Work

The effect of freshwater regulation on farmland values in New Zealand – ‘Dairy farming in Selwyn Waihora, Canterbury’

Year: 2025

Type: article

Abstract: The intensity at which rural land is producing consumable goods has, over the last century, increased to meet the demand of growing world populations, and been enabled by advancing technology. For the land to produce more from a fixed resource, more nutrients have been applied, and the surpluses are finding their way into waterways. This generates undesirable consequences for the environment. Policymakers have acted by implementing regulation that encourages or forces a change of behaviour from farmers. Freshwater regulation implemented in New Zealand, while good for the environment, is perceived to have negatively affected farm productivity, profitability, and land values. This study tests this perception and finds that farmers who are making the farm management and land transaction decisions are more positive than negative about how freshwater regulation is affecting their farm business and respective land values. Most participants in the study were favourable about the improvements they had made to their farms as a result of the rules and the efficiencies gained. Over half of the participants considered the changes had been positive or had no effect on land value. It was also found that these farmers were doing everything they could to remain compliant with freshwater rules, but no more, regardless of whether doing more would be good for the environment, instead saving some strategies for possible future changes to regulation. • Freshwater regulation in New Zealand has changed the natural capital of farms and influenced farmland values. • Farmers have been forced to implement environmental changes to remain compliant; they are generally positive about the impact. • Farmers are doing only what is required to meet rules, and no more; they are expecting future changes to the regulation. • Negative perception of freshwater regulation impacting the saleability of farms has abated over time.

Source: Land Use Policy

DOI: 10.1016/j.landusepol.2025.107516

Authors: Edward Percy, Alison Bailey, Anita Wreford, Gary Owen Garner

Institution: Lincoln University

Language: English

Topic: Agricultural Economics and Policy

Subfield: General Agricultural and Biological Sciences

Field: Agricultural and Biological Sciences

Domain: Life Sciences

SDGs: Zero hunger, Clean water and sanitation, Climate action

Open Access status: hybrid

Estimated APC paid: $3,830