This report provides an economic analysis of River Red Gum (RRG) Forestry in the Riverina region of NSW specifically with regard to the current economic benefits of the RRG timber industry and the potential benefits of alternative forest management and regional development strategies. This report is primarily concerned with RRG in on Crown Lands and surrounding areas that interact economically and ecologically with the forests.

The analysis shows the current focus of timber supply is economically unjustified and the full economic value of the public forest estate is not being realised. Timber supply as it currently is realised is unsustainable both economically and environmentally. The potential returns from encouraging private production and investment, forest restoration and using public forests for tourism activities could stimulate substantial economic returns and better environmental outcomes.

Changing the management policies regarding RRG on Crown Lands would benefit the local and State economy by; stimulating private industry, supporting farm diversification, providing local jobs and helping to mitigate climate change. Changes to current management policies would ensure the sustainable use of natural capital for the benefit of current and future generations.