Trees have been standing in the way of farmers and land developers for millennia but how times have changed. Climate change is opening the door for trees to make a comeback, and here's why.
Trees are known as a ‘carbon 'sink', with their ability to absorb greenhouse gases (GHGs) while storing carbon. Canada recently announced a $2 billion, 'Low Carbon Economy Fund' as part of its Pan-Canadian Framework on Clean Growth and Climate Change. Among its goals are, "to help the forest and agriculture sectors to enhance stored carbon in forests and soils."
Along with reduced fossil fuel consumption, trees are the best weapon we have to fight climate change. Wood fibre also provides an alternative, renewable and carbon-neutral fuel source for power generation. Canada with its huge landmass is a prime environment for development of a tree farming industry that has the potential to create a new income source for farmers, with 65 million hectares identified as suitable for tree farming.
“Anyone who understands the basics of growing an agricultural crop can become a tree farmer,” says Derek Sidders, Program Manager with the Canadian Wood Fibre Centre (CWFC), a division of the Canadian Forest Service.
“There has never been a better time for Canadian farmers to consider growing trees as a cash crop . . . right now, we don’t have a large tree farming program in Canada, with only about 30,000 hectares of plantations that actually exist here because of our wealth in natural forests and abundance of fossil fuels.”
He adds, however, that trees have value as a climate change mitigation strategy especially along Canada’s southern forest fringe where negative climate change impacts are already becoming evident, and as a way to expand Canada’s wood fibre potential beyond the natural forest.
Sidders is recognized by organizations like the Canadian Institute of Forestry (CIF) as one of Canada’s foremost authorities on current recommended Canadian tree farming practices as well as for his work to develop a national network of demonstration sites to show how these systems perform in real life and in real time. So a lot of the heavy technical lifting to develop a successful tree farming venture has already been done.
First, let’s dispel a big myth about tree farming.
The notion that tree farming takes a lifetime to maybe make a bit of money is false. A tree farm can begin to make money through sale of carbon credits starting the first year and depending on the pattern selected, can be harvested for a big payday anywhere from three to 15 years after planting. That's because trees on a properly managed tree farm grow on average eight times faster than similar trees in a natural forest. Several crops can be harvested over a lifetime, even becoming an annual event by using a staggered planting and harvesting schedule. Farmers can also plant different patterns, which can be harvested to provide income from different sources on a varied schedule. This approach can be used to reduce the investment risk of adopting just one tree farming pattern on one harvesting schedule.
A second myth is that it takes a large land base to grow and profit from a tree farm. Sidders says that while a tree farm can be established on a land base as small as 10 hectares, CWFC recommends a minimum 20 hectares to mitigate the risk from fire, rodents and animal browse. And one of the big bonuses with certain plantation patterns is that no further vegetation management is needed after three to four years. The plantation looks after itself.
The real game changer from an economic standpoint, as demonstrated by this new Low Carbon Economy Fund, is the potential to sell carbon credits, as the federal government implements its national carbon tax. It will reach $50 per tonne of GHG emissions by 2022. Big emitters need to find ways to offset their emissions to avoid a big carbon tax bill, and partnering with tree farmers is one alternative. The provinces of BC, Alberta, Ontario and Quebec, representing 86 percent of Canada's population already have some sort of carbon offset sales scheme in place. Alberta, for example, allows large emitters to purchase carbon offsets directly from landowners to meet their emission reduction targets.
However, the rule of thumb is to be careful to follow the rules, as in some instances, a tree plantation will not qualify for carbon offsets if it already is in place and the correct protocol is not followed. So do your homework and follow the rules on selling carbon offsets within your own jurisdiction. One thing missing from Canada's GHG reduction plan is a standard carbon offset trading program from coast to coast.
In addition to claiming carbon credits, another developing market for tree farm fibre is for sustainable raw materials to substitute for fossil fuels particularly in power generation both domestically and internationally. Alberta’s Capital Power is already planning to substitute a portion of its coal with woody biomass by next year. Ontario and Nova Scotia have converted some of their coal-fired power plants to consume wood fibre. Pinnacle Renewable Energy has already built seven wood pellet plants in BC, and recently announced construction of a new $85 million, 475,000 tonne per year wood pellet plant for Entwistle, Alberta.
So, demand for large amounts of wood fibre is definitely on the upswing.
This bird's eye view of a high yield afforestation tree farm in fall shows how symmetrical the pattern is versus a natural forest, thus resulting in easier vegetation management and harvesting.
There are essentially three recommended types of tree farms. They are called high yield afforestation, mixed afforestation and concentrated biomass afforestation. Afforestation means planting trees on non-forested lands like farms.
