Rural round-up

June 28, 2019

More good farmland lost forever:

News that two large New Zealand farms have been sold off-shore, largely for forestry is depressing according to 50 Shades of Green spokesman Mike Butterick. The same owner has purchased both properties.

One farm is 734,700 hectares at Eketahuna that sold for $3.35 million. The other is 1037,000 hectares in Wairoa sold for $6 million.

“It’s bad enough having the land sold to foreigners but having good productive farmland sold for forestry and subdivision is criminal,” Mike Butterick said. . .

Decision time at Westland for Yili bid – Keith Woodford:

The time has come when Westland’s dairy farmers must make their decision. Do they want to take the money and go with Chinese mega-company Yili, or do they wish to struggle on as a co-operative?  We will know the answer after the July 4 vote.

If farmers vote to take the money, it will then be up to the Government to agree or refuse to accept Yili as the new owner. I will be surprised if they disallow the sale under the relevant OIO provisions. The ramifications of that would be severe.

Also important is whether or not the approval from Government is quick or drawn out. It is in no-one’s interest that it be drawn out, but OIO approvals can be remarkably slow.  Yili could step away if approval is not forthcoming by 31 October. . . 

NZ First is not alone in worrying at the implications of a Westland Milk sale to Yili – Point of Order:

Is   Westland  Milk   one of  NZ’s  “key  strategic assets”?

NZ  First  is adamant  it is and believes the government  should be a  applying a  “national interest test”   to the proposed  sale of the company  to the Chinese  dairy giant Yili.

Those  who  see  heavily indebted  companies  like Westland Milk struggling to  make a profit and  not  even  matching  Fonterra’s payout  to its suppliers might take a  cooler view  to  the proposed  sale. . . 

Minister heaps more costs on farmers:

The Minister of Agriculture has confirmed he hasn’t bothered asking his officials the costs farmers will face as a result of the high methane target the Government is imposing, National’s Agriculture spokesperson Nathan Guy says.

“When questioned in Primary Production Select Committee Damien O’Connor scrambled to confirm he’d seen no specific advice for costs per farm, nor has he even asked for any.

“Cabinet have blindly cooked up a methane reduction target of 24-47 per cent, despite scientific evidence suggesting this is too high and without knowing the costs per average farm and the impact it will have on rural communities. . .

Downsizing opens gate to A2/A2 farm:

He’s a dairy farmer with a passion for breeding, striving to be “at the front of the game.” She’s a converted city-girl who fell in love with the dairy farmer, despite her aversion to typical milk.

It doesn’t agree too well with my system,” Stacey White says.

“I used to have soy and almond milk and I’ve tried both them and rice milk; nothing’s really appealed in terms of taste, and baking with those substitutes doesn’t really work either.” 

So when Stacey became aware of A2/A2 milk 18 months ago, she tried it out and found it tasty, creamy, and, crucially, easily digestible.*  . . 

LIC migrates to NZX’s Main Board:

Herd improvement and agritech co-operative LIC will move to the Main Board of the NZX (NZSX) next month, transferring from the Alternative Board.

This comes as NZX announced it will move to a single equities board from July 1 and close the NZAX and NXT.

Of the companies migrating, LIC is the largest by market capitalisation, at approximately $109 million.

There are around 14 agritech companies featured on the NZX Main Board and only one other farmer-owned co-operative (Fonterra). . . 

How NZ farming is like a Steinway piano – Glen Herud:

I wonder if we rely too much on our pasture-based farming or our beautiful scenery or our clean image.

What if the things we think are our strengths are actually weaknesses?

Steinway and Sons had been the leading maker of grand pianos since 1853 when their business was crippled by Yamaha.

Professor Howard Yu explains how Steinway held on to their main strength for far too long and it eventually became a weakness. . .

 


Petty politicking in lieu of policy

June 19, 2019

Minister of Shane Jones has no good policy answer for 50 Shades of Green’s concerns about favoring forestry over farming so has resorted to getting petty politicking:

Minister Jones is both wrong in fact and totally out of court with his accusations against the conservation lobby group 50 Shades of Green.

