Labour u-turn on HB water storage

A big increase in irrigated land is supporting increased agricultural production

The irrigated land area has increased in the past five years by an area the size of lakes Taupo and Te Anau combined, Statistics New Zealand said today.

The total irrigated land in New Zealand increased by 102,000 hectares between June 2007 and 2012, new information from the 2012 Agricultural Production Census shows. “Canterbury had the biggest increase in irrigated area, with an extra 60,000 hectares since 2007 – this alone covers an area the size of Lake Taupo,” agriculture statistics manager Hamish Hill said. Other regions to gain more irrigated area were Southland and Manawatu-Wanganui. This increase in irrigated land has helped support increases in agricultural production.

Total dairy numbers also significantly increased, from 5.3 million in 2007 to 6.4 million in 2012. “The additional dairy cows will produce around four times the total amount of milk that New Zealanders consume each year,” Mr Hill said. Exports of milk powder, butter, and cheese increased by 27 percent in the last five years.

Regions that had significant shifts in dairy numbers between 2007 and 2012 included Canterbury, with an increase of 445,000 dairy cattle, Southland, with an increase of 238,000, and Otago, with an increase of 118,000. . .

That increase in production means a lot more jobs, more resilient and secure communities and more export income.

The experience in North Otago shows that the economic and social gains don’t have to come at the cost of the environment.

You’d think a party which says it supports economic growth and wants more employment opportunities would understand the benefits and support more development, but Labour doesn’t.

Minister for Primary Industries Nathan Guy says he is shocked at the Labour Party’s u-turn on supporting the Ruataniwha water storage scheme in Hawke’s Bay, despite previously indicating their support.

“The proposed Ruataniwha water storage scheme has the potential to irrigate an extra 25,000 hectares in Hawke’s Bay. This would be a major boost to exports, jobs and growth in the region.

“In October last year Labour MPs Shane Jones and Damien O’Connor visited the site and said it made a “very good case” and that “It is an obscure part of the country that [will cope] with such a large structure.”[i]

“Now they have been over-ruled by Stuart Nash, a rejected ex-MP who says “…Labour will not be funding water storage schemes if elected in 2014…”

“This is a slap in the face for farmers and Hawke’s Bay. I would have thought the severe drought this summer has made the need for this type of project even more obvious.

“The drought has highlighted that we don’t have a water shortage in New Zealand, but a shortage of storage options. We only capture two per cent of the rainfall that falls on New Zealand with the rest running out to sea.

“Water storage can have real environmental benefits. Increased river flows means more water for recreational users in summer, and improved habitats for fish and birdlife.

“This is why former Fish & Game regional manager and senior freshwater ecologist at the Cawthron Institute, Iain Maxwell, has come out publicly in support of the scheme.

“Labour are anti-progress and don’t care about jobs and investment in provincial areas. They are opposed to any new mining, energy and irrigation projects, and want to bring in a capital gains tax and an enlarged emissions trading scheme which would hammer rural communities,” says Mr Guy.

The Government is investing $80 million this year into a new Crown company to act as a bridging investor for irrigation projects. In total, up to $400 million will be invested in regional-scale schemes to encourage third-party capital investment.

The Government is also funding $35 million towards the Irrigation Acceleration Fund to help suitable projects reach the prospectus-ready stage. Last year the IAF and Hawke’s Bay Regional Council jointly funded a $3.3m feasibility study of the Ruataniwha Water Storage Project.

The drought has had a huge economic, social and environmental impact on the regions affected.

Canterbury and North Otago were insulated from the worst effects of the long hot, dry summer because of extensive irrigation.

The need for irrigation in Hawkes Bay should be obvious and it isn’t difficult to put a case for the government to help schemes get underway with for example a loan to cover the costs until the water is fully allocated.

This is just another example of labour saying it wants more growth and jobs but not supporting initiatives that will provide them/

 

Why waste water?

A woman once told me that water should be left to flow from the mountains to the sea as God intended it.

I wasn’t quick enough to ask her if God also intended oil to be left in the ground and if so was she going to stop driving a car.

Not everyone uses God as a reason to oppose irrigation but the objections by some of a dark green persuasion have a religious fervour which I don’t understand.

Irrigation has positive economic, environmental and social impacts and the absence of it where it’s needed inflicts a very high cost.

New Zealand has “heaps” of water, but the country is not good at using it efficiently, says Federated Farmers president Bruce Wills, as the country suffers one of the worst droughts in 70 years.

“We let most of it run out to sea in the winter, and the economy gets whacked, (by drought)” Wills said. . .

Government officials now believe the drought could carve as much as $2 billion out of the economy.

After selling off lots of stock because of the lack of grass and feed, farms were now like supermarkets with only half their shelves full.

“It is very hard to make money on that basis,” Wills said and when they restocked it would be at higher prices than when they bailed out and sent stock off to the works.

“It will be a tough few years to go, the impact will go on for some time,” Wills said.

There would be a “good number” of farmers making losses this year, but he hoped only a small number would be pushed to the wall and forced to sell up.

Fertiliser spending had already halted so trucks and planes were not moving and that meant a tough impact on provincial towns.

“Belts will be tightened and chequebooks put away,” Wills said. . .

But for all drought-hit farmers: “If winter comes early it will be tough,” Wills said. “A lot of farmers are still on a knife-edge and a lot will depend on what happens next month, if we get some more rain and more warmth.

“Drought is far from over when the rain comes; that’s just the start of the recovery.”

Farmers had to get through the latest drought, but plan better to get through similar future events, Wills said.

“We have massive potential in this country to sensibly and carefully irrigate vast areas of land,” Wills said.

There were big-scale proposals to help make more parts of the country less prone to drought. . .

These include the $230 million Ruataniwha water storage scheme in Hawke’s Bay.

It is proposed a public-private scheme will build a dam west of Waipukurau that would hold 90 million cubic metres, capable of eventually irrigating 30,000 hectares. At present, just 6000 hectares of land in Hawkes Bay is irrigated.

“That’s on a big scale to be more efficient, so there’s lots we can do,” Wills said, to lessen the impact of drought, including water storage, pasture management and different feed regimes and breeds that cope with drought.

The Ruataniwha scheme would build “sensible” resilience into the economy.

In South Canterbury, the Opuha dam irrigation schemes made the area “substantially” drought proof.

The Wairarapa Water Use Project plans to irrigate more than 60,000 hectares and fuel a boom in farming in the region. But the nine proposed reservoirs would also destroy 35 homes, sever roads and flood land, with local home owners concerned about the secretive process.

But Wills said water storage and irrigation had wider benefits.

“It is not just for farmers. It is for the entire economy,” he said, with the 2008 drought costing the country $2.8 billion. Those costs could be mitigated far more than they are today.

Government studies of Opuha suggest that every 1000ha irrigated created 27 jobs and injects $7.7 million into the local economy. With 30 potential projects covering around 1 million ha up the eastern seaboard that’s about $7.5 billion extra revenue for the country each year and 27,000 new jobs. . .

A few decades ago farmers often waited for government help before making decisions. Now there are no subsidies they know they have to make decisions early, and to be prepared for drought.

Wills says most farmers are good at responding to the signals of drought.

He changed the way he farmed dramatically after the last bad drought in 2007.

“This has been tough, but we have got through this drought much better than 2007, because we have done dramatic things,” he said.

In 2007, his farm had 85 per cent sheep and the balance in cattle. This year he had 60 per cent cattle and just 40 per cent sheep. “We massively changed,” he said.

