Plantation Management and Native Field Day Notes

Bracknell & Blackwood Creek 17th April 2015

Proudly sponsored by:

ACKNOWLEDGEMENTS

The contribution made by managers and land holders, IFARM and John and Diana Lord is gratefully acknowledged.

This field day is organised by: o AKS Forest Solutions Pty Ltd o Australian Forest Growers (Tasmanian Branch) o IFARM o Institute of Australia (Tasmanian Branch) o Private o Technical Forest Services Pty Ltd

Sponsorship is generously provided by these organisations.

Catering is provided by Bracknell Primary School Parents and Friends Association.

The attendance of over 60 land holders, industry personnel, government staff and politicians and their willingness to share information and experiences’ underpinned this event.

DISCLAIMER

This information has been prepared and or collated by Private Forests Tasmania and every reasonable endeavour has been used to ensure that the material was accurate. No legal responsibility can or will be accepted by Private Forests Tasmania for the accuracy, completeness, or relevance of such information to the user’s purpose. Before undertaking any significant or revegetation project it is recommended that you seek personal professional advice from Private Forests Tasmania on the particular matter.

For further information please contact: Private Forests Tasmania Telephone: (03) 677 72720 Email: [email protected] Website: www.pft.tas.gov.au

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 2 of 40 CONTENTS

Invitation ...... 4

Locality map ...... 5

Program ...... 6

STOP 1 – Eucalypt Nitens Plantation ...... 7

John and Diana Lord – National Farmer of the Year 2006 ...... 13

STOP 2 – Native Forest ...... 19

STOP 3 – Eucalypt Nitens ...... 21

STOP 4 – Pinus Radiata Plantation ...... 23

STOP 5 – Eucalyptus Nitens Plantation ...... 34

Other Information ...... 36

Contacts ...... 38

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 3 of 40

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 4 of 40

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 5 of 40 PROGRAM

TIME EVENT PRESENTER

From 9:30am Registration and Morning tea

9:50 – 10:00 Welcome Private Forests Tasmania

STOP 1: Cutts - Eucalypt Plantation IFARM 10:00 – 10:45 Eucalypt Plantation – design, insect control and fire management

10:45 – 11:00 Travel

STOP 2: Property of John & Diana Lord John Lord & AKS Forest 11:00 – 11:35 Native Forests - Thinning to grow quality Solutions sawlogs

11:35 – 11:50 Travel

STOP 3: Property of John & Diana Lord John Lord & AKS Forest Eucalyptus nitens Plantation Solutions 11:50 – 12:20pm Thinning and pruning E.nitens plantation to grow quality sawlogs

12:20 – 12:50 LUNCH (Sponsors)

12:50 – 1:00 Travel

STOP 4: Property of John & Diana Lord John Lord, AKS Forest 1:00 -1:45 Pinus radiata plantation - management, Solutions & Private thinning, costs and returns Forests Tasmania

1:45 – 2:00 Travel

STOP 5: Property of John & Diana Lord John Lord & Private Eucalyptus nitens Plantation Forests Tasmania 2:00 – 2:45 Salvage thinning E. nitens after wind damage, plantation health, management options.

2:50 – 3:00 Close Private Forests Tasmania

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 6 of 40

STOP 1 – EUCALYPT NITENS PLANTATION

Eucalypt nitens plantation – ‘Cutts’ – Managed by IFARM

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 7 of 40 OWNER: FIT MANAGER: PF OLSEN, SUB CONTRACT TO IFARM

HISTORY Species E. nitens Area (ha) 195.7 ha (gross) 133.3 ha (net) 33.7 ha (native vegetation) Year Planted 2007 Spacing/stocking 4.0m X 2.5m / 1000sph OPERATIONS Previous Land Ex Pasture Use Cultivation Ripped and Mounded Planted 2007 E. nitens container stock Fertiliser Post Plant 150 grams DAP Later Age Aerial application 120 kg To assist in increasing leaf area and Fertiliser applied Granulated Urea and 80 kg general tree health following a late Nov 2014 Granulated DAP season (March 2014) defoliation from Chrysophpharta agicola (Southern Eucalypt Leaf Beetle) Insect Control Monitoring indicated high number After due consideration; taking Nov to Feb of Chrysomelid eggs and larvae into account the defoliation that ongoing each present Jan 2015 had occurred in 2014 and the application of fertiliser in spring year 2015, control was carried out. Issues that needed to be considered while preparing operational prescription were; proximity to populated area, adjoining main road and within one kilometre of a school. Gorse Control Spot spraying of Gorse has been Prior to plantation establishment (ongoing) carried out for the past 3 years, there were significant areas of using Brush Off and Pulse. Gorse throughout the property and on surrounding properties. The objective is to ensure that all tracks and firebreaks are clear of Gorse and reduce the spread throughout the property were possible.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 8 of 40 Plantation Design • Ensure that construction of access tracks and row direction are set out to facilitate future harvesting operations. • Ensure that setbacks from utilities such as fences, buildings and power lines are adequate; this will alleviate the need to trim or remove later in the rotation. • Leave access tracks open to water holes and ensure that there is sufficient area to turn fire units.

