HBT Farming Outlook Feature - August 2017

AUGUST 2017

INSIDE Fodder for thought: 6 key ďŹ ndings p7 Growth industry occupies pole position p14 Make sure you get home in one piece p16-17 Riparian planting comes on stream p18-19

Tukituki Plan is HBRC’s first catchment-specific plan, paving the way for land management in Hawke’s Bay. Farm Plans, Nutrient Budgets and Resource Consents Farmers are working closely with Farm Environment Management Plan (FEMP) providers in the Tukituki catchment. The sector is ramping up ahead of next year’s May 2018 deadline, when the new rules kick in.

The beauty of a Farm Plan is that it helps give direction and priority to specific farm tasks, such as nutrient budgeting, stock exclusion and planting.

It would pay to start developing your Farm Plan now, as it will help you to know if you’re likely to need a Resource Consent.

For a full list of Farm Plan providers, head off to hbrc.govt.nz search #FEMP.

0800 108 838 06 835 9200 MORE AT WWW.HBRC.GOVT.NZ, SEARCH #TUKITUKI

Farm Plan Providers These are the Farm Plan providers currently approved by HBRC: Colin Stace colin.stace@opus.co.nz 021 526 030 Peter Taylor peter@thecatalystgroup.co.nz 022 152 9434 Emma Buchanan info@soter.co.nz / 027 438 7055 Christina Finlayson farm.sustainability@ballance.co.nz 0800 222 090 Lilian Sherman lilian@irricon.co.nz 021 378 308 Colin Tyler colin.tyler@ravensdown.co.nz 021 529 146 Lachie Grant lachie.grant@gmail.com 021 526 478

Thursday, August 24, 2017

Hawke's Bay Today

3

AUGUST 2017

FARMING OUTLOOK

She’s a whole lot of country RURAL LIFE with SALLY RAE

Singer brings her show to New Zealand

U

NLIKE MANY of her counterparts, Fanny Lumsden, 30, is a true country girl, brought up on a sheep and cropping farm in western New South Wales.

Born Edwina Margaret Lumsden — she got the nickname Fanny at university and it stuck — she enjoyed a typical rural upbringing: riding horses and helping on the farm after school and during school holidays.

Keen on agriculture, she studied rural science at the University of New England in Armidale and ended up doing an honours degree in wool and sustainability in high fashion.

“Nothing to do with what I’m doing now,” she says, laughing, during a tour of New Zealand. “I loved all the ag stuff but haven’t really used it since.”

Always interested in music, it was towards the end of her tertiary studies that she started writing more music.

Once she finished her studies, she headed to Sydney where she formed a band and increasingly became more immersed in the music scene.

These days, Ms Lumsden and her musician partner Dan Stanley Freeman spend much of their time on the road touring. They have driven 87,000km over the past 14 months, pulling a little, old caravan called Little Millie.

“Most of our life is spent driving or playing shows,” Ms Lumsden said from Christchurch, where she was preparing for shows at Lyttelton and Akaroa.

Last week, she was in the South, playing with singersongwriter Melody Moko at Sherwood in Queenstown on Thursday, Gin and Raspberry in Wanaka on Friday, and at a house concert in Omarama on Saturday.

Her debut record Small Town Big Shot was released in 2015 and it was around that

Often, she and her band are playing in a hall ‘in the middle of a paddock hundreds of kilometres from anywhere’ — and it was that aspect of touring that she loved. time that “everything changed”.

The album was crowdfunded. She had no idea how it was going to go but the response was “unreal”, she said.

It debuted at No 6 on the ARIA chart and was nominated for best country album at the 2016 ARIA awards.

She was thrilled with a review from Rolling Stone magazine that described her as “a breath of fresh country air”, saying she differentiated herself from Australian country peers “with her cleareyed, unvarnished articulation of life in the bush as it is, rather than as it was”.

Ms Lumsden recently announced her sixth annual country halls tour, visiting remote rural communities throughout Australia.

Often, she and her band were playing in a hall “in the middle of a paddock hundreds of kilometres from anywhere” — and it was that aspect of touring that she loved.

She was passionate about taking music to those places.

Not only was it an opportunity to see amazing parts of the country, but also to meet people and hear — and be inspired — by their stories, she said.

Often, shows in those small communities were more suc-

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cessful than in larger centres, although her next tour included gigs in Sydney and Melbourne.

Life, she acknowledged, was crazy. It was tiring but also “awesome”. Sometimes, like the 16-hour drive in one day, it was also a bit much.

But music was what she loved and there was a lot going on at the moment, including a new album coming out and starting her own record label.

As far as future plans, Ms Lumsden wanted to “keep doing what we’re doing” and “just for it to be maybe not so mad” — and keep writing music that she was proud of.

She hoped to tour in Canada, the United Kingdom and United States over the next couple of years. In the meantime, she was looking forward to spending a few days in the middle of her first visit to New Zealand exploring the countryside. ■ — Otago Daily Times

TOTALLY COUNTRY: Country singer Fanny Lumsden with her musical partner Dan Stanley Freeman make a point of performing in remote rural locations.

PHOTO/GETTY IMAGES

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Hawke's Bay Today

Thursday, August 24, 2017

AUGUST 2017

FARMING OUTLOOK How to do your books when busy Monitor your actual vs forecast: Monitor your actual income and expenditure against forecast, and communicate this to your business advisers. Keeping your cashflow budget up to date will help you see what your overdraft needs will be, how they might change and, most importantly, it will give you the information you need when talking to your bank.

3

FINANCES with CAROLYN BUSHELL

Keeping control of your finances during calving period doesn’t have to be difficult

T

HERE are many things to think about on-farm right now, but it’s crucial to keep track of when and where you’re spending money, and how that affects your cash position. By doing so, you’ll be more able to achieve your goals, take advantage of opportunities, rectify unforeseen issues, and feel less stressed.

Profitable farmers tell us they monitor and manage their finances by: ■ Forward planning, which allows them to stay one step ahead ■ Understanding how on-farm decisions affect their financial performance ■ Setting up clear business processes, which means they run as a well-oiled machine and have more time on-farm ■ Communicating regularly with their on-farm team and advisers ■ Making sure they’re on track by reviewing their performance against their plan.

