Private forestry potential

“A good productive forest can return the same dollars as grazing.”

That’s according to advocate Sean Ryan from Private Forestry Southern Queensland, who says while it’s a long term investment, adoption of good management of private forestry, can drought proof property, increase cash flow and improve green credentials.

This audio link  is a 15   minute  discussion with various interviewees; Sean’s discussion is approximately 5 minutes.

MEET Queensland’s first CarbonSmart assessor.

Paul Daly has been appointed by South East Queensland Catchments and Landcare, so property owners can find out just how much their land is worth as a carbon sink. He will estimate and register carbon sinks, which are plantings conducted on private land since 1990.

Mr Daly, a farm forestry extension officer, examines the size, age and condition of a forest and rates it according to a formula.
If sold to a carbon emitter, the landholder receives 60 per cent of returns; 10 per cent is put aside in an insurance pool in case fire or disease destroys the trees; and the remainder goes to management, assessment and trading costs.

Mr Daly said yesterday the southeast was a prime place for carbon trading because its eucalypt species had strong growth rates. Sub-tropical eucalypts grew far more quickly than southern species, making them of greater value in a carbon-trading scheme.
An average hectare of southeast eucalypt country could store between 10 tonnes and 20 tonnes of carbon. Currently this was trading at $20 a tonne. “But what grows at Kin Kin and Bellthorpe (Sunshine Coast hinterland) is different to what grows in the Lockyer (drier country southwestof Brisbane) and has different storage levels,” he said.

Mr Daly said the project would deliver an income stream to owners of land not being used for agriculture.“It also delivers the inherent benefits of revegetation, including stock and crop protection, improvement of erosion and soil salinity problems and invigorated biodiversity, all of which promotes greater productivity on the land,” he said.

Landcare’s role was the creation of a not-for-profit carbon pool called Carbonsmart which handled trading. It started in southern states last year. Carbon credits were sold from the carbon pool to people who wanted to offset their carbon-producing activities, such as an electricity producer. The scheme provided a financial incentive for landholders to maintain eligible carbon credit vegetation on their land for 100 years. Landholders receive annual payments and if the price of carbon rises, so do payments.

Carbonsmart managing director Matthew Reddy said his organisation had traded more than $1 million in contracts since starting in March last year.

It is estimated carbon trading worldwide will be worth more than $3 trillion by 2020.

The Sunshine Coast hinterland is one region of South East Qld where small-scale farm forestry is a developing industry with significant future potential. This region contains an array of large commercial and smaller ‘hobby’ farms on which woodlots are becoming increasingly common.

A culture of commercial tree growing is swiftly gaining momentum amongst private, small-scale landholders and so too is the environmental awareness of these landholders. Local farm forestry support groups are encouraging a whole of landscape approach to integrate trees with other farm uses, using mixtures of Eucalypts and/or rainforest species for multiple purposes. There is an abundance of small to large parcels of suitable, previously cleared former farmland available for planting to achieve multiple objectives, including timber production.

Description of the Case Study

Site Specifics: The property is located in the Cooroy region of Noosa Shire. Total property area is ~9.5 ha, two-thirds of which were cleared paddocks when the current owners purchased the block in 1994. These areas had historically been used for cropping (pineapple, banana, and beans) and then for cattle grazing for ~2.5 years before treeplanting efforts began in late 1997.

The soil is derived of phyllites that have been weathered and heavily leached over time to produce acidic clay soils. They are of reasonable structure, with a gradational profile and are of generally low to occasionally moderate fertility.

Management Objectives:

• To revegetate / restore tree cover to previously grazed paddock areas as a means of reducing weed and grass growth and subsequent maintenance effort and costs.
• To generate some financial returns from the mixed Eucalyptus species farm forestry venture, while also maintaining some form of eucalypt tree cover in perpetuity.
• Create economical, environmental (soil stabilisation, habitat value, conservation of local flora and fauna spp, clean air etc.) and aesthetic (green ‘trees in the landscape’ outlook) benefits for the property through the integration of timber production and conservation oriented tree planting efforts

Mixed Eucalypt Plantation Establishment Method & Maintenance:

The plantation was established between September 1997 and April 1998. Overall ~1.5ha has been planted and the trees are around 7 years old as of April 2005. A mix of species was selected based on their compatibility with the locality and site conditions.

Species planted are Grey Gum (Eucalyptus propinqua), Forest Red Gum (E. tereticornis), Tallowwood (E. microcorys), Bloodwood (Corymbia. intermedia), Blackbutt (E. pilularis), Large Fruited Red Mahogany (E. pellita), White Mahogany (E. acmenoides), Spotted Gum (Corymbia maculata) and Gympie Messmate (E. cloeziana).

 Mixed Eucalypt plantation with resident grazing donkey

The plantation was designed and established under the guidance and assistance of the Noosa and District Landcare Farm Forestry Project. This planting forms part of a wider farm forestry development and promotional effort conducted over the past 9 years by this organization.