Wills farms in hill country in Northern Hawke’s Bay, but after the 2007 drought he built 60 new dams for stock water, which was a cheap way to store water.

“We learnt last time, when you run out of water, you run out of options,” he said. “We get plenty of rain in the winter, just not enough in the summer”. . .

That’s where storage, for stock water and irrigation comes in.

Why waste water when there’s too much when it’s possible to store it?

If you accept that some use of water is alright, taking it from rivers at high flow and storing it until it’s needed has the least impact on rivers and a big impact on soil health, pasture growth and farming profitability.

The case for irrigation

Drought Officially declared throughout North Island:

A state of drought has been officially declared throughout the entire North Island by the Minister for Primary Industries Nathan Guy today.

“Local groups have asked for regional declarations of drought in the past week, and it has become clear that nearly all farmers in every part of the North Island are facing very difficult dry conditions.

“Extra Government funding will now be available to Rural Support Trusts who work closely with farmers, providing support and guidance.

“There will also be Rural Assistance Payments (RAPs) available from Work and Income, through the Ministry of Social Development. These are equivalent to the unemployment benefit and are available to those in extreme hardship.

“Many rural people can be reluctant to ask for help, but it is important for them to know that support is available. This is a difficult time for rural families and they need to know that the Government and all New Zealanders are behind them.

“Some rain is forecast this weekend which is welcome news. However we will need more than this to help prepare for the winter and set up for next spring.

“Parts of the South Island are also very dry, in particular the Grey and Buller districts. We are keeping a close watch on all further regions.

“I’m very pleased with how communities have pulled together to help each other out. Federated Farmers have been operating a ‘Feedline’ to match farmers with feed supplies, which is receiving good interest.

“Beef + Lamb NZ, Dairy NZ, the Ministry for Primary Industries and others have also been providing practical support.

“Farmers should contact their accountants or the IRD if they need help or flexibility with making tax payments, and standard hardship assistance is available from Work and Income,” says Mr Guy.

Previously drought has been declared in Northland and North Auckland (February 27) and in the South Auckland, Waikato, Bay of Plenty and Hawkes Bay regions (March 6).

Regularly updated drought information is available at:
http://www.mpi.govt.nz/environment-natural-resources/funding-programmes/primary-sector-recovery/droughts/dry-conditions-2012-13-faqs

This is a very strong argument for irrigation.

Nothing beats water from the sky. But when nature doesn’t co-operate irrigation helps to protect soil, keeps pastures and crops growing, stock in good condition and money flowing from farms through the rest of the economy.

It gives farmers options, makes farms more resilient and reduces the physical, psychological and financial stress of droughts.

Farmers have various tools in the drought-proofing box but none of them is as good as irrigation.

Farmers must adapt

Acting Prime Minister Bill English says farmers will have to adapt to the increasing risk of drought.

Mr English said while the Government was currently providing hardship assistance to families, farmers would have to adapt to the increasing risk of drought.

“We’ve got research in place for instance to find more drought resistant grasses and farmers have for years been adapting their management practices.”

He’s right on both the need to adapt and that farmers have being doing so for years.

North Otago has always been drought prone.

We were the first region in the country to get a rural water scheme because recurring drought made farming so difficult.

A lot of work has gone into drought-proofing including research into pasture species which withstand dry weather and practices which maximise moisture retention. But the best drought-proofing we’ve got is irrigation.

Investigations into irrigation started early last century and plans to improve and expand existing schemes are still going on.

We now have a critical mass of irrigated land to mitigate the worst effects of drought for not just farms with irrigation but the wider district.

Farmers on dry land now have options to buy feed or grazing from, or sell stock to, those with irrigation and money still flows into town.

Nothing beats water from the skies but irrigation is a good second best which areas which have previously been able to rely on rain will have to consider if the risk of drought is increasing.

Rural round-up

Primary industry experts on National Science Challenges panel on National Science Challenges Panel:

Federated Farmers is excited three experts from the primary industries are part of the eleven person panel charged with identifying New Zealand’s science challenges.

“We are excited to see the primary industries are part of tomorrow’s world,” says Dr William Rolleston, Federated Farmers spokesperson on food production sciences.

“We have three experts representing the primary industries and this underscores that primary food production and value-added processing is not just about the now, but the future too.

“Plant and Food Research’s Chief Scientist, Dr Ian Ferguson and Waikato University’s Professor Jacqueline Rowarth are highly regarded scientists.

“Both have received Royal Honours for their contribution with Professor Rowarth being a former Federated Farmers Agri-Personality of the Year. . .

Range of investors expected in regional irrigation schemes:

The superannuation fund, ACC and other private equity funds are expected to be among key investors in regional irrigation schemes, partnering with the state and regional councils.

The Government will set up a company to spend an initial $80 million on irrigation projects.

Paul Callow, a Deloitte’s partner who specialises in infrastructure and energy, says the Crown-owned company will operate like Crown Fibre Holdings, which was set up for the rollout of ultra-fast broadband.

He says the problem with projects like irrigation is that a very large capital investment is needed when there is an uncertain uptake and the private sector is not usually very enthusiastic about that risk profile. . .

Primary ITO welcomes changes to apprenticeship schemes:

The Primary Industry Training Organisation (Primary ITO) welcomes the new apprenticeship initiatives announced by government following the 18-month industry training review. Primary ITO is one of the largest ITO’s in New Zealand, facilitating training in the agriculture, horticulture, equine, water and sports turf sectors.

As the primary industry is one of New Zealand’s most important sectors, investing in the skills and knowledge of our people ensures the primary sector continues to thrive. Agricultural and horticultural products account for 40% of New Zealand’s exports. Education is vital to ensuring the productivity and profitability of the primary industries.

The recently announced changes mean that Modern Apprenticeships and other apprenticeship-type training will come under an expanded and improved scheme called New Zealand Apprenticeships. . .

First Steps to Better Farm Business Governance -  Pasture to Profit:

Good Farm Governance…”A process of Getting Advice to provide a Better Perspective”

Good Governance, Management and Operational efficiency are critical to all dairy farm businesses.

First Step to Better Farm Business Governance is to separate the Farm roles.

On every dairy farm there are Operational tasks where most dairy farmers spend most of their time (day to day routine jobs). The Management role which is making tactical decisions (organising & controlling land, resources & people).  Management is about making decisions. These tactical decisions often relate to this week or over the next one or two months.

Governance is the big picture strategy “what business are we really in? What personal & family values are really important to our business? . .

2013 AgriKidsNZ Competition set to sizzle:

The AgriKidsNZ Competition is about to launch into the Regional Finals stage around New Zealand and over 600 Primary School children are in agreement that the Regionals are the place to be!

New Zealand Young Farmers (NZYF) organise the competitions which take place alongside the ANZ Young Farmer Contest Regional Finals and TeenAg Competitions from February 9th to March 31st. The first AgriKidsNZ Regional Final takes place this weekend on Saturday 9th February in Whangarei at the Barge Park Showgrounds.

Teams of three will be tested on their knowledge of all things farming and all things New Zealand and after a whopping 600 children competed last year, organisers are looking forward to more of the same great action this year. . .

Loving the man and the land – Art 4 Agriculture:

Today’s guest blog by journalist turned farmer Bessie Blore comes to us with these words of wisdon

… there is room for fresh blood in our farming future, and there are new, inspiring, exciting stories to be started from today…

Bessie story is a fascinating and very entertaining tale.indeed. I don’t know about you but when I read this I thought to myself this must be one handsome man and one special girl.

