LakeRotorua Nutrient Reduction Fund

Application form

The Lake Rotorua Nutrient Reduction Fund is a voluntary initiative carried out by the Bay of Plenty Regional Council (BOPRC). The aim of the fund is to reduce nitrogen entering LakeRotorua from rural land based activities.

Application Details

All sections below must be completed and supporting documentation provided for a fund application to be considered.

Applicant/sName:______

Applicant/sAddress:______

Mailing Address: ______

Town/City: ______Post Code: ______

Home Phone: ______Mobile: ______

Email: ______

Fund application continued

Please fill out the following information for the property where action is being proposed:

YES / NO
Is it in the LakeRotorua surface water catchment?
Do you own the land?
What is the approved nitrogen benchmark? / kgN/yr
What is the size of the property? / Ha
Legal description of property where proposed action (s) will take place (include location map)
Land title
(e.g. Māori or fee simple title)
Description of proposedactions
(attach further description and necessary files)
Lifetime of proposed change / Years (note: use 30 yrs for permanent changes)
Total funding required / $
Total reduction in nitrogen losses relative to approved benchmark / kg N/yr
Cost-effectiveness of reductions / $/kg N/yr

Supplementary Environmental Information

The following information can be directly taken from OVERSEER® report files.

THIS INFORMATION WILL NOT BE USED TO ASSESSFUND APPLICATIONS.

Change in phosphorous losses / kg P/ha/yr
Change in methane emissions from animals / kg CO2 equivalents/ha/yr
Changes in nitrous oxide emissions from excreta & effluent and nitrogen fertilizer / kg CO2 equivalents/ha/yr
Changes in carbon dioxide emissions from lime / kg CO2 equivalents/ha/yr
Changes in carbon dioxide emissions from fuel & electricity use / kg CO2 equivalents/ha/yr

Agreement

I acknowledge that I have read and understand the rules of the fund, and to my knowledge the information I have provided is true and factual.

Signature ______Date ______

General Information

Background

LakeRotorua is the largest lake in the district and iconic in our region. The state of water quality in LakeRotorua is degraded, primarily due to excess nutrient inputs. Current water quality, as measured by the Trophic Lake Index (TLI) is 4.7 units. The Regional Water and Land Plan (RWLP) target for LakeRotorua is 4.2 TLI. The LakeRotorua catchment nutrient reduction targets to be achieved by 2029 are 170 tonnes nitrogen (N) per year and 10 tonnes of phosphorus (P) per year.

A new $750,000 nutrient reduction fund is available for landowners in the Rotorua surface water catchment. The fund is for taking action on your farm to improve your land and reduce nutrients to LakeRotorua. Applications close on Tuesday 31 May 2011.

The Lake Rotorua Nutrient Reduction Fund is a voluntary initiative being carried out by Bay of Plenty Regional Council (BOPRC). The aim of the fund is to ‘buy’ reductions in nitrogen losses achieved by landowners through changes in land use or management. The funds will be allocated on a best value for money or cost effectiveness basis. The funds will be allocated on a ‘best-value for money’ or cost-effectiveness basis.The lower the funding required ($/kg N/ha/year), the more competitive the application will be for funding.Applications will be evaluated by a panel and only information from successful applications provided to BOPRC.

While the focus of the fund is reductions in nitrogen, subsequent funding rounds (if any) may include other environmental improvements such as phosphorus losses.BOPRC is asking applicants to provide other environmental information currently included in the OVERSEER®nutrient budgeting model.

Can I apply?

All landowners in the Rotorua surface water catchment (Māori or fee simple title) who have an approved BOPRC “Rule 11” nutrient benchmark are eligible to participate in the fund.

When does the Fund start and finish?

The fund opens on 18 April 2011and all applications must be submitted to BOPRC by 5pm on Tuesday 31 May 2011 or post-marked 31 May 2011 for mailed bids.

Will there be future funds?

BOPRC will evaluate the benefits of the fund approach and decide whether to conduct additional funding rounds. However, the terms and conditions for any subsequent funds may vary from the terms and conditions of this fund.

