Associate Minister of Conservation Kate Wilkinson turned down a request by Fish and Game to increase the 2009-10 adult licence fee from $105 to $109 and other classes of licence by a similar amount.
The dispute has resulted in licence sales for the coming season being delayed.
Instead of being available from late August, they went on sale yesterday.
Federated Farmers game and pest management spokesman Donald Aubrey, in a statement posted on its website, said with fishing licences costing more than $100, the price of enjoying the great outdoors was high enough.
"Over the years, we have seen Fish and Game undertake some reckless spending at the national level, so I'm not surprised it is in need of further funding."
Even though Fish and Game had Crown Law Office advice to the contrary, it still went ahead with an unsuccessful challenge to high-country farmers' exclusive possession of pastoral leasehold land.
"This failed attempt to bypass all the work associated with walking access in the high country was a spiteful and damaging waste of the fishing and hunting licence fee," he said.
Federated Farmers had been contacted by distraught licence holders who made the same point.
The federation had been urging the Government for some time to take a close look at the legislative privilege that enabled Fish and Game to waste money on frivolous litigation, he said.
The body failed to meet its statutory obligation to control the excessive Canada geese population, which had a serious impact on agriculture, waterways and waterfowl, Mr Aubrey said.