To claim, as he did, that we’re part of the National Party is a little like suggesting James Shaw is about to join Act 50 Shades of Green spokesman Mike Butterick said.

“I find this type of political loquaciousness offensive and cheap,” Mike Butterick said. “If Minister Jones has any hard proof maybe he’d like to share it.

“50 Shades of Green is a non-political organisation committed to maintaining prosperous provinces.

“Minister Jones obviously wants to achieve the opposite.

“Anyone is welcome to join our organisation regardless of colour, class, creed or political persuasion,” Mike Butterick said.

“All they need is a strong belief in provincial New Zealand and be prepared to work to maintain its prosperity.

50 Shades of Green was born of concern about the threat subsidies for forestry pose to the future of rural communities and food production.

It’s a political issue but it’s not a partisan one.

That the Minister is resorting to political attacks shows he’s not really listening to the concerns being expressed by farmers, local body politicians, real estate agents, stock agents and others who understand how serious the rapid afforestation of productive farmland is.

If nothing is changed rural communities with be even harder hit than they were by the ag-sag of the 1980s.

Serious concerns deserve a far more considered response than petty politicking from the Minister.

You can read more about the issues at 50 Shades of Green

You can sign the petition asking that legislation which incentivises the blanket afforestation of farmland be rejected


Push pause til cost benefit known

June 14, 2019

50 Shades of Green is urging the government to pause the carbon zero legislation until a cost benefit analysis is done:

As it stands experts believe it will cost a lot and achieve little.

Conservation group 50 shades of green is asking the government to immediately hit the pause button, check the policy settings and have a full cost benefit analysis.

50 shades of green spokesperson, Mike Butterick said that the legislation as it stood was a recipe for financial and environmental disaster.

“The legislation is estimated to cost the economy up to $12 billion a year or $8000 for every household,” Mike Butterick said. “Try finding another $160 a week to support political ideology when you’re on the minimum wage[1].

“The way the government is trying to mitigate its carbon emissions is nothing more than a band aid which will achieve nothing long term.

“It is incredibly short sighted by our current politicians. Their legacy for future generations will be tarnished.

“50 shades of green want to work to mitigate the effects of climate change but the Zero Carbon Bill won’t do it. It’s not just the opinion of the group but also that of the Parliamentary Commissioner for the Environment.

“Time now for a pause and a move towards a lasting and long term solution,” Mike Butterick said.

Government incentives are distorting the market, incentivising sales for forestry over farming:

The median price of forestry farms across New Zealand has increased by 45% over the last year from $6,487 per hectare to $9,394 per hectare according to the Real Estate Institute of New Zealand (REINZ) source of the most complete and accurate real estate data in New Zealand.

This increase may be largely the result of the Government incentives to plant trees making forestry land more desirable and leading to increased sales of sheep and beef farms.
Interestingly, the North Island is seeing a greater impact on forestry prices than the South Island.

Bindi Norwell, Chief Executive at REINZ says: “Over the last few months there has been a growing voice from the rural community that the Government’s incentives towards planting trees are favouring forestry sales and leading to increasing sales of beef and sheep farms. With the price of forestry farms across New Zealand increasing by 45% when compared to the same time last year, the data tends to suggest that the rural community is correct in its assertions. . .

They are also correct about the detrimental impact on rural communities:

Wairoa Mayor Craig Little is nervous.

In the last eight months 10,000ha, 7% of his district’s remaining pasture land, has been sold for forestry and he estimates it will cost 60 direct and indirect livestock farming jobs while creating 15.

Little’s primary concern is the impact on local communities and services but also on the district’s largest employer, Affco’s Wairoa meat works, which gets a third of its stock locally.

“More forestry planting threatens our sheep and beef industry, our local economy and the district’s largest employer.” . .

Little says the pace of land use change worries him and his community and is the unintended consequence of Government incentives for its Billion Trees programme.

The land use change cannot be considered a gradual redistribution of land use as claimed by Forestry New Zealand chief executive Julie Collins in the Farmers Weekly last week, he said.

“For us it is an alarming rate.

“If they keep going at that rate we’ll have no farmland left.”

