Feeding the world’s growing population
New Zealand’s reputation as a quality food producer is growing.
The Fertiliser Association of New Zealand promotes and encourages responsible and scientifically-based nutrient management.
There are strong financial drivers for the increase. Traditional sheep and beef hill country returns 2-5% on capital invested, whereas carbon farming (when priced at $65/t) will give returns of three to five times this amount.
The research report, Forestry on Farms: Implications for Farm Sustainability and Regional Impact, highlights wide concern that the social and economic impact of these changes could be significant.
At an on-farm level the integration of forestry could strengthen the farm business, as well as providing carbon credits to offset GHG emissions from the farm. At a wider regional or national level impacts would include a reduction in pastoral production, processing capacity or exports. This would be offset by increased income generated by carbon credits, and eventual timber sales.
This analysis has explored the likely macro-economic impacts by considering three scenarios:
The study was commissioned by the Fertiliser Association of New Zealand with the aim of:
Representative case study examples, assessed 10%, 30% or 100% of the farm area being planted into three forestry types. The impacts were assessed at both farm and regional levels for Northland, Hawke’s Bay, and the rest of the North Island.