Rural round-up

23/09/2022

Plant and pollute or right tree, right place for the right purpose? – 50 Shades of Green:

We acknowledge with gratitude the latest comments from the Climate Change Commission. That the ETS allows companies to “plant and pollute” and needs reform. These comments are consistent with 50 Shades of Green long running assertions that indeed, the ETS needs a good overhaul.

We continue to ask the Government. Please pause before the Sheep and Beef sector is challenged out of existence. [1]

What has happened under current policy settings? Instead of driving a change in behaviour, at source, the opposite has resulted in our valuable breeding country, the top of the supply chain, used as a proxy, relying too heavily on planting trees to absorb polluters’ carbon dioxide emissions.

While the government takes its time reviewing the ETS, our issue is they have happily ignored our valid and vindicated concerns. Uncritically relying too heavily on what we can only assume is official advice and not acknowledging the devastating effects on New Zealand Hill country constantly put to them. The recent additional sales confirmed, and in the pipeline of more valuable stations lost from the sector that produces c$10b in receipts for the country are gone for good. Sweeping rural communities away in their path. . . 

Huge gains for industry in 50 years of deer farming science :

From a noxious pest that should be exterminated to livestock providing high value products to the world, the deer industry in New Zealand has come a long way in 50 years – and the research that made it possible is now being celebrated.

An event next week at AgResearch’s Invermay campus near Dunedin will mark 50 years of deer farming science at the site by AgResearch and its predecessor organisations, always in close partnership with the deer industry and farmers. The half century of research has included major advances in understanding of deer nutrition, health, behaviour and genetics, and in development of products such as venison, velvet and milk that are exported around the world.

“Fifty years ago, researcher Ken Drew and veterinarian Les Porter thought it might be a good idea to put some science in behind the newly emerging deer farming industry,” says AgResearch’s programme leader for Deer Science for Success, Jamie Ward.

“With incredible backing by early industry participants, innovation, positivity, and fantastic researchers, Invermay became synonymous with the evolution of the New Zealand deer farming industry and earned an international reputation for its science and research output.” . . 

How CH4 Global is turning seaweed into fodder for farm ruminants – and hopes to cool the climate – Point of Order:

Big  strides  are  being  made in the  development  of  a  seaweed-based   product  which,  it  is  claimed,  reduces  methane  emissions in ruminant animals  by up  to 90%.

The product, which its champions say could resolve New Zealand’s climate change threat  from  methane emissions  in  the nation’s  dairy  herd, has  been sold  for  the  first  time—-to  an  Australian customer.

It has been made by CH4 Global™, Inc., a company which says it is

”… on an urgent mission to address climate change by providing our seaweed-based Asparagopsis products to farmers worldwide so they can dramatically reduce the methane emissions of their livestock and realize significant value in the process.” . . 

Trading trees for cows – Nikki Mandow:

The Parliamentary Commissioner for the Environment is to report next month on offsetting short-lived methane emissions from livestock by planting fast-growing forests – a bid to address two of NZ’s most vexed climate problems simultaneously

Dr Rod Carr says markets – in this case the Emissions Trading Scheme – have an important part to play sending signals about the real costs of greenhouse gas emissions.

But speaking at the Climate Change & Business Conference this week, the Climate Change Commission chair warns the “plant and pollute” nature of the present trading scheme, where companies can buy their way towards net carbon zero using forestry plantings as offsets, risks allowing them to get away with not reducing their actual carbon emissions.

That’s why New Zealand needs new solutions – and just across Wellington, the Parliamentary Commissioner for the Environment is exploring one such. . . 

Volatility and vulnerability in the rural sector :

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were -126 fewer farm sales (-38.2%) for the three months ended August 2022 than for the three months ended August 2021. Overall, there were 204 farm sales in the three months ended August 2022, compared to 255 farm sales for the three months ended July 2022 (-20%), and 330 farm sales for the three months ended August 2021.

1,545 farms were sold in the year to August 2022 — 278 fewer than were sold in the year to August 2021, with 2.6% more Dairy farms, 25.2% fewer Dairy Support, 21.5% fewer Grazing farms, 13.9% fewer Finishing farms and 17.5% fewer Arable farms sold over the same period.

The median price per hectare for all farms sold in the three months to August 2022 was $25,690 compared to $27,170 recorded for the three months ended August 2021 (-5.4%). The median price per hectare decreased by 6.5% compared to July 2022.

The REINZ All Farm Price Index decreased 8.3% in the three months to August 2022 compared to the three months to July 2022. Compared to the three months ending August 2021 the REINZ All Farm Price Index increased 3.6%. The REINZ All Farm Price Index adjusts for differences in farm size, location, and farming type, unlike the median price per hectare, which does not adjust for these factors. . .

Bill drawn to help cellar-door wine tasting:

A law change that will help streamline the process required for wineries to sell samples at the cellar door has been drawn from the Member’s Bill Ballot today, MP for Kaikoura and National’s Viticulture spokesperson Stuart Smith says.

“The Sale and Supply of Alcohol (Cellar Door Tasting) Amendment Bill will plug an important gap in the old legislation so that winery cellar doors can now charge visitors for wine samples without having to secure a separate on-license and all the costs associated with that.

“While this may be a small change, it will make a big difference to New Zealand’s wineries.

“This Bill has been drawn at an opportune time as wineries have faced significant costs and reduced production as a result of the pandemic. This regulatory change will ensure that they can provide cellar door services without the unnecessary extra red-tape. . .

 

New Zealand Dairy Industry Awards’ entries open October 1st:

With just over a week until entries open in the 2023 New Zealand Dairy Industry Awards, organisers of the regional programmes are gathering in Rotorua for the annual conference to learn how to deliver over 48 events and numerous judging days..

General Manager Robin Congdon says the conference is an opportunity for the many volunteers from around the country to come together after a busy winter season.

“The conference will be a busy few days, ensuring everyone knows what’s required to deliver the dynamic programme and bring them up to speed on this year’s changes made to the Share Farmer category judging process,” he says.

“The Exec have reviewed extensive feedback on last year’s changes to the Dairy Manager and Dairy Trainee categories, which was overwhelmingly positive. . .


Rural round-up

19/08/2022

Better methane measurement will make an impact – David Anderson:

Recognition is urgently needed on a new measure for short and long-lived greenhouse gases and their impact on global warming.

That was the strong message given to attendees at the recent Red Meat Sector Conference by Dr Frank Mitloehner of the University of California Davis – a world expert on livestock emissions research.

He explained how the measure of GWP (100) – the matrix used to calculate the impact of different gas emissions on warming for the past 30 years – is “problematic” when methane levels are falling.

“It has real strong limitations when livestock numbers are constant and/or falling and methane is being reduced.” . .

Call for changes to GE laws – Leo Argent:

New research shows that New Zealanders are becoming more open to the use of genetic engineering advances to progress our agriculture sector.

Christchurch-based survey and product development company Research First recently published the results of a survey on the use of GE in NZ. It found the use of gene editing in humans for medical and disease prevention purposes was viewed in an overwhelmingly positive manner. Meanwhile, although it still had majority support, the research found less backing for gene editing to improve biodiversity and farm health.

ACT spokesman Mark Cameron says New Zealand needs to liberalise its laws on genetic engineering to allow our agricultural industry to “lead, not lag”.

“ACT has always said if we want to get serious about reducing agriculture emissions we should be looking at technological advancements like this before taxing and destocking.” . .

Carbon farming rocket has taken off – Keith Woodford:

Nothing matches carbon-farming economics on sheep and beef land

This last week I spent two days in Rotorua at the New Zealand carbon-forestry conference where I was also one of the speakers. Both I and others presented perspectives on the path ahead for this new industry. There were close to 300 attendees plus an international online audience.

Although there was diversity of perspective as to how the industry might develop, I sensed no doubt that we all saw ourselves as being involved in something big that, one way or another, is transformational for New Zealand

Most of the attendees were either forestry people already in the business, or alternatively service-industry people who either are already or in future want to be part of this new industry. There were also some Government and Climate Change Commission people there to help explain the current regulatory framework.  . . 

 

Pork sector releases plans of its own :

Alternative to ‘unworkable’ government plans has support of industry, says NZPork 

New Zealand’s pork sector has come up with an alternative to what it sees as unworkable plans proposed by the government.

They include reducing the maximum time farrowing crates can be used from the current 33 days to no more than seven, increasing the minimum space allowance for grower pigs and eliminating the use of mating stalls for housing sows.

The changes would place New Zealand’s standards beyond those required in the United Kingdom, European Union, United States, Canada, Australia and China – which collectively produce most of the world’s pork and supply most of the pork exported to NZ. . . 

Visiting a country where they love their farmers – Alan Emerson:

Alan Emerson spoke to a few Aussie farmers about taxing burping and farting cows and they suggested he must have been drinking.

We’re currently in Australia and it is great to be here after the winter we’ve experienced. 

Boringly, we go to Port Douglas, north of Cairns, and stay in a serviced one-bedroom apartment complete with a full kitchen, bathroom and laundry. 

Having done the maths, there’s not a lot of cost differential between a holiday in Port Douglas and one in Queenstown. . . 

Cream rises to the top in dairy property sector :

The latest Bayleys’ Rural Market Update for the dairy sector compiled by its Insights & Data team points to buyer confidence, buoyant demand, and a positive outlook for the 12 months ahead on the back of strong long-run milk prices and global demand for New Zealand products.

Last financial year, Bayleys transacted over 100 dairy property deals – more than one-third of the total dairy farms sold nationwide.

In releasing the report, Bayleys’ national director rural, Nick Hawken said REINZ figures show the total value of dairying land sold across New Zealand exploded in the 12 months from 1st April 2021-31st March 2022, to $1.524bn – more than double the value sold in the 2020-2021 period.

“In total, 40,958ha of dairying land was sold nationwide in 2021-2022 according to REINZ. . . 


Rural round-up

29/06/2022

Hobson’s Choice – Rural News:

One of the most recognised lines from the classic TV show Hill Street Blues was the send out by Sgt Stan Jablonski – “Let’s do it to them, before they do it to us”.

Sgt Jablonski’s famous catch cry comes to mind with the release of the He Waka Eke Noa (HWEN) proposal to Government. This advocates the system the primary sector wants adopted in respect to reducing on-farm agricultural emissions and sequestering carbon.

