Hopes thousands of rural workers will take advantage of new KiwiSaver changes

Farm workers, rural teachers, police and defence staff have been unable to make first-home withdrawals, because they're required to live in employer housing.

The Government's now allowing them to use their savings - including towards buying a farm.

Federated Farmers' Dairy Chair Karl Dean says they've been pushing for this change for five years.

He expects most rural workers will use the savings to buy a house rather than a farm, given the cost difference.