Wairarapa grain storage set to benefit farmers

Wairarapa farmers and allied contractors will reap the benefits of a $1.55 million loan from the Regional Infrastructure Fund to support the establishment of a new grain drying and storage facility in Carterton.

The loan will enable farmers to store up to 4000 tonnes of grain in the region instead of trucking it to Manawatu for storage, Associate Regional Development Minister Mark Patterson says.

The creation of the facility will help support more than 300 workers across farming, transport, contracting and advisory services in the region.

A large locally based facility will improve costs, efficiencies, and resilience for both grain producers and local farmers who rely on the grain for stock feed.

Growers have had to store excess grain outside the region, which increases costs and reduces margins for both producers and contractors,.

This has been compounded by rising diesel prices piling on the costs of transporting grain elsewhere for storage and then back again when needed. This investment restores essential infrastructure and keeps more value in Wairarapa.

A scalable grain-drying and storage facility is more viable and affordable for Wairarapa growers than the storage, seed-cleaning and processing facilities initially proposed, Mr Patterson says.

Wairarapa farmers will benefit from a new seed-cleaning and processing facility in central Hawke’s Bay that the Government is also supporting with a $3 million RIF loan.

The funding is subject to the establishment of a grower-led company to build and run the facility, provision of at least $800,000 of grower equity, and suitable site, delivery, consenting and financial arrangements.