FINANCIAL
Gavin Hagboom takes pride in his results.
Gavin Hagboom’s 3,000 hectare property lies on the sand plains between Dowerin and Meckering. This windswept area has long suffered from waterlogging due to a rising water table - tough land to work, and a farm where every planting option has to be considered.
Gavin and his father Colin have pioneered tree plantings in the area since 1998, and the irony of this situation is not lost on Gavin, a very enthusiastic participant in tree farming activities with the FPC.
“This farm has been in the family for five generations, with the first four clearing the whole area. The wheel has gone full circle and we’re now restoring the trees,” says Gavin.
The Hagboom’s 210 hectare plantings – primarily maritime pine (Pinus pinaster) with some WA sandalwood (Santalum spicatum), was motivated by both environmental and financial considerations.
First, there is the need to generate additional cash flows to supplement the farm’s main wheat, sheep and pasture quality serradella seed production, and second, there is recognition throughout the area of the need to lower the water table.
“FPC contracts my land, pays me to work it for them, and gives me a share of the income for good measure. It’s the perfect ‘win-win’ situation,” he says.
Packages previously offered by FPC provided tree farmers a choice of different revenue models depending on the types of trees planted. Some offer payments up-front spread over two years, or an annuity over the predefined life of the tree crop. Farmers also have an additional entitlement to receive a share of the revenue derived from carbon trading and/or timber harvesting.†
“The work provides an additional source of income but, more importantly, it gives us a real sense of ownership of the project. We take pride in what we do, because we’re in charge, so I believe the end result is much better."
A short drive to Hagboom Lake confirms the benefits of replacing trees cleared in earlier years. “This is a spring-fed lake, and it more or less appeared out of the ground during 1963, and was getting steadily deeper and wider. The water level has now dropped visibly, and the lake’s borders have shrunk dramatically!” says Gavin.
† Additional revenue entitlements are dependant entirely on the agreements entered into with your chosen tree farming provider. Please consult with your tree farming provider and financial advisor to ensure a full understanding of the products and services being offered, revenue entitlments, and any obligations on your part to ensure receipt of any revenue entitlements.
