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Investment, Legal and Insurance

Investment and Returns

Tree Grower articles

  • Eat your greens, tax is good for you (Access: NZFFA membership)
    Howard Moore, February 2021
    The following observations and analogies are not meant to be necessarily true, accurate or comprehensive. They are simply an attempt to accept the unpalatable by rationalising the unknowable. This is…
  • Forestry lifestyle blocks: Subdivision opportunities and pitfalls for sellers and buyers (Access: NZFFA membership)
    Hamish Levack, August 2020
    Subdividing a rural property is a complex process and you will probably have to jump through a number of hoops to succeed. Although district and regional councils provide useful guidelines…
  • Are farmers missing out on wealth from forestry? (Access: NZFFA membership)
    Graham West, August 2020
    The average farmer works extremely hard to create wealth for themselves and others. They face adversity of all types but get up each morning determined that growing more grass and…
  • Forest for sale? Getting a fair return (Access: NZFFA membership)
    Howard Moore, August 2020
    Selling trees can be a bit like mating pandas. It seldom happens, there is a question of trust and the result may be unsatisfactory. When it is successful everyone is delighted, but screams…
  • Stumpage contracts or selling forestry rights (Access: NZFFA membership)
    Tiffany Robertson, August 2020
    Many of you may see the benefit of selling some of your assets and retaining others and it may be a good way to free up capital during these uncertain times. However, caution should…
  • Real estate exemption - good news for forest owners (Access: unrestricted)
    Andrew McEwen, February 2018
    Since November 2017 current and prospective forest owners have once again been able to use forestry professionals to help with the purchase or sale of forest land, forests, forestry rights…
  • If you plant trees during the next few years, will they be a profitable investment? (Access: unrestricted)
    Hamish Levack, February 2018
    It is impossible to be sure, but many indications point to continued investment in forestry being well worthwhile. The first question to answer is − Will the profitability be affected…
  • Selling standing trees and forest land (Access: unrestricted)
    Kim von Lanthen, August 2017
    If we think of a woodlot as an asset, then it has a market value. For woodlot owners wanting to cash out before harvest, there are two important questions. Can…
  • Selling your forest just became easier (Access: unrestricted)
    Kim von Lanthen, November 2016
    The needs of forest owners change as time passes. Not everyone wants to keep their forest into the future. Children build their own lives, land prices rise, health fails, partners…
  • Have you got anywhere to plant trees? (Access: unrestricted)
    Jean-Paul Praat, November 2016
    This article about harvesting is from a slightly different viewpoint. The author was the investor and he wrote the article originally for those unfamiliar with growing a woodlot. Have you…
  • Forestry investments – Current returns and future prospects (Access: unrestricted)
    Peter Gresham, November 2015
    The first part of this article, about forestry investments and the returns from harvest, was first published in Tree Grower in early 2004. Now, over 11 years later, it seemed to be…
  • Sell now, harvest later - Bring forward your forest cash receipts (Access: unrestricted)
    Howard Moore, August 2012
    Section EI 1 of the Income Tax Act 2007 allows anyone selling standing timber to spread their income for tax purposes. That is useful, but it may be more useful…

Videos:

  • Trees on Farms Videos: Returns from Harvesting
    Farmers talk about their recent experiences (around 2011) in harvesting small blocks of Radiata pine that were planted for erosion control, or on marginal land. Their income ranged from $15-50,000…

See also:

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Retirement and Succession

Treegrower articles:

  • Succession planning for forestry owners (Access: unrestricted)
    Jo McIntosh and Nigel Webb, August 2017
    Generally speaking, those involved in forestry tend to be patient, long-term planners. Planting young trees is not a quick return, but you do it because in the long-term you know…
  • Succession planning for small-scale forest owners (Access: unrestricted)
    Tony Marshall, May 2017
    In any business, the choice of business structure is an important decision which requires careful planning. This is particularly true with respect to the ownership of forestry as there are…

Videos

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Insurance

Treegrower articles:

