Health and Employment – Payroll failure hits pay for 4,000 Waikato health workers, urgent review needed

Source: PSA

The PSA is calling on Health NZ to conduct an urgent review after a widespread failure in its payroll system left around 4,000 Waikato hospital and health workers without pay yesterday.
The payroll glitch affected roughly half the Waikato health workforce. For workers living pay cheque to pay cheque, the impact was immediate and real. One PSA member was unable to pay their rent.
“Workers turned up and did their jobs, caring for patients, keeping hospitals running, and they deserved to be paid on time. A payroll failure of this scale is not a minor inconvenience, it causes real hardship,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
Health NZ has apologised to staff and said the failure was a result of ‘an error in the rostering system used to calculate pays’. Staff would be paid tonight.
“Apologies are not enough; Health NZ must urgently get to the bottom of what happened here and make sure it never happens again. What we do know is the Government’s spending cuts and axing of health workers do not help.
“This is not an isolated incident,” said Fitzsimons. “IT failures have become a recurring feature of our public health system and that is no accident. Just last week a critical medical imaging system was down for two hours across Auckland and Northland hospitals delaying results for clinicians.
“The PSA has repeatedly warned that cuts to Health New Zealand’s Digital Services workforce would make IT failures more likely and harder to fix.
“Health NZ has shed around 23% of its IT workforce, more than 500 staff to meet the Government’s spending cuts. On top of that some 2,800 health workers, including critical clerical and admin workers, have lost their jobs.
“Doing this while the system is already under strain is reckless. Yesterday’s payroll failure is a direct consequence of running a health system without the resources it needs,” said Fitzsimons.
The PSA is calling on Health Minister Simeon Brown and Health NZ to urgently review the state of the health system’s digital infrastructure and to halt further cuts to the Digital Services workforce until a full and independent assessment of IT risk has been completed.
“Workers and patients cannot afford for the Government to keep ignoring the warning signs. It’s time for the Health Minister to act,” said Fitzsimons.
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand's largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.

Health – Strengthening the primary care workforce: The College welcomes employment changes for GPEP 1 registrars

Source: Royal NZ College of General Practitioners

The Royal New Zealand College of General Practitioners (the College) welcomes the Minister’s announcement that Health New Zealand | Te Whatu Ora (Health NZ) will become the direct employer for General Practice Education Programme (GPEP) Year One registrars from February 2027.
GPEP 1 registrars will continue to be able to choose practice employment alongside this new change.
The College and Health NZ have worked together on this change to provide registrars with a smoother transition into GPEP with pay, terms and conditions aligned with other specialist vocational programmes.
College CE, Toby Beaglehole says that the announcement continues the positive momentum towards investing in the future of primary care and ensuring it remains sustainable.
“This announcement is a very positive step forward in removing barriers for house officers joining our GPEP programme, with the continuation of their employment with Health NZ.”
“Alongside the new Primary Care pathway for PGY2s, this is another step forward that continues to build the attractiveness of being a specialist General Practitioner, which will result in a more sustainable primary care system in New Zealand. We know specialist GPs are vital to the health of our communities in New Zealand and are at the frontline of our health care system.”
The 2022 Malatest report highlighted that leaving the hospital-based system was the most significant barrier for doctors entering GP training.
“It's great that GPEP registrars can choose to be employed under Health NZ, with the resultant benefits of continuity of employment that come with this and hopefully enabling similar conditions of employment to their hospital colleagues,” says Dr Ella Barclay, Chair of the College’s Registrar Chapter.
The College continues to aim to get 300 registrars into the GPEP training programme each year, with a clear focus on strengthening New Zealand’s primary care workforce by ensuring that we have more GPs and the workforce pipeline remains sustainable.
With Health NZ now becoming the employer of registrars who are not employed by a private practice in their first year of GPEP training, the College will retain its leadership over educational content, training standards, quality assurance, and clinical placements.
The option for registrars to be employed by a private practice will remain a core component of the GPEP training pathway and has not changed under this agreement.
The College and Health NZ will work together to ensure this process is seamless for new registrars applying for GPEP in 2027.
Applications for the 2027 GPEP intake will be  open from Monday 9 March – Monday 13 April 2026. Find out more and apply on the College website:  Specialise as a general practitioner | RNZCGP

Tax Reform – Report shows wealth tax practical and necessary to address increasing inequality

Source: Tax Justice Aotearoa

5 March 2026, 6:30am – Taxing wealth is a practical and necessary step to address increasing inequality, according to a research report released today by Tax Justice Aotearoa and the Better Taxes for a Better Future Campaign.

