Rules which help foreign investors purchase farmland in New Zealand for forestry conversions are under review, with a paper expected to be brought to Cabinet later this month.
Overseas Investment Office (OIO) data show in the last three years 360㎢ of farmland has been approved for sale to overseas investors under the special forestry test. About 230㎢ of the consented land will be the subject of new planting.
The special forestry test is used when an investor is looking to invest in production forestry for harvesting, it was introduced in late 2018 in a bid to support the government’s forestry priorities, including more tree planting.
But farming groups have raised concerns too much productive farmland is being lost and repeatedly called on the government to urgently review foreign investment in forestry.
Associate Minister of Finance David Parker said the Overseas Investment Act forestry test was currently under review and he intended to take a paper to cabinet later this month on proposed policy options.
