The Rise of Regenerative Agriculture: Path to Sustainable Farming

In recent years, regenerative agriculture has gained significant traction, offering a promising approach to farming that prioritises soil health, biodiversity, and long-term sustainability. As global consumers increasingly demand environmentally friendly practices, regenerative farming is emerging as a key solution for addressing the challenges of modern agriculture while maintaining profitability.

What Is Regenerative Agriculture?

Regenerative agriculture is a holistic farming approach that focuses on restoring and enhancing the natural ecosystems within farmland. Unlike conventional methods, which often deplete soil and rely heavily on chemical inputs, regenerative practices aim to rebuild soil organic matter, improve water retention, and promote biodiversity. Techniques such as cover cropping, rotational grazing, reduced tillage, and integrating livestock with crops are central to this approach.

Why the Growing Interest?

The rise of regenerative agriculture is driven by several factors:

Environmental Concerns: Farmers are under increasing pressure to reduce their environmental footprint. Regenerative practices help mitigate climate change by sequestering carbon in the soil and reducing greenhouse gas emissions.
Consumer Demand: Globally, consumers are showing a willingness to pay a premium for products that are sustainably and ethically produced. This trend is creating new market opportunities for farmers who adopt regenerative methods.
Economic Benefits: While transitioning to regenerative farming requires an initial investment, it can lead to long-term cost savings by reducing reliance on synthetic fertilisers and pesticides. Healthier soils also result in higher yields and better-quality produce.
Resilience to Climate Change: Regenerative practices improve soil structure and water retention, making farms more resilient to extreme weather events such as droughts and floods.

Benefits for New Zealand Farmers

For our agricultural sector, regenerative farming offers unique advantages. Our country’s reputation for clean, green produce aligns perfectly with the principles of regenerative agriculture. By adopting these practices, farmers can strengthen their position in international markets while contributing to the preservation of New Zealand’s natural resources.

Additionally, regenerative agriculture supports the long-term viability of farming operations. Healthier soils mean more productive land, reduced erosion, and improved water quality - benefits that extend beyond the farm gate to the wider community.

Challenges and Opportunities

While the benefits are clear, transitioning to regenerative agriculture is not without challenges. Farmers may face initial costs, a learning curve, and the need to adapt traditional practices. However, support is growing, with organisations offering training, resources, and financial incentives to help farmers make the shift.

A Sustainable Future

Regenerative agriculture represents a shift in how we think about farming - not just as a means of production but as a way to restore and sustain the land for future generations. For New Zealand farmers, it’s an opportunity to lead the way in sustainable agriculture while reaping the economic and environmental rewards.

As interest in regenerative farming continues to grow, now is the time to explore its potential and support its adoption across the sector. We can guide you through the financial and operational aspects of adopting regenerative practices. From budgeting for the transition to identifying potential funding sources, we can help you embrace this sustainable approach.

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What does a cut to the official Cash Rate mean for you

29 May 2025

On 28 May 2025, the Monetary Policy Committee agreed to reduce the Official Cash Rate (OCR) by another 25 basis points to 3.25%. This planned cut to the official Reserve Bank of New Zealand (RBNZ) rate is aimed at stabilising economic conditions in Aotearoa and for inflation to stay within their target of 1 - 3%. But how will a drop to a 3.25% rate affect your small business? The key business pros and cons of the OCR cut A cut to the OCR has both potential benefits and drawbacks for New Zealand-based small business owners. Here's our breakdown of the possible implications for your business: Potential benefits Reduced borrowing costs – a cut to the OCR means lower interest rates on loans, including business loans and mortgages. This could mean easier, and potentially cheaper, access to capital for your small business, helping you finance your planned growth initiatives, equipment purchases or operational costs. Increased investment – with borrowing costs now dropping, it’s a good time to look for business funding and finance. With repayments lower, you could look to invest in expansion, innovation or hiring new employees (all key elements of growth for 2025). Improved cashflow – with your loan repayments now smaller and more manageable, you free up cash for the business. This liquid cash can be used to reinvest in the business, cover your increasing operating expenses or build a financial buffer. Boosted consumer confidence – a lower OCR can sometimes lead to higher consumer spending, with customers feeling they have more cash in their pocket. If you’re a B2C business, this can lead to boosted sales and increased revenue. Potential drawbacks Slower economic recovery – the OCR is often used to stimulate economic activity, but, paradoxically, in certain circumstances, it can actually slow down recovery. A cut could benefit businesses in the long run, but a slower economic recovery may mean lower sales in the short to medium term. Inflationary risk – cuts to the OCR could lead to future inflation spikes. Lower interest rates lead to cheaper borrowing and more spending. As prices and spending rise, so will the rate of inflation. Potentially, this could increase operating costs for your businesses. Uncertain impact on interest rates – the high street banks won’t always pass on the full OCR reduction to borrowers. It's important for you to shop around and compare interest rates between business banks, to ensure you're getting the best deal. Talk to us about the impact of the OCR for you business The impact of the OCR cut on your business will vary, depending on factors like the industry you trade in, access to capital, and your reliance on consumer spending. A further cut is possible in May, especially given recent global economic instability. Talk to our team about how the OCR cut may affect your business plans for 2025 and beyond. We can help you: Review your loan options and whether refinancing makes sense. Plan for growth and extra investment, using the potential cashflow boost Keep an eye on inflation rates and how to adjust your pricing Keep up to date with the OCR and the major NZ economic situation.

