A programme to develop precision fertiliser application for hill country properties is expected to generate $120 million a year in economic benefits to New Zealand by 2030.
The Ministry for Primary Industries has approved co-funding of $5.13 million for the seven-year ''Transforming Hill Country Farming'' Primary Growth Partnership.
That amount will be matched by fertiliser co-operative Ravensdown, while the research partners are Massey University's Precision Agriculture Group and AgResearch.
The programme will combine remote-sensing of soil fertility on hills with GPS-guided aerial topdressing to improve hill country productivity and reduce nutrient run-off.
It was an ''excellent example'' of harnessing modern technology to transform farming on hill country which was facing some serious challenges, Ministry for Primary Industries deputy director-general Scott Gallacher said.
Ravensdown chief executive Greg Campbell said the partnership would enable hill country farmers to grow more pasture and increase returns, as well as reduce the environmental effects of fertiliser application.
''If we grow more pasture, our beef and sheep production will rise at a time when those farmers desperately want to reverse the gradual decline of the past years,'' he said.
''The challenge has been: how do you better feed those hill country soils so they can grow more grass without wasting fertiliser or degrading the environment?''
The research would develop remote sensors which could scan for areas that needed different amounts of fertiliser. A plan could then be prepared and sent to the GPS-equipped topdressing planes.
Ian Yule, of Massey University, described the combination of technology as a ''world first''.
The programme was planned to begin this year with the gathering of data from eight research farms, which would feed into development of the systems needed to apply the fertiliser to the land.
The other PGP programme announced yesterday was a project led by the Whai Hua group to develop probiotic dairy health products. It would involve Miraka Ltd, the first Maori-owned dairy processing company, and Wairarapa Moana Incorporation, which runs dairy and forestry operations.