HWEN is made up of 14 primary sector groups – including Māori agribusiness. It was set up in 2019 in a bid to stop the Governmnet lumping agriculture into the Emissions Trading Scheme (ETS). HWEN’s recently released alternative approach is the farming sector’s answer to the Government’s ridiculous proposition of dumping agriculture into the ETS. In other words: ‘Let’s do it to them; before they do it to us’!

In reality, the Government gave the primary sector a Hobson’s Choice: either it gets plonked into the ETS or it comes up with a tax on production itself. Industry leaders were right to take the option of trying to produce a solution itself. . . 

Weaker Japanese yen a spoiler as orchid sales rebound – Kim Moodie:

Things are looking up for orchid growers, with the flower export market rebounding strongly after being brought to its knees during the Covid-19 lockdowns.

New Zealand’s flower export industry is worth about $20 million a year. Most of that is made up of cymbidium orchids, hydrangeas and peonies.

Covid-19 lockdowns forced the industry to shift into survival mode, but the head of NZ Bloom, the country’s largest flower exporter, said the industry rebounded with sizeable payoffs for growers last year.

Managing director David Ballard told RNZ growers were getting strong prices, but international demand for orchids was mixed. . . 

Rural and provincial councils call on government to better align reforms :

New Zealand’s Rural and Provincial Councils are calling on the Government to slow reforms.

The message comes after all 50 Rural and Provincial Councils’ Mayors, Chairs, chief executives and some of their councillors met for the first time this year during a two-day forum run by Local Government NZ (LGNZ) in Wellington late last week.

The forum heard from politicians from both sides of the House who acknowledged the current pressures on the sector.

Mayor Alex Walker, Central Hawke’s Bay District Council, and Mayor Gary Kircher, Waitaki District Council, are the Chairs of LGNZ’s Rural and Provincial Councils. . . 

Farm sale volumes ease but results remain robust :

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 50 fewer farm sales (-11.0%) for the three months ended May 2022 than for the three months ended May 2021. Overall, there were 403 farm sales in the three months ended May 2022, compared to 450 farm sales for the three months ended April 2022 (-10.4%), and 453 farm sales for the three months ended May 2021.

1,697 farms were sold in the year to May 2022, 130 fewer than were sold in the year to May 2021, with 11.9% more Dairy farms, 33.6% fewer Dairy Support, 12.9% fewer Grazing farms, 4.1% fewer Finishing farms and 15.2% fewer Arable farms sold over the same period.

The median price per hectare for all farms sold in the three months to May 2022 was $29,760 compared to $28,190 recorded for three months ended May 2021 (+5.6%). The median price per hectare increased 3.9% compared to April 2022.

The REINZ All Farm Price Index increased 1% in the three months to May 2022 compared to the three months to April 2022. Compared to the three months ending May 2021 the REINZ All Farm Price Index increased 31.4%. The REINZ All Farm Price Index adjusts for differences in farm size, location, and farming type, unlike the median price per hectare, which does not adjust for these factors. . . 

Ben McNab wins delayed 2021 Young Winemaker of the Year competition :

Congratulations to Ben McNab from Palliser Estate in Wairarapa who became the 2021 Tonnellerie de Mercurey Young Winemaker. The 2021 National Final was postponed several times due to the pandemic but finally went ahead on 22nd June 2022 at Amisfield winery in the Pisa Ranges near Cromwell, Central Otago.

The other two finalists Jordan Moores Valli in Central Otago and Peter Russell from Matua in Marlborough also excelled themselves with Peter Russell winning the Fruitfed Supplies Speeches and Jordan winning the Villa Maria-Indevin Wine Judging section. All three were delighted and relieved the competition could finally go ahead.

This was the very first time the Young Winemaker National Final has been held in Central Otago and also the very first time someone from Wairarapa has won the prestigious competition. Originally planned as a spring then summer competition, it eventually took place in winter with the snowcapped mountains adding a dramatic backdrop for the day. The finalists undertook a wide range of challenges covering everything needed to be a top winemaker. This included laboratory skills, wine industry knowledge, CAPEX, wine judging and an interview. They also had to prepare and deliver a presentation entitled “What can the wine industry do to reach carbon zero by 2050?” They offered the judges some very well thought out suggestions and plans. . . 

Rural farm with residential subdivision potential at scale is placed on the market for sale :

A substantial farm block overlooking an 18-hole golf course on the outskirts of a prosperous and ever-expanding coastal town – and identified for potential large scale residential property development – has been placed on the market for sale.

The approximately 188-hectare farm is situated on the south-eastern boundary of Thames – the gateway to the Coromandel Peninsula. The northern portion of the existing dairying unit sits alongside Thames Golf Club, while the property’s western boundary has an extensive road frontage onto one of Thames’ main arterial routes linking it with the Hauraki Plains.

The land sits between various residential, lifestyle and commercial zonings, and is currently zoned for rural use under the Thames-Coromandel District Council plan. However, there is an existing council consent in place permitting the two-staged development of the golf course boundary land into nine large lifestyle-sized residential sections.

In addition, the Thames-Coromandel District Council has also identified the address should be rezoned for future medium density housing under its long-term Thames and Surrounds Spatial Plan – to sustain not only the area’s growing population, but also to address the current shortage of new build houses in the locale. . . 


Rural round-up

27/01/2022

Why Utopia is still  a long way off for New Zealand – Jacqueline Rowarth:

Futurists present Utopia for New Zealand in the next 20 years, yet how to achieve this vision is hazy and the execution steps are almost non-existent, Dr Jacqueline Rowarth writes.

It is the time of year when trends for the 12 months ahead are announced, goals are vocalised, and visions are created.

Fitting the pattern is the Utopia being presented to us by futurists, who promote the idea that – “This is what the world/NZ could look like, and this is how it would be achieved. All you have to do is…”

The next word might be “believe”. . . 

Frustration as Goughs Bay still cut off after slips – Jean Edwards:

Canterbury’s Goughs Bay farmers are used to isolation, but imagine walking mile after mile in Sandie Stewart’s shoes.

More than five weeks after torrential rain set off a series of giant mudslides that washed away the Banks Peninsula road, the only way out is a steep hike over a saddle to neighbouring Paua Bay.

That means backpacking groceries for her family of four, weighed down by litres of milk and other essentials. 

“It’s a mission. I’m going to be very strong and mulish after this,” she said. . . 

High commodity prices sees fewer farms put up for sale :

Data just released from the Real Estate Institute of New Zealand shows there were 256 fewer farm sales for the three months to December last year than for the three months ended December 2020 – a 46.6 percent drop.

Comparing the same three month period the median price per hectare for all farms has risen by 39 percent to $37,980.

Institute rural spokesman Brian Peacock said sales figures reflected an easing in volumes compared to similar periods over the last three years, with all categories being impacted . . 

Campaign asks people to ‘Pick Nelson Tasman’ again :

A regional collaboration to tackle the ongoing and significant seasonal labour challenges in the Nelson Tasman horticulture and viticulture sector have launched the ‘Pick Nelson Tasman’ campaign to attract workers to the region and entice locals into seasonal work as the 2022 harvest kicks into gear.

The collaboration, which successfully placed dozens of job seekers into seasonal employment in 2021, has come together again as the squeeze of labour shortages continues to impact the Nelson Tasman region.

“Labour is a challenge right across the Country but with a high seasonal peak for our horticulture harvest – the region is eager to ensure everything gets picked and our crucial primary sector is supported with the labour it needs to continue its strong performance in the face of COVID-19” says NRDA Chief Executive, Fiona Wilson. “It’s also more than the jobs we’re promoting. It’s an opportunity for seasonal workers to explore our stunning, diverse region. They can have their overseas experience in our backyard with the huge range of activities and attractions Nelson Tasman offers.” .  .

South Island Cheese Festival down but not out :

The team behind South Island Cheese Festival held onto hope right until the 11am Government press conference on the 23rd January with only 13 days until their event.

The cheese filled Festival was due to be held on Waitangi Weekend – Saturday 5th Feb at the beautiful Clos Henri Vineyard in Marlborough. With the latest announcement the team behind the festival announced the event will not be cancelled but will be postponed until the country is in a more comfortable position living with Omicron. They can confirm the event will be held in 2022.

Hannah Lamb – event owner and coordinator says ‘We are saddened to have to hold off going ahead with the festival that so many people from all over New Zealand were looking forward to. We decided to postpone rather than looking at ways to go ahead in Red. . . 

Oatly ads banned by UK watchdog over ‘misleading’ green claims :

The UK advertising watchdog has banned a high-profile marketing campaign by Swedish alt-milk brand Oatly after ruling its green claims were misleading.

The Advertising Standards Authority (ASA) launched an investigation into the campaign after receiving 109 complaints from members of the public and the campaign group A Greener World.

In one national newspaper ad the company, which attracted investment from Blackstone, Oprah Winfrey and Jay-Z last year ahead of floating on the US stock market in May, claimed “climate experts say cutting dairy and meat products from our diets is the single biggest lifestyle change we can make to reduce our environmental impact”.

The ASA said consumers would understand the claim to be a “definitive, objective claim that was based on scientific consensus,” when instead it was the opinion of one climate expert. . .

 


Rural round-up

22/09/2021

UK identifies case of ‘mad cow disease’ :

British officials have identified a single case of bovine spongiform encephalopathy (BSE), commonly known as mad cow disease.

The Animal and Plant Health Agency (APHA) said this week that the dead animal had been removed from a farm in Somerset, southwest England, adding there was “no risk to “.

“The UK’s overall risk status for BSE remains at ‘controlled’ and there is no risk to food safety or ,” said Chief Veterinary Officer Christine Middlemiss.

APHA will launch a “thorough investigation of the herd, the premises, potential sources of infection and will produce a full report on the incident in due course”. . . 

Life split between town and country – Sally Rae:

From singing and shepherding to photography and physiotherapy, Hawea woman Anna Munro has a diverse lifestyle. She talks to rural editor Sally Rae about her career and her desire to help tell the farming story.

Anna Munro used to think she would love to end up owning a farm.

Now she’s not so sure. After all, the Hawea woman has the best of both worlds, dividing her time between working on Ardgour Station, near Tarras, and as a physiotherapist in Wanaka.

It might seem an unusual combination but, for outdoors-loving Mrs Munro, it suits her down to the proverbial tee. . . 

Mother of all protests on November 21 – Sally Rae:

They are calling it The Mother of All Protests.

Groundswell New Zealand has announced its next protest will be held on Sunday, November 21.

