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Tuesday, 06 October 2026 07:55

Arable Sector Costs Are the Biggest Problem, Says FAR

Written by  Nigel Malthus
Dr Scott Champion Dr Scott Champion

Flat pricing in the face of significant increases in costs is the greatest problem facing the arable sector, says Foundation for Arable Research (FAR) chief executive Dr Scott Champion.

Champion recently acted as facilitator for an Arable Sector Forum that brought together FAR, Federated Farmers, the Ministry for Primary Industries and growers, to grapple with an exodus of farmers reportedly leaving the sector in search of better returns.

Champion told Rural News that all the key inputs - fuel, fertiliser, machinery, agrichemicals - had outpaced any gains on the product side.

"Some of those are very significantly beyond our control because of tensions in the Middle East or whatever it might be.

"We can't necessarily address those in the shorter term."

However, he was encouraged by the working relationships evident at the forum. As a smaller sector, everyone knew everyone else, and no one was trying to hide from the challenges, he said.

"The fact that people have come together and getting some energy and momentum into this conversation is really positive.

"I'm really encouraged by, number one, the recognition of the issues; and number two, the desire to do something about it and the willingness to actually move and try to move reasonably quickly."

A press release following the meeting said it identified five initial priorities for action and further engagement with the sector:

  • Addressing poor on-farm profitability and managing costs
  • Improving market intelligence and data to support on-farm decisions
  • Growing the partnership between the arable sector and the dairy and livestock sectors
  • Identifying opportunities to improve transport and logistics
  • Developing customer recognition of the benefits of New Zealand grown grains.

Associate Minister of Agriculture Mike Butterick, who attended the forum, says arable growers played a vital role in New Zealand's food and fibre sector and economy.

"Arable growers produce the grain, feed and seed that underpin livestock production, horticulture, food manufacturing, and pastoral farming systems across New Zealand.

"The Government recognises the strategic importance of the arable sector in driving the prosperity of our rural communities and the New Zealand economy.

"At the Forum, there was a real sense of optimism, with everyone committing to positive action and acknowledging that we can achieve more together.

"The Government continues to drive positive changes for the sector through significant and sensible reforms in resource and freshwater management, cutting red tape, and investing in innovation and climate-friendly initiatives.

"We're committed to continue working alongside the arable sector to create the right environment for a thriving, profitable, and resilient sector."

David Birkett, immediate past Federated Farmers arable chair, said the Feds were committed to supporting efforts to help drive the arable sector's long-term success and rebuild growers' confidence.

"The Forum enabled first steps towards supporting our growers to navigate challenges, strengthen financial resilience, and capture future opportunities."

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