Feds make case for rural bank lending probe
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The farmer lobby’s biggest beef over the new rules is around the non-existence of a longpromised “second pathway” for farmers to comply without going to the trouble and expense of resource consents. It believes the new rules, brought in as part of the Government’s Essential Freshwater package, may now force thousands of farmers to apply for resource consent for next season’s winter grazing.
Feds spokesman, Colin Hurst, said there were supposed to be three pathways to compliance. One was as a permitted activity, for those at a really low environmental risk.
The second was to have been by way of a winter grazing module as part of a Certified Farm Plan.
Hurst says government ministers promised in March 2021 and again in April 2021 that the farm plan pathway would be available in time for winter 2022.
“Despite these promises, the alternative farm plan pathway is not available and is not expected to be ready for some time,” he told Rural News.
The permitted activity pathway is available for farmers who can meet rules around protecting environmentally sensitive areas, not winter grazing too great an area, and not using paddocks sloping by more than 10 degrees.
Hurst says it is the slope stipulation that will be the trigger for many. He emphasises how gentle a slope 10 degrees actually is.
“New Zealand’s not a flat country.”
That leaves only resource consent but Hurst said that is a costly exercise that should only be invoked for “really risky” activities, not for normal practices.
“You’ve got to write out the application. And in our case, in Canterbury, it’s a $3,500 deposit – and it’s a 34-page document,” he explains. “They do state that you should be able to do it yourself, you don’t need a consultant. But that might not be the case for all farmers.”
Hurst says Federated Farmers is clear that farmers should carry out winter grazing in a responsible manner and in no way encourages farmers to break the law.
But he says some Southland Feds elected representatives don’t intend applying for winter grazing consents as they consider these to be a waste of time and money.
“This is a clear indication of sheer desperation, and only necessary because the Government has failed to deliver the promised alternative farm plan pathway.” Hurst adds. “I’m really conscious that we don’t want to be mucking up the environment, and if you’re reaching those permitted activity thresholds, there’s no question you need a bit of oversight.”
He says that’s why the winter grazing module pathway was going to be really good. “It would have meant farmers sitting down with their advisors or some sort of tool to work through and document how they would manage winter grazing as part of a farm plan.”
Hurst says that why Feds had requested the minister, several times, to hold off until the second pathway was available.
“We are just requesting a bit of a break,” he says. “Farmers are under a lot of pressure with all this stuff.”
Hurst also highlights the good job farmers have done in the last few years.
While a backstop of regulations was needed for the few who let the others down, he said farmers had actually jumped ahead of the regulations.
“We haven’t had too many issues. Farmers have actually picked up and run with it and improved the whole situation. There’s been very few complaints.”