The report by Tayla Forward shows that a well-designed and enforced wealth tax can help restore progressivity to New Zealand's tax system and generate significant revenue to better fund the public goods and services we all rely upon, but which are crumbling with the weight of underfunding.

“In 2023 IRD research found the wealthiest 311 families paid an effective tax rate of 9%, while ordinary people who earn their income from work or welfare pay 20% on average. That's because our tax system relies too much on income tax and GST, and does not tax wealth in any meaningful way. This report shows that if we get the settings right a wealth tax is a practical and necessary step in addressing this unfairness,” said Glenn Barclay, spokesperson for Tax Justice Aotearoa and the Better Taxes Campaign.

“Right now ordinary people are contributing more to our collective pool of resources, even though the wealthiest benefit just as much – if not more – from our public goods and services. At the same time, by not taxing wealth we are making inequality worse, enabling the ultra rich to claim an ever greater share of our wealth. Treasury analysis shows the wealthiest 1% of New Zealanders now hold 26% of all assets, while the poorest 50% own just 2% of assets.”

“This increasing inequality is undermining the living standards and opportunities for ordinary people, making it harder for people to ever have enough to buy a home or save for retirement,” said Barclay.

“Poll results released yesterday by Better Taxes Coalition member the Wellbeing Economy Alliance showed that 68% of people support higher taxes on the ultra rich. And that's the focus of wealth taxes – the ultra rich – we're not talking about taxing the hard-earned income of doctors, builders and small-business owners. The poll indicates that the public are ready for taxes on wealth, if properly explained.”

As set out in the report, a net wealth tax:

is an annual tax levied on the net wealth (assets minus debt) that a taxpayer owns above an exemption threshold – e.g. $2m, $5m, $10m. No one with net wealth below the threshold is liable for the tax, and those liable are only taxed on their wealth beyond the threshold – net wealth up to the threshold is exempt;
usually has a low rate – the report considers rates between 1-2% – but still generates revenues in the billions of dollars; and
can be designed to address potential evasion and avoidance, and cashflow/liquidity issues. Further, much feared capital flight is largely “unproductive financial shuffling”, rather than real productivity losses.

“As Tayla Forward states in the report, there is a compelling case for wealth taxation to generate revenue we need to fund our communities, and to address wealth inequality and the concentration of economic power, which undermines living standards, as well as our democratic system and economic efficiency,” said Barclay.

“Further, the report is clear that it is possible to design and implement wealth taxes in ways that address common issues experienced overseas. The real question is whether our leaders are prepared to make the political commitment necessary to ensure ordinary people can still realistically work towards owning their own home, supporting their family and a comfortable retirement, with the support of properly funded public goods and services.”

Summary report (4 pages): https://www.tjanz.org/r?u=eBilUhG948Co9Gi-inm0OY9XASxVKg60q4ZRoYNfpPZ8joQaczigWFV1L8q3of6DGLwf3Uh46z34qDw9Wtu7bDUsf5HxzvRrQlTbSL0t7UEjAsPDS2l7edtBvfViZ40Z&e=a058f8e1b0ba0a060f4e57ba89e35ae1&utm_source=tja&utm_medium=email&utm_campaign=wealth_tax_report&n=6

