Afforestation Grant Scheme (AGS) Update

Regional Councils are now beginning to offer funding under the AGS. In most cases, their funding is a fixed subsidy per hectare (rather than the bidding approach). This provides more certainty into the process. Applicants may apply for both subsidy streams (although can only one can be allocated).

As mentioned in prior articles (Issue 3), the AGS may suit some land owners who wish to minimise outlay of their own cash and are prepared to forgo at least the first 10 years of carbon credits. If you would like to know more about the AGS or would like PF Olsen to prepare an application for you, call your local PF Olsen representative, or FREEphone 0508 PF OLSEN (0508 736 5736) or e-mail us at info@pfolsen.com or visit our website www.pfolsen.com.

Some interesting statistics from MAF…

MAF has given out $2.96m in AGS grants over two rounds so far, with a third round to be allocated this year. In 2009 and 2010, AGS projects will create 1,429 hectares of new forest at an average price of $2,029 per hectare for tree species that absorb carbon quickly and $625 per hectare for species that absorb carbon slowly. A total of 26 projects have been funded in the Waikato, Gisborne, Manawatu, Wellington, Marlborough, Canterbury and Otago regions. More than 60 tenders have been received for the third round, which closed on 30 April 2009.