Fire Management • Develop a good relationship with the local brigade as they will most likely be your first line of defence against a . • Control understorey growth throughout the plantation. This is mostly achieved from canopy closure. • Grazing can assist in reducing grass cover throughout the plantation and unplanted areas. • Ensure that access tracks to water points are kept clear and there are suitable filling points. • Regular maintenance prior to summer months on access tracks and firebreaks with either Dozer, Grader or Herbicide application depending on the outcome required.

Insect Monitoring and Control • Defoliation of a substantial portion of the new season’s and adult foliage on eucalypt can significantly reduce tree growth for several years. Repeated defoliations can reduce volume by 60 % of the potential and lead to tree deaths. • In general E. nitens plantations become susceptible to damage from leaf eating beetles from around age 2 years when transition from juvenile foliage to adult foliage occurs. • The main insects of concern are the Southern Eucalypt Beetle, Tasmanian Eucalypt Leaf Beetle and Gum Leaf Skeletoniser. (See description attached). • Monitoring during the warmer months, November to March will enable early detection of insect population. • Fortnightly monitoring is adequate with an emphasis on inspecting areas of plantation that adjoin native forest, are stressed and have been defoliated in the previous season. • The decision to spray should not be taken without consideration of the impact on the predators such as Lady Bird and soldier beetle that feed on the larvae of the leaf eating beetles. The insecticide will kill both the target insects and the predators. • It may not be practical to carry out a spraying operation if the plantation is located near waterways, is small in size, or has a large number of buffers throughout.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 9 of 40 • If the decision to spray is made the control must be completed within 7 -10 days of the initial monitoring. This is to prevent the larvae from moving to the 3rd and 4th instar where 90% of larval food consumption occurs. • Control will be carried out by helicopter; the Code of Practice for Aerial Spraying must be followed http://dpipwe.tas.gov.au/agriculture/agvet-chemicals/codes-of- practice-guidelines-and-information-sheets/codes-of-practice/code-of-practice-for- aerial-spraying. • In some cases where plantations have been defoliated there may be an option of applying fertiliser to increase the leaf area. The potential of the site and the predicted response to the fertiliser must be weighed up against the cost.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 10 of 40 Insect pests to be monitored

Tasmanian eucalyptus leaf beetle Southern eucalyptus leaf beetle Paropsisterna bimaculata Paropsisterna Agricola

All stages found on young, shiny green ‘adult’ All stages found on young, waxy blue ‘juvenile’ foliage during summer. Beetle about 1 cm. foliage during summer; adults also eat ‘adult’ Adults are coloured red in winter then green in foliage in autumn. Beetle about 1 cm. Eggs are summer. Eggs are laid in neat rows, generally at laid throughout summer on the tips of leaves in two peaks of egg laying in late November/early clumps. In spring adult beetles are coloured December and late December/early January. with a red ‘skirt’, turning dark, speckled grey in summer.

Eucalyptus leaf beetle Eucalyptus weevil Paropsisterna selmani Gonipterus scutellatus

Egg Pod

Little is currently known of this ‘new’ native Adults emerge from over-wintering in early pest species in Tasmania. It appears to emerge September. 3-8 eggs are laid in a pod 3mm from over-wintering slightly earlier than P. long, on the upper surface of buds and new bimaculata and progresses quickly through its season foliage. Two egg laying peaks: October life stages (2-3 days). The eggs are lemon and January. Feed for 5-8 weeks and grow yellow coloured (compared with the fawn- through 4 instars, reaching 1cm long. All stages coloured eggs of P. bimaculata) and are laid in found mainly on juvenile but also adult foliage one row. Their larvae are almost identical to P. during spring to autumn. Young larvae eat bimaculata except for an additional black characteristic ‘tracks’ within leaf surface; older stripe. Adult beetles have a golden ‘skirt’. larvae and adults also feed on stems, young buds and leaf edge. Prefers E. globulus.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 11 of 40 OTHER INSECT PESTS TO BE NOTED

Autumn gum moth Gum leaf skeletoniser Mnesampela privata Uraba lugens

These non-hairy larvae skeletonise leaves when young but when older they hide inside leaf shelters and come out at night to feed. Found on ‘juvenile’ foliage of young

trees. Eggs generally laid in autumn but can be earlier (summer) in high elevation areas. Prefers waxy ‘juvenile’ foliage but will eat These very hairy caterpillars with black ‘adult’ foliage. Tends to have localised caps skeletonise lower leaves of many outbreaks. Can have egg batches of up to tree species. Eggs laid in autumn and 300. Grows through 5 larval stages from 2- finish feeding early summer. Grow to 3mm to 3-4cm. about 3cm. DO NOT TOUCH. MAJOR BENEFICIAL INSECTS TO BE NOTED Zig-zag ladybird Plague soldier beetle Cleobora mellyi Chauliognathus lugubris

