Word of the day

September 14, 2017

Pirr – a state of agitation or excitement; a fit of anger; a gentle breeze; a light wind.

Advertisements

Rock solid

September 14, 2017

Image may contain: 1 person, text

This rock isn’t for moving. We stand by our plan. #backing bill #partyvotenational


Rural round-up

September 14, 2017

Maniototo farmers challenge Ardern to visit them on water tax

A group of Central Otago farmers are challenging Jacinda Ardern to visit their farms to discuss Labour’s water tax plans.

The group of women, known as Water Maniototo, say they cannot afford a royalty on irrigated water, planned at one to two cents per thousand litres of water, and it could drive some off their land.

Francine Hore, who farms sheep at Patearoa, says she supports fixing up the nation’s waterways, but many farmers are doing everything they can already. . . 

Lambs hit $7/kg – Annette Scott:

Low global stocks pushing lamb markets above the odds for this season is positive news for the New Zealand sheep industry but farmers are not yet jumping with excitement, Federated Farmers meat and fibre chairman Miles Anderson says.

Latest trade statistics revealed average export prices for both chilled and frozen product were tracking well above any prices seen in recent years, including 2011, the last time NZ saw such strong global demand for lamb.

Demand for chilled lamb had held solid in recent months, driven by the tight supply with chilled prices reaching historically high levels. . . 

Broken business makes comeback – Annette Scott:

From a business that was “essentially broken” to one recording a modest profit in less than 12 months, NZ Yarn is now poised to add value for New Zealand woolgrowers.

Over the past year the Canterbury yarn processor has spun its own turnaround project.

Getting back on its feet to lift returns for farmers and shareholders had been the focus of NZ Yarn’s reinvention, chief executive Colin McKenzie said.

“A year ago the business was essentially broken.

“We have reinvented, repositioned and resized operations and moved from making sizeable losses to recording our first modest profit in July,” McKenzie said. . . 

Millions tune in watch start of fresh NZ milk sales to China through Alibaba – Gerald Piddock:

Milk New Zealand’s trade agreement with global online retailer Alibaba has been launched with millions of Chinese consumers tuning in to watch the event.

The Chinese-owned company’s Collins Road Farm is just south of Hamilton and its 29 New Zealand farms will supply Alibaba with fresh milk to be sold on its online platform.

Organisers of the launch rented a satellite facility for the day to enable it to be live streamed directly to China. In attendance were 10 of China’s biggest social media influencers including Yuni and Joyce, who are known as the Chufei Churan twins in China.

The pair are considered the Chinese Kardashians with social media follower numbers larger than New Zealand’s entire population. They and other influencers videoed the event and the farm directly to their followers in China. . . 

Water royalty point of divergence – Nicole Sharp:

Water and the environment are two of the key talking points for Southern Rural Life readers this coming election. As voting day fast approaches, reporter Nicole Sharp talked to the candidates in the rural electorates of Waitaki and Clutha-Southland about these two issues that will affect rural voters.

Water is crucial to the agricultural sector and all candidates and their parties standing in the Waitaki electorate this upcoming election want to do all they can to preserve water quality now and in the future, they say.

Current Waitaki MP and National candidate Jacqui Dean said National’s new policy statement on freshwater, which was announced last month, would pursue a target of 90% of rivers and lakes swimmable by 2040. . .

 

Canterbury cropping farmer embraces environmental limits – Tony Benny:

Third-generation Canterbury cropping farmer David Birkett isn’t phased by tougher environmental regulations and says they can even lead to an improved bottom line. He talked to Tony Benny.

David Birkett’s farm is near Leeston, not far from what has been called New Zealand’s most polluted lake, Te Waihora/Ellesmere, and he’s well used to close scrutiny of the environmental effects of farming there by the regional council, members of the public and media.

“There’s a bit of pressure on farmers but they gain out of it, that’s the silly thing. I can’t understand someone who doesn’t bother to try to do the best they can because your bottom line is going to be better,” he says.

“Doing some measuring and making sure you know what’s needed, most of the time you’re actually financially better off than what you’d previously been doing.” . . 

Adding value more than just adding cost – Nigel Malthus:

The term ‘value added’ is too often used as a vague generic, and farmers need to consider specific strategies for adding value, says Rabobank analyst Blake Holgate.

Speaking at the recent Red Meat Sector conference in Dunedin, Holgate noted that most lamb was still exported frozen, returning $6906/tonne instead of chilled at $11,897/t.

“By and large we’re still treating sheep meat as a commodity market, so the lower value frozen export market still makes up about 80% of what we export, while the higher value chilled market, that’s worth nearly twice as much per tonne, is only 20%. . .