In July, convoys of thousands of tractors and utes took part in the rural group’s national Howl of a Protest event, protesting against what the rural sector says are unworkable government regulations.

Its Enough is Enough message, outlining the group’s concerns, was delivered at the protests, giving the Government a month to address the issues, or it said it would take further action. . . 

Carbon farming biggest change in land use – Nine to Noon:

Concerns the boom in carbon farming will dictate the future of New Zealand’s sheep, beef and production forestry, and questions over who has oversight over what one academic is calling “the biggest change in land use in New Zealand’s modern history”.  Kathryn speaks with Professor of Farm Management and Agribusiness at Lincoln University Keith Woodford, who says the implications are massive.  Also Forest Owners Association chief executive Phil Taylor, also managing director of the American owned forestry management company Port Blakely. . .

The story of our sunflowers :

The Topflite sunflowers have become something of an icon in Oamaru. Lots of visitors arrive in town asking where to find them and we’ve played host to many a photographer and film crew over the years — even moving one group on after they’d set up their tripods in the centre of the road…

Seeing as we’re gearing up to sow the next crop pretty soon, here’s some background on our little yellow heroes.

We originally grew sunflowers for oil in the 1960s but then moved to growing them for the bird clubs in 1974. People told us we were too far south for sunflowers to grow well but clearly we’ve proved them wrong! Our farms are in a dry area of North Otago and we get reasonably long and hot summers. It turns out that sunflowers grow well here.

October is when we sow the seeds. It’s pretty slow growing until December when the weather heats up. We usually get the first flower by New Year’s Day and by late January the flowers are at their most intense yellow. That’s the time of year to schedule your sunflower selfie! . . 

Agricultural robots market 2021 2021 booming across the globe by share key segments product distribution channel region:

MarketResearch.biz delivers in-depth insights on the global agricultural robots market in its upcoming report titled, “Global Agricultural Robots Market Trends, Applications, Analysis, Growth, and Forecast: 2018 to 2027”.

This report is based on synthesis, analysis, and interpretation of information gathered regarding the target market from various sources. Our analysts have analyzed the information and data and gained insights using a mix of primary and secondary research efforts with the primary objective to provide a holistic view of the market. In addition, an in-house study has been made of the global economic conditions and other economic indicators and factors to assess their respective impact on the market historically, as well as the current impact in order to make informed forecasts about the scenarios in future.

An agricultural robot is an equipment used in farming to improve productivity and reduce reliance on manual labor. These robots help automate tasks carried out by the farmers such as harvesting, weed control, seeding, sorting, and packing, thus allowing farmers to focus more on enhancing overall production yield. . . 

Winter closes quietly – stronger spring anticipated :

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were -51 less farm sales (-14.3%) for the three months ended August 2021 than for the three months ended August 2020. Overall, there were 306 farm sales in the three months ended August 2021, compared to 364 farm sales for the three months ended July 2021 (-15.9%), and 357 farm sales for the three months ended August 2020.

1,680 farms were sold in the year to August 2021, 37.3% more than were sold in the year to August 2020, with 153.8% more Dairy farms, 1% more Dairy Support, 24.4% more Grazing farms, 50.8% more Finishing farms and 46.4% less Arable farms sold over the same period.

The median price per hectare for all farms sold in the three months to August 2021 was $27,250 compared to $25,460 recorded for three months ended August 2020 (+7%). The median price per hectare increased0.3% compared to July 2021. . .


Rural round-up

28/05/2021

Trade with China – May 2021 – Elbow Deep:

As a dairy farmer, whenever I am asked what I think is the greatest risk to farming in the foreseeable future I invariably and only half-jokingly reply that it is politicians. I wasn’t laughing recently, however, when Brook van Velden, the ACT party’s foreign affairs spokesperson, submitted a motion to Parliament asking MPs to declare China’s treatment of the Uyghur people a genocide. She had the full backing of her leader, David Seymour, who boldly exclaimed “We shouldn’t care about trade and declare a genocide in China”.

This somewhat idealistic proposition came hard on the heels of the Labour Government being criticized by their Five Eyes partners for being too cosy with China. Five Eyes, an intelligence gathering and sharing arrangement between the United States, Canada, United Kingdom, Australia and New Zealand, has in recent times tried to expand its remit into other areas of policy. These policy statements are invariably some kind of criticism of China, but New Zealand has annoyed its Five Eyes partners by charting their own course and not signing on to these statements.  . . .

Budget pumps $1.3bn into railways but almost forgets farmers while Fonterra delivers the economy-boosting goods – Point of Order:

Farmers    who  believed   Labour  when it  said  it wanted  to  double  agricultural  exports may have experienced  a  sense  of  disillusion as  they  absorbed the  messages  of  Budget 2021.  While  the  government  is  allocating $1.3bn to modernise rail infrastructure and  build locos  and  wagons in Dunedin,  it  could find  only  $62m  for  agriculture.

Someone  has  calculated  that  the country’s 40,000 farm businesses, if they shared the $62m, would each receive $1550 or $29 a week (less than the ongoing minimum benefit increase).

This  comparatively meagre  sum   is  to be  applied as  follows: . . 

Hawke’s Bay farmers win deer environmental award :

The winners of the 2021 Elworthy Award, an environmental accolade for deer farmers, are Grant and Sally Charteris of Forest Road Farm in the Central Hawke’s Bay.

The award was presented at the Deer Industry Conference in Invercargill earlier this month.

Lead judge, Janet Gregory, says the eight entrants in the deer environmental awards had many things in common: active farm environment and business plans, and involvement in the deer industry’s productivity and environmental activities.

“All are leaders in the industry, show great passion and stewardship of the land, and are supporting their local communities. Many of them have calculated their greenhouse gas emissions or are planning to do so,” Gregory says. . . 

How good are New Zealand Farmers?:

“The latest Fonterra announcement of a heightened 2021/2022 farm gate milk price is a big thumbs up for rural New Zealand performance,” says ACT’s Primary Industries spokesperson Mark Cameron.

“Cheers to our dairy farmers for all their hard work. What this means to New Zealand economic recovery in these crazy COVID times, is greater economic certainty.

“After last week’s la la budget which spent billions of dollars, this boost is exactly what the country needs.

“The new pay-out will mean hundreds of millions of additional dollars that flood into the national economy. A fiscal kick up the backside of a struggling economy. It’s great news to help spirit on our recovery and pay for our ballooning debt. . . 

Confidence constrained by climate:

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 220 more farm sales (+89.4%) for the three months ended April 2021 than for the three months ended April 2020. Overall, there were 466 farm sales in the three months ended April 2021, compared to 432 farm sales for the three months ended March 2021 (+7.9%), and 246 farm sales for the three months ended April 2020.

1,677 farms were sold in the year to April 2021, 45.1% more than were sold in the year to April 2020, with 120.0% more Dairy farms, 84.1% more Dairy Support, 20.8% more Grazing farms, 54.4% more Finishing farms and 11.8% less Arable farms sold over the same period.

The median price per hectare for all farms sold in the three months to April 2021 was $29,746 compared to $22,435 recorded for three months ended April 2020 (+32.6%). The median price per hectare increased 14.8% compared to March 2021. . . 

FAO sets the record straight–86% of livestock feed is inedible by humans :

As the media frenzy caused by a ‘planetary health diet’ proposed in a new report from an EAT-Lancet commission this month continues, it is perhaps timely to recall that the Food and Agriculture Organization of the United Nations (FAO) has set the record straight regarding not just the level of greenhouse gases that livestock emit (see yesterday’s posting on this blog) but also incorrect information about how much food (crops eatable by humans) is consumed by livestock. It’s not a lot.

The EAT-Lancet report summarizes scientific evidence for a global food system transition towards healthy diets from sustainable agriculture. The report concludes that a global shift towards a diet made up of high quantities of fruits, vegetables and plant-based protein and low quantities of animal protein could catalyze the achievement of both the 17 Sustainable Development Goals (SDGs) and the landmark 2015 Paris Agreement to combat climate change.

Anne Mottet, an FAO livestock development officer specializing in natural resource use efficiency and climate change, usefully informs us of incorrect, if widespread, information and understanding about the so-called ‘food-feed competition’. . . 


Rural round-up

22/03/2021

Major strawberry grower Perrys Berrys calls it quits amid labour shortage – Kate MacNamara:

Francie Perry, a stalwart of New Zealand horticulture and an outspoken critic of the Government’s inflexible Covid-19 border policy for foreign workers, is throwing in the towel after 40 years of strawberry growing.

Perrys Berrys is among the largest berry growers in the country and appears to be the first major operator to fall victim to a harvest season hampered by a shortage of thousands of workers.

Contacted by The Herald, Perry, aged 71, declined to comment. In recent months she has told both customers and suppliers that Perrys Berrys, the strawberry growing company she founded and owns jointly with daughter Katie Perich, will not plant another crop. . .

National answers horticulture sector’s call for help:

Allowing seasonal workers from COVID-free countries to enter New Zealand without quarantine needs to happen fast to plug the yawning gap in our horticulture sector’s workforce, National’s Horticulture spokesperson David Bennett says.

National Leader Judith Collins today called for the Government to expand its safe zone travel arrangements to include quarantine-free travel into New Zealand for Fiji, Samoa and Tonga.

Doing so would allow for greater numbers to enter via the Recognised Seasonal Workers (RSE) scheme, which would help address the horticulture sector’s labour-force shortfall, which the Agriculture Minister says is up to 13,500 workers, Mr Bennett says.

“New Zealand’s $6 billion horticulture sector is crying out for staff and our Pacific neighbours want the opportunity to come here. . . 

Farmers and government working together — March 2021 – Elbow Deep:

I had a sheep farming friend in Otauau, Southland, who once took me on a tour of his property. It was immaculate, a mixture of flats and gently rolling hills with the steeper areas planted in native bush. As we drove around the farm John outlined his plans for converting the flats to dairy, the value of his land had been swept along with the tide of conversions around him and the banks were very keen to lend him as much as he needed.

John knew exactly where the shed would go, how the paddocks would be subdivided and which areas would remain in sheep to keep his son interested in the farm. When the tour was finished and we were relaxing with a cold beverage, I asked when the conversion was going ahead so I could schedule my move to manage the conversion.

“You know Craig”, he said, “the plan makes perfect financial sense but I’m never going to do it, I just hate mud too much.” . .

