Introduction

“The practice of rural law in New Zealand will only become more complex. Anyone practicing in this area must commit to better understanding the rural industry and what is transpiring. Farmers deserve this and need it to properly survive in an industry that is the backbone of our economy” (Chris Spargo)

The papers in this booklet were designed to assist lawyers who wish to develop and enhance their skills in advising the agricultural sector.

Fonterra and Resource Consent Issues provides a practical outline of relevant common issues faced by rural professional advisors in the dairy sector. The paper addresses issues arising from Fonterra capacity adjustment, dividend payments, growth milk contracts, trading among farmers and permitted activities and resource consents.

Employment Relations in a Rural Context examines provisions particular to rural employment agreements and the factors employers and employees must be aware of when drafting or advising on those agreements.

Topical Farming Tax Issues looks at recent or proposed tax legislation changes and the implication for farming businesses such as the recent IRD revenue alert, proposed changes to herd scheme elections, changes to the depreciation regime, compares limited partnerships and look-through companies, and considers tax implications on the impact of overdrawn current accounts and loss of shareholder continuity effect on imputation credit accounts. 

ETS – Emissions Units for Post 1989 Forest Land focuses on the complex income tax and GST implications of the ETS, illustrates why tax advice should be sought where necessary and how an incorrect assessment of income tax or GST consequences can result in unexpected tax liabilities.

What to Protect and What to Look for if you Act for Farmers, Suppliers or Creditors covers five topics:

Directors, shareholders and family loans/advances to trading entities (including minimum documentation requirements and a case study); Validity of existing contracts upon liquidation or receivership; Security issues for farmers arising under the Personal Property Security Act; Rural trust insolvencies, and Proceeds, accessions and accounts receivable.

Prosecuting Authorities, Penalties and Animal Welfare provides an understanding of the role and responsibilities of regulators; a guide to responding to threat or reality of regulatory prosecution; enforcement powers of those regulating animal welfare in situations of animal movements and offers useful legislative tools and tips.

Nitrogen Leaching and Water Quality focuses on the impact of developing water quality policy on landowners.  It offers a practical insight from the property “coal-face” perspective rather than commentary on the policy development process or an RMA critique.

Issues with Transactions and Settlements covers questions Should we always pay penalty interest in terms of the agreement? What would happen if part of the farm to be purchased was washed away prior to settlement? And How far should we go when covering off vendor PPSR securities?

The New Zealand Walking Access commission and public Access Strategies looks at the recently formed NZWAC work to compile maps and information about land over which members of the public have walking access via “paper roads” or “unformed legal roads” – and the practical and OSH implications for landowners.

Succession Planning Workshop paper demonstrates how succession planning needs to be seen and formulated from the practical human perspectives of all family members involved rather than that of lawyers and accountants. It covers issues raised in the intensive workshop relating to tax, relationship property, succession planning and banking. 

Content outline

• Fonterra and resource consent issues
• Employment relationships in a rural context
• Topical farming tax issues
• Emissions Trading Scheme
• Emissions Trading Scheme - Emission Units for Post 1989 Forest Land
• What to protect and what to look for if you act for farmers, suppliers or creditors
• Prosecuting authorities, penalties and animal welfare
• Nitrogen leaching and water quality
• Issues with transactions and settlements
• The New Zealand walking access commission and public access strategies

Authors