Highly stocked parts of New Zealand where dairy farming has increased considerably are set for new taxes. Farmers are coming under increased financial pressure as new water and nutrient taxes are set to cost farmers.
Highly stocked parts of New Zealand where dairy farming has increased considerably are set for new taxes.
Farmers are coming under increased financial pressure as new water and nutrient taxes are set to cost farmers.
This week, some New Zealand analysts are suggesting that a combination of nutrient budgeting and water use taxes for Canterbury dairy farms could cost farmers between €240 per hectare or €90 per cow.
The Canterbury region is part of the New Zealand South Island that is home of over 1m dairy cows (over 20% of New Zealand cows). In the mainland it has dry, sandy type soils that require irrigation from local rivers.
Extra costs
Advisors and analysts are just this week calculating what exactly the extra costs will be as they crunch the key figures for dairy farms.
What seems clear is that the water use fee, along with banks imposing stricter controls on borrowing and repayments, means it is likely cow numbers are stablising.
The Canterbury Environment Department reported only 20 environment consents (planning permissions) were granted for dairy farms in 2016, which is nearly half the 2015 figure and a significant drop from the 110 consents granted in 2011.
General election
A New Zealand general election takes place on 23 September this year so the reasoning behind reduced water quality and the sustainability of irrigation in parts of New Zealand, like Canterbury, is up for discussion.
The anti-farming blame-game on water quality is causing many heated divisions between the urban and rural New Zealand population.
The Canterbury region has the country’s second largest increase in dairy cattle numbers, behind Southland. NZ data shows the number of dairy cows in Canterbury increased from 113,000 in 1990 to a peak of more than 1.3m in 2014.
The average Canterbury dairy farm has about 232 hectares and over 800 cows.
The 2017 New Zealand general election will determine the membership of the 52nd New Zealand Parliament.
The previous parliament was elected on 20 September 2014 and would have expired on 10 October 2017 if not dissolved earlier.
The National Party has governed since 2008, in a minority government with confidence and supply from the Maori, ACT and United Future parties.
The National Party will be seeking a fourth term in government against opposition parties Labour, Green and New Zealand First.
It will be the first election for Bill English as incumbent Prime Minister, having replaced John Key on 12 December 2016.
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