OIO favours forestry over farming

May 23, 2019

A newsletter from 50 Shades of Green points out that Overseas Investment Office rules favour forestry over farming:

The unfair advantage.
Did you know, the threshold for farm sales approval is different for farms selling to farmers than it is for farms selling to forestry investors?Forestry doesn’t have to meet the jobs criteria.  Double whammy again, taking out valuable land and jobs at the same time, impacting local communities and displacing jobs.  Sheep + Beef estimate 7  jobs are displaced for 1 forestry job.
We  don’t think the general public is aware of the indications of 5 million hectares of pine trees, what that looks like in 40, 50 years time, and much of  it, with sink initiatives,  not likely to be harvested

 

It is ironic that Shane Jones the self-proclaimed savior of the regions who has the $3 billion provincial slush fund to throw around to create jobs, is also the Minister promoting the billion trees policy which will kill them.

The Paris Accord states that climate change policy should not conflict with food production but Alan Emerson writes that trees are being planted at the expense of food:

Every now and then we hear some idiot describing agriculture as being a sunset industry despite the fact we contribute 79.3% of the country’s wealth.

What we should be discussing is New Zealand becoming a sunset economy because it will be if the Government’s ad hoc response to climate change continues along the line it’s going.

For the record, I accept the climate is changing, human activity has done it and we need to do something to fix it.

What I don’t accept is all the Wellington centric crazy fixes that are, in the main, anti-farmer and without the benefit of solid science and economic calculations grounded in reality.

NZ won’t survive without agriculture.

It is still agriculture which earns most of our export income.

Its carbon footprint per kilogram of product is one of the lowest in the world and we’re producing a lot more with less input than we’ve ever done.

If you take nutrient density into account New Zealand farm produce stacks up even better.

In addition, as Parliamentary Commissioner for the Environment Simon Upton said, pines are fine for mitigating methane emissions but not for carbon dioxide.

The people who criticize anyone who won’t accept the science on climate change won’t accept this science, nor will they accept the science on gene-editing that could help us reduce methane emissions.

So, why are we planting a billion trees?

Another question is where are we planting them? In Wairarapa we’ve recently lost seven good farms to forestry and that is a major issue.

At Pongaroa they’ve lost between 6000 and 8000 hectares to forestry.

It was interesting to read in last week’s Farmers Weekly Rabobank believes farm forestry will become more appealing. Sustainability analyst Blake Holgate said Government incentives make forestry a more appealing land use option at the cost of food production.

He also said forestry provides opportunity to generate income from area that has been unproductive.

I agree with both statements but was somewhat amazed by comments from Forest Owners Association president Peter Weir who claimed millions of hectares of land for forestry isn’t available. He suggested very little land is being bought for forestry, which I disagree with.

Simply put, my position is there is a lot of marginal land that could go into trees and provide extra income for farmers. That’s good.

Good, productive land and entire farms going into forestry at the expense of food production is bad.

The discussion takes me back to the Muldoon government in the 1970s with its Land Development Encouragement Loans.

Money was available to farmers to clear native bush with the aim of improving NZ Inc’s performance.

So 940,000 hectares were cleared and a massive amount of biodiversity was lost but much of it has since reverted and some has been planted in pines.

Some areas should never have been cleared in the first place and it makes both environmental and financial sense to replant them in trees.

But planting trees on land best suited to producing food will come at a high economic and social cost for no real environmental gain.

Simply, the subsidy didn’t work.

Now we have a subsidy to plant trees, millions of them.

Subsidies are an evil from the past and distort the market. They have no future in a modern economy.

While I applaud Regional Development Minister Shane Jones’ aim of revitalising the regions I believe his forestry initiative will achieve exactly the opposite.

He needs to change advisers.

Let’s look at the facts.

According to the NZ Forestry Bulletin Jones’ billion trees mean 50,000 hectares a year is taken out of production.

To achieve the Productivity Commission’s goals, however, would require 100,000 hectares to be taken out of production each and every year for three decades – a total of three million hectares.

That’s almost a third of our total farmland and it won’t be marginal but productive, food-producing country.

Wairarapa farmer and ram breeder Derek Daniell has done his sums.

For a start every thousand hectares of sheep and beef farms employs seven people each and every year. The same amount of forestry supports one.

That is six jobs lost for every farm that is converted to forestry.

What will that do to provincial NZ?

One retired meat company director told me the removal of stock for trees on the North Island’s east coast would mean the closure of one meat processing works.

What will that do to the provinces?

An economist suggested the value to the country of a hectare of sheep and beef is about $55,000.

At Pongaroa, taking the lowest figure of land out of production, that would mean a loss to their economy of $330m.

What will that loss achieve for the provinces?

Then we have trees harvested every 25-30 years. That’s a long time to wait for a pay cheque.

The money in the interim will be from carbon farming but according Upton that isn’t sustainable.

Further, what is to stop some political party changing the ETS, as has happened.

