Rural round-up

November 6, 2015

Lochinver Station sells to New Zealand buyer:

One of New Zealand’s largest farms, Lochinver Station in the central North Island, will remain in New Zealand ownership following its sale for an undisclosed sum to privately owned New Zealand farming group Rimanui Farms Ltd.

It will take over the ownership of the 13,843 hectare sheep and beef station, upon settlement of the sale in March next year, from one of New Zealand’s largest private companies, Stevenson Group Limited, which has owned it for more than half a century.

Bayleys Real Estate recommenced marketing the property last month after the Government announced it had turned down an Overseas Investment Office application from Chinese company Shanghai Pengxin’s subsidiary Pure 100 to buy the property. . . 

IrrigationNZ calls for 350,000ha more land to be irrigated – Sophie Boot:

(BusinessDesk) – IrrigationNZ is calling for a dramatic escalation in irrigation, saying New Zealand could bring water to an additional 350,000 hectares by 2025, boosting agricultural production and providing a buffer against weather events such as El Nino-induced drought.

The lobby group wants a 50 percent increase in irrigated land in the next 10 years, according to its industry snapshot released today. New Zealand currently has about 720,000 hectares of irrigated land, and IrrigationNZ has produced a map showing where irrigation could be expanded, pushing total watered land to more than 1 million hectares.

Chief executive Andrew Curtis said New Zealand’s primary production growth is being hampered by a lack of a reliable water supply, which ultimately holds back economic growth. . . 

No jobs?  move to the regions, urges govt:

Unemployed people are being urged to look to the regions for work by the government, after the unemployment rate broke the 6 percent mark yesterday.

The rate is now at its highest point in two years and economists have predicted that it is likely to rise further.

Listen to more on Morning Report ( 4 min 32 sec )

But Steven Joyce, Minister of Tertiary Education, Skills and Employment told Morning Report it was a “multi-regional story”, with lot of shifts around the country.

He said that in some regions such as Otago and Northland, there were shortages of people applying for jobs, and unemployed people should consider moving if they could. . . 

Forestry joins GIA biosecurity agreement:

The forestry industry has become the sixth industry group to join the Government Industry Agreement (GIA) biosecurity partnership, Primary Industries Ministers Nathan Guy and Jo Goodhew have announced today.

“It’s great to have the New Zealand Forest Owners Association (FOA) onboard, working with the Ministry for Primary Industries to manage and respond to the most important biosecurity risks,” says Mr Guy.

“A growing number of industries have now signed up to work together with the Government through the GIA.” . . 

Forest defence bolstered by agreement with government:

The Forest Owners Association says having a biosecurity agreement with the government is a vital part of the forest industry’s defence system.

FOA chief executive David Rhodes and primary industries minister Nathan Guy today signed what is known as a Government-Industry Agreement at Parliament. The agreement defines where responsibilities and costs will fall in the event of an outbreak of a serious forest pest or disease.

“For 50 years we have had a forest health surveillance scheme that is seen by overseas experts as one of the best in the world. But being ‘best’ is not good enough, we need it to be as near to perfect as we can make it,” says Mr Rhodes. . . 

FMG's photo.


Rural round-up

October 15, 2015

Farmer saved seed to be retained:

The recently concluded Trans-Pacific Partnership trade talks have created disappointing doomsayer discourse.

Some misinformed commentators have a view that farmers will be stopped from saving some seed from their crops.

NZ Plant Breeding and Research Association (PBRA) President Tom Bruynel says there is no intent at all by the seed industry to get rid of farmer saved seed.

He says the Association and the Arable Industry Group of Federated Farmers have been jointly saying that the right to save seed needs to be part of any updated plants legislation and there is agreement in principle that there be a fair and simple system of royalty collection for seed that has been kept back for sowing. . . .

Judicial review sought of Lochinver decision:

Pure 100 Farm Limited (Pure 100), a subsidiary of Shanghai Pengxin, is seeking a judicial review of the Government’s decision to decline its application to purchase Lochinver Station.

Announcing the decision, Terry Lee, Director of Milk New Zealand (a subsidiary of Shanghai Pengxin) said the aim of the review is to obtain clarity on the ‘counterfactual’ to be used when assessing sales of non-urban land of greater than 5 hectares to overseas investors.

“To assess the benefits of an investment in such land, the regulator assesses the application against 21 factors which are laid out in the Overseas Investment Act and the Overseas Investment Regulations. These benefits are assessed relative to what would have occurred if this particular investment was not to occur i.e. ‘the counterfactual’. . . 