Larvae and beetles of this and the similar spotted ladybird, Harmonia conformis, are This beetle occurs in huge numbers in important predators of psyllids and leaf early summer and eats nectar and leaf beetle eggs and larvae. Both up to about beetle eggs. About 2 cm long. 1cm. Prefers non-waxy foliage.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 12 of 40 JOHN & DIANA LORD AUSTRALIAN FOREST GROWERS NATIONAL TREE FARMER(S) OF THE YEAR 2006

SELECTED EXTRACTS FROM THE APPLICATION

Summary The personal efforts by my family and I have resulted in: • Purchase of land and management of native forests, existing plantations and establishment of new plantations over 20 years to create a family forest estate. • Development of a sustainable and self-funding forest enterprise to produce income for this generation and their families. • Managed our forest estate on a sustainable “triple bottom line” basis to ensure a balance between environmental, economic and social objectives, both for our family and the community. • Designed, established, managed and conducted harvest operations to protect special values including soils, water, native plants and animals and especially landscape to levels prescribed in the Forest Practices Code. • Our family learning about and practicing private forestry as well as enjoying it. • Educating many other landowners in to enable them to make better investment and management decisions.

Property Description (“Springmount” and “The Springs” – two of four properties) “Springmount” – a 200 ha property located high in the foothills of the Western Tiers due north of Blackwood Creek. Secondly “The Springs”, a 560 ha property which rises from the agricultural plain and is located on the lower slopes and flatter plains at the base of the Western Tiers adjacent to and immediately to the north-east of “Springmount”.

The land on these properties was largely native forest of Eucalyptus obliqua, E. viminalis and Acacia melanoxylon. E. nitens plantations are now established on ex-pasture and derelict forest sites and Pinus radiata with some E. nitens plantations are established on the lower slopes. The elevation range is 200 to 550 metres ASL. The height of the Tiers is 1,200 metres.

Average rainfall across these two adjacent properties is 1,000 mm/yr.

Geology changes with increase in elevation. On the plains shallow soils overlie clay, and as the elevation increases mud-stone derived soils and then broken rock and shale are common. Hard dolerite protrusions form the surface at several levels creating benches.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 13 of 40 These properties have a north/north eastern aspect. Dry forest occurs on the north slopes and the wet forest occurs on the southern slopes of some eastern gullies.

“Springmount” was, prior to purchase by the Lords, part of a bush run which had been heavily logged for sawlogs and some pulpwood in the 1970’s with poor regeneration classified by the then Private Forestry Division as derelict forest. The grassland area had been let go and was partly covered by bracken and leased for a nominal rental to a local farmer for summer grazing.

“The Springs” had been heavily logged in the 1970’s and comprises largely juvenile E. obliqua regrowth. The lower flat area includes grassed flat paddocks.

Area Statement

Property Total Area Native Forest Plantation Non Forest

Eucalypt Pine

“Springmount” 200 68 114 0 18

“The Springs” 560 300 157 43 60

Total (ha) 760 368 271 43 78

Ownership & Management “Springmount” was purchased in 1985 and “The Springs in 1990. Forest on each property has been continuously and actively managed since purchase. Forest Management Plans have been developed for the principal forestry areas.

There are property management plans, financial plans and Forest Practices Plans for each of the properties/coupes and specifically for native forests and plantations according to species. The plans have been progressively put in place commencing shortly after purchase. Our first 17 ha plantation was planted in 1989.

The objectives of the forestry enterprise are to invest in private forestry (native forests and plantations) to:

1. Provide a financial resource for the family for the tertiary education of our three children and for our retirement. 2. Provide an opportunity for family recreation and a supply of domestic firewood. 3. Contribute in a real way to local employment and the State’s economy. 4. Allow John to obtain practical first-hand knowledge of private forestry. 5. Enable John to better advise clients to manage their own forests and plantations.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 14 of 40 The forests play a dominant role in our family’s plans for the properties. This is by design because: • Our family is interested in the forests, forestry and learning what one does from working in them, • Our family believes the managed forests may form a reasonable investment and • Family members can pursue other professions or vocations because “day in day out” management is not required.

The management philosophy is to divide the forest into land management zones and then management coupes so as to: • To retain native forests where reasonably well stocked. • To convert derelict forest and derelict farmland to more productive plantations.

