Farmers have welcomed the Government’s move designed to limit farm to forestry conversions entering the Emissions Trading Scheme (ETS).

Announced today, Agriculture and Forestry Minister Todd McClay says the changes deliver on an election commitment to protect food production for farmers while providing ETS certainty for foresters.

“They also address the previous Government’s failed ETS policies that incentivised large-scale conversion, created ETS complexity, and undermined our world-best primary producers,” he says.

Included in the rule changes are:

A moratorium on exotic forestry registrations for Land Use Classification 1-5 actively farmed land.
An annual registration cap of 15,000ha for exotic forestry registrations on LUC 6 farmland.
Allowing up to 25% of a farm’s LUC 1-6 land to be planted in forestry for the ETS, ensuring farmers retain flexibility and choice.
The ability for landowners to have their LUC categorisation reassessed at the property level
Excluding specific categories for Māori-owned land from the restrictions, in line with Treaty obligations, while ensuring pathways for economic development.

Transitional measures for landowners currently in the process of afforestation who can demonstrate an intent to afforest prior to 4 December 2024.

“These measures help to protect our most productive farmland while allowing room for sustainable forestry growth,” McClay says.

“Landowners will retain the ability to make smart land use decisions, enhancing both profitability and environmental outcomes,” he adds.

Meanwhile, Climate Change Minister Simon Watts says the changes provide much-needed clarity for participants in the ETS.

“These reforms ensure a credible ETS whilst protecting rural livelihoods,” Watts says.

He says forestry and agriculture both play a significant role in the Government’s climate strategy.

Source: ruralnewsgroup.co.nz