Ploughing the perfect well-turned furrow – Kate Taylor:

The drawcard of ploughing competitions for Tirau farmer Angela Taylor are the challenge and the camaraderie.

“There’s a lot of technique to it and you need a lot of concentration,” she says.

“There’s the satisfaction of achieving and improving, and the pride when you look at the straight furrows afterwards.” . . .

Innovation key to food security – Daniel Kruithoff:

AUSTRALIAN Prime Minister Malcolm Turnbull has put innovation at the heart of the government’s efforts to improve the country’s global competitiveness.

The government’s renewed focus on the pivotal role innovation plays in helping us overcome complex challenges is welcome.

And I can think of no more complex challenge than sustainably producing enough food to meet rapidly rising global demand.

It is hard to not be alarmed by the looming collision of a rapidly growing population and a changing, more volatile climate. . . 

Organic GMOs Could Be The Future of Food — If We Let Them – Ferris Jabr:

Two years ago, I traveled to Woodland, California, to meet scientists who were developing tastier and more nutritious fruits and vegetables. On the way to the research center, my taxi driver asked what had brought me to town. “Well,” I started, “I’m a journalist and I’m here to visit Monsanto.” “Monsanto? They do all that unnatural GMO stuff, right?” “They do make a lot of GMOs,” I replied, “but the scientists I’m visiting do not use genetic engineering.” Instead, they perform marker-assisted breeding. They chip off tiny bits of seeds and young plants and analyze their genes in search of desirable traits. Then they use that information to decide which seeds to plant and, later, cross-pollinate and which ones to reject, speeding up the traditional plant breeding process. “And that’s not GMO?” my driver asked. “Since they are just reading the DNA, not changing it, it’s technically not a form of genetic engineering,” I answered.

I was about to go on, but I caught myself. In part because I worried that I was on the verge of subjecting another human to an unexpected seminar on plant genetics. But, more fundamentally, because I realized that what I had just said was wrong. Of course the breeders at Monsanto were changing the plants’ DNA. That is what breeders everywhere have done for centuries, regardless of their tools. That is what the pioneers of agriculture started doing at least 10,000 years ago. That is what sex itself does: it shakes up DNA. In that moment, I realized just how meaningless the term GMO is, and how obfuscating it is, too. . . 


Rural round-up

September 18, 2015

Why the government has finally stopped a Chinese farm purchase – Politik:

The offer by a Chinese company to buy Lochinver station was turned down by the Government largely because the potential buyer was not proposing to invest much more money on the station.

Government sources have told POLITIK that the buyer, Shanghai Pengxin subsidiary, Pure 100 Farm, was proposing to spend only another $3 million extra on the station.

“What’s that – two and half Auckland houses?” said the source. . . 

Lochinver decision was a slow process:

The Overseas Investment Office could be in for an overhaul after concerns about the time taken to make a decision over Lochinver Station.

Shanghai Pengxin had agreed to buy the country’s biggest dairy farm for $88 million but ministers said there weren’t enough benefits for the country.

It took 14 months before the deal was finally blocked, and the owners are angry at the delays.

The Prime Minister admits it is a slow process which needs to change. . .

Federated Farmers welcomes government decision on Lochinver sale:

While Federated Farmers supports positive overseas investment into New Zealand’s farming system, it has welcomed today’s announcement by the Government that it has declined the sale of Lochinver Station to Shanghai Pengxin Group Co. Limited.

“New Zealand absolutely needs foreign investment, but there has to be clearly demonstrated benefit to the local and national economy. This was not proven here and we believe the Lochinver decision reinforces the importance of changes made to the Overseas Investment Office rules over recent years,” says Dr William Rolleston, President of Federated Farmers. . . 

Putting a dollar value on using good beef genetics:

Beef + Lamb New Zealand (B+LNZ) Genetics is launching a new progeny test to put a dollar value on the extra profit that can be added to the dairy-beef supply chain by using good beef genetics.

At its core, the four-year test will calculate the additional value that can be added by using high-genetic-merit beef bulls, versus the unrecorded bulls traditionally used as “follow-on bulls” in most New Zealand dairy systems. What are the financial advantages for the dairy farmer, calf rearer and beef finisher?

Limestone Downs near Port Waikato is a high-profile trust-owned property, covering 3,200ha and wintering about 27,000 stock units. It has a long-standing relationship with Massey University and is often used to trial research projects in a commercial setting. The operation converted 350ha to a dairy milking platform two years ago and runs 610 Friesian cows and 190 heifers.

