Rural round-up

July 8, 2020

Let them eat wood – Dame Anne Salmond:

The farmers are right. As the price of carbon rises, the settings in the Emissions Trading Scheme (ETS) will make it more profitable to plant pine trees than to grow food (or native forests) in many parts of New Zealand.

On the East Coast, for instance, a landowner will be paid 10 times more by year 5 for planting pine trees instead of native forest, and farmland is going under pine trees in many places. With wool prices at historic lows, and rising carbon prices, this trend will only accelerate.

On highly erodible soils, the folly of planting shallow-rooted pine trees and clear-felling them every 25-30 years is obvious. Witness the tsunami of logs and sediment that have drowned streams, rivers, houses, fields, beaches and harbours in places like Tolaga Bay, Marahau, and many other parts of New Zealand.

With two-thirds of the forestry industry owned overseas, like the logs, the profits are exported, but the costs remain behind. Ravaged landscapes, wildling pines, roading networks wrecked by logging trucks, workers killed and injured in the forests. . . 

Farmer’s pitch to big biz: My land, your trees, planet’s gain –  Jo Lines-MacKenzie:

One farmer’s novel pitch to big firms to use her land for carbon offset tree planting is being touted as a win-win for both the business and agricultural sectors.

Federated Farmers says the idea could catch on and they could be the organisation to make it work.

The idea has been sparked by King Country farmer Dani Darke who posted a proposal on social media to offer up 10 hectares of her own land to plant native trees.

She pitched the idea to Air New Zealand, Genesis Energy, Contact Energy, Z Energy, and anyone else who wanted to participate. . . 

Strath Taieri the new food bowl of New Zealand – Sally Rae:

Strath Taieri is a traditional farming district, best known for sheep and beef cattle. But an irrigation proposal being mooted has the potential to see it diversify into other areas, including horticulture. Business and rural editor Sally Rae reports.

Strath Taieri — the new Food Bowl of Dunedin?

That’s what the Strath Taieri Irrigation Company (STIC) believes could happen if the Taieri Catchment Community Resilience Project wins approval.

It is a project that has been talked about for decades but which, in recent times, has gained momentum, with an application for funding made to the Government’s Provincial Growth Fund. Without reliable water, the future for the district would be bleak, STIC said.

And by bringing more irrigation water to the area and ensuring certainty of supply, there was potential for diversification of the traditional sheep and beef farming area into the likes of horticulture, as well as increasing productivity within existing farming operations. . . 

Direction of horticulture industry aligns with Fit for a Better World:

Horticulture New Zealand says the horticulture industry’s future focused strategies align well with what is proposed in Fit for a Better World

‘Horticulture is already well into the journey that has been identified and proposed in these reports, and this journey will continue,’ says HortNZ President, Barry O’Neil.

‘Immediately post lockdown, our entire industry – comprising more than 20 different fruit and vegetable product groups – got together with key government departments to develop and implement a strategy and work programme that will see horticulture spearhead New Zealand’s economic and social recovery from Covid.

‘We are encouraged to see that the proposal identifies a key opportunity to accelerate the horticulture industry’s development, which fits perfectly with our own work. . . 

Low-methane ‘elite’ sheep breeding project finds success – AgResearch scientist – Eric Frykberg:

Low methane appears to be a breedable trait that does not affect economic value in sheep, and could lead to a cumulative 1 percent reduction in emissions each year, farmers have been told.

AgResearch scientist Suzanne Rowe told a webinar organised by the New Zealand Agricultural Greenhouse Gas Research Council that research into such animals had been going on for a decade.

Rowe said a study of 1000 sheep divided into high emitting and low emitting animals found these traits were passed on to successive generations.

“After three generations we have 11 percent less methane per kilogramme of feed eaten,” she said. . . 

Bingara producers turn to embryos to breed back out of drought – Lucy Kinbacher:

Bingara producer Rhonda King and her 86-year-old father Alf were steaming ahead with their Speckle Park herd when back-to-back droughts crippled their momentum.

In January they had made the decision to sell the final remnants of their 300-head herd at Doctors Creek when rain came not long after and saved them from the decision.

With cattle prices soaring to record levels Ms King opted to use her lifetime travel savings to purchase embryos rather than replacement livestock and is hoping to breed her way back into business.

Their herd currently consists of about 90 Speckle Park including cows, heifers and bulls with an additional 11 Angus recipients purchased from another stud. . . 


Rural round-up

February 15, 2020

No sense – Rural News:

How can you be green when you are in the red?

That is the very question many rural communities and farmers around the country should be asking the Government.

Its proposed changes to the Emissions Trading Scheme (ETS) – dropped just before Christmas with a very truncated submission period – has all the hallmarks of the Government looking like it is consulting; when it has already made up its mind.

In submissions to the parliamentary select committee on environment, which is overseeing the ETS changes, Federated Farmers, Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) highlighted the lack of any robust analysis of socio-economic impacts of the ETS amendment to farming and rural communities. . .

New law won’t solve money woes – Colin Williscroft:

Reluctance by some farmers to make tough decisions based on their balance sheets is becoming the elephant in the room in some farming circles, Feilding-based BakerAg farm consultant Gary Massicks says.

The situation is not one that has happened overnight but changing influences such as banking policy, pressure exacerbated by social media, new environmental demands and regulations and increasingly irregular weather patterns are changing the world farmers operate in so they need to adapt.

Massicks has spoken to his peers around the country and though the problem is not widespread it exists. . .

New Zealand wine exports continue their steady growth going into the new decade

New Zealand wineries are continuing their steady growth on the world stage, driven largely by the famed Marlborough Sauvignon Blanc. According to NZWine.com, the wine industry recorded its 24th consecutive year of export growth in 2019.

This figure puts New Zealand on track to hit a $2 billion target for 2020, driven largely by an explosion of popularity in the United States and Europe. There are about 500 wineries in New Zealand, the bulk of whom produce Marlborough Sauvignon as their primary wine. . .

Zespri reveals sustainability commitments:

Zespri reveals sustainability commitments including move to 100 percent recyclable, reusable or compostable packaging by 2025

Zespri, the world’s leading marketer of kiwifruit, has announced a new commitment to make all of its packaging 100 percent reusable, recyclable or compostable by 2025.

The announcement is one of a suite of sustainability commitments shared today with growers, consumers and suppliers at the New Zealand kiwifruit industry’s marquee conference – Momentum 2020: Standing Up and Standing Out. . . .

Meaty increases push up annual food prices:

Higher prices for meat, poultry, and fish contributed to a 3.5 percent increase in food prices for the year ended January 2020, the largest annual rise in food prices in over eight years, Stats NZ said today.

