber performing well 24 A bad year for forestry safety .................................................................41 Julian Bateson The Kapiti Proposed District Plan – What have we achieved and what have we learned ................................42 Don Wallace Real estate exemption, good news for forest owners ...............................44 Andrew McEwen Regulars From the President ..................................................................................2 From the Patron ....................................................................................35 Market report ........................................................................................36 Health and safety ..................................................................................41 Association contacts .............................................................................45 Harvesting forest blocks 27 Membership ..........................................................................................46 The opinions expressed in Tree Grower are not necessarily the opinion of, or endorsed by, NZFFA, editorial staff or the publisher. Every effort is made to ensure the accuracy of the information, but neither NZFFA nor the editor accept liability for any consequences arising from reliance on the information published. If readers have any doubts about acting on any articles they should seek confirming, professional advice. New Zealand Tree Grower February 2018 1 President’s comment Official Journal of the New Zealand Farm Forestry Association From the President President Neil Cullen Phone: 03 415 8470 Neil Cullen Email: [email protected] National Head Office As predicted in my column in November’s Tree Grower, the new government Level 9 is taking a much more active role in the forest industry. They see a key role for The ForestWood Centre forestry in boosting regional development, creating quality jobs, meeting climate 93 The Terrace change targets, providing opportunities for Maori land use, and supporting sustainable land use. Wellington 6011 With Minister for Forestry, Hon. Shane Jones inside Cabinet, his focus Phone: 04 472 0432 on enacting the target of planting a billion trees over ten years is resulting in PO Box 10 349 developments. Initially this is coming through Crown Forestry which has been The Terrace allocated funds to secure land for new planting and contract the necessary increase Wellington 6143 in nursery production of seedlings. Further action will be required to provide Email: [email protected] the right incentives and advice for land owners to commit to changing their Website: www.nzffa.org.nz land use to forestry. Depending on location, land class and preference this need not be production forestry but could include native planting and revegetation or Editor conservation planting with exotics. The Minister is setting up a Ministerial Advisory Group of industry Julian Bateson representatives to provide expert and practical advice on which policies will Bateson Publishing Limited produce the results this government is seeking. Small-scale growers will be PO Box 2002 represented there and we will also be meeting the Minister separately to explain Wellington how the NZFFA is able to provide both advice and examples across the country of Phone: 04 385 9705 how forestry is a profitable and rewarding land use. Mobile: 021 670 672 With the sustained period of buoyant log prices, harvesting small scale forests Email: [email protected] planted in the late 1980s and 1990s has increased markedly and record quantities of logs have been exported in 2017. Some forest owners have taken the opportunity Advertising Management to cash in on their asset by selling or harvesting at a young age with all logs being Bateson Publishing Limited exported. This has resulted in concerns from local processors that their future Phone: 04 385 9705 supply of logs is being jeopardised. All forest owners have the right to manage and sell their forests to their best advantage, but independent advice should be sought to ensure that the price Subscriptions: $50 annually for New Zealand, offered is the best available and that local industry has the chance to compete for $NZ55 for Australia, $NZ65 for the rest of the those logs. The high prices are, of course, providing some great rewards to our world, including postage. members who are harvesting, with reports of sellers located close to mills and ports Subscription enquiries and changes of address netting over $100 a tonne on average. Members are encouraged to provide details should be sent to NZ Farm Forestry Association, of their returns to Allan Laurie via the Tree Grower Editor so they can be published PO Box 10 349, The Terrace, Wellington. in table format. Anonymity is assured and the details required are in last May’s Tree Phone 04 472 0432 Grower. This information is of use in providing a picture of how forestry rates as a The Tree Grower is published in February, May, land use option. August and November. One of the projects funded this year by the Forest Growers Levy Trust Board is The Tree Grower is partly funded one proposed by Graham West. It will provide information which assists small-scale by the Forest Grower’s Levy growers at the time of harvest to engage a harvesting management contractor and achieve the best possible outcome. With a government taking a more ‘hands on’ approach to forestry, not all their actions will please all parts of the industry. A current proposal to include cutting rights for forests over 50 hectares in the Overseas Investment Act could deter foreign investment, as the process can be expensive and time consuming. The NZFFA will be making a submission to try and ensure that members selling opportunities are not unnecessarily restricted. All members have registration forms for the conference in Nelson from 6 to 9 May and people can also register online via our website. This is a great opportunity to visit and sample the autumn splendour of this region. The local branch is working hard to provide a memorable experience at a very reasonable price. 2 New Zealand Tree Grower February 2018 President’s comment Profitability of trees If you plant trees during the next few years, will they be a profitable investment? Hamish Levack It is impossible to be sure, but many indications point to carbon sequestered by trees remains substantial, as seems continued investment in forestry being well worthwhile. probable,
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