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Home / New Zealand

Why New Zealand needs to invest in young farmers now - Dr Jacqueline Rowarth

Jacqueline Rowarth
By Jacqueline Rowarth
Adjunct Professor Lincoln University·The Country·
30 Mar, 2025 11:01 PM5 mins to read

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New Zealand needs young farmers just as much as most other countries. Photo / 123RF

New Zealand needs young farmers just as much as most other countries. Photo / 123RF

Jacqueline Rowarth
Opinion by Jacqueline Rowarth
Adjunct Professor Lincoln University, and member of the Board of Directors of DairyNZ, Deer Industry NZ and Ravensdown, and of the World Farmers’ Organisation Scientific Council.
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THREE KEY FACTS:

  • The demand for sustainably produced food is increasing, creating opportunities for young farmers.
  • The Young Farmer of the Year competition highlights the importance of young farmers in the industry.
  • New Zealand lacks financial support systems for young farmers, unlike the EU’s tailored funding initiatives.

More mouths, more focus on high-quality nutrition, more concern about environmental impact.

The three together mean that the demand for sustainably produced food is increasing.

In turn, this means that the future for young farmers is bright – from soil through to saliva (food production to consumer trends and all the bits in the middle), opportunities abound.

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And there is a group of bright, motivated, and able people coming through, getting involved and spreading the word.

The Young Farmer of the Year competition epitomises the movement.

The regional finals have been held around the country, and the winners are knuckling into several months of hard work (on top of their day job) as they prepare for the grand final in July – this year being held in Invercargill.

In the olden days, the final was broadcast live on Saturday night.

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It was as much an icon as Country Calendar, and the evening quiz was a tense nail-biter across the nation.

People who competed in the 1980s and 1990s are now mature leaders in the industry; the competition set the foundation for their careers.

Everybody knew about Young Farmer of the Year and how important it was to the sector.

The sunset industry shadow had an impact, but the recognition of the importance of food enabled a resurgence of the Young Farmers Clubs.

They provide a hub for interaction among the young, including for visiting students, and they aren’t just for “rural dwellers”.

City clubs are growing in number and size.

Hamilton City Young Farmers members come from banks, environmental consultancies, accounting firms, universities, local farms, processors, and rural professionals.

Auckland City Young Farmers has a similar membership profile. Anybody with an interest and who is 30 or younger can join.

In the country, the clubs give a reason to have an evening off-farm.

For the overseas visiting students, they might provide a welcome time with people under-50 (the average age of hosts being somewhat over 50).

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This gives farming and food networks across the world.

Most clubs have activities with fundraisers (farm treks, silage-stack covering, picking up hay) or guest speakers.

The focus is social interaction and learning, and the more, the merrier.

The industry is involved through sponsorship of clubs and the competition because the young farmers represent the future.

Overseas, the recognition of the importance of young farmers and concern about succession and recruitment is also apparent.

The European Union, for instance, “is committed to supporting young people through tailored funding, training opportunities, and initiatives that encourage innovation and generational renewal”.

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Three per cent of each country’s initial Common Agriculture Programme funding for direct payments (before any transfers) is dedicated to young farmers.

Each country then decides how to use the funding: as complementary income support, start-up aid for new young farmers, or investment support.

The importance attached to the challenge of promoting generational renewal in farming is demonstrated by the fact that 22 of the 17 EU member states allocate more than the minimum required amount to support young farmers.

There is nothing like the EU system in New Zealand - and perhaps there should be.

In the past, suggestions have been made that Landcorp (now Pāmu) might play a role in assisting the young farmers into farm ownership.

The challenge, of course, is the size of an economic unit and affordability – but could the banks play a role?

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They have been offering first home loans with government support from KiwiSaver, but could they give favourable loans on farms in the same way that they have been favouring environmental sustainability loans?

The two new Dairy Industry Awards segments, the Fonterra and ASB First Farm Award and the ASB Alumni of the Year Award, will help some farmers on their journey to farm ownership.

Both awards offer the winner up to $1 million of ASB business term lending fixed at 1% per annum for three years, a deal that should be discussed as other banks may be encouraged to follow suit.

Or are there equity partnership deals that could allow both parties to benefit from changes in tax rates, as there have been in Ireland?

The financial aid programme there is aimed at people under-40, educated in agriculture and setting up their own farm for the first time (or up to five years before applying).

The young farmer can apply for support even if part of a group, as long as the applicant holds decision-making authority.

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Payments are made per eligible hectare, capped at 50ha, averaging around €175 per ha over five years.

At the current exchange rate that is $330 per ha basic support before other payments.

Add a fees-free bank loan and farmers under-40 have a good start towards their own farms.

New Zealand needs young farmers just as much as most other countries.

Their energy, motivation and commitment deserve encouragement, and the New Zealand economy will benefit.

If not Landcorp, what? Where do the banks fit? What can older farmers do to assist?

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The world agrees that it is difficult to send signals and financial assistance to the young in areas needed to sustain the populace, and New Zealand is behind in action.

That isn’t a good place to be.

It isn’t our customary position.

It’s time to move and do so rapidly.


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