Forest Management Plans for “Springmount” and ‘The Springs” provide for, eucalypt and pine plantations, managed native regrowth, forest reserves, retained grasslands and roading.

Forestry Methods All plantations and native forests have been managed in accordance with Timber Harvesting and Forest Practices Plans and to a standard at least, if not better, than prescribed in the Forest Practices Code.

Plantations “Springmount” Forest Resources established a 17 hectare E. nitens plantation on the grassland in 1989. This was funded with assistance from the Forest Resources Joint Assistance Scheme (30%), the National Scheme (50%) and ourselves (20%).

The National Afforestation Scheme encouraged the establishment of plantations on key sites across Australia in the early years of plantation development.

APPM established a 46ha E. nitens plantation on part of the derelict forest and 35ha and 15ha in the early 1990’s. These plantations, being a part of the joint assistance program between APPM and ourselves, were funded 70% by ourselves. Our contributions were funded by the native forest harvesting. This harvesting provided work for 4 men and three machines, worth $250,000, for over 6 months with estimated export earnings of the order of $1.5M. Further, the estimated plantation harvest returns at 20 years is at least eight times that of the derelict native forest. Thus our forestry operations are/will make a substantial economic contribution to the economy.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 15 of 40 Trial plantings of up, to 0.5 hectares of Acacia melanoxylon were made in 1989 –1992 in the wetter areas of the plantations. Initially rotations of the order of 20 years were estimated but in some areas harvesting is expected to commence in 12 – 15 years due to better growth rates. Our preference is now to thin and manage the plantations on a long rotation and produce large logs suitable for solid wood products.

“The Springs” About 115 ha of plantation was established by the previous owners on suitable, marginal and unsuitable land. These areas will be managed on an opportunistic basis with some to be managed back to E. obliqua native forest.

“Springmount” and “The Springs” are managed as one estate. The forest/plantation is divided into 11 forest management coupes and each managed to maximise productivity and wood quality.

Forest Reserves and Retained Grassland The forest reserves (9ha) and grassland (7ha) have been retained for biodiversity, landscape and recreational purposes. (Roads occupy 2ha)

Native Forests At “Springmount” the areas of well stocked native forest of even aged E. obliqua and E. viminalis were retained. In 1998 these areas were very carefully selectively harvested to reduce the stocking to a basal area of 20 m2/ha and to retain the best trees to grow on for large diameter saw/veneer logs. To ensure that the thinning was done to a high standard we waited for the right contractor and supervised the operation. As a result, the retrained trees have no stem/butt damage and are very evenly spaced.

Selective harvesting of over mature and poorly formed trees in small areas of native forest was completed in summer 2003 to improve productivity and wood quality in the long term.

At “The Springs” through trial growth plots we have established that thinning of small diameter E. obliqua regrowth can increase basal area growth by 150%. This appears to offer a real opportunity to grow sawlogs faster.

Fire Protection We have insured our plantations and have established and maintain access roads designed with on-site advice from the Tasmanian Fire Service. The insurance company has specifically approved of our access/firebreaks.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 16 of 40 Timber Stand Improvement We are working to thin each native forest stand and plantation on time to add value to the retained sawlogs and veneer logs. Nearly all the native forest, which can be conventionally thinned, has been treated and work has started in the plantations. We hope to have most of the regrowth native forests thinned depending upon the development of a suitable harvesting system.

We have first thinned, using third out row thinning, the older E. nitens plantations and will selectively second thin the retained stems to add value to the final crop trees.

We have set up two growth plots at “Springmount” to determine growth rates of thinned and un-thinned E. nitens plantation. These plots enabled us (with assistance of Private Forests Tasmania) to determine the mean annual increment, basal area and stocking rates at rotation. We have also set up plots at “The Springs” to trial the thinning of E. obliqua regrowth.

Markets Wood harvested from native forests has been sold as sawlogs and wood fibre for pulp production. Even so, our focus is now on adding value to produce veneer logs, sawlogs, wood fibre and preservation material. Early thinnings of P. radiata and E. nitens have produced preservation material which we have had treated for our own use, the P. radiata with bark on and bark off and the E. nitens with bark off.

Financial Objectives We hope the forestry enterprise meets our financial objectives. We have prepared detailed financial forecasts including harvest costs and wood yields, products prices, establishment and pruning costs, rates and insurance for plantations established in 1986, 1989, 1991, 1992, 1993, 1999, 2000 and 2001, to determine net cash in and cash out flows.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 17 of 40 Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 18 of 40

STOP 2 – NATIVE FOREST

OWNER / MANAGER: JOHN & DIANA LORD

HISTORY Species Eucalyptus obliqua & E. ovata Area (ha) 560 gross See plantation map for details. Year Planted Previously harvested and cut over by former owners Spacing/stocking Regrowth now thinned to 16-18 m2/ha Aim to thin 250 ha. OPERATIONS Thinning In 2011 thinned to 16-18 m2/ha. Poor quality trees were About 20% of the stand was thinned but removed and sold as postponed due to falling pulpwood pulpwood to improve future prices and markets. log volume and quality. About 2,500 tonnes/ha (very low yield - 80t/ha) harvested.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 19 of 40 Discussion Items

