RMA Reform: What’s important for the Primary Sector?

The Government is committed to replacing the Resource Management Act 1991 (RMA) with new legislation in 2026 that is focused on the premise of property rights. However, the Government is not satisfied that we should wait in the meantime and have released discussion documents of proposed changes to national direction of resource management in New Zealand.

What is national Direction?

In New Zealand, we have legislation that sets the national direction for how resource management is approached. National direction for resource management is set under national policy statements, national environmental standards, national planning standards, and regulations that are set under the RMA. 

These national statements and standards set the policy and rules for resource management at a national level, and in turn are used to inform how councils must approach resource management rules in their regional plans, local plans, policy statements, and consenting decisions.

The Government is proposing new and amended national direction to improve the operation of the resource management system under the RMA (MfE, 2025).

Why is the government proposing changes to national direction?

The Government has overarching goals that are of focus for them through resource management reform, which are:
  1. Unlocking development capacity for housing and business growth,
  2. Enabling the deliver of high quality infrastructure for the future, including doubling renewable energy, and
  3. Enabling primary sector growth and development, including aquaculture, forestry, pastoral, horticulture and mining.

In order for these goals to be prioritised, national direction needs to be adjusted so that the rules and regulations allow for these goals to be achieved. The discussion document states that the Governments top priority is economic growth and that there is a need for the right balance to be struck between social, economic, cultural and environmental objectives. Currently, the Government is of the belief that the national direction of our resource management rules and regulations are too inflexible and are restricting economic growth, rather than enabling it (MfE, 2025). Therefore, changes to national direction seek to enable economic growth in priority areas.

The Government has released discussion documents that seek to inform and consult the public on their proposed changes to national direction for four focus areas:

  1. Infrastructure and development,
  2. Primary sector,
  3. Freshwater, and
  4. Going for Housing Growth

The purpose of these documents, and the questions they pose, is to allow the public to have their say on proposed changes so that the Government can consider these before making decisions. The consultation period runs until 11.59 pm on 27 July 2025.

Primary sector

One of the focus areas for amended national direction is the primary sector. The Government have proposed changes to national direction for a range of primary sector areas including marine aquaculture, commercial forestry, highly productive land, mining and quarrying, and stock exclusion.

There are two key areas of interest for pastoral farmers under these proposals that are worth understanding and giving feedback on:

1.) Highly Productive Land

In 2022, the National Policy Statement for Highly Productive Land (NPS-HPL) came into effect. This legislation seeks to protect highly productive land for use in land-based primary production, for now and into the future.

All land in New Zealand is classified using the Land Use Capability (LUC) system. This system identifies the capability of land to sustain primary production. Land is classed from 1 to 8, with increasing class number indicating increasing limitations to land use and decreased versatility of what land can be used for. Currently under the NPS-HPL, highly productive land is classified as land in LUC Classes 1, 2 and 3. As shown in the diagram, LUC classes 1, 2 and 3 are very versatile, with the ability to support multiple land use types. The following table identifies the characteristics of these three land use classes.

According to the discussion document, 15% of New Zealand’s land mass is classed as LUC class 1, 2 or 3 land. Overall, this accounts for 3.8 million hectares of land. Of this, LUC class 3 land accounts for approximately 64% of the land area currently protected by the NPS-HPL (MfE, 2025).

Characteristics of LUC Class 1, 2 and 3 land (Lynn et al. 2009)

The proposed Changes

The Government state that there are concerns regarding the impact that NPS-HPL has on allowing land to be available for urban development. Currently, highly productive land cannot be rezoned or subdivided for development. The concern is the inclusion of LUC Class 3 land in the restrictions under the legislation is restricting greenfield development that could be used to help address urban development and the housing crisis.
 
One of the proposed changes that the Government is seeking advice on is to remove LUC Class 3 land from the restrictions under the NPS-HPL. This would mean that only LUC Classes 1 and 2 would remain protected as highly productive land and be restricted from rezoning, subdivision and urban development.
 
In addition, the Government is also proposing a new category of highly productive land called ‘Special Agricultural Areas’ (SAA). These areas would be used to protect key horticultural growing areas of highly productive land that may be compromised by the removal of LUC Class 3 land from the protections of the NPS-HPL. Examples given for this are areas of horticultural production in Pukekohe and Horowhenua.
 
Overall, the proposed changes seek to reduce restrictions on urban development and rural lifestyle development on LUC Class 3 land.
LUC Class 1, 2 and 3 land (MfE, 2025)
LUC Class 1 and 2 land (MfE, 2025)

Why is this important for pastoral farmers?

Land use and land use change is a big issue that continues to come up for rural communities at the moment. With incoming restrictions on whole-farm conversion to forestry due to adverse effects on pastoral farming and land availability, it is really important to be aware of other changes that could impact the availability of highly productive land for agriculture. As stated, LUC Class 3 land accounts for approximately 64% of the highly productive land that is currently protected under the NPS-HPL. The proposed exclusion of LUC Class 3 land from these regulations will therefore have implications for pastoral farmers that is worth considering and submitting feedback on.

2.) Stock exclusion

In 2020, the Resource Management (Stock Exclusion) Regulations came into effect. These rules prohibited cattle, pigs and deer from accessing wetlands, lakes and rivers. Stock exclusion rules were created due to the adverse impact that stock in waterways can have on the environment.

Since the Government came into power, there have been additional changes to the stock exclusion regulations that repealed the low slope map, and simplified intensive winter grazing rules (MfE, 2025).

Stock exclusion regulations currently require that all stock are excluded from wetlands that support threatened species. This rule is applied to all circumstances, regardless of the size of the wetland, the intensity of the farming system, and if the wetland is on public or private land. The Government states that this currently means that in some places the cost of excluding stock from these wetlands is disproportionate to the benefits for the environment (MfE, 2025).

The proposed Change

The proposed change to stock exclusion rules is driven by a belief that the rules are inflexible and unable to be adapted to individual circumstances. It is thought that, in some places, the benefits of stock exclusion does not outweigh the costs.

The Government is proposing to change the requirement to exclude all stock from natural wetlands that support a population of threatened species. This change would mean that non-intensively grazed beef cattle and deer could be grazed in wetlands that support threatened species. 

Why is this important for pastoral farmers?

Stock exclusion regulations have also been subject to debate and change, and are therefore of interest to many farmers who are also guardians of wetlands on their farms. Balancing the benefits of stock exclusion is of interest to pastoral farmers for various reasons. Likewise, environmental protection of threatened species is also important to many. There is the opportunity to have a say on the national direction that these rules take into the future, so taking the time to give your feedback on the proposed change is a great way for farmers to have their say. 

How can you have your say?

Having your say is an important part of the reform process. You can do this by visiting: https://consult.environment.govt.nz/resource-management/infrastructure-development-primary-sector-nd/consultation/

While it may look overwhelming, never fear! To submit on the two topics discussed above you need to click on the two sections (shown in the image below) via the link where you can submit your feedback. These sections have questions that the Government has posed for feedback, however, you can submit any thoughts or evidence that is of relevance.