Damien O’Connor Criticises Budget 2026 as ‘Miserable’ for Rural New Zealand
A miserable budget that didn’t deliver much for anyone.
Agriculture Minister Damien O'Connor has declared an adverse event for the Canterbury region amid flooding.
Agriculture Minister Damien O’Connor has declared an adverse event for the Canterbury region, unlocking Government support for farmers and growers.
“My decision to classify this as a medium-scale adverse event ensures funding of $500,000 for flood recovery measures,” O’Connor says.
He says the funding will help speed up the recovery of farming businesses, and includes wellbeing support and specialist technical advice.
“The money will be used for recovery grants, to enable the region’s three Rural Support Trusts to provide extra help to farmers, and for other flood assistance where needed.
“We will continue to assess whether further support is required as the full extent of the flooding becomes clearer.”
Approximately 400 millimetres of rain has fallen on parts of the region, creating widespread flooding and significant damage to property and the road network.
It’s putting further pressure on farmers who have been battling drought and we’re committed to helping them get through.
A state of emergency has been declared for the Canterbury region.
“Based on the advice I have received from Ministry for Primary Industries (MPI) staff based in the area, the scale of impact is beyond the communities’ ability to cope,” O’Connor says.
Other recovery measures being considered include an Enhanced Taskforce Green work programme to assist with clean-up and recovery, Rural Assistance Payments to help farmers with essential living costs, and flexibility through the Income Equalisation Scheme.
MPI is working closely with Civil Defence Emergency Management staff, industry groups and others to help with the recovery effort, including the animal welfare response.
“Support is available for farmers who are short of livestock feed, or who have had baleage and fodder crops washed away or damaged by floodwaters,” O’Connor says.
Despite near universal optimism in the rural sector, a panel of New Zealand’s leading food and agri minds caution that the sector must be intentional about its future path.
The dairy industry cannot rest on its laurels despite providing one in every four export dollars earned by the country, says DairyNZ chief executive Campbell Parker.
The Government is looking at intervening on behalf of Waikato farmers who face new regulations around agricultural land use while Resource Management Act (RMA) reforms are underway.
The country's second largest milk processor, Open Country Dairy, is building a butter plant at its Awarua site in Invercargill.
After 25 years it is the right time to step away, says Colin Glass, the retiring chief executive of New Zealand's largest private corporate dairying company, Dairy Holdings.
Politicians calling for New Zealand to withdraw from the Paris Agreement on climate risk damaging two of our gold-plated free trade deals.

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