• Need to balance the ‘cost of doing business’ and the returns to achieve the desired silvicultural outcomes. • Selection of suitable harvesting machinery and operators. • Market opportunities need to maximise returns for BOTH forest owners and the contractor. Continuity of work is essential for contractors operating in private forests. • Forest Practice Plans to suit forest owner’s objectives.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 20 of 40

STOP 3 – EUCALYPT NITENS PLANTATION

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 21 of 40 OWNER/MANAGER: JOHN AND DIANA LORD

HISTORY Species Eucalyptus nitens Area (ha) 15.0 See plantation map for details Year Planted 1999 E. nitens was an opportunistic choice as P. radiata stock was not available. Spacing/stocking 1000 sph and thinned to about 300 sph OPERATIONS Pruning Lift pruning of selected better quality trees Thinning 2013 Poor quality trees were removed and sold as pulpwood to improve the future log volume and log quality. About 900t/ha harvested – 60t/ha is a very low volume and the operation is very marginal at best given the flat and easy harvesting conditions.

Discussion Items

• Matching tree species to site – ‘Would you plant this site with E. nitens if you had the choice?’ • Species requirements – soils and climate & wood products and harvest age • What species would you plant on this site?

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 22 of 40 STOP 4 – PINUS RADIATA (RADIATA PINE) PLANTATION

OWNER/MANAGER: JOHN AND DIANA LORD

HISTORY Species Pinus radiata Area (ha) 37.0 See plantation map for details Year Planted 1999 Spacing/stocking Planted at 1000 sph. Thinned to 550 sph. OPERATIONS Pruning About 250 of the best trees were Pruned logs (veneer logs) pruned in three pruning lifts to 6.4 command at least twice the metres. No trees in 5th row out row sale price than unpruned logs. were pruned. Thinning 2012 and 2014 to 550sph Harvested 3,200t pulpwood and 400t small export logs (100t/ha is a good result).

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 23 of 40 Discussion Items

• Diversity of wood products – multiple products for different domestic and export markets. • ‘Good management and monitoring gives potentially great results’. • Farm Forestry Toolbox – to help decision making.

Stand Summary (PFT Assessment 04 March 2015)

Age 15.7 years Mean DBHob 29.6 cm Stocking 550 stems/ha Basal Area 37.9m²/ha Mean Dominant Height 22.1m Mean Annual Increment 17.9m³/ha Total Volume 280.7m³/ha (average tree volume = 0.51 m³/tree) Stand Value $5,556/ha (based on market log prices)

Financial Analysis Estimates The Financial Analysis is specific to this plantation and was modelled using the Stand Manager tool in the Farm Forestry Toolbox. The following fixed assumptions apply:- • Growth model projected volumes. • Current market log grades and stumpages (exclude & cartage). • Regime past and future operational costs. • Financial base discount/compound interest rate (set at 5%).

Below are estimates for Stand Revenue ($/ha), Net Present Value (NPV $/ha) and Internal Rate of Return (IRR %) for selected clearfell ages.

Stand Net Revenue, Net Present Value and Internal Rate of Return Clearfell age (yrs) Net Revenue ($/ha) NPV ($/ha) IRR (%) 25 12,965 2,315 8.34 30 20,039 3,162 8.51 35 25,499 3,178 8.06 40 30,649 2,933 7.58

Note: Net Revenue is the log price paid to the owner. Harvesting and cartage costs are borne separately by the processor.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 24 of 40 These results are shown in the graphs below which are useful to help decide:

• When should the stand be harvested? • What is the timber value at different clearfell ages? • How does the investment perform?

Graph 1 - Clearfall Net Harvest Revenue

1999 Pines - Harvest Revenue 35000

30000

25000

20000 Stand Revenue $/ha Revenue Stand 15000

10000 20 25 30 35 40 45 Clearfell Age (Yrs)

The harvest revenue line reflects the increase in the projected growth volumes and values, particularly the higher premium paid for pruned logs (clear wood) and large knotty sawlogs. For this stand, revenue increases about $6,000 every 5 years. Note the above revenues are net revenues (i.e. income) to the tree grower, which exclude both logging and cartage costs. As the plantation grows, harvest revenue increases quite substantially due to the increase in tree diameters. In other words, the larger the tree, the greater the amount of clearwood and sawlog.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 25 of 40 Graph 2 - Clearfall Net Present Value

1999 Pines - Net Present Value 3500

3000

2500 NetPresent Value $/ha

2000 20 25 30 35 40 45 Clearfell Age (Yrs)

Here the NPV increases for some years and then drops off. Many foresters tend to pick the harvesting time when NPV is highest. For this stand, NPV peaks about 31 years. This is an indication of the clearfell age for the tree grower to make the ‘best’ return on his investment.

