A Bill that changes the laws around Crown pastoral land leases passed its first reading in Parliament today.
Land Information Minister Maurice Williamson said it had widespread support from South Island high country farmers and ensured leases on Crown pastoral land were more fair.
"The present rent system, which is based on land value, is both unworkable and has often created unnecessary conflict between the Crown and lessees," he said.
"We developed this legislation in consultation with leaseholders and farm managers, as well as an independent peer review panel, and in consultation with environmental groups."
Under the Bill, leases will be subject to "earning capacity rents" and will be based on an objective calculation of how much a farmer is able to produce on the land.
Labour opposed the Bill, saying it benefited a very small number of people and was not a fair way of dealing with the leases.
The Crown Pastoral Land (Rent for Pastoral Leases) Amendment Bill passed its first reading 76-39 and was sent to the primary production select committee for public submissions.