“Meat, poultry, and fish prices have increased 6.0 percent in the year. Restaurant and ready-to-eat meals increased 3.4 percent, while fruit and vegetable prices were up 2.7 percent,” consumer prices manager Sarah Johnson said.

“Both beef mince and blade steak prices reached all-time highs in January, while bacon and lamb prices have increased sharply in the past 12 months. Decreased pork production in China during 2019 has increased export demand for New Zealand meat products, pushing prices up.” . .

 

“I can’t imagine myself anywhere but horticulture”, Bay of Plenty Young Grower Of The Year:

Melissa van den Heuvel, an Industry Systems Associate at NZ Avocado, has been named Bay of Plenty’s Young Grower for 2020 at an awards dinner in Tauranga.

The competition took place last Saturday, 8 February, at Te Puke Showgrounds, where the eight competitors tested their skills and ability to run a successful orchard in a series of challenges. These were followed by a speech competition discussing ‘how can we as growers be better members of the wider community’ at the gala dinner on Wednesday night.

Melissa also excelled in individual challenges, including the Horticultural Biosecurity challenge and Avocado Tree Planting challenge, and especially impressed judges with her speech on passing knowledge to future generations. . .


Rural round-up

February 6, 2020

Significant risks highlighted in ETS reform bill:

Federated Farmers, Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) today warned the Government’s proposed reforms to the Emissions Trading Scheme risk accelerating the conversion of productive pasture land into forestry.

The lack of any restriction on how much carbon dioxide can be offset using forestry carbon credits and the lack of any robust analysis of socio-economic impacts of the Climate Change Response (Emissions Trading Reform) Amendment Bill will have major unintended consequences for farmers and regional New Zealand.

All three organisations have expressed concerns about the Bill in submissions to the Environment select committee. . .

Foreign funds talk to farmers – Nigel Stirling:

As many as 10 foreign funds are talking to large-scale farmers about refinancing loans the big banks want rid of, farm debt adviser Scott Wishart says.

Sydney-based Merricks Capital was the first foreign investment fund to break ranks with a $140m refinancing of dairy farmer Van Leeuwen Group in December.

The money manager said it is targeting $2 billion out of $10b in farming loans it believes the Australian-owned banks want off their balance sheets in the next five years.

After years of strong lending growth the Australian banks are reassessing their involvement in the New Zealand market after the Reserve Bank doubled the amount of capital they must hold against their loans. . . 

Cereal crops deluged:

Chris Dillon was 10 days away from harvesting 280ha of cereal crops when the Mataura River burst its banks and flooded his Ardlussa farm north of Gore on Tuesday.

He estimates about 1000ha of cereal crops on eight farms beside the river are under water,

His wheat, barley and peas were exceptional this year.

Provided the water drops quickly he can salvage some crop while insurance will cover a percentage of the production cost of the wheat only. . . 

New Zealand wine exports soar :

In 2019 there was an 8% increase in New Zealand wine exports, with total export value now reaching a record $1.86 billion according to New Zealand Winegrowers.

The USA continues to be New Zealand wine’s largest market with nearly $600 million in exports.

The non-stop increase in international demand is testament to the premium reputation of New Zealand wine, especially in its major markets where the country remains either the highest or second highest priced wine category in the USA, UK, and Canada. . . 

Consortium led by Lynker Analytics awarded government contract to identify New Zealand forest loss using Artificial Intelligence:

Wellington technology start-up Lynker Analytics has been selected by the Ministry for the Environment (the Ministry) to lead a consortium including UAV Mapping NZ and Carbon Forest Services to inventory the extent of forest loss in New Zealand during 2017 and 2018.

Each year 40,000 – 50,000 hectares of forest is harvested in New Zealand as part of normal forestry land use activity. Most of this forest area is replanted, however a small but significant area is deforested and converted to another land use. Deforestation is an important form of land-use change from a greenhouse gas perspective. The Ministry assesses deforestation in New Zealand every two years to meet international reporting obligations under the United Nations Framework Convention on Climate Change and the Kyoto Protocol. . .

Presbyterian Support Central funds support farming students, youth camps and community events

Presbyterian Support Central has distributed more than $170,000 from its Ann Sinclair Trust and James Gibb Fund this year.

Ann Sinclair Trust

Administered by Presbyterian Support Central, the Ann Sinclair Trust provides financial assistance to farming, agriculture, horticulture, orcharding and animal husbandry students. . .


Working with better than against

October 25, 2019

The government has seen sense and is accepting the primary sector’s proposal on agricultural emissions.

The agreement means agriculture will not join the Emissions Trading Scheme but instead work with the Government to reduce emissions.

There will be no processor levy from 2020 to 2025 as initially proposed but farmers and growers will have to implement farm plans and calculate their emissions and offsets at the farmgate from 2025.

A processor level would have penalised more efficient farmers and given no-one an incentive to improve.

Such a tax would have taken money from farmers, leaving them with less to invest in on-farm solutions.

Progress will be reviewed in 2022 and if the Government is unhappy it will revert to the original legislation.

That threat will hang over the sector but at least there’s breathing space.

We are pleased that the Government has recognised that it does not make sense to bring agriculture into the ETS and that we have a pathway to work with the Government to develop a more appropriate framework,” the sector said in a joint statement.

“We welcome this pragmatic and sensible decision by the Government to work in partnership with industry to achieve tangible on-farm change and hope that it might provide a blueprint for the way we work together to solve environmental challenges in the future.”

Would it be too much to hope a similar approach could be taken to water policy?

The 11-member primary sector group has committed $25m over five years to achieve these goals.

That group is Apiculture NZ, Beef + Lamb, DairyNZ, Dairy Companies Association, Deer Industry NZ, Federation of Maori Authorities, Foundation for Arable Research, Federated Farmers, Horticulture NZ, Irrigation NZ and the Meat Industry Association. . .

This shows the importance of unity and what can be achieved when working together.

It also shows the sense of government working with the sector instead of trying to impose impossible goals on it.

Federated Farmers’ response is here.

DairyNZ’s response is here.

 


Hug a farmer

August 20, 2019

Jill Thorp says farmers have had enough of being told they are to blame for climate change:

If you leave your car running in the garage overnight and sleep next to it, you’ll be dead in the morning. If you put five cows, five sheep and five pigs in the garage overnight and sleep next to them, you will warm and alive. We need to get real about the effects of these gases.