Who can I talk to about the Fund?

Three free hours of independent farm advice is available to the first 20 applicants to help with the fund application and process. The total cost of farm consultant time will be refunded to successful applicants of the fund.

For a list of independent farm consultants, please contact Roz Perry at Bay of Plenty Regional Council on 0800 884 881 ext: 7577, or email

The list can also be found on (add website URL)

Contact:

Roz Perry

Bay of Plenty Regional Council

Phone 0800 884 881 ext: 7577

Email:

Fund Process

Timeframe / Action / Helpful Hints
18 April 2011 / Application pack send to eligible landowners
Decide what you are going to do / Explore your options to reduce nutrients from your property,
Contact an independent farm consultant to discuss and work through your options / Changes in nitrogen leaching are estimated using the OVERSEER® nutrient budgeting model.
BOPRC also allows gorse removal, which is not included in OVERSEER®, as an acceptable option.
Prepare your application / Complete the application form. The following information must also be included in your application:
  • Supporting Overseer files
  • Approved nutrient benchmark
  • N Block reports for the proposed land use or management change
If gorse removal forms part of your proposal include:
  • Supporting calculations
/ For a list of independent farm consultants please see (add website Url), or contact Roz Perry on 0800 881 884 ext 7577, or email
Refer to the Frequently Asked Questions section for more information on gorse calculations.
Submit your application
31 May 2011 / All applications to the fund must be received by 5pm on Tuesday 31 May 2011 at the Bay of Plenty Regional Council office, Whakatane.
You will be notified once your application has been received. / Fund applications can be mailed or emailed.
Mailed applications need to be post-marked for 31 May 2011.
Application Assessment / Applications will be assessed by a panel.
All personal details will be removed for the initial assessment of applications.
Successful applicants / All successful applicants will be notified by 30 June 2011.
Contractual agreements will be negotiated and signed between landowners and BOPRC.
Contract / Contractual agreements will be negotiated and signed between landowners and BOPRC.
Annual audit / Annual reports and auditing will be required for the length of the contract. / Refer to the Frequently Asked Questions section for more information on the audit requirements.

Frequently Asked Questions

Who is eligible to apply for funding?

All landowners in the Rotorua surface water catchment (Māori or fee simple title) who have an approved BOPRC “Rule 11” nutrient benchmark are eligible to apply for funding.

The nitrogen benchmark is the average nitrogen loss from a property between 1 July 2001 and 30 June 2004.

How do I determine my nitrogen losses?

Nitrogen losses associated with changes in land management or land use are estimated using the OVERSEER®nutrient model version 5.4.9. If your 2001-2004 benchmark was calculated with an earlier version of OVERSEER®, your benchmark will need to be re-run with version 5.4.9, using the same input information. This is to ensure that the benchmark and proposed actions can be compared.

What types of actions should I consider?

Consider all actions, or combinations of those that have a lower nitrogen leaching level than your nutrient benchmark.

The options that are automatically eligible for the fund are those practices and land uses currently included in OVERSEER® version 5.4.9. OVERSEER® includes the following land uses:

  • Pastoral: dairy, sheep, beef, deer
  • Horticultural
  • Crops: forages, grain, green manure, seed and vegetables
  • Trees: native and plantation

Within pastoral farm systems, nitrogen loss reductions may be achieved through actioning one or several of the following OVERSEER® management options:

  • stocking rate and stock type / mix
  • fertiliser management including rate and timing
  • nitrogen inhibitors
  • low nitrogen imported feeds
  • wetlands
  • feed pad, standoff or loafing pads
  • wintering pad or animal shelter
  • effluent management

You may wish to consider a mix of actions in order to meet your needs and optimise the reduction in nitrogen losses on your property. Longer lifetime and larger reductions in nitrogen losses are likely to be more competitive applications in the fund.

What if I am interested in removing gorse which is not specifically covered by the OVERSEER® model?

