substantiated and verified by local government( Waikato Council). Positive environmental product differentiation also occurs for commodities( timber) and regions( King Island produce).
The Hughes family or Dulacca with their Rangeland Quality Meat were recently BMP accredited with AgForce which is contributing to the sale of premium sirloin to the Regatta Hotel in Brisbane( AgForce, 2017).
Apx Table C. 3 Key Strengths and challenges of product differentiation as an incentive
Strengths
� Market already exists for beef which could reduce the administration cost
� If initiated by growers could be a way to engage with landholders who don’ t engage with extension
� Producers get financial reward from buyers( LDC budget could be used for other initiatives)
� Linked to BMPs or other initiatives
Challenges
� Slow to start and see rewards
� Requires very good documentation, sound metrics and verification( self-assessment, 2 nd or third party depending on the market) to achieve credible results
� No evidence that there will be a price premium for BBB beef at this point
C. 1.4
Voluntary conservation covenant
Conservation covenants are legally binding agreements between a statutory authority and a landholder. Typically, the only authorities able to offer conservation covenants are State government agencies and departments, and some local governments and not-for-profit organisations. Covenants can be common law agreements that last for a specified length of time or statutory agreements that are attached to the title of the land and bind future landholders. The covenant will specify certain conservation activities to be undertaken by the landholder, such as leaving remnant vegetation standing and / or actively managing the natural resources on the property through such actions as fencing and revegetation. A financial payment could be linked to the upfront signing of the covenant and ongoing payments for land management could be tied to the conservation covenant for a period of time and subject to meeting agreed outcomes( fencing a gully, for example).
The main benefit to conservation covenants is that they are voluntary and can protect important natural resources on private lands. Additionally, a range of NRM issues can be addressed in the one agreement. This instrument will attract landholders who are concerned about the future management of their properties.
The main disadvantage, however, is that the voluntary nature of the agreements may mean that key properties are not protected, and a coordinated landscape outcome may not occur. This approach is also not likely to engage landholders who have been difficult to engage with in the past.
There are a number of ways by which a conservation covenant can be placed on a property or portion of a property. One way a property may have a conservation covenant placed on all or a portion of it is through a revolving fund. Revolving funds operate through the purchase of a property, conservation covenant placed on all or a portion and the property is sold on with the covenant on title. There are a number of examples of revolving funds operating throughout Australia. Trust for Nature is probably the most well-known. There are already a number of
80 | Landholders driving change: Exploring new incentives