Well here we go again.  More proof that the Law of Unintended Consequences has hit again in the rural sector.

Government forestry incentives have seen a 45 per cent increase in forestry farm prices over the past year.

Figures released this week by the Real Estate Institute of New Zealand showed the median price of forestry farms had increased from $6487ha to $9394ha.

At the same time though, less forestry land has been up for sale.  70 farms in the 2018 year down to 50 in the year ending April 2019.

So there are two things here.  People are hanging on to their forestry land and other people are prepared to pay heaps to get their hand on some. And this is all because they can see money in it all due to government policies.

Firstly, Shane Jones’ Billion Trees programme means people can almost be paid to increase their forest holding, thank you very much.

Secondly, now that foreigners, except Australians and Singaporeans, can’t buy existing residential or lifestyle properties, their money is now gravitating to an investment that they’re allowed into like forestry assets. 

An investment that the Government provides incentives for. 75 per cent of forestry companies operating in New Zealand are already foreign owned.  Many of the sales are to foreign companies to plant trees to get carbon credits to offset their filth in their neck of the woods.

Which brings on the third factor which is the Ponzi scheme that is the Emissions Trading Scheme.  Putting a dollar price on this scientific theory automatically introduces profit motives.  Currently, the New Zealand Carbon Price is capped at $25 a tonne of CO2.  In Europe it’s $44 a tonne.   Last a review recommended lifting the cap and putting in an auction system. The price will go up and that’s a dollar sign attracting the investors.

It’s a perfect storm of government policy that makes it as near as can be a sure fire investment.

Last week farmers went to talk to Cabinet ministers about their concerns.  30,000 hectares in the North Island alone has been sold to forestry companies. It’s estimated that means 300,000 stock units will be replaced by trees. That means a loss of jobs, people and services in places like Gisborne, Tararua, Wairoa and Wairarapa.

And once you replace farmland with tress there’s no going back.  Cows and sheep don’t go back, Crops will never be planted.  The land is a forest for a generation or more.  This is a big price to pay to give Shane Jones and his nephews a job and foreign polluters a get out of jail free card.

Shane Jones has commented on the situation and he has sympathy for farmers for what he calls the “shiny arses coming out of Auckland to cover Wairoa in trees”, but he says that was not the policies intention.

That may be so Shane, but that doesn’t mean it ain’t happening and it’s partly your fault.

There are some that believe that this policy triple punch is part of the Greens plan to de-farm this country but I don’t think they’re that smart and calculating and a lot of the factors were in play with the National Government.

Ill thought out blanket policies full of virtue signalling with dollars connected kindly donated by you and me in our taxes has artificially distorted the market. Foreigners are cashing in and rural areas are dying a slow death.