New Zealand farmers criticize the land tax proposed by The Opportunities Party

The Opportunities Party has put forward an initiative to introduce an annual land value tax of 0.5% for agricultural land and 1.75% for urban land. According to the authors of the initiative, the measure is intended to make land ownership more accessible for future generations and provide funding for a citizen's income scheme.

Federated Farmers spokesperson Richard Dawkins stated that such a levy taxes an asset without taking into account the actual profitability of farms and the solvency of farmers. According to him, for an average sheep and beef farm, the tax would amount to about $40,000, and for a dairy farm, $27,000. This will create an additional financial burden and could make many operations unprofitable.

An assessment by Beef + Lamb New Zealand showed that the impact of introducing the tax will vary depending on farm type and region. The most severe blow will be dealt to South Island high-country operations, where the estimated land tax would be about $80,100 against an estimated citizen's income for a couple of $38,800. At the same time, some categories of farms, such as South Island finishing farms, may see a positive net outcome after accounting for the citizen's income.

The Opportunities Party Deputy Leader Danielle Eb explained that the policy includes exemptions for conservation areas on land, as well as for periods of drought or low commodity prices. In addition, the package of measures includes a 25% discount on farmers' investments in new technologies to enhance performance and productivity.

Regarding climate policy, the party proposes setting a target to reduce methane emissions by 35–47% below 2017 levels by 2050, relying on the recommendations of the Climate Change Commission. It also plans to explore the feasibility of establishing a cap-and-trade market or a levy structure to reduce biogenic methane, as well as to amend the existing Emissions Trading Scheme (ETS) so that the priority is emission reduction at the source rather than offsetting through afforestation.

Richard Dawkins criticized the return to rigid regulatory tools for agricultural sector emissions, noting that existing pricing targets for emissions have already had an extremely negative impact on the profitability and morale of the industry.