Afforestation Grant Scheme

Grants for new forests

The growing of new forests has declined over the past 2 decades – from 55,000 hectares planted on average each year in the 1990s to just 3,000 hectares in 2014. MPI is concerned about this trend. We want to see more forests planted especially if they help control erosion.

By 2020, we want 15,000 hectares of new forest planted to help:

• improve land-use productivity and boost regional economic development
• reduce soil erosion – forest cover is the best form of erosion control. MPI estimates that 1.1 million hectares of land is at serious risk of erosion.
• store carbon and improve water quality.

To help reach this goal, MPI is providing grants of $1,300 a hectare (to a total of $19.5 million) for growers to plant new forests. In return, the Crown will get the carbon credits. Applicants must commit to maintaining the forest for at least 10 years.

Who can apply

• Any person or organisation that owns land or has a right to use land for forestry.
• Any person or organisation that is about to acquire land or a right to use land for forestry.

You must be able to commit between 5 and 300 hectares of land to planting in new forest. You can apply to each funding round, as long as you're applying for new planting.

Key dates for the 2016 funding round

Forms and further information

• Guidance for applicants
• 2016 application form
• Sample application form
• Key terms and conditions
• Claim for payment form/tax invoice

Making an application

Send your completed application to funding@mpi.govt.nz .

You can also post it to: 

Afforestation Grant Scheme
Investment Programmes Team
Ministry for Primary Industries
PO Box 2526
Wellington 6140

The application and funding process

Once MPI receives an application, we check it for eligibility. Applications for forests that will make a greater contribution to reducing soil erosion are given priority.

Planting must happen in the winter following the funding round – so if you apply in 2016, and receive a grant, you'll be planting in winter 2017.

Once your forest is established, you can claim your grant. We'll visit your forest to make sure it's established to the required standard. If the forest meets the establishment standard, MPI will pay you the grant for the area established.

If you sell or transfer your forest to someone else, you must tell MPI and we will transfer your grant agreement to the new owner.

MPI will monitor your forest to make sure it's up to standard. After 10 years, you're free to do as you choose with your forest.

Eligible land

Your land can be across more than one title, as long as you own it or have the right to use it. Your application can include more than one block of land but each block must be bigger than 1 hectare.

The land must be new forest planting. It must not:

• be 'forest land' under the Climate Change Response Act 2002 when you apply
• have been 'forest land' on 31 December 1989
• have been 'forest land' at any time in the 5 years before you apply.

The type of forest you can grow

You must plant the forest to qualify for a grant – you can't seed it or let it regenerate naturally. You can use the AGS for environmental or commercial reasons, or both. You have to maintain the forest to a set standard to be eligible for the grant. If you cut down the forest or don't look after it, you may have to replant or, as a last resort, pay the grant back.

You can plant native or exotic trees. The trees can also be a mix of forest species. A forest species is one able to grow to at least 5 metres in the place you've planted it – it isn't a species used primarily for fruit or nut crops.

You still own the trees and timber

If your forest is funded by a grant, you still own the trees and the timber. However, the Crown will get the carbon credits.

Building on previous success

From 2008 to 2013, just undermore than 12,000 hectares of new forest was planted under a previous AGS scheme. Much of the planting was on erosion-prone land. The plantings improved water quality and reduced the impact of severe flooding.

• Download a map showing the forests developed under the original AGS scheme

Who to contact

If you have questions about the scheme, email funding@mpi.govt.nz .