Rural round-up

May 29, 2015

Top deer environment award winners announced – Kate Taylor:

Central Hawke’s Bay farmers George Williams and Laura Billings were presented with the Elworthy Environment Award at the deer industry conference in Napier on Tuesday night.

The couple have a 1188ha business, including home farm Te Maire, in the Tikokino area with sheep, beef and cropping as well as deer.

Williams has a personal passion for deer with a focus on velvet with a venison by-product.

Velvet production for the 2014/15 season was a total of 2550kg (including 278kg of regrowth). Te Maire has also hosted the Wilkins Farming North Island stag sale since 2010. . .

Chefs to serve up kiwi venison in Euorpean restaruants –  Kate Taylor:

New Zealand venison will be eaten at European restaurants this summer.

Thirty-six ambassador chefs in Belgium and the Netherlands will be serving cervena venison on their menus in a trial as part of a Passion2Profit initiative formally launched at the Deer Industry Conference in Napier on Tuesday. . .

NZ heading for lowest wool clip in 6 years as farmers favour meat breeds, sheep flock declines – Tina Morrison:

(BusinessDesk) – New Zealand, the world’s largest exporter of crossbred wool, is heading for its smallest annual wool clip in six years, reflecting the lowest sheep flock in more than 70 years, dry conditions and an increased focus on meat producing breeds of sheep.

New Zealand will probably produce 138,400 tonnes of greasy wool, or 833,700 wool bales, in the annual season that runs through June, down 5.4 percent on the year earlier, according to farmer-owned industry organisation Beef + Lamb New Zealand. That would mark the lowest level since the 2008/09 season when the clip dropped to 132,400 tonnes as farmers eschewed a second shear in the face of low wool prices. . .

Support for dairy farmers ramped up:

Industry body DairyNZ is ramping up its support to dairy farmers following the announcement today by Fonterra of an opening forecast Farmgate Milk Price of $5.25 per kgMS for the 2015-16 season.

Chief executive Tim Mackle says DairyNZ had already been working on boosting its Tactics for Tight Times campaign to help farmers cope with what is likely to be a “very tough and grim season”.

“By our calculations, this forecast will translate into an average farmer’s milk income dropping by $150,000 for this next season. We’ve worked out that the breakeven milk price for the average farmer now going forward is $5.70 kgMS, yet under this forecast scenario they’ll only be receiving $4.75 all up in terms of farm income including retro payments from last season and dividends. Annual farm working expenses will need to be reduced to minimise increasing debt levels further. The flow-on impacts to the local economy will be significant as that money gets spent on things like feed, fertiliser, repairs and maintenance items. There will also be less capital spending in our sector. . .

Well-oiled operation sees rapid growth – Harrison Christian:

WAYNE and Maureen Startup never dreamed the four olive trees in their Havelock North backyard would turn into 17,000.

But that is what happened, after they decided to go full-time with their hobby 15 years ago.

The Village Press, which takes its name from their hometown, is the biggest and most competitive olive oil operation in New Zealand. Its high-quality olive and avocado oils are stocked on shelves around the world – and the business continues to grow. . .

Farmers ready to put irrigation funds to good use:

Federated Farmers says farmers will put to good use a $25m funding boost, from the recent Budget, for investigation and development of irrigation projects.

The Government has put $25m into the Irrigation Acceleration Fund through the next five years to kick-start regional irrigation projects.

Federated Farmers spokesperson on water, Ian Mackenzie, says the Government is quite right to identify nearly every part of New Zealand as being hit by drought in the past three years. . .

Plant disease world first in Bay:

A Peruvian plant disease will be used in a world first biocontrol against a notorious weed in the Bay of Plenty and Northland

Lantana blister rust (Puccinia lantanae) was recently released in the Bay and Northland regions in an attempt to control lantana – considered one of the world’s 10 worst weeds.

Landcare Research scientists have been searching for biocontrols before it becomes widespread. . .

Input Prices Rise for Sheep And Beef Farmers:

Prices for inputs used on New Zealand sheep and beef farms increased 1.1 per cent in the year to March 2015, according to the latest Beef + Lamb New Zealand (B+LNZ) Economic Service sheep and beef on-farm inflation report.

The sheep and beef on-farm inflation report identifies annual changes in farm input prices in New Zealand for the various expenditure categories. The on-farm inflation rate is determined by weighting the individual input category price changes by their proportion of total farm expenditure.

