The impact of nutrient rules on the value of farmland

Freshwater regulation is rolling out around Aotearoa-New Zealand following the National Policy Statement for Freshwater Management 2011 and 2014 which introduced a framework for management of freshwater resources. After community collaboration new rules are being progressively introduced at regional levels to reduce freshwater pollution through a focus on nonpoint source nutrient leaching and runoff from farms. Areas of differing environmental risk and set nitrate leaching limits for different zones create water management zones where specific nutrient rules apply. As a result, the regulations associated with this serve to place controls on productivity in accord with the particular zoning rules. On the basis that land value is closely linked to its productive capacity, the value of land is also potentially affected since current management systems and farm inputs are constrained. This report endeavours to understand how this new wave of regulation is currently impacting land values and what the perceived impacts are as regulations come into effect.