We also need to take the nutrient value into account. Running cars produce no nutrients, raising animals provides nutritious food. Most of New Zealand’s is exported and feeds about 40 million people, nearly 10 times the country’s population.

Not my words, but those of a New Zealand farmer, tired of being continuously blamed for global warming. I also learnt recently that depending on the time of day and year, there are 8,000 to 20,000 planes mid flight at any given moment. Yet the accusatory finger of blame for rising temperatures, extreme weather and flooding seems to be pointed firmly in the direction of farmers.

Producing food is necessary, how many of those flights could be called necessary?

I’m tired of being told we as farmers are responsible for so much damage, that it is us that must cease our environmentally destructive ways. What short memories the general public seem to have. Have we not fed a nation for generations, even during times of crisis?

Without the labours of farmers, the country would have been starved into submission during the First World War, but still the criticism rains down on us.

As hill farmers we are told to re-wet the uplands, block up the drains and gullies to prevent flooding. But when that bucket becomes full, that sponge saturated, where will the water go then? . . 

This is the view of an English farmer and her anger is shared by farmers all over the world, not least in New Zealand. We’re the only country where the government is proposing to tax emissions from farm animals and Politik warns of more to come:

Regional Economic Development Minister Shane Jones is warning that dairy farmers may find themselves struggling when they have to meet new Government environmental requirements likely to be unveiled within the next few weeks. . . 

{David} Parker is proposing a National Environmental Standard on freshwater which is essentially a regulation which local Councils must enforce, usually through their planning process.

Speaking in Northland a week ago he said the Government would shortly set clearer and stronger national direction for councils on freshwater standards.

The standard is expected to set nitrate discharge limits for farms.

It is expected these will be expressed in such a way as to make it all but impossible to convert non-dairy land to dairying from now on. . . 

Will these standards apply only to farming? What about the many councils with inferior storm water and sewerage systems that allow regular pollution of waterways?

Federated Farmers asks why are we only talking about farming?

New data from Statistics New Zealand makes it clear every sector of our society, including families, need to lift their game on cutting greenhouse gas emissions.

“It’s just as we’ve been saying for years on the topic of water quality, we’re all in this together and we’ll solve it by everyone doing their bit,” Federated Farmers climate change spokesperson Andrew Hoggard says.

Stats NZ’s “Environmental-economic accounts” shows that emissions from households, mainly from their transport use decisions, jumped 19.3% in the decade to 2017, outstripping both growth in the population and emissions by industry.

Farmers produce food, most of which is exported which brings many benefits to New Zealand. I doubt much of the household transport had more than a personal benefit.

The nation’s total emissions decreased by 0.9% between 2007 and 2017, with greenhouse gases emitted by agriculture dropping at a rate of 0.1% each year.  These small reductions came during a decade when agriculture’s contribution to GDP grew at a rate of 1.8%, indicating increased production efficiency.

Growth in dairy emissions was offset by reductions by sheep, beef and grain farming.

“New Zealand has an unusual emissions profile worldwide because we rely so much on our primary industries to earn our living in the world.  However, carbon dioxide from burning fossil fuels, not methane from animals, is the real climate change culprit and instead of expecting farmers to do all the heavy lifting, it’s time for every New Zealander to look at their lifestyles and choices, particularly in terms of transport,” Hoggard says.

“Planting out thousands of hectares of productive farmland with pine trees isn’t a long-term and sustainable answer to the problem.”

The right tree in the right place for the right reason is a good policy.

Subsidising forestry to incentivise planting pines on productive farmland is bad policy with a high economic, environmental and social cost.

Climate alarmists and other critics of farming are quick to criticise. They conveniently overlook the positive contribution farmers make to the environment, for example nearly a quarter of New Zealand’s native vegetation is on sheep and beef farms:

A report from the University of Canterbury has revealed that 24 per cent of New Zealand’s native vegetation cover (approximately 2.8 million hectares) is estimated to be on sheep and beef farms. This is the largest amount of native vegetation present outside of public conservation land.

The report also estimates that 1.4 million hectares of New Zealand’s native forest is on sheep and beef farms and is likely playing a vital, but often unheralded role in supporting biodiversity and carbon sequestration.

Beef + Lamb New Zealand (B+LNZ) CEO Sam McIvor says, “This is a great acknowledgement for our farmers and the work they’re doing as stewards of the land. I hear sheep and beef farmers talking every day about what they’re doing on farm to support biodiversity and it’s great we now have evidence to back up their passionate voices”.

The report, commissioned by B+LNZ, was undertaken by Professor David Norton from the University of Canterbury’s School of Forestry. Supported by Auckland University of Technology staff, the report used satellite imagery to assess the amount of native vegetation, focusing on native forest, occurring on sheep and beef farms in New Zealand.

“The 2.8 million hectares of native vegetation on sheep and beef farms are critical for biodiversity conservation on farms and for landscape-level biodiversity outcomes,” says Professor Norton.

This finding is particularly important in places where there is little native cover remaining, like those in lower altitudes, on more gentle slopes, and in drier regions,” says Professor Norton.

B+LNZ’s Sam McIvor says, “The environment is a cornerstone for our sector and underpins everything that we do at Beef + Lamb New Zealand. This report helps highlight not only the role sheep and beef farms currently play in contributing to New Zealand’s biodiversity, but will also help us identify opportunities to build on this as a sector”.

The report is also relevant to the proposed zero carbon legislation. While further research is needed, the 1.4 million hectares of native forest will be sequestering carbon and most of this is unlikely to be counted in the current Emissions Trading Scheme. Further research is now being undertaken to measure the potential of this native forest to sequester carbon, and this work will help inform B+LNZ’s and farmers’ input into the Zero Carbon Bill.

Along with surveying the extent of native vegetation, the report highlights that New Zealand’s sheep and beef sector is potentially unique globally in terms of the amount of native forest on its land.

The release of this report is one of the first steps for B+LNZ in implementing its environment strategy, which aims for clean freshwater around farms, for the sector to be carbon neutral by 2050, for sheep and beef farms to provide habitats that support thriving biodiversity, and to support healthy productive soils.

New Zealand farmers are recognised around the world as the most efficient producers of food but like prophets are too often not appreciated at home.

National’s Primary Industry spokesman Todd Muller is leading the charge to move from condemning farmers to celebrating them.

It is time to call out the deliberate narrative, being fuelled by this Government that our agriculture sector, and the farming families that underpin it, are climate and environmental villains.

It started over a decade ago with the dirty dairying campaign and has now widened to include all our animal food producing sectors.

These voices are no longer at the extreme of our community debate but rather at the centre of our government.

