Establish new timber plantation

[JDinBrisbane]

Hi all,

I have a couple of folks that want to establish a timber plantation on a private property in Northern NSW. They describe it as "cabinet timber" (implying low quality I think).

I've pinged NSW DPI multiple times about licensing, regulations etc and have not as yet encountered anyone that knows something about the licensing and regulation of private timber plantations. So, perhaps I'm not inquiring with the correct organisation or just asking the wrong questions?

Could someone please point me in the correct direction?

- What organisations license/regulate private timber plantations/private timber production and harvest?
- What licensing is required to harvest a existing forest on a private property?
- What licensing is required to establish a new commercial timber plantation - i.e. plant and grow then harvest?
- Is there a minimum land size that is required to obtain a license?
- Can those licenses be transferred to the next property owner upon sale of the property?

Much appreciated.

Cheers,
JD

[ian]

Hi all,

I have a couple of folks that want to establish a timber plantation on a private property in Northern NSW. They describe it as "cabinet timber" (implying low quality I think).cabinet timber is far from low quality.

in order of increasing value and increasing time to harvest

pulp wood -- almost any woody scrub will do -- I understand that harvesting can occur within 15 years of planting
chip wood -- a bit more specific as to species -- I understand that harvesting would typically occur more than 20 years after planting
fire wood --
construction timber -- usually a fast growing softwood -- time to harvest? I'm not sure, but the commercial mills currently seem to be processing radiata plantations established in the 50s and 60s.
cabinet or furniture grade -- time to harvest might be in excess of 60 years.
structural timber (stuff bigger than 400 x 300) -- usually only old growth

so a question to your clients would be -- how long are they prepared to wait till harvest?

also, anecdotally, unless the plantation is many 100s of hectares in size, the cost of site establishment for a logging contractor is so large as to make the standing trees almost worthless.


I've pinged NSW DPI multiple times about licensing, regulations etc and have not as yet encountered anyone that knows something about the licensing and regulation of private timber plantations. So, perhaps I'm not inquiring with the correct organisation or just asking the wrong questions?

Could someone please point me in the correct direction?first place to try is the local council and their planning regulations.
are timber plantations a permissible development?
what regulations does the council have for timber plantations?

then you can start asking the distance to the nearest mill

your other questions:
- What organisations license/regulate private timber plantations/private timber production and harvest?
- What licensing is required to harvest a existing forest on a private property?
- What licensing is required to establish a new commercial timber plantation - i.e. plant and grow then harvest? -- this is a land use question
- Is there a minimum land size that is required to obtain a license?
- Can those licenses be transferred to the next property owner upon sale of the property? -- valid development approvals are always transferable

[Bob Whitworth]

Ian, It is a complex story, not so much the legal requirements as you generally can do what you like on agricultural land but to actually make some money is the challenge. I have an internet site where you can see what I have planted and my sawmill where I am trying to bring it all together in a productive way. Not sure if I can give it here but I will hope it is okay. Generally speaking, farm forestry has strong government encouragement at the moment for many reasons but to actually make money is the challenge because you have to compete against large established organisations.
TreePlanter's Timbers (http://www.treeplanter.com.au) Bob

[John.G]

Okay, so I get the feeling from what you've written that neither you nor your clients have much background in this area. It's a noble idea but...


Planting trees for a plantation means that we need to stop regarding trees as a resource and start regarding them as a crop. So the first question has to be whether your clients currently own the property they intend to plant on, or are looking to buy one. The actual site plays a large part in determining what species are suitable. Rainfall, rainfall pattern, soil type, drainage, frost severity and/or the lack therof ... all these factors are going to play a part in determining if the location is suitable for the crop... it's no different to trying to plant rice, or sugar cane, or wheat: you either purchase property suited to your particular crop or select what crop is suitable based on the property you have. Obvious but often overlooked.

Secondly, you have to treat it like a crop. It requires planting and ongoing management. In the case of trees this means thinning, and pruning, and possibly fertiliser applications. Trees are a crop with a very long harvest cycle, and the investment over a period of decades can be cumulatively prohibitive. It's not just a case of planting and letting them grow - Australia is full of small "plantations" that were planted and then left to fend for themselves and the trees in them are quite valueless. Your clients need to understand what constitutes a sawlog, and a veneer billet, and that it isn't possible to get a silk purse from a sows ear. Good plantation timber is the result of good sivicultural management, and that requires both time - or the money to buy someone elses time.

