New Zealand farmers reach strongest position in a decade

New Zealand farmers are in their strongest position in a decade, according to the latest Farm Confidence Survey from Federated Farmers. Agriculture and Trade Minister Todd McClay noted that 72 per cent of farms are currently profitable, marking the highest level of farm profitability since the measure began.

Economic assessments from farmers are the strongest they have been in nine years. Food and fibre exports are projected to reach a record $64.3 billion this year, with dairy exports expected to hit $28.6 billion and meat and wool exports rising 14 per cent to $14.1 billion.

In response to the findings, the government is focusing on reducing red tape and simplifying regulations, such as freshwater farm plans. While farmers face challenges like rising input costs, many are using increased returns to build resilience, with over half expecting to increase on-farm spending and approximately 40 per cent planning to reduce debt.