Ag sector still a ‘shining light’ as farm pay growth levels off

He says migrants still make up only a small percentage of the farming workforce.

He was commenting on the findings of a new report that shows farm worker pay growth has levelled off after a post-pandemic period of rapid growth.

The 2026 Federated Farmers-Rabobank Farm Remuneration Report shows the average salary for a farm worker increased by $1,367 to $72,778, or a weighted average rise of 3% across 13 job positions.

However, that is well down from the average annual salary rise of 13%, and a weighted average of 17% for sheep and beef farm roles, between 2022 and 2024.

The report says the slowing in pay rises in the last two years is consistent with broader labour market trends, with wage growth across the economy typically 2-4% annually.

Dean, who is also Feds' employment spokesman, says increases have been higher for some roles.

"For example, the average salary for a dairy farm assistant rose to $63,359 this year, a rise of 5%.

"Wages for an arable farm machinery operator jumped a massive 30% to $82,651."

The report collated results from a survey of 427 farm employers covering nearly 1,500 employees.

Migrant Workforce Remains A Minority

Dean told Rural News that about 75% of dairy farm assistants are New Zealanders and only about 16% are on a visa - and about half of those are on working holiday visas and essentially only here for the spring rush.

In the more senior dairying roles such as herd manager and assistant manager, Dean said migrants make up a higher percentage, probably because Kiwis have greater opportunities to progress into ownership roles.

"If you are on a work visa, you cannot own a business in New Zealand. That means that in the dairy sector, you can't go into contract milking or variable order share milking, until you've become a permanent resident, which generally takes five or six years."

Strong Outlook for Ag Sector Jobs

Bruce Weir, Rabobank general manager for country banking, says despite a relatively modest lift over the last two years, the sector's recent strong performance makes it an attractive option for young Kiwis.

"The agri sector has performed really strongly over the last 18 months and has been the shining light of the New Zealand economy," he says.

"The sector's long-term outlook remains positive, and the strong investment we're currently seeing should flow through to new job opportunities in the years ahead."

However, Weir says ongoing salary growth is also essential to ensure the sector continues to entice the next generation into agri careers.

"Remuneration matters to young people, and attracting strong talent will depend on on-farm salaries keeping up with - or surpassing - the wider employment market."