Resource management reform

The penalties for lack of compliance have increased and compliance history will now be more important.

• Maximum fines for individuals will increase from $300,000 to $1 million. The maximum penalty for a company or other ‘non-natural person’ will increase from $600,000 to $10,000,000.
• It will be illegal to insure against RMA fines from mid-2027. You will still be able to insure against legal and remediation costs.
• Consent authorities can now use your past non-compliance infringements/abatement notices when considering new or replacement consents.
• Councils have greater powers to charge or recover costs for investigating suspected breaches, issuing abatement and enforcement orders, and monitoring compliance.

What this means for dairy farmers

• Talk to your insurer to understand how the changes affect your insurance coverage.
• Be aware that the costs of non-compliance are increasing.
• Be aware that compliance history is now more important in relation to your consent applications.

DairyNZ’s position

Non-compliance harms both the environment and farming’s reputation, and we strongly support good environmental management. However, because the RMA is ‘strict liability’ legislation, farmers can still face significant penalties for mistakes or circumstances outside their control, even where there is no intent or negligence. These concerns underpinned DairyNZ’s opposition in our submission to the proposed changes.

Regional councils now have more clarity around what they can designate a permitted activity (no consent required), provided there is environmental improvement.

• Councils have more flexibility around creating permitted discharge rules that allow some ongoing effects, if the rules require measurable improvements over time.
• There remains an overall requirement for a council to be satisfied that the negative effects of those discharges will reduce over time (within a maximum of 10 years).

What this means for dairy farmers

• Regional councils now have greater scope to provide for farming activities as permitted activities – including in Southland and Waikato.
• This is not a ‘free pass’. Permitted activities will still require farmers to meet standards, and failure to meet those standards can result in enforcement action.
• Many activities will still require a consent, and Councils will need to be comfortable there will be improvements within a ten-year period.

DairyNZ’s position

We have been pushing strongly for these amendments after an Environment Court decision in Southland limited the ability for regional councils to provide for standard farming activities as permitted. We will continue to advocate for permitted pathways for low-risk farming activities at the regional level.

The pause on regional planning processes has been extended to the end of 2027.

• There is a pause until the end of 2027 on councils notifying new regional freshwater planning instruments.
• This includes any proposed plans, unless they have progressed to the hearing stage.
• Regional councils can apply to the Minister for an exemption to the pause.
• The Minister has expanded powers to direct a regional plan change if the Minister considers regulations are negatively impacting economic growth, development capacity, or employment.

What this means for dairy farmers

• Be aware that there will be fewer regional plan changes over the next two years, or until new national direction is in place.

DairyNZ’s position

We broadly agree with the pause to ensure there is new national direction in place before regional councils proceed with plan changes. There will be plans that need to be amended prior to changes, and we will work with levy payers and elected officials to identify and address these.

There have been changes to the thresholds and who can certify and audit Freshwater Farm Plans (FWFP).

• Industry organisations approved by the Minister for the Environment can act as certifiers and auditors.
• All dairy farms will require a Freshwater Farm Plan.
• The minimum size for certain land uses requiring a Freshwater Farm Plan has increased from 20 to 50 hectares. New triggers (such as high-risk catchments or activities, or regulatory requirements) have been introduced for which plans require certification.

What this means for dairy farmers

• When these regulations come into force, all dairy farmers will be required to have a Freshwater Farm Plan. The national FWFP regulations are currently being updated – keep an eye on the DairyNZ website and government websites to stay up to date.
• Expect more streamlined, industry-led FWFPs and certification options, once the sector has assessed feasibility.

DairyNZ’s position

We support a strong, certified Freshwater Farm Plan framework as an alternative to consents or broad regulations. We endorse recognising existing industry farm plans and involving dairy companies in certification where this benefits the sector. We are working with government on updates to the Freshwater Farm Plan regulations to maintain robustness, recognise industry-led plans, and ensure a smooth transition without duplication.

The consenting process has been streamlined to make it more efficient, with proportional information requirements and an opportunity to review draft consent conditions.

• Applicants now only need to provide information proportionate to the scale and significance of the potential environmental effects of their activity.
• Councils must consider whether requests for further information are necessary and proportionate before asking applicants for more details.
• Consent authorities can return applications deemed incomplete if applicants do not respond to requests for further information.
• Applicants can now request to review draft consent conditions before final decisions are issued.

What this means for dairy farmers

• Applications for relatively minor activities may require less information and cost less.
• Streamlined information requests and clearer processes may reduce delays.
• Farmers have an opportunity to review and address consent conditions before they are finalised.
• You should seek advice on the relevance of these changes to your specific consent application.

DairyNZ’s position

We support these changes which improve the efficiency and clarity of the consenting process.

The Act includes several amendments specifically relevant to Otago.

• It extended the expiry date of most water permits granted since 18 March 2020 in Otago by 5 years.
• It allowed water permits that are still to be replaced to have a simpler consent pathway.
• It removed rules for managing diffuse rural discharges from the Water Plan that would have required most farmers and growers in Otago to apply for a consent after 1 April 2026.

What this means for dairy farmers

Check with Otago Regional Council to understand the implications for your specific situation, particularly the obligations to demonstrate existing use.

DairyNZ’s position

We raised concerns about the uncertainty created by short-term consents and the administrative burden. We will continue to push for workable solutions for Otago farmers.