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Farm forestry

Farm forestry is basically growing trees for profit on farms. It includes growing a range of different tree species in a range of configurations for a range of products.

Farm forestry is becoming increasingly popular amongst landholders looking for an economically viable alternative to traditional agriculture.

Trees can provide a range of useful products many of which have established markets in the Southern Tablelands region of NSW and the ACT.

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Economics

Compared to other agricultural enterprises farm forestry is economically attractive. Returns from a good radiata pine plantation in the Southern Tablelands region can be in the order of $15,000 - $30,000 per Ha at 30 years old depending on a number of variables.

A whole range of other products provide various returns depending on the quality of the product and the market. Landholders can look at the range of farm forestry options available to them and select the one that will most suit their situation.

Farm forestry offers landholders a way of economically diversifying their property with a long term investment.

For landholders not in the business of primary production (landholders with an off farm income) investing in farm forestry on their properties can allow them to become eligible for primary producer status with some attractive taxation benefits.

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Markets

The largest market for tree products in the Southern Tablelands region is Radiata Pine sawn timber. Pine is an excellent option for landholders considering growing trees for profit, especially plantings over 10ha in size. Pinus radiata is very adaptable and grows well across a range of sites, and has well established local industry and markets looking to source more resource from private holdings.

Other potential markets include the production of firewood from native species and perhaps small batches of sawn hardwood. Small scale technology such as portable sawmills for small batches is available via local contractors. On-farm seasoning and niche marketing will be required for the sale of hardwood in the Southern Tablelands.

Non-wood markets also exist from forest products such as seed and foliage. Commercial seed orchids of native species are increasingly being planted, as well as new plantings of blue foliage gums for the cut flower industry.

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Other benefits

Aside from the direct financial benefit of growing trees for profit there are some other significant benefits.

These include:

  • the conversion of unproductive land into productive land. For example, farm forests can be established on unimproved, rocky slopes where grazing value is marginal;
  • increases in whole-farm agricultural productivity through the provision of shelter and protection for stock, pasture and crops;
  • addressing a variety of land degradation issues such as water quality maintenance, salinity abatement, enhancing the connectivity of native vegetation and environmental plantings, or serrated tussock control.  

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  © Southern Tablelands Farm Forestry Network Last updated 25 July, 2006
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