Damien O’Connor Criticises Budget 2026 as ‘Miserable’ for Rural New Zealand
A miserable budget that didn’t deliver much for anyone.
Ag Minister Damien O’Connor has warned farmers that if they don’t take account of climate change in their production systems they could be jeopardising access to major markets.
He says customers worldwide expect producers to look at the implications of climate change. If they fail in this NZ could face more trade barriers in negotiations with the EU and UK especially.
“They are expecting us to be part of the climate change movement,” he told the Agricultural Climate Change conference in Palmerston North last week.
Farmers may not always get an extra dollar for doing this but must make some changes to be allowed to keep operating. However some of the changes may see farmers get paid more for the value they offer.
O’Connor concedes that some farmers find dealing with greenhouse gas issues scary, as do many people.
“Farmers are dealing day to day with climatic issues and uncertain pricing; so to add another layer of complexity with climate change obligations is a big concern. But we have to address that, giving farmers clear honest signals and then offering them pathways to try to address these things.”
O’Connor says farmers have been receiving confusing signals, but there are many young farmers out there, and older ones, who get it.
“They just want to know what they have to do to meet the obligations and they must get the clarity they seek via guidelines and advice.”
It’s important to ensure that if farmers make change they will be heading in the right direction, O’Connor says.
“We can’t expect them to keep chopping and changing on the basis of different science or different levels of knowledge.”
It’s important to make the Emissions Trading Scheme work for farmers, he says.
“It may not be simple but it has to be workable and pragmatic with better outcomes.”
When dairy manager Miriam Lauridsen learned the farm, she was joining held weekly health and safety meetings, she initially thought that was “a bit over the top”. Experiencing that culture changed her mind.
Nominations are open for the 2027 Fonterra Dairy Woman of the Year Award.
Keeping up with pasture moisture demands is likely to be the key challenge for dairy farmers during this season’s El Niño weather pattern, says Blue Skies Weather & Climate Services meteorologist Tony Trewinnard.
Farmers have until the end of this week to help shape DairyNZ’s future focus.
Wayne McNee, chief executive of AgriZeroNZ, has resigned and will leave the organisation on 15 January 2027.
The New Zealand dairy sector set a record in the 2025/26 season, producing more than two billion kilograms of milksolids for the first time.

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