B+LNZ Economic Service chief economist Andrew Burtt says the increase in the 2014-15 year follows a 0.6 per cent decrease the previous year and was driven by rises in prices of interest and, local and central government rates and fees. It was only partly offset by a fall in fuel prices as fuel accounts for less than 5 per cent of sheep and beef total farm expenditure. . .

Pasture and Performance Loan to lift red meat productivity:

New Zealand’s largest rural lender today launched an extended lending package for red meat farmers wanting to boost farm productivity.

ANZ Bank’s Pasture and Performance Loan offers an interest rate of 5%* p.a. with a maximum loan of $100,000. The maximum loan term is five years, principal reducing, and there are no establishment fees. . .


Rural round-up

January 22, 2015

Fuel price falls should mean lower farm costs:

The continuing fall in fuel prices should be reflected in lower farm input costs Federated Farmers believes.

Petrol and diesel pump prices have declined by more than 40 cents per litre since October.

Federated Famers transport spokesperson, Ian Mackenzie says he expects the persistent decline in the cost of fuel to be reflected in farm expenses.

“The direct expenses of running machinery are accounted for with a lower fuel bill for the farmer. But there are other high fuel use industries, in particular transport, where we would expect to see some reduction in the costs from now on,” he says. . . .

Court case reconfirms QEII covenants’ clout:

For the second time in less than 12 months the durability of QEII National Trust covenants has been confirmed by the High Court.

The first case was considered by the High Court earlier in 2014 when a landowner wanted to subdivide and build 20 houses on an area of covenanted indigenous forest land he had bought on the Coromandel Peninsula. He challenged the legal status of the covenant agreement because it prevented him from developing the land.

The High Court decision declared that the National Trust’s covenant agreements were ‘indefeasible’, meaning the covenant cannot be annulled. . .

 

Stock theft affects us all – Chris Irons:

Around Christmas time stock rustling seems to rear its head and this holiday season has been no different. Concerns are mounting around stock rustling and the ability to stop it. Ironically, the morning of writing this I was actually out hunting down one of my own heifers, which in the end I found but it gets the heart pumping when you think it has been stolen.

Following the event where a farmer’s cows were shot with a crossbow at the southern end of the Hunua Ranges, questions are being raised as to what rights farmers have to stop a poacher or thief on their property? Not only do farmers have limited rights to stop people stealing their stock, but we’ve got to ask whether the penalties imposed are serious enough to be a deterrent for either rustling or poaching?  Based on the Federation’s experience to date they are not. . . .

DWN conference heads to Southland:

Dairy Women’s Network is excited to be holding its 2015 annual conference in one of New Zealand’s fastest growing dairy regions.

The Network’s key annual event is sponsored by Lifetime Insurance and Travel Advisors, and is taking place in Southland on 18-19 March at the ILT Stadium in Invercargill.

Network chief executive Zelda De Villiers said the 2015 conference theme ‘Entering tomorrow’s world’ would be evident in the eight workshops offered, comprising financial management, sustainable environments, a presentation by High Performance Sport NZ psychologist David Galbraith, farmer wellness, animal lameness, legal liability and more. . .

MBIE report backs primary sector careers:

Lincoln University’s Deputy Vice-Chancellor Business Development, Jeremy Baker, has welcomed the findings of a Ministry of Business, Innovation & Employment (MBIE) report which shows particularly favourable prospects for those exploring primary sector and associated land-based careers.

The Occupation Outlook 2015  report is a comprehensive industry document designed to provide key information for those contemplating study and career options. The report rated the job prospects for agricultural scientists as very high, and projected an annual growth for the profession of 4 percent for 2013-18 and 3.2 percent for 2018-23.

Identical figures are listed for environmental scientists and food technicians, while the job prospects for farmers and farm managers is also rated as very high.

“The report lends weight to the message Lincoln University has been making for some time. Namely, that there are many exciting career opportunities in the primary sector for those who are prepared to open themselves up to the possibilities,” says Jeremy Baker. . .

Boosting food production through phosphorus: Lincoln works with Chilean university:

Lincoln University is joining forces with a prominent Chilean university research institute to address pressing issues involving the essential role of phosphorus in global food production.

Professor Leo Condron, of Lincoln University’s Faculty of Agriculture and Life Sciences, recently spent six weeks at the Scientific and Technological Bioresources Nucleus (BIOREN) of the Universidad de La Frontera in Temuco, Chile, as part of a Biological Resource Management Fellowship funded by the Organisation for Economic Co-operation and Development (OECD).

