Govt to work with high country farmers on rent issues

The Government says it wants to work with South Island high country leaseholders to ensure high country farming remains sustainable, despite rising rents.

"Market forces are putting up the price of land, and hence the rent farmers have to pay," Land Information Minister David Parker said.

"This has extra impact as the rents are only reviewed every 11 years."

Rents, if paid on time, are set by law at 2% p.a. of the land's value exclusive of improvements.

"In the past some rental valuations included amenity values and others didn't. We need to have a consistent approach that is in accordance with the Land Act. Officials are simply applying the law."

David Parker was commenting after Land Information New Zealand announced a number of new and revised rents for high country leaseholders.

"This Labour-led government is committed to high country farming that is environmentally sustainable and economically viable, and we value its contribution to the New Zealand economy and South Island rural communities," Mr Parker said.

"While the Crown wants a fair financial return on its high country land, it doesn’t want to make rents unaffordable. That's why the Government will be considering ways of addressing affordability issues.

"We want to achieve outcomes that that are lawful and fair for both parties.

"The Crown has said it is willing to consider reductions to rents, where the higher rents are unaffordable, which may be the case in some but not all cases.

"The lessees' representatives have said they do not wish to enter such negotiations until after the lawful rent is determined. Accordingly the new rental notices are being sent out and leaseholders who disagree with their rents can have the disagreement resolved by the Land Valuation Tribunal," David Parker said.