Damien O’Connor Criticises Budget 2026 as ‘Miserable’ for Rural New Zealand
A miserable budget that didn’t deliver much for anyone.
The Government has set up a $500,000 fund to help farmers and growers recover from drought.
Agriculture Minister Damien O’Connor says the fund will allow for grants of up to $5,000 to be made available to farmers and growers in areas badly affected by the 2020 drought: all of the North Island, the Chatham Islands, Christchurch, Marlborough, Nelson, Tasman, Selwyn, Kaikoura and Waimakariri districts and regions.
Farmers and growers who apply for grants will have to prove their businesses have been negatively affected by the drought and that they derive at least 50% of their income from the property.
The money is to be used by farmers to access a range of advisory services and drought-related advice, including help with strategic planning, technical advice on soil, pastures, animal production and feed budgeting. Grants can also be used for land management and sustainable management techniques.
O’Connor says that as New Zealand rebuilds its economy, there is an opportunity to rebuild better than before the pandemic and factor in resilience for our productive primary sector. He says so far this year the Government has invested $17 million to help drought-stricken regions recover from what many are saying is the worst drought in living memory.
“Although there has been a bit of rain relief recently, it takes steady rain at the right time to get grass growing again.
“The flow-on effects of water shortages and low feed availability take a long time to fully recover from and some farmers will be dealing with the effects of this drought for a year or more. One of the unusual consequences of the drought has already started to be noticed by consumers – that being the paler colour of our butter. As the saying goes ‘you are what you eat’ and the same goes for cows,” he says.
O’Connor says NZ’s unique pasture-based farming system gives our butter a wonderful yellow colour but the shortage of grass and reliance on supplementary feed has meant our butter has started to turn white.
“A return to yellow will maintain our competitive advantage in our export markets,” he says.
The 2026 Holstein Friesian NZ Black & White Youth Auction has once again proven the strength of support behind the breed’s young people, raising $20,130 for the HFNZ Black & White Youth programme.
Westpac NZ has become the first New Zealand bank to receive approval from the Reserve Bank of New Zealand (RBNZ) to secure and leverage kiwifruit growers' Zespri shares.
Bank of New Zealand (BNZ) and Pāmu (Landcorp Farming Limited) have developed a new way for landowners to earn revenue from existing native forests.
Despite near universal optimism in the rural sector, a panel of New Zealand’s leading food and agri minds caution that the sector must be intentional about its future path.
The dairy industry cannot rest on its laurels despite providing one in every four export dollars earned by the country, says DairyNZ chief executive Campbell Parker.
The Government is looking at intervening on behalf of Waikato farmers who face new regulations around agricultural land use while Resource Management Act (RMA) reforms are underway.
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