NZ Backs $143 Million Push to Boost Farm Productivity

The Government believes practical demonstrations are essential for encouraging wider adoption of new technologies and farming systems across the sector.

The New Zealand Government has announced support for six large-scale commercial projects worth a combined $143 million, with the goal of helping farmers and producers increase productivity through innovation, technology and more flexible land use. Prime Minister Christopher Luxon said the investment reflects the importance of the food and fibre sector, which contributes more than 80 per cent of the country's export earnings and remains one of the strongest drivers of economic growth.

The projects span a wide range of industries including dairy, sheep and beef farming, horticulture, forestry, aquaculture and whenua Māori enterprises. Funding will come from a partnership between government and industry, with the Government contributing $59 million and private sector partners investing a further $84 million. Officials say the projects will provide real-world examples of how new approaches can improve farm performance, increase returns and create new opportunities for rural businesses.

Innovation expected to unlock new growth opportunities

The Government believes practical demonstrations are essential for encouraging wider adoption of new technologies and farming systems across the sector. By testing innovative ideas on commercial farms and orchards, the projects are expected to provide valuable evidence for farmers, lenders and investors considering similar changes. Luxon said the initiatives are designed to show that combining innovation, investment and ambition can generate stronger financial returns while supporting the long-term success of rural communities.

Agriculture Minister Todd McClay said advances in science, technology and modern farming practices are creating opportunities for producers to improve productivity while reducing environmental impacts. He noted that regulatory reforms and efforts to reduce unnecessary compliance costs are also helping create an environment where businesses can invest with greater confidence. The projects will explore ways to improve the use of land and resources while responding to changing consumer preferences, evolving trade opportunities and growing competition in global markets.

Flexible land use could add billions to the economy

A recent report by Lincoln University and ASB Bank found that a combination of diversified land use, advanced technology and improved farming systems could generate an additional $10 billion for New Zealand's economy within the next five to seven years. Government leaders say that finding new ways to use land more efficiently will be critical as farmers face rising expectations around productivity, sustainability and market performance.

The six projects are expected to provide practical examples of how greater flexibility can create profitable pathways for farmers and growers while helping the sector adapt to future challenges. Officials believe the lessons learned could encourage broader investment across rural New Zealand and strengthen the country's position as a leading exporter of food and fibre products.

With government and industry sharing both the investment and the risks, the programme is being positioned as a major step toward building a more productive, innovative and competitive agricultural sector for the future.