National Forest Industries Plan

Piloting the creation of a regional forestry hub, followed by the roll out to other regions across the country

Working with industry, state and local governments, other key stakeholders, and the community to assess the production forestry resources and processing capacity and infrastructure needs and limitations in key regional forestry hubs

Working with industry and state governments to allow regional forestry hubs to maximise their capacity to accommodate plantation expansion in the right places

Delivered

The locations for the 9 regional forestry hubs were announced by the Prime Minister on 16 February 2019. They are:

• north-east New South Wales (NSW)
• south-west slopes (New South Wales and north-east Victoria)
• central west NSW
• Gippsland, Victoria
• Green Triangle, (South Australia and south-west Victoria)
• south and central Queensland
• north Queensland
• south-west Western Australia
• northern Tasmania (later expanded to entire state).

Allocations to date total $9.2 million, with an additional $10.6 million provided in the 2021–22 Budget to extend the existing 9 hubs and create 2 new hubs in the Northern Territory and Eden NSW. This will bring total funding to $19.8 million.

Some of the tangible outcomes from the hubs include:

• a financial model to help landowners compare the impact of a tree-growing enterprise on their overall farm financial position
• trialled different methods for extracting logging residues from harvest sites—showing the best ways to reduce site preparation costs
• markets found for WA forest harvest residue – these can now be sold rather than burnt on site which reduces smoke taint on nearby agricultural commodities
• in the Green Triangle, undertaken comprehensive scientific water research to support increased allocation for forestry
• delivery of new training outcome for industry that is attracting new state government funding
• advising farmers on land access and land use policy for plantation forest investment.

Inventory of farm forestry resources on private land to be delivered by end 2021

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) is mapping and modelling private and Indigenous farm forestry resources, to determine their extent and the role they could play in providing additional resource for wood processing. Total allocations are $0.98 million.

Working with states/ territories and industry to help farmers explore opportunities for:

• expanding farm forestry
• creating future wood and fibre supplies, improving linkages with the forestr industries, increasin economic returns for farmers

Working with state/territory governments, private native forest owners and interested Indigenous communities to unlock potential timber supply, and to deliver economic returns to landowners

Farm forestry strategy to be delivered by end 2021

A National Farm Forestry Strategy is being developed for endorsement by Australian, state and territory forestry ministers in November 2021.

Farm forestry projects to begin to be delivered by end 2021

Proposals seeking funding for farm forestry, private native forestry and Indigenous forestry projects to be delivered through the states and territories are being assessed with $3.5 million to be allocated.

Online guidance materials to be delivered by 30 May 2022

Online guidance materials are to be delivered by Forests and Wood Products Australia to encourage increased wood supply and diversify landholder income streams to support farm forestry and the use of existing forest resources on Indigenous owned and managed land, and privately owned land with $0.5 million allocated.

Undertaking a review of the water requirements in the Emissions Reduction Fund (ERF) farm forestry and plantation methodologies to enable forestry to fully participate in the ERF

Amendments to the Emissions Reduction Fund water rule delivered
in April 2020

Starting on 4 April 2020, the ERF water requirements were amended to include provisions that tree planting (including plantations and farm forestry) can be eligible for carbon credits:

• if the project is in an area that receives more than 600mm of rainfall
• where the planting of trees is unlikely to have a material adverse impact on the availability of water.

Applying the ERF changes to regional forestry hubs is ongoing

The changes apply initially to 5 regional forestry hubs:

• south-east Western Australia
• Green Triangle (south-east South Australian part only)
• north/north-east Tasmania
• north-east New South Wales
• south-west slopes (New South Wales and into Victoria).

This has significantly increased the areas in which plantations can earn additional income from carbon credits.

Assessments are underway for the rest of the hubs.

Partially delivered

A new NIFPI centre in Gippsland, Victoria was established in 2020. $2 million has been allocated (Cwlth) and $2 million from the Victorian Government and to date $2.075 million industry co-funding.

For the original Mount Gambier and Launceston NIFPI centres $2 million each has been allocated (Cwlth), matched funding $2 million Tasmanian Government, $2 million South Australian Government and $10.5 million in industry co-funding.

