New Zealand High Country Land Reforms Boost Farming, Jobs, and Regional Growth

Rule changes freeing up high country farmers to make the most of their land will unlock economic opportunities, support job creation and strengthen regional economies, Land Information Minister Chris Penk and South Island Minister James Meager say.

Farmers in the high country make a significant contribution to New Zealand’s primary industries, but they’re telling us they want to do more and regulatory barriers are holding them back, Land Information Minister Chris Penk says.

That’s why the Government will introduce a Bill to Parliament that will give Crown pastoral land leaseholders more flexibility to expand their businesses and diversify their income.

Changes to the Crown Pastoral Land Act and Land Act will allow a wider range of complementary activities on Crown pastoral land alongside pastoral farming, including growing crops and horticulture, running small farm shops, hospitality ventures, and renewable energy projects.

Modelling suggests these changes could significantly lift the value of Crown pastoral land, with returns per hectare rising from around $80 for pastoral farming to about $2,000 for horticulture such as cherries, and up to $18,500 for solar projects in some cases.

As the economic productivity of this Crown-owned land increases, so too does the return for Kiwi taxpayers over time, through higher-value lease arrangements that bring in revenue for the Government, supporting investment in public services and infrastructure.

South Island Minister James Meager says with 1.2 million hectares of Crown pastoral land in the South Island, stretching from Marlborough to Southland, most of it currently used for pastoral farming, the scale of the opportunity is significant.

Adding activities like horticulture and beekeeping alongside traditional farming, along with selling fresh produce on site, gives farmers more ways to earn from their land and grow their operations.

Encouraging hospitality ventures, tourism and hunting also attracts visitors to the region, benefiting the wider local business community as people spend in shops, eat at restaurants, and stay in nearby accommodation.

We know this land and its environment are deeply valued in the South Island, and these changes make the rules clearer, simpler, and more workable for farmers, while maintaining strong protections for the high country’s environment and ensuring pastoral farming remains the primary land use.

Mr Penk says the Bill will also reduce unnecessary administrative burden and give farmers greater certainty by clearly setting out which day-to-day activities, such as fertilising land or repairing farm buildings, can be carried out without approval and which require formal consent.

The Bill also establishes a pathway for removing land from the Crown pastoral estate in exceptional cases where using it for a different purpose would deliver significant benefits for New Zealand.

These changes will make it easier for leaseholders to run modern, productive businesses while protecting the unique South Island high country for future generations, Mr Penk says.

Note to editors: The public can provide feedback on the Crown Land Legislation Amendment Bill through the Select Committee process.