Macdonald, 32, has denied murdering his brother-in-law Scott Guy, 31, in the driveway of his Feilding home early on July 8, 2010.
The Crown alleges Macdonald shot and killed Mr Guy after growing tensions over the future of the family farm they co-managed.
The first two and a half hours of a police video interview with Macdonald was shown to the jury at the High Court at Wellington yesterday.
It was the first time the jury has heard Macdonald speak since he pleaded not guilty at the start of his trial a fortnight ago.
The more than four hour-long interview was conducted at the Palmerston North police station last April 7 - the day Macdonald was arrested and charged with murder.
In the interview, Macdonald denied burning down an old house that was due to be shifted off the Guys' property - something he later admitted to.
The Crown alleges he burned down the house and later damaged a new house being built on the property to intimidate Mr Guy's wife Kylee off the farm.
In the interview, Macdonald also denied the theft of two deer from a nearby farm, which he also later admitted to.
Throughout the interview Macdonald - dressed in a green zip-up sweater - leaned against the table, crossed his arms or leaned back in his chair while talking to police.
After the video screening the trial will hear evidence from the scene at Mr Guy's house.
The trial before Justice Simon France and a jury of 11 was set down for six weeks but evidence is likely to wrap up before then.