Now we’re the only two human inhabitants of “Burragan,” 70,000 acres of grazing land, more than 100 kilometres from the closest town of Wilcannia. And over the past 24 months I have developed a passion for life on the land, and wool growing in particular, that borders on crazed and psychotic at times, I’m sure most of my city friends think I’m far too enthusiastic about dirt, sheep, and isolation.

Seriously 100 km from the closest town!!!!. You would want to pay close attention to detail writing the grocery list. . .

And:

Rural round-up

Basting a chop won’t make a steak – Chalkie:

Poor old Red Meat. There she is, best frock on, hair done, smiling with her eyes and showing a bit of leg, only to find that tarty dairy cow getting all the attention.

Dairy co-op Fonterra teased investors for years before finally letting them on to third base late last year, with explosive results. Units in its Shareholders Fund quickly shot up to well over $7 after being issued at $5.50 a mere two months ago.

Meat co-op Silver Fern Farms, on the other hand, is still working the street corner.

After a reform of its capital structure in 2009, ordinary shares in Silver Fern became tradeable by any Tom, Dick and Harry on the unlisted market, but they have not been pursued with any passion. . .

NZ meats on Singapore menu -

New Zealand beef, lamb and, most likely venison, are on the menu at the Lone Star’s first overseas restaurant in a top waterfront precinct in Singapore.

The meat, branded Pure South, is being supplied by meat processor and exporter Alliance Group to the Fern & Kiwi restaurant, an offshoot of the Lone Star bar and restaurant chain.

A New Zealand-themed menu was worked out by consultant chef Mathew Metcalfe, who has cooked for the late Steve Jobs and leading Hollywood figures.

The meat range will come from farms across the country and processed at Alliance’s Group’s eight plants. . .

Carter laments stubborn attitudes – Jon Morgan:

Outgoing Minister for Primary Industries David Carter reels off a long list of what he calls “a good number” of achievements during his four years in office, but at the end of it he has to admit to a few lows as well.

The intransigent wool and meat industries have both defeated him, as they have ministers before him.

It obviously frustrates him. He puts it down to warring personalities in leading roles and the farmers’ apathy that lets this continue. . .

NZ wool floors show crowds - Tim Cronshaw:

The reaction of customers to Wools of New Zealand’s (WNZ) carpet wool at the world’s largest flooring show has reinforced to its leaders they are on the right track with capital raising a minimum of $5 million.

A share offer to commercialise WNZ into a sales and marketing company was extended to February 25 after the capital raising reached more than $4.1m last year from 500-plus strong wool farmers committing 12 million kilograms of annual wool production.

WNZ chairman Mark Shadbolt said growing interest by spinners and manufacturers in WNZ carpet ranges at the world’s largest flooring trade show, Domotex, this month had been encouraging. The trade show was attended by 40,000-plus visitors. . .

Safety shake-up call – Gerald Piddock:

Farmers are going to have to make health and safety a normal part of running their business if the number of on-farm accidents is to be cut.

Some farmers struggle to give health and safety the same amount of attention as they do to stock health or pasture management, industry-good Farmsafe national manager Grant Hadfield says.

“It’s considered a bit of an ogre. It shouldn’t be because it’s pretty easy to put systems in place.” . . .

Plaudits for irrigation policy - Gerald Piddock:

The Government’s decision to become a minority investor in irrigation schemes will ensure those projects get off the ground, say farmers with close ties to irrigation schemes in South Canterbury.

The Government announced last week that it would establish a company to act as a bridging investor for regional water infrastructure development.

The yet-to-be-named company would take minority stakes in water projects with a long-term goal of getting out and leaving the projects to the private sector. . .

Submitters discuss Tarras irrigation scheme – Jessica Maddock:

There was passionate opposition to an Otago Regional Council proposal to invest in a $39 million Tarras irrigation scheme at a hearing yesterday, with submitters saying it would be using ratepayer money to benefit only a few.

The council is considering buying $3.5m of redeemable preference shares. It would also pay up to $500,000 annually for five years, toward the fixed costs.

Tarras Water is planning the scheme to benefit 40 families, by taking up to 73.6 million cubic metres a year from the Clutha River to irrigate about 6000 hectares.

Nearly 70 people lodged a submission on the investment proposal, with the majority in opposition.

Eleven submitters spoke at a hearing in Cromwell yesterday, before four council members. Eight opposed the proposal and three supported it. The first day of the two-day hearing was in Dunedin on Thursday. . .

Summer like it used to be

Were summers really hotter in the 1960s and 70s?

Memory isn’t always reliable but when I look back I recall day after day of sunny weather.

Almost every weekend from Labour weekend to Easter my family would pack a picnic and head to water. Sometimes it was All Day Bay, but more often we went to the river – Gemmell’s Crossing or Clifton Falls.

Sometimes we’d have a mid-week bonus trip too, taking a picnic dinner to the river when Dad got home from work.

The last couple of weeks have been just like that.

It’s great harvest weather but, as always one farmer’s dream is another’s nightmare, and many are facing drought.

while nothing beats water from the sky, irrigation ensures the grass grows when the weather doesn’t co-operate.

That is a major change from when I was growing up.

Then dry weather left the countryside parched and farmers with few options but to de-stock.

Now, thanks to extensive irrigation a good deal of North Otago is still green and growing.

$80m investment bridge for irrigation

The Speaker-elect has made a significant announcement for irrigation in his final days as a Minister:

The Government is establishing a company to act as a bridging investor for regional water infrastructure development, Primary Industries Minister David Carter announced today.

In 2011 the Government signalled plans to invest up to $400 million in regional-scale schemes to encourage third-party capital investment. Cabinet has now directed that $80 million for the initial stages of the company’s operation be set aside in Budget 2013.

“The development of well-designed storage and irrigation infrastructure has the potential to deliver significant economic growth for our primary industries and support new jobs, which will have a flow-on effect for all New Zealanders,” says Mr Carter.

“New Zealand naturally has plenty of water – this is about managing the resource better for the economy and the environment.”

Two examples of how much spare water we have is the large amounts being spilled at the Clyde and Roxburgh Dams:

 

 

 

 

 

 

 

Mr Carter says that because the opportunity to take a stake in developing regional-scale water infrastructure is new for private investors, it is appropriate for the Government to take a bridging investment role to ensure the right projects can get underway.

“The Crown-owned company will be a minority investor in any development project, and it will also plan to be a relatively short-term investor.

“A number of groups are developing proposals for these larger, regional-level schemes, and the Government expects to consider at least one proposal in the next 12 months.

“Reliable irrigation represents a major step in unlocking economic potential for New Zealand, having our tradable sectors growing strongly and delivering on the Government’s economic growth goals.

“It will also be better for the environment, as these schemes will lead to more efficient water use, and can provide for the replenishment of aquifers and the restoration of stream and river flows,” Mr Carter says.

The company will provide short-term bridging loans to irrigation schemes to enable regional projects to get underway.

The necessity for large amounts up front for schemes which will have multi-decade pay-backs has been a very high hurdle which has held back irrigation development.

The company will provide short-term bridging loans to irrigation schemes to enable regional projects to get underway.

Federated Farmers is grateful for the kick-start:

“What the Government is doing here should be applauded by environmentalists as much as it will be by farmers,” says Bruce Wills, President of Federated Farmers, speaking from his farm in the Hawke’s Bay.

“It was over 30 degrees outside and the pasture I was looking at is brown. The last significant rainfall we had here was before Christmas but I am not complaining, this is farming on the East Coast.

