Rural round-up

What is gunna happen – Gravedodger:

In the last month I have been fortunate to access a couple of reasonably inaccessible bits of the SI High Country, The Middle Clarence Valley and last weekend country around the Pahau and Dove Rivers in Nth Canterbury.

The two areas have been or are involved in “Tenure Review”, or as one wag described it Ten Year Review. A process where the Crown negotiates the retirement of some of the land in the CRL, Crown Renewable Lease, and the Leaseholder gains a Freehold Title to some of the more productive areas. One thing that becomes apparent is the retired land is exposed to major problems from weed and animal pests as the control of them exceeds DOC’s abilities and resources and the land that is retained for pastoral use is still being managed and will be kept relatively clear of gorse, broom, blackberry, briar and animals such as possums, ferrets, pigs, rabbits and deer. . .

(He’s got some stunning photos which you’ll see if you click the link above).

Leaving the farm – Offsetting Behaviour:

Bill Kaye-Blake says there’s not much that can be doneabout long-term trends towards rural depopulation. And he puts rural New Zealand especially on the wrong side of broader trends:

Technology isn’t going to be the saviour of rural New Zealand. We’ve been hearing for years that new communications technologies (will) allow us all to work from home, the cafe, and the beach. We do that to some extent. A few people do build business empires on the back of broadband. But we also spend lots of time in our offices, seeing and talking with our co-workers. One of the interesting economic geography arguments I’ve seen is that technology is making face-time more valuable. As a result, work that requires us to spend time with each other is becoming more highly paid, and work that can be made routine and parceled out in bits and bytes is becoming less valuable. New Zealand is on the wrong side of that trend, and rural areas even more so.

Let’s take the agglomeration economic geography arguments as starting point. Tech is more a complement to big cities than they are a substitute for face to face interactions. Who gets the strongest benefit from this in a world that’s mostly free-trading? Big global cities, not Auckland. Our small size makes us, over time, less competitive in sectors that compete with international big-city industries; our comparative advantage then pushes farther towards agricultural production. . .

If dairy farmers want to farm in the black they need to be green – Passture to Profit:

The NZ dairy industry is in a very interesting place right now. On one hand they generate serious export dollars; their contribution to the national income is undeniable. The wealth generated by dairy products means that most New Zealanders enjoy a good standard of living. On the other hand they are viewed by increasing numbers of thinking New Zealanders as exploiting our natural resources to the detriment of the environment. Sir Paul Callaghan spoke at the “StrategyNZ: Mapping our Future conference” in March 2011, pointing the finger at dairy farmers but also illustrating the economic reality.  http://www.youtube.com/watch?v=OhCAyIllnXY&feature=related

Dairy farmers have a real challenge: – to produce milk but to reduce the impact on the environment. . .

New Zealand a place where talent wants to live and proudly farm – Pasture to Profit:

“New Zealand…A Place Where Talent Wants To Live” this was the NZ strategic vision that Sir Paul Callaghan(New Zealander of the year 2011 & ex Massey University Scientist) spoke so passionately about before his death last week. http://www.youtube.com/watch?v=OhCAyIllnXY&feature=related  Sir Paul Callaghan was a world class scientist, leader & a passionate advocate for a better more prosperous New Zealand. He was a great orator & he had a vision of a “knowledge driven economy” based on excellence & research & development . . .

Schedule setting process as much art as science – Allan Barber:

The weekly schedule setting process is a hallowed meat industry tradition which determines what farmers will receive for their livestock during the week beginning with the Sunday evening phone calls from buyers.

The process itself remains almost a total mystery to those on the receiving end, but it delivers certainty of livestock value in any given week. It enables a farmer to decide if it’s time to sell or worth hanging on another week or two, provided there’s enough feed and value to be gained from holding on.

The lead up to the weekly schedule is a fairly complex set of inputs to arrive at an assessment of what each species and grade are actually worth to a meat processor and exporter at the moment of purchase. That is the first slightly unusual thing to observe about the process: the procurement price does not equate to the final selling price, which will only be known at a whole variety of different times in the future when the various cuts and components of the livestock have been sold. . .

Dairy restructuring Ammendment Bill attracts differing views – Allan Barber:

Fonterra chairman, Henry van der Heyden, says that monitoring the milk price is not necessary, but “we can live with it”, particularly with Commerce Commission oversight, while Simon Couper, Fonterra Shareholders’ Council chair, believes it to be draconian with the potential over time “to destroyNew Zealand’s biggest, most successful and most important export industry.”

Federated Farmers’ dairy section head, Willy Leferink, inclines more to Couper’s view than van der Heyden’s, stating that Feds look forward to submitting on the bill at the Select Committee stage, because “If the policy settings for milk pricing at the farm gate become arbitrary, then it’ll not only shoot our largest export industry in the foot, it will directly affect the price consumers pay for their milk,” he warned. . .

Otago dairy award judges give winning advice:

Entering the Otago Dairy Industry Awards three times has set James and Helen Hartshorne on a pathway to success – with the couple claiming the region’s top prize, the 2012 Otago Sharemilker/Equity Farmer of the Year.

“The judging feedback showed us that although we were competent at running the practical side of our farm, we would gain huge benefit from a better understanding of and an ability to analyse the financial and business side of our operation,” the Hartshornes said.

“And as a result of contacts made through our judging panels we secured our first 50:50 sharemilking job.”

The couple won $16,600 in cash and prizes at last night’s awards held at Balclutha Memorial Hall. The 2012 Otago Farm Managers of the Year, Gareth and Angela Dawson, and 2012 Otago Dairy Trainee of the Year, Richard Lang, were also announced. . .

Southland dairy winners share strengths:

The big winners at the 2012 Southland Dairy Industry Awards are newcomers to the province, who share common interests and business strengths.

Winton 50% sharemilkers Billy and Sharn Roskam won the Southland Sharemilker/Equity Farmer of the Year title and Edendale contract milkers Hannes and Lyzanne du Plessis won the Southland Farm Manager of the Year contest.

The 2012 Southland Dairy Industry Awards were held last night at Ascot Park Hotel in Invercargill. The other major winner was Robert Ankerson who won the 2012 Southland Dairy Trainee of the Year title.

Both the Roskams and du Plessis’came to Southland to further their dairy farming careers, and say their teamwork is a key to their farm business success. . .

Small farmers fear squeeze by corporate owners:

Some farmers fear they are being squeezed out of the property market by corporate owners with better buying power.

As dairy farms become larger and more expensive, corporate ownership is becoming more prevalent.

Federated Farmers dairy chairperson Willy Leferink says corporate owners tend to own more than one farm and can use their buying power to negotiate hefty discounts. . .

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