Some of the research undertaken to date includes:

• developing structurally reliable glue laminated products from fibre-managed plantation hardwood logs
• implementation of single-step genomic selection of eucalypts—to improve tree breeding
• Eagle-eye—applying the internet of things to landscape scale Wedge-tailed eagle management
• sensing technology and digital tools to support decision making in hardwood timber drying
• installing state-of-the-art hyperspectral and thermal sensors on light aircraft for detecting nutrient deficiencies and stress in radiata pine plantations
• preparing a feasibility and cost benefit study for innovative forest fire detection technological solutions and optimising forest fire controlling decision making.

The Australian Government continues to engage in positive discussions with the states regarding establishing a second new centre, with the expectation that the state will match the Australian Government’s funding. We welcome the interest of state governments willing to provide this matched funding.

Establish a National Steering Committee to oversee the NIFPI centres to:

• provide national coordination and guidance
• enable the nodes to move towards specialisation in
  priority areas for industry, such as bio‑products,
  hardwood, softwood plantation and social license

On hold

National coordination and guidance services for the current NIFPIs are being provided by Forest and Wood Products Australia (FWPA). At the request of industry and in partnership with them, the 2021–22 Federal Budget provided $1.3 million for an Australia-wide NIFPI feasibility study.

This feasibility study will include an assessment of the need for, and potential make-up of, a national steering committee. The feasibility study is expected to report to government late in 2021. Its findings will inform further implementation of this action.

Ongoing

FWPA funding for its research, development, extension and marketing programs on behalf of the industry totalled some $12 million in 2019-20, of which some $4.4 million was co-contributed by the Australian Government. The Australian Government continues to work closely with FWPA and industry on ongoing research needs and extension needs.

Examples of projects supported by FWPA include:

• processing pruned Eucalyptus nitens plantation logs to produce high-value sawn and veneer products
• characterising and managing fire risks to plantations under changing climates
• preparing guidelines for salvage harvest, storage and processing o plantation-grown logs affected by fire
• the development and implementation of building specifications to encourage high-rise timber buildings
• the ‘The Ultimate Renewable™’ marketing and branding campaign
• improving the productivity of the private native forest resource in southern Queensland and northern New South Wales.

In progress

FWPA has been provided with $0.2 million to undertake 2 education activities:

• The 2021 National University Wood Challenge
  • Supporting small teams of university students and academics to discover innovative ideas for using wood to produce new sustainable everyday products.
  • On 25 August 2021, 4 finalists were announced, and each is being awarded $20,000 to further develop and/or test their ideas over the following 3 months.
  • A final judging will occur in late November 2021, with the winner awarded a further $10,000 to continue to develop their idea.
• Further development and expansion of virtual reality experiences related
  to forestry, ForestVR.
  • The development of the virtual reality toolkit for schools showcases
    various forest environments and processing mills for forest
    products, see forestlearning.edu.au/forestvr.
  • Content includes information about the renewable cycle for
    forest and wood products and is expected to be completed by
    31 October 2021.

Ongoing

The regional forestry hubs continue to undertake extensive consultations within each of their regions with a range of community stakeholders to:

• determine the priorities for each region
• build understanding of values of the work of the industry.

The Australian Government, in partnership with participating states and industry, engaged a consultant to build understanding of the values and benefits of Australia’s forest industries by developing shared communications tools and conducting workshops with regional industry stakeholders. The Australian Government’s funding contribution was $88,000 (including GST).

A suite of videos focused on sustainability, economic and social benefits of the industry, innovation and technology, and highlighting wood as the ultimate renewable were released in September 2019 at a cost of $86,250.

Delivered

Australia’s State of the Forests Report 2018 was published on 16 February 2019 and is available at agriculture.gov.au/abares/ forestsaustralia/sofr/sofr-2018.

The next report in this series is scheduled to be released in 2023.

Ongoing

Reporting on the implementation of Regional Forest Agreements is ongoing. The extended RFAs contain improved assurance mechanisms, including more outcome-focused 5 yearly reviews to monitor performance.

There are annual meetings between Australian and state government officials to monitor the implementation of the RFAs.

