Still under a certain veil of secrecy - because it is in full development - the government of President José Antonio Kast is preparing an overhaul of regulations related to the forestry sector, whose main axis would be a new promotion law aimed at reactivating the activity, increasing investment, and especially strengthening small and medium-sized forest owners.

The initiative has been announced by the Minister of Agriculture, Jaime Campos, who has stated that it is one of the administration's priorities.

According to the authority, his ministry is working on a proposal that will be presented to the President in just under 60 days, with the aim of replacing the absence of a modern forestry promotion instrument in Chile.

Campos stated that the country needs legislation adapted to the 21st century and ruled out that it is simply a matter of reissuing the historic Decree Law 701, which encouraged forest plantations for decades.

According to information gathered by BioBioChile, among the measures that have emerged in conversations between the Executive and industry representatives are financing mechanisms through public entities, forestry insurance to face production risks, and incentives for wood demand through infrastructure projects and housing plans.

"Chile needs a new forestry promotion law," the minister stated during a seminar - titled "How is the 2026-2027 season coming?" - organized by the National Agriculture Society (SNA), where he emphasized that forestry activity is complementary to agricultural development and has significant economic potential for the country.

"Since I took office at the Ministry, I formed a task force that is led and directed by Fernando Raga and that is working hard on this project, and according to the information I have received, in less than about 60 days we will give the President of the Republic a concrete proposal," emphasized Minister Jaime Campos.

Additionally, during his speech, the authority emphasized that in water matters, "the water problem is reduced to the irrigation promotion law, when there is a prior or greater problem than the availability of water resources."

Various trade associations have stated that a new forestry promotion policy could help recover employment, increase plantations, and strengthen an activity that currently generates thousands of direct and indirect jobs in different regions of the country.

The initiative is also part of the Executive's economic strategy to promote investment.

If the deadlines announced by the Ministry of Agriculture are met, the proposal could begin its legislative process during the second half of the year.

Source: BiobioChile

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