Don’t be intimidated by this

Refresh your budget: Update your budget in line with dairy company milk price announcements so you can assess the impact of changes, and make plans to manage any negative impacts or capture the benefit of any upside. Your dairy company website may provide a payment predictor you can use.

4

list, gaining control of your finances is actually pretty simple. It’s all about managing, monitoring and communicating. We’ve broken it down into five aspects to focus on: Update your cashbook: Set yourself up with a process that is easy and intuitive. If it seems too hard, you’ll be less likely to do it. Ask your chartered accountant which system might work best

1

LET’S TALK

for you, or ask other farmers what they do. If you need to get in touch with a farmer for help, visit dairynz.co.nz/dairyconnect.

Keep records and financial reporting up to date: Does your office set-up and filing system help or hinder you keeping your cashbook up to date? Could you change the way you manage incoming bills and invoices to make this easier?

2

TEMPLATES: DairyNZ has a range of budget templates to suit all business situations — visit dairynz.co.nz/ budgeting.

PHOTO/GETTY IMAGES

Good conversations: Talk to your farm team and advisers about your budget, where you’re at, how things are tracking and any changes or decisions that need to be made. How frequently you do this will depend on your circumstances but it’s wise to do it monthly. ■

5

— Inside Dairy

Carolyn Bushell is a business management specialist for DairyNZ

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Thursday, August 24, 2017

Hawke's Bay Today

5

AUGUST 2017

FARMING OUTLOOK

Healthy herd no fluke LIVESTOCK

Well-kept records, sound written procedures and good advice from her mentoring father have helped Jodie Mexted build a herd that maintains robust health

FARM FACTS ■ LOCATION: Awakaponga, Bay of Plenty ■ FARM SIZE: 140ha effective ■ HERD SIZE: 550 peak ■ PRODUCTION: 520kg milksolids per cow

J

ODIE MEXTED is three seasons into a management position on her family’s Awakaponga, Bay of Plenty property, overseeing 550 cows on 140ha.

She came from a busy hospitality industry background where “getting slammed” is code for an unexpected rush of customers through the door.

That means she can cope well with stress, but she’s also minimised the chaos of springtime through good planning and procedures, which in turn helps ensure her herd is in top condition at the start of lactation.

Over the past three seasons, a key animal health focus for Jodie has been managing mastitis throughout lactation. Despite a comprehensive dry cow policy of using antibiotics on cows with 150,000+ somatic cell count (SCC), and Teatseal on the rest, mastitis was still a problem.

“I found it was that most basic procedure, teat spraying, that really needed to be monitored and standardised to keep teat condition up to standard through lactation, which in turn helps lower mastitis risk.”

To achieve that, Jodie has developed a clear procedure for staff to follow on mixing teat spray, right down to the required quantities of each product in the mix. She also monitors how staff spray teats, emphasising coverage on the easily missed front two quarters. Even the ingredients of branded teat spray formulations come under scrutiny.

“I’ve learned recently that not all ingredients are created equal. This applies to the glycerine too.”

Finding a winning formula has helped Jodie improve teat condition, reducing cracking and uneven surfaces, in turn bringing her herd’s bulk SCC down to about 130,000.

“It is still a bit higher than I’d like, and I would be keen to try and get it lower.”

Jodie takes a tactical approach to teat spray, with the formula adjusted upward in emollient concentration if necessary in muddy conditions, and for the colostrum cows.

She’s also found that pre-calving blood testing has proven its worth in establishing baseline mineral levels in the herd, and saving money on mineral use.

“The tests have shown us the herd is well covered for key minerals, and we’ve been able to cut the amount administered through a Peta dispenser by half from post-mating to drying off. But the cost saving has been a secondary outcome, rather than our main one, which is to try and optimise what the cows are getting,” says Jodie.

She is, however, an ardent supporter of vitamin B12 and selenium dosing. The herd receives four shots a year. The springer mob receives the first shot, with a second at premating, another over summer and one at drying off.

“I’ve found this helps reduce retained foetal membranes, helps maintain their appetite, and contributes to their overall well-being as a preventative,” says Jodie.

This proactive approach to animal health underscores Jodie’s philosophy that the right expenditure is an investment in helping avoid future sickness or failure to grow.

Guided by records Having good records of key events and herd indicators like body scores, drying off dates, and when zinc was

JODIE’S TOP TIPS ■ RECORD any new treatment, procedure or product to monitor its outcome. Use the records as a reference for future treatments, rather than having to relearn the process.

■ CREATE clear written procedures for all animal health treatments so staff members are consistent in their treatment of health issues.

■ PLAN ahead for the highdemand spring period so mundane daily tasks are simple.

That leaves time to focus on more time-consuming, unplanned tasks such as looking after down cows and sick calves.

■ SEEK advice from professionals and talk to other farmers about what they’re doing. Don’t waste time and energy reinventing the wheel.

FOCUS: A key animal health focus for Jodie Mexted has been managing mastitis throughout lactation.

PHOTO/GERHARD EGGER

put into the water is vital for Jodie to understand where health challenges may arise from year to year.

“In many cases I can go back over the previous 10 years’ records to see who did what when. This gives me an idea of how my decision may play out, and how early or late it may be compared to the past.”

She notes which treatments worked, and makes changes to her procedures or policies accordingly.

Jodie attributes much of this feedback loop to her father Michael, who she says has always been a firm believer in investing in cow health, researching options carefully, and looking hard to see if the promise of different products and treatments matches the reality.

She makes a point of being in the farm dairy for morning milkings with staff, treating it as an opportunity to assess, analyse and plan on critical animal health issues.

“It’s never a dull time. I make a lot of decisions early on by being there looking at the cows, ahead of where they need to be.”

Cut guesswork She will compile lists of cows with lighter body conditions scores that may need to go on once-a-day milking, and cows with feet that need trimming. She will also assess overall teat condition.

“It’s also a chance in springtime to decide what cows I will cull, based on their udder confirmation. It’s way harder to spot a splayed udder later in summer than it is in springtime.”

Jodie believes reproductive performance is ultimately linked to animal health and feed levels, so

paying attention to sick or unhealthy cows prevents them from also becoming empty cows.

