Happier new year for primary sector
Export revenue for the primary sector is forecast to bounce back in the coming year – but still not back the high levels of 2022/23.
Farmers and rural communities are the backbone of New Zealand's economy. Over the past year, the Government has delivered practical reforms to reduce costs, cut red tape, provide certainty, and get Wellington out of farming. With 80% of all the goods exports coming from the primary sector and more than 359,000 Kiwis employed because of rural activity, farming, forestry, and horticulture remains a mainstay of NZ economic activity.
The Government's ambitious target of doubling exports by value over ten years is an opportunity to work with the primary sector to add value and deliver greater returns at the farm gate.
The Government has huge respect for our world leading farmers, growers, fishers and foresters. We will continue to partner with them to produce the high-quality, safe food and fibre international market's demand.
Our agricultural team - comprising myself, Biosecurity, Food Safety and Associate Minister responsible for Animal Welfare Andrew Hoggard, Rural Communities Minister Mark Patterson and Associate Minister responsible for Horticulture Nicola Grigg, are working hard to deliver for the primary sector.
The Government has acted decisively to reduce burdens on the primary sector, including:
- Introducing practical rules for on-farm water storage.
- Restoring common sense to regulations for intensive winter grazing and stock exclusion.
- Halving ETS charges for forest owners.
- Pausing the rollout of Freshwater Farm Plans.
- Repealing the burdensome Log Traders legislation.
The Government is committed to providing clarity on emissions, with actions including:
- Disbanding the previous government's failed He Waka Eke Noa partnership.
- Launching an independent review of methane targets.
- Passing legislation to remove agriculture from the ETS.
We're taking balanced steps to improve environmental outcomes, such as:
- Increasing investment in catchment groups to empower local decision-making.
- Establishing a Pastoral Sector Group to explore methane reduction solutions.
- Providing more funding to clean up debris on the East Coast.
To support our rural areas, the Government has:
- Increased the cap on the Recognised Seasonal Employer (RSE) scheme to bring in more workers.
- Launched a select committee inquiry into banking.
- Boosted investment in Rural Support Trusts.
- Supported a record number of graduate vets to bring essential skills to rural areas.
- Provided significant investment into animal facial eczema research.
Looking ahead, we are fixing freshwater rules and the RMA to give farmers more certainty. Key initiatives include:
- Limiting council notifications of freshwater plans and removing requirements for new Significant Natural Areas (SNAs).
- Introducing a replacement National Policy Statement for Freshwater Management by the end of next year.
- Passing an RMA amendment bill focused on primary sector needs, simplifying farm plan processes, and ensuring councils can consent discharges from farm activities.
This Government trusts farmers to deliver for New Zealand. We will continue to partner with them to ensure rural communities are supported, costs are reduced, and opportunities for growth are maximised.