At the core of their belief is that our future world cannot sustain animal food production and we should start weaning ourselves off the animal protein diet in order to improve our health and environment. . . 

We need to move the conversation from condemnation to celebration.

The fact is that New Zealand’s farming systems are extremely efficient, and we lead the way in producing high quality products within a low emissions profile.

And we do it without subsidies.

Our environmental footprint is improving as technology is matched by our farmers’ ever willingness to adapt, change and innovate.

Our primary sector understands our reputation as a safe producer of food must be underpinned by sustainable farming practices.

They accept change is a constant, in fact global leadership in food production demands it, but surely it is reasonable to ask that the society in which we produce it to quietly applaud our efforts, rather than rushing to find an example of failure in one of our 23,000 farms and dressing it up as typical.

Tarring all farmers with the dirty brush a very few deserve is unfair and unjustified.

Of course, too much meat can be detrimental, and clearly plant-based foods are essential for a balanced diet. But the health benefits of including meat and dairy in your diet are well documented and a balanced diet must be encouraged.

A recent briefing from MPI’s Chief Science Advisor into the EAT-Lancet Commission report showed that many of the reports condemning meat and dairy production are using generalisations regarding the environmental footprint of farming, and are not taking New Zealand’s superior farming systems into consideration.

Globally, the concerns around red meat production stems from the intensive feedlot industry that can house tens of thousands of animals at each site, and require excessive amounts of water and grain to maintain their systems.

New Zealand farms are overwhelmingly pasture based. Our farming systems are not comparable in the least to a feedlot system.

It’s neither fair, nor accurate,to paint us with the brush that tars far less efficient producers in other countries.

It’s telling that we can produce enough food to feed 40 million people globally and are still the most carbon efficient producer in the world based on output of food compared to emissions produced.

A glass of New Zealand milk can be shipped to the next most efficient country (Ireland) to be consumed there, and it still has a lower carbon footprint than an equivalent Irish glass of milk.

This shows how ahead of the curve we really are. The UK Guardian responded to the recent climate change report by declaring – ‘Eat more NZ Lamb’. This seems to be lost in the ninth floor of the Beehive. . . 

New Zealand is at the forefront of efficient food production, and therefore if we’re to lower our global emissions we should be leading the way, not constraining ourselves and diminishing our output.

The world needs more food produced efficiently as we do it, not less.

One final reality check – 56 per cent of New Zealand’s exports are food.

New Zealand is a little country at the bottom of the world that needs to produce stuff to survive.

Every time we buy pharmaceuticals, cars or computers from the rest of the world we need to pay for it by selling them something. As a country with a small population but a large natural resource base, this tends to be food and materials, minerals or tourism.

This is a very important point that those who pull farming down miss. Farming isn’t something farmers do for their own sakes. They do it to produce the food the world wants and pays for which in turn pays for the imports we don’t, and often can’t, produce ourselves.

This Government has already shown a recklessness when it comes to our oil, gas and mining sectors.

Let’s not allow them to take the same approach to our farmers. Our standard of living depends on it.

A Labour government led us into the ag-sag of the 1980s. Some might argue about the way forcing us to face the real world without subsidies was done, but no good farmer wants them back because farming, and New Zealand are better without them.

That can’t be said about the current poor policies.  Farmers are deeply afraid that the anti-farming policies of this Labour-led government will create another ag-sag, the effects of which will be harsher and far longer-lasting than last century’s.

Anyone who thinks that’s okay should remember that most farmers managed to hang onto their farms during the ag-sag, it was the businesses which serviced and supplied them where jobs were lost and which often failed. The impact of that moved from the country to towns and then cities.

Farming is a handy scapegoat for people taking a political and bureaucratic response to environmental challenges rather than a scientific one but it’s still a major contributor to New Zealand’s economic and social fabric.

That’s why Proud To Be A Farmer was set up a few years ago:

[It]is a campaign aimed at raising the positive profile of agriculture, raising the morale of Farmers and reminding the rural community and the agriculture sector, and indeed New Zealand as a whole, that we have much to be proud of in the Farming industry. We tell the good stories of New Zealand Agriculture, providing much needed balance, and inspiring people to take Pride in their Farms and Farmers.

More recently, Ag Proud NZ was set up on Facebook to focus on good farming practices and the mental health of farmers.

Yesterday Jesse Mulligan interviewed the managing director of AGFIRST, James Allen, on the rising costs of farming .

In response to a question on what people could do to help, he said hug a farmer.

The vast majority of New Zealanders probably don’t know any farmers well enough to hug them, but all should look behind the emotion and false claims that are damning the industry and as Muller says, move from condemnation to celebration.

 

 


Rural round-up

July 24, 2019

No way yet to measure emissions – Neal Wallace:

It is impossible to measure greenhouse gas emissions on individual farms and it appears modelling will be used to calculate tax bills when farm-level obligations are imposed from 2025.

Scientists are still working to develop technology and systems but earlier this year AgFirst economist Phil Journeaux and AgResearch scientist Cecile de Klein delivered a paper to New Zealand Agricultural Climate Change Conference saying it is impossible to measure farm level emissions.

The Interim Climate Change Committee and the Government both say farmers should pay for emissions from 2025 but the development of simple, cheap and credible technology to calculate those obligations still seems far off. . . 

Climate change – how can five per cent be a pass rate for farmers emissions deal? – Mike Hosking:

If talk was hot air then this Government would need to be part of the Emissions Trading Scheme and being paying large penalties for destroying the planet.

The deal has been struck, sort of, whereby agriculture gets dragged into our Emissions Trading Scheme. That’s the good news, if you think making business more expensive by piling on more costs is good news.

The rest of the news is that farmers will escape paying 95 per cent of the charges, which means they will pay, for example, 0.01 cents per kilo of milk solids. In other words having them in isn’t a lot different to not having them in, if in fact what you want to do is achieve something as opposed to making a lot of noise about it. . . 

Collective impact: how working together benefits the environment– Agrigate:

‘What are you doing!?’ Trish exclaimed to friends who failed to put bottles in the recycling bin at a dinner party she was hosting. This was the lightbulb moment which kickstarted her passion for change – to educate farmers on the importance of working together, to create a better environment.

South Taranaki farmer, Trish Rankin, was recently named the 2019 Fonterra Dairy Woman of the Year. This award is significant, as it recognises the work she is doing beyond her own farm gate to make an impact in the wider industry.

Trish is not afraid to take on a challenge. She’s completed the Kellogg Rural Leadership Programme, focusing on how a circular economy model can be extended to New Zealand dairy farms – all while juggling her roles as mother, farm assistant and CEO, teacher and Chair of the Taranaki Dairy Enviro Leader Group. . .

Mycoplasma bovis Biosecurity Response Levy set for dairy farmers:

This week, dairy farmers nationwide will receive information from DairyNZ about the Biosecurity Response Levy being set at 2.9 cents per kilogram of milksolids for the 2019-20 year. The levy will be collected by dairy supply companies from 1 September 2019.

“We consulted with our farmers earlier this year about increasing the biosecurity response levy cap to 3.9c/kg milksolids in order to pay our share of the M. bovis response,” says DairyNZ Chief Executive, Dr Tim Mackle.  We listened to the feedback our farmers gave us and made sure there was a strong farmer voice around the table.

“The 2.9c/kg milksolids is obviously less that than the 3.9c/kg milksolids cap we put in place. This reflects our conversations with farmers, plus the work we’ve been doing with the Ministry for Primary Industries (MPI) to develop the terms of payback in the operational agreement we have negotiated. . . 

Survey reveals our appetite for eating insects:

When it comes to eating insects, New Zealanders like them crunchy and if given a choice would opt to eat a black field cricket before other creepy-crawlies, according to a new AgResearch report that explores the nation’s appetite for insects.

The Crown Research Institute surveyed 1300 New Zealanders to assess which native insects respondents would be most likely to consume to test the market potential for each insect as a product. The survey found participants are more likely to eat – given the choice – black field cricket nymphs and locust nymphs, followed by mānuka beetle and then huhu beetle grubs.

For the record, participants said they would least like to consume porina caterpillars and wax moth larvae, which suggests we are more open to eating “crunchier” insects, as opposed to the softer “squishier” insects, reinforcing that texture is an important factor influencing decisions to consume insects. . . 

Grasslands more reliable carbon sinks than trees – Kat Kerlin:

Forests have long served as a critical carbon sink, consuming about a quarter of the carbon dioxide pollution produced by humans worldwide. But decades of fire suppression, warming temperatures and drought have increased wildfire risks — turning California’s forests from carbon sinks to carbon sources.

A study from the University of California, Davis, found that grasslands and rangelands are more resilient carbon sinks than forests in 21st century California. As such, the study indicates they should be given opportunities in the state’s cap-and-and trade market, which is designed to reduce California’s greenhouse gas emissions to 40 percent below 1990 levels by 2030. . .


No electric sheep

July 19, 2019

The government reckons it is on the same page as farmers when it comes to countering climate change.

Farmers beg to differ:

The ‘Action on Agricultural Emissions’ discussion paper is a positive first step as farmers and the government hammer out a practical path to reduce livestock greenhouse gas emissions, Federated Farmers says.

“We are agreed that a priority is to find a workable and affordable way that farmers can measure emissions and sinks at the farm level, and to adopt practices and any new technologies that will help drive down methane and nitrous oxide emissions,” Federated Farmers climate change spokesman Andrew Hoggard says.

But there’s a but:

“Where we differ is that the Government keeps emphasising pricing as the predominant tool.  Federated Farmers does not agree with universal pricing of methane.  The ETS has failed to reduce carbon dioxide emissions from transport – in fact, transport emissions have near doubled since 1990.  Universal pricing of methane will be similarly unsuccessful.”

If it was successful it would reduce production at a significant economic and social cost with no global environmental gain.

If New Zealand was the only country to tax animal emissions and production here decreased as a result it would increase in other countries where production is far less efficient.

What Federated Farmers has committed to is working with the government to design a pricing mechanism where any price is part of a broader framework to support on-farm practice change.  Such pricing would be set at the margin – that is, only applying to methane emissions over the 0.3% per annum reductions that science tells us is enough to ensure methane no longer adds to global warming.

The government can’t tell us to accept the science on climate change then not accept the science on ways to counter it.

New Zealand farmers are proud to be among the most efficient producers in world and, unlike many of their overseas competitors essentially stand on their own two feet, as their animals stand on their own four feet. Farmers here are largely unsubsidised by consumers (by way of inflated prices) or taxpayers, and that has been so for over 30 years, Hoggard says.

If New Zealand’s milk and meat export volumes reduce as a result of lower on-farm production, the gap will be filled by less efficient producers. This is known as “emissions leakage” and will ultimately increase global emissions and food costs.

“So any pricing should only be a tool to incentivise farmers into taking up economically viable opportunities to cut methane, just as the Government might use incentives or a nudge to encourage people to switch to an electric vehicle.

“Unlike for a fossil-fuel powered vehicle, there is no ‘electric sheep’ equivalent for farmers.  But there is the potential for methane inhibitors or a vaccine, albeit some years away from proof and coming to market,” Hoggard says.

Breeding low-emission animals and selecting low-emission feeds are options being explored meantime.

The agriculture sector has committed to work with the government and iwi/Maori to design a practical and cost-effective system for reducing emissions at farm level – including a pricing mechanism as part of the broad framework – by 2025.

Meanwhile, the sector’s proposed 5-year programme of action is aimed at ensuring farmers and growers are equipped with the knowledge and tools they need to deliver emissions reductions while maintaining profitability.

Education and tools will do far more good and a lot less harm than the government’s plan which is not just another tax but a tax which is  counter to the science.


Rural round-up

May 19, 2019

Selling sheep and beef farms to forestry is a threat to food and trade – Stuff Editorial:

His pockets stuffed with millions of dollars for regional development, his mind set on getting unemployed cousins off the couch to plant a billion trees, he stood before a mayoral reception and urged people to get involved.

“If you have an aspiration to turn marginal land into forestry, we are going to do it …” he told his hosts.

The official guide to his One Billion Trees Programme featured the Manawatū sheep and beef farm owned by Justin and Mary Vennell. . . 

Farmer uneasy over farm to forestry conversion plan – Heather Chalmers:

Government incentives to plant trees is leading to a rush of sheep and beef farms being sold for conversion to forests.  

Farmers are worried about the trend, saying that once hill country properties are planted in forests, they will never return to pastoral farming.     

While the Government had banned overseas people, apart from Australians and Singaporeans, from buying existing residential and lifestyle properties, rule changes had made it easier for foreigners to invest in forestry.   . .

There’s rarely a day at least one story from New Zealand Farmers Weekly doesn’t feature in my rural-round-up.

It’s also the one give-away paper that is a must read not just in ours but in every other farming house I know.

It deserves its title of Best Trade Publication in the Voyager NZ Media Awards.

Climate policy still clouded – Neal Wallace:

The government is still to decide the mechanics of how and how much farmers will pay for methane emissions and if it will mean inclusion in the Emissions Trading Scheme.

Initially, the point of obligation will be with milk and meat processors but Agriculture Minister Damien O’Connor says that is for ease of administration and he has made research on shifting the liability to individual farms a priority.

“I want to see us reward good on-farm behaviour and practice as quickly as we can.” . .

Northland a centre of share farming excellence – Hugh Stringleman:

Share Farmers of the Year Colin and Isabella Beazley have their hands full with winter milking and a herd expansion by 200 cows for next season.

The magnitude of their win on the national stage, carrying more than $50,000 worth of prizes, is slowing sinking in amid the enhanced planning and provisioning alongside usual farm work and family life.

Fortunately, they do not have to move farm or home for the next three contracted years of their dairying careers, milking 530-550 cows and aiming for more than 200,000kg milksolids next season. . .

Preventing farmer suicides through helplines and farm visits – Allee Mead:

In 2016, dairy farmers Meg Moynihan and her husband lost the buyer for their organic milk. Because she was working for the Minnesota Department of Agriculture (MDA) Organic Program at the time, Moynihan thought it’d be easy to find a new buyer, but “all doors were closed,” she said. “It was the beginning of the milk glut.”

 


Rural round-up

August 19, 2018

Supreme Court issues victory for private land conservation:

The Supreme Court has delivered a historic decision to protect covenanted land against a land developer who bought the property with the intention of carving it up, developing on the beautiful and protected bush and then selling the land for profit.

QEII National Trust Acting CEO, Paul Kirby says “this is a victory for conservation on private land in New Zealand and a blow for those who think that they can overturn QEII legal protection of the land. The Supreme Court has reinforced that QEII covenants protect natural spaces against the people who buy a property to divide and develop the land. We are proud to have lead the fight to protect the land against this kind of development. . .

Foresters fear carbon auction’s implications – Richard Rennie:

Forest Owners Association president Peter Weir is troubled by Government proposals to use an auction system to allocate extra carbon units under a revised Emissions Trading Scheme.

The proposal is for a sealed-bid, single-round auction where bidders submit their bids simultaneously. 

Each bidder can submit multiple bids, ultimately creating a demand curve ranking all bids from highest to lowest. A clearing price is then determined, where supply and demand meet.

But Weir is concerned the proposal is going to cause more problems than it solves.

Fonterra pauses to take stock – Hugh Stringleman:

Fonterra dropped another bombshell with the appointment of an interim chief executive, Miles Hurrell, to take over immediately from departing Dutch dairy industry veteran Theo Spierings.

The internal promotion of Hurrell came as Fonterra’s directors reconsider the company’s direction of travel and its needs in a chief executive.

An external recruitment process, started in November last year, is suspended in the meantime, chairman John Monaghan said.

Hurrell has the right mix of talents and experience needed at this time and he will not be paid what former chairman John Wilson called the eye-watering salary and bonuses that Spierings received. . .

 

Sheep wool can help cats’ diet:

Proteins from wool can be added to the diets of animals to improve their health, AgResearch scientists have shown.

Researchers say the positive findings in the diets of domestic cats open up exciting possibilities for new uses of sheep wool to improve digestive health for a broader range of animals, and potentially human beings.

The findings have just been published in the Royal Society of Chemistry’s Food & Function journal, and are available here . . 

NZ blister protection company, Walk On, names first CEO:

Walk On, the blister protection company known for its luxuriously soft Hyperfine merino wool product, has appointed Dr. Mark Davey as its first CEO.

Walk On Founder and Chairman Lucas Smith made the announcement as part of a 2018 initiative to carry the momentum of Walk On’s initial domestic success into international markets. Walk On recently secured a national distribution deal with outdoor and adventure sports multi-channel retailer Torpedo 7, and is also available in 10 retail stores nationally.

“Mark Davey’s experience as a New Zealand apparel innovator will be pivotal to the company as we embark on the next steps of the Walk On journey during our capital raise and international market development efforts,” remarked Lucas Smith. “Mark has experience with both, and we are excited to have him on board.”. . .

End of a family dynasty on Gunningbar Creek – Peter Austin:

A useful grazing block in the tightly-held Gunningbar Creek area north of Nyngan will go to auction later this month, ending nearly a century of ownership by the local Green family.

The 2668 hectare (6594ac) “Belarbone” has been listed for sale by Phil Wallace of Landmark Nyngan on behalf of Gavin and Jenny Green, who are selling in their lead-up to retirement.

Gavin took on the management of “Belarbone” in the early 1980s, at which stage it was an undeveloped block with no electricity connection, no buildings and no infrastructure. . .

 


Rural round-up

October 25, 2017

Nitrogen-busting genetics could prevent millions of kilograms of nitrates landing on dairy farms – Pat Deavoll:

Nitrate reducing forage plants and bacteria, denitrification walls and now nitrate-busting bulls are being developed to lower farming’s impact on the environment.

Thanks to an international breakthrough by dairy herd improvement company CRV Ambreed, bulls have been identified that pass lower nitrate levels through their urine onto soils.

The company has selected bulls genetically superior for a trait related to the concentration of urea nitrogen in milk. . .

Sone up, some down, some firm – Nigel Malthus:

Lamb, sheep and deer prices are likely to remain firm, but cow and bull prices could soften, according to the Alliance Group’s projections for the new season.

Heather Stacy, Alliance’s general manager livestock and shareholder services, told a recent meeting of shareholder farmers at Little River, Banks Peninsula, that prime beef prices should remain similar to last year at $5.00 – $5.40/kg early season and $4.80 – $5.20/kg post-Christmas. . . 

Kiwifruit’s bright outlook – Peter Burke:

There’s gold for New Zealand growers in Zespri’s SunGold kiwifruit.
Overseas demand is high for the new Psa-free variety and prices continue to rise.

As a result, Zespri chairman Peter McBride is forecasting a net profit after tax of $96 million to $101m for the year ended March 31, 2018. Profit last year was $73.7m. . .

Science to rule on farming’s role in ETS:

Farmers are relieved that science – rather than politics – will decide whether agriculture should be included in the Emissions Trading Scheme.

Under the coalition agreement unveiled yesterday, a new Climate Commission will make the decision.

Other details made public yesterday include scrapping the controversial water tax, but introducing a royalty on bottled water exports, along with higher water quality standards for everyone.

Labour went into the election promising to make the country carbon neutral by 2050. . . 

Dairy fund takes stake in Lewis Road to support NZ, international expansion – Sophie Boot:

Dairy farming investment fund Southern Pastures has taken an undisclosed but significant stake in Lewis Road Creamery, with executive chairman Prem Maan set to join the Lewis Road board.

