NZIER report on compensation for transmission infrastructure

landowners is to do with the requirement that they are liable for damages to
transmission infrastructure on their land. 23
Generally the main cost imposed by transmission infrastructure is on the time of
farmers and farm workers. Standard operations, such as cropping or controlling for
weeds, can take significantly longer when people have to work around towers. The
electricity lines themselves can make it dangerous to touch or shift fences running
parallel with power lines. Additional pesticides are often needed around support
structures.
We spoke with 12 landowners and two land valuers. The following is based on their
assessments of the additional costs imposed by transmission infrastructure. As such,
these figures should be considered as indicative rather than precise. We welcome
further information that would help us to refine these estimations.
There was a large variation in cost assessments between landowners even, at times,
when they were using land for the same purpose. This highlights the difficulty of
accurately assessing easement costs and supports the argument for providing a
means of adjusting compensation for the sake of efficiency.
4.2.1 Key operational costs
Irrigation
For many landowners the main imposition and additional costs resulting from
transmission infrastructure is caused by towers‟ impact on irrigation. Centre-pivot
irrigation systems are, according to many, the most time and water efficient means
for irrigating flat land. As such, they are used by many crop and dairy farmers.
The main saving from using centre-pivot systems is in time. They can largely be set
and left. They do not require constant supervision or adjustment. The next best
alternatives for irrigating land are significantly more labour intensive and generally
require higher operational skill and awareness. According to one landowner operator
mistakes are common when alternative methods are used to irrigate land with
towers, due to such methods being less robust than centre-pivot irrigators.
There are other significant advantages of centre-pivot irrigation systems. They are
considerably more efficient at applying water and nutrients largely due to reduced
evaporation or exposure to wind, (centre pivot systems release water directly above
crops or pasture). This in turn reduces the cost of water and minimise crops drying
out. Alternative systems require more water pressure, in turn requiring more power.
When there is a transmission tower in a field, centre-pivot irrigation generally can-not
be used. 24 The alternative for the farmer is to use a more time intensive less efficient
23 All landowners, as we understand it, may be held liable when they damage transmission
infrastructure. Forestry owners are particularly concerned as in many cases they are large
enough to be held accountable whereas a small landowner would not be.
24 Centre-pivot irrigation systems rotate around a field from a centre point. Generally they are not
able to be used in fields where there is an immovable object.
<strong>NZIER</strong> – Compensation for transmission infrastructure 32