Most of the county’s 16 regional authorities are still to complete their regional plans but early indications are that each council has its own approach.
Rabobank sustainable farm systems manager Blake Holgate has been following the development and release of environmental regulations and said even neighbouring regional councils such as Otago and Southland have differing rules, creating uncertainty for owners of multiple properties and unknown costs.
The new regulations were already starting to impact on property values in Canterbury and leaving some farmers questioning how they would reduce their environmental impact.
Maree Baker-Galloway, a partner at Otago law firm Anderson Lloyd, said a one size fits all approach would never work but there was logic in each council addressing its own issues.
However, it was inefficient for each council to have its own interpretation of the science and technology.
Holgate said those councils that had or were close to adopting plans were following one of three approaches: a plan for the whole region, a region-wide plan with specific plans for catchments or catchment plans developed first then a region-wide plan.
The plans were driven by the Government’s National Policy Statement on Freshwater and had to be implemented by 2025.
Holgate said the initial focus had been on reducing nutrient loss and that was where differing council approaches were most obvious.
For example, Horizons (Manawatu-Wanganui) Regional Council had based its plan on land use capability from which it allocated maximum nitrogen leaching allowed from each farm.
Otago had set maximum nitrogen leaching for the whole province but it was up to individual owners how they met that while Canterbury was basing nitrogen limits on a grandparenting system, in which allocations were based on historic use for individual farms.
“What previously was a convertible property may no longer be possible because of nitrogen limits on that property, therefore the land value of the property is limited because the productive value is sheep and beef rather than dairy.”
BLAKE HOLGATE
Rabobank
But the Canterbury approach made converting a sheep and beef farm to dairying almost impossible and was affecting land prices.
“What previously was a convertible property may no longer be possible because of nitrogen limits on that property, therefore the land value of the property is limited because the productive value is sheep and beef rather than dairy.”
While questioning the extent of consultation by some councils for such far-reaching changes, Holgate said councils such as Horizons had made an effort to work with farmers to make the plans workable.
“If they take an adversarial route with farmers and don’t bring farmers on board to implement the rules, it will make it a very difficult task to achieve the desired outcomes.”
Holgate said councils needed to give farmers time and goodwill to ensure the plans worked and accept that policies needed to be practical.
A plan to fence all waterways that included extensive high country farms might cost more to implement than the environmental return.
The plans would mean more investment in farming systems which allowed more to be produced for less but Holgate said those plans were not finite, that regulations lagged other countries and would continue to evolve and change over time.
Baker-Galloway said it was too early to say if initial plans would reduce nutrient leaching but it was an issue with many facets and still some disagreement on the approach and the science.
Scientists were still trying to understand the issue and find solutions. Better technology was needed to model and predict nutrient behaviour and farmers needed the skills and information to improve their management.
“There are so many variables and still not agreement what we aim for in terms of water quality. Science can’t agree on what we aim for.”
A paper written by Holgate comparing NZ environmental regulations for dairying with the Netherlands and United States showed NZ was playing catch-up.
It estimated that regulations could add 10c a litre to NZ’s milk production cost or reduce the cost depending on a farm’s environmental footprint. But that figure was an estimate given the uncertainty about the final shape of new regulations, he said.
How plans work
Examples of how regional councils are implementing environmental regulations.
Horizons: Regulations based on land use capability from which discharge limits are set.
Otago Regional Council: Region-wide plan which sets limits on permitted activities but leaves compliance up to individuals.
Environment Canterbury: Region-wide plan change with specific catchment conditions, including grandparenting, which set nitrogen leaching limits based on historic levels.
Hawke’s Bay Regional Council: Starting with catchment-based plans then region-wide plan to capture anything missed.
Waikato Regional Council: Starting with catchment-based plans then region-wide plan to capture anything missed.
How should farmers respond?
Focus on how your farm management is preventing or allowing adherence to council discharge limits rather than trying to comply with the letter of the law then adjust it accordingly.
