Federated Farmers slams select committee’s carbon forestry ban recommendations

Richard Dawkins, Federated Farmers forestry spokesperson, says the report is an "incredibly disappointing result", adding that many farmers will be feeling a sense of betrayal.

"Despite widespread feedback during consultation, and clear cross-party support for action, massive loopholes remain in the Environment Select Committee's recommendations," says Dawkins.

"Their report sends a clear message to rural New Zealand that the march of permanent carbon farms across productive farmland won't be stopping any time soon," he adds.

Dawkins says that one silver lining is that the committee has listened to Federated Farmers' concerns regarding the need to tighten rules around the 'intent to plant' test.

"We made a very strong case that simply purchasing seedlings before 4 December 2024, with no land to plant them on, should not count as a clear intent to plant.

"The committee has recommended the Bill be redrafted to make it crystal clear to carbon foresters that if they had seedlings but no land, they won't be able to enter the ETS."

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Dawkins says that if the select committee's recommendations are accepted, then any carbon farmers who have been trying to skirt around the rules will need to make other plans.

He is also critical of other aspects of the report, saying recommended changes have missed the mark.

"It's extremely disappointing that what's proposed continues to ban whole-farm conversions only on Land Use Capability (LUC) classes 1-5 land," Dawkins says.

"That might sound good in a press release, but in reality only 12% of farm conversions were happening on that land anyway. Our productive hill country - the engine room of the agricultural industry - is still at risk of becoming a giant pollution-driven carbon farm."

He says two-thirds of sheep and beef farms are on classes 6 and 7 land.

"Those classes of land are still exempt from the 25% carbon credit restrictions, so the vast majority of our sheep and beef farms will still be at risk of full conversion to carbon forestry.

"Once those farms are gone, they're gone for good."

Dawkins says while Federated Farmers has always supported the intent of the law changes, what's proposed won't deliver meaningful change.

"Recommendations on the Bill allow a potential ‘lottery’ system for class 6 land, where 15,000ha of conversions each year will likely still occur on a first-come-first-served basis.

"There are also no restrictions on classes 7 and 8 land - effectively making it open slather. If you’re in the business of carbon forestry, business is going to be booming."

Federated Farmers says that every farm in New Zealand should be subject to the same 25% carbon credit limit, regardless of LUC rating.

"Otherwise, the damage just shifts - it doesn’t stop," Dawkins says.

"Class 6 and 7 hill country is not ‘marginal land’ as it’s often described by foresters. It’s often productive breeding land that underpins New Zealand’s entire red meat sector.

"Sacrificing that land to carbon speculation isn’t just short-sighted, it’s economic self-sabotage that will rip the guts out of rural communities, not to mention the national economy."