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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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