“In saying that it highlights the big two opportunities we have with water storage, the economic and the environmental.

“The best way to keep nutrients and soil on our farms and out of water is green living grass. It is really that simple.

“Farms like mine have dams but they can only last so long. In winter, when you see our rivers over capacity, you ask why this cannot be stored for use when we hit a dry spell like now.

 “Take the Hawke’s Bay Regional Council’s Ruataniwha Plains Water Storage Project as one example. If it comes off, it will not only be big for the Hawke’s Bay but big for New Zealand.

“The resulting reservoir will cover an area of some 372 hectares; only slightly smaller than Sydney’s central business district but around double the size of Wellington’s.

“Farmers will have to pay a water distribution price so this is not a hand out, but a hand up. The government will exit to bring in further private sector investment. We only need look to the performance of Fonterra’s units on the NZX to see what could be possible.

“It also speaks volumes that the poster project for water storage remains Canterbury’s Opuha Dam. This exercise in perseverance took years highlighting why short-term government involvement is needed to deliver economic infrastructure.

“What we know from Opuha is that since it opened there has been numerous environmental and recreational spin-offs, in addition to benefiting farmers of course.

“The Ruataniwha Plains Water Storage Project in my area will lift the area of land influenced by irrigation from 6,000 hectares to some 42,000 hectares.

“Economic analysis indicates farm output in the Hawke’s Bay will rise by $160 million each year with farm value add increasing by $70 million. That last amount includes additional household income worth $24 million each year.

“An additional 632 full-time equivalent jobs will be created and we are just talking about one project. These are real green jobs because that is the colour of the grass it will grow.

“This will greatly aid the development of not only pastoral agriculture and horticulture, but value-added manufacturing too. In early 2012, Heinz announced closure of their Australian plants in favour of the Hawke’s Bay.

“Politicians from the left and the right agree Canterbury’s Opuha Dam works, so why not speed similar projects along? This is what the Government is doing here and it will be as good for jobs as it will the environment,” Mr Wills concluded.

David Carter has been a strong advocate for irrigation in general and water storage in particular.

This initiative is a wonderful legacy from his time as Minister.

There’s an irrigation funding fact sheet here and irrigation funding Q&A here.

Rural round-up

Fonterra shares in hot demand despite unknowns – Terry Hall:

Dairy farmers should be very, very happy. It seems heaps of Asians, Australians and Kiwis want to invest in their now highly desirable, fashionable industry, even if many haven’t a clue precisely what they are putting their money into.

Even well-tested professional investors are finding the prospectus and the concept behind the $525 million Fonterra Shareholders’ Fund tough to get their heads around. It is essentially an untried investment, the first of its type ever unleashed anywhere. Essentially, owners of the co-operative company will retain full control while opening an investment opportunity to outsiders. This is to provide additional finance to further expand a crucial part of their business, which the farmers seem reluctant to do themselves. . .

Fonterra is a price taker - Milking on the Moove:

Following on from my post about how New Zealand agriculture can learn from Apple, I thought I’d look at some New Zealand companies that are doing well overseas.

Geoff Ross is a former advertising executive who rose to prominence when he founded 42 Below, the Vodka company. He and his partners have gone on to invest and run other companies which they take public. The companies Geoff and co have invested in are Ecoya which makes candles and Moa Beer.
I think he is an interesting business person to study because he hasn’t invented anything new or created a unique product. He has simply taken products which are already common place, but he creates brands that enable him to sell these products at a premium price. . .

Scientists looking at smarter irrigation technology:

Lincoln University researchers are investigating the use of microwave technology to improve efficiency and reduce water wastage from farm irrigation.

The university’s research subsidiary, Lincoln Ventures, has won government funding of almost $850,000 over two years to put its smarter irrigation concept to the test. . .

Fernbaby marketing infant formula – Sally Rae:

When it comes to travelling, Tianxi Shao could be considered a frequent flyer.

The Chinese businessman and sporting enthusiast has visited 60 countries, yet fell in love with New Zealand, captivated by the “clean, green image”.

Mr Shao is now principal of Fernbaby, a company formed to provide a locally-made high-quality alternative to the Australian and Singaporean-made infant formulas, which it says dominate the New Zealand market. . .

Wool-Rich Innovations Take Centre Stage at Shear Brilliance:

Fill your living environments with wool and do it in style – that’s the message from the Campaign for Wool.

The Campaign is hosting HRH The Prince of Wales today at Shear Brilliance – a wool showcase at The Cloud, Queens Wharf, Auckland (1pm today).

“From a carpet couch to a wool peg necklace, from grass grown on wool dags to Tiki artwork on Merino, from Zambesi’s carpet bag to the loftiness of wool knops, Shear Brilliance will surprise and delight anyone who might have thought wool was passe,” says Stephen Fookes, Chair, Campaign for Wool New Zealand. . .

Shearing Showcase At The Cloud For Prince Charles

New Zealand’s shearers and wool handlers have welcomed the opportunity to join Prince Charles in Auckland today at Shear Brilliance, a showcase celebrating the Campaign for Wool.

As patron of the campaign Prince Charles supports the industry’s efforts to raise awareness of wool’s virtues and while In New Zealand for the Queen’s Diamond Jubilee celebrations visits the Cloud in Auckland to inspect a wool showcase staged by the industry.

President of the New Zealand Shearing Contractors’ Association Barry Pullin says Royal patronage at Shear Brilliance is an opportunity for the industry to state it’s fundamental principle that more successful farmers will sustain a more successful wool industry.  . .

Farmers urged to take early action to prevent crop damage

Auckland/Waikato Fish & Game is urging farmers to make plans now for reducing the damage that can be caused by large flocks of Paradise shelduck, and other game birds.

Game Bird Manager David Klee says that with summer approaching, farmers will start to see large groups of birds moving into their newly-planted crops.

“We urge farmers to plan ahead to reduce the damage done by these flocks,” he says. “We encourage farmers to place bird-scaring equipment out before the new grass or crops start emerging and providing birds with an easy source of food.” . . .

Rural round-up

Landcorp pursues dairy growth:

 

Landcorp Farming expects substantial further growth in last year’s record dairy production, through the joint venture with Shanghai Pengxin of China and enlargement of established dairy complexes including Wairakei Estate in the central North Island.

Subject to the outcome of legal proceedings in the Supreme Court, Landcorp and Shanghai Pengxin intend forming a joint venture company, Milk New Zealand Farm Management Ltd, to operate the farms and explore other opportunities for growth in dairy production in this country. . .

BNZ Appointment Reflects Growing Importance of Irrigation Projects:

 

Guy Ensor is on a mission to support some of the most critical infrastructure developments New Zealand will see this decade. He has been appointed BNZ’s first national manager, water and irrigation. The position has been established in recognition of the growing significance of the national freshwater resource.“Our long-standing relationship with the agricultural sector has made us acutely aware that the sustainable management of New Zealand’s freshwater resource is absolutely critical to New Zealand’s future,” says head of agribusiness, Richard Bowman.

“All New Zealanders have a common interest in ensuring the country’s freshwater lakes, rivers, aquifers and wetlands are managed wisely. Guy’s specific combination of experience will ensure BNZ contributes to that,” he says. . .

 

Research unit going 50 years: Annette Scott:

The Lincoln University-based Agribusiness and Economics Research Unit (AERU) was established in 1962. Its key objective was to better integrate research in respect to the place of agriculture in New Zealand. The core mission of the AERU is to exercise leadership in research for sustainable well-being with researchers working together to produce and deliver new knowledge.AERU operates as a semi-autonomous research centre at Lincoln University providing research expertise to a wide range of organisations in the public and private sectors.

Research is focused on economic, resource, environmental and social issues with the unit also co-ordinating some of the external research undertaken by academic staff from other Lincoln University faculties. . .

 

A country a day for Peterson:

 

BLNZ CHAIRMAN Mike Petersen is in Europe this week on a whistle-stop visit to farming leaders in seven countries in just eight days.

It’s an annual event, meeting officials from the European Commission in Brussels, and farming leaders in Ireland, England, Scotland, Wales, France and Germany.

“Europe is such an important market for sheepmeat and increasingly for beef. I will meet EU officials to talk about our expectations of the sheepmeat quota. It’s no secret we’ll be well under with quota – about the 80% mark – well below where were three years ago when we were 98%,” he says.

 

Woman survives ramming by 650kg steer: Caroline King:

 

A woman repeatedly rammed by a 650-kilogram steer walked away from the attack with no broken bones after the heroic actions of her boss.Tania Kiely was tagging steers at a farm at Decanter Bay, Banks Peninsula, about 12.30pm on Monday when the steer attacked.

Kiely, 40, was only a couple of metres away from the animal when it charged.

“I was pushing them up into the race at the time.

“I remember it looking at me,” she said.

“It put its head down and ran at me. . .

 

The social impacts on snow on farmers – Terri Russell:

Making new friends is one way Southland farmers can cope with the stress of snowstorms, new research says.

Farmers were hit hard during the September 2010 snowstorm when about one million lambs died in the south and milk production was disrupted.

A research team from the University of Canterbury and Lincoln University have looked at ways that Southland farmers can better prepare for a similar event.

Lead researcher Zachary Whitman said findings so far showed a significant social impact on farmers. . .

Here are the jobs #2

The Wairarapa water use project group working on a large-scale irrigation project says it has narrowed the number of potential water storage sites in the region down to 30.

Large-scale irrigation is music to the ears of farmers and others who realise the environmental. economic and social costs of droughts.

It is also a red rag to the green bulls who think water should flow from its source to the sea untouched by human hand or enterprise.

However, the people who oppose irrigation, like many who oppose mining, often the same people who keep asking the government where are the jobs?

In North Otago we are benefitting from the jobs which have come with irrigation.

Two of our neighbours are in the process of completing dairy sheds and two houses. We built a new dairy shed and house last year and are about to start building another house.

That’s jobs for everyone involved in the building and for the people who will be living in the houses.

These are just on our farm and two neighbouring properties, other farms in the district have or are building too. There are also more jobs in supplying and servicing farms and the people who work on them.

None of that work would have been available if it had not been for irrigation.

The economic and social gains are obvious and thanks to strict conditions on water takes by the irrigation company  which strictly monitors the impact on soil and water, they haven’t come at the cost of environmental degradation.

Rural round-up

Rates gouge farm incomes – Tim Fulton:

Thank goodness export prices are strong because a Beef + Lamb New Zealand report says local authority rates have risen cumulatively by just over 30% over the past five years.

“At an average increase of 6.1% each year it defines the expression ‘inflation busting’,” Federated Farmers local government spokesperson David Rose said when The New Zealand Farmers Weekly showed him B+LNZ’s figures.

The rates insight is part of the Economic Service’s regular survey of on-farm costs, combining data from Statistics New Zealand with its own assessments. . . 

Looking beyond the dollars at Winter Dairy Days:

Helping dairy farmers look ‘beyond the dollars’ at their whole farm system management is the goal of a series of winter dairy workshops being held by the Dairy Women’s Network around New Zealand in June and July.

The five workshops are being held in Winton, Rotorua, Cambridge, Hokitika and Nelson at the end of June and beginning of July and are a great follow on from the Essential Farm Finance days run by the Network earlier in the year.

Ngatea dairy farmer and farm consultant, Julie Pirie, will lead four of the workshops, with Te Anau dairy farmer Anna Kempthorne speaking at the Winton event. . . .

NZ Farming Systems cuts FY guidance as dry weather reduces milk production – Hannah Lynch,

NZ Farming Systems Uruguay, the South American dairy farmer controlled by Singapore’s Olam International, will miss its target to break even on a pretax basis this year after dry weather stunted pasture growth and milk output.

Farming Systems is now forecasting a loss of US$3 million to US$5 million on an earnings before interest and tax basis. The company will break even once it accounts for a fair value adjustment in the value of livestock, it said in a statement.

“Milk production continues to increase significantly year on year, although the very dry summer and autumn weather in Uruguay along with the later-than-expected completion of the new dairies, has resulted in milk production to date being below forecast,” it said. . .

Arable farmers cut back grain in favour of seed crops:

Arable farmers are cutting back on wheat and barley for next season and planting more seed crops in response to falling grain prices.

Growers cut back on seed production last year in response to higher grain prices but increased wheat and barley production and record yields created high stock levels and reduced prices.

Federated Farmers grain and seed chair Ian Mackenzie says the one contract price offered for milling wheat so far has dropped from about $460 to $420 a tonne.

Feed grain contract prices have dropped from about $410 to $360 a tonne.

Water storage scheme ‘vital’ for Hawke’s Bay farmers:

A central Hawke’s Bay farm consultant says farmers regard a proposed $220 million water storage scheme as being a vital step in the economic growth of the region.

Hawke’s Bay Regional Council has this week been hearing submissions on the Ruataniwha scheme, which could provide irrigation to 22,500 hectares of farm land.

Consultant Roy Fraser has visited northern Tasmania where he says farmers have been using water storage for more than 70 years. . . 

Dairy breeding a family tradition – Hugh Stringleman:

Stuart Bay retired on May 31 as chairman of the dairy co-operative LIC, the fourth generation of his family to serve on livestock improvement co-operative boards.

After 37 years of dairy herd improvement governance, perhaps Bay has seen and done it all?

No way. Bay would like his 22 years on the LIC board over again, for a ring-side seat for what he believes are the most exciting years to come in dairy genetics.

LIC is beginning to deliver genomics science, which promises dairy farmers routine gene fingerprinting of their calves, to quickly identify the most productive milkers and their predisposition to faults and diseases.

Trees on farms workshop : maximizing marginal land use:

A Trees on Farms workshop particularly designed for Maori landowners and farmers taking an inter-generational view of their land management options is being held in Ohope on Wednesday 20 June.

This workshop will focus on in the opportunities and benefits trees can provide in developing management for the marginal or less productive parts of the farm, and those attending will be able to discuss tree planting options with Maori land owners, experienced farm foresters and regional council staff.

The workshop and field trip will feature the Ohope property of Ngāti Awa Group Holdings, looking at trees as an intergenerational land management tool providing sustainable agribusiness solutions and enhancing long term land use. . . 

Israeli micro-irrigation expert wins world food prize

Israeli micro-irrigation pioneer Daniel Hellel is the 2012 World Food Laureate:

An Israeli scientist who pioneered a radically innovative way of bringing water to crops in arid and dry-land regions was named the winner of the 2012 World Food Prize in a ceremony today at the U.S. State Department, at which Secretary of State Hillary Rodham Clinton delivered the keynote address. 

“Water has been a very big topic of concern here in the State Department,” Clinton said. “We have tried to focus our government’s attention and the world’s attention on the importance of getting ahead of what will be a devastating water crisis if we are not smarter and more purposeful in addressing the problems now. It’s especially fitting that we honor today someone who has made such contributions because he understood the critical role that water plays in agriculture and the importance of getting every last drop used efficiently.

