There are many good reasons. Tree farming is profitable, and itcan make other agricultural enterprises more productive. Treeson farms also provide environmental benefits and stimulate newjobs and industries in rural areas. Trees grow well in many parts of southern Western Australia, providingfarmers with opportunities to produce wood fibre to meet the expectedgrowth in world demand. Long term forecasts predict an increasingglobal deficit in wood fibre, with continuing strong demand fromthe Asia-Pacific region.
Tree farming can boost farm income.
Forestry companies are offering farmers high rents to grow bluegums in sharefarming arrangements on farm land. Tree establishment,management, harvesting and marketing are financed and organisedby the companies, reducing the farmer's risk. Payment canbe arranged as an indexed annuity, or a share of the crop at harvest. The extra income and time give many sharefarmers the freedom tostart new projects, or upgrade the rest of their farming enterprise. Earnings from farm forestry add diversity to farm incomes andcan provide a buffer against cyclical downturns in prices of otherfarm products such as wool and meat.