Graph 3 - Internal Rate of Return

1999 Pines - Internal Rate of Return 9

8.5

8

7.5 Internal Rate of Return %

7 20 25 30 35 40 45 Clearfell Age (Yrs)

The IRR is quite high for this stand, well above the 5% financial base interest rate used. This indicates the investment is attractive. IRR is the discount rate at which the NPV of the investment is zero, i.e. the breakeven discount rate for the investment. In other words, if all the money for the investment was borrowed, the IRR would be the maximum interest rate

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 26 of 40 the tree grower could afford to pay on the loan without losing money. Obviously the higher the IRR, the more attractive the investment.

Caution: It is advisable not the use IRR by itself as a deciding factor, but rather use it in combination with NPV results, especially for long term investments such as a rotation of trees.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 27 of 40 Diameter Distribution of Pruned Trees in thinned and Unthinned Radiata Pine Stands at Blackwood Creek & Longford

Blackwood Creek Pinus radiata established in 1999 - Plots 3 & 4

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 28 of 40 ‘Kelton’: Pinus radiata 2012 aged approximately 16 years

90 DBH Distribution of pruned trees in Plot thinned to final crop at age 5 yrs

80

70

60

50

No. No. plot per 40

30

20

10

0 10-11 12-13 14-15 16-17 18-19 20-21 22-23 24-25 26-27 28-29 30-31 32-33 34-35 36-37 38-39 40-41 42-43 44-45 46-47 48-49 50-51 52-53 54-55

DBHOB Classes (cm)

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 29 of 40 Plot measurement summaries from 3 immature P. radiata stands in Northern Tasmania

Current DBH Mean DBHOB MDH Site MAR Age stocking (cm) Stand vol MAI gain over (m) (mm) (yrs) (stems/ha) Pruned (m3/ha) (m3/ha) unthinned

stems (cm) Longford 600 14 750 23.7 18.1 227.4 16.2 0 Unthinned Longford 14 283 29.1 16.5 104.3 7.4 +4.0 cm Thinned (age 5yrs*) Longford 14 250 32.9 17.8 126.9 9.1 +9.0 cm Thinned (age 5yrs*) Cressy - Saundridge Rd 700 13 1000 23.3 17.8 246 19.0 0 Unthinned

Cressy - Saundridge Rd 13 838 23.8 18.1 209 16.1 0 Unthinned

Cressy - Saundridge Rd 13 530 27.3 17.5 186 14.3 +4.0 cm Thinned (age 5yrs*)

Cressy - Saundridge Rd 13 433 29.2 17.5 172 13.3 +5.5 cm Thinned (age 5yrs*)

Cressy - Macquarie Rd 600 14 1004 22.5 15.9 194.3 13.9 0 Unthinned

Cressy - Macquarie Rd 14 403 29.2 15.1 138.4 9.9 +6.6 cm Thinned (age 5yrs*)

Cressy - Macquarie Rd 14 240 31.2 15.4 95.8 6.8 +8.0 cm Thinned (age 5yrs*)

* Approximate age when thinned

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 30 of 40 Summary of plot data from 6 mature stands over 30 years of age

Mean Annual Current MDH BA Wood Age DBHOB MAI Plot location rainfall Stocking Volume 3 (years) (m) M2/ha 3 (m /ha/yr) (mm) (sph) (cm) (m /ha)

Blessington (unthinned) 1000 33 1550 25 28 77 750 22.7

Blessington (Partially thinned) 1000 33 650 31 28 52 480 14.7

Rosevale - Four Springs 1 (unthinned) 800 30 517 30 26.8 39 351 11.7

Rosevale - Four Springs 2 (thinned) 800 30 183 50 32.6 37 409 13.6

Rosevale – Four Springs 3 (thinned) 800 30 217 47 32.7 39 440 14.7

Launceston - Travellers Rest 700 38 667 35 29 69 670 17.7 (Partially thinned)

Cressy – ‘Formosa’ (unthinned) 600 39 583 36 31 63 644 16.5

Fingal – ‘Tullochgorum’ (unthinned) 550 30 533 30 27 40 360 12.0

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 31 of 40 Rosevale (4 Springs) 30 year old Stand

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 32 of 40 Discussion points

What is needed to grow trees to sawlog specifications?

• Moderate rainfall will do. (All stands achieved an MAI > 10 m3/ha/yr by age 30 yrs) • Timely thinning to final crop of around 200 sph. • Productivity (MAI) of around 14 m3/ha/yr. (Wood volume of around 400m3/ha at age 30 years)

When do I thin and how hard?