The investment “will enable further expansion of Lewis Road’s popular product portfolio in New Zealand, and support the company’s push towards exporting to lucrative overseas markets”, Lewis Road said in a statement. Founder and chief executive Peter Cullinane will remain the company’s largest shareholder. . . 

Increase in illegal seafood sales on Facebook prompts warning:

A significant increase in the number of illegal seafood sales via Facebook has prompted the Ministry for Primary Industries (MPI) to warn those offending that they will face penalties for violating the Fisheries Act.

Since the beginning of the year, MPI has received more than 160 calls and emails reporting Facebook posts by people selling recreationally caught seafood including crayfish, kina and pāua.That’s up on the previous year where 96 complaints were received and the year before that when 57 complaints were registered. . . 

The many paradoxes of life on and off farm – Joyce Wylie:

Paradoxes are part of our lives, and they are not skydiving medical teams. Paradox is defined as “a person or thing exhibiting apparently contradictory characteristics” which can make them both humorously absurd and irritating nonsense.

For example 3.57 million New Zealanders enrolled for our recent election. So, 79.8 per cent of us used our democratic privilege meaning 2.63 million votes were cast and counted. But amazingly after this major public participation the final result came down to a small number of candidates who didn’t win a single electorate seat between them. They made a choice behind closed doors about who holds power in the 52nd parliament of our country.

10 things only a farmer’s child would know – Hayley Parrott:

We recently had a chuckle at an article about 10 things anyone marrying a farmer can expect to encounter and it got us thinking. Lots of us in the Farmers Weekly office grew up on farms and here are a few memories we think those of you born and bred on a farm might empathise with.

1. Summer holidays. Or so-called “holidays”. For those six weeks you await with such anticipation, you will spend most of it helping to feed the chickens, walk the dogs and painting fences. You’ll be granted a well-earned break on the day of the county show. . .


Rural round-up

September 9, 2017

Putting NZ agriculture under the ETS is illogical:

Labour’s announcement that it will move agriculture into the Emissions Trading Scheme in stages will cost the livestock sector at least $83 million in year one, rising to more than $830 million each year when fully implemented.

Federated Farmers agrees that action on climate change is needed. But as New Zealand farmers are among the most efficient producers of food on the planet, it is illogical to put the sector at a competitive disadvantage against export competitors, effectively shifting production to less efficient producers overseas. . .

Farmers should not pay for all water pollution – Basil Sharp:

Water use needs a price, but Labour’s misguided water tax is unfair and would not deter polluters.

We need an efficient, sustainable and fair way of allocating water. From the little detail available, Labour’s proposed water tax does not sound like it offers this. Not only does it fail to target polluters, it risks perverse and distorting effects.

The Labour Party proposes applying a royalty – call it a water tax – of up to 2c per 1000 litres of water. The money collected would be given to councils and iwi to restore local waterways. It is not unusual for governments to charge a royalty on resources they own. Our Government applies royalties to minerals vested in the Crown. . .

Let’s tax this – what are we in for with Labour?

On the cusp of the election, voters are still in the dark about what taxes they might be hit with if Labour is part of the next government.

A tax (“royalty”) on water is confirmed. But Jacinda Ardern has refused to rule out a capital gains tax, a land value tax, and an asset and wealth tax – other than to say the family home is exempt.

“For Labour to say they’re not able to be more explicit about what they have in mind until they have recommendations from the yet-to-be-named members of a tax panel is something of a cop-out, and certainly doesn’t help voters,” Federated Farmers Vice-President Andrew Hoggard says. . .

Mycoplasma bovis – update 8 September 2017:

The Ministry for Primary Industries’ testing programme for Mycoplasma bovis continues at pace with over 15,000 tests now completed by MPI’s Animal Health Laboratory at Wallaceville.

Response Incident Controller Dr Eve Pleydell says the overwhelming majority of the tests have come back negative, with positive results so far only being found on the six known infected properties. . .

Meat and dairy lift manufacturing:

The volume of meat and dairy product manufacturing rose in the June 2017 quarter, Stats NZ said. Sales values also rose, coinciding with high prices.

After adjusting for seasonal effects and removing price changes, the meat and dairy product manufacturing volume rose 8.2 percent in the June 2017 quarter.

“The rise in the meat and dairy sales volume followed falls in the previous two quarters,” manufacturing manager Sue Chapman said. . .

NZ wool market continues to pick up at weekly auction – Tina Morrison:

(BusinessDesk) – New Zealand’s wool market continued to improve at the latest weekly auction, as demand picked up from China, the largest buyer of the fibre, and a decline in the local currency made trading more attractive.

Some 91 percent of the 8,047 wool bales offered at yesterday’s North Island auction were sold, and prices lifted for most styles of wool with the coarse crossbred wool indicator increasing to $3.05 a kilogram, up 6 cents from last week’s South Island auction and 19 cents higher than the previous North Island auction a fortnight ago, AgriHQ said. . .


No use imposing pain for no gain

June 7, 2017

Why isn’t farming included in the emissions trading scheme?

Climate Change Minister Paula Bennett nails the answer:

Let me take this opportunity to clearly state the Government’s position: until there is an economically viable way of reducing agricultural emissions through technological advances or otherwise, I will not be bringing agriculture into the Emissions Trading Scheme.

In a Parliamentary debate on the recent Globe New Zealand report into climate change, Labour’s David Parker said “If we are elected, agriculture will be coming into ETS very fast. We have always said it should”.
Here’s my response to Parker.
We fully support our farmers here in NZ.
There is absolutely no point in cutting them off at the knees because more inefficient farmers across the world would pick up the slack and leave us worse off overall.
The greenhouse gas footprint from dairy here is less than half the global average.
We are a nation of four million feeding 40m – the world needs what our farmers produce
.

Imposing the ETS on farming now would cause financial pain to farmers and the country.

If there was an environmental gain that cost might be justified but it can’t be when less efficient producers elsewhere would step in to the gap left by lower production in New Zealand.

