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June, 2020

New business agreement with ForestX

NZFFA has negotiated a Referral and Collaboration Agreement with ForestX NZ Ltd, who provide transaction support for the sales of forests, land and standing timber. The seller pays a listing fee on success, but NZFFA members and the associates they introduce get a discount, and the NZFFA will get a commission of 1%. ForestX will use its web site, sales experience, and contacts to market each woodlot. 

To help each seller ForestX will provide a market price assessment that normally includes:

  1. A pre-due diligence and transaction checklist
  2. Potential listing price based on a range of marketing options
  3. Recommendation on possible local buyers.

To help potential buyers it will provide a Forest Description report that contains:

  • A map of the woodlot with appropriate stand information
  • A map of its location within legal boundaries
  • A description of local rainfall, terrain and wood productivity
  • A description of local risk levels for fire and wind as well as NES Plantation Forest erosion ratings
  • A comment on carbon status (e.g. pre 1990 or post 1989 land) including comment on available ETS documentation. 

These reports should make both buyers and sellers more confident, and boost sales values. The service is designed to help all members with selling trees.

ForestX will promote NZFFA as a key collaborative partner in its marketing material, and NZFFA will use reasonable endeavours to promote ForestX. It will use the Tree Grower to communicate the offer to members and small-scale growers who are not members and it will help promote ForestX on its website. 

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