Radical thinning verses thinning in stages • Available markets and distance to markets. • Radical early thinning usually causes large branches and a degrading of the second log. • Earlier thinning on less productive sites.

Thinning to waste verses commercial thinning • Intermediate products, such as small sawlogs and spot markets. • Suppression in diameter growth of pruned stems by delaying thinning.

Radical thinning at Longford (Kelton): >30cm diameter in butt logs at age 14 years.

However, there are very large branches in the second log.

To prune or not to prune?

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 33 of 40

STOP 5 – EUCALYPTUS NITENS PLANTATION

OWNER/MANAGER: JOHN AND DIANA LORD

HISTORY Species E. nitens Area (ha) 46 See plantation map for details. Located at 250m ASL on a ‘shelf’ part of which has shallow soils over rock. The northern part is exposed to wind. Year Planted 1992 Spacing/stocking Planted at 1000sph. Thinned to 550 sph. OPERATIONS Thinning 2003 to 550sph.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 34 of 40 Discussion Items

• Plantation health and vigour • Future management options • Economic viability • Future of site after harvest?

STAND SUMMARY (PFT ASSESSMENT 04 MARCH 2015)

Age 21.7 years Mean DBHob 26.2 cm Stocking 550 stems/ha Basal Area 29.7m²/ha Mean Dominant Height 26.4m Mean Annual Increment 12.3m³/ha Total Volume 267.3m³/ha (average tree volume = 0.49 m³/tree) Stand Value $2,982/ha (based on market log prices)

Comments: The relatively low MAI of 12.3m³/ha indicates the stand volume is low for its age of 21.7 years. This reflects the stand being influenced by several site factors:- • Shallow soil depth and marginally poor soil fertility, demonstrated by the very sparse and thin canopy and short crown depth; • Sub surface rock close to the ground surface - prone to drought; • Insect attack (borer) causing increasing mortality. • Generally exposed to wind and northern aspect.

Hence at this age, the stand is growing slowly and therefore the investment return is likely to be affected. An option to consider may be to harvest the stand now and replant with another more suitable species such as Pinus radiata which is more suited to the specific site conditions.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 35 of 40 OTHER INFORMATION

NATIVE FOREST MANAGEMENT

Stand structure and habitat diversity on a private farm forestry estate in northern Tasmania.

Greg. Unwin1, Sally-Anne Smith2, John Lord3 and Arthur Lyons4

1. S/Lecturer (, Forest Ecosystems), School of Land and Food, University of Tasmania. 2. University of Tasmania (BSc Hons). 3. Landholder, TFOY and private , Springmount via Blackwood Creek, Tasmania. 4. Regional Forest Manager, Private Forests Tasmania, Launceston, Tasmania.

Abstract Stand structure, floristic diversity and forest habitat condition were recorded and analysed for five contemporary silvicultural regimes in native Eucalyptus obliqua forest and young E. nitens plantations on the one private forest estate in northern Tasmania. The location is a diverse 760 ha forested property in the Northern Midlands, on the eastern foothills of the Great Western Tiers. A replicated series of small sample plots was established in 2007 and the plot survey was extended and remeasured in 2013. In 2007, stand structure, floristic composition and habitat condition were first compared for E. nitens plantations on ex- pasture and ex-bushland sites and for thinned Eucalyptus obliqua native forest, advanced regrowth E. obliqua forest and reserved old growth E. obliqua forest, respectively. In the 2013 survey, two distinctly different methods of habitat assessment were applied and results were compared among the three native forest regimes. The mix of silvicultural strategies was also assessed in terms of overall tree growth and production strategies of the private farm forestry enterprise.

Indices of floristic diversity and habitat condition strongly favoured the silviculturally managed native forest and reserved old growth forest. Results for both native forests and plantations were closely aligned with altered regeneration dynamics following respective (and notably different) histories of disturbance. The study demonstrates that for small scale private forestry in Tasmania, there is opportunity for an integrated mix of native regrowth forest to be silviculturally managed alongside remnant old-growth eucalypt forests and young eucalypt plantations, in order to achieve favourable outcomes for both wood production and biodiversity protection across the landholding as a whole. With careful planning and skilled forest management, this creates a broad basket of social and community benefits as a consequence of achieving both the environmental and commercial goals of the enterprise.

The full paper is available at www.pft.tas.gov.au

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 36 of 40 WIND RISK

Strong winds can damage plantations that are ‘overdue for thinning’; thinned late or exposed to combinations of very wet soil and strong winds. Trees may be blown over, toppled, bent or broken off resulting in considerable financial loss.

PFT has developed a method to help forest owners/managers assess the potential risk of wind damage either when plantations are planned or harvesting operations are considered. This method is explained via a case study in the Tamar Valley which illustrates the practical use of Wind Risk assessment.

