Boost for Bay of Islands as PGF cash aids Māori farming in Motatau,

A grant to a Whenua Māori farming operation in the Bay of Islands is aimed at improving the quality of its Wagyu cattle. Photo /File

The Government's Provincial Growth Fund has granted more than $1.5 million to two Far North Whenua Māori farming operations.

Regional Economic Development Minister Shane Jones said the investment would help the recipients increase productivity on their land and return a greater profit to iwi shareholders, and would also get money circulating in their communities and help Māori achieve greater levels of prosperity.

Tapuaetahi Incorporation, in the Bay of Islands, will receive $858,034 for remedial work and improvements to its 620ha of amalgamated land blocks.

Jones said poor-quality pasture had seen the incorporation receive less money for its Angus and Wagyu beef cattle than those from similar properties.

"The funding will allow necessary restoration and remedial work to increase the farm's productivity to lead to better-quality cattle," he said.

"This will lead to greater returns for its 365 shareholders, for whom it can make a real difference."

Work would include more than 15km of fencing to protect waterways, bush and erosion-prone areas, and a three-year intensive land development and pasture improvement programme.

Okaroro Incorporation's Whenua Whakatupuranga Project, at Motatau, will receive $658,000 to provide necessary infrastructure on 1496ha of remote stock land to increase productivity and stock numbers, the work including fencing, a road upgrade and riparian planting of 14km of waterways to protect water quality, control erosion and protect stock.

"Whenua Māori funding will enable Okaroro Inc to unlock the economic potential of its land much sooner to benefit its 260 stakeholders by accelerating its work programme and enabling them to invest in other areas on the farm earlier, such as fertiliser and water reticulation," Jones said.

"For Māori landowners, access to capital is challenging, as the special status of their land means commercial banks are less willing to lend to them.

"Through the Provincial Growth Fund we're in a unique position to be able to support these landowners. Any money we can pump into our regional economies right now through PGF funding can help offset the economic impact of the Covid-19 pandemic."

The Whenua Māori fund was announced in February last year to invest up to $100m in investment-ready projects to unlock the economic potential of Māori land, helping to address years of under-investment and build prosperity in the regions. The fund has allocated $33m to landowners so far.

Research released in 2013 found about 80 per cent of Māori freehold land was under-utilised or unproductive.