Full report: https://www.tjanz.org/r?u=eBilUhG948Co9Gi-inm0OY9XASxVKg60q4ZRoYNfpPb3XZQq7itcKD-bsC2kNrf-nbMRK4IVy-zqMqrEmSmFv3DieTzEE6UGTF3DZUmmS8Oy0LTLgX0O7O3YdUIg7S4m&e=a058f8e1b0ba0a060f4e57ba89e35ae1&utm_source=tja&utm_medium=email&utm_campaign=wealth_tax_report&n=7

About the report author:

Tayla Forward (Ngāpuhi) is a researcher in economics and political economy based in Tāmaki Makaurau. Fellow of the World Inequality Lab, postgraduate student at the Paris School of Economics, and a research associate at Victoria University of Wellington and at the University of Canterbury. Formerly analyst at the Treasury and Private Secretary to the Minister of Finance.

Health and Care – Royal Commission highlights critical role of aged care in protecting New Zealand’s health system

Source: Aged Care Association

The Aged Care Association says the findings of the COVID-19 Royal Commission reinforce what the sector has been saying for years: aged residential care is an essential part of New Zealand’s health system and must be treated as core health infrastructure.
Chief Executive Tracey Martin said the report’s lessons for future pandemic planning highlight the critical role that aged residential care facilities play in protecting some of the country’s most vulnerable people.
“Residential aged care facilities provide complex clinical care to tens of thousands of older New Zealanders every day,” Martin said.
“During COVID-19, providers worked tirelessly to protect residents from the virus while continuing to deliver around-the-clock care under extremely difficult circumstances.”
The Royal Commission notes that older people living in residential care are among the most vulnerable populations during infectious disease outbreaks and that stronger national preparedness planning will be required for future pandemics.
Martin said the report reinforces an important point that is often overlooked in health policy discussions.
 Aged care is health care, and the Royal Commission makes that impossible to ignore.”
“Long-term care facilities cannot be treated as peripheral services in the health system. They are a critical part of our national health infrastructure.”
Approximately 40,000 New Zealanders currently live in aged residential care facilities, receiving nursing care, medication management, dementia care, rehabilitation support and end-of-life care.
“At any given time, aged residential care providers are effectively operating thousands of hospital-level care beds within the community,” Martin said.
“Without aged residential care, hospitals would be under even greater pressure. Recognising residential care as part of the country’s core health infrastructure is essential not only for future pandemic preparedness, but also for the day-to-day functioning of our health system.”
Martin said the Royal Commission’s findings align closely with the sector’s long-standing message that “aged care is health care.”
“For too long aged residential care has been discussed as if it were primarily accommodation for older people,” she said.
“In reality it is a critical part of the healthcare continuum, providing complex clinical care to people who can no longer safely remain at home.”
The Association said the report also highlights the importance of ensuring aged residential care is fully integrated into national health planning for future public health emergencies.
“If we accept that residential care is critical health infrastructure, then we also need to have an honest conversation about whether the way we fund and plan for the sector today is sustainable for the future,” Martin said.
The sector is already seeing increasing demand for care as the population ages, while many providers are operating ageing facilities and facing workforce shortages.
“In many regional communities aged residential care providers are a vital part of the local health system,” Martin said.
“When beds are lost in smaller towns it can mean older people are forced to move away from their families and communities to receive the care they need.”
Martin said planning for the future of aged residential care must be a priority as New Zealand prepares for both future pandemics and the rapid growth of the older population.
“The lessons from COVID-19 should prompt us to ensure the systems supporting older New Zealanders are strong, sustainable and fully integrated into the wider health system.”
The Aged Care Association said it looks forward to working with Government and health agencies to ensure the lessons identified in the Royal Commission report are reflected in future health system planning.
About the Aged Care Association:
The Aged Care Association represents the vast majority of aged residential care providers in New Zealand, supporting more than 670 facilities that provide care to approximately 40,000 older New Zealanders.

Environment Groups: Statement – Community Demands Answers Over Glyphosate Spraying in Te Henga Wetlands – NMGNZ

Source: No More Glyphosate NZ – NMGNZ

Community Demands Answers Over Glyphosate Spraying in Te Henga Wetlands
Auckland, New Zealand – 05 March 2026 – No More Glyphosate NZ is calling for urgent transparency and an immediate pause on the aerial spraying of glyphosate-based herbicides in the Te Henga wetlands, following reports that spraying has proceeded despite legal action and significant community concern.
 