“So, we have very clear procedures for things like down cows. That includes what product to use and what steps to take on finding her,” says Jodie. “We employ an extra staff member over springtime so everyone has the time to do their jobs properly, including looking after any sick animals. There’s always the risk that the sick down cow becomes the empty cow if you don’t treat her properly.

“All the staff can see the procedures for treatment, and at the start of the season all staff receive a list of their responsibilities. That means no animals get forgotten or left partway through its treatment process, which can happen when people get busy.”

Cows that have a difficult calving are put on once-a-day milking until mating. Jodie does that to reduce their loss of body condition and increase their chances of cycling. She records all these details so she can better understand the history of empty cows.

Jodie makes a point of ensuring her colostrum cows get extra ‘antenatal’ attention to help minimise complications later in the season.

“We just milk them once a day, taking extra time to check for mastitis and ensure they’re fully milked out.

They also receive a special StarterPlus brew with limeflour. Doing it once and doing it right means they get more individual attention.

“We also back-fence them with a portable trough and give them palm kernel. It all helps the cows settle and get into routine with less stress on them and on staff.”

Use vet wisely Jodie is not averse to seeking her vet’s advice but she’s also worked with her staff to ensure they appreciate the cost of a vet callout, and how to get the best value from their animal health professional. “The staff know that if it’s a Friday and there’s a cow not looking too good, it’s better to call the vet then, rather than having to get them out on a Sunday afternoon at extra cost.”

She also keeps an inventory of non-urgent vet cases so when the vet does come, those cases can all be seen at one time, rather than staggered across days or weeks.

Reducing stress on staff goes hand in hand with better animal health. Having good procedures, an extra set of hands, and clear responsibilities means the only uncertainty is the weather, leaving staff with enough time to manage animals as individuals.

Putting in hours well before calving begins helps too. That includes setting up the calf sheds in May, and getting the farm dairy sorted straight after drying off. Staff then get a decent break from calving preparation, which helps them be in a more rested frame of mind when the burst of spring demands arrive.

She urges her staff to attend Dairy Women’s Network workshops and DairyNZ field days over that period.

Jodie attributes advice from farm adviser Tonya Greig for helping her become more proactive in herd health: “She told me not to be a firefighter, but instead get to issues before the fire starts, and that has proven to work well.” ■ — Inside Dairy

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Thursday, August 24, 2017

Hawke's Bay Today

7

AUGUST 2017

FARMING OUTLOOK Fodder for thought: key findings

6

RESEARCH

Catch crops offer some juicy gains but do your homework first

O

VER a six-year period, DairyNZ is investing $450,000 of the farmers’ levy annually in a research programme called Forages for Reduced Nitrate Leaching (FRNL).

Here, we highlight some key discoveries made about catch crops and fodder beet.

In Canterbury, FRNL has been investigating the potential yield and reduced risk of nitrate leaching from using oats as a catch-crop after winter-grazed kale.

We found catch crops can: ■ Reduce soil mineral nitrogen and nitrate (N) leaching by about 30 per cent ■ Increase dry matter (DM) yield on the same land by 6-12t DM/ha annually, depending on the season and sowing date ■ Cut the cost of growing DM by 3c/kg DM. That’s good news but, before sowing a catch crop, farmers should consider whether their farm has reliable summer rain or irrigation for establishment of the next main crop. You should also think about whether it’s possible to get heavy machinery on your paddocks in July or August, or at the latest

before mid-September.

Testing quality In Lincoln, FRNL has been looking for differences in the yield and nutritional value of fodder beet sown from early September to early December, and harvested in June and September.

We found DM yield and nutritional quality of fodder beet was the same in June and September, meaning there was no yield or quality lost by harvesting later. Crops sown

early had higher DM yield because they had more time to grow.

Health effects The effects of fodder beet diets (low in N) on urinary N excretion and cow performance have been evaluated in late lactation and during the nonlactating period.

The results show that, when managed properly, fodder beet can lower animals’ N intakes and urinary N excretion without negatively af-

KEY FUNDINGS FRNL is principally funded by the Ministry of Business, Innovation and Employment, with additional funding from programme-partners DairyNZ, AgResearch, Plant & Food Research, Lincoln University, Foundation for Arable Research and Landcare Research. ■

LEVY: The farmers’ levy is being used to fund research into the animal health effects of fodder beet.

fecting their health and productivity.

Here are some key findings from the research: ■ A diet of 40 per cent fodder beet with autumn saved pasture almost halves the urinary N concentration in a lactating cow.

■ Feeding 40 per cent or less of DM intake as fodder beet to cows in mid to late-lactation reduces their risk of acidosis.

■ Feeding 70 per cent or less of DM intake as fodder beet to non-lactating cows reduces the risk of not meeting their nutritional requirements. ■ — Inside Dairy

For more information on these results, go to dairynz.co.nz/frnl

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AUGUST 2017

FARMING OUTLOOK

■ ARTICLE SUPPLIED BY IRRIGATION NEW ZEALAND

Let’s get to the bottom of this WATER CHARGES

Farmers thirsting for answers about Labour’s water tax

A

CAMPAIGN to get key questions on Labour’s proposed water tax answered is gathering momentum — while the fundamentals remain unclear.

The questions were sent to Labour Party leader Jacinda Ardern on August 11 by nonprofit membership organisation Irrigation New Zealand asking for a confirmed response in writing.

The organisation was prompted to act after a onepage statement issued by Jacinda Ardern announcing the water tax provided very little detail on what the tax would involve. Key questions that have not been addressed include: what is the impact of the tax on ordinary New Zealanders; what it will cost; who will it apply to; and how it might be implemented?

Irrigation NZ has also taken their questions to social media where it is generating lively debate, with two Facebook posts pressing for answers seeing more than 12,500 people interacting with the posts.

Comments include questions on why the proposed tax won’t be applied to businesses using town water, given the latest Ministry of the Environment report says urban rivers are generally more polluted than rural ones. Another is why have hydro power generators been let off the hook, given they are commercial users of water that make healthy profits, much of which ends up offshore.

