$950k RIF Loan Backs Māori Trust’s Shift to High-Value Dairy Farming

Minister for Rural Communities Mark Patterson says the loan will help modernise the trust’s farming operation and drive regional economic growth.

A Māori trust near Hāwera is set to significantly lift farm productivity and create new jobs after securing a $950,000 loan from the Regional Infrastructure Fund (RIF) to upgrade critical on-farm infrastructure.

The investment will enable the Omuturangi 6E & 7A Ahu Whenua Trust to transition from passive land leasing to active, owner-led dairy farming, unlocking stronger commercial returns and long-term opportunities for its owners.

Minister for Rural Communities Mark Patterson says the loan will help modernise the trust’s farming operation and drive regional economic growth.

“The loan will support essential infrastructure upgrades that allow the trust to increase milking capacity, lift stock numbers and boost milk production and profitability by up to 25 per cent,” Mr Patterson says.

The trust administers 84 hectares of whenua Māori on behalf of 290 owners and will contribute an additional $120,000 to the project. A new dairy shed will replace ageing facilities that had reached the end of their economic life — without the upgrade, the land would have reverted to lower-value livestock grazing.

Māori Development Minister Tama Potaka says the project supports long-term aspirations for self-determination and skills development.

“In the longer term, the trust aims to self-govern and manage its whenua Māori more profitably, while using the farm to train its people in commercial farming,” Mr Potaka says.

Beyond benefits for landowners, the project is expected to deliver wider economic gains, with the trust engaging local contractors and suppliers during construction and expansion.

“This investment will have flow-on benefits for the wider community,” Mr Patterson says. “It’s about strengthening regional economies while supporting Māori landowners to realise the full potential of their land.”

Mr Potaka says the loan is a clear example of the RIF’s role in supporting Māori economic development where traditional finance options are limited.

“This investment provides capital that could not be secured elsewhere and supports sustainable regional growth and employment,” he says.

Construction is expected to begin shortly, with the new dairy shed operational later this year.

Other Māori land trusts and regional enterprises are encouraged to explore RIF opportunities to unlock productivity, build capability and drive long-term economic resilience.