Wednesday, 05 December 2012 13:43

New conversions must be top notch water managers

Written by 

INVESTMENT IN new dairy conversions could be affected by last minute changes to the Land and Water Forum’s third report, says IrrigationNZ’s chief executive Andrew Curtis.

 “Dairying that goes in from now on has to be high performance, top of the management practice if we are going to move to what needs to be achieved in water quality,” Curtis told Dairy News.

“With consents not being addressed in the report so they are of longer duration without explicit right of renewal, it is creating an unnecessary barrier to investment.

“And it’s people not understanding how the banks work. In the past the banks haven’t really paid much attention to this sort of stuff, but they have all woken up to what’s going on in the water quality space.

“All this water quality stuff will require investments and if people are going to invest in good quality kit that’s pushing the irrigation side of things then you need longer-duration consents; the water infrastructure is going to need a longer consent still.

“If you are building infrastructure that lasts 70-100 years, it should be consented for that sort of time frame. That will allow easier financial investment and open up more opportunity.

“If people are going to invest on-farm, then having explicit right of renewal makes sense as well.”

Curtis says a framework needs to allow for long-term thinking; at the moment is a “bit confused”. He recently travelled to UK and Israel with Australians from the irrigation industry. 

“It allowed me to compare what’s happened in Australia, UK and Israel. We are the only country in the world that doesn’t have subsidies.  Australia doesn’t have subsidies as such, but the Government is putting a lot of money into infrastructure upgrades – billions of dollars. 

“Australians have property rights for water, UK is moving towards having property rights, in Israel they have a permit which is perpetual although the water in Israel is all owned by the Government. They can revoke a permit but that has compensation associated with it.

“Look at what’s happening overseas and what’s happening in New Zealand and you think we really should be creating equal playing fields for our farmers considering agricultural exporting is what the country runs on.”

Curtis says IrrigationNZ spent a year collaborating in good faith to reach an agreement on how water quantity and quality is best managed in New Zealand. A package that provided a sound platform to support sustainable future growth had been produced.

“The report did a lot of footwork and landed in a useful space then there was a lot of back-and-forth at the last minute. It has ended up with a split recommendation.”

Featured

Editorial: Will big be better?

OPINION: The shakeup to the science sector with the proposed merger of four ag related crown research institutes (CRIs) into one conglomerate has drawn little public reaction.

Co-op boosts chilled exports to China

Alliance Group has secured greater access for chilled beef exports to China, following approval for two of its processing plants to supply the market.

Expo set to deliver in spades

The countdown is on to be one of the most anticipated events in the sheep and beef industry, the East Coast Farming Expo.

New Summerfruit NZ CEO

Dean Smith has been in the role of CEO of Summerfruit NZ for about four months, having succeeded Kate Hellstrom at the end of September.

FE survey underway

Beef + Lamb NZ wants farmers to complete a survey that will shed light on the financial toll of facial eczema (FE) at the farm level.

National

Synlait sweetens milk supply deal

Canterbury milk processor Synlait is confident of retaining its farmer supplier base following a turnaround in its financial performance.

Optimism in the air

Ag First chief executive James Allen says dairy farmer optimism is on the rise.

Machinery & Products

New distributor for Aussie equipment

Australian agricultural equipment distributor, Waringa Distribution, has increased its support to South Island farmers and contractors with the appointment of…

» Latest Print Issues Online

Milking It

Bovaer's fate

OPINION: The fate of methane inhibitor Bovaer in NZ farming is still up in the air.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter