20 May 2022

Agriculture to benefit from significant emissions reduction funding

3:37 pm on 20 May 2022

Hawkes Bay farming commentator and former agricultural trade envoy Mike Petersen says yesterday's budget is positive for agriculture.

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Photo: RNZ / Rebekah Parsons-King

In total the primary sector received $1 billion in funding. The bulk of it, $710 million was announced earlier this week to tackle agricultural emissions, including a Centre for Climate Action on Agricultural Emissions and accelerating carbon sequestration through forestry.

Petersen said the emissions reduction money is significant because it is the sector's biggest challenge.

A further $190m of expenditure was outlined yesterday. This included $118.4m for advisory services to support farmers, foresters, and growers and whenua Maori accelerate sustainable land use changes and lift productivity.

Forty million dollars will help transformation in the forestry, wood processing, food and beverage, and fisheries sector.

Just over $30m will help maintain and lift animal welfare practices.

Mike Petersen said this does not mean farmers aren't already looking after their animals.

"What it does say is we need to continue getting better in terms of animal welfare and expectations from consumers keep getting higher," he said.

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Hawkes Bay farming commentator Mike Petersen Photo:

The money for advisory and extension services he said was also significant.

"In the context of emissions reduction and encouraging farmers to adopt technologies as they become available is welcome," he said.

But the disappointing aspect is the negative commentary around the money going to the primary sector.

"It has been very anti-farmers and whether they're contributing to the budget numbers (financially).

"As farmers and growers we are contributing emissions charges, we're big users of energy, we're big users of fuel on farm and contracting, and of course we're tax payers at the end of the day too. So the commentary that farmers aren't contributing just isn't correct," he said.

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