Purchasing a farm is a significant investment that goes beyond just having the finances ready. Prospective buyers must consider a myriad of factors that can impact the viability and sustainability of their agricultural operation. These include understanding the type of soil, how erosion prone the soil is, the availability of water resources and many other practical indicators of a farm’s likely profitability and success. Additionally, regulation (the farm’s current regulatory compliance and its ability to meet future compliance) now plays a pivotal role in determining whether the intended farm is the “right one” or not. Moreover, the local market conditions and community relationships can play a crucial role in the success of the farm. This is where having solicitors have practical hands-on experience in agriculture along with deep roots in your community can make all the difference.
Each of these elements requires careful consideration to ensure that the farm not only thrives but also aligns with the long-term goals and values of the buyer. Non-compliance with environmental farm regulations can result in significant penalties.
We discuss some of the factors you should consider below.
You need to think about environmental rules and sustainable land management. How you plan to use the land affects its environmental impact and the types of resource consents you’ll need. These consents, which cover things like water use, waste discharge, and land changes, ensure activities comply with the Resource Management Act (RMA). Regional councils handle these consents, and you’ll need to go through a detailed application process to show how you’ll manage environmental effects appropriately. For many years this was the domain of dairy farms only but this is now becoming much more prevalent in the sheep and beef industry as well.
Do you have a freshwater farm plan? A freshwater farm plan is key for meeting environmental rules, especially with the regulations to improve water quality and ecosystem health. These plans help manage the impact of farming on water resources and include actions specific to each farm. Keeping livestock out of waterways is crucial, with rules requiring fencing or other barriers to stop them from contaminating the water. Does the farm have waterways that need to be excluded?
The ability for the farm to help reduce greenhouse gas emissions is becoming an important consideration when looking at buying a farm. For example, does the farm have any trees planted post 1990 that could be registered in the Emissions Trading Scheme, these carbon credits could be sold to meet any future Zero Carbon Act obligations or for future cashflow. Other considerations are whether all streams on low slope land being fenced off in accordance with the Stock Exclusion Regulations. It is not just the practical items but also information and plans held by the vendor. For example, farms are encouraged to create plans to cut down on greenhouse gases, in line with national and international goals like the Paris Agreement. These plans often focus on reducing methane from livestock and using low-emission farming methods. If a farm has a Greenhouse Gas Emissions Plan, then it needs to be ensured that the vendor passed it on to the purchaser so as to limit the need to “reinvent the wheel”. At the same time, the vendor’s current plan needs to be reviewed to ensure it meets the standard.
Does the farm already have a plan in place for effluent management? It is significant area of non-compliance. Farmers sometimes struggle with the proper storage, treatment, and application of livestock waste. This can lead to water pollution and nutrient leaching, which are serious environmental concerns.
When it comes to overall environmental planning, farms are now being required under many farm assurance programs to go even further with such things as biodiversity plans and evidence of community involvement. These plans are often made with help from local councils and environmental groups to fit the unique ecosystems on the farm. Iwi are sometimes involved as well.
Audit schemes like the New Zealand Farm Assurance Programme (NZFAP) and its advanced version, NZFAP+, are key in formalising environmental efforts. These programmes help farms show they meet strict standards for traceability, food safety, animal welfare, and environmental management. Getting NZFAP+ certified means a farm is highly committed to sustainable practices, with independent audits to ensure they meet the standards. Is the farm you are purchasing certified?
In short, meeting environmental rules for farms in New Zealand involves careful planning and management in many areas. This includes getting the right resource consents, creating specific plans for water and greenhouse gas management, committing to biodiversity, and following recognised audit schemes. The process is detailed and regulated to make sure farming practices benefit both the environment and society.
We have experts who can advise you on all aspects of farm acquisition and help steer you through all the steps to make sure you meet all necessary environmental farm compliance.
