Farmer Confidence Soars to 8-Year High as Government Reforms Bear Fruit

In a resounding endorsement of New Zealand’s agricultural direction, farmer confidence has surged to its highest level in eight years, marking a pivotal turnaround in rural sentiment since the new Government assumed office. According to the latest Federated Farmers Confidence Survey, the sector has rebounded strongly—with confidence rising from a dire -66 percent just months ago to a robust +33 percent in July 2025.

Minister of Agriculture Todd McClay has attributed the transformation to a combination of farmer resilience and the Government’s decisive policy reforms aimed at revitalizing the country’s primary industries. “This is a clear sign that the Government’s pragmatic approach is working, and that our farmers—360,000 strong—are once again optimistic about their future,” said McClay.

Reversing the Decline Under Labour

McClay didn’t mince words in criticizing the previous Labour Government, accusing it of implementing anti-farmer policies that eroded rural trust and dampened investment. “The last government’s war on farmers left the sector disillusioned and burdened by unnecessary red tape,” he said. “Today’s result shows that war is over.”

Key Survey Insights: Profit, Productivity, and Mental Health

The July survey revealed strong gains across several critical indicators:

• Profitability: A record-breaking two-thirds of farmers reported they are now making a profit—the highest level ever recorded in the survey's history. This signals a strong financial rebound and a promising outlook for reinvestment in rural enterprises.

• Productivity Forecasts: A net 23 percent of farmers expect increased production over the next 12 months, showcasing growing confidence in operational expansion and innovation.

• Mental Health: Perhaps most encouragingly, reports of stress and mental health pressures among farmers have dropped significantly. This is seen as a key outcome of reduced regulatory uncertainty and improved financial conditions.

Policy Changes Driving Optimism

Minister McClay emphasized that the policy reset is central to the optimism taking root in the sector. Key initiatives include:

• Replacing the Resource Management Act (RMA): The Government is overhauling the RMA, long criticized for its complexity and obstructive nature, to allow for more streamlined and farmer-friendly land use planning.

• Amending National Directions: The Government is also revising National Policy Statements, including the National Policy Statement for Freshwater Management (NPS-FM), to align better with practical on-farm realities while maintaining environmental integrity.

• Launching a Rural Wellbeing Fund: A new contestable fund has been set up to support rural communities with targeted investments in mental health, connectivity, and local development.

McClay noted, “Our focus is on giving farmers the tools to do what they do best—lead the world in producing high-quality food and fibre. The latest data confirms that our approach is returning value to the farm gate.”

Towards Doubling Export Value

This rise in confidence also aligns with the Government’s ambitious 10-year goal of doubling New Zealand’s export value—a mission heavily reliant on a thriving rural economy. The Minister believes this latest shift in sentiment is a solid step in that direction. “We’ve laid the foundation, but there’s still more to do,” he added, pointing to ongoing work in reducing compliance burdens and accelerating infrastructure upgrades.

A Bright Horizon for Rural New Zealand

For now, the data paints a hopeful picture for the nation’s farmers, who are once again positioned to be a driving force behind New Zealand’s economic growth. As policies take root and rural voices regain prominence in policymaking, the country’s agricultural engine is humming back to life—resilient, profitable, and prepared for the future.