Nuffield 2024

Gene editing is poised to reshape the New Zealand primary sector by enabling adaptation to climate change, enhancing environmental sustainability, and boosting productivity.

Advancements in faster, safer, and more precise gene editing techniques have prompted proposals for new legislation to align New Zealand’s gene technology regulations with those of key trading partners. A balanced approach is needed, harnessing scientific innovation while maintaining public trust and market access.

Gene editing can transform parts of the agricultural value chain, especially scientific research, the biotech sector, and plant breeding. In other areas, its impact may be incremental and take time to reach meaningful scale. Therefore, managing expectations is critical so stakeholders maintain realistic views of both its benefits and limitations. Independent government and primary sector research will be important for ongoing monitoring and transparent reporting.

As New Zealand develops a regulatory framework, it has the chance to embed Environmental, Social, and Governance (ESG) principles. This would broaden assessment criteria beyond standard safety and risk to include economic, societal, and environmental impacts. Though this approach would require more intensive, case-by-case evaluations from regulators and applicants, it could increase trust among the public, the sector, and international trade partners.

Leadership from the primary sector is necessary to ensure agricultural impacts and opportunities are prioritised in regulation. Coordinated strategy frameworks for gene technology will help map innovation pipelines, risks, opportunities, and commercialisation timelines.

Early engagement with stakeholders, including government, sector bodies, farmers, growers, Māori, and the public is essential. These discussions should be grounded in relatable examples to support informed public opinion, rather than dictated by a top-down expert model. It is also important to acknowledge and respect those who oppose regulatory changes.

Driving innovation will require significant investment, supported by public-private partnerships and international collaboration. A key challenge lies in enhancing scientific capability and confidence, especially during uncertain times for the science sector.

New Zealand is encouraged to adopt a ‘fast follower’ approach to gene technology legislation, allowing it to benefit from scientific advancements while preserving public and trading partner trust. By navigating the adoption of gene editing carefully and inclusively, New Zealand can boost the primary sector’s productivity, sustainability, and global competitiveness.

Peatlands might look like the scruffy margins of New Zealand’s landscape, yet these water-logged soils are anything but marginal. Although they cover barely one percent of Aotearoa, they warehouse roughly 20 percent of the nation’s total biomass carbon – part of a global system that stores more carbon than all the world’s forests combined. Drain them, however, and the peat shrinks and oxidises, emitting CO₂ and nitrous oxide. Recent estimates suggest that drained peat already contributes up to seven percent of New Zealand’s greenhouse-gas inventory. Put simply, landscapes that should be carbon vaults are leaking fast – and some of our biggest customers have noticed, with companies like Nestlé now asking suppliers to avoid peat-related emissions.

With more than 90 percent of our original wetlands already drained or degraded, the challenge is clear: how do we stop the loss without undermining farm profitability or rural livelihoods?

One answer is paludiculture – production systems purpose-built for permanently wet soils. By cultivating raupō, harakeke, sphagnum moss and other water-tolerant species, landholders can keep peat saturated while generating fibre, construction materials, substrates and, potentially, carbon-credit income. International evidence is compelling: rewetted dairy pastures in northern Germany and wet-farming pilots in England’s Cambridgeshire Fens are just a few examples showing that, with supportive policy and market signals, “peat-positive” enterprises can be both profitable and resilient.

This report also underscores that peatlands – repo – are taonga for Māori. For generations they have provided kai, rongoā and weaving fibre, and their cultural narratives are embedded in the whenua. Successful restoration therefore hinges on genuine co-design with mana whenua, blending mātauranga Māori with ecological science.

Restoring peatlands under paludiculture offers a practical pathway to reduce agricultural emissions while keeping land productive. By scaling up sustainable

management practices, New Zealand can balance economic growth with its climate commitments.

Momentum is building – stronger wetland rules under the National Policy Statement for Freshwater Management and dozens of pilot projects are already under way. Yet this report calls for a further step-change. It urges decision-makers to treat peatlands as critical national infrastructure – carbon banks, biodiversity reservoirs and cultural landscapes worthy of sustained investment.

The bottom line is clear: the science, tools and precedents already exist; the missing ingredient is collective will. Reframing peatlands as essential ecosystems is vital to cutting emissions, improving freshwater quality and protecting native species. This report concludes with a challenge: keep the ground wet on purpose and transform the future of peatland management.

