National farming review feb 2013 by NZME.

FEBRUARY 2013

Federated Farmers members honoured

P23

NATIONAL POLICY Farmer confidence Heading up and down, depending on the sector

Tackling depression The Federation takes a stand against a real rural issue P5

REGIONAL POLICY Dam right The arguments against the Hawke’s Bay water storage project don’t hold up P8

Provincial spotlight Wairarapa must choose wisely on its council amalgamation dilemma P8

INDUSTRY GROUPS Meat & Fibre Collaboration and co-operation could help the meat and fibre sectors P15

Dairy Sharemilking; opportunities galore

Trade deals critical

Kiwis take advantage of global growth — p10

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National Farming Review February 2013

www.fedfarm.org.nz Ph 0800 327 646

PERSPECTIVE

Water: Too little, too much!

INSIDE Feature:

Kiwi trade in a global market 10

Regulars: Perspective . .

National Policy

3-6

Counterpoint

Regional Policy

8-9

Employment

Weather

Economy

Meat and Fibre

Dairy

17,18 17

Other Industry Groups Insider . .

A trip south took Bruce Wills from dry country hills to a wet and wonderful north-west of the South Island. Recent weeks for me have been a break from regular Wellington trips, allowing more time with family and farming. For a Hawke’s Bay hill country farmer this time of year is largely about sheep — shearing, weaning, dagging, dipping, drenching and drafting. These involve time in yards and hours behind mobs of sheep, which means dry heat and clouds of dust. We are back to a typical east coast summer — not enough rain, parched hillsides, drafting earlier to keep mouths off browning pastures and dust. Some of our paddocks now have no water and farm tanks are low. In Hawke’s Bay these conditions are usual, so we are not talking drought, yet, but a good, wet easterly would be very welcome. This year, for a change, I went in search of water. The great thing about this wonderful country of ours is, after very few hours travel, I was in such heavy rain, it came with a weather warning. Some months ago two of my children and I decided to walk the 78.4km Heaphy Track through the Kahurangi National Park in the top north-west of the South

BRUCE WILLS President

Island. Some would say ‘madness’, but I was keen to do the longest of the Department of Conservation’s Great Walks. The average annual rainfall there is more than 5 metres, unlike Hawke’s Bay’s less than

1 metre. For four days rain poured down, 150mm one day, 85mm another. I can only imagine what the Garden of Eden must look like but, for me, the Heaphy Track must come close. I am lucky enough to have done most of the ‘Great Walks’ — this ranks up there as one of the best. Recently, a respected publication rated the Heaphy as the eighth best walk in the world. A number of things struck me; the variation of flora and fauna between damp gullies, above the bush line and, finally, groves of nikau along the beach. DoC has invested in two large

I can only imagine what the Garden of Eden must look like but, for me, the Heaphy Track must come close. new huts and numerous swing bridges. Possum control has resulted in Rata flowering like I have never seen before and, of course, almost four days of constant rain! But it didn’t matter. The New Zealand bush has its own beauty in the mist and rain. The track is built for the annual 5m of rain with more culverts and drains along the side of the track than you would probably find in the whole of Hawke’s Bay! This walk was great for the soul of a dry-country farmer, who is back to drafting more lambs in hot, dusty yards.

David Carter — a job well done Managing Editor: Conor English Ph: 04 494 9189 cenglish@fedfarm.org.nz Editor: Felicity Wolfe Ph: 04 494 9181 fwolfe@fedfarm.org.nz Memberships: April van Dam Ph: 0800 327 646 avandam@fedfarm.org.nz Advertising: Lloyd Davy Ph: 021 225 4610 lloyd.davy@apn.co.nz ■ ISSN 1179-4526

For Federated Farmers, 2012 was another progressive year. We made good progress on many policy issues and experienced continued membership growth. Now we are entering the ‘‘middle’’ year of the electoral cycle and 2013 is shaping up as another extremely busy year, but the Federation is in good shape to continue our contribution. Prime Minister John Key kicked off the year with a significant Cabinet reshuffle. David Carter has taken up the most powerful position in parliament — the Speaker of the House. This sees Nathan Guy become Primary Industries Minister and Jo Goodhew as his Associate. While I am sure both will do a good job, it is important to note Carter’s constructive contribution in his time as Minister. The passing of the ETS Amendment Bill last year saw biological emissions

removed as an automatic inclusion in the scheme. This is sensible. While the policy framework around water is still being worked through, Carter was a very CONOR ENGLISH strong promoter Chief executive of water storage. Obtaining $35 million for the irrigation acceleration fund and the recent announcement of $80m for water storage is testament of Carter’s tenacity around the cabinet table. The Primary Growth Partnership, another Carter initiative, has seen over half a billion dollars invested in agricul-

tural research. As well as progressing animal welfare reform, Carter herded the wool industry, saw the development of the Red Meat Strategy and changes to raw milk regulations and Fonterra’s Trading Among Farmers. His changes to high country land tenure brought back certainty and fairness. As Minister of Local Government, Carter saw the Local Government Act 2002 Amendment Bill through Parliament, extended the Environment Canterbury Commissioners and sought changes to cost benefit analysis processes under the Resource Management Act. His Ministry for Primary Industries underwent significant change, becoming a ‘‘Super Ministry’’ under his watch. It is true we haven’t always agreed on everything, but overall Carter can be pretty satisfied with his contribution. We wish him well.

Ph 0800 327 646 www.fedfarm.org.nz

February 2013 National Farming Review

NATIONAL POLICY

Farmer confidence: Better and worse Farmer confidence is increasing, at least for dairy, reports Federated Farmers general policy manager, Nick Clark Federated Farmers’ mid-season Farm Confidence Survey shows farmers’ confidence both in the wider economy and in their own prospects is improving, but there is a strong divergence between dairy farmers’ sentiment and other farming sectors. It is very much a case of for better — dairy — and for worse — the rest. Overall, the survey shows an improvement in most indicators since the July 2012 new-season survey. Farmers remain negative about the wider economy’s prospects, but are less gloomy than in July. Similarly, despite a slight improvement, farmers remain pessimistic about their own profitability. Farmers are generally positive about production, but are evenly split on whether they will increase or reduce spending. More expect to reduce rather than increase debt, but this intention is less strong than at any time in the last three years. Meanwhile, farmers continue to find it hard to find skilled and motivated staff. While the overall results seem to indicate a modest improvement in the farming economy, there has been a major divergence between dairy farmers and the rest. Last July, dairy farmers’ confidence, like all farmers, was at a low ebb. Improved commodity prices in the second half of 2012 saw payout forecasts increase which has improved dairy farmers’ view of their profitability and the wider economy — albeit off very negative bases.

Farmers Expecting the Economy to Improve in 12 Months (January 2013)

ECONOMY: Net responses (those expecting the economy to improve less those expecting it to worsen).

More dairy farmers also expect to increase production and spending and there is only a small drop in those expecting to reduce debt. In contrast, sheep and beef farmers have not seen improved world commodity prices and the strong dollar further eroded their return on products. Compared to July, sheep and beef farmers have actually become more pessimistic about their profitability and only slightly less negative about the wider economy. Sheep and beef farmers are also less

Farmers Expecting their Profitability to Improve in 12 Months (January 2013)

PROFITS: Net responses (those expecting their own profitability to improve less those expecting it to worsen).

optimistic about production, partly due to weather concerns in drier areas, and more expect to reduce spending. A large increase in sheep and beef farmers expecting to increase debt is presumably to get through the tough season. Grain farmers’ sentiment is similar to sheep and beef. One area where there has not been diverging views is the difficulty of finding skilled and motivated staff. While dairy farmers are finding it especially hard to find good staff, the labour market remains tight for sheep

and beef and grain farmers despite relatively high unemployment nationally. On the whole, this survey shows farming in a two-speed environment. While it is encouraging that dairy farmers are more positive than six months ago, the ongoing and deepening pessimism in the rest of the farming community is concerning. They will be hoping for a much better second half of the season. ■ For more information and detailed survey results, go to www.fedfarm.org.nz.

Groundwork needs to be done before spraying Ann Thompson Dairy policy advisor Thinking about pesticide spraying programmes in advance helps everyone. Looking towards autumn, many farmers and contractors will be thinking about re-sowing pasture and crops. Others will also be looking at standing crops, assessing what share of them is being lost to pests. This may mean revisiting spray programmes to deal with soil pests. The Environmental Protection Authority (EPA) is assessing the risk to human health when using organophosphates and carbamates to protect plants from pests. The EPA has

found that little real data exist in New Zealand on how these pesticides affect those who use them and it has had to rely on academic theory and overseas experience. Federated Farmers sees real gains for the agriculture industry if farmers and contract sprayers are pro-active about looking after and monitoring their health. This includes the periods before, during and after spray times. Some of the chemicals used in sprays affect enzyme levels in blood. This can be tested only by finding out what your normal level is before spraying takes place. This may require a visit or phone call to the doctor, to find out what testing is

required for the chemical plan being used. Testing for the effects of organophosphates requires: ■ 60 days before spraying begins, two sets of blood samples are taken, between three and 10 days apart. This sets your base line and is most important. ■ During the spraying programme, have another blood test every month. ■ At the end of each spray programme, if spraying lasts more than 30 hours, have another blood test within a fortnight of use. ■ Ring your doctor right away if you feel that something is not ‘quite right’ with your health during or

after pesticide use. While Federated Farmers hopes the precautions taken using organophosphates and other chemicals will be enough to keep farmers safe, people will be comforted if they can see that these do work. Keeping a diary of unusual symptoms is also helpful. Testing will also help the EPA when the time comes to see the real effects of pesticides on New Zealand workers. Remember, always read the labels on pesticides and follow the instructions. The use of many agrichemicals requires special training and certification, so check with your local council or ring GROWSAFE on 0508 476 972.

