Government backs food & fibre sector’s success
Issued by Hon Todd McClay
What happened
Budget 2026 allocates $4.77 billion in baseline funding over four years to the Ministry for Primary Industries, including $109 million for wilding pine control, $437 million for agricultural emissions reduction technology, $266 million for the Primary Sector Growth Fund, and $40.5 million for farmer-led catchment groups.
What's at stake
- Who feels it
- Farmers, growers, agricultural businesses, farm employees, rural communities, and primary sector workers (approximately 1 in 7 NZ workers). Includes operators in wilding pine control, agricultural emissions reduction, soil and water catchment management, and primary sector growth projects.
- Money in play
- $4.77 billion baseline funding over four years to MPI. Breakdown: $109 million over 3 years (wilding pine control); $437 million over 4 years (agricultural emissions reduction technology); $266 million over 4 years (Primary Sector Growth Fund); $40.5 million over 4 years (farmer-led catchment groups).
- Timing
- Budget 2026 allocation effective from 01 July 2026 (start of FY 2026–27). All funding tranches committed over four-year baseline period to 30 June 2030. Wilding pine control funding over three years (01 July 2026 – 30 June 2029).
- How it works
- Budget 2026 baseline funding allocation to Ministry for Primary Industries (MPI) under the annual appropriations process. Funding administered through MPI operational and contestable grant programmes (Primary Sector Growth Fund, farmer-led catchment groups scheme).
- Key context
- Check eligibility criteria and application timelines for Primary Sector Growth Fund grants opening from 01 July 2026.Farmers and growers managing wilding pine affected land: monitor MPI announcements on control funding deployment and regional prioritisation.Agricultural businesses developing or adopting emissions reduction technology: track contestable funding rounds under the $437 million allocation.Farmer-led catchment groups: confirm group registration and land management plan requirements to access $40.5 million support scheme.Monitor MPI public announcements on regulatory reform outcomes linked to Budget 2026 baseline funding (cost-cutting, compliance reduction).Sector export targets: primary sector exports projected to reach $62 billion in calendar year 2026 — track actual performance against target.
- Wider effects
- Climate change mitigation (agricultural emissions reduction technology); environmental outcomes (wilding pine control, catchment management tied to water quality and biodiversity); rural resilience and wellbeing; regulatory reform agenda (red tape reduction); trade policy (New Zealand–India Free Trade Agreement market access).
Source on record
https://www.beehive.govt.nz/release/government-backs-food-fibre-sector%E2%80%99s-successTracked neutrally by LexNZ. Status reflects the primary source as of 5 June 2026. Not legal advice.
← Back to the tracker