A Rural Innovation Lab will be set up in Palmerston North with a $400,000 boost from the Government's Provincial Growth Fund.
It was announced this morning the lab would be based at Massey University.
The lab would work with farmers and growers across Manawatu and Whanganui to drive new thinking in the primary sector - particularly around digital farm opportunities.
Regional Economic Development under-secretary Fletcher Tabuteau said the initiative would improve land use, and unlock economic opportunities.
"This project will help to unlock new economic opportunities across the region," Tabuteau said.