Forestry - opportunity assumptions General assumptions Cost of capital 9.2% Total agricultural land available for afforestation 10% of less productive farmland 2% of productive farmland (in line with best practice farming) Total hectares available for afforestation by 2020 3,500 Capex Barriers49 Opportunity Action required to realise opportunity Alignment with strategic priorities Plant timber for harvest on less productive land. Uncertainty of Reforestation of carbon less-productive Assumptions: sequestration land with timber 15% of less productive farmland land available for afforestation potential Planting plantation is planted with timber for harvest (292 hectares). Labour constraints 1,286 7 cost owners Management and monitoring cost $92/ha/year $2,249/ha Investment priorities Rental cost of land (opportunity cost) $32/ha/year Lack of a carbon Land Revenue from selling timber $276/ha/year price Opportunity cost
Forestry - opportunity assumptions General assumptions Cost of capital 9.2% Total agricultural land available for afforestation 10% of less productive farmland 2% of productive farmland (in line with best practice farming) Total hectares available for afforestation by 2020 3,500 Opportunity Action required to realise opportunity Capex Barriers49 Alignment with strategic priorities Reforestation of less-productive land with timber plantation Plant timber for harvest on less productive land. Assumptions: 15% of less productive farmland land available for afforestation is planted with timber for harvest (292 hectares). Management and monitoring cost $92/ha/year Rental cost of land (opportunity cost) $32/ha/year Revenue from selling timber $276/ha/year Land owners 1,286 7 Planting cost $2,249/ha Uncertainty of carbon sequestration potential Labour constraints Investment priorities Lack of a carbon price Opportunity cost
8d39c33d3316893-Geelong%20LCGP%20ClimateWorks%20report%20-%20FINAL.docx