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National Farming Review February 2013

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NATIONAL POLICY

Crime prevention food for thought Katie Milne Board spokesperson on rural crime All manner of farm equipment, from animals to farm bikes, chainsaws, tools and even drench, can be found going cheap somewhere, but where did they come from? New Zealand’s rural communities are being targeted by criminals who see unattended sheds and remote paddocks as easy targets. So the deal that seems too good to be true, could mean someone else is filing an insurance claim for its theft. Rural crime rates are rising in many parts of the country and summer is a traditional stock rustling time. A neighbourhood watch-type system is a relatively easy way rural people can make their communities safer. If you did not catch up with your neighbours at Christmas, now is a good time to invite them around for a barbecue and chat about improving local security. It is good to be able to ring someone down the road for help identifying vehicles, or let them know if you are going to have a look at suspicious activity on your farm at night. This forms the backbone of neighbourhood watch groups which have proven effec-

but a little extra vigilance by us all would make a difference. Many farms being repeatedly hit are investing in better on-farm security and there are several things every farmer can do make their property more secure. A useful tool to protect against theft is the New Zealand Police’s Operation SNAP (Serial Number Action Partnership) at www.snap.org.nz. This is an online tool aiming to reduce property theft by recording and storing the serial numbers, photos and descriptions of valuable assets. Then, if they are stolen, this information can be quickly provided to police. It might seem a daunting task, but is well worth it. A few other security tips include: ■ Noting registration numbers or taking photos of strange or suspicious vehicles around your area. Thieves often stake out properties before they go in, so watch out for any suspicious people or vehicles. ■ Consider investing in an alarm system, not just for your home, but your garages and sheds. Even if you are not home, if it goes off burglars will not know how long they have until someone arrives to check it out. ■ Avoid leaving easily moved items

LOCK IT UP: Taking a little more trouble to lock up sheds can go a long way toward improving farm security.

tive in cutting crime rates for decades. The past few years have seen a huge rise in straight-out rustling. Some instances are on an almost industrial scale with reports of larger jobs involving 200 or more sheep at a time over the past three years. This applies to cattle also. We know stock trucks are commonly used and go from one end of the country to the other in a day, which makes rustling hard to stop,

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such as tools, chainsaws and farm bikes around, especially with keys. Also hide away spare keys rather than having them hanging on hooks in the kitchen or in obvious places, such as under pot plants by the back door. ■ Criminals prefer to drive as they are less likely to be seen than if they walk up to premises, so making sure your gates are secured with quality locks is a good deterrent. ■ Do not trust people arriving unannounced on to your property with weak excuses, such as looking for a pet or arriving at a ‘wrong’ address. Use your phone or digital camera to quietly photograph them, but without them seeing, and take note of any vehicles. ■ Homes are often burgled when the owners are busy outside. It is well worth locking up if you are heading out to the back of your farm or about to use loud machinery such as chainsaws. ■ Anyone who sees or hears about something illegal, but fears repercussions if it were known they had talked to police, can call the anonymous Crimestoppers line. Crimestoppers is a 24-hour, seven day a week service where people can either call 0800 555-111 or fill out a form on www.crimestoppers-nz.org.

The price of a dog tag Vicky O’Connor North/Mid and South Canterbury field officer In some districts dog registration can be a significant expense. Many farmers feel their district council is scooping up money for dog registration fees when it is in fact incredibly rare for a farm working dog to cause problems requiring the attention of a dog control officer or the pound. Federated Farmers is trying to get consistency into dog registration fees. We acknowledge a number of district councils have established fee categories for working or rural dogs, offering reduced fees or price breaks for dog teams. We want to encourage this nationwide. Gore District Council is an example of a good policy with an annual fee of $16 for rural dogs, compared to urban dogs at $112.50, with discounts for good behaviour. Thames Coromandel District Council’s fee is $60 for urban and working farm dogs, but there is no extra charge when there are

more than three dogs. Western Bay of Plenty District Council charges $67 per working dog. Surely Gore’s farm dogs are not kinder or more responsible than those further north? We think councils at the higher end of the fee scale need to better acknowledge farmers’ good track record of dog management and training. Fees should be targeted at the real source of their costs. This was shown back in 2003 by Federated Farmers research while trying to get working dogs exempted from compulsory micro-chipping. The Federation succeeded, partly because there was strong evidence of the effective and professional management of working farm dogs. There was no evidence of dog attacks or that problems arose from working farm dogs. This is also the basis for the Federation’s case on fees. At annual plan time, when fees, charges and rates are set, Federated Farmers tries to establish the factual sources of councils’ dog control expenses.

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February 2013 National Farming Review

NATIONAL POLICY

Facing up to worrying statistics

■ If you or a family member or friend is struggling with depression, visit www.depression.org.nz for more information.

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leased a comprehensive draft report which we will also submit on. Federated Farmers is watching the work on development contributions. We see their growth as symptomatic of the limits councils are reaching with property value rates. Similarly, the work of the Expert Group on Infrastructure Efficiency will be important for farming, considering the importance of safe and efficient rural roads. The Government is also considering the report of the Local Government Efficiency Taskforce, which investigated ways to improve local government planning, consultation and financial reporting. While many of the Taskforce’s recommendations seem sensible, Federated Farmers is concerned about removing draft annual plans and relying on the three-yearly review of long-term plans as the only opportunity for people to have their say on rates. This could make it easier for council spending and rates to creep up and for ‘tweaks’ to be made to rating systems. These may seem minor, but could impact heavily on ratepayers such as farmers. Federated Farmers’ view remains that without funding reform to reduce the over-reliance on property valuebased rates, local governments’ problems will never be completely solved. This must be the next phase of reform. Overall, it is good to see this reform package advancing and the acknowledgement that local government is not working effectively. Dramatic rates cuts may not be on the cards just yet, but we remain hopeful these reforms will get us closer to ‘better local government’.

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Much has happened since the Better Local Government reforms were announced. The Minister of Local Government at the time, Nick Smith, claimed ‘‘the reforms would help keep rates affordable and debt at prudent levels by focusing councils on their core roles’’. Better Local Government aimed to provide clarity on councils’ roles, more responsible local financial management and stronger governance. It includes eight specific initiatives including a rewrite of the Local Government Act, a local government efficiency taskforce, a framework around local and central government regulatory roles, an investigation into efficient infrastructure provision and a review of development contributions. The local government sector responded by rigorously contesting whether any problem existed and attacking Dr Smith’s statistics. Over the past year, Federated Farmers has been supportive of the Local Government Amendment Bill on the basis that the role of local government needs urgent restraint and focus. The Federation’s reservation is that the real answer to this lies with property value rates reform. Despite the local government sector’s opposition, the Bill passed in November and is now largely in force. The Federation also submitted in response to the Productivity Commission’s paper on local government regulatory performance, pointing to the problem of excessive regulation locally and the cost to ratepayers of responsibilities delegated to local government by Parliament. In December, the Commission re-

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SPEAK UP AND GET THROUGH: With alarming rural suicide statistics, Federated Farmers is urging rural communities to start talking about this problem and encouraging people to seek help when necessary.

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Rising pressures on farmers and alarming statistics that show depression is a real issue in rural communities has got Federated Farmers looking at what resources are available to address rural mental wellbeing. As a result we are trialling an initiative to get people talking about depression, with the aim of removing its stigma and encouraging people to seek help when they need it. Recently released data from the Ministry of Health and Statistics New Zealand show the suicide rate for those living in rural areas is 16 per 100,000 people, compared to a rate of 11.2 per 100,000 people in urban areas. The highest number of rural suicides is in the 25 to 44 age bracket, with men showing a significantly higher suicide rate than women. Federated Farmers believes it is time to address these statistics and get the rural sector and mental health organisations to work together to develop a proactive

strategy to address the problem. With the help of Primary ITO and Farmsafe, a wallet-sized card, with the numbers of several helplines for farmers to call when they feel under pressure, is being distributed to Federation members with member cards. As well as raising farmer awareness of the resources available to help them get through, the Federation hopes these cards will be the first step towards getting the rural sector and mental health organisations to improve their working relationship and develop proactive solutions to rural depression. This is vital. The reality is rural people can get depressed and in a more isolated work environment the challenges to get better can be more difficult. We need to ensure that when rural people need help and support, they get it. While these cards are being sent to Federated Farmers members, they are freely available to download on www.fedfarm.org.nz.

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National Farming Review February 2013

www.fedfarm.org.nz Ph 0800 327 646

NATIONAL POLICY

Federation wins on ag vehicles rules Kara Lok Policy advisor Proposed changes to the land transport rules for agricultural vehicle operators are a vast improvement on the current regulations. Federated Farmers is supportive of most of the changes which will reduce farmer compliance costs, without compromising road safety. The agricultural transport review was instigated after the Federation approached former Associate Transport Minister, Nathan Guy, in 2010 with concerns over the complexity of the regulations. All agricultural vehicles, such as tractors and combine harvesters, must be registered when used on the roads. From May 1 the current EB license category for agricultural vehicles raises the maximum speed from 30km/h to 40km/h. Operators with agricultural vehicles who opt to go no faster than 40km/h will pay reduced licensing fees excluding the ACC motor levy, will not need a WOF or to pay Road User Charges (RUC) or to comply with the Work Time Rule. Agricultural motor vehicles, excluding utes, quad bikes and trucks, licensed to go over 40km/h will be required to pay the ACC motor levy and RUC and get a simplified annual WOF. They will also be

required to comply with the Work Time Rule. Operators who work seasonally will now be able to apply for an alternative fatigue management system. An alternative hazard panels has also been proposed and the New Zealand Transport Agency (NZTA) intends to make amber beacons mandatory for agricultural vehicles registered for the first time after or on May 1, 2013. The forward distance permitted has been extended from 3 metres to 4 metres reflecting the increase in size of modern agricultural vehicles. The new rules will also allow the holder of an overseas agricultural vehicle license, from countries such as the European Union nations, Canada and the United States, to operate an equivalent vehicle in New Zealand. People who hold a class 1 licence will be able to operate more agricultural vehicles. While Federated Farmers is highly supportive of the changes, we have recommended NZTA make some minor amendments before the rules are signed into law. If all goes to plan, the changes will come into play on May 1 of this year. Both Federated Farmers and NZTA will notify the Federation’s members of the final changes.

LESS RESTRICTIVE: Those with agricultural vehicles who only occasionally use them on roads will not have to pay Road User Charges and ACC levies.