The full paper is included in the field day notes at; http://www.pft.tas.gov.au/images/Trees_for_Shelter_Timber_and_Profit_Field_Day_Notes_ -_28_February_2014.pdf

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 37 of 40 CONTACTS

AKS Forestry Solutions Pty Ltd [email protected] Tony Stonjek Ph: 0419 573 205

AKS is a well-established Tasmanian forest management company providing complete solutions from the forest to the market. AKS aims to optimise outcomes for private forest owners. AKS covers all aspects of forestry and forests: plantations and natural forest; from establishment, forest management, harvesting and markets. Importantly, AKS has Australian Forestry Standard (AFS) Certification.

Australian Forest Growers http://www.afg.asn.au Tasmanian Branch Secretary Ph: 0419 000 630

Australian Forest Growers (AFG) is the national association representing private forestry and commercial tree growing interests in Australia. If you grow trees mainly for wood or non-wood products, or you would like to, AFG can help you. Established in 1969 as the Australian Forest Development Institute, AFG is a national association with branches in all states. It is run by a voluntary Board of growers, supported by a small paid professional staff based in Canberra. Please contact us if you would like any further information.

IFARM PO Box 639, St Leonards, Tasmania, 7250 www.ifarm.com.au Robin Dickson, Operations Manager Ph: 0407 331 662

Independent Forest and Resource Management Pty Ltd (IFARM) was established due to forest management demand. As the Australian plantation industry has restructured over the last few years, the need for independent forest and asset managers has increased. IFARM employs highly experienced and well respected foresters to undertake the management roles. Locally located staff ensure prompt and efficient responses to management tasks. All staff are well versed in the Tasmanian Forest Industry. IFARM manages forestry assets for international investors as well as providing management services to local native forest and plantation owners. Management services can include one off or long term advisory roles.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 38 of 40

Institute of Foresters Australia www.forestry.org.au

Going strong since 1935, the Institute of Foresters of Australia is a professional body with over 1,100 members engaged in all branches of forest management and conservation in Australia. The Institute is strongly committed to the principles of sustainable forest management and the processes and practices which translate these principles into outcomes.

Secretary, Institute of Foresters (Tasmanian Division) Paul R Adams PhD RPF Principal Scientist (Productivity) Division of Forest Management FORESTRY TASMANIA T +61 (0)3 6235 8269 M +61 (0)418 314 894 [email protected]

Private Forests Tasmania Phone (03) 6777 2720 Email [email protected] www.pft.tas.gov.au

Private Forests Tasmania (PFT) was established in 1994 as a statutory authority under the Private Forests Act 1994, with governance responsibilities that recognise the economic, environmental and social importance of Tasmania's private forests. Private Forests Tasmania specifically promotes, fosters and assists the private forestry sector on forestry matters. PFT provides strategic and policy advice to Government on private forestry issues, and represents Tasmanian private forest owners’ interests nationally. Private Forests Tasmania works to facilitate and expand the development of the private forest resource in Tasmania in a manner which is consistent with sound forest and land management practices. This includes advising and assisting private landowners in the management of native forests and the establishment and management of plantations on private land. We work closely with private landowners and major stakeholders to develop and deliver a wide range of services to ensure sustainable forest use.

30 Patrick Street, Hobart 7000 – Ph (03) 6165 4073 State Government Offices, 171 Westbury Road, Prospect 7250 – Ph (03) 6777 2720 2-4 East Cam Road, Camdale 7320 – Ph (03) 6477 7052

Please visit our website to join our mailing list.

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 39 of 40

Technical Forest Services Pty Ltd PO Box 639, St Leonards, Tasmania, 7250 www.technicalforestservices.com.au Clive Woolridge - Manager Ph 0407 331 023

Technical Forest Services Pty Ltd (TFS) is a Tasmanian owned and operated company with its Head office based in Launceston. Founded in July 2002 by Clive Woolridge. Now with staff in Launceston, Scottsdale and Hobart, with experience working throughout Australia and globally TFS offers a broad range of services throughout the Plantation, Native Forest and the Agricultural Industries. Examples of these services include, but not limited to:  Inventory  Assessments  Surveys  Auditing  Planning  Fire prevention and control As the Forest Industry has evolved over the years TFS has been a driving force behind the development and modernisation of methods and techniques within all areas of its operations. The motivation behind this has been the provision of prompt, accurate and appropriate information and services.

John & Diana Lord “Kelton” 526 Cressy Road LONGFORD TAS 7301 Ph: 0418 132 441

Plantation Management and Native Forest Field Day Notes – 17 April 2015 Page 40 of 40

This Field Day has been proudly sponsored by

Field Day notes are available from Private Forests Tasmania website – www.pft.tas.gov.au