Southern Tablelands Farm Forestry Network |
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Growing trees for profit on the Southern Tablelands [Print this fact sheet - pdf 147kb] Growing trees for profit or ‘commercial 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. 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. Many variables can change this figure. 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. Markets The largest market for tree products in the Southern Tablelands regions is sawn timber from Radiata pine. Pine is an excellent option for landholders considering growing trees for profit. This is because pine grows well across a range of sites, much research has gone into breeding and understanding its management and there is a well established industry and markets looking to source more timber. A number of niche market opportunities exist for hardwood timber, especially from eucalypts. Other financial benefits Aside from the direct financial benefit of growing trees for profit there are some other significant financial benefits. These include
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