Budget 2025 Powers Farm Tech

New Zealand’s historic advantage in agricultural productivity is under pressure. While our farmers have long been global leaders in efficient land use and animal management, the rapid pace of agritech adoption overseas is closing the gap on our traditional edge. If New Zealand is to maintain its standing as a world-class producer, embracing cutting-edge technology is no longer optional—it’s essential.

Following recent visits across North America and Australia, Sarah Adams, Gallagher Animal Management General Manager of Strategy and New Ventures, highlights this critical challenge: while New Zealand has enjoyed a leadership position in farm productivity, largely out of necessity bred by our small geographic scale, the global agritech adoption landscape is evolving rapidly. To maintain and enhance our competitive advantage, it is essential that local farmers are empowered to adopt cutting-edge tools that can drive efficiency, sustainability, and profitability in an increasingly complex operating environment.

In US and Australia, we are seeing government investment enabling farmers to implement agritech, and rates of adoption have been rapid. This support is enabling the widespread implementation of practices like rotational and managed grazing that are substantially improving efficiency on a broad scale.

In this context, the Government’s 2025 Budget announcement, particularly the introduction of enhanced tax incentives for capital investment in new equipment, is a timely and welcome development. These measures signal a clear recognition of the vital role tech-enabled equipment plays in the future of farming and provides a practical mechanism for farmers to invest confidently in the tools that will shape the next generation of agricultural productivity.

New Zealand farmers are outstanding innovators, and it's our role as agritech companies to equip them with the tools to drive that innovation. Tax incentives that lower the capital cost of adopting technologies like virtual fencing and remote weighing will help get these technologies into the hands of more farmers, unlocking the next leap in productivity and profitability for the red meat sector, in a very sustainable way.

Sarah Adams notes: “We hope this also helps address the challenge farmers face from bankers, advisors, and accountants who often demand clear ROI before supporting tech investments. That’s hard to quantify until farmers can implement, innovate, and adapt their practices.”

“From our work with farmers, we’re seeing major gains in productivity, sustainability, and farmer well-being. Every day brings new examples of how these technologies are being used—offering huge potential if adopted more widely across New Zealand farms.

At Gallagher, we view this policy as a strong endorsement of innovation in agriculture. It provides vital support for farmers adopting advanced technologies like virtual fencing, which enables precision grazing without traditional barriers. The incentives also encourage investment in high-performance equipment such as electric fencing systems, integrated weighing and animal management tools, and connected infrastructure that boosts efficiency and animal welfare.

This policy aligns with the evolving needs of New Zealand farmers, who face pressures from labour shortages, environmental challenges, and increasing demands for traceability and sustainability. By lowering the financial barriers to investment, the Government is helping farmers remain globally competitive and resilient, ensuring the long-term viability of the sector for future generations of kiwi farmers.

Sarah Adams expressed Gallagher’s enthusiasm for this initiative, stating:
"We are thrilled the Government has identified the need to support farm businesses in adopting new technologies. This policy will make a real difference in enabling farmers to invest in innovative solutions that are essential for maintaining competitiveness in global markets. As a farmer myself, I understand the challenges our industry has faced over the last few years so it is good to see some green shoots, and we look forward to seeing the positive impact this will have on NZ farming productivity.

As a company deeply embedded in the New Zealand farming community, Gallagher is committed to supporting farmers and welcome the Government’s leadership in fostering an environment where innovation can thrive. We look forward to working with farmers to leverage these new incentives to drive meaningful improvements on farms across the country.

To hear more on Sarah’s views, join us on site at this year’s National Fieldays® Tent Talk: Accelerating Agritech Adoption: Before We’re Left Behind