Ewe won’t believe the number of lambs –  Cameron Massey:

A first time mum in Thames doesn’t do it by halves – giving birth to quintuplet lambs.

Thames resident and ex-sheep farmer Weston Finlay keeps sheep on his property to keep the lawns in check and when he was offered a second ewe to accompany his first he couldn’t see any problem.

Only the new sheep was not a ewe at all. . .

Dos and Don’ts of bringing up a pet lamb: – Peter Fowler:

It’s that time of year again: schools around the country are holding pet days, and pet lambs proving a popular option. 

But bringing up a pet lamb can be fraught with difficulty. Rural News went to Elsthorpe Primary School in central Hawke’s Bay to find out from one of the winners of the pet lamb competition what it takes to bring up a champion lamb.

Phoebe, who has been a winner in the competition for four years in a row, said the first consideration was having enough space for the lamb.

Economic growth boosted by services and primary industries

Growth in services and primary industries supported a 0.4 percent increase in GDP in the June 2015 quarter, Statistics New Zealand said today.

Agricultural production increased 3 percent in the June 2015 quarter, due to increased meat and dairy farming.

“Despite falling milk prices, we’re seeing growth in dairy production,” national accounts manager Gary Dunnet said. “But over the year, agriculture is up only a little, due to dry conditions last summer.” . . 

Hunt for great dairy pastures is on again:

The hunt is on for great dairy pastures in the Waikato and Bay of Plenty.

Entries are now open for the Pasture Renewal Persistence Competition run by the DairyNZ-led Pasture Improvement Leadership Group.
Competition organiser and DairyNZ developer Sally Peel says pasture renewal is one of the first steps to achieving high performing pastures. Improving poor yielding paddocks through good renewal practices can achieve substantial increase in pasture tonnage.

The competition has been running for five years with winners from all across the two regions.
Robert Garshaw of Waiuku won the 2014 best first year pasture. “Decisions such as cultivar and endophyte choice do matter. It’s really important to figure out what works well out of your farm and make the most of the establishment period,” says Robert. . . 

 


Ministers say no to Lochinver sale

September 17, 2015

Ministers have declined an application by a foreign company to buy Lochinver Station:

An overseas company’s application to purchase Lochinver Station has been declined because the benefits to New Zealand are not substantial and identifiable, Ministers Paula Bennett and Louise Upston say.

Pure 100 Farm Ltd, a subsidiary of China-based Shanghai Pengxin, applied to the Overseas Investment Office (OIO) last year to buy the 13,800 ha farm near Taupo for $88 million.

“Because Lochinver Station is classified by law as sensitive land, Ministers must consider whether the application meets the requirements set out in the Overseas Investment Act,” Associate Finance Minister Paula Bennett says.

“While we recognise and support the importance of overseas investment, the Overseas Investment Act states it is a privilege for overseas people to own sensitive New Zealand assets and therefore requires such investments to meet statutory criteria for consent.

“After detailed and careful individual consideration, we are not satisfied there will be, or is likely to be, a substantial benefit to New Zealand – a key requirement for applications of sensitive land of this size.”

While the OIO said the question of whether the benefits of the potential investment to New Zealand are or could be substantial and identifiable was finely balanced, it recommended approving the application.

“We agreed parts of the proposed investment could benefit New Zealand but in our judgement on the overall balance of evidence, the benefits are not likely to be substantial and identifiable,” Land Information Minister Louise Upston says.

“This proposed sale didn’t pass a test we are required to exercise Ministerial judgement on.

“This is an example of our system working well.  The OIO conducted a thorough investigation before making a finely balanced recommendation.  Ministers carefully assessed the evidence and ultimately came to different view.”

A summary of the reasons for the Ministers’ decision can be found here.

This decision shows the bar for overseas ownership of farm land is set very high.

It is very difficult for a would-be foreign buyer to prove that it would provide more benefits than a local one, even if the local is hypothetical.

 


Rural round-up

August 18, 2014

The circus of foreign ownership – Dr William Rolleston:

The Election has suddenly sparked into life. It was not a policy, a pratfall or a stunt, but Shanghai Pengxin Group’s Overseas Investment Office (OIO) application to buy Lochinver Station.

While Federated Farmers has taken the principled position of trying to learn what the ‘substantial and identifiable benefit’ to New Zealand is of this proposed sale, others have gone off the proverbial deep end.  National has been far too dismissive of concerns being raised in some quarters. Labour has gone to the opposite end by announcing they’d block the sale, along with the Greens.  Meanwhile, NZ First will go further and stop all foreign sales of New Zealand farmland.  That seems to be the position of Colin Craig, who stepped into Mr Peters shoes by breaking this story.

