Hon Todd McClay
Minister of Agriculture
Minister of Forestry
Hon Andrew Hoggard
Minister for Biosecurity
Hon Mark Patterson
Minister for Rural Communities
Hon Nicola Grigg
Associate Minister of Agriculture

The Government is sharpening its focus and support for New Zealand’s world-leading food and fibre producers through Budget 2025 – backing the growth and resilience of our largest and most Important sector.

Agriculture Minister Todd McClay says Budget 2025 confirms $4.95 billion in continuing baseline funding over the next four years for MPI to support farmers, growers, fishers, and foresters to lift on-farm productivity and profitability, strengthen rural communities, and drive higher returns at the farm and forest gate.

“This year alone, the food and fibre sector is forecast to contribute $56.9 billion to the economy, that’s why we’re focused on unlocking new global opportunities –from the UK and EU, to the Gulf, and India– while cutting red tape so producers can get on with the job.”

To further strengthen the sector’s resilience, Budget 2025 includes a new focus on driving growth and rural wellbeing through a series of targeted grassroots investments:

• $246 million over four years in a new Primary Sector Growth Fund (PSGF) to help lift food and fibre sector productivity, profitability, and resilience;
• $2 million over four years in a contestable rural wellbeing fund;
• $1m extra over four years for Rural Support Trusts and other organisations to support farmers and growers;
• $400,000 over four years in direct grants for New Zealand’s A&P shows;
• Ongoing support for catchment groups of $36 million over the next four years, through the Ministry for Primary Industries;
• $250,000 for the 2025/26 financial year for Rural Women New Zealand to boost its on-the-ground support for rural communities.

“These initiatives back the people behind the sector who make our rural economy tick.”

The new Investment Boost tax incentive will also improve cashflow and make on-farm and forest investments more affordable, allowing for Farmers and Growers to immediately deduct 20 per cent of the cost of new machinery or farm equipment, on top of existing depreciation rates.

Budget 2025 also continues our commitment to $400 million over four years with an additional $23 million carried over to accelerate the development and rollout of new tools and technologies to reduce emissions without closing down farms or sending jobs and production overseas – a key part of ensuring the sector is globally competitive into the future.

“When our rural communities do well, the whole country benefits. Budget 2025 is about ensuring our farmers and growers have the tools and support they need to succeed – not just for today, but for the long-term prosperity of New Zealand,” the Government’s team of Agriculture ministers, Todd McClay, Andrew Hoggard, Mark Patterson and Nicola Grigg say.

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