GrowPay backs federated farmers: Carbon forestry restrictions a win for rural New Zealand
Jun 11
2 min read
GrowPay welcomes the Government’s long-overdue move to restrict carbon forestry on productive farmland, backing Federated Farmers’ Save Our Sheep campaign and the broader call to preserve the future of pastoral farming in New Zealand.
The introduction of legislation to prevent wholesale conversion of high-value farmland into carbon offset plantations is a step in the right direction for New Zealand’s rural economy, food security, and regional employment. The use of pine trees to offset emissions—subsidised through the Emissions Trading Scheme (ETS)—has distorted land use decisions and put immense pressure on sheep and beef farmers across the country.
“This isn’t about being anti-forestry. It’s about ensuring that good farmland remains in food production and that rural communities are not hollowed out by carbon-driven land grabs,” says Federated Farmers meat and wool chair Toby Williams
At GrowPay, we see firsthand how farmers are navigating complex financial and environmental challenges. When thousands of hectares of productive farmland are lost each year to pine plantations—driven not by sustainable forestry, but by carbon credits—it’s farmers and their communities who pay the price. Lost breeding country means fewer ewes, reduced productivity, and less resilience in our food systems.
We support calls for urgent changes to the ETS and tighter controls on transitional exemptions for carbon planting. The ability to show “intent” by simply purchasing seedlings—without even owning land—sets a dangerous precedent and opens the door to speculation and land banking.
What’s at stake?
15,000 hectares per year of farmland could still be lost under existing loopholes—equivalent to 150,000 hectares in a decade and a loss of more than 750,000 breeding ewes.
Foreign ownership of farmland for carbon forestry is being pushed through under loose interpretations of the Overseas Investment Act.
Rural pest pressure is rising due to unmanaged pine forests, further affecting productive farmland and farm operating costs.
GrowPay joins Federated Farmers in urging the government to:
Close loopholes in the ETS and restrict 100% carbon offsetting through forestry.
Apply the farmland test to overseas purchases of farmland for forestry use.
Support balanced land use, including small-scale farm forestry, without undermining livestock production.
We also strongly support the clause restricting planting of LUC 1-6 land after subdivision, which is a positive step toward protecting New Zealand’s most versatile and productive soils.
Farmers deserve a stable, predictable future—one where the decisions they make about their land are guided by long-term value, not short-term carbon economics. GrowPay stands ready to support farmers through these changes with tailored finance solutions that prioritise sustainability, productivity and resilience.
Add your voice to the call for change. You can sign the petition at www.saveoursheep.nz
To learn how GrowPay can support your farm’s future, visit www.growpay.co.nz.
