Announcement leaves farmers cautiously optimistic

Federated Farmers is welcoming the Land Information Minister, the Hon Maurice Williamson’s, announcement approving a new system for setting rents for South Island high country pastoral leases.

“We think that the Earning Capacity Rent has the possibility to work effectively, so we’re welcoming it with cautious optimism,” says Donald Aubrey, Federated Farmers vice-president.

“The High Country Accord has been working arduously to get these new rents, which will be based on a property’s earning capacity and we’d like to congratulate them for their efforts.

“Although I’m optimistic about the changes, I’m slightly disappointed that we were unable to get greater relief for those facing back rents of up to five years.

“This will place a considerable financial burden on these farmers, but we’re happy to see that Land Information New Zealand (LINZ) is prepared to accept the payments over five years.

“There’s still more work involved though, as the Bill still needs to be presented to Parliament and will be subject to public consultation.

“Government is hoping to introduce the Bill in front of the house by the end of the year and we look forward to working with Government to ensure this process goes smoothly,” Mr Aubrey concluded.