Rate uncertain Since Jacinda Ardern’s announcement on August 9, Labour’s Environment spokesman David Parker has reportedly quoted significantly different figures for what the tax would cost, from ‘less than $500 million’, to $100m*. Confusingly, Parker quoted the lower figure of $100m based on a higher tax

Ultimately the water tax will increase the cost of production, with a knock-on effect for New Zealanders and on the country’s international competitiveness. rate of 2 cents per 1000 litres, as opposed to the 1c per 1000 litres he calculated the ‘less than half a billion’ figure on.

Calculator To assist Labour and others interested in the water tax debate, Irrigation NZ has published a calculator based on water use to better understand the impact of the tax on irrigators, sectors and regions.

Users can plug in a cents per 1000 litres cost and a volume to see the impact of the tax.

The calculator can be downloaded as an excel spreadsheet — go to http:/ /irrigationnz.co.nz/news/advo-

cacy/watertax/.

Another unanswered question, however, is if the rate will be calculated on a water use or the maximum water allocated to users through a consent.

Water allocations are not always fully used due to NZ’s variable climate — wet and dry years.

Irrigation NZ CEO Andrew Curtis said: “It’s clear from the wildly different figures quoted

by Labour since their initial announcement — from $500m, to $100m — that Labour does not understand the impact of this tax and they have scant grasp of the detail on how it will be applied.

“New Zealanders deserve

answers on the water tax. We are asking the questions, but so far Labour is not answering.

We’re asking not only on behalf of our members, who contribute $5.5 billion to New Zealand’s economy annually, but on behalf of every New Zealander who will be impacted by this tax.

“Ultimately the water tax will increase the cost of production, with a knock-on effect for New Zealanders and on the country’s international competitiveness.

“Farmers who are already spending billions upgrading irrigation infrastructure, complying with environmental legislation and upgrading the health of their rivers and lakes will have less to spend.

“Given the complexities of applying a water tax, the money raised will inevitably be chewed up on administering it.

“A blanket water tax is not the answer.” ■

TAX: Non-profit membership organisation Irrigation New Zealand has taken questions about the water tax to social media.

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Hawke's Bay Today

Thursday, August 24, 2017

AUGUST 2017

FARMING OUTLOOK AFTERMATH with PAUL DYKES

Farmers are far from over the deluge wrought

by Cyclone Debbie

T

HE NEWS HAS moved on from the flooding that swamped Edgecumbe and the Hauraki Plains during Cyclone Debbie in April, but little has returned to normal for hundreds of farmers who bore the brunt of the onslaught.

Given the constant media diet we live on, perhaps it is excusable that many of us have since found new images to take our attention; our concerns for the flood victims now little more than a righteous memory.

But hundreds of families are still struggling towards recovery, with paddocks and fences ruined, winter feed destroyed and access routes into some farm areas still unusable.

Sandy Scarrow, chairwoman of the Bay of Plenty Rural Support Trust, says the public has generally forgotten that the flooding was so widespread and the impacts were especially significant because the rain fell onto already-saturated soils.

“Some farmers are involved in calving now yet they are not even back in their own homes. Calving is a 24/7 activity, with the calves needing constant monitoring, which is especially hard if you are not able to live on your farm.”

She says the impact of the unrelenting wetness is much worse than in previous floods. “The costs are huge, and ongoing. We estimate the initial cost for the worst affected

A flood of

SWAMPED: Self-evacuated homes in Tramline Rd, near the Piako River on the Hauraki Plains.

farmers was around $4 million with money needed to shift cattle, buy in feed and also the lost production as affected farmers have dried off cows six weeks early.”

Two maize growers have not been able to harvest 500ha of crops, thereby losing a full season’s income.

Two kiwifruit growers have started

RELIEF

removing vines because the root systems have not coped with the wetness. One farmer has replanted his pastures twice since the flood, without any success, she says. Overall, an estimated 93ha of riverside land has been washed away for good.

“These farmers have complex needs, including housing, health,

farm production, financial stress and simple overload. We are trying to ensure people are looking after themselves.

“We were able to shift out 5700 cattle in the first few days after the flood. Other farmers volunteered to

■ Continued p11

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Thursday, August 24, 2017

Hawke's Bay Today

11

AUGUST 2017

FARMING OUTLOOK ■ Continued from p10 take them, without question.”

The Rural Support Trust also helped distribute a $200,000 Ministry for Primary Industries (MPI) relief grant, given out once the flood was classified as a Medium Adverse Event. Sandy estimates this will be less than 2 per cent of the overall costs. The Rural Support Trust is lobbying the government for a topup to this grant.

The MPI classification triggers a range of recovery assistance packages, including Task Force Green teams to help with the cleanup, rural assistance payments for extreme hardship to help with rural families’ essential living costs, tax flexibility and financial support via Work and Income to farmers whose incomes have changed.

Darryl Jensen, Federated Farmers provincial president in the Bay of Plenty, said dairy farmers were just starting to get back on their feet financially after two years of low payouts when the floods hit.

“The biggest concern is the emotional and mental wellness of people — especially those who have not previously experienced such an event. The area affected is huge, and we are still getting rain on rain.

The sodden pastures will have a slower recovery.

“There are still 41 rural properties [in the Bay of Plenty] that are yellow stickered — people can’t live in those homes. There’s another 141 in Edgecumbe township. Fonterra’s factory staff have been affected.”

There won’t be any going back for some farmers. The water table has changed and is higher in some

Some farmers are involved in calving now yet they are not even back in their own homes.

places. Some horticulturists on the plains are pulling out kiwifruit vines and long-established avocado trees because of sodden roots. It will take about six years for new avocado plantings to fruit, if planting stock is available immediately.

Record river flows It is a similar story for the Matamata-Piako and Hauraki Plains farmers caught up in the same weather event. The Waihou and Piako rivers reached record height levels and record flows, which continued for several days.

Although Waikato Regional Council flood protection measures performed well, there was extensive surface flooding and ponding in unexpected areas.

Hauraki District mayor John Tregidga says farms bordering the

Kopuatai Peat Dome in Patetonga, Kaihere, Springdale and Otway areas haven’t experienced this type of ponding in the past.

Waikato Regional Council (WRC) advised that overtopping of stopbanks in the area, and the spilling of water to ponding areas, was part of the way the flood management scheme in the area was designed to operate. However, many people were now asking questions about potential improvements to the Piako River Flood Scheme managed by WRC. The scheme is currently in its normal review cycle, but following the April flooding WRC is working to produce a special report into what happened that it will then discuss at a series of open days.

