Applying synthetic nitrogen fertiliser to farmland increases nitrate levels in the soil. Run-off from this soil can degrade our waterways.
Subpart 4 of Part 2 of the NES-F sets out rules for applying synthetic nitrogen fertiliser. Farmers can apply up to 190 kilograms of nitrogen per hectare per year without a resource consent. If they use more, they must apply for a resource consent. Dairy farmers are also required to provide receipts and information on fertiliser use once per year.
The initial year for reporting on the nitrogen cap (2021–22) had low compliance with reporting requirements and unreliable reported data. In response, several administrative changes were made, and compliance and reliability improved. However, implementing the nitrogen cap has been a work in progress, and concerns about the reliability of reported data remain.
Farmers and growers have improved their use of nitrogen fertiliser and continue to lift their uptake of good management practice. Publicly available data indicates a reduction in the use of synthetic nitrogen fertiliser in New Zealand in 2020–23.26
We are consulting on three options to improve the NES-F rules for synthetic nitrogen fertiliser, as set out below.
26 Fertiliser data includes: New Zealand Emissions Trading Scheme reporting on nitrogen imported or manufactured in synthetic fertilisers (which shows a decrease of about 80,000 tonnes between 2020 and 2021); sales data reported by the Fertiliser Association (which shows a 12 per cent drop in fertiliser sales between 2020 and 2022); data collected by Stats NZ as part of the Agricultural Production Survey and Census (which shows a decrease in fertiliser application of approximately 10 per cent between 2020 and 2022).
Repealing the requirement for dairy farms to provide receipts
We are consulting on whether to repeal the requirement for dairy farms to provide receipts for purchases of synthetic nitrogen fertiliser.
This change would address concerns that the requirement to produce receipts is unnecessary because councils do not use the information provided. The receipts do not give an accurate measure of fertiliser applied, and the requirement is particularly onerous for farmers who are not affiliated with large fertiliser companies.
Aligning the reporting date for dairy farms with the farming calendar
We are also consulting on whether to align the reporting date in the NES-F with the farming calendar.
This change would address concerns that it is inefficient to require dairy farmers to report on their fertiliser use at a different time of the year from when they report on other matters.
Repealing the 190 kilogram per hectare nitrogen limit
We are consulting on whether to repeal the requirement for farmers to use less than 190 kilograms of nitrogen per hectare per year on the grazed area of their farms.
The introduction of the nitrogen cap in the current NES-F helped to increase awareness of nitrogen use, and it improved practice. We are seeking feedback on whether the cap is still necessary, given farmers and growers have improved their use of nitrogen fertiliser and continue to lift their uptake of good management practice. The rule is also an input control that may not actually control or reflect environmental risk/damage. Well-managed fertiliser, applied at higher rates than the regulations specify, can have limited environmental impact, while poorly managed fertiliser can have a negative impact, even if applied at lower rates.
For further information on this topic, refer to the impact analysis document entitled Interim Regulatory Impact Statement: Options to amend regulations for farming activities.
