“…Over the period of 1990-2015, the total area of hill country sheep and beef farms decreased by approximately 1.3 million ha [100]. This is because the more productive land was converted to dairy farming or higher-value horticultural crops [97] whilst the steeper, less productive land, which is more vulnerable to erosion and generates lower financial returns [109], was converted to an alternative land use, such as forestry, manuka 2 for honey production or retirement and a return to native vegetation [17]. Recently, carbon farming, which is a conversion from pasture to forest, is emerging as an alternative to sheep and beef farming in hill country due to the dramatic increase in the price of carbon credits, and this conversion can bring high economic profit if this occurs in eligible areas (the land areas where 1 LUC class 1 is flat highly productive land and LUC class 8 is very steep unproductive land.…”