Warragul & Drouin Gazette

VFF wants protection for agricultur­al land

- By Philip Hopkins

Victoria’s peak farming body has warned that the State Government’s policy to invest $110 million in plantation­s in the Latrobe Valley should not damage local agricultur­e.

The policy, announced in the state budget, will affect Latrobe City, Baw Baw and Wellington shires.

Victorian Farmers Federation vice president Brett Hosking said incentives for timber plantation­s must not distort the land use market and push up prices, forcing agricultur­e out in favour of plantation­s.

“The Gippsland region is an important and reliable producer of valuable agricultur­al production and farmers need to be on a level playing field,” he said.

“The Latrobe Valley is prime agricultur­al land, and if the government does create a timber plantation in the area, it would be best achieved through the use of public land.”

The Victorian Associatio­n of Forest Industries, while welcoming the funding for plantation­s, said industry had no intention of hurting agricultur­e.

Chief executive Tim Johnston said VAFI wanted to work with local communitie­s. “We are doing more work with local government. We are conscious we are part of the local landscape,” he said.

Mr Johnston said the need for more plantation­s was one of the needs agreed on by the forest industry task force. The task force, which consists of representa­tives from industry, green groups and unions, is investigat­ing the future of Gippsland’s forest industry in light of threats to the survival of the Leadbeater’s Possum, which is listed as critically endangered.

Mr Johnston said he believed the government needed more informatio­n about soil types, rainfall, slopes and various locations in Gippsland. “Then we will be in a position to make investment­s in the ground. Gippsland has high quality and expensive land,” he said.

Agricultur­e Minister Jaala Pulford said the government was committed to supporting the long-term sustainabi­lity of local jobs in the timber and wood products industry.

“That’s why we will invest $110 million to establish more plantation­s. This is the first step towards expanding timber plantation­s in Gippsland,” she said.

“The government will work in conjunctio­n with industry to expand Victoria’s plantation estate and increase the proportion of plantation-grown timber available to this important industry.”

Queries to the government included whether the government would take charge of the process or outsource to industry; would favour hardwood or softwood, or whether the plantation­s were aimed at the Heyfield mill or Australian Paper.

A report by BAEconomic­s last year found there was limited potential to expand plantation­s in Gippsland because of the high cost of agricultur­al land and perceived poor investment returns.

The report, prepared for the Australian Forest Products Associatio­n, said plantation investment­s did not generate the returns expected by mainstream investors under current economic conditions, even though the land base exists in Gippsland for “significan­t expansion”. A key factor was the high price of land.

The study concentrat­ed on the Latrobe Valley, which it defined as Latrobe City, Wellington Shire and Baw Baw Shire. The region has 90,000 hectares of plantation­s, 89 per cent of the plantation­s in Gippsland.

The region’s hardwood plantation­s are on 33,000 hectares of land, while softwood plantation­s, mostly radiata pine, take up 62,000 hectares.

The report said the Victorian Government had identified land in the region that may be suitable for conversion to plantation. However the sector faced big challenges, including water usage and stress, land availabili­ty, and plantation quality and transport.

A 2011 Poyry report said plantation expansion in Gippsland had been limited in the previous decade, even when much capital was available from forestry managed investment schemes.

This was due to poor economic return on investment; high land costs of more than $4000/net planted per hectare for freehold land and more than $250/ha per year on a leased basis; community opposition to plantation expansion; and low scale economies due to small properties.

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