Now in recovery mode, the Waikato Civil Defence Group is working to co-ordinate agencies that can

AWASH: Rangitaiki River overwhelms Kopuriki Rd — and surrounding farmland — near Murupara in April 2017.

provide assistance. These include MPI and Ministry of Social Development (MSD) which are working with Rural Support Trust and Task Force Green to supply crews for clean-up work. Federated Farmers has also put its hand up to assist farmers in need of feed or grazing.

It’s been working with its members to source discounted and donated feed across the North Island. Rural Women New Zealand also has $1000 grants available for farmers in need. The WRC is keen to spread the word support is available for those who need it.

In July, the economic and social impact of the events were still real.

MPI intended to have a full economic impact report into the effect on farmers ready within the next few months. Estimates at this stage across the Waikato indicate about five farms suffered greater than $200,000 in loss of production, while about 30 farms suffered less than $100,000 loss of production.

Anyone needing help on the farm should contact Federated Farmers on 0800 327 646. They can also help with stock movements and feed.

Rural Support Trusts have local people trained to offer assistance and support, and their help is free and confidential. Call 0800 RURAL HELP (0800 787 254) or visit www.rural-support.org.nz. ■

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12

Hawke's Bay Today

Thursday, August 24, 2017

AUGUST 2017

FARMING OUTLOOK Carbon budgets offer ‘certainty’ CLIMATE with D TIM MACKLE

An ability to plan ahead will enable dairy farmers to be part of the solution

AIRYNZ welcomes the release of a report by the Parliamentary Commissioner for the Environment, which recommends New Zealand approach climate change in a similar manner to the United Kingdom.

Dr Jan Wright recommends the Government set up an independent Climate Change Commission to propose carbon budgets as stepping stones towards meeting greenhouse gas targets, which would provide certainty and transparency about how New Zealand climate change targets will be met.

We support the development of an economy wide plan that outlines the expectations of each sector. The dairy sector has been at a point of flux — and we know we must be part of the solution.

We recognise the dairy sector’s

responsibility to contribute to reduction targets, but we are currently operating within an environment that provides no clear pathway for dairy to move towards a low emission future.

The approach recommended by Dr Wright provides a transparent process which would provide greater certainty to dairy.

The setting of carbon budgets for five year periods would will allow the dairy sector and farmers to plan over the longer term how they will reduce their emissions. However, this is a complex challenge which requires a well thought out approach.

This report provides a good platform to start discussions on what the appropriate framework is for providing certainty and clarity on how the dairy industry and the wider economy will contribute to New Zealand’s greenhouse gas reduction targets.

It is important to remember that as a food producing nation New Zealand has a very different greenhouse gas profile to the United Kingdom, where only 8 per cent of emissions are agricultural. As almost half our emissions are from agriculture, we face a far greater challenge to meet future targets.

While our dairy sector is one of the most emissions efficient producers in the world, we know more action is required to address our emissions over the longer term.

We launched the Dairy Action Plan for Climate Change in June which, in partnership with the Government and Fonterra, aims to increase education and awareness of mitigation options for farmers, and the Biological Emissions Reference Group which looks to ensure we have the right science in place to look at what can be done to reduce emissions. ■ — NZME

Dr Tim Mackle is chief executive officer of DairyNZ

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AUGUST 2017

FARMING OUTLOOK Cloud based software a helpful tool FINANCE

Real time data lets farmers know exactly where the farming operation stands

A

S FARMERS gear up for what are typically their busy months with lambing, docking, calving and cropping, it is understandable that things such as tax matters, expense claims and forecasting all start to move further down the priority list.

Most would have already sent in their 2017 records to their accountants; and as the old saying goes ‘out of sight, out of mind . . . ’ However, with the continued development of cloud based accounting software such as Xero teamed with the specially designed industry specific features of Figured, real-time accurate data is now more readily available than ever before.

Figured is a cloud-based farm financial management solution that gives farmers and their team the information needed to make informed, future-focused farming decisions. Gone are the days of manual spreadsheets and shoe boxes filled with receipts.

Figured’s production planning and farm budgeting tools work seamlessly with Xero, enabling you to confidently plan and re-forecast using realtime information when conditions (such as weather or

stock levels) change.

As Bronze Figured Partners, we at BDO understand the importance of having all your financial and livestock information in the cloud to enable easy collaboration with your accountants and bankers in real time. With better financial insight, you can better manage sustainable profitability for the future success of your farm.

“As accountants, we’ve seen first-hand the significant benefits for our farming clients who have made the move to Xero

and Figured,” says Agribusiness partner Glenn Fan-Robertson. “From our perspective, a lot of this success comes from being able to offer our clients advice and insights using this real time data and presenting this in a medium that they are familiar with. It better enables us to offer the guidance they may need to ensure their business is performing and producing at a high level year round.”

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you’ll know exactly where the farming operation stands — and where it’s heading. And because it is all cloud based, it can be accessed anywhere, anytime. You can be out on the back block (provided you have cellphone reception and data) can access and update your stock numbers then and there!

Live feeds from leading agricultural providers such as Fonterra RD1, PGG Wrightson and Farmlands Co-operative means that transactions are automatically imported to your Xero for coding — ensuring you can spend more time using the data rather than entering it.

Figured with Xero addresses the specific needs of farmers — having the cash, tax, stock reconciliation and equity functions live together in the same world, providing you with overall figures and data for the farm as a whole while providing you with the ability to dig down deeper into the specifics. This removes the ongoing struggle with stock reconciliation, rolling profit forecasting and benchmarking.

If you believe your farm could benefit from Figured, contact our Agribusiness specialist, Glenn Fan-Robertson, to organise a free consultation on 06 835 3364 or visit www.bdo.nz.. ■ — Contributed by accountancy firm BDO

14

Hawke's Bay Today

Thursday, August 24, 2017

AUGUST 2017

FARMING OUTLOOK Growth industry occupies

PHOTOS/FILE

POLE POSITION

FORESTRY with PAUL DYKES

Why investing in pines makes sense across the board

T

HERE ARE LOTS of reasons to like on-farm forestry at the moment. It is making good money for harvesters, the market is strong, it’s doing its bit for the climate and it is another income stream for farmers seeking the income protection possible through diversification.

