Agriculture ministers announce new rules.
Agriculture and Forestry Minister Todd McClay, along with Climate Change Minister Simon Watts, unveiled measures aimed at limiting farm-to-forestry conversions entering the Emissions Trading Scheme (ETS). The changes are part of a key election commitment to safeguard food production while ensuring ETS certainty for foresters.
The new rules include a moratorium on exotic forestry registrations for actively farmed land and an annual registration cap of 15,000 hectares for LUC-6 farmland. Additionally, up to 25% of a farm's land can be planted in forestry for the ETS, retaining farmers' flexibility and choice. Landowners will also have the option to reassess their property's Land Use Classification (LUC) categorisation.
Excluding specific categories of Māori-owned land from restrictions aligns with Treaty obligations while allowing for economic development pathways. Transitional measures will be implemented for landowners already in the process of afforestation who can demonstrate an intent to afforest before December 2024.
The ministers believe these changes protect New Zealand's most productive farmland while allowing room for sustainable forestry growth and providing ETS certainty for participants. Legislation to enforce the new rules is expected to be introduced in 2025, with a planned entry into force from October 2025.