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.
Farmers groups are welcoming the Government’s decision to exempt agriculture from an Emissions Trade Scheme (ETS).
Beef + Lamb New Zealand (B+LNZ) chair Kate Acland says they “have consistently argued that agriculture going into the ETS would be a disastrous outcome”.
“We welcome certainty about this being removed.”
Acland also welcomed the official disestablishment of the He Waka Eke Noa Primary Sector Climate Action Partnership.
“We withdrew our support for He Waka Eke Noa because of the significant impact this would have had on our farmers.
“While we are prepared to be part of a new group that discusses how to manage New Zealand’s agricultural emissions, any involvement will be with full transparency and discussion with our farmers. We will not allow this to be a repeat of the He Waka Eke Noa process.
“We are being very clear to the Government that our bottom line is that we do not support a price on agricultural emissions as a way of achieving reductions.
“Emissions reductions in the sheep and beef sector are already happening more quickly than needed.”
DairyNZ chair Jim van der Poel says the announcement is positive, following a huge amount of uncertainty for dairy farmers.
“New Zealand’s dairy farmers are among the world’s most GHG-efficient producers of milk, and inclusion in the NZ ETS could have shifted production to less-efficient producers offshore, hurting farmers, the economy and the country. That outcome would also increase global emissions,” he says.
“To remain internationally competitive, all paths forward must be grounded in a science-based approach. This will ensure a profitable and sustainable future for dairy – and for the rest of New Zealand.
“While there are currently no significant technologies to reduce methane emissions from New Zealand pastoral farms, our farmers continue to make strong progress towards measuring on-farm emissions, and we look forward to contributing to the government’s methane-reduction work. Methane emissions continue to reduce on-farm thanks to farmer action.”
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: While we're on the topic of lumberjacks, Biosecurity Minister Andrew Hoggard has no doubt used a chainsaw hundreds of…
OPINION: To a chorus of crying greenies, and not a minute too soon, the Government has moved to put the…