The controversial operation, reportedly carried out by the environmental group Matuku Link, involves the aerial application of glyphosate formulations to kill willow trees within a sensitive wetland ecosystem in West Auckland.
 
The wetlands of Te Henga are recognised habitat for critically endangered species, including bats and nationally significant bird populations such as the Australasian bittern. Wetlands also represent some of the most ecologically sensitive environments in New Zealand, making the use of agrichemicals in such areas particularly contentious.
 
Recent documentation reviewed by No More Glyphosate NZ raises serious questions about whether adequate environmental safeguards and community consultation have taken place.
 
Chemical risks in wetland environments
Technical analysis of the operation indicates that the herbicide Polaris 450, a glyphosate-based product, was reportedly used alongside Aquakynde, an additional surfactant designed to increase herbicide penetration.
 
According to product safety data sheets and regulatory classifications:

  • Polaris 450 is classified as harmful if inhaled, causing serious eye irritation, and toxic to aquatic life with long-lasting effects.
  • Aquakynde surfactants are associated with serious eye damage and aquatic toxicity, with documented impacts on aquatic organisms at very low concentrations.

Importantly, the safety documentation for Polaris 450 explicitly warns users not to allow the product to enter waterways.
 
Yet wetlands, by their very nature, consist of interconnected pools, saturated soils, and slow-moving water systems that can facilitate chemical movement and persistence.
 
When glyphosate formulations are combined with additional surfactants, studies show the aquatic toxicity of the mixture can increase significantly, particularly affecting amphibians, aquatic invertebrates, and early life stages of wildlife.
 
Compliance questions remain unanswered
Independent technical review has highlighted that spraying herbicides in or near standing water in wetlands creates high-risk exposure pathways through spray drift, wash-off, and sediment binding.
 
Under New Zealand's hazardous substances framework, agrichemicals with aquatic toxicity classifications are normally prohibited from being applied directly into water unless stringent additional controls are met.
 
Regional planning rules, including the Auckland Unitary Plan (Chapter E34 – Agrichemicals), require agrichemical spraying to avoid spray drift into “sensitive areas” such as water bodies and wetlands, requiring strict management of spray drift, operator competence, and environmental safeguards.
 
In complex wetland systems like Te Henga, experts note that preventing herbicide movement beyond the spray site can be extremely difficult.
 
No More Glyphosate NZ believes the public deserves clear answers to several critical questions:

  • What independent monitoring has been undertaken to assess environmental impacts?
  • Has baseline and post-spray water or sediment testing been conducted for glyphosate and its breakdown product AMPA?
  • What monitoring has been undertaken to protect endangered wildlife species in the spray area?
  • What safeguards were implemented to prevent spray drift affecting nearby residents, wildlife, and waterways?
  • Were local residents adequately informed prior to spraying?
  • How were concerns from community members and environmental groups addressed?

Community trust at stake
Reports indicate that members of the local community have raised concerns with Auckland Council and environmental organisations for over a year, including meetings with council officials and submissions providing scientific data on wildlife impacts.
 
Despite this, the recent spraying reportedly proceeded while legal action was being pursued to halt the operation.
 
For many residents, the issue goes beyond the control of invasive willow trees.
 
It raises deeper concerns about public accountability, environmental stewardship, and the use of toxic herbicides in sensitive ecosystems.
 
A call for precaution and transparency
No More Glyphosate NZ is calling for:

  • An immediate pause on herbicide spraying in the Te Henga wetlands
  • An independent compliance and environmental review of the spraying operations
  • Full disclosure of monitoring data, environmental assessments, and operational plans
  • Genuine community consultation and transparency before any further spraying is considered.

“Wetlands are among the most fragile ecosystems we have,” said a spokesperson for No More Glyphosate NZ.
 