Hemp harvest: Waimarama whānau turning over a new leaf – Louise Gould:

Waimarama could become a new hub for hemp after the first successful harvest in the area on Friday.

Innika Broadman from the Waimarama Māori Hemp Collective said the initiative has been set up to get whānau back on their land, sewing their seeds and reaping the benefits.

The collective is working in partnership with Otane-based Kanapu Hempery with the plan to produce hemp seed hearts, hemp oil and eventually hemp milk. . .

 

Rural market consolidates:

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 129 more farm sales (+39.2%) for the three months ended February 2021 than for the three months ended February 2020. Overall, there were 458 farm sales in the three months ended February 2021, compared to 517 farm sales for the three months ended January 2021 (-11.4%), and 329 farm sales for the three months ended February 2020.

1,542 farms were sold in the year to February 2021, 23.1% more than were sold in the year to February 2020, with 51.3% more Dairy farms, 3.1% more Grazing farms, 42.9% more Finishing farms and 30.1% less Arable farms sold over the same period.

The median price per hectare for all farms sold in the three months to February 2021 was $25,665 compared to $20,569 recorded for three months ended February 2020 (+24.8%). The median price per hectare decreased 0.8% compared to January 2021. . . .

Ability not gender is everything when it comes to farming – Will Evans:

A few days after our fourth daughter was born, and still with that uniquely joyous spring in my step that comes from having a new baby in a family, I walked into a treatment room to have some work done on my bad back.

“Has it arrived yet?”, the physio asked expectantly. “Yes”, I replied with a beaming smile. “I always said I wanted beautiful girls in my life, and now I have five of them – Branwen was born on Thursday, happy and healthy”.

I don’t know what reply I was expecting, but it wasn’t a look of devout sympathy and “Oh, what a shame for you and your farm”.

I was taken aback at the time, and didn’t know how to respond. But in the five years since then, both my wife and I have received numerous similar comments, usually something along the lines of “You’ll keep going for a boy for the farm, will you?”. It’s something that I encountered again recently. . .

 


Rural round-up

30/01/2021

A world first for collagen water – RIchard Rennie:

Collagen, often the main component of gelatin, has surged in profile over recent years. It is also the main structural protein in mammals’ bodies, and is now hailed as a nutritional supplement to help muscle mass, aid arthritis and improve skin quality. Richard Rennie spoke to Luci Firth whose idea for a collagen water has become a world-first reality.

Working as a graphic designer for a Japanese client, Luci Firth soon became aware of the significance Asian consumers place on collagen as a daily part of their diet, and how far behind New Zealanders were in awareness about its claimed health benefits.

“In places like Japan you will find it regularly used as something you sprinkle on your rice, or buy it from a corner store to add to your cooking. We have been a bit slower to pick up on it,” Firth said. . .

Rural literacy trust struggles for support – Jessica Marshall:

Jo Poland started the Rural Youth and Adult Literacy Trust (RYALT), formerly the Adult Literacy Trust, from her kitchen table in 2011.

Poland, who has taught and been involved in teaching adult literacy since 1994, was approached by a local Port Waikato mother who was looking for help for her daughter who struggled with reading and writing.

Thus, Poland was inspired to found RYALT with two other trustee members.

Since then, RYALT has helped close to 1000 people – youths and adults.

Farms ales rise at the end of 2020:

Farm sales ended 2020 on a healthy note with a 15 percent increase compared to the same time the previous year.

Real Estate Institute of New Zealand (REINZ) data shows 32 percent more finishing farms and 26 percent more dairy farms were sold in the three months ended December 2020 compared to the same time in 2019. Sales of grazing farms were down 9 percent and 23 percent fewer arable farms were sold.

The median price per hectare was up $4000 to just over $27,000. . .

LIC half-year report – enomics investment delivering for farmers and co-op:

LIC announces its half-year financial results for the six months to 30 November 2020, which show continued strength in the cooperative’s financial performance with increased revenue and underlying earnings.

Performance Highlights H1 2020-21:

  • $169.7 million total revenue, up 3.8% from $163.4 million in the same period last year.
  • $33.4 million net profit after tax (NPAT), up 10.4% from $30.3 million. . .

Zespri plan to partner with Chinese growers off the table, for now :

Kiwifruit exporter Zespri’s hope to partner with Chinese growers illegally growing gold kiwifruit are on hold.

Last year unauthorised plantings of the high value fruit almost doubled to at least 4000 hectares.

Growers in New Zealand pay hundreds of thousands of dollars a hectare to grow it, so in a bid to control plantings in China, Zespri had hoped to work with Chinese growers and authorities in what it called a “win- win” commercial agreement.

But Kiwifruit New Zealand, which independently regulates Zespri, has thrown out the proposal for now. . .

‘Setting the example’: About 330 Riverside County farmworkers vaccinated at event in Mecca – Rebecca Plevin:

Beatriz Martinez has continued working in the fields of the Coachella and San Joaquin valleys throughout the coronavirus pandemic. She has followed a series of protocols — maintaining a 6-foot distance from other workers, avoiding eating in close proximity to others during her lunch breaks and washing her hands frequently — and she has not contracted COVID-19.

On Thursday morning, the 54-year-old Coachella resident took a break from pruning grapevines at Tudor Ranch in Mecca, where she has worked for 35 years, to get vaccinated. She was among approximately 330 agricultural employees who got the shot at the ranch, in what county officials believe was the state’s first large vaccination event specifically for farmworkers.

Martinez — who wore a surgical mask and a colorful bandana over her mouth, and clutched a wide-brimmed hat in her hand — said in Spanish she was “really happy” to get vaccinated. She was grateful to get inoculated during work hours, she added, calling it a “reward” for all the years she had worked for the company. . . 

 


Rural round-up

19/09/2020

Fonterra back in the black :

Fonterra has posted a $659 million profit and will pay farmers $7.19/kg milksolids for the 2019-20 season.

It has held the forecast for the 2020-21 season at $5.90-6.90/kg MS.

The dividend for the 2019-20 season is 5c a share.

Fonterra chief executive Miles Hurrell says 2019-20 was a good year for the co-op, with profit up, debt down and a strong milk price.

“We increased our profit after tax by more than $1 billion, reduced our debt by more than $1 billion and this has put us in a position to start paying dividends again,” he says. . . 

Farmers and growers call for help with labour shortages – Katie Todd:

Farmers and growers say if agriculture is going to drag the country’s economy back into shape, they will need help to fix labour shortages.

While urban centres went into a strict lockdown in April and May – contributing to a 12.2 percent tumble in gross domestic product – agriculture, forestry and fishing saw only a marginal drop of 2.2 percent.

The pandemic has done little to disrupt business on Damien Roper’s south Taranaki farm, home to 420 dairy cows.

He said even in the throes of the level four lockdown, his classification as an essential worker made it almost business as usual. . . 

Urgent government intervention required for horticulture industry Finance Minister told :

Industry representatives met with Finance Minister, Grant Robertson in Hawke’s Bay earlier this week to discuss challenges facing the regional fruit and wine industry. The main item of discussion was around labour pressure for the coming grape, summerfruit and apple harvests – pressure that will see more than 10,000 seasonal workers needed.

Industry welcomed the Minister’s positive message that the government understood the issue facing these industries.

“With backpackers and Pacific seasonal workers down by 50,000, the industry is facing an incredibly difficult task across New Zealand this season,” says New Zealand Apples and Pears Inc (NZAPI) chief executive Alan Pollard. . . 

‘Languishing’ Jobs for Nature process leave tourism operator fearful – Tess Brunton:

A South Island tourism operator says he could have prevented redundancies if wasn’t for delays to a nature-based job creation scheme.

More than $1 billion was earmarked for the Jobs for Nature programme in May as part of the government’s cross-agency Covid-19 recovery package to run over four years.

Today, Minister of Conservation Eugenie Sage announced an extra $19.7 million for kiwi conservation aimed at reversing the decline of the species.

While the funding has been welcomed, some applicants have been waiting months in limbo unsure if they will get a green light. . . 

Agricultural policy must incentivise innovation:

Agcarm calls on the government to introduce managed risk to legislation. Its chief executive Mark Ross says that the rural sector faces many, and often conflicting, demands. “Our farmers and growers are faced with the challenges of growing more food and fibre in reducing hectares of available space. They are also being asked to reduce greenhouse gas emissions, keep up with international best practice, minimise residues and manage resistance.

“To support our farmers and growers to meet these challenges, we must allow them to have access to the latest technology and the most effective and sustainable animal medicines and pesticides to protect animals and crops from devasting losses,” he says.

In its election manifesto, Agcarm asks the new government to modernise the regulatory environment for new product approvals and base scientific decision-making on facts and evidence, not political popularity. . . 

Rural market poised for spring:

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 121 more farm sales (+45.7%) for the three months ended August 2020 than for the three months ended August 2019. Overall, there were 386 farm sales in the three months ended August 2020, compared to 341 farm sales for the three months ended July 2020 (+13.2%), and 265 farm sales for the three months ended August 2019. 1,252 farms were sold in the year to August 2020, 7.2% fewer than were sold in the year to August 2019, with 22.9% less Dairy farms, 14.1% less Grazing farms, 15.3% less Finishing farms and 6.1% more Arable farms sold over the same period.

The median price per hectare for all farms sold in the three months to August 2020 was $25,657 compared to $25,346 recorded for three months ended August 2019 (+1.2%). The median price per hectare increased 10.8% compared to July 2020. . . 


Rural round-up

30/04/2020

Farmers ask government to align domestic, international emissions target – Eric Fryberg:

Two major farming groups have urged the Climate Change Commission to align New Zealand’s domestic policy with its international promises on climate change.

Dairy NZ and Beef and Lamb said it did not make sense for the government to do one thing within New Zealand and something else for the rest of the world.

Their concern was based on the relative importance of different greenhouse gases.

Domestically, the government has legislated a different emissions reduction target for long-lived gases like carbon dioxide, compared with a short-lived gas like methane. . .

Fonterra Dairy Woman of the Year finalists reflect depth and diversity in the industry:

Three woman contributing to the dairy industry in very different ways are this year’s finalists in the Fonterra Dairy Woman of the Year award.

Ngai Tahu Farming Technical Farm Manager Ash-Leigh Campbell from Christchurch, Auckland based microbiologist and bio chemist Natasha Maguire and West Coast dairy farmer Heather McKay are all in the running for the prestigious dairy award managed by the Dairy Women’s Network being announced early next month.

