Understanding the NPS-HPL
In recent years New Zealand has seen growing concerns about the loss of high-quality agricultural land due to urban development and lifestyle block subdivisions. In response, the government introduced the National Policy Statement for Highly Productive Land (NPS-HPL), which came into effect on 17 October 2022. This policy aims to protect the country’s most fertile and versatile land for current and future food production.
But what does this mean for landowners? Let’s break it down.
HPL refers primarily to Land Use Capability (LUC) classes 1, 2, and 3, which are considered the most suitable for growing food due to their soil quality, climate, and other physical characteristics.
The main goals of the NPS-HPL are to:
Protect highly productive land from being built over for housing or commercial use.
Promote sustainable land use and ensure this land remains available for primary production (farming, horticulture, etc.).
Direct urban expansion away from HPL wherever possible.
If you own land that falls under LUC 1–3, one of the biggest impacts is that it may become harder to subdivide or develop your land for non-productive uses, such as residential housing or commercial activities.
The NPS-HPL is however, somewhat flexible, and there are exemptions that allow for development.
What Should Landowners Do?
Check your land classification: Find out if your property is LUC 1–3 using local council maps or Land Information New Zealand tools.
Review council plans: Stay informed about changes to your district plan and how they may affect land use or development potential.
Talk with Us: If you're planning to develop your HPL land, you can consult us to advise you around the ins and outs of the NPS-HPL. Our agricultural and resource economists have extensive experience in this area and can advise you on the best way forward