Delivered

$40 million Forestry Recovery Development Fund Program. The Government
has awarded grants to 14 businesses affected by the 2019-20 bushfires. The program
is helping to drive efficiency by supporting business to develop new processing lines
and invest in upgraded technology and new facilities. The program is delivering
grants of between $1 million and $5 million to privately owned wood processing
facilities that were directly or indirectly impacted by the 2019-20 bushfires.

For example, Australian Sustainable Hardwoods Pty Ltd have been awarded over
$1.18 million to build a new manufacturing line for pine columns and beams.
The new plant will be the first of its kind in Australia, enabling Australian Sustainable
Hardwoods to manufacture columns and beams for multi-story commercial and
residential buildings. Australian Sustainable Hardwoods has estimated that this
investment will enable them to retain around 100 manufacturing jobs and create
an additional 21 full time positions.

Delivered

$10 million Salvage Log Storage Fund provided through the COVID-19 Relief
and Recovery Fund, to establish storage facilities for fire‑affected salvage logs and
wood products in NSW and Victoria during the COVID-19 pandemic. The program
supported the storage of more than 700,000 tonnes of timber, providing certainty
to mills and helping them plan their long-term recovery.

Delivered

$15 million Salvage Log Transport Assistance to support NSW and Victorian
industry to transport salvaged timber to mills that have the capacity to process it
before it degrades. The government has helped the forestry industry deal with the
increased costs of transporting salvaged burnt logs to surviving timber mills or storage
sites. The program has supported the transport of more than 944,000 tonnes of
salvaged timber.

In progress

$37.5 million Plantation Development Concessional Loans were an election commitment and are expected to begin in 2021. They will focus on encouraging
new plantation developments and the replanting of bushfire-damaged plantations.
The loans support the objectives of the National Forest Industries Plan, the forest
sector’s long-term goals, regional economies dependent on the sector and affected
by the 2019‑20 bushfires.

In progress

A contract to progress the Australia-wide $1.3 million NIFPI feasibility study
is being developed with the recommended applicant. The finalised study report is
scheduled to be provided to government in late 2021.

In progress

The $15.1 million program will support the transportation of wood salvaged from
fire affected plantations to mills with immediate spare processing capacity.

Establish Regional Forestry Hubs

The locations for the 9 regional forestry hubs were announced by the Prime Minister on 16 February 2019. They are:

• north-east New South Wales (NSW)
• south-west slopes (New South Wales and north-east Victoria)
• central west NSW
• Gippsland, Victoria
• Green Triangle, (South Australia and south-west Victoria)
• south and central Queensland
• north Queensland
• south-west Western Australia
• northern Tasmania (later expanded to entire state).

Delivered (including ongoing)

On track working to schedule

Farm forestry strategy

On track working to schedule

Starting on 4 April 2020, the ERF water requirements were amended to include provisions that tree planting (including plantations and farm forestry) can be eligible for carbon credits:

• if the project is in an area that receives more than 600mm of rainfall
• where the planting of trees is unlikely to have a material adverse impact on the availability of water.

Delivered (including ongoing)

On track working to schedule

Establish a National Steering
Committee to oversee the
NIFPI centres

National coordination and guidance services for the current NIFPIs are being provided by Forest and Wood Products Australia (FWPA). At the request of industry and in partnership with them, the 2021–22 Federal Budget provided $1.3 million for an Australia-wide NIFPI feasibility study.

This feasibility study will include an assessment of the need for, and potential make-up of, a national steering committee. Its findings will inform further implementation of this action.

On hold

Delivered (including ongoing)

Two education activities are underway:

• The 2021 National University Wood Challenge
• further development and expansion of virtual reality experiences related to forestry, ForestVR.

On track working to schedule

The regional forestry hubs continue to undertake extensive consultations within each of their regions with a range of community stakeholders to:

• determine the priorities for each region
• build understanding of values of the work of the industry.
• A suite of communication tools has been developed in partnership with states and industry, as well us conducting workshops with regional industry stakeholders.

Delivered (including ongoing)

Australia’s State of the Forests Report 2018 was published on 16 February 2019 and is available at agriculture.gov.au/abares/ forestsaustralia/sofr/sofr-2018.

The next report in this series is scheduled to be released in 2023.

Delivered (including ongoing)

Delivered (including ongoing)

Delivered (including ongoing)

Delivered (including ongoing)

Delivered (including ongoing)

On track working to schedule