DairyNZ Urges Farmers to Plan for Higher Costs in 2026/27 Season
Farmers should be cautiously optimistic as the 2026/27 season kicks off, says DairyNZ.
DairyNZ says yesterday’s bipartisan support of the Zero Carbon Bill was a positive step forward for New Zealand farmers.
The Government Bill passed with near-unanimous support after National agreed to support the climate change law. It was supported by 119 of the 120 MPs: Act leader David Seymour voted against it.
DairyNZ chief Executive Dr Tim Mackle says farmers are pleased that the Zero Carbon Bill has managed to achieve a degree of bipartisan support that will give farmers certainty into the future.
“All the key elements of the Bill, including the establishment of a Climate Change Commission, a split gas approach for methane and the creation of carbon budgets have strong bipartisan support - and the support of the agricultural sector.”
Unfortunately, the same cannot be said of the methane reduction targets, he adds.
DairyNZ remain firmly opposed to the Governments methane reduction range of 24 – 47% as we believe it is out of step with what science requires and rural economies can sustain.
“This is not a scientific target, but a political one” Mackle added.
“We are encouraged that Minister Shaw (Climate Change Minister James Shaw) has indicated he is considering sending the methane target to the Commission to receive independent advice. DairyNZ very much welcomes this.
“It is important this is done quickly. The Commission is asked to recommend the first three carbon budgets, out to 2035, by early 2022. We need clarity on the methane target before this is done.
“DairyNZ has confidence that the Zero Carbon Bill puts in place the right institutional arrangements to eventually deliver a fair methane reduction target for farmers.
“We will be working with the Government and other sector bodies to ensure this happens.
“Farmers have never been afraid of the facts. They simply want a methane target that is fair and firmly grounded in the best available science, applied in a New Zealand context” Mackle concluded.
In advance of the Budget, Finance Minister Nicola Willis put a clear damper on expectations and delivered accordingly.
Farmers should be cautiously optimistic as the 2026/27 season kicks off, says DairyNZ.
RaboResearch senior analyst Emma Higgins expects the 2026/27 dairy season to be another profitable one.
The new dairy season is kicking off with plenty of risks to the forecast farmgate price, both upside and downside, says ANZ agricultural economist Matt Dilly.
A potential showdown between the top two Federated Farmers leaders looms at the farmer lobby's annual meeting later this month.
FarmIQ Systems has developed a free land management app to help remove barriers to New Zealand farmers and growers adopting digital tools.
OPINION: Reckless action by Greenpeace in 2024 forced Fonterra to shut down a drying plant for four hours, costing the co-op…
OPINION: The global crusade against fossil fuel is gaining momentum in some regions.