Farm to Your Strengths: Investing to Farm Under New Environmental Reforms

Despite the significant investments New Zealand farmers have made over the last decade to improve the environmental performance of their farming operations, current environmental reforms in New Zealand will require farmers to operate within tougher environmental constraints than they have in the past, according to Rabobank’s report, ‘Farm to Your Strengths.’

Report summary

“Farming businesses will need to incorporate the full cost of environmental risks into future investment decisions,” according to Blake Holgate, animal protein and sustainability analyst. “This will create a new economic cost for farming systems that are unable to operate within those constraints. Generally, the less aligned land use is to the natural characteristics of the land and the receiving environment it impacts, the higher the potential cost environmental risks will present.”

"To reduce the costs and risks posed by environmental constraints, it is important investment decisions are based on a thorough understanding of the strengths and weaknesses of both the physical characteristics of the land and the farming business itself.”