Budget 2026: Slim Pickings For the Rural Sector
In advance of the Budget, Finance Minister Nicola Willis put a clear damper on expectations and delivered accordingly.
The country’s biggest farmer lobby isn’t happy about the new Government’s decision to review and replace a controversial legislation on freshwater management.
Federated Farmers says replacing the National Policy Statement for Freshwater Management 2020 (NPS-FM) within two years is “less than ideal”.
The farmer lobby’s national vice president and freshwater regulations spokesman Colin Hurst notes that Federated Farmers has been calling for these rules to be urgently repealed.
In a message to Feds members today, Hurst says what they got from the Government was agreement to delay freshwater rules implementation until 2027.
“It will also work on changes to the national direction but this will take 18 to 24 months. This feels less than ideal. Simply pushing out the dates for implementation probably won’t be enough to have councils stop work on this, because the National Policy Statement requires councils to give effect to the regulations ‘as soon as practicable’. We also need clarity on how a rebalance of Te Mana o te Wai will be achieved.
“The Government announcement falls short of meeting the expectations of our rural communities. Federated Farmers will work constructively with the Government more on this next year to ensure freshwater rules achieve environmental improvements in a way that is practical and fair for farmers and rural communities.”
The Feds’ position will be awkward for Associate Agriculture Minister Andrew Hoggard, who is one of the key politicians spearheading the review of freshwater management rules.
Hoggard, a former Federated Farmers president, is a member of ACT, one of the three partners in the Coalition. ACT also campaigned hard on repealing an avalanche of regulations formulated by the previous Government against farmers.
In a statement this week, Hoggard said that work on the NPS-FM replacement will start immediately.
“This process is expected to take between 18 to 24 months and will include a robust and full consultation process with all stakeholders including iwi and the public.”
The Government says it will develop an approach that is fit for purpose and enduring.
While the consultation is ongoing, the government has announced it will extend the timelines for regional councils to notify new freshwater plans. Councils will now have until December 31, 2027 to align with the new NPS-FM.
In advance of the Budget, Finance Minister Nicola Willis put a clear damper on expectations and delivered accordingly.
Farmers should be cautiously optimistic as the 2026/27 season kicks off, says DairyNZ.
RaboResearch senior analyst Emma Higgins expects the 2026/27 dairy season to be another profitable one.
The new dairy season is kicking off with plenty of risks to the forecast farmgate price, both upside and downside, says ANZ agricultural economist Matt Dilly.
A potential showdown between the top two Federated Farmers leaders looms at the farmer lobby's annual meeting later this month.
FarmIQ Systems has developed a free land management app to help remove barriers to New Zealand farmers and growers adopting digital tools.

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