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February 2013 National Farming Review

COUNTERPOINT

Co-operative ethos vs pioneering spirit Pioneers should think co-operatively argues Jacqueline Rowarth, Professor of Agribusiness, University of Waikato knowledge and bring a different perspective, assists with governance. This is particularly important when a cooperative is limited by geography or product, giving only a small pool from which to elect directors. Another source of tension, however, is when the pioneer/entrepreneur leaves the co-operative and sets up a new business. The general New Zealand way is to praise the pioneer until the new business becomes a tall poppy for criticism. This has been highlighted by George Adams, outgoing boss of Coca-Cola Amatil, pointing out that the Kiwi ‘love to hate’ relationship with big business is damaging. The damage done to the original cooperative is difficult to calculate, but the strength of the dairy industry last decade in comparison with the meat companies gives a clue. Results from Jess Bensemann’s master’s research with Massey University has shown that less than half of lamb producers are committed to one company. Internal competition undermines global possibilities. In contrast, most milk producers in New Zealand supply Fonterra. New Zealand has over 4.45 million

significant role in rural businesses. The co-operative structure has given bargaining power and economies of scale allowing investment in research for the benefit of all JACQUELINE members. Both ROWARTH of these factors Professor of benefit farmers Agribusiness, who are not coUniversity of op members — Waikato the spill-over effect. Tension can arise in a co-operative when members of the governance board are thought to be acting more as pioneer/ entrepreneurs than for the co-operative’s good. It is a least in part for this reason that many boards have executive directors, brought in from outside. Good governance requires rigour of debate involving participation from people with diverse backgrounds and hence experience and knowledge. Bringing in a high performer from outside, to cover a gap in board

New Zealand is full of tensions featured in the media and people’s minds. The arguments between economy and environment, and rural and urban, are directly relevant to farm operations, affect overall profit and increase blood pressure. But it is the often unacknowledged tension between the pioneering spirit and the cooperative ethos that might be doing the most damage. Pioneers build businesses. They take risks, invest time and energy. Recent coverage on ‘burnout in SMEs’ (small and medium-sized enterprises) makes the point that running a business can be addictive. People are ‘deluded into thinking the business cannot survive without them’. For farmers it is often true . . . they are the original entrepreneurs and they establish businesses to earn profit and for the challenge. There can be spill-over effects for society. The farmers who give up their time for school boards, charities and local societies, for instance. But when times are tight people have to decide whether a dollar or an hour will give greater returns invested in their own business or off-farm in the industry or society. In contrast, co-operatives work on mutual benefit for the members and play a

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people; the rest of the world is over 7 billion. Without strong co-operatives, New Zealand farmers are peasants. Lachlan McKenzie, ex dairy-chair, has been vocal on this point. The current strategy for new dairy companies is to guarantee that the payout will be higher than from Fonterra, but each new company, unless it has been developed on a point of difference such as an addedvalue product, undermines Fonterra’s ability to achieve a ‘fair’ milk price. The strength of the co-operative is in its members. They share the benefits and the risks, so when something goes wrong the impact and damage is spread. Of most importance in a small country, cooperatives give producers strength in the global marketing challenge. Perhaps it is time for a new era where pioneers think co-operatively as well as innovatively. With the economic benefits for the individual, the industry and the country that would follow, farmers would be able to do more of the fencing and building of stand-off pads and animal shelters that is required to protect the environment. This would decrease the urban concerns, and so tensions would decrease. The only people that might then have a challenge would be media . . .

National Farming Review February 2013

www.fedfarm.org.nz Ph 0800 327 646

PROVINCIAL SPOTLIGHT

A tale of two councils, amalgamation Jamie Falloon Wairarapa provincial president The councils of Wairarapa and Wellington region have the opportunity to merge. There are nine district authorities and one regional council for a population of less than 500,000 people. It makes sense to look at local government structure because the region has too many elected councillors, mayors and management staff for the population it serves. The problem Wairarapa and Wellington faces is that three proposals are being debated. Wairarapa wants to cut ties with Wellington and become a Unitary Authority, where the local council takes on the role of the regional council as well as local functions. The Hutt councils want a Unitary Authority and the rest, Wellington City, Porirua, Kapiti and the Wellington Regional Council, want to have a

Wairarapa cuts off Wellington we will need to find all the funding for a Unitary Authority from Wairarapa ratepayers, borrow more or go cap in hand to the Government, because we will be on our own. At the end of the day the ratepayers will carry the costs of mistakes made by the council amalgamation. Wairarapa does not have the population to continue the services currently funded by the Greater Wellington Regional Council (GWRC), let alone the local council costs for sewerage, roading and water, without large rate rises for all ratepayers, especially farmers. One risk small population areas face is they cannot afford to fund infrastructure development projects which have a public good for the region and the surrounding areas. A good example of this is the

region-wide single council. Frustratingly for ratepayers, none of the groups are considering the others’ positions. The Wairarapa and Hutt councils are taking parochial positions because they do not want to lose the power and control they currently have. A sensible solution would be for the councils to allow ratepayers to consider the proposals, listen to their feedback and submit a joint region-wide proposal to the Local Government Commission. However, common sense, practicality and good governance do not always go hand-in-hand in local body politics. Instead, the Wairarapa councils are trying to play pork barrel politics, attempting to convince ratepayers that a single region-wide council is bad for Wairarapa and we would be better off without Wellington. The only thing we know for sure is if

Wairarapa Irrigation Project. This has funding from the regional council for $3 million. This funding allowed an application to be made to the Government’s Irrigation Acceleration Fund, which was successful and matches the funding GWRC has committed to. This project could be at risk if Wairarapa cuts ties with Wellington and becomes a small Unitary Authority as a good part of the funding would then have to come from Wairarapa ratepayers. A shame, because this proposed irrigation project has the potential to change farming on the dry Wairarapa plains, increase environmental river flows during summer and have a huge impact on the GDP of Wairarapa. Wairarapa Federated Farmers is asking local councils for more information on this and to slow down in rushing for a proposal for change.

REGIONAL SPOTLIGHT

Ruataniwha Dam proposal holds water Rhea Dasent Regional policy advisor

VISION: Artist’s concept of the Ruataniwha Dam. PICTURE: SUPPLIED/ HAWKES BAY REGIONAL COUNCIL

ject: Feasibility Report to Council reported distribution costs as between 20c and 30c per cubic metre of water. For farmers wanting to continue farming over summer, individual on-farm water storage was priced at about $3 to $5.80 for a cubic metre of water, compared to $2.91 per cubic metre for Ruataniwha dam storage. These figures are based on the assumption of a dairy payout of $6.50

per kilo of milk solids and lamb and beef prices at $6 and $4.25 per kilogram, respectively, but dairying is not the only land use predicted to use water for irrigation. Macfarlane Rural Business Ltd predicts conversion rates of irrigable land will be 37 per cent to dairy, with arable to 32 per cent and sheep and beef at 13 per cent. This use of Ruataniwha water could

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There has been some criticism that the Ruataniwha Dam project will not be financially viable or sustainable and will suffer from lack of demand, despite the Hawke’s Bay Regional Council (HBRC) providing convincing information about its merits. Looking at a similar project in Timaru, Federated Farmers is confident HBRC has presented an achievable scenario which will provide huge benefits to farming and the people of Hawke’s Bay. An irrigation ban issued last month for parts of the Ngaruroro, Waipawa and Tukituki rivers, affecting more than 200 consent holders, demonstrates the need for a reliable water supply. The proposed Ruataniwha Dam will be on the Makaroro River and could supply water to irrigate 25,000ha of farmland and generate 6.5 megaWatts of electricity. Critics say uptake of irrigation would be low because costs to individual farmers would make joining the scheme uneconomic for all except dairy farmers, but HBRC’s data and the experience of the Opuha Dam near Timaru suggest otherwise. The HBRC’s September 2012 Ruataniwha Plains Water Storage Pro-

translate to farm added value rising by $70 million a year, including an additional household income lift of $24m a year. Significantly for the region, this is predicted to provide an extra 632 fulltime on-farm jobs. The flow-on of increased farm financial benefits would lift the GDP of Hawke’s Bay by 4 per cent. This all adds up to more opportunities for farming and everyone else in Hawke’s Bay’s dry climate. The Opuha Dam is an example of demand and on-farm affordability. Constructed in 1998, it has capacity to provide water to irrigate 16,000ha of farmland. It also supplies town supply, commercial use and generates electricity. An economic report states every thousand hectares of dry land only generated $0.71 million of added value a year, but the same area of irrigated properties generated $2m in 2003 and 2004. Direct farm output increased by $40m per year. On-farm added value increased by $16.3m and household income increased by $7m per year. It generated 480 new jobs, 145 of which are full time on-farm. The Opuha Dam paints an encouraging picture of how large-scale water storage projects benefit farmers and the wider community.

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February 2013 National Farming Review

NATIONAL NEWS

Inhibitor recall the right move Felicity Wolfe The decision by Ravensdown and Ballance Agri-Nutrients to withdraw the nitrification inhibitor Dicyandiamide (DCD) from the market until acceptable residue levels have been internationally agreed is supported by Federated Farmers food safety spokesperson William Rolleston. Trace residues of DCDs have been found in cow’s milk. While there is no evidence to suggest the product is harmful to humans, there is no internationally agreed acceptable level. This could put trade at risk if some countries decide to stop importing New Zealand milk because of it. Dr Rolleston said the amount of DCD was so small that it was due only to the increased sophistication

of testing technology that it was able to be found. ‘‘This is the right move for dairying in New Zealand. It really shows the thoroughness of testing within New Zealand’s primary industries and the high standard we put on ourselves to protect our reputation as a trusted supplier of food products,’’ he said. The DCD had been found only in liquid and powdered milk, not further processed dairy products, such as cheese and butter. Dr Rolleston did not believe this would substantially damage the industry, as the product had been used only on about 500 farms, of about 12,000 in New Zealand. ‘‘The important thing here is for New Zealand to maintain its reputation as a safe and reliable food-producing country which is transparent and upfront.

‘‘The vast majority of New Zealand farms have not used DCDbased nitrification inhibitors, but we want our trading partners to know New Zealand’s primary industries take this extremely seriously.’’ The last applications of DCD would have been in spring so it was unlikely any would still be detectable. Dr Rolleston said DCD use had arisen after considerable pressure on farmers to find solutions for diffuse nitrogen, but it was more important that any solution be thoroughly scientifically tested in New Zealand conditions to ensure they were safe. ‘‘The pause in DCD use reminds us that we need to ensure the regulatory system is up to date when we use and then test for new products,’’ Dr Rolleston said.

SAFE AS: Following the minute traces of Dicyandiamide (DCD) detected in New Zealand milk, Federated Farmers backs the move to stop use of the nitrogeninhibiting product until proper testing and standards have been set.