We should be backing our NZ farmers.
The actions farmers are already taking to improve water quality and reduce nitrogen fertiliser costs have climate change co-benefits.
Farms that are improving efficiency and productivity are also reducing emissions intensity.
Over the past 25 years farmers have improved the emissions efficiency of production by about 1% a year.
Without these gains, agricultural emissions would have increased by 40% to produce the same amount of product, rather than the current 15% increase in emissions.
We need to make sure actions to achieve these efficiency gains become standard practice and that we strive for further improvements that have both on farm economic and climate benefits.
A thriving and productive agricultural sector is pivotal to the health of NZ’s economy and farmers are natural environmentalists.
We’ll be working in partnership with farmers, not against them, to make the changes we need to make to reach our ambitious Paris Agreement emissions reduction target.
We continue to put about $20m a year into agricultural greenhouse gas mitigation and adaptation research.
It includes improving our national forestry and agriculture greenhouse gas inventory and reporting, understanding and adapting to the impacts of climate change, research on reducing methane and nitrous oxide and how soil can be used to store carbon.
The Primary Growth Partnership and the Agricultural Greenhouse Gas Research Centre are examples of government industry partnerships to find new technologies and production systems that will make farming more productive and sustainable.
Fonterra has formed a 10-year, $20m partnership programme with the Department of Conservation to reduce predators and improve habitats and water quality.
This project looks at how sustainable dairying can be part of healthy, functioning ecosystems, highlighting the important two-way relationship between environmental health and economic prosperity.
NZ is working with other countries on many projects related to agriculture and recently signed an agreement with China to share technical expertise on carbon trading and agricultural greenhouse gas mitigation.
The Government continues to fund forestry schemes which provide additional income from marginal land, help improve water quality and act as a carbon sink.
We provide start-up support for community irrigation schemes which must meet regional environmental requirements.
NZ has a great opportunity to demonstrate that we have that integrity and to market ourselves as a really superb grower of premium food.
I have never met a farmer who didn’t want to leave the environment in a better state than they found it, for future generations.
We all need to work together to embed and accelerate good management practice and connect better with our consumers, both here and overseas.
A thriving and productive agricultural sector is pivotal to the health of NZ’s economy and farmers are natural environmentalists.

Quite.

Farmers might be a small minority in New Zealand now but farming still makes a large contribution to the economy.

Contrary to the anti-farming rhetoric most farmers are also doing everything they can to repair the environmental damage for poor practices in the past and ensure their current practices leave as small an environmental footprint as possible.


Rural round-up

July 22, 2016

Agriculture could be included in Emissions Trading Scheme – Kate Gudsell:

The Treasury has raised the possibility of agriculture being included in the Emissions Trading Scheme (ETS) after years of being exempt from charges.

The move is suggested in a March Treasury briefing to Finance Minister Bill English and his two associates Steven Joyce and Paula Bennett.

The briefing outlines the financial risk the government faces from scrapping the one-for-two scheme – a 50 percent subsidy for polluters which meant they paid half the value of their greenhouse gas (GHG) emissions. . . 

Local government needs you:

With nominations for this year’s local authority elections opening on Friday, Federated Farmers is calling on farmers and other business-minded people to consider standing for election.

Federated Farmers’ Local Government spokesperson Katie Milne said it’s  vitally important that we get good candidates to put themselves forward.

“Being a councillor is a challenging role but farmers can make a real difference on councils as they can inform and educate their colleagues and staff about what happens on-farm. . .

Battle for our Birds 2016 operations begin:

The largest pest control operation in New Zealand’s history has been launched today by Conservation Minister Maggie Barry.

Battle for our Birds 2016 will protect our nation’s most vulnerable native species from the potentially catastrophic explosion of rats and stoats in New Zealand forests as a result of a beech mast event.

At an event at Bob’s Cove near Queenstown today Ms Barry announced aerial 1080 drops have been confirmed for 19 sites covering more than 720,000 hectares of high value land. . . 

Meat exporters facing foreign exchange headwinds:

Meat Industry Association Chief Executive Tim Ritchie says uncertainty in the EU as a result of Brexit is one of the causes of a higher exchange rate, which will significantly affect prices our exporters receive in the European market. This, in turn, affects the prices meat processors can pay farmers for their livestock. Volatility in exchange rates has already had a significant impact on meat exporters, which led to eroded margins in the last season.

This year, the volatility looks like it will get worse. A year ago, a NZD was worth 0.43 GBP, but is currently 0.53 GBP, with the NZD rising sharply against the GBP since the Brexit referendum.  . . 

Rabobank Global Wine Quarterly Q3: Opportunities for wine supply and trade in South-East Asia:

Markets in South-East Asia are calling out to be explored, as opportunities in the region lie beyond China and Japan. Meanwhile, the short South American harvests and the Brexit are leading developments in global wine supply and trade, according to the Rabobank Global Wine Quarterly Q3 2016.

‘Other’ Asia

Headwinds for wine consumption in South-East Asia still dominate the outlook in the near term, however opportunities are nevertheless apparent, and some positive longer term fundamental drivers are present should the necessary catalysts set them in motion.. . .

LIC full year result 2015-2016:

Farmer-owned co-operative, Livestock Improvement Corporation (NZX: LIC), has announced its result for the year ending 31 May 2016.

The financial result is summarised below with background information attached to NZX, including Chairman Murray King’s letter to LIC shareholders.

Revenue: LIC revenue from ordinary activities was $205 million and including other income from grants, totals $211 million, 9% down on the total $232 million achieved during 2014-2015. Lower milk prices have impacted on-farm buying decisions, as many farmers look to reduce costs and indeed go into survival mode through the difficult financial times facing dairy farmers. . .

How the EU Budget is spent – Common Agricultural Policy – Gianluca Sgueo, Francesco Tropea and Marie-Laure Augere-Granier:

With 52% of the European Union (EU) territory classified as predominantly rural, more than 170 million hectares of agricultural land, and 113 million people (nearly one quarter of the EU population) living in rural areas, the Common Agricultural Policy (CAP) represents one of the largest shares of expenditure from the EU budget. The CAP pools European Union resources spent on agriculture to protect the viable production of food, the sustainable management of natural resources, and to support rural vitality.

The CAP consists of two ‘pillars’, the first includes direct payments (i.e. annual payments to farmers to help stabilise farm revenues in the face of volatile market prices and weather conditions) and market measures (to tackle specific market situations and to support trade promotion). The second pillar concerns rural development policy and it is aimed at achieving balanced territorial development and sustaining a farming sector that is environmentally sound, as well as promoting competitiveness and innovation. . .  (Hat Tip – Utopia)

Wool Market Steady:

New Zealand Wool Services International Limited’s CEO, Mr John Dawson reports that the North Island Wool Auction received revived support this week with an improved 81 percent of the 5700 bales selling.

The weakening NZ dollar across the board saw the weighted currency indicator fall 4.22 percent. Despite these positive factors, local prices were still below last week’s South Island auction, but only marginally under the last more comparative North Island selection. . .


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