Relying on political whim for your pay cheque doesn’t spin my wheels.

When it comes to pollution and carbon footprints Daniell points to the cities and not the provinces

The problem is that even with the best of intentions from Jones that instead of forestry boosting the provincial economy it will destroy it.

The madness needs to stop.

You can read more from 50 Shades of Green and subscribe to their newsletter here.


Rural round-up

May 4, 2019

The prospects for post-Brexit trade with New Zealand – Mike Petersen:

In spite of the uncertainty in the UK with regard to Brexit, the key message from New Zealand is that we will continue to be a constructive and valuable partner for the UK on agriculture and trade issues after Brexit.

Of course, our relationship is not without its challenges, but we are like minded on so many levels. The issues facing farmers the world over are largely the same, and I firmly believe there are compelling reasons for the UK and New Zealand to work together to tackle agricultural trade issues after Brexit.

New Zealand agricultural trade profile

New Zealand is a dynamic, outward looking economy with a highly diversified export market profile. This market diversification can only succeed with improved market access. While governments negotiate to open up and maintain market access in the WTO and through trade agreements, industry itself plays a critical role in identifying and utilising these market access opportunities and navigating constantly changing international commercial challenges and trends. . . 

Mum, teacher, farmer, winner – Annette Scott:

Taranaki dairy farmer Trish Rankin was a self-acclaimed townie having never been on a farm until her husband decided to go dairy farming. Now the passionate environmentalist has been crowned Dairy Woman of the Year. She talked to Annette Scott.

Dairy farmer, passionate environmentalist and part-time teacher Trish Rankin has taken out the prestigious Dairy Woman of the Year 2019 title.

The Taranaki mum headed off the field of four finalists at the Dairy Woman’s Network conference in Christchurch last week.

Rankin balances full-time farming with her husband Glen and their four boys with teaching part time at Opunake Primary School. . . 

Huge pond enhances efficiency – Toni Williams:

Barrhill Chertsey Irrigation’s (BCI) new multi-million dollar water storage facility was made on time and within budget. It will give BCI members access to water at peak times. Reporter Toni Williams found out about BCI and the Akarana Storage Pond construction.

Akarana Pond gets its name from the farm site where it sits, on Barkers Road near Methven.

The pond was designed by NZ company Damwatch Engineering, and built by Canterbury based contractors, Rooney Earthmoving Limited.

Carrfields Irrigation, Electraserve and Rubicon Water Management were also involved. . .

Duck hunters’ delight: is this the world’s best mai-mai?:

A group of duck hunters from Gore have built a mai-mai that is giving “pride of the south” a whole new meaning.

From the outside the hut is inconspicuous, with long grass growing over the roof, but inside it has all the comforts of home.

It’s equipped with a six-burner stove, a bar laden with Speights, two fridges, couches and four beds. The fully functional bathroom even has a hand dryer.

But the most luxurious features must be the Sky TV and a closed-circuit video feed of the pond outside constantly displayed on another screen. . .

Opportunities Party identifies safe and valuable use of genetic technology:

The Forest Owners Association and Federated Farmers congratulate the Opportunities Party for its balanced and sensible gene editing policy, which recognises the significant economic and environmental benefits gene editing technology can provide.

The presidents of the respective organisations, Peter Weir and Katie Milne, say the time for an informed public debate is well overdue as genetic technologies have changed dramatically in recent years and their safety and value has been proven oversees. . . 

Summer Cervena 2019 campaign launched in Europe:

Alliance Group, Duncan NZ and Silver Fern Farms are working together with Deer Industry NZ (DINZ) in the third year of Passion 2 Profit (P2P) Primary Growth Partnership activity raising awareness for Cervena for Northern European summer menus.

This year’s Summer Cervena campaign, running from late-March through to August, has a primary focus on foodservice. The venison exporters are building on the previous activity and now working together with their respective importers/distributors in Benelux and German markets to lift sales to chefs and foodies in the region.

The predominantly foodservice campaign is seeking to attract the attention of high-end and more casual-upmarket establishments, in particular, says DINZ venison marketing manager Nick Taylor. . .

7 mistakes rural marketing managers make and how to fix it – St John Craner:

Over the years I’ve worked with some great rural marketing managers and I’ve also met some poor ones. It’s the same for most of us, a mix of good and bad. So what distinguishes the best rural marketing managers from the worst? The worst commit the crimes below. However they can improve their careers and remuneration prospects if they follow the recommendations below.

Do you want to be a more effective and valuable rural marketing manager who craves more reward and recognition for what you do?

Do you want to secure that raise and promotion this year? Yes? . . 


Rural round-up

August 19, 2018

Supreme Court issues victory for private land conservation:

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

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

Foresters fear carbon auction’s implications – Richard Rennie:

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

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

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

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

Fonterra pauses to take stock – Hugh Stringleman:

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

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

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

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

 

Sheep wool can help cats’ diet:

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

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

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

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

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

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

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

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

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

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

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

 


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