Initial site preparation began in late July 1997 and involved woody weed removal, slashing and spraying of grasses, deep ripping along contours, and follow-up spraying of rip lines in preparation for tree planting. Tree seedlings of local provenance were sourced from the Noosa Landcare Farm Forestry Nursery at Pomona. Around 1,100 trees/ha were planted and watered in, and hand watering was conducted over the next 6 months due to unseasonably dry conditions. Ongoing maintenance has involved slashing and spraying of weeds as required. No fertiliser has been applied to the trees and some regular form pruning has been implemented where it has been deemed necessary to improve future merchantability of stems.

First thinning materials 

During early August 2004 some contract silvicultural works were undertaken. This included slashing of grass and weeds, thinning that removed approximately 175 stems/ha (the majority of these were severely suppressed and/or defective stems) and pruning the remaining trees to a height of approximately 4.5m. The stand now contains approximately 775 stems/ha at age 7.

Plantation Performance:

Data generated from an initial forest inventory suggests that at age 5, the mixed species plantation had an average stem DBHOB of ~9cm and average tree height of ~8m. Approximately 30 – 40% of the plantation presents very good form, is in a healthy and vigorous condition and is deemed to be closer to what could be considered the expected averages (DBHOB ~15cm, Height ~12m) for a Eucalypt plantation in this region at this age.

Discussion & Recommendations:

Data obtained from the inventory undertaken in May 2003 showed that of the average surviving 950 stems/ha (at age 5), approximately 200 – 250/ha were obviously suppressed and exhibited no potential for future product delivery; they were simply competing for limited site resources. Ideally, these and more stems would have been removed at an early age in a non-commercial thin. This lack of early stand thinning and the fact that no fertilizer was applied on soils of low – moderate fertility are deemed to be factors contributing to the lower than could be expected performance to date on this site. Additional to this is the mix of species used, which have displayed differing performance in terms of growth rates and form. A cost of such a mixture is the difference in MAI that could be achieved if compared to a monoculture of the best performing species on the site, however, the carefully selected species mix used has created higher aesthetic and biodiversity values than a monoculture could. This is a good example of a productivity trade off resulting from a multiple objective, small-scale farm forestry investment.

The recent thinning operation is considered a good start towards preventing the stand from becoming further ‘locked-up’, and ensuring the quality, dominant stems have the necessary space to grow to their potential. However, a second thin will be essential, and should be conducted ASAP to ensure that an improved MAI can be realized. Essentially, it is now widely accepted (through results generated from a range of studies) that in order to grow large Eucalypt logs in a 25 – 30 year period, you must thin early and hard.

The very small scale of this venture could create difficulties in relation to marketing issues, such as engaging an interested buyer and ensuring harvest and haulage costs do not preclude an acceptable stumpage rate for the forest products. A strong marketing effort will be required. Pruned Stand Certification (independent verification that pruning has been conducted in a timely and appropriate manner to optimize higher-value clearwood for sawlogs) may be an option, as could be on-site milling to produce sawn timber. This could significantly improve the stumpage value, but will also involve production costs. Therefore, when considering such a value-adding strategy, the final outcome should be considered in terms of profits realized.

•  Tree planting efforts havehelped to stabilize

• soils and inproved the aesthetic appeal of the farm

Future management strategies for this multiple objective venture are not clear-cut, and so some alternative options are suggested here that may assist in integrating productive and long-term conservation and aesthetic benefits. An experimental approach could be to attempt to convert the plantation to a naturally regenerating, mixed species and age class forest through a number of silvicultural treatments including strategic thinning, coppice selection and the use of fire. Further strategies could include the retention of suitable habitat recruitment trees, use of a variety of nest boxes, creating snags, allowing a component of coarse woody debris to accumulate on the forest floor, and the natural recruitment or planting of understorey species such as wattles and other important food source species for a range of wildlife. Such approaches would likely involve further timber production trade-offs, but would meet the owners’ other important goals of retaining some Eucalypt tree cover in perpetuity for long-term conservation/aesthetic benefits and would also promote structural and functional complexity to further enhance biodiversity values.

Finally, Noosa Shire Council’s Local Law 10 – Vegetation Management 2003 should be considered for the future management of this farm forestry investment. The harvesting of timber as part of a forestry practice requires a permit under this Law. This Law also provides an opportunity for landowners to register a farm forestry plot with the Council, reportedly to aid the Council’s mapping of farm forestry projects within the Shire, but more importantly, to ensure a forest owners ‘right to harvest’ a planted forest. This is a recommended approach to clearly display the management objectives / intentions for this investment, and to hopefully protect the investors’ future property rights against any unnecessary Local Government ‘red tape’.

Introduction

Plantations are variously susceptible to such risks as drought, pestilence, vermin, disease, fire, flood and wind as well as poor management and neglect. Even if they are well managed and grow well there are still market risks. Fortunately, farmers are well placed to minimise risk by reducing costs and carefully designing their forests so as to capture multiple benefits.  

Good design can provide real benefits in the short-term which make waiting for the trees to mature much more enjoyable and far less risky. Below are some of the ways farmers can ‘insure’ against risk associated with growing trees for timber – while saving on the premiums.