What everyone seems to have forgotten is process.  Our overseas investment rules are meant to operate on fair play under the guise of the OIO.  Instead, it has turned into an election political circus. The coverage of which, has gone global, given the media who have contacted me. . .

Meat and fibre’s time to shine – Rick Powdrell:

Boy oh boy, doesn’t it feel good to be a sheep and beef farmer for once. Of course it wasn’t always that way.  We were the dairy industry for decades, almost as soon as the Dunedin slipped out of Port Chalmers in1882, we rode the sheep’s back.  The good times operated under a simple business model.  We grew meat and fibre and Britain needed it.

Through war and peace, these good times seemed destined to run forever.  Our success blinded us to what the bright sparks at companies like DuPont were doing.  That was until they ‘wool-jacked’ us with oil based fibres.  That wasn’t helped by lamb being seen in the 1970s as your grans’ meal. You could have lamb cooked anyway you wanted as long as it came in a roasting tin.  Other meats became trendier and in some instances, cheaper, while our industry was trapped in a Sunday roast.  . .

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Demand drops for malting barley – Annette Scott:

A shrinking number of Kiwi beer drinkers is creating less demand for malting barley.

As beer consumption falls, coupled with higher prices for New Zealand barley, breweries require less malt and malting companies less barley.

Marton-based malting company Malteurop NZ operations manager Tiago Cabral said New Zealanders’ drinking habits were having an impact on the company. . .

 

Worth sharing - thanks The Horse Mafia

NSW $10m beef deal with China – Roderick Makim:

NSW beef suppliers have secured a $10 million export deal to the Chinese market.

Producers including Andrews Meat Industries in Lidcombe and the Northern Co-operative Meat Company Ltd in Casino are among the NSW suppliers involved in the deal, Deputy Premier Andrew Stoner said today.

Mr Stoner announced the deal while visiting Hong Kong and Shenzhen for a three-day trade mission along with representatives from a range of NSW food companies. . . .


70,000,000 reasons for sale

August 10, 2014

Tim Worstall, writing at Forbes, says there’s 70,000,000 reasons for selling Lochinver Station:

There’s a slightly bizarre argument going on over in New Zealand over the ownership of a large farm, Lochinver Station. The argument is over whether it’s right or not for it to be sold to a Chinese company. There’s so many things wrong with even having the debate that it’s difficult for we foreigners to get our minds around it. For a start the very definition of private property is that you can dispose of said property as you wish. If you can’t then it’s not actually private property any more. But more than that the basis of the argument against allowing the sale seems to be that the sale should be in New Zealand’s economic interest as a whole. Which, of course, it is, there’s 70 million benefits coming into the country in the form of the $70 million that’s being paid for it. Why the debate continues after this is a mystery. . .

The debate continues because of emotion and politics.

. . . To which I would just add that one about the 70 million benefits. A foreigner (a corporation, an individual, it doesn’t matter) is bringing money into the country to pay for Lochinver Station. The price that’s being paid is, by definition, everyone’s best guess as to the total current value of all of the future profits from that farming operation. This is thus an addition of $70 million to New Zealand’s capital stock. Before, there was the farm worth $70 million. After the sale there will still be the farm, which will still employ people, pay taxes and so on. And also the family operation that used to run the farm now has $70 million. The deal adds to the capital stock of the country and what makes a place richer is increasing the amount of capital that is added to the labour of that place. Thus there’s 70 million benefits to the sale, each dollar being paid over being a benefit of one dollar.

Other than a xenophobic appeal to economic populism (and those with long memories might care to ponder on where said autarkic populism led the economy under Robert Muldoon) there’s really nothing at all to support the idea that Lochinver Station cannot be sold to anyone at all who wants to buy it.

Private property rights and economics mean nothing to the xenophobes opposing the sale.

They also fail to see the benefits to the seller and the country from those $70,000,000 and all the other money the would-be purchaser, Shanghai Pengxin,  will have to put into the farm to meet the very strict criteria of the Overseas Investment Office.


We’ve grown

August 9, 2014

Foreign investment is an issue which bubbles away in the background with the occasional boil over, usually based on emotion not facts.

This week’s fuss over the sale of Lochinver Station is a prime example.

The rules for foreign investment were already tight and National tightened them further.

Foreign buyers of sensitive land must convince the Overseas Investment Office they can meet strict criteria – including delivering greater economic, environmental and social benefits than a local buyer would.

