Rural round-up

Dairy farmer confidence is improving but there are challenges in export markets – Point of Order:

The dairy industry  has  recovered some  of  its  confidence, as  its  role  as the  backbone  of  NZ’s  export structure has  moved  into sharper  relief  in the  Covid-19  pandemic.

Rabobank’s  latest quarterly survey of  farmer confidence says  it  has improved from  minus 32%  to minus 23%, with  demand  for  NZ dairy products  holding up well  since the  previous survey  in September.

The  dairy  industry  over  past  seasons   has  been the  target  of  urban critics  for  so-called   “dirty dairying”, climate  change  warriors  who want a reduction in methane emissions,  and the  government, which is implementing  new  freshwater regulations. Internally the industry was  stricken  with  the  financial  woes   of   Fonterra.

Even  now  as the  industry absorbs the evidence  for greater  confidence,  it   is  not  without  strategic  concerns.  . . 

Fonterra’s new ‘carbon zero milk’  50 Shades of Green:

Reading this week about the launch of Fonterra’s ‘Five anchor milks are now carbon zero’ we learned that this product claim would be achieved by gaining off-sets through funding a solar farm in India and a wind farm in New Caledonia.

In our opinion the embracing of the ETS and the use of off-setting is being used simply as a greenwashing marketing tool and duping New Zealanders who perhaps don’t understand the nuance of offsetting on our country.

It’s the ETS and off-setting mentality that is currently ruining our rural communities, replacing good productive farms and displacing people that live and work there with carbon pine forests, that will, far from being a solution, grow old, rot and burn. A disaster of our own short sighted making. . . 

Survey confirms value of farm environment plans:

Recently released fantastic survey results from farmers in the Aparima catchment in Southland confirm the value of farm environment plans, Invercargill MP and National’s associate Agriculture spokesperson Penny Simmonds says.

The survey was of 151 dairy and sheep and beef farmers in the Aparima Community Environment project who are committed to addressing water quality issues and reducing their environmental footprint.

“The survey results confirm what National has been promoting – that farmer-led action and working with scientists and industry experts is most effective, not the over prescriptive, unworkable regulations such as what the Labour Government has put in place,” Ms Simmonds says. . .

Farmer bank pressure drops but so do satisfaction rates :

Fewer farmers are feeling undue pressure from their bank but satisfaction rates continue to slide, according to the Federated Farmers November Banking Survey.

Of the 1,341 farmers who responded to the survey independently run by ResearchFirst, 65.4% said they were satisfied or very satisfied with their bank relationship. That’s down from 68.5% from the Feds’ survey in May.

“Satisfaction has steadily slipped over the past three years – in our November 2017 survey it was 80.8%,” Federated Farmers President and commerce spokesperson Andrew Hoggard said . . 

Seeka forecasts higher underlying earnings :

Strong sales, cost savings and significant one-off gains has seen kiwifruit exporter Seeka lift and narrows its full-year profit guidance.

The company expects underlying earnings between $15 million and $17m, compared with its previous guidance of between $9m and $12m

In a statement to the stock exchange, the company said the update reflected an improvement in its operational earnings, cost savings and the gain it expects from the sale and lease back of its Australian kiwifruit orchards. . .

Heartland launches farm term loan with self-serve online application:

Challenger bank Heartland has added another product to its growing list of digital offerings – this time for the rural market.

The term loan, called Sheep & Beef Direct, is designed for established farmers who are looking to buy or refinance a sheep or beef farm. In launching this product, Heartland is testing the appetite for a low-touch, online application that farmers can complete whenever and wherever – and they’ll be given an initial decision then and there.

Sheep & Beef Direct is the most recent of Heartland’s digital lending offerings. Joining the likes of Heartland’s Open for Business loans, car loans and home loans, it offers an online application which can be completed in minutes. . . 

 

 

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