New Legislation Protects Farmland from Forest Conversions, Boosting Agriculture Sector

Legislation to protect productive farmland by limiting farm-to-forest conversions is now in place, marking a campaign promise fulfilled, Agriculture and Forestry Minister Todd McClay says.

The Climate Change Response (Emissions Trading Scheme - Forestry Conversion) Amendment Act came into effect on 31 October 2025 and forest owners will notice these changes in the Emissions Trading Scheme (ETS) system from this week.

Through this Act the Government delivered on protecting food production, supporting rural communities, and ensuring foresters can continue to invest with confidence, Mr McClay says.

The legislation restricts exotic forests from entering the ETS on Land Use Capability (LUC) class 1-6 land - New Zealand’s most productive soils - with certain exceptions, including for Māori-owned land and erosion-prone areas.

Farmers will retain flexibility to plant some land should they choose.

Transitional exemptions from the restrictions are available for those who can demonstrate both a clear interest in the land and a qualifying forestry investment made between 1 January 2021 and 4 December 2024.

Farming and forestry are both important to our regional economies and communities and this Government is supporting both sectors to create jobs and grow exports, Mr McClay says.

The Ministry for Primary Industries (MPI) has worked to keep the sector well informed, including running webinars to explain the new restrictions. Its website has been updated to include the changes and guidance documents.

Dedicated MPI staff will continue to provide specific support.