Dairy Women’s Network Trustee and a member of the awards judging panel Alison Gibb said all three finalists came from such different directions and perspectives which highlighted the depth and diversity of how women are contributing to the dairy industry in New Zealand. . . 

Ag exports a ‘godsend’ – Pam Tipa:

Primary product prices will fall further this year but remain at reasonable levels before some improvement in 2021, according to BNZ senior economist Doug Steel.

However, the falls – so far this year – have not been as much as might have been expected, he says.

“The defensive qualities of NZ’s food-heavy export mix may well be a Godsend for the economy as a whole during the current turmoil. If nothing else, it is easy to imagine a new-found appreciation for where our food comes from,” Steel told Rural News. . .

Ritchie instrumental in driving positive change for red meat sector – Allan Barber:

Tim Ritchie came into the Meat Industry Association as CEO at the end of 2007, initially intended to be for an 18 month period, and retired earlier this month over 12 years later. His first task was the planned merger of the processor representative organisation with Meat & Wool, the forerunner of Beef + Lamb NZ, which was strongly promoted by Keith Cooper, then CEO of Silver Fern Farms, and Meat & Wool chairman, Mike Petersen.

The merger was doomed to fail after dissension among the processors, some of which failed to see how the two organisations, one a member funded trade association and the other a farmer levy funded body, could possibly work as one. History has clearly shown the logic behind the eventual outcome which has seen MIA and B+LNZ each carving out a clearly defined role to the ultimate benefit of the red meat sector. . . 

Cautious optimism over apple exports – Peter Burke:

NZ Apples and Pears says while it’s early days yet, apple export volumes for this year are only slightly behind last year.

Alan Pollard, chief executive of NZ Apples and Pears, says so far there has only been 25% harvested, but the signs are encouraging and he’s cautiously optimistic.

He’s predicting that it may be a reasonable year, but not a great year. . .

An historic month:

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 50 less farm sales (-15.1%) for the three months ended March 2020 than for the three months ended March 2019. Overall, there were 281 farm sales in the three months ended March 2020, compared to 329 farm sales for the three months ended February 2020 (-14.6%), and 331 farm sales for the three months ended March 2019. 1,216 farms were sold in the year to March 2020, 15.9% fewer than were sold in the year to March 2019, with 32.6% less Dairy farms, 14.3% less Grazing farms, 26.1% less Finishing farms and 14.1% less Arable farms sold over the same period.

The median price per hectare for all farms sold in the three months to March 2020 was $21,130 compared to $23,383 recorded for three months ended March 2019 (-9.6%). The median price per hectare increased 2.7% compared to February 2020. . . 


Rural round-up

21/03/2020

Coronavirus: Fonterra, New Zealand is counting on you now like never before – Andrea Fox:

Fonterra chairman John Monaghan in his opening remarks about this week’s strong half-year result said against the backdrop of coronavirus turmoil, the big dairy company’s news “may sound somewhat trivial”.

We knew what he meant, but he couldn’t have been more wrong.

The financial performance of New Zealand’s biggest company and the world’s fourth-largest dairy company assumes towering new importance because of that turmoil.

Dairying was an economic sword for New Zealand against the GFC. . . 

New Zealand’s food supply needs protecting:

The animal medicines and crop protection lobby group Agcarm applauds the government’s efforts to protect the health of New Zealanders in its response to the COVID-19 pandemic, buts asks that support is extended to the farming community for maintaining essential food supplies.

Agcarm chief executive says “our rural communities are needed more than ever to ensure that this health crisis doesn’t turn into a hunger crisis”. Food production must be prioritised as an essential part of the COVID-19 response.

“We must maintain the uninterrupted movement of animal medicine and crop protection products, seeds and feed so that our farmers can keep healthy livestock and maintain an abundant supply of meat, fruits, vegetables and grains.” . . 

Still in business – Annette Scott:

Rural people are urged to band together in keeping safe as they ride the tough times of the coronavirus pandemic.

Social resilience is key and if everyone works together “we will get through this,” the Mental Health Foundation says.

Agriculture is still in business and likely to lead the bounce back, ASB rural economist Nathan Penny says.

“Farming is likely to be the quickest to rebound from the fallout from coronavirus. . . 

Drought starting to bite hard – Colin Williscroft:

Drought shouts organised by North Island rural support trusts have been put on hold by restrictions on gatherings.

Rural Support Trust chairman Neil Bateup says the social events bringing farmers together to deal with the drought and take their minds off some of its problems are no longer an option as the focus goes on keeping farmers and trust staff safe from covid-19.

It does not affect the trust’s other services.

“We’re absolutely determined to continue with the one-on-one support and advice to farmers.

“That will not be interrupted but we’re putting some protocols in place to keep everyone safe.” . . 

Dairy farm sales low but recovering – Maja Burry:

New figures from the Real Estate Institute show dairy farm sales remain slow, with only one dairy farm changing hands in Canterbury in the last nine months.

Data released yesterday shows 1253 farms were sold in the year to February 2020, 14.8 percent fewer than were sold in the year to February 2019, with 37 percent less dairy farms, 10 percent less grazing farms, 27.9 percent less finishing farms and 9.9 percent less arable farms sold over the same period.

The institute’s rural spokesperson Brian Peacocke said the data reflected a rural industry under pressure in terms of volumes and values, particularly the dairy sector. . . 

Synlait Milk’s first half profit drops 30 percent :

Synlait Milk has reported a 30 percent fall in its first half profit as its costs rose despite higher revenue.

The dairy company’s net profit for the six month ended January was $26.2 million, compared with $37.3 million the year before.

Revenue rose 19 percent, but its depreciation and financing costs offset that as the company expanded for future growth. . .


Rural round-up

20/02/2020

West Coast man decries government’s ‘blatant attack on property rights’ :

An elderly West Coast man has appealed to the government not to take his land, after more than 70 percent of it was classed as a Significant Natural Area.

Tony Barrett, 86, lives alone on his 607ha block on the Arnold Valley Road, east of Greymouth.

Barrett’s grandparents first leased the land near Notown from the government in the 1930s after it was cleared of trees, dug over and mined for gold by returned servicemen.

The Barretts left much of it undeveloped, and a large chunk of the formerly gorse-covered block is now regenerating native bush. . . 

Wild rabbit sellers say cost of audits driving them out of business:

Those trying to make a living from selling wild rabbits to restaurants and for pet food say they are being driven out of business by high compliance costs.

Shooters and processors spoken to by RNZ said audits up to every six weeks were over the top and they should not be treated in the same way as a large scale meat works.

Bob Thomson has run a sole operator rabbit processing plant on the outskirts of Christchurch for the past two decades, supplying wild rabbits to high end restaurants around the country and for pet food.

But he is drowning under a tsunami of paperwork. . .

Helping farmers tell their stories – Colin Williscroft:

There’s an increasing awareness of the need for farmers to tell their stories to help explain to urban New Zealanders the realities of life on the land and the contribution the primary sector makes to the country. Lisa Portas of Palliser Ridge is determined to help get those stories across, as Colin Williscroft found out.

 For farming stories to truly connect with an urban audience they not only have to be told well, they need to be authentic and that means they have to come from farmers themselves, Wairarapa farmer Lisa Portas says.

If that’s going to work farmers need to become more comfortable being their own narrators and not be afraid to use a range of channels from social media to open days to encourage a wider understanding of agricultural industries, the people involved, the processes and the reasons why decisions are made. . .

Around world and back to Synlait – Toni WIlliams:

Lachie Davidson has travelled to the other side of the world, been crowned a world champion egg thrower and has just embarked on a career with an internationally recognised company which prides itself as being an outside-the-box thinker.

The 22-year-old former Ashburton College head boy is one of four to gain a place in the Synlait Future Leaders Programme. More than 300 people applied.

Under the three-year accelerated development programme, developed by Synlait organisational development manager Tony Aitken, he will undergo leadership training as he learns different facets of the company. . .

LIC to seek shareholder approval to acquire 50% stake for $108.7 million in Israeli agritech company Afimilk:

    • The investment will strengthen LIC’s ability to deliver superior herd improvement services and agritech to its farmers.
    • The proposed 50% stake in Afimilk will help LIC keep its world-leading edge in pastoral dairy farming data while broadening access to new information to meet future needs and challenges.
    • Afimilk is profitable, has no debt and has historically paid dividends to its shareholders. . .

Rural market reflects external volatility:

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 57 less farm sales (-13.6%) for the three months ended January 2020 than for the three months ended January 2019. Overall, there were 363 farm sales in the three months ended January 2020, compared to 345 farm sales for the three months ended December 2019 (+5.2%), and 420 farm sales for the three months ended January 2019. 1,277 farms were sold in the year to January 2020, 14.7% fewer than were sold in the year to January 2019, with 40.3% less Dairy farms, 3.9% less Grazing farms, 28.4% less Finishing farms and 9.8% less Arable farms sold over the same period.

The median price per hectare for all farms sold in the three months to January 2020 was $21,221 compared to $27,087 recorded for three months ended January 2019 (-21.7%). The median price per hectare decreased 7.7% compared to December 2019. . .


Rural round-up

26/01/2020

New policy might limit farming – Neal Wallace:

Farmers fear new biodiversity policy could force councils to make them restore areas of indigenous flora and fauna on their land.

The Government has released its proposed draft National Policy Statement for Indigenous Biodiversity, which leans heavily on councils to identify, monitor and manage areas with significant indigenous biodiversity.

Within five years councils will have to identify and map significant natural areas using standard national criteria, manage any adverse effects on those areas and survey native wildlife in and outside the areas to determine if they are threatened or affected by land use activities. . .

Sarah’s Country: Are we fit for a better world? – Sarah Perriam:

Sarah’s Country’s debut episode focuses on the key elements of this vision for New Zealand that includes a swing towards regenerative agriculture, capturing the value of the billion-dollar plant protein trend and offsetting our carbon emissions with environmental integrity, not ‘thin air fake’ credits.

Sarah Perriam, the host of Sarah’s Country, is this week joined by guest co-host Kate Scott. Kate is a director of LandPro and a 2018 Nuffield Scholar living in Central Otago. . .

Farm sales start to look up:

Farm sales were down 21.6% for the three months ended December 2019 versus the year prior ­— but sales look to be lifting.

Data released today by the Real Estate Institute of New Zealand (REINZ) shows that farm sales increased by 22.3% in the three months ended December 2019 compared to the three months ended November 2019, with 345 and 282 sales respectively. . .

