The impact of nutrient rules on the value of farmland in the Selwyn-Waihora Water Management Zone, Canterbury

Abstract

Freshwater regulation is rolling out around New Zealand following the National Policy Statement for Freshwater Management 2011 and 2014 which introduced a framework for Regional Councils’ to manage their respective freshwater resource. After community collaboration new rules are being progressively introduced at regional level to reduce freshwater pollution through a focus on nonpoint source nutrient leaching and runoff from farms. In Canterbury, nutrient management zones have been introduced. These zones create areas of differing environmental risk and set nitrate leaching limits for each respective zone. Further to this Canterbury has also created water management zones where zone committees collaboratively arrive at nutrient rules specific to their zone. This regulation potentially impacts on the productivity and conversely land value by constraining current management systems and farm inputs. Land value is closely linked to its productive capacity. This report endeavours to understand how this new wave of regulation is currently impacting on the land values in the Selwyn-Waihora Water Management Zone and what the perceived impacts are as the regulation comes into effect.