  • Change with the times for insurance (Access: NZFFA membership)
    Tiffany Robertson, November 2019
    Insurance is an ever-changing environment as new products become available and legal changes are introduced or amended. It is important to ensure your insurance is keeping up with these changes.…
  • Directors and officers liability: The heat is on (Access: NZFFA membership)
    Jo McIntosh, August 2019
    Most of you will have seen the papers and the recent high profile Mainzeal case. This judgment has thrown directors and officers liability insurance back in the spotlight. At the…
  • Marine insurance: Is it time that we all talk like a pirate? (Access: unrestricted)
    Jo McIntosh, November 2018
    ‘Talk like a pirate’ day on 19 September was celebrated by many involved in the marine insurance world and an opportunity for people to dress up as pirates and raise…
  • Crime and punishment comes to the forest (Access: unrestricted)
    August 2018
    The title of the article may be a bit scary but I promise not all is lost as there are solutions to be found. A few weeks ago, I met…
  • Carbon insurance and the Emissions Trading Scheme (Access: unrestricted)
    Jo McIntonsh and Ollie Belton, February 2018
    Is it time to take another look at your carbon and the Emissions Trading Scheme? In 2011, I was asked to speak to forest owners at the Carbon Forestry Conference.…
  • When it rains, it pours (Access: unrestricted)
    Jo McIntosh, November 2017
    This article looks at how local and global events can affect your insurance coverage and specifically the effect on standing timber insurance. We then discuss what steps you can take…
  • Is your forest insurance cover still suitable? (Access: unrestricted)
    Jo McIntosh, August 2015
    There is nothing like a significant disaster to get people rushing to review their insurance cover. That sinking feeling and wondering if you are covered is never a good experience.…
  • Drought and fires ? another challenging time for forest owners? (Access: unrestricted)
    Jo McIntosh, May 2015
    It has been another hot dry summer which once again has increased the risk of fires in rural New Zealand. There have been some recent high profile fires which caused…
  • Insurance for forest and rural fire liabilities (Access: unrestricted)
    Jeremy Manks, February 2015
    All individuals or businesses are exposed to liability for damage or personal injury caused by fire. However the Forest and Rural Fires Act imposes extra liabilities within rural fire districts.…
  • Changes in the forestry insurance market (Access: unrestricted)
    Geoff Manks, February 2014
    The NZI brand has been synonymous with New Zealand forestry insurance over the past 30 years. They entered the market when few other insurers would, or could, and built a…
  • Forest owners’ liability insurance (Access: unrestricted)
    Jo McIntosh, February 2014
    As we look forward to some sunny days, owners of standing timber might also want to give some thought to the increased risk which a hot dry summer brings. If…
  • Insure your trees and help benefit the NZFFA (Access: unrestricted)
    Jo McIntosh, November 2013
    Insuring trees is often overlooked, but standing timber can play an important role in the income of many farmers. It seems an anomaly that farm foresters more frequently choose to…
  • Insurance for woodlots and farm foresters (Access: unrestricted)
    Darryl Hawke, May 2012
    There is a long history of farm forestry insurance in New Zealand. Although many small forest owners have sought to protect their investment with insurance, some have opted to take…
  • What is risk management? (Access: unrestricted)
    Jane Marsick, May 2012
    All farms face risks which can potentially affect the assets or income. In terms of a small forest, many of the risks are fairly obvious such as fire or storm…
  • Risk management and insurance (Access: unrestricted)
    Rural Fire Authority, May 2012
    The conversion of land from forestry to pasture has gained momentum in recent years. While most of this land is destined for dairying, many sheep and beef farmers retain forestry…
  • Carbon insurance liability (Access: unrestricted)
    Geoff Manks, February 2012
    You may be a forester growing trees for the purpose of trading your carbon credits, or you may provide professional advice to those involved in carbon forestry, or carry out…
  • Insuring carbon in your trees (Access: unrestricted)
    Geoff Manks, November 2010
    It is reasonable to ask how you can insure something which without help, you cannot see, hear or feel. Following the introduction of the ETS, forest owners who trade their…
  • Risk management and insurance (Access: unrestricted)
    Keith Hales, February 2005
    This is the first of a two part series of articles on risk management and insurance. The next article will address insurance, but before considering spending money insuring your trees you…
  • Forestry insurance - the next steps (Access: unrestricted)
    Keith Hales, May 2005
    The risk management article in the February issue of Tree Grower discussed the basics of managing risk. What was said there can be applied to any risk including driving a…

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Legal and Tax

Information leaflets

  • Taxation of forestry
    NZFFA Information leaflet No. 15 (2018). Definitions There are 3351 pages in the Income Tax Act 2007 and it keeps on getting longer. Because it treats farmers differently from foresters…
  • Taxation of forestry
    NZFFA Information leaflet No. 15 (2005). Over the past couple of decades, a number of different regimes have provided for the taxation of forestry ventures. The following provides an overview of…

Tree Grower articles

  • Privacy Act 2020 and mandatory privacy breach reporting (Access: NZFFA membership)
    Alan Knowsley, May 2021
    This article explains the steps a farmer or forestry organisation must take when reporting to the Privacy Commissioner and the individuals concerned if there has been a privacy breach under…
  • Directors and officers liability: The heat is on (Access: NZFFA membership)
    Jo McIntosh, August 2019
    Most of you will have seen the papers and the recent high profile Mainzeal case. This judgment has thrown directors and officers liability insurance back in the spotlight. At the…
  • Income tax - When is it smart to be a farmer? (Access: unrestricted)
    Howard Moore, August 2018
    There are 3,351 pages in the Income Tax Act 2007 and it keeps on getting longer. Because it treats farmers differently from foresters it pays to know why, where and…
  • Options for changing the Cost of Standing Timber provisions (Access: unrestricted)
    Howard Moore, May 2016
    Sections of the Income Tax Act 2007 behave as a barrier to the aggregation of small forests. Aggregation would allow coordinated harvesting, continuity of supply and economies of scale, all…
  • Forestry with lifestyle (Access: unrestricted)
    Murray Downs, May 2006
    Some business and tax advice for new owners seeking to combine forestry with lifestyle benefits. To be eligible for tax deductions on your forestry property, your activities need to qualify…
  • Death, your forest and taxes (Access: unrestricted)
    Murray Downs, February 2006
    Two accountants are in a bank when armed robbers burst in. While several of the robbers take money from the tellers, others line the customers against a wall and proceed…
  • Business and environment friendly tax changes (Access: unrestricted)
    Ian Cairns, November 2005
    Farm foresters could benefit from recently announced tax changes. These changes are designed to encourage environmental expenditure and site restoration, such as riparian and other new bush or forestry planting.…
  • Are you in the business of forestry? (Access: unrestricted)
    Murray Downs, November 2005
    As a farm forester, what tree tax deductions are you entitled to? It all depends whether you are a lifestyler, investor, farmer or forester. This article looks at the main…
  • Loss attributing qualifying companies: Perks and your checklist for quirks (Access: unrestricted)
    Murray Downs, May 2005
    From a purist’s tax perspective, using a loss attributing qualifying company (LAQC) to own your forest is a real perk. And the government knows it. An LAQC is a company…
  • Buying or selling land with standing timber (Access: unrestricted)
    Murray Downs, February 2005
    When selling or buying property, there are two elements to consider with regard to standing timber – Will it be taxable? How is it valued? Standing timber by itself does…

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Land Tenure

Information leaflets

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