$8 payout possible – Peter Burke:

The guessing game has begun to predict what dairy farmers will get for their milk this season.

The consensus in the sector is that the price will be positive: numbers ranging from $7.15/kgMS to $7.50/kgMS, although ASB rural economist Nathan Penny is sticking his neck out and suggesting it could reach $8/kgMS.

Fonterra says its forecast is in the range of $7.00 to $7.60 with the midpoint being $7.30.

Dr. Mitloehner issues warning on increasing herd sizes – Charles O’Donnell:

While there is not necessarily a need to cut herd sizes for the purpose of climate change mitigation, increasing numbers is also not the way to go, according to Dr. Frank Mitloehner.

Dr. Mitloehner, a well-known professor and air quality specialist, was speaking at an event called ‘Climate Action in Agriculture: A Balanced Approach’ in Dublin today, Tuesday, January 21, which was organised by the Irish Farmers’ Association (IFA).

The German-born Californian-based professor spoke out against the perceived necessity to cut herd sizes. However, when asked about the growing numbers of animals in the dairy industry, he warned that going in the opposite direction by increasing numbers would pose a climate issue. . . 

Government urged to block high carbon food imports :

Britain cannot risk importing food with a higher carbon footprint than food which has been produced in the UK, a new report says.

Released by the Committee on Climate Change (CCC), it says British farming produces some of the most sustainable food in the world and that emissions from UK beef is half that of the global average.

Land Use: Policies for a Net Zero UK presents a detailed range of options to drive emissions reductions in England, Scotland, Wales and Northern Ireland. . . 

 


Rural round-up

23/12/2019

Wairoa farmland sold for forestry angers 50 Shades of Green as Shane Jones extends olive branch – Zane Small:

Shane Jones is extending an olive branch to the pro-farming community after the Government approved more farmland to be sold for forestry, saying he wants to hear their concerns. 

The Overseas Investment Office (OIO) – a Government agency – has approved the sale of 1065 hectares of land in Wairoa from Craigmore (Te Puna) Limited, a company that manages various farm and forest investments in New Zealand.

The land being acquired is currently run as a sheep and beef cattle farm, with small plantings of radiata pine and manuka. The OIO approved the sale of land on the understanding it’s erosion-prone and better suited to forestry. . . .

Skills will help grow careers – Sally Rae:

From fitness to farming, Luke Fisher is relishing his career move into the primary industries.

English-born Mr Fisher, a business manager for Farmlands at its Motueka branch, has been in Dunedin for six weeks as one of two interns in the AGMARDT-AbacusBio international internship programme.

He is joined by Emma Hinton, who is business manager at Farmlands’ Leeston branch in Canterbury.

Sales Slump in the dairy sector:

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 54 less farm sales (-16.1%) for the three months ended November 2019 than for the three months ended November 2018. Overall, there were 282 farm sales in the three months ended November 2019, compared to 260 farm sales for the three months ended October 2019 (+8.5%), and 336 farm sales for the three months ended November 2018. 1,295 farms were sold in the year to November 2019, 12.8% fewer than were sold in the year to November 2018, with 44.4% less Dairy farms, 1.6% less Grazing farms, 23.4% less Finishing farms and the same number of Arable farms sold over the same period. . .

River clean-up energises farmer :

Invests $18,000 of his own money to help restore river after realising the impact on waterways.

He’s a “townie” turned dairy farmer and is enthusiastically embracing the clean-up one of New Zealand’s most degraded rivers.

Gerard Vallely, a 65-year-old who, with his wife Ann, runs two dairy farms in west Otago, has set aside a sizeable chunk of his property to be developed into a wetland – and has so far spent $18,000 of his own money doing so.

The farms border two streams, tributaries of the Pomahaka River, and the land he has ‘donated’ is part of an overall project in the district to restore the river, long considered one of the country’s best fishing locations, back to health. . .

Christmas market short of peas, strawberries – David Hill:

Locally grown strawberries and peas could be missing from the Christmas dinner menu.

As he prepares for the seventh annual Sefton Christmas Harvest Market on his farm near Rangiora, North Canterbury grower Cam Booker said Christmas strawberries, raspberries and peas were in short supply.

He said there would be no homegrown strawberries on the Booker Christmas dinner table this year . . .

New Zealand Hops confirms Craig Orr as new Chief Executive:

Food and beverage industry leader, Craig Orr, is confirmed as the new Chief Executive Officer (CEO) of New Zealand Hops Ltd (NZHL).

New Zealand Hops is a contemporary grower co-operative, based in Nelson, Tasman, the only region commercially growing hops in New Zealand. The co-operative represents the interests of 28 growers, many of whom are intergenerational families, having grown hops in the region for more than 150 years.

The co-ordination of the industry was first initiated in 1939 with the inception of the New Zealand Hop Marketing Board. . .


Rural round-up

25/07/2019

Federated Farmers has questions over firearms register:

Misgivings about the practicality and cost of a firearms register is likely to dominate feedback from rural areas on the second round of proposed Arms Act amendments, Federated Farmers says.

The proposals feature a range of tighter controls on firearms ownership and licensing and Federated Farmers rural security spokesperson Miles Anderson anticipates support for many aspects of the changes.

“When firearms are used irresponsibly or illegally in New Zealand, it is often farmers who suffer the consequences through the theft of livestock, poaching of wild animals or the risks of dangerous behaviour. Hopefully some of these proposed changes will help to prevent that,” Anderson said. . . 

The environment comes first – Andrew Stewart:

Running a big station with 3500 owners is a big challenge. But Parengarega Station’s new farm manager Kathryne Easton is adding to the task, with her vision of starting with the environment then working back to the farm with her best-use-of-land philosophy at the same time as coping with pest, pasture and weather issues. She told Andrew Stewart her 
environmental and biosecurity plans include not just the farm but the entire Far North.

It’s fair to say many Kiwis forget how far the country stretches north past Auckland. 

The reality is they can travel another six hours before reaching the tip of New Zealand at Cape Reinga and the further north they go the more diverse and challenging the land becomes. 

Just half an hour south of the Cape lies Parengarenga Station, a diverse, nearly 6000-hectare operation that stretches between both coasts of the country.  . . 

Banks’ caution stymies farm sales – Alan Williams:

Farm sales are at their lowest in the last four to six years, Real Estate Institute figures show.

Turnover for the three months to the end of June was down 24.6% on the corresponding period a year earlier and down 15.3% on the three-month period to the end of May.

The latest June tally was 322, compared with 380 in the May period and 427 for June last year.

The non-dairy farming sector is holding value more strongly than the dairy sector, the institute’s rural spokesman Brian Peacocke said.

Its All Farm Price Index showed a 2.4% rise from May to June and for the year the gain was 7.3%.  . . 

LIC annual result reflects performance, profitability turnaround :

Livestock Improvement Corporation (NZX: LIC) (LIC) announces its financial results for the year ending 31 May 2019.

Reporting a significant increase in profitability, as well as new records in strength of balance sheet, operating cash flow, and total revenue, the co-op will return $15.6 million in dividend to shareholders. This fully imputed dividend equates to 10.98 cents per share and represents a yield of 12.2% based on the current share price of 90 cents. This dividend is up from 1.71 cents last year and is the largest dividend the co-op has paid since 2013.

Board chair Murray King said the result was in line with expectations and reflects a turnaround in the co-operative’s performance and profitability. . . 

Feeding 10 Billion People Will Require Genetically Modified Food – Deena Shanker:

Like it or not, genetic modification is going to be an important tool to feed the planet’s growing population.

If we want to feed 10 billion people by 2050, in a world beset by rising temperatures and scarcer water supplies, we will need to dramatically change the way we produce food. Increased public investment in technologies like genetic engineering is a vital piece of that, according to a report published Wednesday by the World Resources Institute.

Not only must crops be more productive, but the agricultural challenges of climate change—including disease, pests and periods of both drought and flooding—mean they must be more resilient as well. . . 

Future drought fund passes final hurdle in senate – Mike Foley:

After delaying the vote and criticising the policy, federal Labor has provided the necessary support to pass the federal government’s Future Drought Fund through parliament.

The Bill to enact the the Coalition’s rural showpiece policy made its way through the Lower House last night, and today Labor has agreed to approve the legislation in the Senate.

With seed funding of $3.9 billion, the drought fund would grow to $5b by 2030. . . 

 


Push pause til cost benefit known

14/06/2019

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

09/04/2019

Intensive forestry creates ‘too many environmental risks’ – lawyer – Kate Gudsell:

The rules governing forestry are too light and need to be reviewed, environmental groups say.

The National Environmental Standards for Plantation Forestry came into force in May last year but are about to be reviewed by the government.

The Environmental Defence Society and Forest and Bird decided to conduct joint analysis because of increasing public concern about the impacts of commercial forestry in light of events like Tologa Bay last year.

An estimated one million tonnes of logs and debris was left strewn on properties and roads on the East Coast during two bouts of heavy rainfall in June last year.

Farmers put the cost of the damage in the millions of dollars. . . 

Overseas Investment Office approves Craigmore $52m apple orchard investment – Gerard Hutching:

Foreign investors headed by New Zealand management have been given the green light by the Overseas Investment Office to buy two horticultural properties after being rebuffed last year over a bid to buy a kiwifruit and avocado orchard.

Craigmore Sustainables has received permission to buy 479 hectares of sensitive land inland of Waipukurau in Hawke’s Bay and 59 ha near Gisborne. They will invest $52 million to develop apple orchards on the properties. . . 

Mustering tradition continues – Sally Rae:

The likes of helicopters and, latterly, even drones, have replaced horses for mustering on many properties in New Zealand’s back country. But in remote South Westland, traditions remain alive and well, as agribusiness reporter Sally Rae reports. 

Mustering in the remote and beautiful Cascade Valley in South Westland can come with its challenges.

But for Haast-based farmers Maurice and Kathleen Nolan, those challenges were amplified as they prepared for today’s Haast calf sale.

The sale is a major calendar event for the Nolans, a name synonymous with South Westland since the family arrived at Jackson Bay, south of Haast, in 1876. . . 

DairyNZ Schools website launched:

DairyNZ has launched a new website for teachers, giving them free, curriculum-based learning resources to help children learn about dairy farming.

The new website, called DairyNZ Schools, is part of DairyNZ’s in-school education programme. The programme is designed to ensure New Zealand school children get the opportunity to learn about dairying.

