Primary Industries Minister Nathan Guy has announced extra funding of $26.7 million over the next three years plus a capital boost of $63m for irrigation investments in Budget 2017.
The money was aimed at delivering economic and environmental benefits through better use of water.
“A reliable water supply for growers and farmers has major potential to boost economic growth, creating jobs and exports in the regions.
“At the same time these schemes can deliver real environmental benefits by maintaining river flows and recharging groundwater aquifers,” Guy said.
Severe droughts had reinforced the importance of water storage and the money would help develop new private-sector schemes to reduce the impacts.
The $26.7m would provide matched grants to regional scale irrigation schemes helping them progress through the phases of development to reach construction.
The $63m would the construction of regional irrigation infrastructure.
Guy said projects likely to need help included the Waimea community dam near Nelson, Flaxbourne community water project, Hunter Downs Water and the Hurunui water project.
They would support a wide variety of land uses, including horticulture, sheep, beef and arable while the water could also be used for urban supply and improving environmental, recreational and social outcomes.
The money was great news for communities, IrrigationNZ chief executive Andrew Curtis said.
“Sustainable irrigated agriculture is NZ’s future. It underpins many of the provincial economies on the east coast of NZ where regional towns like Hastings, Blenheim, Ashburton, Timaru, Cromwell and Alexandra would be far less vibrant and less resilient without irrigation infrastructure.”
“For every $1 an irrigator earns another $2 to $3 of wealth is created in their community. It is estimated that irrigation contributes over $5.4 billion to the NZ economy every year.”
Federated Farmers environment spokesman Chris Allen said the money was a powerful stimulant for re-energising provincial NZ.
"This is great news for rural communities and will provide access to significant social and economic benefits.
“It also emphasises the Government’s commitment to water storage, which is a lifeline for those connected and working in our primary sector.
"It will provide greater assurances all-round and ultimately takes pressure off water resources when they are scarce, especially during droughts and dry spells.
"Precise agriculture is increasingly being adopted by irrigators, which allows for the exact measurement of crop and pasture needs, where water and nutrient can be accurately applied to meet plant requirements.”
And the combination of smart technology with more sophisticated water scheduling ensured nutrients did not leave the root zone of plants, greatly reducing or eliminating nutrient loss, Allen said.
