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Tuesday, 09 June 2026 12:55

Budget 2026: Slim Pickings For the Rural Sector

Written by  Peter Burke
Finance Minister Nicola Willis put a clear damper on budget expectations and delivered accordingly. Finance Minister Nicola Willis put a clear damper on budget expectations and delivered accordingly.

In advance of the Budget, Finance Minister Nicola Willis put a clear damper on expectations and delivered accordingly.

Budget days used to be exciting events - mainly with people trying to guess whether the price of alcohol or tobacco would rise in price - but for many years, this one included, it was a boring affair.

Most of the main announcements were made in advance leaving the Minister to read her speech and the Opposition parties to pick holes in it.

$437 Million for Agricultural Emissions Technology

For the rural sector, the news of more money to deal with wilding pines came before the Budget.

Agriculture Minister Todd McClay was left to announce that $437 million will be spent over four years to accelerate the development, availability, and use of new tools and technologies to reduce on-farm agricultural emissions.

Also, $266 million over four years is allocated for the primary sector growth fund, and $40.5 million  - again, over four years - for farmer-led catchment groups.

Ongoing Support for the Ministry for Primary Industries

McClay says the Budget confirms $4.77 billion in baseline funding over the next four years for the Ministry for Primary Industries (MPI) to support the primary sector and protect the funding.

"We are working hard alongside farmers and growers to achieve more with less. Alongside investing in innovative technologies and land management initiatives, we're supporting farmers and growers to boost productivity and their long-term resilience," he says.

$400 Million for Climate and Infrastructure Resilience

The other item of interest to the rural community was the setting aside of $400 million to provide resilience to keep critical routes open during and after adverse weather events.

Some of the projects singled out for funding include SH2 Waioweka Gorge between Gisborne and Opotiki and the Awakino Gorge on SH2, north of New Plymouth.

Closure of these roads due to adverse weather has put a huge strain and cost on local people and businesses.

In the South Island, work to be carried out on SH60 the Takaka Hill road will also come as a relief to locals.

Infrastructure Minister Chris Bishop says this investment allows for the strengthening of many of the weak points in the roading network, aiming to do this before they fail again, reducing the cost of rebuilding them afterwards.

"These are roads that communities, freight operators and tourists rely on every day. When they close, the impacts are felt far beyond the immediate area," he says.

Sound Thinking - Feds

Federated Farmers has come out in support of the roading initiative, saying for some time they have been calling for more funding for rural roads and key regional freight and access routes.

Feds spokesperson on infrastructure Mark Hooper says the move is "sound thinking".

He says this is in line with the truism that a 'stitch in time, saves nine' and building better resilience ahead of the next flood or storm makes sense.

Hooper says the cost of repeated highway and rural road patch-ups quickly mount.

"We can't continue to see communities like the East Coast or Golden Bay cut off every time a major rain event occurs. Ultimately, however, if experience shows a route or piece of public infrastructure continues to be highly vulnerable to weather events, investigation and funding of alternatives if needed," he says.

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