You are looking for new ways to earn money from your existing forest.
You are planning for the next generation and/or retirement savings.
You’re connected with the forest and know there’s a better long-term proposition.
You know your forest can offer more value and need to plan for long-term land use and economic prosperity.
You want to reduce debt and avoid market volatility. You need a more balanced and certain income.
You are approaching retirement and looking to reduce workload and debt.
Of forest land leased
Lease payments made in 2019
Forest owners with lease agreements
You own the trees and can harvest after the end of the lease term or decide to keep it as a permanent forest. A permanent forest can continue to generate income from carbon.
Climate change is a phrase we use to describe changing climate patterns that:
The effects of global warming and climate change are already measurable. New Zealand’s climate is changing, largely because of the build-up in the earth’s atmosphere of greenhouse gases particularly carbon dioxide, methane and nitrous oxide. For more information visit our Climate Change webpage.
New Zealand Carbon Farming buys and leases established forests that are intended for harvesting. The trees capture and store carbon dioxide with the goal of reducing climate change. This process is called sequestration and generates carbon credits.
Carbon Credits have a tangible value through the Emissions Trading Scheme. One Carbon Credit represents one tonne of carbon dioxide (or equivalent for other greenhouse gases) – We then sell the carbon credits to large companies who need them to meet legal obligations.
The right to pollute the atmosphere is becoming increasingly regulated internationally. The carbon market has been developed to provide an equitable way for industry to offset their greenhouse gas emissions.
Emission units (carbon credits) are traded for the right to emit carbon dioxide into the atmosphere.
The ETS is a carbon market that all New Zealanders will be affected by. The ETS will account for all emissions and reductions within New Zealand. Those who absorb greenhouse gases will be paid by those who emit greenhouse gases.
Each sector of the NZ economy is being brought into the ETS in a staged manner. Forestry has been included first – with agriculture and waste to be included last.
We pay approximately $10m per annum in lease payments to landowners delivering a better return per ha on forests and marginal land.
You receive an annual lease payment (CPI adjusted upwards) – This delivers you certainty and diversity of income.
Lease payments vary depending on factors specific to each site such as:
None. You can continue to manage your forest as intended however you can not harvest the forest during the lease period. Our lease term would allow for your harvest planning horizon.
You will continue to be responsible for all local authority rates, timber insurances and the establishment and maintenance of boundary fencing.
You will continue to be responsible for the maintenance and management of the forest with regard to the agreed forestry management regime.
Typically, 10-15 years though this can depend on the age of the forest and its eligibility under the Emissions Trading Scheme.
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