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Waikato Federated Farmers are in negotiations with Transpower over compensation payments for pylons that cross their land - a sign of softening in the stance of the grid operator.
For months it has insisted on its right to access land for a project to increase the amount of electricity carried to Auckland.
Some farmers have refused to allow Transpower workers access to their land until some form of compensation could be worked through. Waikato Federated Farmers president Peter Buckley said he and the organisation's lawyers met Transpower executives, including national grid general manager David Laurie, late yesterday.
"For me it indicates they are looking for a solution. They are looking at the land they would have to otherwise buy, which is so bloody expensive that they are now looking for alternatives."
Mr Buckley said the farmers' group would present a compensation proposal to Transpower tomorrow.