Luxon got out of the tractor cab sporting a wide smile.
“That was great fun — the highlight of my day,” Luxon said.
The agricultural sector was the most important sector in New Zealand, Luxon said.
“It is the backbone of the New Zealand economy. It drives 11 per cent of our GDP, employs 13 per cent of our people and feeds 40 million people around the world, and is 80 per cent of our export earnings.”
In a media stand-up in the middle of a fleet of John Deere tractors at the Southland Farm Machinery site, Luxon was asked what he was going to do to stimulate the rural economy.
Part of his plan included doubling export revenue in the next decade, he said.
“If we get agriculture growing at 2 per cent a year, we end up creating $35 billion of growth for the New Zealand economy.”
On-farm inflation for farmers was “massive”, he said.
“They are dealing with interest rates and mortgages on top of that. It is a killer, and that is why we are determined to focus on the root cause of it, which is inflation.”
The plan was to get the economy “aerated and moving” and roll out actions every financial quarter for the next few years.
Agriculture Minister Todd McClay was asked whether he believed National Lamb Day (February 15) would help increase the price farmers were getting for the commodity.
The lamb price has fallen due to an oversupply of the commodity from Australia.
The Government would focus on reducing costs on-farm, including fixing some of the unworkable regulations farmers were facing to ensure their exports remained competitive in international markets, McClay said.
“Many sheep and beef farmers are not sure they can survive any longer.”