Summary
This project aimed to identify a practical policy option to stimulate expansion of the softwood plantation estate in New South Wales and address growing timber supply constrai nts. The report highlighted a long-term decline in plantation establishment, increasing demand for wood products, and the additional supply pressures created by the 2020 bushfires. It argued that reduced fibre availability threatens the regional economy of the South West Slopes, where plantation forestry and wood processing are major employers. The proposed model involves government acquisition of suitable land, which would then be leased to private plantation growers at commercial rates. This approach seeks to remove the high upfront cost of land ownership while allowing growers to benefit from timber production and potential carbon credit revenue. Financial modelling suggests that the model could generate commercially attractive returns and encourage new plantation investment. The proposal targets the establishment of 30,000 hectares of new plantations over ten years, improving long-term fibre security, supporting regional industry growth, and strengthening economic resilience in forestry-dependent communities
Acknowledgement of funding
This report was commissioned by the Murray Region Forestry Hub with funding from the Australian Government, Department of Agriculture, Fisheries and Forestry.
Disclaimer
Reports prepared for Regional Forestry Hubs, and any recommendations contained in the reports, are provided as received by the Hub and are not endorsed positions of the Hub. They do not constitute Australian Government policy.
