Farmers Weekly has collated forecast costs from the Ministry for the Environment (MfE) in the Action for Healthy Waterways policy, which variously came into force from September 3.
Fencing 32,000km of waterways to meet new stock exclusion, regulations will cost farmers $773m, while the loss of production on the 19,000ha lost from the three-metre riparian setback is estimated at a further $17m.
The MfE calculates fencing costs at $5/m for dairy, $14/m for sheep and beef and $20/m for deer.
But these costs appear to be at odds with landowner calculations.
A Federated Farmers survey in Waikato estimated the cost for drystock farms range from $300,000 to $785,000 and average about $800 a hectare.
The Te Tumu Paeroa trust manages 180 blocks of Māori land in Taranaki and in its submission calculated the cost of a post and two wire fence at $10/m. With 130km to fence, the total cost will be $1.3m.
Stock exclusion rules variously come into force in 2023 for wetlands and waterways more than one-metre wide, and from 2025 on slopes less than 10 degrees.
In response to questions from the Farmers Weekly, MfE says there will be no exceptions.
“The regulations require stock to be excluded from waterways and their margins by whatever means the stock owner decides is practical,” it said.
“Flood flows can happen on all rivers, and stock owners may decide that movable electric fences are the most appropriate means to exclude stock from rivers that experience flood flows.”
Landowners will be responsible for weed control.
By 2025, every farm must have an individualised environment plan, at a cost of $4000 each or $116m to the country’s 29,000 farmers and growers.
These must be audited every two years at a cost of $1500 a plan or $44m to the industry.
The annual cost of addressing environmental issues identified by those plans is estimated at $435m or $15,000 per property.
Intensive winter grazing rules come into force next year and if farmers cannot meet permitted activity rules, they will need resource consent at an estimated cost of $3000 per consent.
The MfE estimates lower profits from nitrogen, stock exclusion and farm plans will nationally cost farmers $114m a year.
Hardest hit will be those from the Waikato ($11.3m), Canterbury ($36.9m), Otago ($18.4m) and Southland ($13.1m).
Councils currently spend $310m a year on freshwater management, but implementing the new policies will add a further $135m of costs mostly for employing additional staff ($31.5m).
Implementing other freshwater policies will cost councils a further $19.1m a year.
Improved human health from better quality water is calculated at $2.3 billion, benefits from water clarity and reduced sediment $123m and between $1.8m-$5.4m from less erosion.
The department acknowledges the policy could cost rural jobs and community services and the uncertainty causes increased mental health issues among farmers.
But it concludes the significant and lasting benefits of the policy will, over the long term, exceed the costs of transition and implementation.
Agriculture Minister Damien O’Connor has withdrawn an accusation that Federated Farmers leaked confidential information during the formation of the freshwater policy earlier this year.
The primary sector was subsequently excluded from the policy process apart from the final review, leading to claims the regulations are unworkable.
In a letter last month to Feds president Andrew Hoggard, leaked to Farmers Weekly, O’Connor says information supplied from the federation means he cannot be definitive about who the leaker was.
“I acknowledge that there was a leak of the information in question, but that there is no means to specify who and to which organisation they belong,” he said.
“I, therefore, withdraw the statement.”
Hoggard welcomed O’Connor’s letter, saying the accusation had upset members.
“The Minister says he wants to move forward and that is good enough for me,” he said.
“I am happy where discussions have got to so we can move forward and fix the freshwater legislation.”
