Optimising land use to power rural productivity

A thriving food and fibre sector depends on lifting productivity through greater flexibility, and the Government is backing that future, Prime Minister Christopher Luxon and Agriculture Minister Todd McClay say.

"The food and fibre sector is the engine room of New Zealand's economy, delivering more than 80 per cent of our exports," Mr Luxon says.

"That's why we're investing $143 million in six commercial projects to show how we can further lift productivity and returns through innovation and greater land use flexibility."

The partnerships span dairy, sheep and beef, horticulture, forestry, whenua Māori and aquaculture, with the Government committing $59 million and the sector contributing $84 million.

"Together, these projects matter because they will demonstrate, on real farms and orchards, what is possible when innovation, capital and ambition come together.

"This is about building confidence for our farmers and producers, rural lenders and investors. To show proof that innovation can deliver growth," Mr Luxon says.

Mr McClay says this Government's sensible regulatory reform and cutting of red tape and costs, combined with the latest science, technology and farming methods provides the opportunity for strong returns with a smaller environmental impact.

"The National-led Government is committed to backing farmers and growers achieve their aspirations. Appropriate rules and regulation coupled with innovation ensures their ideas are not just pipedreams, but viable and profitable pathways.

"These six projects will provide the confidence they need to not only meet environmental outcomes, but respond to changing consumer demand, trade opportunities, and increasing competition in international markets.

"Greater land use flexibility results in prosperity through productivity, and enabling that is part of this Government's commitment to fixing the basics and building the future."

A Lincoln University and ASB Bank report found that adopting a mix of land use and new technology, science and systems could boost the economy by $10 billion over the next five to seven years.

"Greater land use flexibility results in prosperity through productivity, and enabling that is part of this Government's commitment to fixing the basics and building the future."