MEMBERSHIP

Doing it for the farmers in my region Lyndel Stone Field officers team manager I started working one day a week for Ruapehu Federated Farmers in 1992. Now my territory covers much of the central North Island, from Galatea through to North Taranaki and I am also the field officers’ team manager. One of the reasons I have worked with Federated Farmers for so long is because it is a privilege to work with farmers in some of New Zealand’s most beautiful areas. I also very much agree with the Federation’s philosophy, so being a spokesperson for what we do comes naturally. Most farmers I visit are welcoming and open. Although some may not join, almost all agree Federated Farmers is the only group representing all farmers right across the broad spectrum of farming. One of the job’s highlights is seeing the sons of farmers I joined up many years ago now joining. Over the years there have been tricky situations involving vehicles, ditches and, increasingly, dogs. The

LONG INVOLVEMENT: Lyndel Stone, above, has worked with Federated Farmers for 20 years. Right, Lyndel travelled to Burma to see how farmers work there.

latest incident saw me doing a 100-metre sprint through a beautiful rose garden, a long jump onto the driveway and the Fosbury flop through the door of my car. My next job may be working with the Olympic team.

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land farmers are. Most farmers I visit are improving their farms to leave them much more sustainable and profitable than when they took them on. I have walked through hectares of fenced pristine native bush and newly planted wetlands, established to provide habitat for native species. Farmers do these things because they love the land. I am proud to work for an organisation which recognises farmers’ achievements and wish some of agriculture’s detractors would spend time with me on the road so they could see the huge areas farmers are voluntarily protecting on their land. Federated Farmers’ job is to protect farmers so they can continue these works. We do this by standing between farmers and those who make the rules which affect farming, trying to educate the regulators about the industry’s realities and practicalities. We also advocate for best practice in farming. To continue ensuring farming remains profitable for the future, the Federation needs all farmers to support what we do.

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National Farming Review February 2013 www.fedfarm.org.nz

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FEATURE

Getting the most out

New Zealand has always relied heavily on agricultural trade. The world’s growing population is clamouring for our safe, high-quality food products and Federated Farmers, along with other industry groups, plays an important role in ensuring links are made to benefit farmers, reports Felicity Wolfe. Over the past year Federated Farmers has been very involved in several international meetings and conferences in the hope of supporting government and industry efforts to increase the country’s trading opportunities. Trade is a cornerstone of New Zealand’s agricultural sector which exports about 90 per cent of what it produces. Federated Farmers is making sure New Zealand’s farming industry is well represented on the world trade stage with national president Bruce Wills about to take a seat on the board of the World Farmers Organisation. This means he can directly talk to fellow farm leaders about their concerns around opening up trading access and share New Zealand’s experience of how freeing trade has helped farmers run better and more efficient businesses. ‘‘A number of trade deals — both bilateral and multi-lateral — which are in varying stages of completion at present will have huge benefits for agricultural trade,’’ Wills says. ‘‘We are watching these closely because we know the importance to our members, and the rest of the country, of selling into higher-value markets.’’ He will be taking on the role as Oceania’s representative on the World Farming Organisation (WFO) at the group’s next meeting being held in Tokyo in April, which will give him wider opportunities to promote the successes of New Zealand farming in a subsidy-free and free-trade environment. ‘‘There are countries which are deeply sceptical of free trade as their farmers are worried that they would not be able to compete in a subsidy-free and barrier-free trading environment,’’ Wills says.

‘‘This was clearly demonstrated to me at our last WFO meeting in Rome. At that meeting 31 countries were represented, of those 31 only three supported free trade. However, we are living proof that an open trading environment actually makes for a more resilient and competitive industry, which is what we have here in New Zealand.’’ He is enthusiastic about the possibilities which would open up around the proposed Trans Pacific Partnership (TPP). This would substantially expand the existing Trans-Pacific Strategic Economic Partnership Agreement or P4 agreement between New Zealand, Brunei, Chile and Singapore to include Australia, Canada, Malaysia, Mexico, Peru, the United States, Vietnam, and possibly Japan and South Korea. ‘‘This deal would make New Zealand part of a trading club worth US$21 trillion, larger even than the European Union,’’ Wills says. ‘‘In order to work the TPP must eliminate all tariffs which are used to protect domestic industries from competition. Any other non-tariff condition or restriction needs to have a real sciencebased rationale, such as biosecurity. The goal is to have trade which is open, accessible and above all, honest. ‘‘If we can get a high-quality deal from the outset, especially one with water tight tariff phase-outs and rigour around ‘nontrade barriers’, New Zealand farmers and the whole economy will benefit.’’ ‘‘New Zealand has a reputation for ‘walking the talk’ when it comes to negotiating these deals,’’ Minister of Trade Tim Groser says. Groser, who is widely regarded internationally as a top candidate to take over

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GROWING THE BUSINESS: There is an increasing call for New Zealand protein produce but we need good trading relationships and conditions to capitalise on that demand.

the director-general of the World Trade Organisation this year, says expanding the number of free-trade partnerships is essential for New Zealand’s economy. ‘‘We must also diversify our risk. For instance, at present demand is depressed in Europe and we are selling more goods into Asia, where market access can be more complex,’’ Groser says. Federated Farmers chief executive

Conor English says there could be opportunities waiting in these emerging markets which have not been explored or even thought of yet. ‘‘If we can get tariffs eliminated from these markets, opportunities will open up as selling new products becomes economically viable,’’ English says. ‘‘There are many products currently under-utilised. One example could be

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February 2013 National Farming Review

FEATURE

of Kiwi trade deals DAIRY TRADE: Already a huge export earner for New Zealand, dairy could be an even more lucrative product if overseas tariffs and protectionist measures where dismantled.

taking something which is not highly valued here, such as ox-tail, and selling it in a market where it is more highly valued.’’ Currently New Zealand has the Closer Economic Relationship (CER) with Australia, free-trade agreements (FTA) with China, ASEAN, Malaysia, Hong Kong and Singapore, a Closer Economic Partnership (CEP) with Thailand and the P4 Agreement. Groser says calculating the precise numerical value of FTA’s is difficult, but points to the example of China as a newly opened trading area which is benefiting New Zealand. ‘‘Exports to China more than doubled in the first three years since the FTA was signed,’’ he says. ‘‘Note that all of New Zealand’s top 10 exports to China are agricultural or forestry products. At a ‘first principles’ level, our FTAs have allowed us to gain and maintain market share, returning ultimately more value to New Zealand for the products we sell. ‘‘Free trade, without tariffs or other barriers, is the most fair way of ensuring everyone gets a good deal for their goods. ‘‘[Without FTAs] other exporting countries, like Australia, Brazil or Chile, which enjoy preferential trade deals with some of our favoured markets, might edge us out of those markets if they can circumvent those barriers, so there is a competition element too. Ultimately it boils down to achieving a fair deal for our

exporters and earning our way in the world,’’ Groser says. These barriers have been erected and kept in place because of many international farmers’ fears about their ability to farm economically. ‘‘This is why Federated Farmers is making a concerted effort to build relationships with international farming organisations, such as the WFO,’’ English says. ‘‘Despite seeing that New Zealand farmers do not just survive, but thrive in a post-subsidy era, international farmers and agricultural lobbyists around the world remain sceptical about ditching protectionist measures such as tariffs. ‘‘That is why the partnerships and relationships which the Federation is working to strengthen with international farming groups is vital.’’ While there have been high profile free-trade deals made with the likes of Hong Kong and China over the last few years and more under way with other large emerging markets such as India, Russia, Belarus and Kazakhstan, English said convincing countries such as Canada and Japan to relax tariffs on products such as butter and beef could do a lot to improve returns for farmers at the farm-gate. Having good trade relationships was good for both countries involved, helping encourage more efficient production and strengthening ties between

countries. This was evident when looking both at the well-established Closer Economic Relations deal between New Zealand and Australia which is celebrating its 30th anniversary this year and the more recent FTA with China. ‘‘These are now our number one and number two trading partners in the world,’’ English says. Beef + Lamb New Zealand chief executive Dr Scott Champion says ‘‘we live in a world of bilateral and multilateral deals’’. ‘‘In the absence of meaningful progress on the World Trade Organisation more and more countries are looking at how they can improve the prospects for their productive sectors, as well as offer more choice and opportunity for their consumers, and better access to education and investment opportunities overall. ‘‘New Zealand needs to keep up with the pace and needs to continue to seek out better access to the growing middle class in Asia and other emerging markets.’’ Wills says the Federation remains highly supportive of the efforts which have been made by successive governments to encourage trade liberalisation globally. ‘‘We have a very good relationship with the Minister and the Ministry of Foreign Affairs and Trade,’’ Wills says. ‘‘With the WTO’s Doha agreement stalled at present, we are pleased with the progress on negotiating FTAs with important trading partners which has been made. ‘‘Encouraging progress has been made in recent years, with the Trans-Pacific Partnership, and free-trade agreements with China, ASEAN, Malaysia, and Hong Kong.’’ The Federation also welcomes the work to secure agreements with countries such as the United States, Arab Gulf States, India, Korea, and Russia, as well the efforts to expand the TransPacific Partnership. Federated Farmers wants these agreements to be comprehensive and result in meaningful liberalisation of agricultural trade. ‘‘The best way to promote economic growth, incomes, and jobs is to embrace trade not reject it,’’ Wills says.

■ Beef + Lamb’s role, page 12

Free Trade Agreements Existing Free Trade Agreements ■ Australia: Closer Economic Relations — 1983 ■ China: New Zealand China Free Trade Agreement — 2008 ■ Thailand: New Zealand and Thailand Closer Economic Partnership — 2005 ■ Singapore: New Zealand and Singapore Closer Economic Partnership — 2001 ■ Brunei: Trans-Pacific Strategic Economic Partnership — 2005 ■ Chile: Trans-Pacific Strategic Economic Partnership — 2005 ■ Singapore: Trans-Pacific Strategic Economic Partnership — 2005 (Auxiliary to New Zealand and Singapore Closer Economic Partnership) ■ Association of Southeast Asian Nations: — negotiating along with Australia since 2004 ■ Malaysia: New Zealand-Malaysia Free Trade Agreement — 2009 ■ Hong Kong: New Zealand Closer Economic Partnership — 2011

Proposed Free Trade Agreements New Zealand is negotiating bilateral and multi-lateral Free Trade Agreements with the following countries and blocs: ■ The Trans-Pacific Strategic Economic Partnership, a multilateral trade agreement ■ United States ■ Peru ■ Vietnam ■ Japan ■ South Korea ■ Gulf Co-operation Council ■ India ■ Russia-Kazakhstan-Belarus

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National Farming Review February 2013 www.fedfarm.org.nz

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FEATURE

Beef + Lamb + Government = Trade Dr Scott Champion Beef + Lamb New Zealand chief executive Beef + Lamb New Zealand (B+LNZ) represents the interests of New Zealand sheep and beef producers, advocating on their behalf. The development of trade relationships and agreements is a long-term activity, requiring a steady and consistent effort from Government and industry organisations. Trade deals are made between governments, but B+LNZ performs a major complementary role in promoting and assisting negotiation. In many cases the decision to seek a trade agreement with another country will be generated by industry.