A briefing paper Little prepared for a meeting this week with Government ministers says 2017 agricultural census figures show 1000ha of forestry directly and indirectly employs 1.5 people. For the same area of sheep and beef farming the figure is 7.6 people.

While supporting the Billion Trees programme Little says the scale and scope of forestry planting poses a catastrophic risk to rural communities like Wairoa. . .

There is a place for forestry but it’s not on productive farmland which threatens food production, export income and the jobs and social fabric for which they provide a foundation.

Tararua Mayor Tracey Collis fears the cumulative impact of fewer children at schools, the loss of volunteers and the impact on local retailers as people leave the area when trees replace livestock.

Collis respects the right of landowners to sell to whoever they wish but the speed of change has surprised her.

In the 2017-18 year four Tararua farms were sold to forestry but in 2018-19 it was 12.

“It’s a large increase very, very quickly.”

Forest companies are buying land with easy access and better quality soils, which is not consistent with the Government mantra of right tree, right place, right time. . .

It’s also not consistent with the Paris Accord which states that climate change mitigation measures should not come at the expense of food production.

If you care about this issue please sign 50 Shades of Green’s petition asking that legislation which incentivises the blanket afforestation of farmland be rejected.

 


Rural round-up

May 27, 2019

Lobby group 50 Shades of Green calls for pause on blanket forestry – Heather Chalmers:

The Government needs to hit the pause button on policies which have led to thousands of hectares of hill country farmland being converted to blanket forestry in the last year, a newly-formed lobby group says. 

50 Shades of Green spokesman Mike Butterick said significant land use change was happening and its speed and scale had caught everyone by surprise.  

“It has snowballed so quickly that we need to hit the pause button and ask whether this is what we intended to happen.  . . 

Too much regulation can bring unintended consequences – Simon Davies:

Although you may not think some regulations apply to your farming business you’d be wrong, writes Federated Farmers Otago provincial president Simon Davies.

Regulation is part of life.

But the thing is I really did not appreciate how much of my life, and more importantly my farming business, was captured by legislation and regulations.

This can’t be highlighted better than since the last election. . .

Farmers own’t forget Jones’ outburst – Steve Wyn-Harris:

So now Shane Jones has decided to put the boot into farmers.

I thought he was touting and self-styling himself as the champion of the regions.

There’s his party doing everything it can over the last few years to portray itself as a reinvented country party and even getting grudging respect from the rural rump as the handbrake on the potential excesses of a centre-left government.

Then. in one manic outburst, he ensured not many farmers or rural folk will consider voting for him or his party next year. . . 

Tough times ahead :

Dairy farmers will be under pressure from the low start to Fonterra’s new season advance rates, Federated Farmers dairy chairman Chris Lewis says.

“Cash is king for farmers because of seasonal conditions, demands for debt repayment from the banks and the rising tide of on-farm costs,” he said.

The forecast of the fourth $6-plus season in a row is welcome but farm working expenses have gone up 50c a kilogram of milksolids over the past couple of years and margins are tight. . . 

From potatoes to coffee, plant breeders are changing crops to adapt to an uncertain climate future – Sam Bloch:

We tend to view the effects of climate change through the lens of the worst and most dramatic disasters, from hurricanes and floods to forest fires. But farmers have a more mundane fear: that as weather becomes more extreme and varied, their land will no longer support the crops they grow. We’ve grown accustomed to living in a world where salad greens thrive in California, and Iowa is the land of corn. But even in the absence of a single, catastrophic event, conventional wisdom about what grows best where may no longer apply.

“People who depend on the weather and hawk its signs every day know it’s getting wetter, warmer, and weirder, and have recognized it for some time,” Art Cullen, Pulitzer Prize-winning editor of The Storm Lake Times, a twice-weekly Iowa newspaper, wrote for us in December. “The climate assessment predicts more of it and worse. Ag productivity will be set back to 1980s levels unless there is some unforeseen breakthrough in seed and chemical technology.” . . 

Industry urged to seize opportunities to communicate with public:

People working in every part of the Scottish red meat industry were today (Friday 24th May) urged by Quality Meat Scotland (QMS) to support forth-coming campaigns and seize every opportunity to communicate the industry’s positive messages.

