Budget 2025: What the New Tax Incentives and Innovation Funding Mean for NZ Farmers

Budget 2025 has arrived with big promises for New Zealand’s agricultural sector. At the centre of it all? A bold new tax incentive and a dedicated innovation fund — aimed at driving growth and modernising the way we farm.

But while some are celebrating the news, others are raising their eyebrows. Let’s break it down.

What’s in the Budget for Farmers?

The government is introducing a 20% tax write-off on new capital assets for farms — covering things like farm equipment, technology, and machinery. This is on top of normal depreciation rules, offering a major incentive to upgrade and modernise operations.

In addition, a new Primary Sector Growth Fund will provide $70 million per year in co-funding to support innovation projects across the primary industries — including agritech, sustainability, and digital transformation.

At the same time, the government has discontinued the Sustainable Food and Fibre Futures Fund, sparking mixed reactions across the industry.

Why Some Farmers Might See It as Corrupt or Unfair

While the announcement sounds promising, not everyone is thrilled. Here’s why some in the farming community feel uneasy:

Big Players Win First: Tax write-offs are great — if you can afford to invest in expensive new tech. Many small to mid-sized farms simply don’t have the cashflow to benefit from this, leaving them behind.

Support Cut Elsewhere: The axing of the SFFF fund, which was accessible to a wide range of sustainability and grassroots projects, feels like a step backwards — especially for farmers focused on long-term environmental health.

Funding With Strings Attached: Co-funding models sound good, but they often come with red tape and are harder to access without existing business partnerships or tech know-how.

Political Timing: The move could be seen as political theatre — showcasing progress on innovation while reducing wider farm support quietly behind the scenes.

But Here’s Why It’s Not Necessarily Corruption

That said, it’s important to see the bigger picture:

Global Competition Requires Modern Tools: New Zealand’s farmers are competing in global markets. These incentives could help modernise infrastructure, making Kiwi farms more efficient and climate-resilient.

Encouraging Innovation with Accountability: Co-funded projects require buy-in from farmers or tech providers — which can lead to better outcomes than handing out blanket grants.

Clearer Focus: Rather than scattering resources thinly, the government is choosing to invest in scalable innovations that could benefit the industry long-term.

Bottom Line

Budget 2025 is a game-changer — but not necessarily for everyone. If you’re a well-capitalised farm with plans to invest in new tech, this could be your moment to leap ahead. But if you’re a smaller farm just trying to survive, it might feel like another policy that’s designed without you in mind.

At Ziv, we believe innovation should be accessible to all. Whether you run a large operation or a humble farm in the hills, you deserve tools and support that fit your needs.

Let’s make sure no one is left behind.

If you're wondering whether this Budget can help your farm or need support accessing the right tech for your land, get in touch for a free on-farm consultation.