Soil organic matter accumulation and concomitant fertility changes in soils recently converted from plantation forest to pastoral agriculture in the Taupo-Rotorua Volcanic Zone have been observed, with a probable soil C sequestration rate of 6.1 t ha-1 year-1 , and a soil N sequestration rate of 0.451 ha-1 year-1 , to 150 mm soil depth, for the first 5 years after conversion attwo of three selected farms. Rapid increases in Olsen P were observed, with soils reaching their optimum agronomic range within 3-5 years after conversion, at two of three farms. A decreasing C:N ratio with time since conversion reflects improved fertility status, and implies that in initial years of pasture establishment, N losses are reduced due to its immobilisation into soil organic matter. These research findings suggest that land-use change from plantation forest to pastoral farm, with inputs of N, P, K and S to soils, allows significant soil C and N sequestration for at least 5 years after conversion. This rate of C sequestration could be used as an offset for forest C sink loss in future emissions trading systems. Further research is required to at least 0.3 m depth to confirm this preliminary study.