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• 1. Purpose
• 2. Background

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Agricultural Productivity Changes Due to Rural Subdivision in the Western Bay of Plenty District

A report commissioned by:

Western Bay of Plenty District Council

&

MAF Policy

Prepared by:

Sandy Scarrow
Agriculture New Zealand Ltd

Any enquiries:

Western Bay of Plenty District Council
Private Bag 12803
Tauranga
Phone (07) 571 8008
November 2000

Copyright in this document belongs to Western Bay of Plenty District Council and it is not to be reproduced without acknowledgement of the source.

1. Purpose

The subdivision of rural land in the Western Bay of Plenty has created considerable community interest over the past few years.

A number of significant resource management issues arise as a result of rural subdivision. One of the key issues is the impact of subdivision on agricultural productivity. As such, the Ministry of Agriculture and Forestry (MAF), specifically MAF Policy, became involved in this project in determining the impact rural subdivision has had on agricultural productivity in the Western Bay of Plenty area.

The purpose of the study was:

• to determine the changes in land use that occurred following the subdivision of rural land between January 1995 and January 2000 (that is, within the last 5 years), and what were the impacts on the productivity of the land resource
• to compare aspects of the report written in 1996 and its supplement in 1997, with the data collected from the most current survey; and
• to fulfil the District Councils' obligations under the Resource Management Act (1991) to monitor the impact of subdivision rules.

2. Background

In March 1995 a survey was undertaken and a report¹ written on the changes in agricultural productivity in the Western Bay of Plenty District Council area as a result of rural subdivision. The report provided information useful to the review of the rules surrounding subdivision. In light of the current review of the subdivision rules, it was thought timely to again study these changes in agricultural productivity. The original survey was undertaken in response to submissions on the Proposed Western Bay of Plenty District Plan. In particular, the concern that the current rural subdivision rules were leading to an unnecessary fragmentation of rural land to the extent that:

• too many small blocks were being created that were not being used for agricultural purposes and were therefore a "waste" of rural land; and
• larger blocks were being subdivided to the extent that they were no longer viable as an independent unit.

Preliminary results from the study were used in the hearings to the Proposed Plan. The original report, and its supplementary report written in January 1997², found that:

• since subdivision, the gross margin per hectare had increased by $17 or 1%.
• despite this marginal increase in gross margin per hectare, the total gross margin produced from the land dropped by 6% since subdivision. In absolute terms this was a $184,500 drop in the gross margin produced from the land in the survey.
• there was no strong association between property size and land use; and
• properties subdivided into lots smaller that 2 hectares area were more likely to be removed from primary production. That is, 22% of properties less than two hectares in size were removed completely from primary production since subdivision compared with an increase (4.5%) in properties involved in primary production for properties greater than four hectares.

The aim of this report is to determine whether land is used in a manner which is more or less productive as a result of subdivision. The report will provide quantifiable input into the review of the subdivision rules currently taking place. Alongside this report, a series of workshops are taking place with stakeholders to generate some qualitative input into the review of the subdivision rules.

The study also forms part of the District Council's ongoing monitoring of its District Plan.

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¹ Agricultural Productivity Changes Due to Rural Subdivision in the Western Bay of Plenty District, February 1996
² Supplementary Report to Agricultural Productivity Changes Due to Rural Subdivision in the Western Bay of Plenty District, January 1997

Contact for Enquiries

Manager
North Island Regions
Sector Performance Policy
MAF Policy
Hamilton
NEW ZEALAND

Phone: +64 7 957 8313
Contact this person