BOPRC considers that mature dense gorse leaches 50 kgN/ha/yr, with lesser amounts from less dense or less mature gorse. Converting gorse to other uses, especially native bush or plantation forestry, can therefore provide large reductions in nitrogen losses.

If you intend to remove existing gorse stands on your property, provide information in your application on the gorse area, maturity/density and the alternative land use with supporting calculations on the reduction in nitrogen losses. Further information go to

How do I estimate my reduction in nitrogen losses?

The reduction in your nitrogen losses is the difference between the nitrogen leached in your nutrient benchmark and the nitrogen leached from the action (s) you are considering.

Nitrogen leaching values are found in the Block N reports in OVERSEER®. As with the Rule 11 benchmark assessment, it is critical that the alternative option is assessed on a “whole of property” basis so that reductions in one area are not offset by increases in other parts of the property.

What minimum nitrogen loss reduction criteria apply?

The reductions in nitrogen losses from your actions should be at least 10% less than your approved BOPRC “Rule 11” benchmark on a whole property basis.

Why is other environmental information being asked for?

Many changes affect not only nitrogen losses but other aspects of the environment. For instance, afforesting pastoral land may reduce nitrogen and phosphorous losses, decrease greenhouse gas emissions, increase carbon sequestration (positive benefits), and reduce water yield (negative benefit).

To begin to understand the interaction between nitrogen losses and some other aspects of the environment, other related information for the proposed actionsare being requested in the fund application.

At some point in the future, further funds may consider wider environmental impacts. However, for this fund only the reduction in nitrogen losses is being considered.

What other environmental information is needed and where do I find it?

At this stage the following environmental information found in the OVERSEER® reports is being requested. They include:

  • Changes in greenhouse gas emissions (kg CO2 equivalents/ha/yr). This information is found in the “Farm” greenhouse gas report in OVERSEER® and includes:
  • methane from animals
  • nitrous oxide (N2O) emissions (excreta & effluent and nitrogen fertilizer)
  • carbon dioxide (CO2) from lime
  • fuel & electricity use

(Note: CO2 data from N fertilizer is not being requested as this is the emissions associated with producing the fertilizer not its application).

  • Change in phosphorous losses (kg P/ha/yr and total Kg P/yr).The total phosphorous leached in runoff can be found by clicking on the “total P leached/runoff” tab in the “Farm” phosphorous report.

The per-hectare P losses in OVERSEER® are best calculated by dividing the total phosphorous leached by the farm area.

Where can I get helpfor myfund application?

Three free hours of independent farm advice is available to the first 20 applicants to help with the fund application and process.

The Bay of Plenty Regional Council has contracted independent farm consultants to help landowners determine the types of land use or land management changes that could be considered for this fund. These consultants can also help with the assessment of the nutrient losses associated with these practices.

The total cost of farm consultant time will be refunded to successful applicants to the fund.

For a list of independent farm consultants, please contact Roz Perry at Bay of Plenty Regional Council on 0800 884 881 ext: 7577, or email

The list can also be found on (add website URL)

How do I calculate how much funding to apply for?

The total funding requiredis the amount of money you wish to receive for undertaking your proposed action (s). Some points you may like to consider when determining amount are:

  • Impact on farm production, costs, profitability and land values
  • Alternative income streams e.g. carbon forestry if relevant
  • Assets to be purchased or sold
  • Changes to business diversity, flexibility, risk, training and skill sets

If you want to know the sum of future costs and benefits from your proposed actions, measured in today’s dollars, you can ask a farm consultant for advice. It is sometimes called “net present value”.

How do I compare nitrogen reduction options that have different lifetimes?

Some nutrient reduction options have longer lifetimes than other options. For example, a stock shelter has a life of approximately 15 years while changing your stocking rate is an annual investment. Given stock shelters are more expensive to implement than a change in stocking rates, a direct comparison is not appropriate.

To account for the different lifetimes, the more permanent changes should be annualised by the life of the option. For permanent reductions 30 years should be used. In all likelihood longer-term options will have more competitive bids.

What is included in my fund application?

