Damien O’Connor Criticises Budget 2026 as ‘Miserable’ for Rural New Zealand
A miserable budget that didn’t deliver much for anyone.
OPINION: It appears the only people surprised by plummeting levels of rural confidence are the Government and Ag Minister Damien O’Connor.
For months we have seen an endless stream of reports – from Rabobank, BNZ, ANZ, NZIER – all depicting a growing lack of confidence and concern in rural New Zealand.
Only last month, an open letter was written to the Government by an agricultural consultancy head, Chris Garland, outlining why farmer morale is at an all-time low. Garland, of Baker Ag, called for more consideration for the rural sector’s lot in the face of ever more onerous regulation.
“This Government’s approach to environmental policy is undermining the mental health and wellbeing of the pastoral sector,” he explained.
Showing just how out of touch O’Connor is with the current feeling in the rural heartland, his response to the letter was a ridiculous tweet blaming the rural media and farm advisors for the current rural malaise.
“If farm advisors and rural media weren’t so keen to repeat negative political rhetoric farmers might feel appreciated,” he claimed.
Really, minister? Your answer is to blame the rural media but you need to take a closer look in the mirror.
O’Connor and his Government should be basking in the glory of strong commodity prices and a positive outlook for the primary sector. Instead the Government is confronted with a rural sector that is as worried and despondent as during the reforms of the Rogernomics era in the mid-1980s.
In the latest Rabobank survey, farmers overwhelmingly cited Government policy and intervention as the key reason they expect the agri economy to deteriorate during the next 12 months. The bank described this as: “a level never seen before in the history of this survey”.
The two main Government policies causing the most worry in rural NZ are the impending Zero Carbon Bill and how agricultural emissions will be treated, and the proposed amendments to NZ’s freshwater regulations.
Instead of lashing out at the rural media and others in the sector for relaying exactly how farmers are now feeling, Damien O’Connor should take ownership of his Government’s actions and polices as the real reason for the waning levels of confidence down on the farm.
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.

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