National's $300m cheap-loan plan for farm water storage, explained
National says it will make $300 million in low-cost loans available for farm water storage if it is re-elected, starting with five prioritised projects. The pledge only applies under a re-elected National Government. The Post
What the announcement says
The commitment is set out in a National Party announcement titled 'Securing water and fertiliser to back NZ farmers'. National Party The party's listing dates it 9 Oct 2026 and attributes it to Todd McClay and Mike Butterick.
In that material, the party said a re-elected National Government would make security of New Zealand's water and fertiliser a priority. The loans are concessional. That means the interest and terms are cheaper than a standard commercial loan, like a lower-interest mortgage for irrigation schemes.
What Federated Farmers says
Federated Farmers welcomed the scheme. It said the scheme would help get water storage projects built. RNZ
The response came from Richard Dawkins, the organisation's water storage spokesperson. He described the $300 million as low-cost loans to build storage. He said it is a loan, not a grant. He said it was not a subsidy to pay the full cost of building projects.
Dawkins said the Government should go further. He said it should also contribute to construction costs. His point is the difference between cheap finance to help projects proceed, and direct Crown money towards the build itself.
He said storage could help farmers be more resilient to adverse weather events. He said it could unlock economic opportunities for rural communities.
The broader context here is the tool National has chosen. Concessional loans lower the cost of borrowing for local promoters, without the Crown taking the full construction risk. That is a different choice from a grant or an equity stake. For farm groups and irrigators, the test will be whether the loan terms are good enough to make schemes workable through consenting, design and construction.
Looking at what this means for the campaign, the conditionality is clear. The offer exists only under a re-elected National Government. By naming five projects to start with, National has set a list it can be judged against. Federated Farmers has banked the promise, but put its next ask on the record early: loans plus a Crown contribution to construction.
