Hon Todd McClay
Minister of Agriculture
Minister of Forestry

Agriculture and Forestry Minister Todd McClay has confirmed that restrictions on full farm-to-forest conversions on LUC 1-6 farmland will be in place this year, and reaffirmed that they will take effect from 4 December 2024 - the date of the original announcement.

Enabling legislation will be introduced to Parliament during Q2 of this year.

“The Government is focused on maintaining strong food and fibre production while supporting sustainable land use. We remain concerned about the effect that farm conversions are having on highly productive land — particularly sheep and beef farms in Northland, the East Coast and parts of Otago and Southland,” Mr McClay says.

The new rules, now progressing through Cabinet, will ensure balance and recognise the value of both forestry and farming, while providing certainty for our food producers.

Key changes include:

• A moratorium on full farm to forest conversions from entering the ETS for Land Use Classification (LUC) 1-5 actively farmed land.
• An annual registration cap of 15,000 hectares for forestry entering the ETS for LUC 6 farmland.
• Up to 25% of a farm’s LUC 1-6 land to be planted in forestry for the ETS, ensuring farmers retain flexibility and choice.
• Excluding specific categories of Māori-owned land from the restrictions, in line with Treaty obligations, while ensuring pathways for economic development

Mr McClay says that transitional measures for landowners who were in the process of afforestation prior to the 4 December 2024 announcement would be available where they could demonstrate qualifying evidence of a forestry investment,

“These sensible rules will give certainty to rural communities, while providing clarity for foresters,” Mr McClay says.

For more information please visit https://www.mpi.govt.nz/dmsdocument/68436-Update-on-proposed-changes-to-limit-farm-conversions-to-exotic-forestry-in-the-Emissions-Trading-Scheme-ETS

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