“The fellowship involved bringing together the complementary skills of Lincoln University and Universidad de La Frontera to investigate ways of improving the usability of phosphorus in agricultural systems,” said Professor Condron.

The productivity of ecosystems is largely determined by the presence of phosphorus in soil. However, the world’s known phosphorus reserves are steadily being depleted, and demand is expected to exceed supply within 100 years. . .

Primary industry sector on verge of a technological revolution:

While farmers and other rural industries have always been innovators and pioneers, many city dwellers still think of them as tough, hardworking people who do without ‘modern’ technologies such as smart phones, tablets and big screen TVs.

Times have changed. The reality is something quite different. These and an array of new and innovative technologies are now a vital component of most rural businesses.

City dwellers can use their latest mobile gadget as they make their way into work. Modern farmers would rather use their latest UAV (drone) for a spin around the property or set up their new driverless tractor for the day’s operations – all while tracking everything via their tablets using GPS and wireless networks. . .

Manuka Health – recognised for excellence in International Business Awards

Manuka Health is delighted to be recognised as a finalist in the 2015 New Zealand International Business Awards (NZIBA) in the $10 – $50 million General Award Category. This signals the extraordinary growth experienced by Manuka Health over the past eight years and is also an acknowledgement of recent investment in a multi-million dollar plant in Te Awamutu.

Opened officially in November 2014, the Manuka Health facility is a high tech, internationally accredited laboratory, honey processing factory and global distribution centre which enables the Company to produce award-winning innovative natural healthcare products.

“We are honoured to have been recognised for our success in international business,” says Kerry Paul, CEO Manuka Health. “This comes on top of an exciting year with the opening of our world-class facility and a prestigious Gold Innovation Award for our ManukaClear™ Intensive BB Gel in the USA. . . .

 


Rural round-up

September 29, 2014

Te Puni Kōkiri Chief Executive Hails Growing Success Of Māori Agribusiness at Ahuwhenua competition launch – 2014 FOMA Conference:

Speaking at the official launch of the 2015 BNZ Māori in Farming Award – Sheep & Beef (Ahuwhenua Trophy) at the FoMA Conference in Whanganui this evening, Te Puni Kōkiri chief executive Michelle Hippolite said: “The Ahuwhenua Trophy Competition remains a preeminent showcase for excellence, achievement, and for growing Māori innovation for economic prosperity.”
Looking around the room, Michelle said that those at the conference showed the depth and calibre of talent at the helm of large Māori farming enterprises around the country.

“Over the years, most of these Māori farm enterprises had featured as entrants and finalists in the Ahuwhenua Trophy Competition,” she said. “Today the competition could be credited with driving continued improvements occurring in Māori agribusiness, and which were now pushing it to the forefront of the sector.” . . .

Second hand TradeMe buys boosts farm change – Jill Galloway & Sandra Crosbie:

Ryley Short says that when the Fonterra tanker first came to collect milk at her Mt Stewart farm there were 10 people there cheering. They were all involved in converting the farm to dairy, wanting to see it succeed.

“The tanker driver was a bit surprised,” Ryley says. “He asked if this was the first milk picked up. It was. It had been a sheep and beef farm before the conversion.”

The switch by Ryley Short and her husband Mike to dairying is a conversion with a difference. They have relied a great deal on Trade Me for secondhand equipment, which they often get cheaply. Even the dairy shed came through the online auction website. . .

Production at demo farm reaches record level  –

Daily milksolids (MS) production for each cow on the Waimate West Demonstration Farm near Manaia in Taranaki is at its highest ever.

The daily per cow MS production has reached two kilograms in the third and final season of a trial that’s investigating the viability of integrating cropping on the dairy platform.

Twenty-five per cent of the farm is being planted in crops for the trial.

At last week’s spring field day on the farm, DairyNZ scientist Kevin Macdonald produced figures showing daily milksolids per cow to mid-September was almost half a kilogram higher than last year’s figure of 1.56kg. . . .

National’s Freshwater Fund may spur on-farm wetlands:

 Having worked with DairyNZ to analyse the $100m freshwater fund policy, recently announced by the National Party, Federated Farmers believes it could vastly improve water quality outcomes.

“The Fund to retire farmland would be perhaps better interpreted as a policy to create on-farm wetlands,” says Ian Mackenzie, Federated Farmers Environment spokesperson.

“After talking with the team at DairyNZ we’ve arrived at a very different conclusion to that other groups have come up with.