For example, B+LNZ develops trade priorities, in consultation with the sector’s processing and exporting members, based on factors such as macroeconomic and demographic information, current trade levels, tariff rates, non-tariff barriers and competitive positioning. These trade priorities are communicated to Government for consideration. Once governments have agreed to consider a stronger trade relationship,B+LNZ supports the New Zealand Government to ensure a successful outcome for all. B+LNZ develops negotiation objectives and priorities with supporting trade information and other analysis. In many cases, trade is only one

component of agreements between New Zealand and other countries. Opportunities for cultural and technical exchange can form an important part of the overall relationship. In these relationships’ early stages there is often concern that New Zealand, as an efficient producer, will out-compete domestic producers and take over the market. This may seem unlikely, as we already sell all our product and our ability to significantly increase production is limited by the available land resource and competing uses. Nevertheless, it is a real concern for those producing red meat in some markets. To assist in this understanding B+LNZ undertakes outreach pro-

grammes to producer organisations in both major and emerging markets. As trade negotiations reach their final stages there are often times when Government negotiators seek further guidance from the sector. This may be as simple as checking that an offer meets the sheep and beef sector’s needs, or it may be to get a better understanding of a particular stumbling block where industry may be able to provide a creative solution which satisfies all parties. Bi-lateral and multi-lateral deals are now the world in which we live. New Zealand needs to keep up with the pace and continue to seek better access to the growing middle class in Asia and other emerging markets.

EMPLOYMENT

What are the legalities around parental leave? Federated Farmers legal advisor Emma Coburn looks at the requirements for employers and employees around parental leave. At some point most employers will have a worker ask for parental leave. So what happens when a parental leave request is made? The Parental Leave and Employment Protection Act 1987 (PLEP Act) sets out detailed requirements for employees’ requests. These must: ■ Be in writing ■ Be at least three months before the baby is due ■ State when the leave will start and its duration ■ Be accompanied by a medical certificate verifying the expected birth date. Once you have this request, you have 21 days to give the employee written notice stating whether they are entitled to parental leave under the PLEP Act and whether you can keep their job open until they return. You also have to provide the employee with information about parental leave and their rights. This can be found on the Department of Labour website.

Who can take parental leave? Birth mothers, their partners and adoptive parents are all eligible. Female employees or adoptive parents are eligible if: ■ They are having a baby or adopting a child under six years old ■ They have worked for the same em-

ployer for an average of 10 hours or more per week and at least one hour every week or 40 hours every month for at least: ■ Six months before the baby’s expected date ■ Twelve months before the baby’s expected date. Some entitlements differ if the employee has qualified after working for six months continuously or for 12 months continuously. 1. Maternity leave: 14 weeks for both 2. Extended parental leave: Eligible for 52 weeks (including maternity leave) after 12 months 3. Partners/ paternity leave: One week after six months of employment and two weeks after 12 months 4. Paid parental leave: 14 weeks at a maximum of the rate specified by Government for both 5. Special leave for reasons related to pregnancy: Up to 10 days, if eligible for maternity leave, for both. Paternity leave applications must include a written assurance from the pregnant partner that the employee is her spouse or partner and intends to assume care of the child. If both work for the same employer, employees eligible for maternity leave may also choose to transfer some or all of their entitlement to their spouse or

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partner provided that person has been employed by the same employer for an average of 10 or more hours a week for the 12 months before the due date. Parental leave can be taken more than once, as long as there is six months between the date of returning to work and the expected date of birth of the subsequent child.

clude parental leave provisions paid for by the employer. These are not in Federated Farmers’ agreements. However, these cannot take away from an employee’s eligibility for Government parental leave.

Parental leave entitlements

You may engage a temporary employee on a fixed-term agreement or disperse the absent employee’s duties to other staff. If you engage a temp, they must have written notification stating they are filling in for a permanent staff member on parental leave. There is a presumption that unless an employer can prove a temporary replacement is not reasonably practicable due to the key nature of a position, or a redundancy situation has arisen, an employee’s position can be kept open if their parental leave period exceeds four weeks. We recommend seeking legal advice if employers are considering restructuring or anything which would prevent an employee on parental leave from returning to their role.

Parental leave is not paid by the employer. It is an entitlement to unpaid leave from employment. Special leave is unpaid leave which can be taken by a pregnant mother before maternity leave begins, for reasons connected with her pregnancy, such as doctors’ appointments.

Paid parental leave

To receive paid parental leave, the employee must apply separately to Inland Revenue for parental leave payments. The maximum level of payment is $475.16 per week before tax. An employee is entitled to either their gross weekly rate of pay or $475.16, whichever is lower. Some employment agreements in-

Obligations to keep job open

■ For more information on parental leave, or specific queries, please call 0800 FARMING for free, independent legal advice or see www.dol.govt.nz/er/ holidaysandleave/parentalleave/employers/.

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February 2013 National Farming Review

WEATHER

Active start for some and the big heat Neutral patterns widen extremes of wind, rain and temperature writes Metservice weather ambassador, Daniel Corbett

Anticyclones are likely to bring extended periods of dry weather, especially in the north and east.

The active weather that ushered out spring was a lingering trend in early summer. A broad upper-level trough was partly responsible for December’s unsettled first few days, when strong to severe gales buffeted many parts of the country, about 200mm of rain lashed the West Coast and Christchurch hit 30°C on the fifth. Humid subtropical air lying across the far northeast of the North Island helped create a nasty line of thunderstorms on December 6. A small tornado also developed in the active line of thunderstorms across west Auckland around Hobsonville during the middle of the day.

slightly during recent weeks. The conditions are still described as neutral, which is forecast to continue for the next several months. Generally in a neutral scenario our weather patterns become more varied and it also widens the extremes of wind, rain and temperature. This also allows other factors to influence our day-to-day weather.

DRY BUT NOT DROUGHT: Farmers in many parts of the country hope the weather will swing back to rain in the coming weeks to avoid excessively dry conditions, as seen here in North Otago in 2008.

DECEMBER 6, 2012

There were active fronts for the rest of December but anticyclones brought some summer heat. December was, on average, warmer than normal across New Zealand but that was nothing compared to the furnace-like heat in much of central and eastern Australia, with daytime highs well above 40°C. This brought tinderbox dry conditions and lead to significant bush fires. Warm dry conditions caused by the warm and dry norwesters usually occurring in front of active troughs were a common theme across eastern parts from Otago to Hawke’s Bay. The typical active trough spreads into the West Coast laden with moisture. The moisture barrels into the western slopes from Fiordland up to the northwest ranges of Nelson. Rainfall events in late December and early January brought more than 300-400mm to some places. The tight pressure gradients associated with some of the active fronts brought strong to severe gales in some areas with 120-130km/h around Wellington on January 10 and briefly above

JANUARY 14, 2013

200km/h on Mt. Hutt. There was a hint of El Nino in the overall neutral seasonal weather pattern. Perhaps this helped bring about recent weather conditions. In a fullblown El Nino, all the weather zones shift further north. The Roaring Forties sit across southern New Zealand and the fine settled weather, with the large anticyclones, has shifted further north over the Tasman Sea and the northern half of New Zealand.

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The ocean Several months ago the waters across the equatorial Pacific began to warm across eastern areas, hinting at a developing El Nino. This area spread slowly west but soon after began to relax. The equatorial Pacific Ocean is close to average but still warmer in the west than in the east, which has cooled

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This has also been the cause of the extreme heat across Australia. The anticyclones have settled across the Tasman Sea, allowing the interior heat to build and the wind flow around the highs spread the heat down south and as far east over the Tasman to New Zealand. The tropics have been active at times and will bubble to life as we proceed through the next couple of months. Decaying tropical lows could bring a break in the fairly persistent west to southwest average wind flow that should prevail.

The atmosphere Atmospheric weather patterns have fluctuated during recent months and have never really picked up on the early season El Nino signal. The Southern Oscillation index gives a snapshot of the weather patterns between Tahiti and Darwin. It has fluctuated around zero and is sitting just below. The mostly neutral conditions across the Pacific bring an element of variety in our weather. The recent El Nino trend allowed the Roaring Forties to move slightly further north than normal, positioned across the southern half of New Zealand. The anticyclones have been positioned slightly further northwest as well. This will continue during the next few weeks. Anticyclones are expected to build around Tasmania and spread across the Tasman Sea. They are likely to bring extended periods of dry weather, especially in the north and east. Troughs and fronts are likely to move on to New Zealand from the south, with lows forming in the troughs and deepening as they move off, east of us. This predominate pattern will bring frequent southwesterlies to many areas. Passing lows in the Southern Ocean may bring brief bursts of northwesterly wind and the odd decaying systems from the tropics may bring a period of easterlies and outbreaks of rain, especially to northern and eastern areas.

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National Farming Review February 2013 www.fedfarm.org.nz

Ph 0800 327 646

ECONOMY

Farmers’ guide to Canterbury rebuild The Christchurch rebuild will put pressure on resources, writes Westpac Institutional Bank economist Nathan Penny. The Canterbury rebuild is hitting its straps and is set to dominate the economy for up to a decade. The rebuild is timely, as the economy could do with a boost. However, it will draw in resources from other parts of the economy. As a result, farmers across the country may notice labour shortages, cost increases, higher interest rates and a strong dollar.

Bigger than Ben Hur

The latest Treasury estimates of rebuild costs jumped from $20 billion to $30 billion. While we think this estimate may prove a tad ambitious, one thing is for sure: the rebuild will dominate the economy for years to come. For some context, the estimated rebuild is equal to 15 per cent of the Gross Domestic Product. By comparison, Australia’s much-hyped mining investment boom amounted to just over 10 per cent. Also relative to the size of the economy, the earthquake damage estimate was bigger than other recent natural disasters such as the Japanese tsunami, the Queensland floods, and Hurricanes Sandy and Katrina combined.