I’m delighted to see the importance of irrigation acknowledged in this way and the reinforcement of the need to use it efficently. His achievements are summed up here:

Dr. Hillel’s pioneering scientific work in Israel revolutionized food production, first in the Middle East, and then in other regions around the world over the past five decades.  His work laid the foundation for maximizing efficient water usage in agriculture, increasing crop yields, and minimizing environmental degradation. 

This is something all irrigators should do as normal practice.

First drawn to the critical needs of the water supply in arid regions during his years of living in a small settlement in the highlands of the Negev Desert, the new approach Dr. Hillel developed provided for a low-volume, high-frequency, calibrated water supply to plants. As such, his research led to a dramatic shift from the prevailing method of irrigation used in the first half of the twentieth century: applying water in brief periodic episodes of flooding to saturate the soil, followed by longer periods of manufactured drought to dry out the soil. The new innovative method developed and disseminated by Dr. Hillel applied water in small but continuous amounts directly to the plant roots, with dramatic results in plant production and water conservation.

Dr. Hillel’s development and promotion of better land and water management clearly demonstrated that farmers no longer needed to depend on the soil’s ability to store water, as was the case when using the previous method of high volume, low frequency irrigation. The technology he advanced, including drip, trickle and continuous-feed irrigation, has improved the quality of life and livelihoods throughout the Middle East and around the world.

Dr. Hillel proved that plants grown in continuously moist soil, achieved through micro-irrigation, produced higher yields than plants grown under the old flooding or sprinkler irrigation methods. Using less water in agriculture per unit of land not only conserves a scarce resource in arid and semi-arid regions, but also results in significantly “more crop per drop,” with the successful cultivation of field crops and fruit trees — even in coarse sands and gravel. 

By integrating complex scientific principles, designing practical applications, and achieving wide outreach to farmers, communities, researchers, and agricultural policymakers in more than 30 countries, Daniel Hillel has impacted the lives of millions.

Dr. Hillel’s water management concepts—promoted by the U.N. Food and Agriculture Organization as HELPFUL (High-frequency, Efficient, Low-volume, Partial-area, Farm-unit, Low-cost)—have spread from Israel to Asia, Africa, Australia, and the Americas. HELPFUL irrigation technology is now used to produce high-yielding, nutritious food on more than six million hectares worldwide. Dr. Hillel also helped devise a range of other adaptable, sustainable water management techniques for arid regions.  Specifically, harvesting rainwater by inducing and collecting runoff from sloping ground can allow farmers to grow crops on previously barren lands.

His innovative approaches to enhancing infiltration and reducing evaporation through soil surface treatments have enhanced agricultural productivity. He has defined ways to control the leaching of solutes, the water-logging of root zones, and the erosion of topsoil by precisely determining the supply of water required with only small increments of percolation and drainage needed to prevent salt accumulation.

Salt accumulation isn’t a problem in New Zealand but control of leaching, water-logging and soil erosion are concerns everywhere.

We don’t face water shortages as dire as those in many other countries, but irrigation is important in drought-prone areas like much of the east coast of both main islands. We need exports if we want to retain first-world status and the world needs more of the food we produce so well.

More irrigation will help us produce more and while Dr Heller’s methods might not be best here the principles of  efficient and responsible use

Rural round-up

Richard Steele and his son, Dan, run an eco-tourism operation on their 1500ha sheep and cattle station near Owhango, which is south of Taumarunui and which borders the Whanganui River.

 They delight in showing visitors one of the river’s special dwellers, the whio, or blue duck. This area is one of the bird’s last strongholds, in part because the Steeles declared war on the stoats, rats and feral cats that drove the birds to the edge of extinction . . . .

Irrigation fund’s first project great news for Hawkes Bay - David Carter:

 This week’s announcement of the first project as part of the Irrigation Acceleration Fund (IAF) is great news for the Hawke’s Bay region.
The go-ahead for the project delivers on the Government’s promise to lift economic growth through efficient use of water storage.
The Government and the Hawke’s Bay Regional Council will jointly fund a $3.3 million feasibility study of the Ruataniwha Water Storage Project. . .

James Cameron is a Titanic opporutnity for farming:

With James Cameron stating to the Overseas Investment Office (OIO) that he not only intends to make New Zealand home, but that he intends to farm the two properties he has purchased, Federated Farmers believes it unlocks a titanic opportunity.

“This successful application by Mr Cameron shows why Federated Farmers position on overseas investment, is that the rules we have must be applied without fear or favour,” says Bruce Wills, Federated Farmers President.

“The hope we have from skilled immigration is that it betters the whole community.

“One example of what I mean is Federated Farmers Board member, Anders Crofoot, who was a past Wairarapa provincial president.  Anders and his family moved from the United States to take over Castlepoint Station in the Wairarapa. . .

Rowath to lead agri-business:

Professor Jacqueline Rowarth, a regular NBR columnist, has been appointed Professor of Agribusiness at the Univerity of Waikato Management School (WMS).

“The Waikato is agribusiness heartland, close to the HQs for Zespri, Fonterra, Ravensdown, Ballance, TruTest and Gallaghers among others — and the University does a lot more with agribusiness than people realise,” she says. . .

Wool press on display - Sally Rae:

The latest in rural technology, equipment and ideas will be on display at the three-day Southern Field Days at Waimumu this month.   

More than 26,000 visitors are expected at the 16th biennial event, about 12km from Gore, from February 15 to 17.   

Among the technology will be the Mosgiel-designed and built Micron wool press, manufactured by P and W Engineering, which will be on display at the Elders site. . .   

Funding for bio farming:

THE DAIRY industry is funding a scoping study into biological farming systems.  

DairyNZ will sponsor the study by New Zealand Biological Farming Systems Research Centre (NZBFSRC). The study will identify research interests and needs on biological farming systems in New Zealand. This will be done by contacting farmers, firms and other research organisations who have been working in the area of sustainable farming. . .

New wheat cultivars anticipated from cereal breeding partner:

An expanded breeding programme will result in new varieties of wheat and barley being made available for New Zealand growers, delivering high yields and improved resistance to disease.

Plant & Food Research and Luisetti Seeds have signed an agreement to renew and expand their cereal grain breeding programme, the largest of its kind in New Zealand. The programme will focus on the breeding of new high yield wheat cultivars with good milling quality and dough properties, as well as new wheat and barley cultivars for animal feed. . .

Weather sweet for busy bees - Jacqui Webby:

Beekeepers in North Otago are having an  excellent season with the  reasonably mild start to the spring and timely showers of rain to keep the clover flowering.

Beekeeper Michael Lory, of Windsor’s Snow Crest Apiaries, said the honey season was still in full swing and it had been excellent. . .

Promoting excellence in irrigation:

Time is closing in on the search to find the best innovation in the New Zealand irrigation industry.

Innovation, discovery and achievement making a positive contribution to irrigation and efficient water management are set to be rewarded by the industry’s national body with an award that aims to uncover the industry’s progressive and exciting happenings.

Entries are due to close for the‘Innovation in Irrigation’ award being co-ordinated by Irrigation New Zealand in association with Aqualinc. . .

Water storage makes sense and cents

The real summer weather holiday makers are enjoying isn’t quite as good for farmers trying to grow pasture and crops.

In year’s gone by the prolonged dry spell in North Otago would have cut farm production and income with the consequent impact on people and businesses who serviced and supplied farmers.

Those on dry land farms will be finding it tough but there’s now sufficient critical mass of irrigation to keep up production on many farms.