“Instead of looking at this as a linear purchase of land, or trying to recreate MAF’s old farm advisory division, think more along the lines of NIWA’s guidelines for constructed wetlands.

“A fund $10 million a year could purchase at least 286 hectares. Using NIWA guidelines and if turned into strategically located wetlands, DairyNZ and Federated Farmers believe it could remove 60-70 percent of Nitrogen from around 9,500 hectares of farmland. . .

 Sweet Success for Villa Maria at International Wine Show:

It was sweet success for Villa Maria last evening, collecting nine gold medals and the trophy for Champion Sweet Wine at the New Zealand International Wine Show, held at the Crowne Plaza Hotel in Auckland.

The New Zealand International Wine show is the country’s largest wine show, in its tenth year with over 2000 global entries, it gives recognition to wines that are or will be sold in New Zealand.

The world renowned show organised by Kingsley Wood of First Glass Wines of Auckland, has a panel of over twenty experts judging the high calibre of entrants, overseen by Chief Judge Bob Campbell, MW. . .

 


NZIER: water taxes will suck Otago & Canterbury dry

September 18, 2014

Water taxes could become a regional tax on Canterbury and Otago, seriously impacting those regional economies.

This is the conclusion of a New Zealand Institute of Economic Research (NZIER) report for Federated Farmers.

Care needs  to  be  taken  when  considering  taxing  competitive  agricultural  sectors since  countries  which  have  done  so  without  strong  justification  have  performed poorly (e.g. Argentina).

While there is little policy relevant data to tell us how much water is being used by the rural sector, preliminary estimates suggest that for every cent (per cubic metre of water) the rural sector is charged, $39 million will be taken out of rural communities.

This assumes  that  the  policy  is  enforceable  and  that  any  exceptions  could  be adequately  accommodated.1

Further, if  focused  on  irrigation  only,  the  tax  will predominantly fall on Canterbury and Otago  water users  (see following table), while traditional dairying areas such as Taranaki and Waikato will pay a minimal water tax.

While water  quality  is  reasonably  good,  maintaining  water  quality  is  a  major challenge that needs  to be overcome  with the  spotlight firmly on non-point  source agricultural run-off. Farmers need to be proactive in addressing this issue or others (e.g.  over-zealous  regulators, foreign consumers)  will do so  instead, possibly in ways that are less efficient for farmers and the country than an industry-driven initiative.

Doing nothing about water quality  is  not a sensible  option.  Neither is rushing ahead without sufficient information.  

But this is not a new problem. New Zealand can learn from other countries’ water quality regulatory experiences here and hopefully avoid making their mistakes. Some key lessons are:

  •  Addressing water quality that impacts on agriculture is a long term game. Rash decisions made now could have significant and costly unintended consequences
  •  Use science to determine minimum flows to sustain healthy water ways, and be flexible and adaptive in the management of the environment as scientific knowledge improves
  •  Using markets to allocate water between competing uses can be efficient and effective when conditions allow, but be aware that market forces alone will not solve all problems
  •  Water taxes will not be an effective allocation mechanism if significant physical, regulatory or information barriers exist. Specifically, further work is required in understanding the detailed water use trade-offs since we lack the necessary policy-relevant information, data and institutional capability
  •  Where possible, including urban areas within the same water allocation and trading framework will improve efficiency. . . .

It compares the policies of the National, Labour and Green parties and says:

There certainly  needs  to  be  a  step  up  in  primary  sector  –  and  other  sectors’  – responsiveness to this issue. But durable, effective water  trading  solutions take time to develop and must be based on robust analysis and facts, not rhetoric and ideology.

Voters should  be  wary  about  promised  policy  outcomes  when  the  evidence  base around  the  economic,  environmental,  social  and  cultural  impacts  of  the  proposed policies is far from complete. . .

There are no credible arguments against the importance of good water quality, the need to prevent degradation of water ways and clean up the dirty ones.

But imposing a water tax on Canterbury and Otago farmers to address problems all over the country, some of which have nothing to do with irrigation or farming, is not the answer to poor water quality in some areas and will create other problems.

It will also impose huge costs on a relatively small number of farmers in two regions:

“Let’s not kid ourselves that the road Labour and the Greens are travelling down with Water Taxes, looks more like regional farming taxes to us,” says Ian Mackenzie, Federated Farmers Environment spokesperson.

“The NZIER have calculated that a water tax of one cent on every cubic metre (m3) of water used for irrigated and stock purposes, means $39 million would need to be paid by farmers. 