Learning resources

The website has learning resources for teachers of children from Year 2 to Year 11. The resources are free to download and teachers can filter resources by year level or subject area. . .

Course closures make farming a tough industry to crack – Esther Taunton:

Young people looking for farm jobs are being hampered by dwindling training options but farmers can help fill the void, Federated Farmers says.

Taranaki teenager Braydon Langton said on Friday he had been turned down by dozens of potential farm employers because of inexperience.

He said it was frustrating to hear farmers repeatedly complaining about a worker shortage but being unwilling to invest time in eager young people.

Chris Lewis, Federated Farmers’ spokesman for tertiary and workplace skills and training, said he sympathised with Langton and other young people in his situation. . . 

Sales of Southland dairy farms down on past years

While there is still a good selection of dairy farms available in Southland, there have only been a limited number of sales in the province compared to previous years, according to the Real Estate Institute of New Zealand.

Despite this, the REINZ said in its March monthly sales data release that two sales in Southland of larger dairy units were significant in terms of total price involved and there was a good level of activity on finishing properties

In Otago, there was restrained activity in the drystock sector where prices eased 10% to 15%, with reports of capital constraints from banks making finance difficult to obtain and therefore harder to get transactions together. . . 


CGT would hit middle hardest

22/02/2019

It there’s such a thing as a fair tax, it’s not one based on misplaced envy as the Tax Working Group’s capital gains tax appears to be.

No photo description available.
Fairness is desirable but not at any cost and  it’s best achieved by helping the poor up not pulling the better-off down, especially when those who will be hit hardest are those with modest investments, not the really wealthy, and worse still, they’d be hit by one of the most penal CGTs in the world:

The Tax Working Group’s report released today proposes a broad-based top rate of 33% capital gains tax (CGT).

The New Zealand Initiative argues in a new policy note, The Pitfalls of CGT, that headline rate would immediately push New Zealand to the top of the international CGT rankings among industrialised economies, just behind Denmark and Finland.

“The proposal is conspicuous by a lack of exemptions and concessions around business investment, so a full rate would arguably qualify New Zealand’s CGT regime as one of the harshest in the world,” said Dr Patrick Carvalho, Research Fellow and author of the note.

“Worse, given New Zealand’s recognisably low-income tax thresholds by international standards, a new CGT would disproportionately hit middle-income earners already struggling to invest for retirement.”

“New Zealand should be cautious about siren calls for a top-ranking CGT. Trying to punch above our weight can sometimes place us in the wrong fight category,” concludes Dr Carvalho.

A good tax would foster investment that would help businesses grow, produce more and employ more.

A good tax would encourage and reward thrift and delayed gratification.

A good tax would improve productivity and promote growth.

The CTG as proposed would do the opposite.

New Zealand needs foreign investment because we don’t have enough of our own capital. The CGT would aggravate that by making investing overseas more attractive than investing domestically:

The Tax Working Group (TWG) proposals released this morning would skew New Zealand investors away from local assets, distort the KiwiSaver market and mangle the portfolio investment entity (PIE) regime if introduced, according to the founder of the country’s largest direct-to-consumer managed fund platform.

Anthony Edmonds, InvestNow founder, said while the TWG final report includes some welcome reforms, overall the capital gains tax (CGT) recommendations would add cost, complexity and confusion to New Zealand’s relatively efficient managed funds market.

“For example, the TWG’s plan to increase tax on New Zealand shares by applying CGT while leaving the fair dividend rate (FDR) tax for offshore shares unchanged would naturally drag capital offshore at the expense of local assets – at a time when New Zealand needs to fund major infrastructure projects,” Edmonds said. “In trying to discourage people from investing in residential property, the TWG has created a tax disincentive for Kiwi shares, which can only distort investment allocation decisions.”

Essentially, the TWG recommendation to tax unrealised capital gains on PIE funds marks a return to the ‘bad old days’ when Kiwis paid more tax on managed funds than direct share investments. . .

Concern over the housing shortage is one of the motivating factors for a CGT but It won’t improve home affordability in the long term:

Bindi Norwell, Chief Executive at REINZ says: “In the short-term there may be some initial relief in house price affordability as investors look to sell their property to avoid paying CGT. This may create opportunities for first home buyers.

“However, in the long term it’s likely to push house prices up as people look to invest more money in the family home, as there will be less incentive to invest in rental properties or other forms of investment e.g. equities.

“This will also have a flow on effect for the rental market with fewer rental properties available for tenants, thereby further pushing up weekly rental prices when they are already at an all-time high.

“The report even recognises that any impact on housing affordability could be small, therefore, we question whether all of the administrative burden and cost to implement GCT is worth it? Especially as CGT coming at the end of a raft of legislative changes the housing market has faced recently including the foreign buyer ban, ban on letting fees, insulation, healthy homes and ring fencing. . .

A tax that results in fewer and more costly rentals and more expensive homes is not a good one.

Nor is a tax that is fatally flawed:

Today’s Tax Working Group report recommendation for a new capital gains tax will not address residential housing affordability but it will penalise business owners and create costly complexity in our tax system, meaning it is fatally flawed, according to Business Central.

“New Zealand’s tax system is envied worldwide. The proposed capital gains tax increases compliance costs without boosting productivity,” says Business Central Chief Executive John Milford.

“Business Central agrees with the conclusions of the minority view on the Tax Working Group.

“A capital gains tax is just another cost on business, nothing more. . .

It would hit small and medium businesses hardest:

Key areas of the Tax Working Group Final Report released today were disappointing, says Canterbury Employers’ Chamber of Commerce Chief Executive Leeann Watson. . . 

Ms Watson says the proposed capital gains rules should not be implemented because of the significant impact on small and medium-sized enterprises (SMEs).

“We support the Government’s review to ensure that our tax system is fit for purpose for a changing business environment. However, there is very real concern that taxing both shares and business assets under a comprehensive capital gains tax regime would create double taxation.

“This could disadvantage New Zealanders owning shares in New Zealand and create inconsistencies around overall taxation on investment.”

Ms Watson says a capital gains tax would be unlikely to achieve the desired outcome for business.

“There is concern around the effect for capital markets in a capital constrained economy with a long-term savings deficit. Adding further tax on the savings and investment of those New Zealanders in the middle-income bracket won’t drive the deepening and broadening of the capital base that we need for business investment, which is higher productivity and wages.

“While the impetus behind the changes are aspirational, there is little to indicate they would significantly reduce overinvestment in housing or increase ‘tax fairness’. In addition, there is concern that additional administration costs and investment distortions could outweigh any benefits and potentially discourage much-needed investment and innovation by locking businesses into current asset holdings.

“It is vitally important that we remain competitive as a country and are not continuing to add further compliance for business and in particular small business, who represent 97% of all businesses in our economy.”

Ms Watson says there needs to be a viable business case for any changes to the current tax system.

“There seems to be a real focus on ‘fairness’ in the system design, as opposed to revenue-building, so we need to be careful that any tax changes are for the right reasons and are backed by a clear, practical and sustainable business case. We currently have a fairly simple and efficient tax system that should be kept and better enforced, with changes to specific rules where needed.” . . 

The costs of a good tax would not outweigh the benefits:

The Employers and Manufacturers Association (EMA) says the key issue in the Tax Working Group’s proposal released today is that the cost of its capital gains tax rules will outweigh any benefits.

Chief executive Brett O’Riley says any gains from such a broad-based capital gains tax would be eaten up by administration and other costs, leaving little revenue.

“Fundamentally the proposed capital gains rules don’t address the Tax Working Group’s objectives of reducing over-investment in housing and increasing tax fairness,” he says.

Mr O’Riley is also concerned that capital gains tax on business assets could discourage investment and innovation, locking businesses into their current asset holdings. He says there are other policy settings that could be changed to increase investment in different asset classes, away from property.

“I also fail to see how taxing growth on the value of assets from the proposed commencement date of 1 April 2021 would work, because it would be open to conflicting valuations,” he says. “It could also act as a further disincentive to growth when New Zealand already has issues with business not growing from SME’s into larger scale operations and a CGT may also limit the availability of capital to reinvest in businesses as smaller businesses face an additional tax bill.

“It’s difficult to see any benefits for the business community from implementing the proposed capital gains tax rules, as taxing both shares and business assets appears to be double taxation,” says Mr O’Riley.

It is relevant to note that a number of the Tax Working Group do not favour its recommendations on capital gains tax. The minority view summary is available here

One reason for dissension was compliance costs:

Former IRD Deputy Commissioner Robin Oliver was one of the 11 in the Tax Working Group.

Along with two others from the group, he believes the costs and bureaucratic red tape involved in adopting all the capital gains options outweigh the benefits.  

“We didn’t agree that this was in the best interest of the country to go the full extent, particularly in the business area, taxing share gains which result in double taxation,” he said.

“To get a valuation for all business assets in all parts business and all business will easily cost over a billion dollars in compliance costs. The amount of revenue you’ll get is relatively minor.”

As for taxing shares, Mr Oliver said it would result in New Zealanders who invest in New Zealand companies paying more tax when foreigners investing in New Zealand companies will pay no more tax. Furthermore, New Zealanders investing in foreign companies will pay no more tax.

“The obvious conclusion is New Zealanders will own less New Zealand companies and more foreign companies, and foreigners will own our companies,” he said. . . 

The proposed tax is no panacea for fairness:

Deloitte tax partner Patrick McCalman warns that a CGT is not a panacea for tax fairness.

“At one level, there is an attractiveness in the argument that a ‘buck is a buck’ and everyone should bear the same tax burden on every dollar earned. However, when one delves into the detail of the design, other issues of fairness emerge,” says Mr McCalman.

“For example, is it fair that property could pass on death without an immediate CGT cost, while gifts made during one’s life would be taxed? For family businesses, wouldn’t it be more productive to be able to pass assets from generation to generation before death,” he says.

“Accordingly, we need to be cautious as to how much ‘fairness’ a CGT will introduce. It may simply change where the ‘unfairness’ is perceived to sit within the tax system, creating new tax exemptions that would distort where investments are made.”

Complicating matters further is the political dimension. And MMP only exacerbates the political difficulty and increases the likelihood of whatever ultimately sees the light of day being less coherent from a policy perspective. . . 