“When chemicals classified as toxic to aquatic life are sprayed in these environments, the burden of proof must be extremely high that no harm will occur.”
 
“Right now, the public simply doesn't have enough information to be confident that this standard has been met.”
 
Until those questions are answered, the organisation believes the precautionary principle should apply.
 
“This is not an emergency situation. Taking the time to ensure environmental safeguards and community concerns are properly addressed should be the responsible course of action.”
 
About No More Glyphosate NZ
No More Glyphosate NZ is an independent public-interest initiative advocating for greater transparency, safer weed management practices, and reduced reliance on glyphosate-based herbicides in New Zealand.
 
The organisation works with communities, researchers, and environmental advocates to promote evidence-based decision making and protect public and ecological health.

Transport groups unite in call for driver licensing support

Source: Ia Ara Aotearoa Transporting New Zealand

A coalition of transport groups is calling for increased access to driver education and training to help address the growing number of New Zealanders without a full driver’s license.
The group, consisting of Transporting New Zealand, Driving Change Network, Bus and Coach Association, MITO, Heavy Haulage Association, National Road Carriers, and Groundspread NZ wrote to Ministers last week requesting more support for the growing pool of unlicensed Kiwis, which totals over one million.
The group wrote that the recent changes to the Graduated Driver Licensing System would reduce the financial burden on learners, but more needed to be done.
“We remain concerned that this alone won’t be enough to help young people attain licenses at the scale required for them to live full, independent lives and potentially to be able work in commercial transport,” the letter said.
Transporting New Zealand’s Chief Executive, Dom Kalasih says at least 70% of job listings require a driver’s licence.
“For the road freight sector, that figure will obviously be a lot higher. Ministry of Transport estimates the freight task will grow more than 20 per cent over the next 20 years – an additional 60 million tonnes of freight moved per year. With that growth we need a sustainable supply of qualified drivers. A full Class 1 licence is the first step in that pipeline.”
The letter said that stable investment across the transport, education and social development portfolios to improve access to driver training and testing will save the Government and taxpayers money by reducing the amount of young people entering the justice system and improving their employability.
The seven organisations said driver education and testing should be integrated into secondary schools and supported by Government funding.
“Driver education in schools should be a normal part of the transition from school into work,” said Kalasih.
“Without it, too many young people who can’t access support at home or pay for private lessons are left behind.”
The group is also calling for boosted funding for low-income learners to access free programmes, and for the growth of community-based training and testing services, particularly in rural and high-deprivation areas.
“Investing in driver licensing is a cost-effective way of getting people employed, keeping them out of trouble with the law, and supporting self-sufficiency. We hope that all political parties will commit to improving access to driver education and testing.” said Kalasih.
The group is awaiting a response from the Ministers for Education, Transport, Vocational Education, and Social Development.
Three steps to improve licence uptake and workforce participation
Increase targeted financial support for low-income applicants by doubling annual government funding from $20 million to $40 million, with training and testing services delivered through community providers and MSD.
Integrate driver training into all New Zealand secondary schools by 2030, offering theory preparation, practical lessons, and on-site testing, supported by stable central and local government funding and promoted as a pathway to employment and independence.
Increase funding for mobile and community-based licensing services, particularly in rural and high-deprivation areas, from $4.05 million per year to $20 million per year.
About Ia Ara Aotearoa Transporting New Zealand
Ia Ara Aotearoa Transporting New Zealand is the peak national membership association representing the road freight transport industry. Our members operate urban, rural and inter- regional commercial freight transport services throughout the country.
Road is the dominant freight mode in New Zealand, transporting 92.8% of the freight task on a tonnage basis, and 75.1% on a tonne-km basis. The road freight transport industry employs over 34,000 people across more than 4,700 businesses, with an annual turnover of $6 billion. 
About The Driving Change Network
The Driving Change Network was launched in 2019, and is committed to ensuring New Zealand’s driver licensing system helps, rather than hinders, people’s access to life opportunities. The network is made up of a diverse group of over 900 stakeholders representing community providers, instructors, NGOs, Iwi, and businesses that support driver education, training, and licensing. These stakeholders recognise that fixing the issue is not about making driver’s licence tests easier or cheaper. Rather, they aim to address structural inequalities in the driver’s licensing system that make it ineffective and difficult for many users to engage with.

