Christchurch has an emerging and world-leading high-tech sector and Dalziel said the city aims to become known as a test bed for innovation.
"We want to be at the forefront of the space and advanced aviation sectors," she said.
"Our collaborative industry, strong high-tech manufacturing and agricultural sectors and open landscapes makes the city and surrounding region a drawcard for innovators nationally and globally to explore all we have to offer."
The challenge comes after a partnership between city council agency ChristchurchNZ and aeronautics and space giant Airbus.
Airbus Australia Pacific managing director Andrew Mathewson says New Zealand has a global reputation for innovation and "an approach to problem solving unlike anywhere else".
"We can't wait to see what ideas will come about as part of the challenge and how we can help solve a global problem," he said.
The ideas generated by the competition will have "real-world applications" for the agricultural sector, Research, Science and Innovation Minister Megan Woods said, along with spill-over benefits into other research and development intensive industries.
"Nearly half of New Zealand's greenhouse gas emissions come from agriculture, which is a central part of our economy," Woods said.
"It is absolutely vital that we leverage new technologies as we look for innovative solutions to global challenges like climate change."
On May 1, up to 20 "incubation participants" will be selected for a six-month programme where they will have access to Airbus data and expertise, mentorship from tech and agriculture specialists, and the use of testing solutions and guidance from Airways.
The challenge will culminate in national flight demos in Christchurch in October, with the winning team receiving a cash prize of $30,000, as well as start-up support and access to Airbus satellite data.