Abstract

About 21% of agricultural land in Australia is seriously degraded by salination and wind erosion. Trees can contribute to overcoming these problems. There is potential for trees to also produce wood, thereby diversifying farmers' incomes, reducing Australia's bill for importing wood and increasing exports of wood products. Even though many of these multiple purpose plantings would be widely scattered and growth rates low in some regions, Australian farmers should have a comparative advantage in wood production because trees also provide substantial landcare and agricultural productivity benefits. The establishment of new industries based on wood from farmland requires leadership from Government, planning at national, regional and local levels, and innovative techniques to finance planting. Removal os taxation disincentives for wood producers and the introduction of legislation to allow profit a prendre contracts would provide more favourable conditions for investment.

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