Federated Farmers says the Parliamentary Commissioner for the Environment's report into fracking will help ease farmer concerns about the practice.
The Commissioner released an interim report on Tuesday that agreed with international studies that the environmental effects of hydraulic fracking can be managed if best-practice procedures are followed.
Fracking, or horizontal hydraulic fracturing, is the mining practice which injects a mixture of water, sand and chemicals at extreme pressure to break open cracks, as a drill bores through oil and gas bearing rocks.
Federated Farmers energy spokesperson Anders Crofoot says farmers in the Taranaki region had raised concerns about the possible impact of fracking on groundwater supplies.
Mr Crofoot says fracking has been carried out for 20 years in Taranaki without no ill effects.
He said much of the recent concern was probably as a result of some of publicity about fracking operations overseas where different techniques are used.
Mr Crofoot says the Commissioner's finding that fracking is very unlikely to contaminate ground water is good news but says it's also clear the industry needs better regulatory oversight from Government.