Thirdly, one needs to truly understand the timeframes involved. There are generally ample government incentives both state and federal to plantation forestry, ranging from tax breaks to grants. However you and your clients need to understand that following the collapse of a number of high profile MIS schemes over the last decade (that anyone who knew the industry could see were guaranteed to fail BTW) that banks are generally leery of the sector. If the aim is to produce timber suitable for high value cabinetry and veneer applications then your clients need to understand that unless they are very young that it's probably a fantastic long term investment that their grandchildren will truly appreciate. 80 years would be a suitable MINIMUM timeframe to be thinking - the best value plantation timber in the world is currently teak sourced from plantations in India that are now over 150 years old. Basicly your clients will be dead before their investment matures, which does not make it a bad investment... in fact it makes it an exceptionally good one, however not one that they themselves will live to really see the benefits of. Think on what it would have cost to plant those trees in India in 1850 - at todays $5k a cube the percentage return is astronomical. This is buy and hold taken to the extreme, similar to buying Manhatten Island from the Indians for 60 dutch guilders - around $600 of todays money.

Personally if I was looking at something like this I'd be looking to buy existing timber country and then planting suitable species into the existing stand. Siviculturaly it means that our plantings will grow straight with smooth boles as they chase the light... reducing the requirement for overplanting, thinning and pruning at the expense of higher establishment costs. I'd be looking to plant high value exotics - exotics tend to have less natural pest and disease issues then natives, and there would also be less concern that the timber could be regarded as anything but a plantation. I would be very wary that at a future point native flora could be regarded as similar to native fauna is now and protected by legislation. I know of at least one plantation that a far sighted gentleman planted that was later resumed due to having a high % of a rare species. Guy planted his trees and 50 years later was told that he could not cut them- the lesson is dont plant anything that could become regarded as protected. And dont plant species that are CITES listed even if they are exotic - it makes trade difficult. Zoo elephant ivory is regarded the same as wild ivory when the elephant dies. And there would be the opportunity to harvest the existing stand well before the new plantings reach maturity. Mixed age and species plantations are also far better environmentally as an added benefit.

It's a noble idea and done properly would be a good investment. But its not a get rich quick scheme, and would only be suitable for a sophisticated investor who wouldn't miss the money or expect a return in a hurry.

[Graemela]

If pursuing this as a money making venture do your homework on the best species to plant be it indigenous or exotic. There is a book which is probably difficult to find which list Australian Eucalypts in there regional location based on the topographic map covering all of Australia, I have a copy. Also refer to a publication such as Native Trees of Australia by the CSIRO, it discuses the qualities of each species.

In NSW plantations need to be registered so that they may be guaranteed to have harvest rights in the future.You will also need to obtain a Private Ruling from the Tax Office to claim the losses each year otherwise they will be quarantined until the time of harvest.

I have a joint venture plantation with NSW State Forests which is around 15years old.

[Toymaker Len]

Right now growing cabinet timber on the north coast of NSW is about the most valuable agricultural investment possible from the point of view of accumulated value over time.
First as already mentioned site/climate/soil/water are critical. I think the best scheme is to plant red cedar, coachwood, rosewood, black bean, etc into already existing degraded wet forest so that the young trees are forced to grow straight up without pruning or expensive management and an existing ecosystem provides pest control for cedar tip moth etc. It seems that mixed forest works better than monoculture.
Second the ownership of the forest needs to be organised in such a way that portions can be bought and sold as needs be without the fund being bled dry by 'managers'. This way the originators of the scheme can cash out in some years time and capitalise on their investment while new investors come in then the new investors can trade out at a later date, and on and on. That way some continuous profit taking is possible as the plot accumulates value even if the eventual harvesting is many years in the future.
There are a number of woodies who are quietly nurturing cabinet timber plots on the north coast and are very pleased with how they are going. After all rosewood, red cedar, black bean, etc. are all going to be rare and valuable for many centuries to come.