Thursday’s quiz

September 14, 2017

You’re invited to pose the questions.

Anyone who stumps everyone will win a virtual vase of camellias.


More tax and bigger budget hole

September 14, 2017

Labour has been frightened into saying it won’t implement any recommendations of its tax working group until after the 2020 election.

But a Labour led government would still add the water,  regional fuel and visitor taxes; reverse the income tax cuts that every party but Labour voted for; and bring farming into the ETS.

And if they don’t introduce new taxes their Budget will have a bigger hole.

A Taxpayers’ Union media release points out:

The Taxpayers’ Union says Labour can’t have it all ways, pointing out that Labour’s manifesto is costed at $23 billion over the next Parliamentary term, second only to New Zealand First.

“Labour have done the right thing in committing to put any capital gains or land tax to the vote,” says Jordan Williams, the group’s Executive Director. “But without new revenue, and having promised new spending of $13,287 per New Zealand household, Labour need to explain what spending they’ll cut in order for Grant Robertson to keep to the Party’s debt targets.”

“Two plus two doesn’t equal five.  Labour can’t credibly promise to hike spending, keep to their debt limits, but also say they won’t hike taxes.  It just doesn’t add up.” . . 

The only way to spend more without taking more in tax is to increase debt.

Labour’s fiscal plan shows it would reduce debt more slowly than National would.

The plan also had a hole, unless you believe a Labour-led government would run zero Budgets.

Ruling out a Land and Capital Gains Tax in the next term is the right thing to do but it will make the hole in Labour’s budget bigger.

 


Rural round-up

September 14, 2017

Politicians blame dairy farm ‘villains’ for water pollution – Peter Jackson:

One of the more disturbing aspects of this election campaign is that we are being invited to vote for, or against, future taxes that will not be quantified until some time after the next government has been formed.

Casting a vote always involves an element of trust, especially under MMP, where proposed policies come up for negotiation in the process of forming a government.

This is wonderful for politicians, who know full well that come September 24 they will be able to trade away what they promised 24 hours earlier. . . 

Composting barns can be a dairy solution – Keith Woodford:

There is increasing recognition that 24/7 paddock wintering of cows is not the way forward for New Zealand dairy. The challenge is to find solutions. These solutions need to achieve good environmental management, they need to be animal friendly, and they also need to make economic sense.

Over recent months I have been on a personal journey of learning about composting barns. That journey is ongoing and I have more to learn. But I am now at a point where I am confident that composting barns can be a major part of the strategic solution for New Zealand dairy. They can be win-win-win for the environment, for animals, and for profitability.

There is one important qualification to the above statement. It is that none of us yet have all of the answers for New Zealand conditions. Also, there is evidence that some farmers are going into composting barns with a poor understanding of the critical factors for success. . . 

The Resilient Farmer – Beatties’ Book Blog:

The Resilient Farmer

Doug Avery

Penguin

RRP $40.00

‘I am filled with rage. So much rage. I raise my fists to that impassive sky and I bellow like a bull. And those clouds, those beautiful, dark, moisture-filled clouds, vanish out to sea. And my wife, who has also felt the lash of my anger and my nasty,

drunken misery, watches me through the windows of our front room, and is afraid and helpless.’

By turning his thinking around not only did it save his farm from ruin, it also saved his marriage and probably his life. . . 

DairyNZ election draws in farming expertise:

Two positions on DairyNZ’s board have attracted six dairy farmer candidates for this year’s director election.

From September 25, levy-paying dairy farmers will vote for their preferred candidates – farmer colleagues whose experience and leadership could help shape DairyNZ priorities and objectives.

Electionz.com returning officer Anthony Morton says levy-paying farmers will have a month to vote. . . 

The most dangerous phrase in the English language? We’ve always done it this way.

Kiwi Ingenuity of “Black Water Rafting” Continues to Thrill – 30 Years On:

The Legendary Black Water Rafting Company Celebrates 30 Years

One of New Zealand’s most iconic adventure tourism offerings – Black Water Rafting – celebrates 30 years this month. Pioneers within New Zealand’s adventure tourism industry, Waitomo’s Legendary Black Water Rafting Company was born in 1987 – taking visitors through Waitomo’s glowworm studded underground world in inner tubes. Thirty years later, today hundreds of thousands of adventure seekers have taken part – including Peter Jackson, Chelsea Clinton and Katy Perry.

