Source: Radio New Zealand
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Farm work offers young people a path to higher pay more quickly than many other sectors, Federate Farmers says as it releases its latest farm remuneration report.
The 2026 Federated Farmers-Rabobank Farm Remuneration Report shows the average salary of a farm worker increased three percent across the 13 roles it tracks compared to 2024, to $72,778 a year.
A dairy farm assistant, the most common position on a dairy farm, had a five percent annual pay increase to an average $63,359.
Federated Farmers employment spokesperson Karl Dean said the smaller wage increases followed a period of significant growth.
“Average annual salaries in our sector jumped 13 percent between 2022 and 2024, with a weighted average rise of 17 percent for sheep and beef farm roles.”
Pay growth was moderating back to something more normal, he said.
Rabobank general manager for country banking Bruce Weir said the report showed strong growth in total package values for farm employees.
Many are offered other perks.
“The salary figures don’t include the range of other benefits provided to farm employees, which can include things like vehicle usage, meat, firewood, phone and power allowances,” he said.
“For many farm employees, those extras can add up to several thousand dollars a year.
“Overall, the weighted average TPV across all farm employees lifted five percent to $77,030, nearly $4252 more than the average salary.”
Dean said it was a “compelling” option for young people considering the future.
“There are endless pathways and the majority of people, when they get through those lower levels, get on to higher-skilled jobs.
“There’s not many roles where you can leave school and be on to $65,000, $70,000 in your first year as a package. It’s pretty compelling.”
The wages of an arable farm machinery operator jumped 30 percent to $82,651.
On dairy farms overall, the average salary this year was $73,172 in 2026, up from $70,923 in 2024. The total package value was up five percent.
Sheep and beef farm workers overall had a drop in income, from $72,608 in 2024 to $71,504 but their total package value lifted 2 percent.
A Federated Farmers survey in February this year showed strong profitability on sheep and beef farms, but much more caution over forward expectations, reflecting ongoing cost pressures and market volatility.
“Even with conditions improving, farmers will be conscious of how cyclical schedules are, and are likely to take a cautious approach to reinvesting in staff until returns prove more reliable and consistent,” Dean said.
Arable farm workers had a pay rise from $71,541 to $73,850. The average total package value rose seven percent.
Machinery operators saw big increases in both TPV and salary, but general farm hands and farm managers experienced declines.
Deans said the pay boost for machinery operators was largely attributable to the lift in technology in harvesting and other equipment coming on to farms, and the greater level of knowledge required to operate this equipment.
“These skills are becoming harder to find and come at a cost of remuneration.
“The lift in pay also reflects the fact that the past two wet harvests have increased the number of hours worked by operators to get the harvest done and extra time spent getting crops established.”
Dean said it could be hard to find staff.
“In rural New Zealand it is still seemingly very difficult to get good staff. There’s still migrant labour required due to the fact we have very low unemployment rates in provincial New Zealand compared to the urban centres.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