Hitting its straps already The rebuild has already hit its straps. And it is accelerating. Residential and commercial building surged 7 per cent and 12 per cent respectively in the September 2012 quarter, driven largely by rebuilding and repairs in Canterbury. With building consents rising 26 per cent in the year to November 2012, there’s plenty left to come.

It’s timely

The rebuild is timely as the economy is weak and could do with a boost. As other

RECONSTRUCTION: With the dismantling of much of Christchurch’s CBD almost complete, thoughts are turning to the massive task of rebuilding.

economies are scrambling for stimulus, the rebuild is set to spur our economic growth from 2.5 per cent, at last count, to above 3 per cent for the next two years. If this estimate proves correct, we expect to outperform our Australian cousins over the ditch. The accelerating growth will help create jobs and absorb spare capacity in the economy. As a result, we expect the unemployment rate to fall about 5 per cent by 2014.

Resources from across the country Some of these workers will be drawn to Canterbury from other parts of the country, creating worker shortages in

BUILDING CONSENTS, BY VALUE

not only construction, but in the supporting service sectors too. Other resources such as plant and machinery will also shift to Canterbury. As a result, farmers may find it hard to get work done, particularly building. Where farmers may not notice shortages, they may notice an increase in price.

Leading to inflation

Inflation will increase as worker and other shortages lead to wage and cost increases. Initially these cost increases will be isolated to construction and Canterbury, but eventually the increases will spill into other sectors and regions.

Interest rates will rise Our view is that in order to nip inflation in the bud, interest rates will need to

rise from the end of this year. This view is earlier than the Reserve Bank currently anticipates. The Reserve Bank thinks improving productivity in the construction industry in Canterbury will keep a lid on inflation through 2013. We are not so hopeful. We also expect the dollar to remain high. In particular, the earthquake rebuild helps our growth prospects look good compared to other economies, making New Zealand assets, including the dollar, a good bet for international investors.

Rebalancing on hold

Exports will take a back seat over the next few years as the rebuild dominates the economy. Imports of machinery and equipment for the rebuild will also increase. Together, this will widen our current account deficit through 2014 and rebalancing the economy towards exports will be postponed.

ENVIRONMENT

Incentive to use agricultural recycling service Duncan Scotland AgRecovery sales and marketing manager The Agrecovery container programme is again offering $5000 worth of rewards to encourage more farmers and growers to get recycling. New Zealand’s leading rural recycling programme provides free recycling for empty, triple-rinsed, 60-litre or smaller containers, from 59 supporting brand owners. Containers are shredded and recycled in New Zealand into a compliant end-use; a far better outcome than burning or burying on farm. The programme is already well used by thousands of farmers and growers, but Agrecovery hopes the chance to win one of 10 $500 vouchers may be the nudge others need to get started, especially in the pastoral sector, where there has not been the same uptake as in horticulture and viticulture. A similar promotion last year saw a substantial increase in the volume of container plastic collected during the two-month initiative, as well as an increase in the number of new members and people visiting the Agrecovery website to find out more about the programmes on offer. The slower uptake of recycling in the pastoral sector has recently led

ON A ROLL: The Agrecovery programme is strongly supported by Federated Farmers.

Federated Farmers and Beef + Lamb New Zealand to call for the industry to adopt greener, more sustainable disposal of used plastics through the Agrecovery programme. ‘‘Environmental stewardship is critical. Recycling is the one way we can turn a perceived environmental negative into a big positive,’’ Federated Farmers chief executive Conor English says. ‘‘Federated Farmers’ enhanced involvement with Agrecovery continues a strong record of environmental leadership and supports our strategic

plan which seeks profitable sustainable farming. ‘‘It is a big challenge but the work the Agrecovery Trust does provides a practical solution for farmers to improve their environmental stewardship which Federated Farmers strongly supports.’’ The distance required to travel to dedicated landfills meant the convenience of burning or burying has been the traditional waste disposal method for most farmers. Farm burial pits and burning piles are commonplace with all manner of

waste materials, both household and farm related, in the mix. However studies show this results in health risks and negative environmental impacts. Beef + Lamb’s general manager farm Richard Wakelin says New Zealand’s clean-green image and reputation is at stake every day, with consumers increasingly concerned about animal welfare and how goods are produced. ‘‘Keeping the farm tidy and operating to its full potential includes careful and considered disposal of contaminated materials and hazardous substances. ‘‘Simply put, this is good management practice.’’ To take advantage of the Agrecovery promotion take eligible containers to any Agrecovery collection site nationwide during February and March. The promotion is open to new and existing members in all rural sectors and the turf industry. The Agrecovery Container recycling programme is funded by 59 leading agrichemical, fertiliser, dairy hygiene, animal health and biological products manufacturers and distributors, whose empty containers are eligible for free recycling. ■ For more information visit www.agrecovery.co.nz or call 0800 AGRECOVERY

Ph 0800 327 646 www.fedfarm.org.nz

MEAT & FIBRE

February 2013 National Farming Review

INDUSTRY GROUPS

Co-operation the key to PGP David Burt Meat & Fibre policy advisor

Deadline extended The Wools of New Zealand share offer has been extended until 5pm on February 25 to allow growers more time to participate. Federated Farmers urges all wool growers to carefully consider this initiative. If any grower meetings are planned before the closing date, consider inviting a Wools of New Zealand representative to speak.

PLAYING WELL WITH OTHERS: Farming sectors could do well to remember the lessons in co-operation and sharing which form a fundamental part of childhood development.

hensive collaboration ever seen in the red meat sector, involving AFFCO, Alliance Group, ANZCO Foods, Beef + Lamb NZ, Silver Fern Farms, Blue Sky Meats, Progressive Meats and ANZ Bank, Deloitte and Rabobank. Beef+Lamb NZ’s Scott Champion says ‘‘it will refocus red meat to performance, productivity, profitability and the factors we can control’’. Farmers and what drives their profitability is at its core,

benchmarking and integrating relevant databases leading to new tools, services and knowledge. Federated Farmers’ Jeanette Maxwell says in the year to December 2007, red meat exports represented around 58 per cent of dairying’s export value, but 2012’s figure was down to 45 per cent. ‘‘If we had kept up the 2007 percentage, our exports today would be some $1.4 billion greater. A lot rides on this

■ The Prospectus and Investment Statement can be obtained from www.ourwool.co.nz. To enquire about having Wools of New Zealand attend a meeting, contact Mark Shadbolt, 027 432-9506, or Tim Lonsdale, 021 245-5550.

PGP shaping a united value adding export front. If this leads to better returns then farmers will buy into initiatives to grow the sector. ‘‘The current discussion about cutting capacity is the wrong argument. It should be about growing and if that is what Beef+Lamb’s information packs outline, then this PGP stacks up,’’ Maxwell says.

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Co-operation is the best word describing bold plans for both our underappreciated goats industry and also red meat sector. Federated Farmers Goats Industry Group executive now has representatives from Meat Goat New Zealand and Dairy Goat Co-operative. Meanwhile, unprecedented red meat collaboration could come under the Collaboration for Sustainable Growth Primary Growth Partnership (PGP) announced on January 29. Both are positive examples of industries choosing to act and take strength from collaboration rather than let differences divide them. The Federation feels they are important steps forward in order to grow. Both initiatives could be seen as playing well with others. In children, this term marks an important developmental milestone, but in business, this cooperative or collaborative behavior is often subsumed by competitive work cultures or individual pressures. All levy paying farmers will receive information packs from Beef+Lamb NZ. To progress this PGP needs farmers to vote ‘‘yes.’’ The vote closes on March 8. MPI Director General Wayne McNee describes this PGP as the most compre-

LimE L FiELd d ivE ays

2013

dairy FarmErs a farmers field day – showcasing agricultural lime in action on a dairy farm: ! renovated pasture ! Lime vs unlimed paddocks ! a farmers real liming story ! Effluent paddock management

hiLL country FarmErs a farmers field day – showcasing aerial lime on nZ hill country: ! Lime vs unlimed paddocks ! clover on hill country ! hill country data ! aerial lime displays

whErE dave muggeride’s Farm rn# 4224, sh 27

2km north of tatuanui (signposted from tatuanui)

whErE chris and Jayne adams’ Farm Paritikona rd te kuiti (signposted from te kuiti)

whEn 26th Feb, 11am-1pm Free bbQ lunch, Prizes to be won!*

whEn 27th Feb, 11am-1pm Free bbQ lunch, Prizes to be won!*

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Ph 0800 327 646 www.fedfarm.org.nz

D A I R Y , B E E S , G R A I N & S EED

February 2013 National Farming Review

INDUSTRY GROUPS

How is TAF panning out? Ann Thompson Dairy policy advisor Trading Among Farmers (TAF) is now under way after a process which felt a bit like christening a ship and launching it down the slipway. I could say ‘‘God bless all who sail in her’’, but I do not want to under-value this huge venture. This leap into the unknown has been interesting to watch from the sidelines. I have no units or shares, though I wish I had, because I would probably have made a tidy sum. Fonterra’s farmers have much more at stake. They are passionate about their co-operative and have more skin in the game, with activity in the Fonterra Shareholders’ Market and the Fund affecting the share price. So, what has TAF meant for farmers? Those who paid attention in early November, before the launch, took a gamble by buying some shares. Farmers awake enough after the launch to sell the economic rights to these shares as units would have made a tidy profit. However, dairy farmers are only expected to sporadically dip in to see what is happening. They are more interested in their cows’ performance, as reflected in their yield of milk, which they can check via Fonterra’s website. They have little incentive to log on now, as farmers are unable to transfer new units into the Fund at the moment.

EXPANSION TIME: Fonterra wanted Trading Among Farmers to reduce its redemption risk and allow for growth. Some farmers will have been canny enough to make a tidy profit at its launch.