This isn’t just a matter of ticking boxes.

A friend manages farms owned by a foreign company and he says they are strictly monitored to ensure they are doing what they said they’d do.

This isn’t good enough for politicians who sense an opportunity to grab a headline and garner votes.

The concern is that if emotion rules, New Zealand and New Zealanders will be poorer.

Foreign investment brings benefits as John Roughan points out:

Foreign investment seems to have done us no harm. In fact we would be a smaller, meaner, more worried place without it. We’ve grown.

Prime Minister John Key has said if there’s a run on our land the government will act.

There is a need for a discussion on what would constitute a run and the total area of foreign ownership we should allow.

But that should be based on reason not emotion.

Foreign investment has helped us grow and poor policy based on  political opportunism by politicians desperate for attention could threaten future growth.

We’ve grown and we need some foreign investment to ensure we keep growing.


Rural round-up

August 8, 2014

 Anti-foreigner stance ‘short-sighted’:

A New Zealand farming leader says he’s frustrated that a range of political parties are targetting foreigners and saying they shouldn’t be allowed to buy farms.

Federated Farmers vice president Anders Crofoot bought Castlepoint Station in Wairarapa after moving to New Zealand from the United States in the 1990s and went through the Overseas Investment Commission to do so.

The Labour Party has said that if it wins the general election sales of rural land to most foreigners will be banned. . .

Dairy farm purchase boosts employment

The purchase of a North Otago dairy farm by a company founded by a South Canterbury businessman will create more local jobs, the company says.

Craigmore Sustainables has received Overseas Investment Office approval to purchase a dairy farm in Tussocky Rd, months after buying three other farms in North Otago.

Craigmore is the brainchild of South Canterbury businessman and farmer Forbes Elworthy and is based in London. It also has offices around New Zealand.

“We have an extensive development programme in place for this property, including building a dairy shed, new effluent system, and native planting to assist with nutrient management,” the company’s director of commercial development, Hamish Blackman, said. . .

Lochinver owners want sale money for development – Patrick Gower:

The Kiwi seller of Lochinver Station is a century-old Kiwi business and wants to use the $70 million for a major property development that will help the expansion of Auckland.

Sir William Stevenson was the driving force behind his family’s business empire. He bought Lochinver Station 60 years ago, turning it from a vast wasteland into thriving farmland with 100,000 sheep.

Now, the family’s attempt to sell could be blocked by politics. Sir William’s friend Morrin Cooper says he wouldn’t like that.

“The Stevenson family deserve better than this: to be used as a chopping block just because there happens to be an election around the corner.” . . .

Trade talks failure may cost NZ in Korea:

The Agricultural Trade Envoy, Mike Petersen, is warning that farmers are in danger of losing out in the lucrative South Korean markets if trade talks fail.

The latest round of negotiations have been taking place in Seoul this week.

Last week the Minister for Trade, Tim Groser said he had given his final offer to the Koreans to resolve issues such as easing tariffs for New Zealand’s farmers, which cost exporters $195 million a year. . .

In lean times, it’s still vital to look after your workers – Chris Lewis:

The buzz about town is the revised pay-outs announced by Fonterra and Westland, which have both dropped significantly. So the pressure will be mounting this spring as farmers try to keep their heads above water. In times like these it is important to run a tight ship, not only financially but with your staff.

Stress has a way of brushing off onto those near you so look after yourself and bear a thought for your staff and your family who will not be immune to the pressure. A farm has many different aspects to it and a well cared for and oiled machine will ride out the tough times a lot smoother than one that has been roughing it or neglecting it. . .

Farmers take over yarn mill – Alan Wood:

Wool farmers have an agreement in place to buy a Christchurch yarn mill, describing the deal as a “significant” industry event to supply the carpet manufacturing industry.

Christchurch Yarns NZ went into receivership in April with the high kiwi dollar one of the challenges the business was up against at that time.

The dollar has remained stubbornly high since then and yesterday was trading around US84 cents and A90 cents.

The business was originally Christchurch Carpet Yarns and has its production facility based at a leased Sheffield Cres, Harewood property near Canterbury Technology park. . .

$3m grant boosts agri chemical research – Sue O’Dowd:

Research funding will help a Taranaki chemical-manufacturing company develop products its customers want.

Zelam is one of 52 Taranaki businesses to have received government research grants in the past three years to help them take their ideas for products and services to market.

For the next five years 20 per cent of Zelam’s eligible research costs will be refunded by Callaghan Innovation, a government agency that provides money to businesses that invest in research and development. Each year Zelam invests up to $3 million in chemistry and field trials. . .

