Measuring the cost of environmental compliance for Waikato dairy farmers - a survey approach

The link between dairy farm systems and cost of environmental compliance is not always clear. A survey of Waikato dairy farmers was conducted to establish the real (non-modelled) cost of compliance with environmental regulation in the region. Quantitative and qualitative data were gathered to improve understanding of compliance costs and implementation issues for a range of Waikato farm systems. The average oneoff capital cost of compliance determined through a survey approach was $1.02 per kg milksolids, $1490 per hectare and $403 per cow. Costs experienced by Waikato farmers have exceeded average economic farm surplus for the region in the past 5 years. As regulation increases there are efficiencies to be gained through implementing farm infrastructure and farm management practice to best match farm system intensity. Keywords: Dairy, compliance, farm systems, nitrogen, Waikato