It can record a better dollar-perhectare return than most other uses of agricultural land – especially in hill country – and the export market to China is being helped right now by lower shipping costs and a favourable NZ dollar currency rate.

The demand is not just for logs.

New applications for felled product are opening up new opportunities.

The current building boom across the country is diverting product as well.

However, these figures reflect the efforts made by growers 25 to 30 years ago and there is some concern that not enough planting is

taking place to maintain the scale of the industry.

New Zealand had about 1.84 million hectares of planted forests in 2006, but this figure has since declined by 3 per cent, according to New Zealand Forest Portal, an online site developed by the New Zealand Forest Research Institute (Scion) for the New Zealand Forest Owners Association.

In its monthly Agri Focus report, ANZ Bank points out that despite this positive outlook, the overall plantation area has declined 5 per cent in the past 10 years.

It says such levels of deforestation are leading many industry participants to worry about the long-term supply of wood beyond 2030. This in turn is influencing investment decisions further along the supply chain in new woodprocessing facilities that produce higher-margin products.

Big export earner ANZ argues that recent returns should encourage replanting. Prices received in the past 12 months suggest forests that were good-toexcellent in quality/yield and were located within 200km of a port and/ or mill had an average pre-tax real rate of return (excluding carbon revenue) of 6.3 per cent, with a

Already, our plantation forests lock up, each year, more than half the carbon the whole of New Zealand agriculture produces. So, the forests are a substantial carbon sink. range from 4.4 to 7.9 per cent.

When carbon revenue is included, the average pre-tax real rate of return lifts to 9.9 per cent, the bank states, with a range of 8.3 to 11.25 per cent.

According to ANZ, the forestry sector is an important part of New Zealand’s economic and environmental landscape. In economic terms it generates about $5 billion of annual gross income, or 3 per cent of GDP each year.

It is one of New Zealand’s largest export earners, says the bank, bringing in $5.3 billion worth of foreign earnings each year (11 per cent of total 2016 exports).

Murray Downs from the New Zealand Farm Forestry Association was at the National Fieldays to get a similar message across to farmers.

He quoted figures for radiata pine that suggested an exceptional good current return of $56,000 per hectare after 24 years.

“That’s $2337 per hectare per year from on-farm forestry. Sheep

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farming returns about $1000 per hectare and dairy can get up to $2300 in a good season.”

He says these figures include all associated harvesting costs, but not the initial planting, which costs about $1500/ha at present (including the plant stock). The trees require pruning three times by age 7 years and typically reach 6 metres at 24 years. Harvesting usually takes place after 28 years.

Carbon sink Murray says there is the carbon offset aspect to consider as well.

Farmers can build enough carbon credits to enable them to run a selfsustaining operation.

“One pine tree at 20 years is equal to one sheep [in carbon offset terms],” he says by way of illustration. “On the average 600 ha farm, you could offset 450 cows by planting 2ha a year.”

■ Continued p15

Thursday, August 24, 2017

Hawke's Bay Today

15

AUGUST 2017

FARMING OUTLOOK

SITE SELECTION ■ Wet feet and fluctuating water tables can lead to toppling and root rot ■ On high-fertility sites, especially high N (nitrogen) sites, trees will have poorer form, larger branches, and lower density wood

Radiata pine is a very site-tolerant species, but limitations include these:

■ Humid, sheltered inland sites can have problems with fungal disease

■ Continued from p14 On-farm forestry is also seen as a major contributor to the country’s Paris commitment to reduce net emissions by 30 per cent below 2005 levels by 2030.

According to Peter Clark, the Forest Owners Association president, planting new forests is the only technology currently known and implementable on a large scale that has the capacity to remove large amounts of carbon dioxide from the atmosphere.

Quoting a recent Vivid Economics report that called for a doubling of forestry planting, Peter says the time to start acting on sequestering carbon out of the atmosphere, by

using trees, is now.

He was critical of the government’s timetable, with the Productivity Commission to report back in June 2018 with recommendations for achieving a lowercarbon economy.

“I agree, it might make sense for the government to take time to carefully work out a process to bring agriculture into the Emissions Trading Scheme, for instance.

“But if you want to lock up carbon dioxide that is already in the atmosphere, there is only one option. It’s a no-brainer. It doesn’t need a year to think about it. The answer is to get on and help get more trees planted.

“Already, our plantation forests lock up, each year, more than half the carbon the whole of New Zealand agriculture produces. So, the forests are a substantial carbon sink.

“As it is, if there is going to be any meaningful expansion of planting, then it’ll take another year to build up seedling capacity, which will result in planting out in 2019.

“In the 1990s there was nearly 100,000 hectares a year of new plantings.

“We certainly wouldn’t get to that level again for many years, but we do need to make a start now to build up from a static, or even slightly declining, national forest area.” ■

■ Consolidated and impervious subsoils, such as papa, can cause rooting problems on some skeletal hill country soils ■ The most serious trace element deficiency is boron in the East Coast of both islands, especially the drier parts ■ Tree form will be better on moderately sheltered and somewhat shady sites, than sites exposed to full wind and sun ■ The best sites for growing good-quality trees are lower fertility, well-drained sites, without full exposure to wind.

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Hawke's Bay Today

Thursday, August 24, 2017

AUGUST 2017

FARMING OUTLOOK

Make sure you get home in HEALTH & SAFETY with

What makes these figures all the more poignant is that almost all agricultural accidents are entirely avoidable.

PAUL DYKES

220,000 work days are lost annually due to farm-related injuries

B

ASED on reported statistics, New Zealand farms are not safe places to work and live. In a typical year, six or seven farmers or farm workers are killed while using a tractor or its associated machinery.

Quad bikes are a factor in 25 per cent of other on-farm fatalities, with at least two people a day requiring medical attention after using them.

Two people may not sound many, but that’s 730 or so each year.

Add in all the other on-farm incidents and accidents that are reported, or not reported, and it becomes clear that farming is a higher risk activity than it should be.

For every hour lost because of injury or ill-health, productivity suffers and profitability is reduced.