“While Labour and the Green Party won’t confirm what they are considering, in 2011, the Greens campaigned on ten cents a cubic metre.

“If that happened then Canterbury’s farmers would foot 62 percent of the cost ($248 million) while 21 percent of the cost would fall on Otago’s farmers ($82 million).  Those two regions being where most of New Zealand’s irrigation happens.

“This represents something like a 13 percent bite out of agricultural GDP in Canterbury and 12.5 percent out of Otago’s agricultural GDP.  That’s one heck of a wallop and for what?

“These taxes have little to do with the political rhetoric of tackling water quality. There are plenty of regions with little or no irrigation, which have water quality challenges due to agriculture, industry and municipal influences.  

“It seems more about revenue generation to plug big spending promises and farmers, horticulturalists and vintners in Otago and Canterbury are being lined up to foot the bill.

“There’s no mention that these same businesses already pay thousands of dollars each year in ‘taxes’ to regional and district councils for the privilege  of accessing water.

“It doesn’t take a rocket scientist to work out that water taxes will only drive up the cost of food production, especially locally grown fresh vegetables and fruit.

“Are Kiwis really prepared to gift our domestic food market to other countries by pricing ourselves off the market?

“Labour and the Greens claim it will drive better and more efficient use of water. Well they are too late. Over the past ten years or so, farmers have been spending hundreds of millions of dollars upgrading on and off-farm irrigation infrastructure to more efficiently use water.

“This is plainly obvious for all to see in Canterbury with the proliferation of centre pivot irrigators.  With each one costing some $250,000, they allow the farmer to use substantially less water producing more food and fibre over traditional border dykes.

“There’s only so much money to go around for farmers to invest.  These proposed tastes will only slow down or stop a farmers’ ability to invest in new technologies.

“You’ve got to remember that we’re only using a fraction of New Zealand’s renewable freshwater resource, but the proper word is renewing.

“As the NZIER also notes, there are large informational, institutional and implementation gaps on water taxes. In our view, water tax proposals should have ‘use with caution’ in flashing red lights.

“If you want an example of a country with ill-founded and ill-thought out taxes that are like a wrecking ball through the primary industries then Argentina provides it.  Dr William Rolleston visited it earlier this year and saw for himself how everyone loses out there.

“By attacking Canterbury and Otago irrigators, there is such a dislocation between who you tax and the problem you want to solve, that the only thing you hurt is the economy.

“That’s why the media, politicians and commentators need to heed NZIER’s advice that, “care needs to be taken when considering taxing competitive agricultural sectors since countries which have done so without strong justification have performed poorly”.

“With some trading partners increasingly believing we are not responsibly harnessing our water resources to guarantee production, this is no place for policy experiments,” Mr Mackenzie finished by saying.

We don’t need an expensive experiment the direct costs of which will be carried by a relatively small number of farmers and the indirect costs of which will impact on Otago and Canterbury.

We need more of what’s already working.

This includes independently audited environmental plans for farms, which is what the North Otago Irrigation Company requires of all its water users.

Farmers already had lots of reasons to vote for another National-led government. This report provides them with more.


How much will people pay?

September 9, 2014

A correspondent to the Otago Daily Times, rev Steve O’Connor, (not online) asks:

Is it stupid to try to clean up our rivers and lakes inside a generation? Is it stupid to aspire to having all rivers and lakes swimmable, fishable and suitable for food gathering? Is it stupid to have regulatory safeguards and charge a little bit for large water takes for irrigation? . . .

We don’t have to choose between a thriving primary industry and clean water. We can have both. . .

To which Ian Mackenzie, a Federated Farmers board member responds:

The question Rev Steve O’Connor should be asking is how much he is prepared to pay in extra rates to clean up the Leith to swimming standards? that is to the standards of Moana Pool.

At the moment, run-off from the streets of Dunedin contaminates the Leith to about four times the acceptable level of E. Coli for safe swimming.

That has nothing to do with farming but it is he and the greater population of North Dunedin who are responsible.

I can now swim safely in the creek that flows through my farm because for years we have been investing in stock exclusion and riparian planting to ensure good water quality .

What did the rev O’Connor’s boss say about ‘he who is without sin’?

It is possible to have a thriving primary industry and clean water.

It is also possible to have clean water in urban areas but it will take time and money to achieve the high standard required for food gathering and swimming in many places.

How do the urban people so keen to have farmers – who by and large are already doing their bit to clean up the waterways they border – pay more, feel about paying to clean up waterways in their towns and cities?


