Rural round-up

June 17, 2012

Rates gouge farm incomes – Tim Fulton:

Thank goodness export prices are strong because a Beef + Lamb New Zealand report says local authority rates have risen cumulatively by just over 30% over the past five years.

“At an average increase of 6.1% each year it defines the expression ‘inflation busting’,” Federated Farmers local government spokesperson David Rose said when The New Zealand Farmers Weekly showed him B+LNZ’s figures.

The rates insight is part of the Economic Service’s regular survey of on-farm costs, combining data from Statistics New Zealand with its own assessments. . . 

Looking beyond the dollars at Winter Dairy Days:

Helping dairy farmers look ‘beyond the dollars’ at their whole farm system management is the goal of a series of winter dairy workshops being held by the Dairy Women’s Network around New Zealand in June and July.

The five workshops are being held in Winton, Rotorua, Cambridge, Hokitika and Nelson at the end of June and beginning of July and are a great follow on from the Essential Farm Finance days run by the Network earlier in the year.

Ngatea dairy farmer and farm consultant, Julie Pirie, will lead four of the workshops, with Te Anau dairy farmer Anna Kempthorne speaking at the Winton event. . . .

NZ Farming Systems cuts FY guidance as dry weather reduces milk production – Hannah Lynch,

NZ Farming Systems Uruguay, the South American dairy farmer controlled by Singapore’s Olam International, will miss its target to break even on a pretax basis this year after dry weather stunted pasture growth and milk output.

Farming Systems is now forecasting a loss of US$3 million to US$5 million on an earnings before interest and tax basis. The company will break even once it accounts for a fair value adjustment in the value of livestock, it said in a statement.

“Milk production continues to increase significantly year on year, although the very dry summer and autumn weather in Uruguay along with the later-than-expected completion of the new dairies, has resulted in milk production to date being below forecast,” it said. . .

Arable farmers cut back grain in favour of seed crops:

Arable farmers are cutting back on wheat and barley for next season and planting more seed crops in response to falling grain prices.

Growers cut back on seed production last year in response to higher grain prices but increased wheat and barley production and record yields created high stock levels and reduced prices.

Federated Farmers grain and seed chair Ian Mackenzie says the one contract price offered for milling wheat so far has dropped from about $460 to $420 a tonne.

Feed grain contract prices have dropped from about $410 to $360 a tonne.

Water storage scheme ‘vital’ for Hawke’s Bay farmers:

A central Hawke’s Bay farm consultant says farmers regard a proposed $220 million water storage scheme as being a vital step in the economic growth of the region.

Hawke’s Bay Regional Council has this week been hearing submissions on the Ruataniwha scheme, which could provide irrigation to 22,500 hectares of farm land.

Consultant Roy Fraser has visited northern Tasmania where he says farmers have been using water storage for more than 70 years. . . 

Dairy breeding a family tradition – Hugh Stringleman:

Stuart Bay retired on May 31 as chairman of the dairy co-operative LIC, the fourth generation of his family to serve on livestock improvement co-operative boards.

After 37 years of dairy herd improvement governance, perhaps Bay has seen and done it all?

No way. Bay would like his 22 years on the LIC board over again, for a ring-side seat for what he believes are the most exciting years to come in dairy genetics.

LIC is beginning to deliver genomics science, which promises dairy farmers routine gene fingerprinting of their calves, to quickly identify the most productive milkers and their predisposition to faults and diseases.

Trees on farms workshop : maximizing marginal land use:

A Trees on Farms workshop particularly designed for Maori landowners and farmers taking an inter-generational view of their land management options is being held in Ohope on Wednesday 20 June.

This workshop will focus on in the opportunities and benefits trees can provide in developing management for the marginal or less productive parts of the farm, and those attending will be able to discuss tree planting options with Maori land owners, experienced farm foresters and regional council staff.

The workshop and field trip will feature the Ohope property of Ngāti Awa Group Holdings, looking at trees as an intergenerational land management tool providing sustainable agribusiness solutions and enhancing long term land use. . . 


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