Restrictions, such as unit trading windows for farmers, do not allow full equilibrium to be met in both markets. Federated Farmers is pleased that Fonterra shareholders voted to reduce the cap on the size of the Fund, to limit the amount of shares they can place in the Fund and to limit the

number of dry shares, being those held in excess of the amount needed to match their milk supply, they can own. These restrictions should ensure that farmer shareholders remain in charge of their co-op. At the moment, farmers are able to buy and sell their wet shares, which

Glyphosate resistance found Nick Hanson Grain & Seed policy advisor Farmers and horticulturists in New Zealand were dealt a blow just before Christmas when the Foundation for Arable Research (FAR) announced it confirmed an instance of glyphosateresistance in annual ryegrass on a Marlborough vineyard. This was discovered during a monitoring project led by FAR, part-funded by the Ministry for Primary Industries’ Sustainable Farming Fund. Glyphosate is widely used on farms and also by horticulturists, local authorities and home gardeners due to its effectiveness, low cost and relative safety to operator and environment. Glyphosate has become the weed killer of choice to control vegetation and, in particular, grass weeds. Due to the fast breakdown of glyphosate, repeated applications are often needed between rows of fruit plants, on road sides, along fence lines and in crop margins. It is by far the most used herbicide in New Zealand. This resistance means some individual plants in the target species have naturally developed a means of avoiding the effects of glyphosate. This resistance can then be passed through to later generations. AgResearch scientist Trevor James said the project team was alerted to a suspected case of resistance in autumn, 2011. ‘‘We received a call from a chemical company representative stating that glyphosate was not killing all the weeds, specifically some grasses, on a vineyard in Marlborough,’’ he said. ‘‘We obtained some of the surviving plants and grew them on in the glasshouse until some of them set seed in autumn 2012. The seed we collected was then grown in the spring of 2012,

and these plants treated with various rates of glyphosate, we found that nearly half the tested plants showed symptoms of glyphosate resistance.’’ Recent years have seen an increase in farming techniques depending heavily on the ‘chemical plough’ to control weeds. Techniques such as direct drilling, reduced cultivation and pasture renewal allow farmers to increase productivity and farm more sustainably. ‘‘Environmental repercussions would include the increase use of, and dependence on, less environmentally-friendly herbicide options; greater dependence on more intensive cultivation leading to greater degradation of soil structure and soil health; and the risk of some weeds spreading as the cost of controlling them would increase,’’ FAR chief executive Nick Pyke said. ‘‘On-farm, the impacts would include reduced income, due to increased chemical costs and reduced crop yields. Removing glyphosate from the suite of available chemicals would also increase the resistance pressure on other herbicides.’’ Glyphosate-resistant grass and broadleaf weeds are well established as an economically significant problem for Australian farmers, whose experiences are being used to better inform New Zealand farmers. FAR’s Avoiding Glyphosate Resistance project recently funded a workshop with experts from the University of Adelaide. Project manager Mike Parker said the project will continue to bring together representatives from a range of agricultural and horticultural industries, chemical companies and regional authorities

match their milk supply, with other farmers on a daily basis in the Fonterra Shareholders’ Market. This helps those farmers wanting to enter or exit Fonterra or to balance their production. However, the increase in share price, though expected, is spooking some farmers who think the grass is greener on the other side of the fence, especially if they are new conversions and have the choice of supplying another milk processor. Farmers who need to increase their shareholding to match production will be happy they have three years to share up and no doubt are hoping the share price drops in this time, down from the current highs. Farmers and investors are also able to buy and sell the existing units already on the market on a daily basis, but there are no fresh ones in the Fund, which is creating the price differential between the Fund and the Shareholders’ Market. Currently units are more expensive than shares, due to demand and the lack of a totally fluid market. Opening up the Fund for fresh units would correct this and, given that the Fund is still within the cap and most farmers will not have reached their limit, it is unknown why the trading window for farmers has not been re-opened. All-in-all, this is a very exciting time for farmers and for New Zealand investors in general, with TAF allowing urban New Zealand to make a real investment in the rural sector.

Bee group says caution needed with pesticides Nick Hanson Bees Industry policy advisor

RESISTANCE DILEMMA: A glyphosateresistant ryegrass has been discovered in Marlborough, which could become problematic for cropping farmers, as well as growers and others who regularly use the herbicide to control weeds.

to highlight the problem and formulate both national and sector-specific strategies for avoidance. While work continues overseas and in New Zealand, initial advice is to ensure glyphosate is not the only chemical used on the same paddock year after year. Instead, the group recommends mixing it with a different mode-ofaction herbicide group, every three or four years. This will kill any weeds that may be building up resistance and help break the cycle.

Recent research has implicated a certain family of pesticide, called neonicotinoids, in large-scale bee losses observed in North America and Europe. New Zealand beekeepers have also given anecdotal accounts of significant losses although, as yet, not to the same extent. As a result of this research, many environmentalists and bee advocacy groups have called for a ban on new registrations and a reassessment of existing registrations of these common chemicals. They are most frequently used in New Zealand as seed treatments but chemicals in this family are also available as foliar sprays. Federated Farmers Bee Industry Group (BIG) policy is very much that of extreme caution with these systemic insecticides. The group believes that more research is needed and that at this point there is no credible link between neonicotinoids and hive collapse in New Zealand. For that reason BIG does not promote an outright ban, but does work very closely with the Environmental Protection Agency (EPA) on all applications for new agrichemicals to ensure that any risk to honeybees is mitigated. That is not to say that there is no danger to honeybees from new-generation systemic insecticides. All pesticides pose a risk, which is why farmers and orchardists need to be aware of the risks that their chemical applications pose and take the necessary steps to preserve the health of the honeybee. Among other groups, Federated Farmers is active in advising the EPA on requirements to be displayed on the label so the first step should always be to read and follow the label instructions. In addition to any specific label requirements, farmers should avoid applying any agrichemical directly on to plants in flower where bees are working.

National Farming Review February 2013 www.fedfarm.org.nz

INDUSTRY GROUPS

Ph 0800 327 646

DAIRY

Sharemilking: A great career THE BUSINESS

Prices for members generally range between $50 and $70 for most documents, nonmembers pay the full cost, which is between $150 and $200, depending on the document. Federated Farmers members can access these at preferential rates, just scan the QR code above.

airy farms can be run solely by their owners. Sometimes, however, farm owners want to step aside and let someone else take over running all, or some of, the farm. Federated Farmers has the information, the contracts, the advice and the networks that will enable you to complete this process and run a sustainable and profitable business. There are several arrangements that can be made: ■ Contracting a sharemilker, either ‘variable order’ or ‘herd-owning’ ■ Employing a contract milker ■ Employing a farm manager ■ Employing a dairy farm worker ■ Employing a dairy trainee. Both parties to a contract should do their homework before signing up. Talk to those people listed as referees. Getting the right person in the job, and the right job for you, makes all the difference to your business and career. Industry stakeholders, such as DairyNZ, have a wealth of technical and dairy farm management resources that are also available to you as a levy payer. Make good use of these for the benefit of your productive business.

LEGAL HELP ederated Farmers partners with law F firm DLA Phillips Fox to provide members with excellent advice on all legal

matters relating to their farm business. This includes contract and estate law. The purpose of the freephone service (0800 327 646) is to provide members with a quick ‘heads up’ on various legal issues that might be concerning them. Practical advice on how best to deal with legal issues immediately, or, alternatively, when to seek the appropriate advice from local lawyers is provided to members. A ‘triage’ call is a starting point, but not a substitute for taking appropriate legal advice from local lawyers when required. The calls that relate to sharemilking and contract milking seem to revolve around interpreting various clauses, finding out who is responsible for paying what, dispute resolution procedures and terminating the agreement. Most of the other calls commonly relate to boundaries/neighbour issues, fencing queries (e.g. who pays for fence construction), general commercial problems including the consequences of breaching an agreement or how to go about remedying the situation. In relation to employment, it appears that the most common query concerns disciplinary issues. This is closely followed by questions about employment agreements, Holidays Act queries, general employment and health and safety. Questions about quad bikes are quite common in relation to health and safety.

Uncommon problems facing dairy farmers Some of the stickier situations can be addressed before the issue arises by

NETWORKS Provincial and Industry Support GREAT CAREER: There are many, varied opportunities within sharemilking.

forward-thinking sharemilkers and farm owners. One situation is the amount of supplement left on farm at the end of a contract. This should be discussed and decided upon (and written down) at signup, but often needs re-negotiating around April, when farmers can assess the season. They may be able to substitute the number of bales settled at sign-up with something that provides the same amount of energy for the cow, if the bales have already been eaten due to challenging conditions. A change in management practice can also produce its challenges, which can be discussed with the Federation’s legal team or other experienced farmers in your area. The advent of Trading Among Farmers (TAF) could bring an increase in calls to the legal helpline as sharemilkers come to grips with dealing with the ability for the farm owner to own shares that are not tied to milk production and the ability to change shares on a daily basis, especially where the sharemilker is paid a portion of the dividend. Communication between both parties is key on any farm.

DECISION TIME ach year, many dairy farmers E make a decision about who will milk the cows next season. The ‘Ensur-

ing a viable progression path in the dairy industry’ study, commissioned by Federated Farmers, carried out by AgFirst and funded by DairyNZ last year, set out a series of questions that should be answered before making this decision.

Farm owners

For farm owners, these questions are based on how much day-to-day involvement they want in running their farm, how much of their own capital they want to use for other things and the amount of risk they want to share. This can lead them to choose from sharemilking, contract milking, equity partnership, farm manager, dairy farm worker or dairy trainee type of arrangements. A clear understanding of each of these is required before a decision can be made, and the bare bones are as follows: ■ Equity partners are willing to share in land ownership. ■ Sharemilkers work for a share of the profits gained from the business, while sharing in some of the costs. They may own some of the machinery used. A herd-owning sharemilker brings and milks their own cows on the farm

owner’s land, while a variable order sharemilker milks the farm owner’s cows. This sharemilker is covered by the Sharemilking Agreements Act 1937 and the Sharemilking Agreements Order 2011. ■ A contract milker is usually paid on an agreed number of dollars/cents per kilogram of milk solids produced. These people are not covered by the Sharemilking Agreements Act 1937 or the Sharemilking Order 2011. ■ A farm manager, while having control of the management side of the farm, is a direct employee of the farm owner. ■ The dairy trainee and the farm worker are also employees. Both of these positions will be under the direct supervision of the employer, who may be the farm owner, the farm manager or the sharemilker.