Speaking at a briefing to announce QMS’s ambitious activity plans for the year ahead, Kate Rowell, QMS Chair, emphasised a key focus of the organisation’s activity for the 2019/20 year will be to upweight the important work it does to protect, as well as promote, the industry.

“The work we do to protect and enhance the reputation of the industry has never been more important,” said Mrs Rowell. . . 

 


Rural round-up

May 18, 2019

‘A recipe for disaster’: Rural lobby group launched to oppose billion trees policy – Angie Skerrett:

A lobby group has been formed as concern grows about the impact of the Government’s billion trees policy on rural communities.

The group, named 50 Shades of Green, aims to convince politicians and decision makers that the current push to plant a billion trees will destroy the provinces, and ultimately the New Zealand economy.

Spokesperson Andy Scott said converting whole farms to trees, often by foreign companies was a recipe for disaster.

“In the Wairarapa there have been seven farms moved from production, in Pongaroa there has been between 6000 and 8000 hectares planted in trees,” he said . .

Group targets tree policy – Colin Williscroft:

The Government’s goal of planting a billion trees will destroy the provincial heartland and the New Zealand economy, a new lobby group says.

The group, 50 Shades of Green, has grown out of concerns held by Wairarapa farmers and businesspeople but spokesman Mike Butterick is confident people from around the country will jump on board.

Productive farmland is at risk from the tree-planting policy, Butterick says.

“It’s essential that as a country we stop and think about the long-term impact that will have.” . .

Ag sacrifice – Annette Scott:

The Government’s targets for methane reduction are unrealistic and unfair and there’s little sense in sacrificing New Zealand’s economic backbone in the Zero Carbon Bill, Deer Industry NZ chairman Ian Walker says.

The deer industry is disappointed by the Government’s agricultural emissions reduction targets that will result in significant reductions in stock numbers. 

Even if tools and technologies were available to reduce methane and nitrous oxide in future the level of reduction will effectively mean the agriculture sector is being asked not just to cease its own contribution to global warming but also offset the contribution of other sectors. . .

Forestry ‘gold rush’ underway in Wairoa :

Warnings a modern day gold rush is underway as productive farm land is sold to make room for lucrative forestry. Farmers and community leaders in Wairoa have become the latest group to raise concerns, estimating around ten-thousand hectares of the region’s most productive land has recently been sold to out-of-town investors wanting to plant trees for harvest and carbon credits. They’re worried thousands of jobs could be lost from the area, and communities seriously affected, if it continues. The government’s one billion trees programme continues – this week, Shane Jones, the Minister in charge of the programme announced a further $ 58 million for forestry to help Forestry NZ increase its regional presence.  . .

Living under the Zero Carbon Act – Andrew Hoggard:

I have been a farmer for the majority of my working life. Like any farmer, I always look at what I can do to make the farm better, to improve production, or just make life easier. I don’t know whether my girls will want to go farming or do something else, but at the back of my mind when I think about what we do on farm there is always that long term view, of making it better for the next generation.

With the Zero Carbon Act announcement some are saying that it’s far away, what are you worried about? But it is not far away, it’s just the next generation away. For me I don’t look at those targets and think about what the right PR spin thing to say now is, to improve the corporate brand, and who cares if the farmers can’t achieve it? . .

Sheep farming is not to blame for climate change – Gordon Davidson:

SHEEP INDUSTRY leaders have hit back at the ‘fashionable’ argument that UK consumers can help reduce climate change by eating less red meat, and argued instead that UK sheepmeat should be the ‘environmentally conscious person’s meat of choice’.

Responding to the Committee for Climate Change and the UN’s nature report, National Sheep Association chief executive Phil Stocker said that some of the recommendations being made to consumers were ‘unbalanced, based on inadequate science, and understood little about the UK sheep industry’.

“It is really frustrating to yet again see our extensive livestock sectors caught up within criticisms of agriculture and their impact on climate change and biodiversity, and little mention of other damaging activities, that may be less popular to criticise,” said Mr Stocker. “It is seemingly OK to offset emissions from flying around the world through carbon sequestering actions such as tree planting and peatland management, but not OK for a farm to do its own internal offsetting. . .

 


%d bloggers like this: