The previous round of Hastings revaluations in 2016 resulted in a Tangoio drystock farm experiencing a capital value increase of 34 per cent, attributable to the neighbouring coastal lifestyle blocks changing hands multiple times and a luxury accommodation business established next door ramping up sales prices.
The 127ha Tangoio farm with two dwellings was valued at $4.3million. In contrast, a comparable inland drystock farm also with two dwellings and larger at 189ha, was valued at $2.27m. This left the farmer with an unfair, unaffordable rates bill.
At the rates hearings last week, Federated Farmers suggested Hastings introduces a new remission policy for rates postponement to address the problem of these farms with outlier values.
A postponement is intended only for landowners who are farming. It is not a rates freebie if the property is developed or sold and the increased capital value realised.
Northland Regional Council, Kapiti Coast District and Horowhenua District have a similar issue: expanding town boundaries suddenly give farmland urban development potential; or increased subdivision pressure originating from demand coming out of Auckland and Wellington.
The purpose of these councils' postponements/remissions is to preserve uniformity and equitable relativity with comparable parcels of farmland. This is a worthy goal that I'm sure Hastings shares.
• Rhea Dasent is a senior policy adviser for Federated Farmers
