NZ Forest Growers’ Levy Vote. Have your say – voting opens October 1

If you own a plantation forest, small or large, you are required to pay a levy on the volume of wood material harvested from your forest. The Forest Growers Levy Trust (FGLT) is the custodian of this levy money, ensuring it is appropriately spent in areas such as research and development, biosecurity and promotion, for the collective benefit of levy payers and forest growers in New Zealand generally.

The current levy order is due to expire on 17 November 2025 and is therefore up for renewal.

Please refer to the attached Levy Vote Grower Booklet for everything you need to know about the levy and how to vote.

Proposed levy rate

Eligible forest growers will have the opportunity to vote on whether to renew the levy for another six years at the rate proposed by the Forest Growers Levy Trust during this year’s Forest Growers Levy Vote: 1 – 31 October 2024.

The current levy rate under the Harvested Wood Material Commodity Levy Order is 33 cents per tonne of harvested wood material. This raises approximately $10 million per year in levy money, depending on harvest volumes.

The Forest Growers Levy Trust has spent eight months consulting with growers in the lead up to the Levy Vote, resulting in an amendment to the levy rate originally proposed (40 – 70 cents) by the Trust earlier in the year. The FGLT also sought growers’ feedback on whether the levy is meeting their needs and how they would like to see it allocated in the years to come. Learn more about the levy consultation process here.

The FGLT wants to thank everyone that took the time to attend these meetings and have their say. Your contributions are vital for ensuring the levy is meeting growers’ needs and helps the FGLT understand how it can best support the sector going forward.

For the upcoming Levy Vote, the FGLT propose a minimum levy rate of 33 cents per tonne of harvested wood material and a maximum levy rate of 45 cents per tonne of harvested wood material (excluding GST) for the 2026 – 2031 levy order period.

The minimum levy rate will be fixed for the first year of the new levy order (until the end of 2026).

For every subsequent year, the FGLT board will fix the levy rate within the 33 to 45 cent range before the start of each levy year. Any proposed increase to the levy rate in any year will not proceed if it would be against the wishes of those likely together to pay more than half of the total levy collected in the year the proposed increase will apply.

Delivering a stronger return on investment for forestry while balancing the economic pressures growers are currently under was a key consideration of the FGLT when settling on the new 33 to 45 cent levy rate band.

A maximum levy rate of 45 cents would provide forestry with up to NZ$3.5 million in additional levy money each year to spend on industry-good projects and activities.

Renewal of the levy

To achieve renewal of the levy, votes in support of the levy must be more than half of all participating votes and more than half the total land area (ha) declared by all voting participants.

This means the vote can’t be swayed by a few large forest growers or by a large number of small forest growers who have very few trees overall. It also ensures the vote is a sound representation of the majority of growers, and therefore the majority of the forest growing sector.

If support for the levy is achieved – subject to the Minister’s approval – the new Levy Order will come into effect on 18 November 2025.

How to vote

The referendum itself will be conducted through independent election company, Research NZ. The Ministry for Primary Industries (MPI) is responsible for ensuring the levy vote has been conducted in accordance with the law.

Eligible forest growers with a qualifying forest can cast their vote online through forestvoice.org.nz from 1 October until 5pm, 31 October 2024. Only one vote is permitted per levy payer / forest owner irrespective of the number of qualifying forests owned.

During voting, growers will be asked whether they would like to renew the levy for another six years (2026 – 2031) at the rate set out by the FGLT. Details on the new levy order and the rate proposed by the FGLT will be clearly specified in the voting paper.

Growers unable to a vote online can contact info@forestvoice.org.nz and request a voting paper to print, scan and email back to the retuning officer. Alternatively, post your printed voting paper to: FREEPOST 2088, PO Box 10-617, Wellington 6140

Voting papers submitted after the deadline, be that online or paper-based, will not be counted.

The FGLT will communicate the outcome of the levy vote to growers once it is received – likely mid-November or December 2024 at the latest.

Further Information

Attached to this email is a booklet containing important information about what the vote is about, full details on what the Forest Growers Levy Trust propose and the process for voting. The material in this pack should answer most of your questions.

Some growers will have already received voting information, including voting papers, via email from independent election agency Research NZ who has been engaged by the FGLT to conduct this year’s referendum.

Growers will continue to receive this voting information in the lead up to and during voting.

The forestvoice.org.nz website also provides extensive detail on the Levy Vote and contact information should you have a question we haven’t thought of.

Have your say. Cast your vote at www.forestvoice.org.nz