Freshwater Regulations Do Not Negatively Impact Farm Values
New research from Lincoln University provides reassurance for dairy farmers concerned about the impact of freshwater regulations. The study has found no significant negative effect on land values or farm profitability, contrary to early fears.
What the research found:
- Farmers initially worried regulations would reduce farm productivity and land values
- Research shows most farmers believe land values remained stable or improved
- Complying with regulations improved farm efficiency while reducing nitrogen leaching
- Environmental compliance is now considered a driver of farm value
Lead researcher and registered valuer Edward Percy says “We didn’t find any conclusive evidence that land values were significantly impacted by freshwater regulation. Rather, remaining compliant is a strong driver of value.”
The results suggest environmental regulations can coexist with profitable farming, with farmers becoming increasingly motivated to mitigate environmental impacts while maintaining productivity.