Farm succession in New Zealand is a critical issue, with an aging farmer demographic and rising land prices making it increasingly difficult for younger generations to enter agriculture. This report explores the barriers to farm succession and potential pathways for ensuring the long-term sustainability of New Zealand’s agricultural sector.

The report examines the challenges of family farm succession, the growing influence of corporate farming, the affordability crisis in farmland, and alternative succession models.

Historically, farm ownership has depended on intergenerational succession, but rising land values and tighter financial conditions complicate this process.

Succession typically involves three key phases: physical contribution (working on the farm), financial decision-making (taking on financial responsibilities), and equity transition (the formal transfer of farm ownership). However, many succession processes fail due to poor planning, lack of communication, and financial challenges. Key barriers include the reluctance of older farmers to relinquish control, challenges in fairly compensating multiple siblings, and the high financial burden placed on successors.

Successful succession requires early planning, clear communication, and often the involvement of external advisors.

This report highlights the dramatic shift in farmland affordability, with land values rising so quickly that it now takes up to 60 years of savings to afford a farm deposit. As a result, corporate farming structures, which have access to capital and economies of scale, are becoming more common. While these models can improve efficiency, they risk concentrating land ownership and reducing local community decision-making. Key concerns include the loss of family-owned farms, reduced reinvestment in local communities, and a focus on short-term profits over long-term land stewardship.

Alternative succession models, such as share-farming agreements, equity partnerships, lease-to-buy agreements, profit-sharing models, and crowdfunding, offer ways for younger farmers to enter the industry without the capital constraints of traditional ownership. These models enable gradual equity building, risk-sharing, and community support for funding.

To facilitate these models, this report suggests several policy changes, including incentivising banks to accept livestock and plant assets as loan security, government-backed loan programmes, tax incentives for succession planning, and support for financial education. Industry leaders should also encourage a cultural shift toward treating farm succession as a strategic business process.

In conclusion, ensuring the sustainability of New Zealand’s agricultural sector requires fostering diverse, innovative pathways to farm ownership, supported by government, financial institutions, and industry bodies. Collaboration is essential to preserving New Zealand’s farming heritage.

New Zealand’s economy has long relied on agriculture and tourism, industries that have shaped national identity and driven export earnings. However, both sectors face growth limitations: agriculture contends with land constraints, environmental regulations, and changing trade dynamics, while tourism is volatile and constrained by infrastructure and environmental capacity. If these industries are nearing their natural limits, the country must consider its long-term economic strategy.

As a small, trade-dependent nation reliant on imports for manufacturing, energy, and technology, New Zealand must prioritise strong export earnings over GDP. Historically, agriculture and tourism have underpinned this, but their uncertain future growth poses challenges.

Lessons from Global Agriculture
This report examines global agriculture for lessons. In Brazil, agriculture is seen as limitless, driven by vast land expansion and investment. In contrast, the UK and Netherlands deliberately constrain farming. The UK pays farmers not to farm under ESG policies, while the Netherlands focuses on high-value niches and supply chain dominance, rather than sheer production. Despite its small size, the Netherlands exports more food than Brazil by controlling logistics, processing, and distribution.

New Zealand aligns more with the UK and Netherlands than Brazil. It lacks vast arable land, and environmental policies limit production expansion. The country is losing farmland: since 2017, over 260,000 hectares of pastoral land have shifted to forestry. Sheep numbers are at historic lows, and processing facilities like Alliance Smithfield have closed due to declining supply. Simultaneously, global trade dynamics are shifting. The EU’s Farm to Fork Strategy tightens environmental standards on imports, and UK trade deals with Australia and South America undermine New Zealand’s competitiveness. Heavy reliance on China, buying 40% of dairy and 30% of red meat, also poses risks.

The Path Forward: A National Conversation
New Zealand’s agricultural growth is likely to be linear, not exponential. This report calls for a national conversation about the next 25–50 years. Should the country emulate Ireland by using tax incentives to attract high-value industries? Should it invest in processing and logistics to retain more export value domestically? Could it lead in renewable energy, digital innovation, or advanced manufacturing?

New Zealand must proactively shape its future. The UK’s experience warns of deprioritising food production without alternatives, while the Netherlands shows that controlling the supply chain can be as valuable as production.

It’s time to ask: What comes next?