However, there is potential for more irrigation with water sotrage which makes sense and cents.

Federated Farmers president Bruce Willis says:

This shows why our push for water storage infrastructure has been heeded by Government. It will provide New Zealand’s farm system with a means to store rainfall when it’s plentiful, a bit like the way water is stored by our towns and cities.

If you want an economic argument for why water storage makes sense, go no further than November’s Overseas Merchandise Trade statistics. These trade statistics came out of a fairly benign winter and spring.

In the  year to last November, the agricultural sector accounted for six of the top-ten physical exports. However, in terms of export dollars, the sector accounted for 80 percent of the top-ten; around $25 billion out of $31 billion.

“When we talk agriculture we include all the work done inside and outside the farmgate. That means our farms and factories generated almost 68 percent of New Zealand’s physical export dollars. Out of our top 40 export commodities, agriculture’s share was 71 percent.

“This is not just a dairy story as meat and forestry all turned in double digit growth too. Wool is now just below $800 million for the year to November and that’s up 31.5 percent on last year.

“Equally impressive are less glamorous but valuable exports like leather as well as animal and vegetable fats. Both recorded year-on-year increases well over 20 percent highlighting that the agriculture sector as a whole is delivering what New Zealand needs.

“This export performance given the current rain, or lack of it down south, underscores why water storage is an economic no-brainer. Water storage is all about future proofing.

That performance is good. With more water storage it could be even better and play an even bigger role in economic growth.

Irrigating for good

The enthusiasm shown by Irrigation New Zealand and Federated Farmers for National’s proposal to establish a $400m Crown Water Investment Company is not shared by everyone.

The opposing view is well illustrated by this:

It’s been announced that 400 million dollars from the sale of state assets will be used for farm irrigation. What are the chances that farmers accessing this money will first have to demonstrate that farm run off doesn’t end up in the nearest rivers and waterways? That waterways are effectively protected by effluent tanks, tree planting to help sieve excess minerals, and so on …

The answer to that can be seen from every window in my house which looks out on green paddocks.

They are that colour now because of rain, but if it wasn’t for irrigation and the good it does in this drought-prone region we would have no certainty they would stay that colour over summer.

The introduction and expansion or irrigation have provided social and economic benefits accompanied by environmental protection and enhancement.

The fertile soils are no longer in danger of being blown away. Not only are waterways not being contaminated by run-off, the Waiareka Creek which was little more than a series of stagnant ponds most of the year is flowing cleanly.

We’re irrigating for good here because that was a requirement of the North Otago Irrigation Company’s resource consent. Every property taking water from the scheme has to have an environmental plan to ensure efficient use of water, fencing and planting alongside waterways and preventing run off. These plans are independently audited every year and if farmers don’t comply with them the company won’t supply water.

In yesterday’s ODT Sally Rae writes of how water has turned the valley into a power house, interviewing farmers and others involved in irrigation who show it is useful for a lot more than dairying.

Mistakes have been made in the past, but new irrigation schemes can learn from those and follow the example of the North Otago ones which have done so much good for the area and the wider economy without causing environmental harm.

Water is the key

Federated Farmers’ new president Bruce Wills says water is the key to both economic growth and environmental enhancement:

Water is to New Zealand what black coal is to Australian exports.  It’s the true backbone.

The challenge for us as the agricultural sector, from farm to processing plant, is to state the environmental case.   If we do not put the environmental case alongside the business case, the regulatory brakes will come on at the behest of the wider community. 

This is our call to step up.

It’s no good for us to have access to investment cash, willing investors and a world wanting our exports, if schemes get knocked back in the Environment Court or by the Environmental Protection Agency.

Half the game is to meet limits around water quantity. In this arena, rural water infrastructure can deliver positive wins for the environment, one example being minimum ecological flows while delivering reliable water to primary producers.

Native fish and water fowl cannot inhabit rivers that dry up over summer.

But the other half of the game will be to meet limits around water quality.  This is where the real challenge comes.

Will increased production from irrigated land inexorably drive increased leaching? Can we secure environmental integrity alongside economic growth? These are tough questions being asked right now let alone what will come.

In the next four decades, we could easily increase the amount of people we can feed some 2.5 times.  From 20 million to 50 million people plus.  We have immense opportunities to export agricultural services but none of these things matter, unless we can take our communities with us.

The world is short of food, many areas in New Zealand have the potential to produce more providing they can get reliable water.

The challenge is to convince those who might oppose development, that irrigation and the increased production it enables won’t come at the expense of the environment.

Our district has been transformed by irrigation.

Instead of playing catch-up between droughts, farmers have been able to budget on reliable production under irrigation. Rural communities have had a population boost as new jobs have been created. Soils which would have blown away in droughts, have been anchored down by pasture thanks to irrigation.

As well, independently audited environmental farm plans, ensure the protection and enhancement of land and waterways.

The NZIER looked at “The economic impact of increased irrigation” last November, estimating the economic benefits for ‘NZ Inc’of 14 schemes under development.

These 14 schemes will deliver an irrigated area of 350,000 hectares, 270,000 hectares being in Canterbury. 

By 2026, these 14 schemes will deliver extra production worth $2 billion a year at the farm gate and almost $4 billion in exports.  This, by the way, is 2010 dollars too.

This is a significant increase on the $23 billion in primary exports from 2008/9.  Off-farm infrastructure costs with water storage are relatively modest compared to the real gains in agricultural output. 

Water storage offers bangs for modest bucks.  The 2011 National Infrastructure Plan goes further echoing what Federated Farmers has said for years.  Water is our unique competitive advantage and is fundamental to economic growth. 

The economic and social benefits are obvious.

The challenge is to provide the evidence that rather than coming at an environmental cost, irrigation can protect and enhance land and waterways and provide enhanced habitats for wildlife.

Water makes us lucky

When our average rainfall is about 20 inches and that can get down to not more than half that in a dry year we’re loathe to say we’ve had too much rain.

After an unusually wet start to the year and with something like May’s total rainfall coming in 12 hours last Saturday, we’re beginning to think we’ve had enough.

However, although a wet autumn happens now and then we know dry years are more common. We’ve enjoyed the respite from irrigation but it hasn’t stopped the work that’s going on further irrigation development which we know will be needed to insure against the worst effects of the next drought.

In light of this the government’s water policy package,  announced by Environment Minister Nick Smith and Agriculture Minister David Carter is very welcome.

It includes:

• A National Policy Statement on fresh water management to set a consistent, nationwide regulatory framework for setting water quantity and quality limits to govern the allocation and use of freshwater
• An Irrigation Acceleration Fund of $35 million over five years to support the development of irrigation infrastructure proposals to the ‘investment-ready’ prospectus stage which could unlock the economic growth potential of our primary sectors through the development of more efficient and effective water infrastructure, such as storage and distribution
• A Fresh Start for Fresh Water Clean Up Fund to assist councils with historic pollution problems with reprioritised funding of $15 million over two years, and a total clean-up programme commitment of $264.8 million
• The Government will also consider in a future Budget investing up to $400 million of equity in water infrastructure schemes.

Federated Farmers says the water policy, including storage, will cement New Zealand as the ‘lucky country’.

“This Government is serious about playing to New Zealand’s natural competitive advantage and that’s agriculture,” says Lachlan McKenzie, Federated Farmers co-spokesperson on water.

“While Australia digs themselves up, we’re hard at work to convert our rainfall into renewable and sustainable food and fibre exports.  Water is behind everything we export and these exports directly pay for policing, doctors, nurses and teachers. 