High yield afforestation
The easiest tree farming pattern, high yield afforestation is similar to an orchard, so vegetation control and harvesting is much easier and efficient than a natural woodlot because of the spacing between trees. The plantation is ready to harvest in about 15 to 20 years, versus 60 to 80 years in a natural forest. Also, tree farming takes place where roads already exist, so it is easier and cheaper to transport the wood fibre to customers, and harvesting takes place in winter when traditional farming activities slow down.
High yield afforestation like this example or mixed afforestation where a softwood species like white spruce is planted in the understored is the easiest tree farm pattern for the beginner. This crop is well advanced toward maturity.
Tree species include cloned and hybridized, but not genetically modified, poplar, aspen and poplar/aspen cross species. Between 900 and 1200 stems are planted per hectare. This plantation pattern will yield about 300 cubic metres of fibre growth per hectare, which is about 30 to 40 percent more volume than the natural forest. Input costs to establish and maintain the tree farm are estimated at between $1800 and $3000 per hectare. Conventional logging equipment is used to harvest the trees. Potential markets include wood pellet mills, pulp mills, oriented strand board (OSB) plants, and sawmills.
High yield afforestation and mixed afforestation crops are harvested typically by hiring a logger. This zero tail swing feller buncher is a good choice on a tree farm because the cab can swing without damaging trees around it.
Mixed afforestation
The mixed afforestation pattern includes the same fast-growing species as in high yield afforestation, with the same growth objectives and timelines, but with a secondary tolerant softwood species like white spruce or white pine planted in the understorey. This pattern yields two potential cash crops on different growth trajectories.
Concentrated biomass
A Canadian Forest Service researcher participates in a growth survey on a mixed afforestation site. This type of tree farm offers two valuable commodities, a hardwood poplar crop and a white pine softwood crop in the understorey.
The concentrated biomass tree farm pattern consists of high density planting of willow or hybrid poplar species in a hedge-like pattern of about 15,000 stems per hectare, spaced about half a metre (two feet) apart to accommodate harvesting
equipment. The primarily current customer for this wood fibre crop is bioenergy. This crop is harvested every three to four years. The willow or hybrid poplar will grow back, and it is possible to harvest as many as seven rotations before replanting is required. Because of the upfront costs, intensive management and expensive harvesting equipment required with this tree pattern it is not recommended for the beginner, but is something that greenhorns can work toward.
There are lower tech and cheaper options available for harvesting a fast growing willow crop for bio-energy use.
Guidelines for proper tree selection and planting, depending on the farm’s location in Canada, have already been written for Canadian farmers through research programs sponsored by organizations like the CWFC and the Prairie Farm Rehabilitation Administration (PFRA). A site suitability classification system for tree clones has been developed by CWFC.
Investigating all the angles to establish a moneymaking tree farm is a great winter project because research into tree farm establishment, management and marketing, as well as carbon credit trading is highly recommended before one seedling is planted. CWFC can provide fully-developed, step-by-step resources and guidance on tree farming in Canada for profit. A good way to start is to touch base with your local woodlot association or simply to conduct a web search using the words ‘Canadian afforestation’.
For over achievers who want a bigger challenge than an orchard style poplar or aspen crop, there is the option of planting fast growing willow that can be harvested six times every three years primarily for bio-energy. This requires a significant cash outlay up front, but could be economical with a long term supply contract with a power company.
For advice on where and how to start a tree farm, contact Derek Sidders and his team at derek.sidders@canada.ca.
Before you plant . . . Check list prior to launching a tree farming venture
Area — Landowners should conduct a careful inventory of space they have available for a tree farm with at least 10 hectares available, but preferably 20 hectares to reduce risk from fire, rodents or animal browse.
Carbon Credit Trading — Research the potential, requirements, and income expectation from the sale of carbon credits from your tree farm in your particular jurisdiction before planting.
Tree Farm Pattern Selection — Select a tree farm pattern that is most comfortable for you, keeping the door open to establishing a more labour-intensive, concentrated biomass plantation if there are lucrative, local, long term contracts available, particularly for use as feedstock for bioenergy.
This combination of a cultivator with harrows works well for the critical vegetation control required during the first three years of establishing a commercial high yield afforestation tree farm. No vegetation control is required after that till the tree crop matures.
Maintenance — Mechanical, non-chemical, vegetation control using conventional farm implements is critical to success. Check what cultivator or disk configuration is needed and the frequency of vegetation control particularly early on.
Planting, Harvesting and Transportation — Look into costs associated with hiring professional planters, mechanical planting contractors, or what’s required to self-plant. Also investigate the cost of logging a high yield or mixed wood plantation, and how much it will cost to transport the logs to customers. On concentrated biomass plantations, investigate the available chipping and baling harvest systems, whether it makes sense to invest in this specialized equipment, or whether it makes more sense to rent equipment or contract custom harvesting services.