The idea for Black Water Rafting came from Waitomo local Pete Chandler – who developed the business along with partner John Ash – and New Zealand’s first professional adventure cave guide Angus Stubbs – who is still with the company and also celebrates 30 years service this month. In 1987 Pete enticed adventurous backpackers to experience Black Water Rafting for $10, the team drove their branded ute around encouraging adventure seekers to enjoy the underground thrill. . .

 


How much more do you want to pay for food?

September 14, 2017

We don’t know all the details but we do know that a Labour-Green government would impose new taxes on farming:

Green Party and Labour Party policymakers want to hit dairy farmers with a trifecta of environmental taxes that could cost an average of $18,000 per year for each farm, and for those farmers that draw water for irrigation the cost would be in excess of $63,000 per year, says DairyNZ chief executive Dr Tim Mackle.

“But unlike winning the trifecta at the horse races, there’s nothing for New Zealand’s dairy farmers to celebrate,” says Dr Mackle.  “Our economists calculate that the proposed carbon tax would add an average of $6,850 to each farm’s costs, the nitrogen pollution tax would add $11,232 per farm – and then there’s Labour’s proposed water use tax which would add a further $45,000 average for farms irrigating.”   He notes that of New Zealand’s 12,000 dairy herds, 2,000 use irrigation.

“The tax trifecta would severely reduce dairy farm profitability, and possibly require additional borrowing for some farmers to meet expenditure.  It would impact the success of our rural economy, and put at stake the livelihood of our rural communities.” 

It would also inevitably lead to an increase in the cost of food, and that’s without a land and capital gains tax.

Dr Mackle says if a political party had asked him what the dairy sector wanted from Government, he would have said an economy-wide plan outlining the emission reduction expectations for each sector over the longer term.

“Targeting farmers this severely and swiftly does little to incentivise mitigation, and ignores the hard work farmers have been voluntarily doing themselves to lessen emissions.

“Dairy farmers have been operating in a climate of uncertainty with no indication of when they would be faced with a charge for agricultural emissions. Despite this, we have put the Dairy Action for Climate Change plan in place so that all farmers now know what they can be doing right now to reduce their carbon emissions.”

He says the Greens’ leader James Shaw welcomed the climate change plan when it was announced in June.

“He’s well aware of the work currently underway. However, what might be a surprise to him is that we support the concept of a climate commission, and the idea of clear carbon budgets so the dairy sector can plan for the future.”

Dr Mackle adds that the Dairy Action for Climate Change plan is in partnership with Fonterra, and has the support of the Ministry for the Environment and the Ministry of Primary Industries.

“It dovetails with the work of the Biological Emissions Reference Group (BERG), a joint sector and Government reference group. BERG’s purpose is to build robust and agreed evidence on what farmers – that’s dairy, beef, sheep and deer – and the horticultural sector can do to reduce emissions, and to assess the costs and opportunities of doing so. BERG’s final report is due later on this year, and will be vital in informing future policy development on agricultural emissions.”

He says New Zealand is acknowledged as a world-leader for efficiently producing milk on a greenhouse gas per unit of milk basis, as reported by the United Nation’s Food and Agriculture Organisation.

“And we’re committed to doing even better, but it must be understood by everyone, including the Government of the day, that climate change is too complicated for each sector to attempt to address on its own.

“Rather than strongly taxing dairy, we want strong Government direction to get all sectors – rural and urban – to work together through an economy-wide plan to reduce New Zealand’s greenhouse gas emissions over the longer term.”

Brendan Moyle writing at Sciblogs has calculated the cost if agriculture is forced into the ETS:

. . . Some back-of-the-envelope calculations show putting agriculture into the ETS isn’t straightforward. Supposing the price of carbon is say, $16 per tonne, and 1 kg of beef protein takes the FAO average (see below) of 342kg of CO2 emissions.  If a beef cattle yields 200-250 kg of meat (about 1/6th of which is protein), then that’s about 40kg of protein. That’s associated with about 13-14 tonnes of CO2. So that’s an additional cost of about $200 per beef steer. Any way you play with these numbers, the cost of sheep, beef and dairy farming in NZ is going to rise dramatically. . . 

If the cost of farming increases dramatically profitability drops and the price of food will increase.

If emissions drop here it will be because herd numbers drop. Out competitors in other countries will take up the slack and global emissions will increase because they aren’t nearly as efficient as we are.

Until science comes up with ways to reduce emissions, forcing agriculture into the ETS is just tax for tax’s sake.

It will hit farmers and the New Zealand economy without improving the environment.

Rather than leading to environmental improvement it will lead to an increase in emissions in other countries whose governments are sensible enough to leave agriculture out of their emissions targets.


%d bloggers like this: