Options for forest landowners
Landowners intending to establish forestry plantings with another party may benefit from legal instruments in the South Australian Forest Property Act 2000.
The Act legally recognises partnerships between landowners, forest growers and investors when planning plantation forests. This allows separate interests to be registered on a Land Title for:
- private land
- vegetation on land
- carbon within vegetation.
The Act provides framework for 2 types of forest property agreements. It also facilitates commercial forest plantation licences, which secure a forest owner’s right to harvest a plantation, subject to conditions.
Forest property agreements
Vegetation
A forest property (vegetation) agreement separates the ownership of plantation forests from the ownership of the land. It preserves the forest owner’s rights, regardless of any change in land ownership.
This agreement empowers a landowner to vest in another, the ownership of trees that are growing, or are proposed to be grown on their land. It can also:
- specify actions relating to establishing, managing and harvesting trees
- provide the tree owner with the right to enter the land for these purposes.
Carbon rights
A forest property (carbon rights) agreement allows for separation of carbon rights from forest ownership, so that carbon stored in the vegetation can be sold separately from the forest.
This agreement empowers a tree owner to vest in another, ownership of the carbon rights of their trees, providing the owner of the land also agrees. Co-benefits from vegetation carbon projects include:
- reducing soil erosion and improving water quality
- improving farm resilience through diversified income and sustainable land management
- lowering the emissions profile of businesses.
Although this agreement provides investors with greater legal certainty and security around carbon rights, the Act does not establish carbon trading arrangements.
Surveying an area
Surveying an area
If the forest property agreement is established over a whole parcel of land, it can be registered against the relevant Certificate of Title. No additional plan or survey is required.
Where the agreement only covers a portion of land described in a Certificate of Title, the land involved in the agreement must be clearly identified. This is in the interests of all parties concerned to avoid future disputes and litigation.
The nature and accuracy of the survey or plan is determined by the Registrar-General.
Legal documentation requirements
Legal documentation requirements
The written format and content requirements of the forest property agreement are set out in Section 6 of the Act.
It must describe present and future forest vegetation covered by the agreement. Consider including the following matters:
- fire protection and responsibility for firebreaks
- insurance and public liability
- fees for use of the land or agreed profit sharing
- responsibility for outgoings (local government rates and other charges)
- vehicle access, including for harvest and haulage
- entry notification requirements
- site establishment techniques
- fertiliser application and restrictions
- spraying and herbicide use
- vermin and pest plant control
- water use and access
- environment protection measures
- grazing arrangements
- on-site facilities and permitted improvements
- condition of land at the end of the agreement
- provision for the parties involved to periodically review the agreement.
We strongly advise landowners and owners of plantation and carbon rights to seek legal advice. Make sure the forest property agreement addresses issues that all parties want covered.
Register an agreement
A forest property agreement must be registered on the Land Title with Land Services SA to attain its full legal standing. The application to the Registrar-General must be endorsed by:
- the parties to the agreement
- a duly authorised agent (legal practitioner or registered conveyancer).
Complete an application to note an agreement form through Land Services SA.
Carbon credits and approvals
A forest planted for trading carbon rights is considered a commercial forest and is subject to policies in the Planning and Design Code. Learn about development application approvals and controls for:
The Australian Government recognises carbon farming projects, such as plantation forests, as a critical part of the climate change solution. On-farm forestry adhering to vegetation and agricultural criteria can earn carbon credits.
Learn more about these benefits and opportunities of carbon farming.
Commercial forest plantation licence
Evidence to show that a plantation was legally established can confirm the landowner's right to harvest. This includes:
- local council development approval
- an establishment plan.
If more evidence is needed to support the investment in long-term tree crops, consider establishing a commercial forest plantation licence. This authorises standard forestry operations for both existing and proposed plantations.
The licence is a voluntary mechanism for plantation owners to take advantage of the Act’s harvest security provisions. The licence holder still needs to comply with relevant local, state, and Australian Government laws, such as occupational health and safety, and environmental protection.
Apply for a licence
Contact PIRSA Forestry to apply for a commercial forest plantation licence.
Provide the following documentation to assist with the application assessment:
- Either:
- evidence that the plantation to be covered by the licence has received development approval
- confirmation that no planning consent is required.
- A map or plan of a suitable scale (1:25 000 or greater) showing where the plantation is located or proposed. It should identify the plantation area in relation to relevant property boundaries and physical features, such as named public roads.
Contact
PIRSA Forestry
Email: pirsa.forestry@sa.gov.au