"LA PRODUCCIÓN AGROPECUARIA EMPUJA TODA LA ECONOMÍA" Pepe Mujica – Presidente de Uruguay “No estoy de acuerdo con el dejo peyorativo, muy urbanizado, de creer que el campo es estático, que no hay progreso tecnológico ni inversión técnica. Eso es no conocer al país y, quien no lo conoce, no puede quererlo. Y es lo que más me duele”. “La producción agropecuaria empuja a toda la economía y encadena una masa laboral y de energía por los insumos que consume, los apoyos que necesita y el transporte” que requiere, aseguró el presidente oriental. Mujica explicó que las naciones avanzadas son aquellas que producen un bien al menor costo posible para venderlo al mayor valor posible. “ En cuanto al concepto de “valor agregado”, Mujica dijo que, más que la naturaleza del producto en cuestión, es necesario “tener claro cuál es el conjunto tecnológico que hay atrás para llegar a ese producto: es mucho más complejo el (mero) concepto de industrializar”. COMPARTÍ si estás de acuerdo con Pepe Mujica sobre su opinión del sector agropecuario.

The future is in the country.


Debate policy not specific purchase

August 3, 2014

Pure 100 Farm Limited, a local subsidiary of Shanghai Pengxin Group has signed an agreement to buy Lochinver Station between Napier and Taupo.

The Central Plateau farm acquisition is now before the Overseas Investment Office (OIO) and will then go through the Chinese regulatory approval process prior to settlement.

The Group currently owns 16 farms in the North Island and has significantly enhanced these assets. According to a Land Information New Zealand report[1], PNZFGL (another local subsidiary) has been instrumental in the re-development and improvement of the North Island farm properties it owns.

The Group plans to secure operational synergies over time with this planned farm acquisition and some of its neighbouring North Island farms.

In March this year, the Group secured a 74 per cent stake in 13 farms in the South Island and has committed to capital improvements and implementing innovative industry concepts.

The Shanghai Pengxin philosophy is to work co-operatively through its local subsidiaries within the New Zealand farming industry and support new investment and innovative opportunities, as well as productivity enhancement, sustainable farming practices, and building supply chain capability.

It didn’t take long for the usual suspects to get agitated about foreigners buying land.

Lisa Owen started the interview with Steven Joyce and Grant Robertson on the topic:

Lisa Owen: . . . I want to start with you, Mr Joyce. Ownership of assets is what makes you wealthy. So what do you think of this 18,000 hectare Lochinver Station being sold to foreigners?

Steven Joyce: What I think it it’s election time because we’re getting a sale of land, and therefore a couple of people now – it used to be just Winston; now it’s Colin Craig as well – beating the anti-foreigners drum, and I suspect we’ll see a bit more of this between now and election day. But it’s as regular as every three years that this comes up.

Grant Robertson, it’s just electioneering?

Grant Roberston: Well, no. I mean, New Zealanders are actually sick of our assets being sold off, and it’s the same for farms as it is for Steven selling off energy companies. We want to see value held by New Zealanders. We don’t get this land back once it’s sold. It’s gone.

Joyce: Well, actually you do.

Robertson: Well, no, we don’t.

Joyce: No, you do.

Robertson: And it’s New Zealanders who need to have jobs being created from assets that we own. Our message for foreign investors is if you want to come into New Zealand, help create jobs.

Joyce: That’s right.

It is right, that is one of the criteria the Overseas Investment Office must take into consideration when approving a purchase of land by foreigners.

Roberston: Build a processing plant. But we don’t want to sell off the land like this.

Mr Joyce, this is—

Joyce: Well, actually, I need to answer that, because, actually, I mean, Grant, you’re interesting there, because I haven’t seen you out protesting James Cameron’s land purchases in the Wairarapa, so I’m assuming it’s only Chinese investors.

Robertson: No, it’s not. The allegation is just wrong, Steven.

Joyce: When did you go out and oppose purchasing James Cameron?

Roberston: We’ve never opposed foreign investment that is not productive for year.

Mr Joyce, can we–?

Joyce: Give me a chance. When did you go out and actually oppose the last purchase of James Cameron’s land? Where’s the press release on that?

Robertson: We have been opposing the purchases of dairy farms by anyone, and wherever they’re from, if it’s strategic land like this—

Joyce: But this isn’t a dairy farm. You know that, don’t you? This isn’t a dairy farm. . .

Robertson: That’s right. But this is about what New Zealanders want, and New Zealanders what to control their own land.