On a personal level, people’s lives are upset and their family income threatened. That’s why WorkSafe New Zealand, ACC and SaferFarms are united in promoting the Health and Safety at Work Act 2015 (HSWA), which came into effect just over a year ago.

— Al McCone WorkSafe NZ

WHAT YOU HAVE TO DO ■ Be able to show you are managing your work risks ■ Identify and manage health and safety risks to people in your workplace ■ Monitor the health of workers and workplace conditions to prevent illness and injury ■ Include workers and family in planning to make the farm healthy and safe ■ Train and supervise people who work in the business ■ Make sure workers and family know how to manage risks ■ Keep a record of notifiable events

According to SaferFarms, 220,000 work days are lost annually due to farm-related injuries.

WorkSafe’s April 2012-March 2015 farm sector analysis shows farm assistants, labourers and agricultural workers are more likely to suffer injuries at work than selfemployed people.

The recently released data show that for every 1000 employees in the agricultural sector, 20 suffered an injury requiring more than a week

off work, compared with 12 out of every 1000-self-employed individuals (typically, the farmer).

WorkSafe agriculture sector lead Al McCone said the data underlined the importance of farmers talking with everyone who works on the farm — employees, contractors, and family — to ensure they are aware of risks on the farm and the best ways to manage them.

■ Continued p17

■ Have procedures for dealing with workplace emergencies ■ Have safe and healthy facilities for workers ■ Make sure machinery and systems are safe for workers to use ■ Provide and make sure personal protective equipment is used where appropriate.

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Thursday, August 24, 2017

Hawke's Bay Today

17

AUGUST 2017

FARMING OUTLOOK

one piece ■ Continued from p16 “A simple way to change the culture positively is to get workers more involved with farm decisions around health and safety.

“It’s the workers who are out there in the paddock or shed seeing first-hand the conditions and potential risks.”

Men more prone Even taking into account that there are far more males than females working in the sector, men are statistically more than twice as likely than females to suffer injuries.

It is possible that employees have a higher serious accident because they undertake more highrisk physical activities and tend to be younger and less experienced.

“The most common external factor involved in injury for both genders is live cattle, followed by ground/path, almost certainly related to slips, trips and falls,” Mr McCone says.

“Females, however, are more likely than males to be injured by livestock, in comparison to other factors. Males are more likely to be injured by vehicles, in comparison to other factors, than females.

“What makes these figures all the more poignant is that almost all agricultural accidents are entirely

avoidable. By thinking through or talking through beforehand how you will manage the risks involved in a task, even one you have done many times before, you will be better prepared for it.

“It might be that you decide the quad bike isn’t the best vehicle for towing spraying equipment, it might be that you take time to share good practice for dealing with stock, or in assessing whether it’s best to drag or carry when a hillside is slippery from rain or snow. It’s just a few minutes of planning, but it could make all the difference between you or one of your team making a good decision or a poor one.

“This isn’t a one-off thing. It’s a good idea for farmers to have regular conversations with everyone on the farm about this. Risks such as handling large animals, visitors’ vehicles and large machinery will always be there, and need to be continually re-assessed and addressed.

“Then there are risks that change daily due to variables such as weather conditions or different seasonal work. It might have been safe to take the farm bike up that hill yesterday when it was dry, but it may not be today if the grass is wet.”

In 2015, there were 2364 injuries requiring a week away from work (previously referred to as “severe”).

Of these, 1200 were in dairying. In 2016, there were 2234 injuries requiring a week away from work, and of these, 1083 were in dairying.

“So far this year, there have been eight workplace deaths in the agriculture sector — these cases specifically involved machinery and vehicles. Vehicle and machinery incidents, handling animals and falls regularly feature every year in farm injury statistics.

“Farmers must pay attention to these critical risks, as these recent deaths have been caused by the same types of issues that have been killing and injuring New Zealand agricultural workers for years. The first step is to acknowledge that

such incidents are preventable and to put in place good risk management practices to mitigate the risks that cause them.”

As to why the injury rate in agriculture wasn’t declining, WorkSafe chief executive Nicole Rosie says research suggests that experience is not correlated to risk.

“Farmers do the same things year after year, but they lose mobility and strength and their reaction times get longer.”

WorkSafe and ACC have prepared a range of free guides for use on farms and orchards that set out the best way to identify, manage and communicate health and safety risks to family and workers. ■

SAFE MOVES: Massey University vet students get the low-down on riding a quad bike safely at Taratahi Agricultural Training Centre.

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18

Hawke's Bay Today

Thursday, August 24, 2017

AUGUST 2017

FARMING OUTLOOK

Riparian planting comes on WATERWAYS with PAUL DYKES

NIWA hopes to cool things down

F

ARMERS CAN literally take some of the heat out the nutrient run-off contamination issue by fencing off and planting alongside their waterways.

According to NIWA, the shade provided by riparian planting can keep the waterway cooler in summer, thereby mitigating some of the impact of farming.

John Quinn, NIWA’s chief scientist, took this message to the Fieldays, stressing that the full effects of such plantings could take several years to become apparent.

“In the first few years, there is not much happening.

With a stream about three metres wide you would start to get the shade effect after three to four years,” says John. “After five to seven years the shading could drop the water temperature in the stream by three to five degrees [Celsius].”

Farmers can mitigate a lot of the impact of farming by controlling the amount of light getting into the stream.

ALL THE WAY TO THE BANK: Hundreds of plants are placed on both banks of a stream ahead of planting.

This is important, says John, because temperature is a key driver of run-away plant growth in waterways.

“Excessive plant growth is because of nutrient run-off and sunlight. A shady stream won’t get the algae response that drives changes in habitat.

“Farmers can mitigate a lot of the impact of farming by controlling the amount of light getting into the stream.”

The vegetation is also useful to filter the run-off that is trying to get into the stream, added John.

“In the past 15 years there has been a huge improvement [in waterways protection].

HEADS DOWN: Volunteers band together to help plant up a riparian strip.

Farmers in the Waikato have fenced off about 90 per cent of streams wider than a stride.

“On dry stock farms a lot less has been done, but the change has been led by the industry – there is still a long way to go, and it is good to see moves in the right direction.”

