No. 1 Choosing land for planting for profit
NEW ZEALAND FARM FORESTRY ASSOCIATION- INFORMATION LEAFLET
Introduction
Many of the people interested in planting trees for profit are farmers
who already own the land and wish to diversify their income or capital
assets in future. However, increasing numbers of tree planters are not
farmers, but people who want to create a valuable asset by planting
trees. The following is aimed principally at those who want to buy land
for forestry, but much of it applies equally well to those who already
own land and want to choose the best sites for planting.
Location
How far is the site from the nearest port, or processing plant with
ready access to export facilities? Long distance transport is costly
and has a major impact on profitability. Transport costs for sites that
are
more than 100km from the market can seriously erode returns for logs.
Access
How close is the site to a public road and is there legal access?
Getting logs from the site to a public road requires good reliable
access for logging trucks.
Roading to a suitable standard can be very expensive, particularly if
the costs have to be met from only a small block of trees. If access
would require upgrading, make sure the site is sufficiently large to
bear the cost without seriously affecting profitability. The quality of
access can also impinge quite significantly on silvicultural costs
(site preparation, planting, releasing, pruning and thinning). If
access is by right-of-way or paper road, ensure that there are no
impediments to using that access.
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Topography
Is the site flat, rolling or steep hill country? Steep topography not
only increases silvicultural costs and preclude a production thinning,
but can have a major impact on harvesting costs. If tracking is
required for harvesting machinery, this will affect profitability, and
if harvesting has to be by hauler rather than ground transport, costs
will be even greater. Make sure that the drainage of flatter areas is
naturally good enough for satisfactory tree growth, because there
are no commercial species that will grow on poorly drained sites, and
artificial drainage is usually expensive. Be aware that in cool
climates, flat areas may be frost flats where it is difficult to get
trees established.
Vegetation cover
Is the site covered by scrub or fern which needs to be removed before
the site can be planted? Woody weeds can be expensive to remove or
control, and if weeds like gorse and broom are not brought under
control, they will affect the growth of trees and increase
silvicultural costs.
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Climate
Is the climate suitable for the species you wish to grow? Radiata pine
is the principal commercial species and will grow on a wide variety of
sites, but on cold, dry or exposed sites growth is slow and
profitability may be seriously affected. Douglas-fir is more suitable
for cold or snow-prone sites, but requires a good reliable rainfall to
be profitable, and form can be badly affected on frost flats or exposed
situations. Other species like cypresses and eucalypts will only grow
well where they are not subject to serious water stress.
Site quality
Site characteristics can affect both the quantity and quality of the
wood produced. Deep, well-drained moisture-retentive sites of high
fertility with good shelter are capable of high volume growth but wood
quality and stem form are inferior and management is more difficult.
Such sites are also of most value to farming. Sites of lower fertility
produce less volume, but wood quality and tree form are better. Some
low quality sites can be upgraded by adding
fertiliser, but others (sands, and soils with low cation exchange
capacity) are incapable of much improvement. Shallow soils are
incapable of supporting high volumes/ha.
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Risks
What are the likely risks to the growing stands? Animals, both wild and
domestic can be a problem, and may need to be brought and kept under
control at some cost. In cooler climates, some sites are prone to
periodic snow damage, making profitable forestry very risky. Windthrow
can ruin profitability, and is a particular risk where soils are
shallow or seasonally wet, or the climate is windy.
Trees placed under stress by occasional droughts are especially
susceptible to insect pests and diseases. In particular, macrocarpa is
much more prone to canker, and Douglas-fir to needle-cast under such
conditions.
Fire is an ever-present danger, especially in climates prone to
drought, but risk can be minimised by avoiding sites adjacent to
scrubland, fernland or other exotic forests. Although plantings should
be consolidated into reasonable size blocks if possible (dozens of ha),
if planning a major afforestation, consider planting in several
locations to minimise the risk of fire or major climatic damage.
Legal constraints
Are there any legal constraints on the title or local authority
regulations that are likely to affect the profitability of growing
trees?. When buying land, check to ensure that previous owners have no
registered interests against the title, and make sure you are aware of
any easements pertaining to the property, including powerline
easements. Check that boundary fences follow the legal boundaries.
Forest activities such as roading or vegetation clearance, may require
Resource Consents from Regional and District Councils under the
provisions of the Resource Management Act 1991, and getting these
consents may be costly.
Check the local District Plan to ensure that you can meet all the rules
without incurring major costs. Check to see whether there is any
likelihood of any archaeological sites on the property.
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Forest management
Even if you plan to do all the preparation and silviculture yourself,
it is sensible to employ a reputable consultant before you commit
yourself to any expenditure, because such a consultant may help you
avoid pitfalls that you had not foreseen. In particular, consultants
are aware of the many difficulties that can arise at the time of
harvesting, and even if you have done everything else right in growing
the trees, excess harvesting costs can seriously reduce the potential
profitability of the whole enterprise.
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