What he’s saying is that people want to control other people’s land. this land isn’t owned by New Zealanders in general it’s owned by individuals.

Joyce: So this is not a dairy farm and this is not James Cameron, therefore you’re opposing it?

Mr Joyce, I just want to ask you about your own leader’s comments.

Joyce: He’s against Chinese investment.

Robertson: Oh, for goodness sake, Steven.

Mr Joyce—

Joyce: Little xenophobia from the Labour Party to start the day off.

Mr Joyce—

Robertson: See, this is typical of the personal politics. He doesn’t want to debate what New Zealanders want, which is to control their own future. Steven’s happy to sell off our future rather than have New Zealanders in control.

Mr Joyce. Can I ask a question please, gentlemen?

Joyce: Yeah.

Your own leader has said that he doesn’t want us becoming tenants in our own country, but isn’t this exactly what is happening under your watch?

Joyce: No, it’s not. No, look, it’s a tiny amount. It’s actually a ridiculously small amount of land than under Labour, because, actually, under Labour, the average over the last five years they were in office, 90,000 hectares a year were sold to offshore purchasers. Under National, it’s been an average of 39,000 hectares a year. So it’s ridiculous for Labour to turn around—

So that’s the point, isn’t it? More under Labour, more under National. The pie being sold off is even bigger.

Joyce: But let’s look at the real benefit of international investment, actually, because, I think, all this hysteria which Grant’s trying to stoke this morning is actually incorrect, because there’s plenty of fantastic examples of international investment in this country which has brought real benefit. For example, Whirinaki, the big forestry processer in Hawke’s Bay, owned by OG for 43 years. The investment, it hasn’t had much—

So are you happy, Mr Joyce, that an enormous amount of productive New Zealand land is going offshore?

Land, productive or not can’t go offshore regardless of who owns it.

If foreigners own it some of the profit will go overseas but only after the owners have paid all the costs of running and improving the farm and also paid tax.

Robertson: Are you going to guarantee, Steven, that when this farm is sold off, this estate is sold off, that there will be some kind of added jobs? There will be processing coming and there will be something in the economy for New Zealanders? Rather than just selling off our—

Joyce: That’s one of the criteria that we put in in 2010, so absolutely.

Robertson: And you have not stuck to that.

Joyce: We have absolutely stuck to that.

Gentlemen, excuse me. We’ve spoken to sources at Tuwharetoa and other iwi who said this farm was outside of their price bracket. $70 million. So I’m interested to know where are the New Zealanders who are wealthy enough to buy our own assets? Isn’t that part of the problem?

Joyce: Well, actually, there’s plenty of New Zealanders that are wealthy enough to buy our own assets, but, look, the point of view is international investment is very important to New Zealand. It’s been very important all the way through, and it’s important to our future. And there are plenty of examples. I was actually at one the other day. Frucor, which is now owned by Suntory, a Japanese company, and they’re making big investments in their processing plant, and all the workers are in favour of that. Now, if you take the example of this particular company, Shanghai Pengxin, they have made investments in the older Crafar farms. Nobody, I think, is arguing that the Crafar farms used to be well-run. My understanding is there’s been some good investments out of that and more investments expected. So that’s all good stuff. There has to be a benefit to New Zealand—

Robertson: What Steven fails to understand here is that New Zealanders are completely sick of seeing their land sold off. This is about our lands and our future. Steven, the thing is we have learned our lesson.

I want to ask you—Mr Robertson, the Labour Party—No, no, let me—

Robertson: Steven Joyce refuses to learn the lesson that New Zealanders want land retained in New Zealand ownership.

Labour plans to stop foreign purchases. People who are not living in New Zealand, under Labour, would only be allowed to buy up to 5 hectares of land. So, would you stop the sale of this farm?

Robertson: Our criteria would definitely mean that a sale like this would be highly unlikely, unless—

Highly unlikely isn’t a no, it’s another yeah-nah answer from Labour which knows there are benefits from foreign ownership, which is why it allowed sales to go through when it was last in power.

Paul Walker makes some good points on this issue:

For efficiency reasons we want resources to be in the hands of those who value them most highly and the way to do that is sell them to the highest bidder. We want land (and other resources) to be used in the most efficient manner and the country of origin of the buyer is irrelevant to this. A thought experiment: ask yourself, Why are auctions used for so many goods? Its a way of finding out who values the good most highly. Whoever bids the most gets the goods. This is how we maximise the probability of getting an efficient allocation of resources. Secondly would a Labour government compensate the seller of the land for their policy? Under the Labour policy the seller would be forced to sell their land at a lower price than they would otherwise get (or not sell at all) and would a Labour government make up the difference between the actual sale price and the highest possible price? And if not, Why should the seller receive a lower return than they otherwise would?. And if this is a good policy for land why not implement it for other goods as well? What makes this idea land specific?

