In this series, the team find a lesson in history for NZ ag.
Learning the boundaries of a new farm is a strange feeling. A fence line separates otherwise identical land and defines my area of responsibility.
Nature doesn’t understand boundary fences, as evident by the bush and rivers that sprawl through these manmade features.
Little to no economic value is assigned to these bush blocks and waterways when purchasing a new block, but the expectation to manage these areas is growing.
These areas of native bush and water bodies could be considered common assets as they are a shared resource for all New Zealanders.
The resulting effects of management, be that positive or negative, have a large impact on the wider community.
A simple example is water quality – many people value swimming in a clean river and drinking a healthy cup of water from the tap.
This situation sits in the long shadow cast by two seismic historical trends.
The first is the tragedy of the commons. This historical phenomenon occurs where individuals, acting in self-interest, overuse or deplete a shared resource to the detriment of the whole.
There are many historical examples related to agriculture. In medieval Europe, individuals would opportunely graze communal pastures. This system worked until every villager had a sheep, leading to overgrazed land and reduced productivity.
The second stems from a period of British history known as the Enclosures, when common land, open to all local people for grazing animal and growing crops, was consolidated into individually owned farms.
One motivation for this move to privatisation was to allow for increased productivity through private investment in land. Landowners had a direct incentive to improve their property because they reaped the full benefits of doing so.
Centuries later, we are grappling with challenge of how to balance individual responsibility and property rights with the collective good that comes from sustainably managed common assets.
We trade on our clean, green image, boasting some of the most accessible natural attractions, and recreational fishing resources that many envy.
The nation’s shared resources – its waterways, native bush, and agricultural lands – are under increasing pressure from both rural and urban demands.
Close to half the land area of New Zealand is used for food and fibre production and this is split across roughly 50,000 farms. Another one third is managed by the Department of Conservation, with the remaining 20% made up of other uses including urban areas.
Food producers manage their common areas with private funds and the Department of Conversation manages its area with under 1% of the government’s budget.
New Zealand also has an increasing urban population. Slightly more than eight out of 10 people currently live on less than 20% of New Zealand’s land area and all future growth is expected to come from the same urban areas.
The demands of our urban stakeholders cannot be lost as we meet the expectations of our international consumers, but expectations need to be rational given 80% of our natural resources are expected to be managed on a shoestring budget.
Modern solutions are required to solve these long-standing historical challenges. Some, such as catchment groups, are breaking new ground in managing common assets.
Others, like ecosystem services, are still in their infancy. Both require philanthropy and public funding due to the gap between what people say and what they are willing to pay for managing common assets.
Despite this, I remain hopeful for a market-driven solution that effectively aligns perceived demand with funding for those managing these shared resources.
Our boundary fences do not exist when it comes to managing common assets. Have a conversation with any food producer and you will see that they care about their land.
An unwritten rule for many is leaving the land in a better place than they found it, but farmers can’t be expected to shoulder the responsibility of managing these shared resources sustainably, particularly given contemporary financial and logistical burdens.
The right mix of regulation, education and incentives are required to finally break free of the “tragedy of the commons” and Enclosures scripts – and write something new.
