Damien O’Connor Criticises Budget 2026 as ‘Miserable’ for Rural New Zealand
A miserable budget that didn’t deliver much for anyone.
Agriculture Minister Damien O’Connor has got offside with the ag sector with the Government’s latest emissions reduction plan announcement.
Government moves on an emissions reduction plan for the primary sector has gone down like a lead balloon with a range industry organisations.
Agriculture Minister Damien O'Connor recently announced a number of measures: including plans to measure and price agricultural emissions at the farm level, confirmation of the split-gas approach and a commitment to set the price at the lowest level possible to meet reduction gains.
O'Connor claims the Government has listened in taking a balanced approach. He says in his meetings with sector leaders, they have reiterated their commitment to taking a collaborative approach on agricultural emissions through the sector partnership He Waka Eke Noa (HWEN).
"We hav shifted farm-level emissions reporting requirements into quarter 4 of 2024; emissions pricing won't start until two years from now in quarter 4 of 2025," O'Connor says. "Work will also get underway to allow scientifically validated forms of on-farm sequestration into the ETS, which can help reduce the cost to farmers."
O'Connor says overseas customers have set high reduction targets on emissions, which he describes as a tectonic shift in our export markets.
He believes that means that NZ farmers will have to reduce their emissions in order to sell to these people.
"The reality is our agriculture sector will have to adapt over the coming years and reduce emissions."
But the announcement drew a sharp response from National's agricultural spokesperson Todd McClay who says Labour is out of touch with farmers and has given up on the rural sector.
McClay claims that the Government has failed to make any progress on agricultural emissions over the last six years.
"They have reheated their tired, old plan which risks closing down up to 20% of sheep and beef farms by requiring farmers to pay for emissions from 2025," he says. "This is Labour's fourth agricultural emissions plan in 18 months. While Labour will sacrifice the economy, National has a plan to meet our climate change targets and keep farmers in busines through innovative new technology."
Farmgate lamb prices are down by 8%, beef cattle by 4.5% and farm expenditure up by 4.2%.
Kiwifruit growers are watchful but remain optimistic as concerns around the potential effects of the El Niño weather pattern this season.
Almond hulls sourced from Australian orchards may have the potential to help New Zealand cows reduce emissions, boost milk yield and lower input costs.
Striking a balance between meeting the needs of industry to speed up approval time for products but on the other hand ensuring that risks are properly assessed.
Surprised, humbled and quite thrilled. That’s the reaction of James Allen, one of the founding partners and now chief executive of AgFirst, on being made a life member of the Institute of Rural Professionals.