John says NIWA and various regional council are monitoring about 1000 sites to detect trends in contamination.

“More sites had positive trends for contaminants, [exhibiting] better water clarity, because of reduced dissolved reactive phosphorus,

■ Continued p19

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Thursday, August 24, 2017

Hawke's Bay Today

19

AUGUST 2017

FARMING OUTLOOK

stream

■ Continued from p18 ammonia and E.coli.

“Other sites are getting worse for nitrogen [N], which goes through the ground water.”

He says plants can take up N into their biomass at the land/water interface.

Trials using woodchip filters had helped the denitrification process as the microbes in the woodchip use oxygen in the N compound, eventually releasing the unwanted N as a gas.

“We are trialling this on a 9ha block in Southland: 10 by 10 metres to a depth of half a metre. We are losing almost all of the N before it gets into the drain.”

The study is also using lime and crushed oyster shells as a filter of phosphorus.

“It depends on the soils too.

Some have greater N-binding attributes. You could spread it back onto the farm.”

When deciding what to plant, choose local wherever possible, says John. The local regional council will be able to advise what to plant, matched to the land form and wetness.

These can be productive riparian buffers. You could take hay in the summer, and leave them as a filter in the wet. You could get firewood, or plant manuka for honey.

Stabilise the banks, and use sedges, trees and grasses as filters on the other side.

“These can be productive riparian buffers. You could take hay in the summer, and leave them as a filter in the wet. You could get firewood, or plant manuka for honey.”

Farmers should actively manage the plantings to remove sequestered carbon from the system.

He says shading out drains and streams can also make them faster running and increase their drainage capacity. ■

BIODIVERSITY: Part of the life of a healthy waterway, an adult caddisfly Olinga jeanae and its larva Pycnocentrodes aureolus (inset).

Habitat gains flow on NIWA freshwater biologist Brian Smith manned the Fieldays booth to explain how riparian planting can boost insect life.

While such plantings can reduce sediment and provide cooling shade, another key benefit is that they create a habitat and a food source for insects.

Helped by an on-site aquarium that mimicked stream conditions, Brian identified mayflies, caddisflies and stoneflies in his display.

He says the plantings not only provide shade to the stream, but when leaf litter and sticks fall into the water they provide important habitat for native fish and aquatic insect larvae. Microorganisms then colonise the sticks and leaves, making them more palatable for larvae to eat, and break down into smaller pieces for even smaller larvae to eat.

Aquatic insects are essentially recycling the sticks and leaves.

“People aren’t really aware of what’s in their streams, so if we can show them the neat freshwater insects and

invertebrates that also live there. It’s something they can see in action and get excited about,” says Brian.

There was a tendency to focus on habitats in the streams when restoring waterways, but he is keen to raise awareness about the flow-on effects of planting trees alongside streams.

“These trees will shade the stream and cool the water temperature, but they also provide habitats for all these other animals that are dependent on insects coming out of the water as a food source.

“We also know from our research that it’s important to have rocks that stick out of the water. The adult stage of most aquatic insects are terrestrial and many species need to land on these rocks, using them as an access point into the water where they lay their eggs.

“It’s all about making people aware of these features. I want to pass on the excitement of picking up a rock in a stream and realising that it’s not just a rock, it serves a purpose.”

Brian is a caddisfly expert

who goes by the Twitter handle of @thecaddisflyguy. “Adult caddisflies can be a bit dull and drab and not particularly active during the day, but all of the 250-plus species are native to New Zealand.”

Caddisflies play a large role in determining stream health and there is ongoing research into what it takes to ensure not only adult caddisflies, but other aquatic insects such as mayflies and stoneflies, are also catered for in stream restoration projects, particularly egg-laying females.

“If they’re not, the restoration of the stream’s biodiversity may take longer than we would like it. You need diversity, a healthy stream has a high diversity of aquatic organisms — it’s not just about restoring a stream, but an ecosystem.”

NIWA scientists want to hear from farmers who have fenced and planted stream banks to create riparian buffers in a bid to learn more about their hard work. Farmers can record their riparian strip at the website, riparian.niwa.co.nz ■

Riparian planting restores insect life

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Bayleys Rural Insight is your go-to guide for regular, informative commentary on key matters affecting those living and working in rural New Zealand.

With New Zealand’s economic fundamentals and commodity markets ever changing, we take a look at how this can impact the rural sector as well as the effect it may have on rural and lifestyle property. Every fortnight a new Rural Insight is released focusing on the different sectors of the rural market including dairy, sheep and beef, viticulture, and horticulture.

In addition, we investigate issues relevant to those pursuing their lifestyle property dream.

Here’s a taste of some of our recent topics of interest…

CALF REARING COMES WITH CAVEATS With the beef schedule sitting at near record highs and good prospects ahead for that continuing amid tight global beef supplies, rearing calves for the store market may be an option for small block holders over late winter-early spring. But as appealing as rearing a few calves can seem, experienced animal health and farming experts caution it pays to do some homework before embarking on what can be the riskiest end of the livestock supply chain.

AGRI-TOURISM BRINGING A BOOST TO FARM INCOME While the pastoral sector collectively dominates New Zealand’s export earnings, tourism is charging hard on its heels and some farmers have found ways to combine the two to enjoy the best of both sectors’ success. With many New Zealand farmers enjoying ‘office’ views that many would only dream about, it has proven a natural step to open that view up to visitors who will gladly pay to share with them.

SUBDIVISION OPENS UP FARM EQUITY OPTIONS Subdividing part of the family farm may be a valuable and unconsidered option for farming families wanting to unlock some of their farm’s capital value, without selling the entire farm to do so. Bayleys former national country manager Simon Anderson said the appeal of subdivision has never been stronger when put in context of an extremely buoyant rural lifestyle market nationally.

WINE COUNTRY OFFERS OPTIONS FOR LAND INVESTMENT As the New Zealand wine industry goes from strength to strength, the property sector is reporting strong interest from investors keen to participate in the sector’s continuing good fortune. New Zealand wine exports reached a new high last year, with Wine New Zealand reporting a 14% lift over 2014 earnings, taking the industry’s total export income to $1.54 billion, making it the country’s sixth largest income earner.

Read the full articles online now at bayleys.co.nz/rural-insight

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