Farm confidence reflects strength of primary sector
New Zealand farmers report their strongest confidence in a decade, with record export earnings and reduced regulatory barriers driving sector growth.
Agriculture and Trade Minister Todd McClay highlights record farm profitability and export strength in the latest Federated Farmers’ survey. The survey shows 72 per cent of farms are profitable, with farmers’ economic outlook the strongest in nine years. McClay attributes this to reduced regulatory interference and farmers’ ability to focus on production. The Government’s policy of removing barriers is credited for the sector’s performance.
Food and fibre exports are forecast to reach a record $64.3 billion this year, including dairy exports of $28.6 billion and a 14 per cent rise in meat and wool exports to $14.1 billion. Farmers are using stronger returns to invest in resilience, with over half planning to increase on-farm spending and two in five aiming to reduce debt. The survey reflects confidence in the sector’s ability to sustain growth.
Farmers identify cutting red tape as the top Government priority, with 30 per cent citing it in the survey. The Government reports progress in replacing the Resource Management Act, simplifying freshwater farm plans, and adopting a risk-based regulatory approach. These changes aim to reduce duplication and improve practicality for farmers.
The Government highlights the recent passage of the India Free Trade Agreement as a key market-opening measure. Once fully implemented, the agreement will remove or significantly reduce tariffs on 95 per cent of New Zealand exports. While input costs remain a challenge, the Government states it will continue collaborating with farmers to address these pressures.