Culture Art Environment – HĪKOI O TE TAOKA | MARCH OF THE TREASURE

Source: Otago Shore and Land Trust

Location: Ōtepoti Dunedin, Aotearoa New Zealand

PREVENT | PRESERVE | PROTECT — ART IN ACTION

Hīkoi o te Taoka | March of the Treasure is a powerful travelling public art protest across Te Waipounamu (the South Island), uniting communities and visitors through large-scale art to protect one of the world’s rarest penguins: the beloved hoiho (yellow-eyed penguin).

From Dunedin to Queenstown, larger-than-life hoiho statues will appear in prominent public spaces, transforming everyday locations into a moving call for environmental action. The exhibition blends art, storytelling, and awareness to shine a spotlight on the urgent plight of this taonga species.

Hīkoi o te Taoka, meaning March of the Treasure, reflects the deep cultural and environmental value of the hoiho to Aotearoa. Reimagining activism as a living gallery of hope, the campaign invites people to stop, reflect, and take responsibility for the future of a species on the brink of extinction.

“The hoiho is quietly disappearing from our coastline,” says Jerad Haldan, Trustee of the Otago Shore & Land Trust.
“This hīkoi is about giving the hoiho a voice, through art that stops people in their tracks and reminds us that there is still time to act, if we choose to.”

Art with a Purpose

Each life-sized statue is a vivid artistic expression, designed to spark conversation and connection. Together, they tell the story of the hoiho’s struggle and resilience, reminding us that the survival of this delicate species lies in human hands.

Today, fewer than 400 hoiho remain. Habitat loss, disease, warming seas, and overfishing continue to threaten their survival.

The hoiho is more than an endangered species. It is a treasured New Zealand icon, featured on the $5 note, and a drawcard for visitors from around the world who travel to Otago hoping to glimpse this rare and shy penguin in the wild.

A Call to Action for Media and Community

Hīkoi o te Taoka invites local, national, and international media to follow the hīkoi and share the stories of the statue sponsors (wildlife guardians), artists, conservationists, and communities working to protect this precious species before it is lost forever.

Media outlets, photographers, influencers, and content creators are encouraged to visit the installations, capture the artworks, and amplify the campaign’s message.

Opportunities include visual storytelling, artist and conservation interviews, and coverage of how art-led activism can inspire environmental change.

Installation Locations

Dunedin: Tūhura Reserve, Dunedin Railway Platform, Larnach Castle, plus a roving hoiho appearing at pop-up locations
Oamaru: Cycle Journeys, Victorian Precinct
Wānaka: Outside Puzzling World
Arrowtown: Outside Lakes District Museum
Queenstown: Queenstown Airport terminal, Steamer Wharf, LyLo Hotel.

Hīkoi o te Taoka — March of the Treasure Together

The 10 hoiho statues will then make their way back to Dunedin, where they will be displayed together. The final journey — the march of the hoiho back home — will take place on the following dates at these locations:

The Octagon: 5–10 April 2026
Wild Dunedin’s NatureDome event at Forsyth Barr Stadium: 12 April 2026
Tūhura Otago Museum Exhibition: 14 April – 14 May 2026
Tūhura Otago Museum Live Auction: 8 May 2026

Website: www.otagoshoreandland.org/the-hikoi-project

Follow the journey on social media: #HīkoioteTaoka #ArtForHoiho #MarchTheTreasure

Rural News – Profitability at all-time high, but farmers cautious – Federated Farmers

