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HORIZONS ONE Plan is the biggest potential constraint to the development of agriculture in Manawatu, according to a wide-ranging economic report on the subject.
The 44-page report, just released, is the last in a series on key economic sectors commissioned by Palmerston North City and Manawatu District councils to highlight their importance to the local region.
The report, prepared by Massey University economics student Carla Muller, highlights the importance of agriculture to the rural community and to Palmerston North. It says in 2011 agriculture directly contributed $268 million to the region and indirectly $80 million. The report estimates agriculture accounts for 25% of Manawatu district's GDP and 1.5% of Palmerston North's GDP. On average, every dairy herd in the region has a return (before tax) of $139,519; sheep and beef farms return, before tax, $213,841.
But the report singles out One Plan as the biggest threat to farming in the region, saying it will have a potentially large impact on "farming practices and the farming landscape". It goes on to say that it's hard to quantify the exact impact until the court issues are resolved.
Palmerston North mayor Jono Naylor (pictured) told Rural News is greatest concern about One Plan is the lack of resolution of the issues involved. With agriculture such a big part of the region's economy it's important concerns over viability and productivity are quickly resolved, he says.
"I think agriculture is taken for granted by a lot of New Zealanders. I don't think a lot of people realise that the lifestyle we live today in the cities is on the back of the work done on farms. It's a huge part of our economy and the rest of us re-circulate the money [farmers] generate."
Naylor says the multiplier effect in Manawatu region from agriculture is big. "There is the direct impact from the farmers and the money they spend, which then generates jobs in the industries servicing the agricultural sector – education in agriculture, research institutions, and a lot of our manufacturing."
Court accepts MPI report
THE ENVIRONMENT Court will consider the report commissioned by the Ministry for Primary Industry, prepared by Landcare, as part of the Land and Water Forum process.
The report suggested among other things that the One Plan could cut some farmers and commercial growers' incomes by as much as 43%.
HortNZ applied to the court to have the report considered because they said it contained new evidence about the economic impacts of the One Plan. Fish and Game opposed this and Horizons Regional Council did not support the move.
The decision by the court to look at this 'new' evidence is seen as a victory for HortNZ and Feds who are appealing the One Plan to the High Court. This latest move will delay any decision on the One Plan by several months.
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