Conversion of sheep and beef farms to forestry has slowed, but an additional 30,000 hectares of whole sheep and beef farms have been confirmed as sold for forestry since mid-2025. New research for B+LNZ brings the total extent of whole sheep and beef farms sold for afforestation since 1 January 2017 to almost 330,000 hectares.
B+LNZ has been monitoring whole-farm sales for conversion to forestry for several years. B+LNZ Chair Kate Acland says the latest figures bring the total extent of whole sheep and beef farms sold for afforestation since 1 January 2017 to almost 330,000 hectares – equivalent to 3,300 square kilometres or roughly six times the size of urban Auckland.
The new analysis by Orme & Associates has found that an additional 30,000 hectares of whole sheep and beef farms have been confirmed as sold for forestry since the previous research was released in mid-2025.
Revised confirmed sales in 2024 added 11,482 hectares (bringing the revised 2024 total to 41,966 hectares), with 15,743 hectares sold in 2025. The 2025 figure is expected to rise as further sales are confirmed through the Overseas Investment Office.
“While we are pleased that total sales have slowed from the height of conversions to forestry in 2021 and 2022 (when almost 64,000 hectares were sold each year), we remain concerned that too much is still going to occur,” Acland says.
The report indicates that 27,000 hectares of sheep and beef land could still be converted into forestry each year under the restrictions that were introduced on whole farms being entered into the ETS. Prior to 2018, when it was signalled that the cap on the carbon price would be lifted, only 7,000 hectares or less was converted into forestry on average each year.
“27,000 hectares a year, combined with how much has already happened, would see New Zealand lose a million hectares of productive pastoral land by 2050, which is unsustainable for our sector, our rural communities and the country,” Acland says.
“While the restrictions introduced in 2025 are welcomed, we are concerned they do not go far enough and we will be keeping a close eye on ongoing levels of afforestation.
“B+LNZ is not anti-forestry. We strongly support the integration of trees within farms. Forestry presents an important and well-established diversification opportunity for farmers. Farmers know their land and can plant the right trees in the right places, without affecting overall levels of production.”
The latest research combines with analysis carried out by BERL earlier this year which found that sheep and beef farms create employment and exports on a continuous, annual basis. In contrast, forestry mainly generates both employment and export revenue at harvest, around 25–30 years after planting.
In 2025, New Zealand’s red meat sector generated $17.5 billion (4 percent) in GDP and supported a total of 120,580 jobs, or five percent of total employment in New Zealand.
Converting productive farms to forestry makes it harder for rural communities to retain people and skills, in turn reducing local spending, school rolls, rural services and future food-producing capacity. B+LNZ estimates that more than two million stock units have been lost to afforestation since 2017.
Download the Orme & Associates report (PDF, 3MB)
Notes to editors
Under revised Emissions Trading Scheme rules that came into effect on 31 October 2025, new exotic forestry on New Zealand’s most productive soils (Land Use Capability classes 1-5) is generally restricted from registration in the ETS.
15,000 hectares of land class 6 whole farm conversions can be entered into the ETS and there are no limits on whole farm conversions covering land classes 7 and 8 from being entered into the ETS.
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