National pledges up to $300 million in cheap loans for farmer water storage

National unveiled a rural-focused policy offering farmers low-cost, ten-year loans totalling $300 million to expand water-storage capacity, aiming to capture rainwater for use during dry periods. Christopher Luxon and Todd McClay presented the plan at Feilding’s annual Rural Day, noting that only two percent of New Zealand’s rainfall is currently stored and that additional storage could irrigate another 400,000 hectares.

The loans will be funded without reducing the government’s capital-spending budget, but will incur an annual $16.3 million write-down managed via the Primary Sector Growth Fund. Five regions—Northland, Tairāwhiti, Hawke’s Bay, Wairarapa and Canterbury—will receive first consideration, and a national water-storage register will guide prioritisation. The party also proposes nationwide irrigation standards and a $10 million fund to boost local fertilizer production, aiming to reduce reliance on imports.