This study examined the benefits of establishing exotic Pinus radiata forests in New Zealand. In the first part of the study, a sensitivity analysis was carried out by using an existing afforestation data set to identify the factors affecting the private benefit of establishing exotic forests on marginal land. In the second part, a spatial economic framework was used to examine the private and public benefits from forests that were established between 1996 and 2009. Results indicate that recently established forests in less productive land provide lower private benefit but higher public benefit than forests established in more productive land.