Budget 2025 Delivers $36M for Sustainable Farming via Catchment Groups

The New Zealand Government has announced a substantial new commitment to supporting the agricultural sector through a $36 million investment over four years, aimed at enhancing on-farm productivity and strengthening land and water management practices. The funding, unveiled as part of Budget 2025, will be delivered through the Ministry for Primary Industries (MPI) via its On Farm Support team.

Strengthening Farmer-Led Catchment Groups

Agriculture Minister Todd McClay emphasized that the funding will back catchment groups led by farmers who are already achieving measurable progress on environmental and productivity goals. A total of $4.3 million has been earmarked specifically for existing and emerging regional initiatives, with $2.8 million allocated in 2025/26 to provide continuity for six well-established groups and the New Zealand Landcare Trust.

“These catchment groups are not just ideas on paper. They are delivering tangible results—restoring water quality, rehabilitating land, and helping farmers adjust to changing climate and operational conditions,” McClay stated. “This investment gives these groups the financial certainty needed to maintain and expand their valuable programmes.”

The six established groups receiving continued support include:

• Thriving Southland – A leading collective that works across the Southland region to connect farmers with tools for sustainable land use.

• Rangitīkei Rivers Catchment Collective – A collaboration that promotes best-practice water and land management across river systems.

• Wai Wānaka – Focused on preserving the Upper Clutha catchment’s freshwater ecosystems.

• Hurunui District Landcare Group – A long-standing initiative supporting biodiversity and soil health.

• Eastern Plains Catchment Group – Working to mitigate erosion and nutrient runoff in eastern districts.

• King Country River Care – A grassroots network working to protect the integrity of local waterways.

Funding New Regional Projects for Greater Reach Associate Environment and Agriculture Minister Andrew Hoggard also highlighted new regional projects aimed at expanding the benefits of catchment groups into new areas. A combined $1.57 million is being dedicated to two innovative initiatives:

• Karamu River Catchment Collective will receive $900,000 to bolster the efforts of sub-catchment groups in the Heretaunga Plains. These groups are expected to focus on integrated land management strategies tailored to local farming realities.

• Piako Waihou Catchment Trust is being granted $670,000 to establish five demonstration sites that will showcase practical land-use solutions, such as wetland restoration, waterway enhancement, and the retirement of low-productivity land.

“These groups exemplify how local knowledge, when paired with government backing, can deliver scalable solutions for the environment and agriculture alike,” said Hoggard. “We’re empowering farmers to lead, collaborate, and innovate. After all, they know their land better than anyone else.”

Delivering Dual Gains: Productivity and Sustainability

The government's investment reflects a growing recognition of the dual challenge farmers face: increasing output to meet global food demand, while simultaneously protecting the natural resources their livelihoods depend on.

Catchment groups serve as community-level platforms for collective action, facilitating farmer-to-farmer learning and promoting sustainable practices adapted to specific regional conditions. This place-based approach ensures that solutions are not only scientifically sound but also socially and economically viable.

McClay reiterated that this is part of a broader vision for rural development: “We’re supporting a future-focused farming sector—resilient, productive, and environmentally responsible. This Budget investment will help get us there.”

Looking Ahead

As global markets and climate pressures intensify, the government’s commitment underscores the importance of community-led environmental stewardship and locally adapted solutions. Catchment groups are likely to remain central to New Zealand’s agricultural strategy, acting as catalysts for innovation, resilience, and long-term prosperity in rural communities.