What makes land specific is emotion.

When PGG Whritghtson was purchased by a Chinese company no-one made a fuss about that yet the intellectual property that went with it in seed development may well have been more valuable than thousands of hectares of land.

But most of the fuss over foreign ownership of land is emotional.

It doesn’t take into account the benefits to the sellers and the country nor is it based on complete understanding of the area involved.

The issue is a hot-button one and should be debated.

But the debate should be on the big picture of how much land in foreign ownership is acceptable and any policy changes needed to ensure that. It shouldn’t be based on individual purchases, especially when it looks like at least some of the opposition is based on xenophobia.


Rural round-up

December 7, 2013

Lochinver set for record price – Stephen Bell:

Lochinver Station on the Napier-Taupo Road is expected to set a New Zealand farm price record of more than $70 million.

Though bigger farms have been sold in the South Island Lochinver is the most productive rural property ever put up for sale in NZ, Bayleys managing director Mike Bayley said.

The land was waste and scrub when Sir William Stevenson bought it in 1958.

It is now being sold as Stevenson Group, one of the country’s biggest privately-owned companies, rebalances its investment portfolio to exclude farming, chief executive Mark Franklin said. . . .

Trade deals coming thick and fast – Alan Barber:

The TPP may not be happening as soon as expected, but free trade agreements with individual markets, Chinese Taipei and Peru, will come into effect, some aspects immediately, and provide more immediate rewards for our exporters.

Although multinational trade negotiations make more dramatic headlines, history suggests that they have a similar gestation period to an elephant, in fact quite a bit longer in the case of WTO rounds. The TPP looks as if it will follow a similar course because of the USA’s demands about trade partners’ internal arrangements, like Pharmac, and farmer lobbies in countries like Japan and South Korea. This makes it extremely difficult to conclude a binding agreement that meets the requirements of all the countries participating in the negotiations.

Unilateral trade agreements are not as highly regarded or sought after, but they are an essential part of international trade and, for New Zealand with its high trade dependency, very important to our future prosperity. . .

Police fear poaching fatality – Neil Ratley:

Farm workers and their houses are being caught in the spotlights of poachers, and southern police fear someone will be killed unless the illegal practice is stopped.

Constable Steve Winsloe of Winton said police and farmers were taking a collaborative approach to the problem to prevent a potential tragedy.

Landowners had had enough and were working with police to prevent poaching and other rural crime, he said.

“Farmers are getting caught in the spotlights when they are out working after dark. It just takes one poacher to see a glint of an eye that may not be an animal and they pull the trigger” he said.

“The last thing police want is a fatal shooting.” . . .

ANZCO bounces back into profit – Alan Williams:

ANZCO Foods has released early its trading result – a pre-tax profit of $12.6 million – in response to what it says are rumours about its financial strength.

The company was not only profitable in the year ended September 30 but increased its operating cashflow and equity ratio on a year earlier.

Revenue increased to $1.28 billion, from $1.21b previously.

It will also pay a dividend to shareholders, as it has done every year since the shareholding structure was put in place in 2001, chairman Sir Graeme Harrison said. . . .

Alliance operations on move – Collette Devlin:

The Alliance Group is in the process of transferring beef rendering operations to its new $25 million rendering plant at Lorneville in Invercargill.

Alliance Group chief executive Grant Cuff said the company started moving operations from the Mataura beef plant about a week ago.

It was also clearing out the rendering plant at Makarewa, where lamb slinks processing finished about a month ago, he said.

Alliance Group is consolidating its southern rendering operations at the new Lorneville plant to improve productivity. . . .

Flood of interest in storage dam idea– Matthew Littlewood:

The burgeoning Rangitata South Irrigation Scheme in South Canterbury has led to a rush of applications for water storage dams.

Environment Canterbury’s consents spokeswoman confirmed that none of the 21 applications within the Arundel-based scheme’s 16,000 hectare “command area” were declined, because all of them fitted within its notified Land and Water Regional Plan.

“To clarify – these are off-channel storage dams (no waterways were dammed) and these include four certificates of compliance (where a dam met the permitted activity requirements and no consent was required),” she said.

The capacity of the storage dams ranged from 8000 to 210,000 cubic metres. . . .


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