Network: Increase Your Knowledge

Develop and maintain knowledge about farm forestry in your area including the available markets. Learning from others allows you to adapt their experience to suit your own circumstances and ensures that you have a clear vision of what you are trying to produce. It also provides the opportunity to avoid making the same mistakes yourself.

 A useful means of exchanging information and discussing ideas with others is via agroforestry and farm forestry networks. Networks combine landholders, industry and government people interested in agroforestry. Collectively, networks produce and share information providing a link into what is happening in other areas. If your area doesn’t have a network, start one.

Select A Low Risk Site For Your Trees

Site selection includes considerations of soil type, climate, rainfall, topography, alternative land use options, adjacent land uses and access for harvesting. Clearly some sites, such as those close to roads or native forest, are at greater risk of fire than those surrounded by summer crops or grazed pastures.

Land with little or no value for agriculture may be quite suitable for trees. Alternatively, land fenced out from erosion control or shelterbelts may be ideal for timber production. Using such land reduces economic risk by reducing the opportunity costs of lost agricultural production. In fact, most farmers identify as much as 10% of their farms that can be planted to trees with no loss of agricultural production.

Roads and creek crossings required for extracting logs can be expensive. Small areas or mixed species planting are more expensive to harvest than large areas. The more expensive the harvesting costs the greater must be the value of the product if harvesting is to be viable. Log size is the key. Research suggests that small scale manual harvesting is only likely to be viable if tree diameters are large (say over 45 or 50 cm).

Use Your Agriculture To Reduce Your Forestry Risks

The simplest thing a farmer can do to reduce the fire risk is to graze in and around their plantations or grow summer crops beside them. By using (or adapting) their existing equipment, farmers can reduce the costs of establishing and managing their forests. Those farmers with employees may even find that forestry work provides an opportunity to keep their workers fully engaged during the quiet times or when waiting for other jobs to start.

Aim For A Quality Product Suited To Many Buyers

To attract market interest farmers must be able to differentiate their product from that available from native forests or industrial plantations. The most effective way is to ensure your trees best match the market specifications. For sawlogs this may mean minimising defects (knots, gum veins, bends, end splits and other timber distortions) and maximising log diameter – within limits.

High value logs can also be transported further. The costs of harvesting and transport can make a standing tree worthless for firewood, chip or pulp markets at more than 200 km from market whereas high quality sawlogs may still be valuable at more than 400 km. This opens up many more buyers and the opportunity for farmers to sell into more competitive markets.

Keep Your Options Open As Long As Possible

When starting out it is hard to predict which species or provenance is going to be the best for you and your site. This is especially important if the soil varies over the area or if little is known about which trees produce the best products. Rather than taking a stab and picking just one species or provenance it may be worth planting a mixture. When it is time to thin, you will be able to keep the best performers and cull the rest thereby putting off the tough decisions for 3 or 4 years.

Another way of keeping your options open is to aim to produce a product that is suited to more than one market. A forest managed for sawlogs can still be harvested for pulp but the reverse may not be so.

Keep An Eye On Your Trees And Good Management Records

Farmers are able to keep an eye on their trees. Problems caused by pests, wandering stock or disease can be spotted early. Written records documenting all stages of management will help verify past management and the quality of your stand when the time comes for marketing. Buyers may want to know the genetic origin or the trees or the thinning and pruning history. They may also have concerns about any hidden defects caused by fire, disease or nails. You can allay their fears by providing a documented history of the stand including dated photographs. The information will also allow you to learn from your own experience.

Treat Timber As A Bonus

What if there is no market when your trees are mature or the price being offered is too low? If your trees are providing other benefits it may not matter. As farmers we are able to capture a wide range of environmental, agricultural and aesthetic benefits from our trees. We also have sites on our farms where we need trees. Having built the fences and planted the trees the only additional cost required to make the trees commercial is the management. Compared to timber investors who are dependent on receiving a commercial return that pays for the land and all the management costs, farmers can avoid most of the risks by integrating their trees into their farms and ensuring they get a range of benefits along the way.

ORIGINAL SOURCE Stewart, A. 2003. Risk Management for Farm Forestry – Tips for farmers. Agroforestry News Autumn 2003 – Volume 12, Issue 1. For more information about the excellent periodical Agroforestry News, visit: http://www.agroforestrynews.com.au/

Apart from our workshops our staff can offer professional assistance on a fee for service basis. If you need a forest managament plan developed, a harvest managed, or professional advice the PFSQ team can assist. If you would like to take advantage of our consultancy services you can contact us during business hours or send us an email and we will be happy to assist.

Sam Slack lives on a family farm near Gayndah in Central Quuensland, he wanted a sawmill from an early age. He attended field days and farm management courses from when he was eleven and formed his philosophy on timber production from a broad field of information. As his property had large areas of standing timber, value adding that resource and broadening the enterprise base of the family business was a logical progression. Sam quickly realised the importance of good forest management in maintaining productivity to ensure their future resource and has incorporated this philosophy into a business the whole family is involved in.

To read Sam’s Story visit our Market page and download the case study.