Hawke's Bay Regional Council Group Manager Strategic Development Tom Skerman said the "report" referred to by Forest & Bird wasn't really a report at all.
"The 'report' referred to by Forest & Bird in its media release was one of many papers which formed the Review of the Ruataniwha Water Storage Scheme.
"It was written by Barrie Ridler, who is a well-known and respected farm consultant who has also been a vocal and consistent critic of the scheme.
"It is not a report prepared or formally adopted by Hawke's Bay Regional Council. There were a range of opinions given within that review by a wide variety of experts, some supporting the scheme, others opposing it and some neutral," Mr Skerman said.
Mr Kay says councils and industry leaders appear to be ignoring important findings, despite farmers struggling to meet rules designed to protect waterways.
A report commissioned by the Hawkes Bay Regional Council shows farms that rely on irrigation are exposed to greater risks and have a reduced return on investment.
"[The] report plainly shows Hawkes Bay farmers who work within environmental limits are making a better investment than those who don't," Mr Kay said.
"They now need to recognise that more production is not the key to success and reconsider the prevailing, polluting model of agricultural intensification."
Mr Kay said the council needed to work with industry leaders, banks, and farm advisers to deliver the message that producing less was both environmentally and economically profitable.
"This research shows we can build economic, risk-averse farming systems and sustain the health of our rivers and wildlife. We now need councils and industry leaders to listen to their own experts."
Mr Skerman said the Hawke's Bay Regional Council is setting environment limits on a catchment by catchment basis in the region.
"It provides information to landowners to help them farm within the environmental limits of their catchment. Landowners are required to manage their operations within the environmental limits as they are put in place or refined.
"In Central Hawke's Bay where new rules and limits under the Tukituki Plan are being implemented, council staff are working closely with farmers and their advisers. Farmers need to work out what changes they need to make on their farms to meet those new rules and limits."
Skerman said the council is pleased to see how proactive many farmers are in organising a farm environmental management plan and talking with farm consultants and the council about what the changes mean for their operations.