Market — Cast a wide net to identify potential local customers for your woody biomass crop, how far they are from your location, how much they are willing to pay, and whether they will offer a contract to purchase the wood fibre when it matures. For farmers with a small land base, it may make sense to partner with other landowners to form a cooperative that oversees tree farm management to a set standard and negotiates supply agreements with customers. As a general rule, the plantation should be located within 100 kilometres, with primary road access, to customers, but this can vary depending on the value of the customer's end product. Discuss this with them.
Becoming a cuttings supplier to offset initial costs — One way to help offset the initial
Tree cuttings can be planted either by hand or mechanically on a tree farm. A bit of training is suggested for those who choose to self-plant, which can be a cost savings measure.
cost of establishing a tree plantation is to establish what are called dense beds, where tree cuttings are harvested after the beds grow for one year, as feedstock for next year’s planting or to sell to other tree farmers. One stem after one year’s growth generates from 10 to 25 cuttings per year.
Carbon credit-cash crop combo best option
There have been some important lessons learned from early tree farm adopters who took the plunge, even as researchers were still working to develop viable tree farm options and as the market for selling carbon credits was in its infancy.
Current tree farmer and former Woodlands Manager at the Daishowa-Marubeni International (DMI) pulp mill in Peace River, Alberta, Wayne Thorp, says development of a financially worthwhile carbon offsets market could make the difference for developing a profitable tree farming venture because it would help to pay for establishing the tree farm as well as the critical early vegetation control.
He says about 15 years ago, DMI worked on a project to expand its hardwood fibre base because of the number of trees it was losing to other resource activities in its Forest Management Area (FMA). The plan was to work with local landowners to establish tree farms, using fast-growing hybrid hardwood species. He owns a quarter section of what he considers marginal farmland and doesn't consider himself a farmer. So as part of the program, he planted a tree farm on seven hectares of his property, using the mixed afforestation approach, planting both hybrid poplar and white spruce, which in the worst case scenario, he considered at least an aesthetic and erosion abatement improvement.
Within the first year, these tree farmed hybrid poplar are already showing significant growth. A typical high yield afforestation poplar crop takes 15 to 18 years to mature, versus 60 to 80 years in a natural forest.
"The company's economic analysis showed that it didn't have a significant return on investment for DMI for the money going into setting up the plantations," says Thorp, so they abandoned the program. He adds, however, that this program was mothballed over a decade ago, and it might be a different story today given the developing market for the sale of carbon offsets should Peace River area landowners want to consider approaching DMI again about a tree farming program. Its issues with tree loss haven't gone away.
"The times have changed and it probably would be something worth investigating more and maybe looking at that economic analysis and adding in some potential for getting carbon credits over time as well," says Thorp. "It would certainly affect that economic analysis if you were getting income earlier and maybe annually as the trees are growing."
Ste. Anne, Manitoba tree farmers, Aurele Boisvert (left) and Ben Kehler have enhanced their hardwood tree farm by adding white spruce in the understorey. Planting both hardwoods and softwoods is called mixed afforestation, which creates two commercial crops on different growth trajectories.
Plantation owners, Aurele Boisvert, in Ste. Anne, Manitoba and Darrell Sill, in Canora, Saskatchewan agree that a clearly defined and a financially worthwhile carbon credit program could be a game changer to encourage more tree farming.
Both participated in the now-discontinued federal Forest 2020 tree farming program, which was launched in 2003 in which the federal government covered most of the costs. It was in response to the 1997 Kyoto protocols to combat climate change, which was a precursor of the 2016 Paris Agreement on climate change. It involved the federal government planting trees with landowners in a first attempt to meet the country's GHG reduction targets. Their plantations became important research sites for groups like the CWFC to test various fast-growing species in different climatic zones to develop their site classification system. Sill installed a 30 hectare hybrid poplar and willow plantation, while Boisvert, a retired professor from the University of St. Boniface, and his neighbor installed a total of about 25 hectares of mixed hardwoods and softwoods. Both were highly conscientious about vegetation control in the first three years of plantation growth.
"It was experimental, that was the whole idea at first," says Boisvert. "I was very pleased to do that, to be able to contribute to carbon capture and it is very good for wind erosion. As far as I'm concerned, it was a very good project to get involved with."
Sill, who sells biomass heating systems, says he installed his tree farm in an area where it is awkward to plant a conventional crop. The tree farm put that parcel into production. He and his family were very interested in the opportunities available from tree farming. Today, he operates a gravel crushing and trucking business, but still owns a half section of land that he rents out. He says that if there were opportunities to claim carbon credits from a tree farm to offset his carbon taxes from his gravel operation, he'd definitely be interested in planting that half section into trees. However, he adds that it might be difficult to convince other landowners, who have been clearing trees for decades to expand their cropland, to follow his example unless it was financially worthwhile for them and the government could be trusted to stick to an aggressive tree farming and carbon credit program.
- Tony Kryzanowski