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Plantations and Communities

Results from recent studies demonstrate that plantation sector expansion can contribute to stable economic growth in regional areas.

During the establishment phase, expansion of plantations on agricultural land generally has the same effects on rural populations as ongoing farm amalgamation processes. However, where there is interest in rural residential ‘lifestyle’ blocks, subdivision of ‘homestead’ blocks on plantation properties may provide opportunities for rural population growth.

Rapid establishment of large areas of plantation in a region can influence rural land prices by creating higher demand for rural land. This impact is most pronounced when plantation expansion occurs through direct land purchase by plantation companies, although leasing of land for plantations may reduce the number of properties being sold and hence also lead to a more competitive land market and rising prices.

During the transition and mature phases of a plantation estate, employment in the plantation sector increases rapidly. A large proportion of this employment is generated in the harvesting, transport and processing of wood products. The presence of processing facilities in regional areas can help to reduce or prevent population decline by providing an alternative source of employment.

Most of the economic benefits of the plantation sector occur in the regions in which employment is based. In the plantation management and harvesting sector, employees are often located in regional centres closest to the plantation resource, but tend not to be based in smaller rural towns. In the processing sector, most employment is located in towns with processing facilities.’ Extract from ‘Socio Economic Impacts of Plantation Forestry’ Bureau of Rural Sciences November 2005

Download Summary Report Socioeconomic Impacts of Plantation Forestry (pdf)

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