Water policy attack on rural NZ

August 11, 2014

Environment Minister Amy Adams says Labour’s water tax is a pointed attack on rural New Zealand and small businesses that operate there.

“Labour is suggesting that rural New Zealand should pay taxes that no other New Zealander has to pay and should abide by rules that other water users aren’t subject to,” Ms Adams says.

“In fact, under Labour’s plan, the productive sector could be hit with a $60 million bill for every one cent of tax Labour imposes per cubic metre of water.

“You have to ask why Labour is looking to penalise farmers and small, rural businesses by making them and only them pay for water use when the issue of water quality is one that applies across urban and rural New Zealand.

“It’s an out-and-out attack on rural and provincial New Zealand.

“Only a few days ago Labour was claiming they supported small businesses. However, Labour’s water tax, which they are hiding the amount of, would cause real damage to hundreds of small, rural businesses in the productive sector.

“It’s not just costs dairy farmers would have to bear. Sheep and beef farmers in Canterbury, apricot growers in Roxburgh, market gardeners in Pukekohe and kumara growers in Dargaville could all be hit by Labour’s water tax.

“As Irrigation New Zealand points out, an equitable and affordable water tax will be impossible to implement and will cost a fortune to establish.

“If it was really about ensuring efficient water use, why is every other commercial water user, except farmers, exempt?

“A water tax will increase the cost of production which could mean higher costs for New Zealanders for products like milk, cheese and fresh vegetables.

“Improving the quality of our freshwater is important to us all but we must do it sensibly so it doesn’t cost thousands and thousands of jobs across regional New Zealand and impose millions of dollars of costs on communities.

“National’s plan will improve and maintain the economic health of our regions while improving the health of our lakes and rivers at the same time.

“With policies like this, Labour might as well give up the pretence that they care about rural and provincial New Zealand and the small businesses that are at the heart of these areas.”

Labour plans to tax “big” water takes but only those in the country that are used for irrigation.

If water has a taxable value for irrigation, why doesn’t it have a one for other big takes – like power generation and urban water supplies?

Labour isn’t going there because that would be too cost them far too much support.

For all they keep talking about supporting the regions they know they’ve got hardly any support there so it doesn’t matter to them that the tax will add costs to farming.

Unfortunately, while doing that,   it won’t contribute to their aim to clean up waterways:

. . .  IrrigationNZ does not believe that imposing an irrigation tax will lead to New Zealand’s rivers and lakes becoming swimmable.

“This policy fails to recognise the complexities of freshwater management in New Zealand and ignores the billions of dollars of on-farm capital investment which has been put into improving our waterways,” says Andrew Curtis, IrrigationNZ CEO. “A ‘fair and affordable’ variable rate water tax will be impossible to implement and will cost a fortune to establish,” he says. “In no other country in the world is irrigated water paid for through a tax.”

“There is much about Labour’s water policy which aims to yield the economic and recreational benefits of New Zealand’s water for all, this is good, but punishing irrigators by imposing a water tax is not the way to achieve this.

“The only robust and long term solution to restoring waterways is on a case by case basis engaging local communities to find solutions.

“It is time that the value of irrigation in terms of food production and creating jobs is recognised in New Zealand, as it is in every other part of the world. There is considerable public good gained from sustainably managed irrigated agriculture.”

IrrigationNZ would like to point out the following:

• Horticulture and viticulture is not possible in New Zealand without irrigation, therefore an irrigation tax will increase the cost of production and will be passed onto the public when they buy their fresh produce;

• irrigation in New Zealand is not free: irrigators pay for a water permit, pay to be part of an irrigation scheme, and operate within strict limits;

• it is inequitable to single out irrigators when hydro generators, commercial users and urban user will not be charged for their water takes;

• a charge on irrigators will reduce money available for mitigating environmental impacts;

• agriculture has been the backbone of this economy through what have been very challenging economic times globally – everyone has benefitted and now everyone needs to be part of the solution for cleaning up our waterways.

INZ is committed to finding a way for New Zealand to develop sustainably managed irrigation schemes within acceptable environmental limits.

“Water is our most valuable renewable resource and we believe that irrigation in New Zealand is essential to protect against climatic variations and to enhance the country’s ability to feed its population and to contribute to feeding the world,” says Mr Curtis.

Federated Farmers says its a thinly disguised anti-farming policy:

Federated Farmers is asking why the Hon David Cunliffe is talking about helping regional economies on one hand, while announcing new taxes on those same regions to knock them back on the other.

