Source: Federated Farmers
Federated Farmers is welcoming National’s announcement of a scheme to help get water storage projects built, saying reliable access to water is vital for farming’s future and New Zealand’s economic success.
Federated Farmers president Colin Hurst says the policy recognises that water storage is critical infrastructure that can help farmers build resilience, grow their businesses and respond to changing land-use opportunities.
“Water storage is such an important strategic enabler of growth for the primary sector, unlocking huge economic opportunities for farmers and rural communities that all New Zealanders will benefit from.
“Reliable access to water gives farmers more options. It can help them increase production, build resilience through dry periods, or shift to higher value land uses when new opportunities emerge,” Hurst says.
“If we’re serious about doubling New Zealand’s export value and unlocking all of the economic benefits that will come with that ambition, access to water is absolutely critical.”
Hurst says getting projects built requires more than good ideas.
“There can be significant hurdles in the early stages of a project, particularly around consenting, construction risk and securing finance.
“That’s why initial Government support to help get projects off the ground early is so important.”
National’s announcement includes $300 million in concessional loans for water storage projects, a long-term national water infrastructure pipeline, and a national water storage register.
Five regions with storage work already underway – Northland, Tairāwhiti, Hawke’s Bay, Wairarapa and Canterbury – will be prioritised.
The policy also includes a National Standard for on-farm and other lower-risk off-stream water storage, as well as a National Standard for Irrigation to make consenting easier for farmers and growers.
Hurst says the measures align closely with Federated Farmers’ 2026 election priorities, including national standards for on-farm water storage and irrigation, greater flexibility for land use, and support to build new water storage projects.
“Farmers are always good at adapting to new opportunities – it’s part of our DNA – but we need the tools and infrastructure to do it,” he says.
“Just like reliable access to fertiliser and other critical inputs matters, so does having reliable access to water.
“These are the foundations that allow farmers to invest, innovate and keep delivering economic benefits for all Kiwis – funding roads, schools, police and hospitals.”
Hurst says better water storage isn’t just good for farmers, but also for rural towns, the wider economy, and the environment.
“Having our rural towns running out of water is a really big issue, and building more water storage will alleviate that.
“It’s also good for the environment because we’ll end up storing water in times of plenty for when water is short, which evens the flow of rivers.
“If you’re sucking water out of the river, the levels get low, and then there can be environmental impacts. Having secure water storage prevents that.”
Federated Farmers water storage spokesperson Richard Dawkins says the concessional loan component addresses a specific problem Federated Farmers has repeatedly raised with the Government.
“Projects often get stuck in that awkward period where a bank is hardly going to lend tens of millions while consent and construction risk is still hanging over them,” Dawkins says.
“There’s real value in the Government helping bridge that gap, and it is directly aligned with what we’ve been asking for.
“The national pipeline, storage register and standards are useful too because they get us closer to treating water storage as a strategic national infrastructure issue, rather than making every community start from scratch.”
Dawkins says water storage can deliver significant benefits beyond individual farms – and that access to reliable water is critical if we want to grow our economy.
“A new irrigation scheme can add hundreds of millions of dollars to the local economy of small rural communities, grow exports, and support families.
“We’ve seen that in Canterbury, where the Central Plains irrigation scheme generated $400 million for Canterbury’s GDP in 2025 and supports more than 2,200 full-time jobs.
“That’s good for everyone and it matters even more in times like now, when Kiwi families are struggling to put food on the table and fuel in their cars.
“New Zealand is never going to be able to tax our way into prosperity, but we might be able to farm our way there. A growing economy means more jobs and higher incomes.”
Dawkins says there’s still work to do to make projects investment-ready and get more schemes moving, but the Government’s announcement is a significant step forward.
“Once up and running, many water storage schemes can be largely funded by water users, but there are major risks and costs in getting projects through the early development stages.
“Today’s announcement responds to a genuine need from the farming sector and is a great step towards getting more projects built.”