The Deloitte paper raises several questions about fairness:

At one level there is an attractiveness in the argument that a “buck is a buck” and everyone should therefore bear the same tax burden on every dollar earned. However, when one delves into the detail, other issues of fairness emerge including new tax exemptions which would distort where investments are made – in effect, in seeking to create fairness, the proposal creates a number of layers of unfairness. For example:

    • With a CGT applying at full rates with no inflation indexation, is it fair that someone who buys an asset is taxed on the full amount of any gain when part of that gain is simply inflation? How will they be able to re-invest in a new asset if the inflation element is taxed?
    • Is it fair that the family home and artwork are excluded but most other property is not? Consider a plumber who has a $500,000 house and a $500,000 commercial building who would be taxed on the disposal of the commercial building. Should they have instead bought a $1,000,000 house, rented a business premise and enjoyed a tax free capital gain?
    • Is it fair that that investors in New Zealand shares would pay tax on capital gains but investors in foreign shares would continue to be subject (as they are presently) to the 5% FDR rate (even if gains are less or more)?
    • Is it fair that small business (turnover less than $5 million) could sell assets and defer the CGT bill if they reinvest the proceeds, while medium and larger size business cannot?
    • Is it fair that property could pass on death without an immediate CGT cost but gifts made to children during one’s life would be taxed?
    • Is it fair that there are proposed tax reductions for KiwiSaver to compensate for CGT but not for other forms of investment?

At one level, true fairness can only exist if all asset classes and forms of remuneration are subject to the same tax rate. But even then, anomalies will always arise. . . 

The proposed tax would be especially bad for farming and farmers:

Federated Farmers has said from the outset that a capital gains tax is a mangy dog, that will add unacceptably high costs and complexity.

“There is nothing in the Tax Working Group’s final report, released today, that persuades us otherwise,” Feds Vice-President and Commerce spokesperson Andrew Hoggard says.

“A CGT would make our well-regarded tax system more complex, it will impose hefty costs, both in compliance for taxpayers and in administration for Inland Revenue, and it will do little or nothing to ease the housing crisis.”

It is notable that even the members of the working group could not agree on the best way forward, with three deciding a tax on capital gains should only apply to the sale of residential rental properties and the other eight recommending it should be broadened to also include land and buildings, assets, intangible property and shares.

“Federated Farmers believes that the majority on the tax working group have badly under-estimated the complexity and compliance costs of what they’re proposing, and over-estimated the returns.”

The recommended ‘valuation day’ approach to establishing the value of assets, even with a five-year window, will be a feeding frenzy for valuers and tax advisors, “and just the start of the compliance headaches for farmers and other operators of small businesses that are the driving force of the New Zealand society and economy. . .

Farm succession is difficult enough as it is.

A CTG would make it harder still and encourage older farmers to hold on to their farms. That would lead to more absentee ownership and leasing with less investment in improvements as happens in other countries.

New Zealand doesn’t have a lot of many wealthy people and while those relatively few would pay more with the CGT as proposed, if their accountants and lawyers didn’t help them find ways to minimise their liability, they’d still be wealthy.

The many small business owners and more modest investors would not. They’d have the reward for their hard work and thrift cut back and lose enough of the value of their investments to hurt – unless they’d invested in art, cars or yachts which would be exempt.

That sends the message that such luxuries are good while investing in businesses and productive assets is not.

Where’s the fairness in that?


Rural round-up

27/11/2018

Only two left for new Fonterra vote – Hugh Stringleman:

John Nicholls of Canterbury and Jamie Tuuta of Taranaki and Wellington will contest the rerun of the Fonterra director election to fill the one remaining vacancy.

One-term director Ashley Waugh has decided not to run again though he came within a whisker of being re-elected in the first round of voting.

Fonterra Shareholders’ Council chairman Duncan Coull sent an email to all farmer-shareholders explaining the rerun process and the council’s reasons for not opening it up to new candidates.

The rerun was necessary because only two of five candidates for three seats received the required 50% approval of farmers, Peter McBride at 80% and Leonie Guiney at 63%.

Waugh got 49%, Nicholls 44% and Tuuta 40%. . . 

Dairy-farm price per hectare plunges – Sally Rae:

Farm sales across the country for the year to October were down more than 10%, while dairy farm  per-hectare prices have pulled back almost 30% during the past year.

In Otago and Southland, there was strong activity in finishing, grazing and arable properties, but dairy farm purchases in both provinces were affected, with restricted supply of capital.

Real Estate Institute of New Zealand rural spokesman Brian Peacocke said for the three months to October there were 263 sales, just two more than a year ago.

Across the country for the year to October 1475 farms were sold, a 10.5% decline on the same period last year. Dairy farm sales were down 7.7%, grazing farms fell 5.6%, finishing was down 13.2% and there were 22.5% fewer arable farms. . . 

Genetic changes will allow merino sheep come down from the mountains – Heather Chalmers:

Synonymous with the South Island high country, merino sheep may be farmed more widely as farmers are lured by high fine wool prices and genetic improvements. 

Merino woolgrower Bill Sutherland, of Benmore Station near Omarama, said it was boom times for the New Zealand merino industry. 

“In a time when strong wool prices are at a historical low, the prices for merino wool have rarely been better,” he told the New Zealand Grassland Association conference in Twizel.  . . 

New boss hears farmers:

Farmers delivered a stern message to new director-general of primary industries Ray Smith at a meeting in Ashburton on Wednesday – they want to be top of his list.

He attended the meeting, facilitated by Mid Canterbury Federated Farmers in response to desperate calls for help from local farmers affected by the cattle disease Mycoplasma bovi, off his own bat.

Farming leaders from across the country including national dairy chairman Chris Lewis and meat and wool chairman Miles Anderson also attended the closed session.

“This meeting was organised so these national leaders could hear from affected farmers and get their stories straight from the horse’s mouth,” Mid Canterbury dairy chairman Chris Ford said. . . 

Interest in competition suggests promising future for agriculture – Sally Rae:

McKenzie Smith grasps every opportunity to learn new skills.

Mckenzie (17), a year 13 pupil at Southland Girls’ High School, is chairwoman of the school’s TeenAg club.

TeenAg — which comes under the umbrella of New Zealand Young Farmers — is aimed  at introducing and promoting a positive picture of agriculture and agricultural careers to pupils from an early age. The club has organised an AgriKidsNZ competition at Southland Girls’ High School on Thursday, for years 7-8 pupils, and team numbers have more than doubled from last year. . . 

Jersey cows eat differently – Abby Bauer:

Each dairy cattle breed has its perks and its quirks, and Jerseys are no exception. On our Hoard’s Dairyman Farm, we certainly notice differences in personality and behavior between our Jerseys and Guernseys.

These breed differences are what led the American Jersey Cattle Association and National All Jersey Inc. to partner with university and industry experts to create a webinar series focused on the Jersey breed. One of their webinar topics was feeding the lactating cow, and the presenters were Bill Weiss and Maurice Eastridge from The Ohio State University.

The pair of professors pointed out that much of the research in the field of nutrition has been done on Holsteins. While many of these recommendations can fit other breeds, there are a few ways that Jerseys are unique. . .

 


Rural round-up

25/07/2018

Consistent performer helps others – Hugh Stringleman:

The Cookson family are at the true heart of Northland’s beef finishing industry beside State Highway 1 at Kawakawa and consistently producing carcaseweight yield and financial results well above the provincial average. Their pursuit of knowledge from hosting trials and research projects energises the Cooksons and draws hundreds of farmers to their field days. Hugh Stringleman went along.

Former New Zealand Spearfishing champion and international representative Geff Cookson has an impressive record in the water and on the land.

He has hit target after target and inspired many fishers and farmers over a lifetime of sports activities and on the Kawakawa hill country home farm he took over from his father in 1970.. .

Farm sales quiet but resilient – Alan Williams:

The rural real estate market remained resilient through the quiet June trading period, especially for drystock farms even though prices were lower overall.

Despite a positive pricing outlook for most sectors, the Mycoplasma bovis virus is a worry in dairy and beef farming zones and early spring is likely to be a test for the Government and industry animal eradication programme, Real Estate Institute rural spokesman Brian Peacocke said. 

Sales turnover was lower for the three months to the end of June compared to the three months to the end of May, with 32 fewer sales. . .

1080 drop to kill rabbits – Tom Kitchin:

A Manuherikia Valley farmer is making a last-ditch effort to rid his land of rabbits by dropping 1080 for the first time in three decades.

Ophir farmer Sam Leask, who owns the Booth Rd farm, said it was the first time a 1080 drop had been done on  his land in about 30 years.

“The rabbits have just got away … I’ve never seen rabbits like this in my life. It’s just got out to the stage that there’s so many rabbits we have to go back to the old methods. We hate to have to drop 1080 but we have no other choice.”

He had used pindone pellets, and completed shooting day and night but wanted something more effective . .

Mutual aid helps us survive winter – Bryan Gibson:

A mate of mine posted a picture on Instagram last night of the first three calves born on her dairy farm. For her, and for countless other dairy farmers around New Zealand, it has begun.

Calving is an intense period for dairy farmers. There are long hours, late night outings, sleep deprivation and bad weather to contend with. Of course, most farming families also have children to attend to, households to run and cows to milk again.

There were new lambs in the fields on my drive to work this morning too, a reminder this time of year is equally as stressful for sheep and beef farmers who are nurturing this abundance of new life. . .

Grape harvest up; season warmest in decades – Tom Kitchin:

The weather for this year’s Central Otago wine vintage was the warmest since 1956 and tonnage was up, on trend with the rest of the country.

A statement from New Zealand Winegrowers said New Zealand benefited from ”a warm summer” and 419,000 tonnes of grapes were harvested in the country’s vintage this year.

This was up 6% on the 2017 tonnage, but still lower than first anticipated, due to an early start to the season. . .

What are the challenges facing modern farming around the world? – Mary Boote:

Kenya is on the brink of embracing biotechnology in agriculture. On the brink. Now I’m ready to say something new. We’ve been on the brink for too long.”

These words, offered by Gilbert arap Bor, a Kenyan smallholder farmer and lecturer at the Catholic University of East Africa- Eldoret, illustrate the frustration shared by many farmers -smallholder and large across Kenya and much of the African and Asian continents. With the safety of GE crops confirmed and supported by scientists, approved by every regulatory agency around the world, based on thousands of reports and 21 years of data, why does the war regarding the safety of these often life-changing crops continue to rage?

Have no doubt: The impacts of this ‘war’ are real, and they challenge farmers in the developing and developed countries around the world. . .

 


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