“This is a thinly disguised anti-farming policy that is trying to blame farmers and particularly farmers who irrigate, for all of New Zealand’s water problems,” says Ian Mackenzie, Federated Farmers Environment spokesperson.

“It is clearly misguided and worse it is opening the divide between town and country when we should be working together.

“They know they cannot bring all rivers and lakes up to swimming standards without rebuilding all urban storm water systems and clearing New Zealand of wildfowl at all, let alone, in 25 years.

“Taxing irrigators in Canterbury and Otago to fix up degraded waterways in other parts of the country seems patently unfair.

“As for the practical effect of their anti-farming Resource Rental policy, it can be summarised in Northland, Auckland and the Bay of Plenty as being principally a tax on horticulture.

“In Marlborough and I guess in parts of Hawke’s Bay plus Wairarapa too, it is a tax on grapes as well as fruit and vegetables.

“For the rest of us, it is a tax on wheat, vegetables and pasture production.

“Independent economic modelling indicates that a Resource Rental on water at one-cent per cubic metre of water takes $39 million out of farms and provincial economies.

“This is all money that farmers are currently spending on protecting rivers and streams. Money that is making the towns of Ashburton, Pleasant Point and Oamaru places of employment for thousands of people. The same provincial economies that David Cunliffe wants to help.

“I don’t understand how you can help those towns by punitively taxing the one thing that has driven some prosperity in those regions.

“The Greens want to beat up dairy farmers, Labour wants to do it to irrigators. When will these people realise that others in New Zealand take and pollute water as well.

“Irrigation may take 57 percent of water used but residential and industrial users take 43 percent according to Labour’s own source document. It seems a bit one sided to continuously blame only one sector of the community for effects caused by everyone.

“As New Zealanders we need to collectively own up to our responsibilities and work together if we are to make a difference.

“Farmers have done that. It is time Labour and the Greens recognised that and argued for policies that encouraged the rest of New Zealand to do so too,” Mr Mackenzie.

A general charge would impose costs on production which will affect profit margins or be passed on to consumers in higher prices for food.

It will also be imposed on those doing all they can to keep water clean – which is the majority of farmers – rather than directly targeting the few who don’t.

Water didn’t get dirty overnight.

It will take time to clean it up but good work is being done already with co-operation between farmers, milk companies, councils and community organisations.

That work won’t be helped by labour’s policy which is merely another of their anti-farming taxes.


Blue better for water than Green

July 30, 2014

Green isn’t the best colour for water, Federated Farmers environment spokesman Ian Mackenzie says:

The National Policy Statement (NPS) for freshwater may not have razzmatazz, but arose from that exercise in consensual collaboration called the Land and Water Forum [LawF].  It was the first time industry, councils, government departments and groups from Federated Farmers to Fish & Game, sat down to openly address water issues and find solutions.

At the heart of the NPS are our regional councils, who have been tasked with maintaining and improving water quality while bringing the poorest water quality up to a national minimum standard.  With next to no exceptions, this policy applies to all water bodies whether they are in town or country. This was an essential part of the LawF consensus and the government chose secondary human contact as the national minimum standard.  All of New Zealand’s top water scientists were involved in this.

The Green Party claim they are advocates for the environment and I would have thought they would have welcomed this important piece of legislation; whose intent is to keep New Zealand’s fresh water as the best in the world.

Being a farmer and with so many conflicting claims about water quality you may be dubious about what I am saying.  For an objective ‘warts and all’ water picture, can I direct you to the Land and Water Aotearoa (LAWA) website at www.lawa.org.nz.  It confirms our water quality is generally good, with many rivers and streams improving thanks to farmers’ efforts at riparian protection.

What we know is that most swimming spots monitored by regional councils over the warmer months are generally satisfactory for swimming.  The Greens often claim “60 percent of our water” is unsafe, but a vast number of sites are affected by urban runoff.  

When poor water standards are mentioned too many people blame farming but some of the worst water quality is in urban areas and the result of urban activities.

Now, the Green Party wants to make all water bodies swimmable.   This is disingenuous because of the sheer difficulty and cost of achieving it.

There are 425,000 kilometres of waterways in New Zealand, which would have to meet those swimming standards, 24 hours a day and 365-days of the year. 

The LAWA website states, “rivers and streams in (or downstream of) urban areas tend to have the poorest water quality (the highest concentrations of nutrients and bacteria, and lowest macroinvertebrate community index (MCI) scores).” This is because all our urban storm water systems are designed to use urban rivers and streams to take away all this run-off.  

The Landcare Trust is running a community project to clean up some of the urban streams that flow into the Tamaki River. Regardless of that effort and enthusiasm they will never be able to stop those streams from being contaminated to the extent that they will become safe for swimming. Think of the 150-page NZ Standard for public swimming pools, “to ensure the risk to public health is minimised.”  Most small schools have had to close their swimming pools because of problems maintaining that and other standards.   Trying to apply that standard to all fresh water bodies is a nonsense. 

This is where the Green Party is disingenuous.

When they say ‘all water bodies,’ they really mean only those in the countryside because they do not wish to alarm their core urban constituency.  The Green Party ignores the huge shift in farmers’ attitude towards environmental stewardship and underplays quantum leaps in management and mitigation of farm nutrients, the fencing of waterways, riparian planting, the strategic application of fertilisers and nutrient budgeting and the effects these are having on improving water quality.  The Greens do not mention that many of the sites NIWA test for its National Rivers Network that fail swimming standards are in fact rivers and lakes affected by urban run off. Instead they continue to blame farmers.

There is still more to be done but the imposition of higher standards by regional councils and improvements in farming practices are making a positive difference in many areas.

Farmers like me acknowledge that there is a lot more work we need to do and the vast majority of us are adopting practices and spending tens of millions of dollars a year which, given time,  will sort out our contribution.  But we are not the sole cause or the sole solution.  River quality reports are already showing the benefit of a change in farmers’ attitude toward environmental stewardship, but this narrative doesn’t fit the Green’s script.

The NPS by contrast will be law.  It gives communities the power to decide how much progress needs to be made and over what timeframe. It specifically encourages communities to decide what they want for their rivers and lakes while balancing that with the costs to society and the economy. It has the fish hook that over time, all water bodies will have plans for how they will meet community aspirations, so if the students of North Dunedin decide they wish to swim in the Leith at anytime and the ratepayers of that great Southern town can afford it and are prepared to prioritise that spending over all other, then that is their choice. My guess is the cost will have that city’s burghers muttering darkly at their haggis and prevarication will win.  That’s been the case in most major urban centres. 

The NPS may not have the sexy but implausible sound bite ‘swimmable for all’ but it gives that choice to the community to decide. It is practical, pragmatic and is the law. With water we’re in this together and the NPS underscores that. 

 The idea of being able to swim in every body of water is attractive but expensive and almost certainly an impossible standard to reach everywhere.

Dairying and recent intensification is blamed for poorer water quality but dirty water isn’t new.

My father was a carpenter at what was then Waitaki freezing works at Pukeuri  more than 40 years ago. That’s when the company had to build a huge reservoir to hold water which had to be treated because the water from the Waitaki River, which supplied Oamaru and other smaller settlements, wasn’t fit to wash export meat.

We’ve come a long way since then and while dairying is blamed for the problem it’s also working hard to be part of the solution with initiatives such as Fonterra’s Grassroots Fund:

Fonterra Grass Roots Fund

For those of you in Southland, head on down to Fonterra’s Living Water programme tomorrow with the Department of Conservation which works to enhance sensitive water catchments across New Zealand! Hear our plans, suggest ideas and get involved with some future volunteer opportunities. Enjoy demonstrations by freshwater scientists, a live fish tank display of local freshwater species and a BBQ lunch. It should be a great day! Address: Craws Creek Scenic Reserve, Waituna Lagoon Road, Friday 25th 2014 from 9:30 – 12:30. Any questions, please contact livingwater@fonterra.com
Photo: For those of you in Southland, head on down to Fonterra's Living Water programme tomorrow with the Department of Conservation which works to enhance sensitive water catchments across New Zealand! Hear our plans, suggest ideas and get involved with some future volunteer opportunities. Enjoy demonstrations by freshwater scientists, a live fish tank display of local freshwater species and a BBQ lunch. It should be a great day! Address: Craws Creek Scenic Reserve, Waituna Lagoon Road, Friday 25th 2014 from 9:30 – 12:30. Any questions, please contact livingwater@fonterra.com

There is general acceptance of a need to improve water quality in many areas.

The argument is about how far improvements need to go.

National’s policy imposes a a minimum standard.

It leaves it up to communities to decide how much higher they want, and can afford, their water quality to be.

They are the ones with the most to gain from cleaner water and they are the ones who will have to pay for it.

The Green policy sets an impossibly high standard and leaves communities with no choice regardless of their wishes and priorities.

Blue is a much better colour for water than green.


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