Key Points from the 2025 Budget

26 May 2025

Here’s a quickfire summary of Budget 2025. The Budget has increased spending in health, education, defence, and law and order, as well as delivering targeted support for business investment and infrastructure growth. Investment Boost The new "Investment Boost" tax incentive aims to accelerate business capital spending. From 22 May 2025, businesses can immediately deduct 20% of the cost of eligible new plant, equipment, technology, or work vehicles in the year of purchase—on top of standard depreciation rules. The scheme also applies to new commercial buildings, which are otherwise ineligible for depreciation. There is no cap on the value of assets claimed. KiwiSaver Significant changes to KiwiSaver take effect from 1 July 2025. Government contributions will halve to 25 cents per dollar (capped at NZ$260.72 annually) and will be removed altogether for individuals earning over NZ$180,000. Eligibility is being extended to 16- and 17-year-olds, with compulsory employer contributions starting 1 April 2026. The minimum contribution rate for both employers and employees will increase to 3.5% in April 2026 and to 4% in April 2028. However, members may apply for a 12-month “savings rate reduction” to remain at 3%. Health A $7 billion increase in health funding will support infrastructure upgrades, additional capacity for elective surgeries and outpatient services, enhanced dementia and aged care, and longer prescriptions (up to 12 months) for those with chronic conditions. Education Education receives a major funding boost to improve support for students with additional learning needs. This includes hiring more specialist staff and teacher aides, building new classrooms for children with disabilities, investing in early numeracy interventions and improving school attendance by tackling truancy. Defence Defence spending rises to fund modernisation across land, sea, air, and space. The Budget includes funding for new maritime helicopters, two new aircraft to replace an ageing fleet, and investment in cyber and space capabilities to improve NZDF readiness. Infrastructure A significant increase in capital investment will support upgrades across multiple sectors. Key projects include improvements to the national rail network, new school facilities, an expansion of Christchurch Men’s Prison with 240 high-security beds, and a new housing fund to build more social and affordable rental homes.

Wellbeing Toolkit at your fingertips

12 May 2025

Mental wellbeing is a valuable business asset. Employers who prioritise it have better engagement, reduced absenteeism and higher productivity. New tools make it easier to incorporate wellbeing principles into your health and safety plan. Heard of The Five Ways to Wellbeing? They are simple and proven actions you can introduce in your workplace to help staff find balance, build resilience, and boost their mental health and wellbeing: Connect: feeling close to and valued by others boosts wellbeing. Take a moment every day to connect with colleagues. Be Active: being physically active improves physical health and can improve mood and wellbeing, decreasing stress, depression, and anxiety. Go for a walk or run. Step outside. Take Notice: pay more attention to the present moment, thoughts, feelings, and the world around. Keep Learning: be curious. Try something new. Take on a new responsibility. Give: acts of kindness, small or large, can increase happiness and life satisfaction. Do something nice for a teammate. Thank someone. Volunteer. It sounds simple but it’s often the simple things that fall through the cracks. Workplaces have a legal responsibility to manage risks to mental health and wellbeing just like they do any other health and safety risk. Employers are recognising that wellbeing is an asset. An Australian study found employers who take effective action to create mentally healthy workplaces can expect a return on investment of $2.30 for every dollar spent. Workplaces that prioritise mental health have better engagement, reduced absenteeism, and higher productivity, while people have greater morale and higher job satisfaction. Have you incorporated measures to support wellbeing into your business’ health and safety plan? A toolkit that makes it easy to support your people to build the Five Ways into their day-to-day lives can be found on the Mental Health Foundation’s website .

The Rise of Regenerative Agriculture: A Path to Sustainable Farming