Financial returns and forestry
February 2007
Gerard Horgan, Senior Policy Analyst
MAF Policy Rotorua
Introduction
With forests and in particular the commercial plantation estate likely to play an important role in helping New Zealand meet it’s Kyoto Protocol commitments in Commitment Period 1, the decline since 1994 of the new planting rate and, in more recent time, the fall in the re-planting rate and the issue of deforestation is important. Will declining planting rates continue into the future? And what might be done to halt and/or reverse the decline? The work outlined in this report was initially begun to see if it were possible to identify some generalised the relationship between expected returns for commercial forestry and the new planting rate. With the rising concern about deforestation it was then extended to look at the question of the existing estate and the possible response to better returns both in terms of new planting rates and maintenance of the already existing estate.
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