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Published: Thursday 12 September, 2013

outlets outlets ?ETS bode well for forestry

A 20 per cent plus lift in log prices over the last year, with the prospect of more to come, the ability to sell carbon emission trading units and Government support for new planting add up to an exciting future, Dermer said.

The rise in prices was mainly because of demand in outlets China, which had run into difficulty getting timber from Russia after it applied a levy, Dermer said.

The USA hasnt really got back into rebuilding mode after the recession but when they kick in thats going to be pretty interesting for anyone with a few trees to harvest, I think.

The ANZ Commodity Price Index for March recorded a 9.2 per cent rise log prices sending it to an 18month high and a 50 per cent increase on a low in mid2009.

The Governments Emissions Trading Scheme will apply a price to greenhouse gas emissions to provide an incentive to reduce emissions and plant forests to absorb carbon dioxide.

Carbon trading could give foresters a yearly income from their trees, which as they grow would retain carbon from the atmosphere and earn emission units.

Youre taking exchange rate risks, youre taking political risks but if you want to have a go and be cautious . there is that opportunity, he said.

Dermer, 65, said the Governments Afforestation Grants Scheme was worth investigating.

The grower receives an upfront payment of around $2000 a hectare in exchange for the first 10 years carbon units, he said. This has to be one of the best incentives the Government has ever come up with, he said.

The association would lobby for more funds to be put into the scheme.

There is plenty of eroding hill country which desperately needs tree cover so a good, hard look at this scheme is a must for any farmer with serious erosion problems.

Additional prospects for wood included biofuel, he said.

You could summarise the case by saying that in a outlets world of rising energy costs and pres outlets sure to constrain carbon emissions, low energy, carbon sequestering wood has to be a winner. outlets