Damien O’Connor Criticises Budget 2026 as ‘Miserable’ for Rural New Zealand
A miserable budget that didn’t deliver much for anyone.
OPINION: It appears the only people surprised by plummeting levels of rural confidence are the Government and Ag Minister Damien O’Connor.
For months we have seen an endless stream of reports – from Rabobank, BNZ, ANZ, NZIER – all depicting a growing lack of confidence and concern in rural New Zealand.
Only last month, an open letter was written to the Government by an agricultural consultancy head, Chris Garland, outlining why farmer morale is at an all-time low. Garland, of Baker Ag, called for more consideration for the rural sector’s lot in the face of ever more onerous regulation.
“This Government’s approach to environmental policy is undermining the mental health and wellbeing of the pastoral sector,” he explained.
Showing just how out of touch O’Connor is with the current feeling in the rural heartland, his response to the letter was a ridiculous tweet blaming the rural media and farm advisors for the current rural malaise.
“If farm advisors and rural media weren’t so keen to repeat negative political rhetoric farmers might feel appreciated,” he claimed.
Really, minister? Your answer is to blame the rural media but you need to take a closer look in the mirror.
O’Connor and his Government should be basking in the glory of strong commodity prices and a positive outlook for the primary sector. Instead the Government is confronted with a rural sector that is as worried and despondent as during the reforms of the Rogernomics era in the mid-1980s.
In the latest Rabobank survey, farmers overwhelmingly cited Government policy and intervention as the key reason they expect the agri economy to deteriorate during the next 12 months. The bank described this as: “a level never seen before in the history of this survey”.
The two main Government policies causing the most worry in rural NZ are the impending Zero Carbon Bill and how agricultural emissions will be treated, and the proposed amendments to NZ’s freshwater regulations.
Instead of lashing out at the rural media and others in the sector for relaying exactly how farmers are now feeling, Damien O’Connor should take ownership of his Government’s actions and polices as the real reason for the waning levels of confidence down on the farm.
New Zealand dairy farmers are set to be the first in the world to receive access to a new digital physical milk pricing tool that enables them to fix the price for their physical milk.
State farmer Pāmu is opening its farm gates this summer in an effort to give the rural sector the opportunity to see how large-scale, multi-system farming is delivering productivity and profitability across New Zealand.
A five-year study has found that the cost of reducing emissions without technology may be significant and unsustainable for Northland dairy farmers.
DairyNZ says Waikato farmers need certainty on Plan Change 1, but they say that certainty must be matched with practical, workable rules and a clear transition that doesn't get ahead of the new resource management system currently under review.
While the Government has moved quickly to make commercial hauliers' lot easier during the current fuel crisis, they appear to be stuck in the creep box when it comes to the agricultural industry.
Waikato farmers have been told that the Government’s new planning system legislation and the region’s Plan Change 1 (PC1) “won’t mesh together very well”.

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