The Crown Pastoral Land (Rent for Pastoral Leases) Amendment Act has passed its third and final reading in Parliament.
Under the previous system the leases were determined on land value.
The new system will abandon that concept and instead consider the earning capacity of the property under a pastoral lease.
Land Information Minister Maurice Williamson says the new system is robust, fair and easier to administer.
High country farmers also consider the new system to be fairer and more transparent.
Opposition parties, however, say it will allow some farmers to get land cheaply and then sell it on at a profit.
Labour says it's another example of how the Government rules for a very narrow subset of New Zealand.
The new system will be in place by the end of the year.