Budget 2026 Backs Food And Fibre Sector

Budget 2026 Backs Food And Fibre Sector

Budget 2026 has backed the primary sector to boost returns and productivity, improve land management and resilience.

Agriculture and Forestry Minister Todd McClay said the government has been working hard alongside farmers and growers to achieve more with less.

“Strategic and targeted commitment of taxpayers’ money ensures the food and fibre sector has the backing it needs to generate the high-quality produce that feeds New Zealand and the world, supports communities and drives economic growth,” he said.

“Budget 2026 confirms NZD 4.77 billion in baseline funding over the next four years for the Ministry for Primary Industries (MPI) to support the primary sector and protect the frontline.”

Budget 2026’s key strategic investments include:

  • NZD 109 million over three years to supercharge efforts to tackle the spread of damaging wilding pines
  • NZD 437 million over four years to accelerate the development, availability, and use of new tools and technologies to reduce on-farm agricultural emissions
  • NZD 266 million over four years for the Primary Sector Growth Fund to invest in projects focused on increasing returns, productivity, and opportunities in the food and fibre sector
  • NZD40.5 million over four years to back the efforts of farmer-led catchment groups to improve land management practices

McClay added that Budget 2026 will back sustainable growth of the food and fibre sector, the largest export earner. Its exports are set to top NZD 62 billion this year, a record.

One in every seven people works in food and fibre, a successful sector means thriving communities, a growing economy and a prosperous New Zealand.

Alongside investing in innovative technologies and land management initiatives, the government will support farmers and growers to boost productivity and long-term resilience.

Like farmers and growers, the Government’s agriculture team of Ministers McClay, Andrew Hoggard, Mark Patterson and Mike Butterick have committed to using the resources available to efficiently support the sector and to fix the basics and build the future.

Budget 2026 builds on the National-led Government’s work, completing and progressing a suite of positive actions supporting the sector, including: cutting red tape and costs through regulatory reform; unlocking new market opportunities for the sector, such as through the New Zealand-India Free Trade Agreement; boosting rural resilience and wellbeing initiatives and partnering with industry to improve environmental outcomes.

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