The fund application includes:

  • completed application form
  • OVERSEER®version 5.4.9 “Block N” reports for your BOPRC approved nutrient benchmark and the actions you are wishing to submit an application for. If you don’t have the OVERSEER® reports for your approved nutrient benchmark, the documentation provided by BOPRC for your benchmark is sufficient.
  • If gorse removal is part of your application, include all calculations to support the reduction in nitrogen losses from gorse removal.

Additional OVERSEER® information may be requested by BOPRC to verify the reductions associated with your fund application should any discrepancies or inconsistencies in your applicationbe found.

Who will assess the applications?

BOPRC will appoint a panel to assess all fund applications. The panel will make recommendations on the successful applications to BOPRC who will follow up with the successful applicants to finalise the contractual arrangements.

How are successful applications selected?

Successful applicationsare those that provide the ‘best value for money’ or are the most cost-effective to reduce nitrogen leaching. Cost-effectiveness will be based on the cost of reducing N leaching on an annual basis. This is calculated by dividing the amount of funding being applied for by the total reduction in nitrogen leaching estimated from your actions. The lower the proposal($/kg N/year), the more competitive your application will be for funding.

Your past compliance record with other BOPRC and Rotorua District Councilrequirements will also be taken into consideration, and clarification sought from you where relevant.

How will I be paid?

Fund payments will be made once the contractual obligations of the landowner have been met. An initial site assessment by BOPRC staff will determine if the contractual obligations have been fulfilled. Payment of funds will be made if the BOPRC is confident all contractual obligations of the landowner have been met.

Negotiation may be entered into regarding the payment process with the BOPRC. Any changes to the payment process are at BOPRC’s discretion.

What does the contractual agreement contain?

The contractual agreement will be between BOPRC and the landowner. The agreement will include:

  • Total and per hectare reduction in nitrogen losses purchased (kg N and kg N/ha)
  • Funding provided for the reduction in nitrogen losses ($/kg N/yr)
  • Total funding ($)
  • Actions being implemented to achieve the reduction in nitrogen losses
  • Date when action need to be in place.
  • Number of years the actionswill be in place for
  • Encumbrance details, if any (there will be no encumbrances on Māori land)
  • Compliance requirements – submission of an annual nutrient management plan for the life of the agreement
  • Consequences of non-compliance

A copy of a draft contractual agreement can be obtained from BOPRC. Please contact Roz Perry at Bay of Plenty Regional Council on 0800 884 881 ext: 7577, or email

When will contracts be signed?

All contracts with successful fund applicants will be signed by 30 June 2011. The date when the actions must in place will be stipulated on the contract. For most applicants, this is anticipated to be phased in over 1-2 years.

Will there be an encumbrance placed on my land?

When an action is being funded (and paid for by BOPRC) then the agreement is in place for the periodequal to the length of time applied for in the fund application. For example, if you are installing a stock shelter (e.g. a Herdhome®) with a lifetime of 15 years and this is what you have indicated on your fund application form then the agreement will operate for 15 years. Longer-term options may have a separate covenant or memorandum of encumbrance placed on them, while short-term options may have all details contained within the contract.

There will be no encumbrances on Maori land. A contractual agreement between the parties will be entered into.

Are the agreements tied to my land title?

All memorandums of encumbrances are tied to the certificate of title on the land.

What are my obligations if I am successful?

Landowners must comply with all contractual obligations and provide annual nutrient management reports for the previous 12 months. If unforeseen circumstances arise that affect nitrogen losses, the landowner must contact BOPRC immediately and remedial actions must be taken to reduce nitrogen loads to the contracted level.

What is contained in a nutrient management report?

Nutrient Management Reports (NMPs) should be consistent with fertiliser industry guidelines found at:

NMPs are based on OVERSEER® and include information on land use(s), stocking rates, fertilizer/manure management, nutrient reduction practices, total nitrogen loads, and per hectare nitrogen loads.

How will the agreements be monitored?

All successful applicants will have an initial site assessment by BOPRC staff to determine if the contractual obligations have been fulfilled.