Report reveals economic impact of freshwater reforms

It claims that if the timeframes for achieving the reforms are short, the negative consequences of change are likely to become more significant.

The Ashburton District Council’s Land and Water Management Economic Impact Report conservatively estimates that collectively farm profitability across the district will decline $57.9 million per year, while farm expenditure will also decline by $139.9 million.

With less revenue, farmers will have to tighten their spending with service and support businesses, resulting in lower levels of employment across the sector.

Using the projected impact to the district from Plan Change Two of the Canterbury Land & Water Regional Plan in the Hands Plains Catchment, the report identified that adequate time is paramount to helping farms to evolve and deliver sustainable change.

“We can see from this report that the successful transition to better freshwater outcomes needs to be very carefully balanced with economic sustainability,” said Ashburton District Mayor Neil Brown.

“Meaningful change cannot happen overnight,” Brown said.

He added that the industry and community would need to support innovation and fill gaps in knowledge.

“This will help our farming practices to evolve so that we can continue producing food and fibre, and minimise the negative unintended economic consequences for our community.”

This is the first report to be commissioned to investigate the economic impact of the government’s National Policy Statement on Freshwater Management Reforms on the Ashburton District.