Promising policy changes

1 July 2025

The Government’s recently announced national direction package promises meaningful change for growers, and not a moment too soon.

After years of navigating increasingly complex and inconsistent rules around how we grow fruit and vegetables, it’s encouraging to see proposals that mark a shift toward more enabling and fit-for-purpose regulation.

These proposed changes reflect a more balanced and realistic approach to regulation -- one that acknowledges the pressures on growers and the critical importance of domestic food production, as well as the export value of horticulture.

The package, now open for public consultation, touches on a range of vital policy areas: freshwater management, highly productive land, infrastructure and water storage.

For commercial vegetable growers in particular, the proposals could bring significant relief.

One of the most promising aspects of the package is the proposed recognition of the national significance of commercial vegetable growing.

This could mean vegetable production becomes a permitted activity, provided growers operate under a certified freshwater farm plan, or other approved industry assurance plan. Such a change would offer certainty and flexibility, allowing growers to maintain soil health and manage their operations sustainably, without getting tied up in excessive compliance.

The Government is also looking to remove regulatory barriers to developing on-farm water storage and managed aquifer recharge. This is a smart move.

Reliable access to water is non-negotiable for horticulture, and reducing the compliance burden will help growers prepare for increasingly volatile climate conditions.

Being able to capture water during wet periods for use in dry ones is not just a business necessity -- it’s a smart, environmentally responsible way to manage our resources. It makes sense to collect and store it when it’s plentiful and use it when you need it.

The package also proposes a more refined approach to protecting highly productive land.

The removal of blanket protections for Land Use Capability Class 3 land, in favour of allowing councils to designate “special agricultural areas,” recognises that productive land is about more than just soil type.

Horticultural hubs are built on a combination of climate, infrastructure and accumulated knowledge. A more nuanced, locally informed approach will better safeguard our ability to grow food where it makes the most sense.

These proposals come at a time when our sector is forecast for strong growth. The Ministry for Primary Industries recently projected horticulture export earnings will rise 19 percent to $8.5 billion by June 2025. Kiwifruit is leading the way, with apple, pear and vegetable exports also trending upward.

This forecast is a strong vote of confidence in our sector’s future. But it’s worth remembering that export growth doesn’t always translate into better outcomes at the farm gate. Input costs and regulatory overheads continue to squeeze growers’ margins. That’s why we need policies that not only support growth but enable it -- removing the roadblocks that stop good growers from getting ahead.

HortNZ will be submitting on all aspects of the proposals relevant to horticulture and we’re encouraging input from growers, product groups and district associations.

This consultation is a genuine opportunity for us to shape the rules that govern how we grow. Whether it’s freshwater planning, land use or access to water, the decisions made now will influence the future of our sector for years to come.

We must make sure these settings reflect the realities of growing and support our sector’s ability to feed New Zealand and the world.