Farmers’ angst as State Government buys prime agricultural land in high-rainfall areas with ‘open chequebook’

Farmers already competing with wealthy corporates for prime agricultural land have raised concerns about the Forest Products Commission bidding on properties with an “open chequebook” as it ramps up plans to put 33,000ha to pine plantations by 2033. The ambitious target and its $350 million budget were announced last year, when the McGowan Government unveiled plans to ban native logging by 2024 and instead buy and plant pine plantations to fulfil what it said was growing demand for softwood. The move comes at a time when oil and gas giants are also feverishly buying agricultural land to offset carbon emissions — Woodside alone is believed to have bought at least 20,000ha in recent years — and when competition from agricultural corporates is also hot. Shire of West Arthur deputy president Graeme Peirce said the huge competition for land was sending shockwaves through the family farm unit he said was crucial to maintaining country communities. “We have dealt with forestry here since the 1980s when there were blue gums,” he said. “In the past six months, there has been rush for farm purchases in our shire … a lot more competition and a lot of new players. “In the last few years, we have seen mining companies buying for carbon credits and now we have the softwood plantations. “Land prices have taken a steep curve and there is a real concern for farmers wanting to expand their properties for future generations, to make their farms more viable … or for people wanting to enter the agriculture industry. “The inflated land prices make it really unviable for family farms.” The newest player in the market is the FPC, which — after the passing of the Forest Products Amendment Bill last year — was granted the ability to buy freehold land and trade in carbon. The taxpayer-funded organisation has been a new participant in farmland auctions in recent months. It plans to spend 10 years securing high rainfall land to plant more than 30m seedlings and sequester between 7.9 and 9.5Mt of carbon dioxide equivalent. Mr Peirce said farmers believed there was a lack of transparency about the State Government’s plans and there was no policy to stop large corporates planting valuable farmland “fence to fence” with trees. “We are seeking consultation or collaboration with the government on the forestry and carbon farming to ensure the sustainability of the agricultural industry our community,” he said. Mr Peirce said farmers were gravely concerned about the long-term impact of flipping high rainfall agricultural land to trees, including both softwood plantations and native trees for carbon credits. He said the issue was “at a precipice” and slammed the State Government’s lack of consultation with farming communities that would be affected by the change in land use. “With input costs going up, an elevated land price might seem really appealing for some people that are looking at getting out,” Mr Peirce said. “You might sell a farm for top dollar now and then live on the coast, but it is the generations after that which won’t be able to farm the land. “Local communities have been dwindling, and you need a level where they have enough numbers to make sure there are have essential services and good infrastructure “If you start losing these, we have a small school with small number of students and if you lose five or six farmers or families, we will see some really tough times in our shire.” The FPC has bought seven properties totalling 3500ha since June, while several other blocks of land are in negotiation. A quick look at the Forest Products Commission website reveals the organisation is looking for properties within a “reasonable distance from processing facilities”, in areas with more than 600mm of rainfall per year to support “healthy plantation growth”, and with more than 100ha of property suitable for pine plantations. Shadow forestry minister Steve Martin slammed the State Government for a “complete lack of transparency” around the $350 million land acquisition program, saying it was causing angst amongst farming communities. “Does the State Government have an open chequebook to buy prime agricultural land and plant pine trees?” “There is a complete lack of transparency around how the government intends to purchase the land required for the expansion of the softwood plantation. “Local communities are rightly concerned about how the Forest Product Commission will manage any land it purchases and the impact it will have on this communities.” Roe MLA Peter Rundle, who is also the shadow education minister, said farmers were already concerned about the declining number of local families, among other issues. “There is a sense that there is an open chequebook of the State Government competing with farmers for neighbourhood properties,” Mr Rundle said. “It will boost the price of farmland but the farmers are here for generations and they want to pass the land onto their children. “If we start losing good-quality farmland to FPC or other corporates, then the number of farmers and students goes down, that threatens the viability of the local school.” WA Agriculture and Forestry Minister Jackie Jarvis said all of the properties purchased to date had been previous forestry plantations, and assured farmers that prime agricultural land was “not a requirement”. The FPC declined to comment, instead referring Countryman to Ms Jarvis, below right. “The FPC has secured more area for additional plantations than occurred in the whole of the previous Government’s term from 2008-2016,” she said. “This lack of past investment is also one of the reasons that such a program is needed today. “Historically there were approximately 90,000 hectares of pine plantations in operation but with single rotation share farms ending, and the loss of plantation areas due to competing land uses (such as water), the total area of plantations has decreased and will continue to do so unless action is taken. “The plantations are not replacing agriculture – the current investment program is simply stabilising the amount of plantations available.” Regarding the price of FPC-acquired properties, Ms Jarvis said the organisation determined the market price for any offer to purchase based on independent valuation. “(This is) coupled with other considerations such as distance to market and proximity to other forestry plantations,” she said. “It should be noted that all of FPC’s purchases have been through competitive processes including auctions and EOI’s.” Ms Jarvis said the FPC was open to new sharefarm agreements “where appropriate”, but the preference was to secure land that could be replanted “again and again”, which would allow “a more secure and stable plantation industry for decades to come”. “While the upfront cost of share farming is lower, the cost over the life of the rotation equates to the same as that of purchasing the land but without the ability to replant,” she said. “Further, single rotation share farms provide an increased risk for the State should there be an event such as a wildfire that kills the trees. In this instance lost trees cannot be replanted.” Single rotation share farms are a major reason for the current need to invest in new plantations. The approach of purchasing where possible maximises the long term benefit to the timber processing industry by establishing a permanent estate. WA’s native forestry industry was left reeling last year when the State Government announced plans to ban native logging by 2024. In September, it announced the $350m investment in softwood plantations as part of the $750m Climate Action Fund. The softwood processing industry supplies the majority of pine products in the State’s housing and construction market, as well as providing wood for particle board, power poles, pallet timber and fence posts. From the start of 2024, all timber taken from native forests will be limited to forest management activities pegged to improve forest health and clearing for approved mining operations. The hope is the decision will preserve at least 400,000ha of karri, jarrah and wandoo forests and result in nearly two million hectares of native forests being protected.