“The $35 million investment in the Irrigation Acceleration Fund over five years shows how a modest investment in agriculture will yield long term results. 

“The Opuha Study showed that for every dollar invested in water storage, eight dollars was generated through the economy.  If you take that and add it to today’s announcement and future plans, you are talking about a multi-billion dollar uplift.

“The $35 million for the Irrigation Acceleration Fund is easily as significant for New Zealand’s economic development as the Government’s $40 million underwrite of the New Zealand Venture Investment Fund last August.  Except every dollar invested in agriculture goes a long, long way.

“It’s also a major vindication for Federated Farmers pushing water storage well before the Prime Minister’s 2009 jobs summit.  What we are talking about is a boost for jobs and a boost for the regional and national economy.

“The 2007/08 El Nino influenced drought cost the economy $2.8 billion and is now seen as the probable cause of the last recession.  Water storage provides a way to smooth out periods of low rainfall because what we are talking about, is storing from what naturally falls from the sky.

“But we are excited to see the Government openly talking about a potential $400 million worth of equity for the construction of regional-scale schemes that will encourage third-party capital investment.

“This is the first time in years we have seen Government grasp the enormous opportunity to future proof not just our agricultural industries but our towns and cities as well. 

“It’s significant because Government is willing to get off the side-lines given it’s an ideal form of a private-public partnership,” Mr McKenzie concluded.

Feds chief executive Conor English issued a statement earlier on the importance of water storage :

Water storage will enable “more fish and less drought” and build resilience into our economy and environment. In the city you don’t have to wait for the rain to fall before you have a cup of tea. In the city, we have access to water at the right place at the right time. In the city we store water, we bank it, we save it on a rainy day so we can use it when it isn’t raining. So why not do more of the same in the country?

It’s not that New Zealand is running out of water, it’s that water is running out of New Zealand.

The Greeks, Romans and Egyptians built their civilisations on water. We know from the Opua dam that the environment, recreational values, the economy and community spirit are all enhanced by using smart water storage strategies. I’ve yet to meet a fish that doesn’t like water 365 days a year.

Government studies of that project tell us that every 1000ha irrigated creates 27 jobs and injects $7.7 million into the local economy. With 30 potential projects covering around 1 million Ha up the eastern seaboard that’s about $7.5 billion extra revenue for the country each year, and 27,000 new jobs. Over a decade that’s $75 billion extra cash for the country, if all potential projects came to 100% fruition, which is unlikely however.

Irrigation has made a significant difference to the economic and social life in North Otago. Strict requirements for environmental farm plans, which are independently audited each year, help ensure that this doesn’t come at the cost of the environment.

Economic impact of drought not just local

Agriculture MInister David Carter has declared a medium level drought in the Waikato Region and Ruapehu District  which is concerning not just for these areas but the wider economy.

Less production on farms means less employment not just on farms but in businesses which service and supply farms. It also means less export income. As Quote Unquote says:

Slightly more seriously, this affects everyone in New Zealand because the Waikato is the main part of the NZ dairy industry which is the main part of NZ’s exports which are what pays for our imports.

There is dairying in many other regions now but some of them are on the brink of drought too

Declaration of drought triggers government assistance but as Federated Farmers Waikato Provincial President Stew Wadey points out this doesn’t mean hand-outs to individuals.

  “There is no direct financial support to farmers because of this drought declaration. It bothers me when I see letters to the editor making this false point.

“The only way a farmer will qualify for welfare is if they were already eligible for welfare payments. It’s means tested, same as any other WINZ payment, and a drought declaration makes no difference to this criteria.

“There are around 30,000 working farmers nationwide, and less than 100 are actually receiving support. But the facts of life are that with two consecutive droughts some farmers can’t survive.

“This adverse event declaration also gives us access to advisory services that are extremely beneficial for us. That’s not just farm management advice, but also counselling services and Rural Assistance Payments.

“RAPs basically advise and assist extremely marginal farmers who need to exit the business. It’s similar to a small business manager being appointed by a Ministry of Economic Development body to a struggling company in the city.

“The drought declaration also allows Inland Revenue to give farmers the ability to file accounts later, so that’s one less thing to worry about. . .

There is nothing we can do about the weather but more irrigation would help temper the worst effects of a lack of rain.

“But what I think we need to do now is work with the councils and Government on water storage options to help reduce the risk of drought in the future. You can never be too prepared.

“Basically, pasture needs three things: water, sunshine hours and decent soil temperatures.

“Rather than riding the rollercoaster trying to guess what each next season will bring, we can control these conditions much more readily with a reliable and steady supply of water.

North Otago now has sufficient area under irrigation to ensure production continues and money will keep flowing in to town. But there is potential for more irrigation in our area and in many other parts of New Zealand.

Our problem isn’t lack of water, it’s just some of the water isn’t where it’s needed, when it’s needed and storage would help solve that problem.

Irrigation isn’t as good as rain but it is far better than no water at all and the more irrigation there is, the less harm drought does to agriculture and the wider economy.

Economic, environmental and social boost from irrigation

North Otago Irrigation Company’s scheme has created 76 new jobs and boosted farm incomes by $44 million dollars.

This was the finding of a Waitaki Development Board study.

The results showed the scheme was “the single most significant economic development” project in the Waitaki district in recent years, board chairman Peter Robinson said yesterday.

The study of the farms in the scheme revealed some phenomenal increases, exceeding the expected performance and making larger gains than originally forecast at the time resource consents for water from the lower Waitaki River were granted.

For example, revenue from the irrigated properties has increased from $21 million without irrigation to $65 million with irrigation.

“This is the single most significant economic development scheme the Waitaki District has seen in recent years – these results would not have been achievable without this investment,” Mr Robinson said.

I don’t think the study took into account the development which took place in expectation of the irrigation scheme which would have created a similar number of jobs.

The social benefits are also significant. For the first time since the ag-sag of the 80s farmers’ adult children have returned home in reasonable numbers, reducing the average age of the rural population which had been increasing for more than 30 years.

There were eight houses in our road before irrigation, now there are 13, with another planned for next year. The school had to put on a bigger bus to cope with the increase in pupils.

The irrigation scheme will also have been one of the factors in an increase in the number of births at Oamaru Hospital – 86 eight years ago and a record 103 last year.

Last summer’s drought was one of the worst for years – we had only about half our average annual rainfall in the year to March.

In the past this would have had a devastating impact not just on farmers but on the people who supply and service them and this would have flowed on to significant reduction in spending in Oamaru. The lack of rain last summer was very difficult for farmers on dryland but there are now enough irrigated properties to insulate the wider community from the worst of impacts of drought.

The environmental impact has also been positive. A condition of the NOIC consent was that all shareholders have to have environmental farm plans which are independently audited each year to ensure that water and soil quality are safeguarded.

The downlands which received water from the NOIC scheme have good soils but were prone to wind erosion in droughts. Irrigation means that is no longer a concern.

Some farmers have pulled out trees to cater for centre pivot irrigators. But others have used the reliable water supply to increase plantings and many have also channelled water into gardens.

One of the biggest benefits from the increased irrigation is difficult to measure but obvious to anyone who knows the district. That’s the change of mindset. Without irrigation North Otago farmers always had to farm for droughts – going backwards when it was dry and playing catch-up when it rained.

Even the most optimistic people found it difficult to retain a sunny outlook under those circumstances. Thanks to irrigation, instead of focussing on how to stop going backwards they are able to put their energy and enthusiasm into activities which make a positive difference on farms and in the wider community.