Source: Federated Farmers

Strong returns and lower debt-servicing costs mean more farmers than ever are making a profit, according to the latest Federated Farmers Confidence Survey.
Of nearly 650 farmers who responded to the survey in late January and early February, 70% said their farm was currently profitable.
“That’s the highest level since we started our twice-yearly Farm Confidence Survey back in 2009,” Federated Farmers president Wayne Langford says.
“It’s great to see farmers doing well after several tough years of rising costs and uncertainty. When farmers are profitable, that’s good news for the rest of New Zealand.
“That money flows into rural communities and the wider economy, supporting local businesses, creating jobs and strengthening regional New Zealand.”
The mid-season survey shows farmers are feeling the most confident about current economic conditions since 2017, with a net 37% positive score.
“That’s a big turnaround from 2023/24, when farmer confidence was stuck at rock bottom and looked like it was just going to keep falling,” Langford says.
“Improved commodity prices are the key driver, as well as lower lending interest rates.
“At the same time, Federated Farmers has been working incredibly hard to cut some of the red tape that was holding our sector back, and we’ve had a Government that’s listened to our concerns.
“That easing of regulation has really helped breathe new life back into rural New Zealand again.”
The recovery from 2023/24 is now firmly established across most sectors, with the number of profitable dairy farms stable at 81%, and meat and wool farms improving substantially.
“Arable farm profitability continues to lag at 41%, but that’s a small improvement from our July 2025 survey.
“It’s been an incredibly challenge year and harvest for our arable farmers across the country” Langford says.
Despite favourable current conditions for farmers, the survey shows many are feeling apprehensive about the future, with concerns about cost pressures and market volatility.
When asked about their expectations for after-tax profit over the next 12 months, farmers’ optimism has dropped sharply, with more now predicting a fall in profits than an increase.
This marks the first negative profitability outlook since early 2024.
“Dairy farmers were particularly pessimistic,” Langford says.
“With forecast payouts hovering around $8.50-$9.50 per kilogram of milk solids, but rising input costs pushing the break-even margin to $8.50, there’s quite a bit of nervousness there.
“Farmers might be receiving strong milk cheques, but it’s the margin that matters. If costs keep rising, that will quickly eat away at profitability.”
Forward sentiment on economic conditions slipped to a net positive 4%, down from 6% six months ago.
A particularly worrying result is the finding that more farmers are having difficulty recruiting skilled and motivated staff.
Langford says it’s incredibly frustrating for farmers because, even as nationwide unemployment rises, they struggle to find good staff.
“It’s a message we keep sending to successive governments,” he says.
“The primary industries are the engine room of the economy, but it’s hard to attract willing workers to more remote provincial areas.
“Farmers play a role in training and looking after their staff, but many challenges are beyond their control.
“When rural communications, roads, bridges, and school bus services are under-invested in, younger workers and families stay in the cities – sometimes even if that means relying on a benefit,” Langford says.
When asked in the survey about their greatest concerns, farmers said regulation and compliance costs are still the main worry, but input costs have risen back to second place.
“While inflation has eased across the broader economy, on-farm expenses for essentials such as electricity and feed remain high.
“That’s continuing to put pressure on farmers’ cashflow and profitability.
“Worries about farmgate and commodity prices jumped sharply to third place.”
Asked what the priorities should be for the Government in election year, fiscal policy was number one on farmers’ lists.
“Clearly, farmers are concerned about government spending, taxation and debt levels,” Langford says.
“They also want the Government to prioritise the economy and business environment.”
Local government reform was fourth on the priority list, up from eighth just a year ago.
“There’s continued dissatisfaction with rates hikes, spending priorities and service delivery in rural areas,” Langford says.
“Hopefully the Government’s proposals for a rates cap, and for reducing the number of councils to eliminate duplication and improve efficiency, will see these concerns diminish in future.
Langford says the best move the Government could make to turbocharge confidence and investment in agriculture would be to pick up Federated Farmers’ ideas for improvements to the new legislation that will replace the Resource Management Act.
“That bloated Act, and the costly and time-consuming resource consents and hearings it entails, has been a thorn in the side of our productive sector for far too many years.” 

Proposed changes to Household Labour Force Survey income data

International trade: December 2025 quarter – Stats NZ information release