B+LNZ update on environmental policy advocacy

// Climate change // Freshwater

This email was sent to farmers on 20 March 2025. 

image of sheep infront of pine trees and mountains

B+LNZ’s recent Mid-Season Update showed positive signs for our sector. While profitability is rebounding, we know farmers remain concerned about key policy areas like climate change and freshwater.

After a 33 percent increase in costs over the last four years, our sector wants to avoid unnecessary costs and needs certainty to have the confidence to invest in the future.

B+LNZ carries out a wide range of activities for our levypayers, working in areas farmers cannot on their own. Environment policy is one of these areas. Here’s a roundup of some key environmental policy issues and what B+LNZ is advocating for.

Methane targets

It’s more important than ever that the Government amends the domestic methane targets, which are currently a reduction of 24-47 percent by 2050 from 2017 levels. These targets are asking for methane-emitting sectors to do more than their fair share and, if unchanged, will accelerate already concerning stock losses across our sector.

Recent developments:

  • The Government’s announcement at the end of January of its revised international commitment (Nationally Determined Contribution, or NDC) to a 51-55 percent reduction in overall emissions by 2035, has not been received well by farmers and B+LNZ. Because it’s a bundled all-gas target, it’s unclear what methane needs to do to achieve it. Read this recent Rural News article for more information.
  • In December, B+LNZ released an independent report by Macaulay Jones that showed there is precedent internationally for having a split-gas NDC, and that NZ is out of step with how climate change policies globally treat food production. Find information about the international climate change policies report on our website here.
  • Also in December, the independent panel on biogenic methane science and targets suggested the revised domestic methane targets could be between 15-24 percent reduction by 2050. Although these would be an improvement on the current methane targets, they would still be a stretch for our sector.

What B+LNZ is advocating for:

  • We have told the Government that now is the time to amend the domestic methane targets based on the principle of no additional warming, to provide certainty to farmers about what they need to do.
  • We have also been arguing strongly that there should be no price on agricultural emissions because we don’t need a ‘stick’ to meet our current methane targets (see the international climate change policies report above for more on this).
  • We met recently with Ministers Watts and McClay to convey these positions strongly and will continue to do so.

Afforestation

Last year the Government announced restrictions on whole-farm forestry conversions being entered into the ETS. It put a three-year moratorium on land classes 1-5 being entered into the ETS, a limit of 15,000ha on land class 6 with no limits on land classes 7 and 8. At the time it said the new rules would apply from 4 December 2024, unless there was a clear intent for conversion before that date.

Recent developments:

  • We understand the legislation enacting the new rules will come into effect in October 2025 but will affect all land where a decision to afforest was not made before 4 December 2024.
  • We have heard from concerned farmers about recent purchases of sheep and beef farms in Southland/Otago and Hawke’s Bay by forestry companies.

What B+LNZ is advocating for:

  • We have raised concerns about these farm purchases with Minister McClay and National’s rural MPs caucus in the last couple of weeks and stressed the need to enforce the ‘intent’ properly. In our view ‘intent’ means having been in the process of purchasing the farm before 4 December 2024.
  • Landowners have a right to do what they wish on their land, but there is a problem in long-standing policy settings that encourage offset planting instead of carbon emissions reduction, and at the expense of food production. These policy settings have created a massive distortion in the land and carbon market.
  • We strongly support the integration of trees within farms however.

We'll provide more information about our advocacy on this issue in e-diaries soon.

RMA reform

The Government is proposing to introduce a more streamlined and practical regulatory framework.

Recent developments:

  • In October, the Government passed amendments to the RMA that addressed a range of issues B+LNZ had been concerned about. They included requirements for regional councils to pause work on freshwater plans (see below) and identifying Significant Natural Areas (while the NPS for Indigenous Biodiversity is reviewed) and removing the flawed low-slope map from the stock exclusion regulations.
  • The Environment Select Committee considered the Resource Management (Consenting and Other System Changes) Amendment Bill last week.
  • The more substantial replacement to the RMA will be introduced this year with the first announcement expected very soon.

What B+LNZ is advocating for:

  • We presented to the recent Environment Select Committee (see a recording here, from the 6:22:36 mark) noting we support the overall intent of the Bill, particularly its focus on trying to make RMA processes more efficient, and the proposed changes to the freshwater farm plan framework. However, we highlighted concerns about some of the proposed changes to the RMA, such as the massive increase in fines (from a maximum of $600,000 to $10 million), Section 70 matters (which could mean most farmers in most catchments cannot be a permitted activity) and some of the changes around consenting.
  • For the replacement to the RMA, we want a risk-based system that’s centred around allowing farmers to manage relevant issues on their individual farms in a simple and tailored way. While we support the intent of simplifying systems and relying less on consenting, we have concerns the emphasis is going to be on increased compliance and monitoring and enforcement.
  • We are strongly opposed to using mechanisms such as allocation of tradeable rights to individual farms, or cap and trade systems, as a way of addressing water quality issues.

Freshwater

B+LNZ strongly supports the Government prioritising amendment of the National Policy Statement for Freshwater Management (NPS-FM) this year.

Recent developments:

  • The B+LNZ-commissioned independent report, by leading consultants Torlesse Environmental, highlighted fundamental flaws in the sediment and E. coli attributes and national bottom lines. The report generated a lot of discussion and support around NZ after it was released last July. The Government paused regional councils’ implementation of freshwater plans in October 2024. You can find information about the Torlesse report on our website here.

What B+LNZ is advocating for:

  • We want the revised NPS-FM to be less focused on ‘paint by numbers’ targets and instead focused on how to achieve outcomes such as ecosystem health and swimmability.
  • It’s vital that the sediment national bottom line is removed as the Torlesse report showed this was completely flawed and would have required over 40 percent of all sheep and beef farmland to be retired to even come close to meeting it.
  • Many councils are well advanced in developing new freshwater plans based on the old rules. When the new rules come in, there needs to be some direction provided for councils on how to start again, as we’re concerned they will simply restart from where they got to under the old rules.

We’ll provide a more detailed roundup of B+LNZ’s regional water policy work in e-diaries soon.

Freshwater farm plans

B+LNZ has long advocated for farm plans as effective tools for managing environmental issues, but that they need to be flexible and based on the specific issues of individual farming businesses.

Recent developments:

  • We understand the Government is planning to require all farmers to do a plan but that it is working on a simpler structure and requirements for lower-risk farms.

What B+LNZ is advocating for:

  • We’re pushing for a practical approach to farm plans that are based on risk and can be used in place of consents.
  • We believe freshwater farm plans should be at the centre of regional plan rules and that there should be a system – possibly as part of the RMA reforms – that restricts councils as to when they can go beyond requiring freshwater farm plans.
  • We don’t believe that all farms plans should need the same degree of complexity and auditing, and the lowest risk farmers should be exempt from the requirement.

Further information

We’ll keep you informed on these issues and are aiming to send you an environment policy roundup each quarter.

There’s also a lot of other advocacy work underway – see for example:

Keep an eye on B+LNZ e-diaries for the latest developments.

As always, please talk to one of us or your local B+LNZ farmer director if you have any questions or concerns.

  • Climate change
  • Freshwater