The food and fibre sector is forecast to contribute $56.9 billion to the economy this year. Photo / Christine Cornege
The food and fibre sector is forecast to contribute $56.9 billion to the economy this year. Photo / Christine Cornege
Agriculture Minister Todd McClay says the Government is sharpening its focus and support for New Zealand’s world-leading food and fibre producers through Budget 2025.
McClay said Budget 2025 confirmed $4.95 billion in continuing baseline funding over the next four years for the Ministry for Primary Industries (MPI) to support farmers,growers, fishers and foresters.
He said the funding was to help lift on-farm productivity and profitability, strengthen rural communities, and drive higher returns at the farm and forest gate.
“This year alone, the food and fibre sector is forecast to contribute $56.9b to the economy,” McClay said.
“That’s why we’re focused on unlocking new global opportunities – from the UK and EU, to the Gulf, and India – while cutting red tape so producers can get on with the job.”
To further strengthen the sector’s resilience, Budget 2025 includes a new focus on driving growth and rural wellbeing through a series of targeted grassroots investments:
$246 million over four years in a new Primary Sector Growth Fund (PSGF) to help lift food and fibre sector productivity, profitability and resilience;
$2m over four years in a contestable rural wellbeing fund;
$1m extra over four years for Rural Support Trusts and other organisations to support farmers and growers;
$400,000 over four years in direct grants for New Zealand’s A&P shows;
Ongoing support for catchment groups of $36m over the next four years, through the MPI;
$250,000 for the 2025-26 financial year for Rural Women New Zealand to boost its on-the-ground support for rural communities.
“These initiatives back the people behind the sector who make our rural economy tick,” McClay said.
The new Investment Boost tax incentive would improve cash flow and make on-farm and forest investments more affordable.
This allows farmers and growers to immediately deduct 20% of the cost of new machinery or farm equipment, on top of existing depreciation rates.
McClay said Budget 2025 also continued the Government’s commitment to $400m over four years.
There was also an additional $23m carried over to accelerate the development and rollout of new tools and technologies to reduce emissions, without closing farms or sending jobs and production overseas – a key part of ensuring the sector was globally competitive into the future.
The Government’s team of agriculture ministers - McClay, Andrew Hoggard, Mark Patterson and Nicola Grigg - said Budget 2025 was about ensuring farmers and growers had the tools and support to succeed.
“When our rural communities do well, the whole country benefits.”
