Taranaki Regional Council media release
9 April 2009
For immediate release

Plant Trees And Save Tax Dollars

Streamside fencing and planting gives the environment a break – and can also give the farmer a tax break.

The key is to be doing the work regularly and building the costs into farm budgets as normal working expenses, says John Dazley of Stratford accounting firm Capper Macdonald and King.

This message is echoed by the Taranaki Regional Council, which has joined the region’s dairy farmers in a world-scale riparian programme aimed at getting all 17,500 km of ring plan streambank protected by fences and vegetation. Fences prevent stock from directly fouling waterways, while vegetation acts as a run-off filter and enhances stream habitats.

Mr Dazley says that with environmental tax breaks introduced in 2005, farmers can now claim:
• A deduction of up to $7,500 for planting and maintaining trees. If more than $7,500 is spent in a year, the extra amount will be deducted evenly over the following 35 years.
• A 100% deduction for fencing.
• A 100% deduction for providing shelter and preventing erosion.

Some conditions apply to these deductions but in general, they apply to the sort of work involved in Taranaki’s riparian programme.

“The message is that there are financial benefits as well as environmental benefits in good riparian management,” says the Taranaki Regional Council’s Land Services Manager, Don Shearman. “Not only is the cost of such work tax deductible, but it brings important benefits in stock management and land management.”

Since the late 1990s, more than 2,000 riparian management plans have been prepared for Taranaki farms, covering around 11,000 km of streambank. The plans cover the fencing and planting of waterways and are drawn up for landowners at no cost by the Council, which also supplies the plants at cost.

Riparian management is a key part of the Taranaki Regional Action Plan drawn up under the Dairying and Clean Streams Accord. Effective riparian buffers enhance water quality by filtering agricultural run-off, and reducing the speed of run-off, which moderates stream flows, reduces flooding and increases baseline flows

Land owners interested in any aspect of riparian management can call the Taranaki Regional Council on 0800 736 222 and ask to speak to a Land Management Officer.

ENDS

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