Agriculture and Forestry Minister David Carter has announced the first allocation of funding from the Primary Growth Partnership.

The partnership, launched last year, aims to invest up to $140 million a year in primary sector growth and innovation.

The Foundation for Arable Research, the Forest Owners Association and New Zealand Merino Company will collectively receive $20 million over the next five to seven years.

The money will be used for research projects to harvest trees on steep hill country, produce grasses with natural deterrents in them to keep birds away from airports and parks, and to expand the merino industry.

Federated Farmers President Don Nicolson says they’re keen on the business plan that New Zealand Merino has put forward, which intends to generate $868 million added value for the fine wool industry by 2019.

As well, $1.73 million of the new funding will go  into research and product development of a deterrent grass for wildlife, and insect control. John Caradus, Chief Executive for Grasslanz Technology, says New Zealand is already the world leader in grass seed production.