Money Can Grow On Trees

Money Can Grow On Trees

Farm consultant Stu Orme has contacted Horizons with some interesting information regarding Money Can Grow On Trees.

Mr Orme states that the pre-1990 legislation says that if you own pre-1990 exotic forest, and you harvest it without re-planting, you will be liable for the carbon credits represented by that harvest.

Plus a possible fine of up to $30/ unit if you do not make a voluntary emission return /advise you have deforested.
Assuming you have to surrender 850 NZU to cover off on the deforestation for a 30 year old forest the maths for a 4.0 Ha (10 acres) example look like this: 4.0 Ha x 850NZU = 3400 NZU to be surrendered.

If MAF find out that you have a deforestation liability that you have not advised them of you will be fined the additional $30/NZU plus have to purchase and surrender the number of credits required thus 3400 NZU X $50/unit = $170,000 i.e. (purchase price of $20 + $fine of $30/unit = $50/unit) (NB: the costs of this will not be tax deductible)
This potential liability might amount to $40,000-$50,000/ha. Depending on the prices of NZUs at the time

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