Stepping into or up in the industry The questions those in this group need to answer have to do with money and risk. If they have money and a tolerance for risk, they could choose herd-owning sharemilking, equity partnership, leasing, or farm ownership. If they have no money but are willing to share some financial risk, including milk price volatility, then a variable order sharemilking position may be good. If they are not willing to share in milk price volatility, then a contract milking position may be suitable. For those not keen to take any financial risk, then a farm manager position may be ideal. The trainee and worker positions are excellent for learning the ropes of looking after cows and working on farm. Talk to your banker, accountant, friends and other farmers about what step you should take. Federated Farmers offers contracts for all of these positions.

CONTRACTS arming is a highly complex business F requiring the same legal and administrative capabilities and resources as any

other profession. Federated Farmers has a range of contracts and agreements specifically developed to cover all the legal requirements of running a modern agricultural business. These documents have been tried, tested and have proven their worth. Tens of thousands are used every year by members, especially the employment and dairy agreements.

It is hugely important to the Federation to be able to provide provincial and industry support from farmers, to farmers, around the country. In each of the 24 provinces and seven industry groups that Federated Farmers represents, there is a network of farmers who are willing to help. ■ Your provincial president and provincial representatives ■ Your industry group chairperson or representative ■ Call a policy advisor or board member These people are accessible and able to provide advice and direction. More than 7500 dairy farmers and sharemilkers reap the benefits of being part of the Federated Farmers and industry networks.

ADVOCACY ederated Farmers has a team of more F than 20 specialised policy advisers and subject matter experts whose sole focus is

gaining the best outcomes for farming and New Zealand economic growth. The policy staff are happy to give advice on policyrelated issues, by ringing 0800 327 646. We produce quick summary Fact Sheets, written by policy staff, for members in easy-tounderstand language.

RURAL JOBS o you need D to hire staff or are you look-

ing for work? We have a free and specifically tailored farming recruitment website www.ruraljobs.co.nz. Advertise your vacancy, search potential candidates, or list your own profile for work wanted. This site also provides information on salaries, immigration, employment legislation, ACC and Health and Safety. Customised employment contracts and agreements can be bought online here. ■ Members of Federated Farmers save up to 66 per cent on these products. Visit www.ruraljobs.co.nz to find out more or phone us on 0800 327 646.

Ph 0800 327 646 www.fedfarm.org.nz

February 2013 National Farming Review

ADVERTORIAL

Lime benefits shown Experienced team Sue Edmonds In these days of climate uncertainty and big dries, farmers need to feel confident that their pastures will not only ‘‘hang in there’’ when the weather does unexpected changes, but will also remain green and palatable at all times. This year there will be two Lime Live days run by McDonalds Lime, one on dairy land and one on hill country, proving that it can be done. Waikato Tatuanui dairy farmer Dave Muggeridge has believed in the efficacy of annual liming of pasture for years to achieve enviable profitability and happy cows. He uses annual dressings of 400kg/ h across the whole farm. The ryegrass grows in thick clumps, there is masses of clover and very few weeds, and the pH stays around 6.2. He renovated one paddock and won the DairyNZ pasture renewal three years and older prize for 2013, but finds his much older pastures just as good and profitable. Chris Adams farms bulls and sheep on hill country near Te Kuiti. After trying two years of heavy liming on the bull paddocks, he’s now convinced of the need for annual top-ups of the whole farm. His bulls graze more evenly, seem quieter, and there’s a lot more clover appearing everywhere. Aerial liming is now a practical option

and will be demonstrated on the day. While annual liming shows significant effects from the start, a further step forward comes after about five years, when suddenly there’s clover everywhere, everything is lush, and the urea bill drops by two thirds. And all along DAVE MUGGERIDGE pastures get fully grazed, and milk and beef production rises. If you haven’t seen what lime can do for your farm, your soils and your pastures yet, get along to a relevant Lime Live day this year. Barbecue lunches supplied. ■ February 26 — Muggeridge farm, S/N 4224, SH27, 2km north of Tatuanui, 11am till 1pm. ■ February 27 — Adams farm, 143 Paritikona Road, Te Kuiti, 11am till 1pm.

gets behind event After 60 years in business, Hansen Products is extremely proud to be a Kiwi owned and operated business based in Whangarei, manufacturing and distributing Pipe Fittings and Valves. We also feel strongly about supporting the Northland Community and what better way than to become a Sponsor of the ‘‘Northland Fieldays’’. We first became a sponsor in 2007 and found sponsoring the Northland Fieldays fitted in superbly as the majority of our customers are from the rural sector. This year at Northland Fieldays — running from Thursday, February 21 to Saturday, February 23 — we will be located on the same site as last year, site 224 and 181. Come along and talk to one of our ‘‘Water Product Specialists’’ about your onfarm requirements or see what new and exciting products the Hansen factory has been working on. Check out our Superflo & Maxflo High Performance Trough Valves being put to the test on our Trough Valve display and how they measure up to other trough valves on the market, speak to our Irripod

SUPPORT: Hansen Products is a sponsor of Northland Fieldays 2013.

Irrigation and Effluent Specialist about your farm’s requirements or simply just stop in for a chat and grab some of our ‘‘Show Specials’’. With a true emphasis on quality and reliability and over 60 years’ experience, we have built a reputation for providing high performance, easy to use, innovative and simple products that provide our customers with Best Installed Value. All Hansen products carry a Lifetime Warranty. ■ www.hansenproducts.co.nz

IMPORTANT PHONE NUMBERS

9090042AA

Managing Editor Connor English Ph 04 494 9189 cenglish@fedfarm.org.nz Editor Felicity Wolfe Ph 04 494 9181 fwolfe@fedfarm.org.nz Memberships Miriam Bravenboer Ph 0800 327 646 mbravenboer@fedfarm.org.nz Advertising Lloyd Davy Phone 021 225 4610 lloyd.davy@dailypost.co.nz

National Farming Review February 2013 www.fedfarm.org.nz

Ph 0800 327 646

Classiﬁed Advertising Northland and Auckland

Advertise National or Regional you choose The National Farming Review is a joint publishing venture between Federated Farmers and APN, publishers of the New Zealand Herald. National Farming Review is currently a bimonthly publication targeting the afﬂuent farming sector across New Zealand, the National Farming Review is delivered directly to 80,000 farming properties from Cape Reinga to Bluff. * Northland / Whangarei / Auckland * Bay of Plenty / Rotorua / Taupo * Waikato / Hamilton * Hawkes Bay / Napier / Hastings / Gisborne * Wairapapa / Wellington * Wanganui / Taranaki * South Island / total coverage Each of these regional markets only target your rural region or you can be seen in them all. National classiﬁed Delivered to 80,000 farming properties. Linda Friedrich Ph: 07 577 7770 Ex: 59153 Northland / Auckland Cam Mitchell Ph: 09 470 2882 Cam.Mitchell@northernadvocate.co.nz

Wairarapa Times-Age Andrea Hay Ph: 06 370 0936 Andrea.Hay@age.co.nz

Bay of Plenty / Rotorua / Taupo Heather Yearbury Ph: 07 577 7770 Ex: 59153 Heather.Yearbury@bayofplentytimes.co.nz Mary Kapene Ph: 07 348 6199 Ex: 57068 Mary-Anne.Kapene@dailypost.co.nz

Waikato Lloyd Davy Ph: 07 348 6199 Ex: 57074 Lloyd.Davy@dailypost.co.nz

Wanganui / Taranaki David Shaw Ph: 06 349 0710 ext 50858 David.Shaw@wanganuichronicle.co.nz

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Hawkes Bay / Gisborne Sharon Taylor Ph: 06 873 0822 Sharon.Taylor@hbtoday.co.nz

Christchurch / South Island Vicky Sayers Ph: 03 379 7100 Vicky.Sayers@starcanterbury.co.nz

Bay of Plenty Waikato Rotorua and Taupo District Wanganui and Taranaki

Hawke’s Bay Region

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February 2013 National Farming Review

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LOOK!

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The National Farming Review is delivered FREE to 80,000 rural addresses nationwide Linda.Friedrich@apn.co.nz Or phone 07 577 7770 ext 59153

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Boarding Schools Garin College for your Child’s Future Garin College is a co-educational Catholic College with boarding facilities for boys and girls based in Richmond, Nelson. Our modern facilities and extensive grounds back onto Saxtons Field, Tasman’s premier sporting grounds. Our off-site boarding hostels provide a welcoming and family environment for students away from home. We have a number of places for nonCatholic students.

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..away from home

Home away from home Distance, location, educational choices and religious environments are all choices when sending your child to boarding school. The reasons can be many and varied and choosing the right boarding school for your child can offer wonderful opportunities. Most often, parents place children in boarding school because there is no school within reasonable distance, or sometimes the child or family may be lacking something that boarding school can help develop. Busy, vibrant and stimulating environments, boarding schools offer great experiences for any child and the chance to meet new people, experience new cultures and make new friends. A period in boarding school can be a good experience for any teenager. The duration will depend on many factors, whether for short or long term, boarding can be a very happy situation. Learning new skills such as independence and discipline enables children to maintain the balance of a relatively relaxed, homely atmosphere in which they can be secure and happy. Clear rules exist that govern behaviour while importance is placed on keeping a safe environment .

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In most cases, attendance as a resident boarder results in improved study conditions. Having set hours for supervised study and extra resources available by way of textbooks and tutorial

assistance, boarders can find study easier when others around them are also studying. To a certain degree, life is regimented to a set pattern of schooling, study, recreation, meals and so on, and boarders must learn to accept the demands of a fair system of discipline. For those boarders who have never experienced a stable, secure home environment, boarding school can provide a place of belonging where people care about their attitudes, development, growth and well-being, and boarding school environments can help stabilise emotional security. A decision for a boarder to be a resident must be made with the consent of the boarder themselves, who understands that they will be living away from home in order to gain the best possible education, and understand that they are not being sent away. For many young people, going to boarding school living in a hostel, it is the first time they have spent a significant amount of time away from home, family and friends. There are a number of independently motivated life skills that a new boarder will find helpful if they are to make a speedy and pleasant transition to hostel life. Among these are personal hygiene, picking up and putting away their belongings, a little knowledge of how to sew on a button or name tag, how to budget their funds, fold clothes, sort out laundry

and time management skills. Boarding offers greater opportunities to be involved in school-based, after-school and weekend activities. For students who get fully involved, boarding is great fun and very rewarding. Many schools offer the opportunity for students to return home for weekends and families are invited to take part in school activities and be part of the school community. To ﬁnd out more information about New Zealand boarding school locations go to: www.boarding. org.nz

Ph 0800 327 646 www.fedfarm.org.nz

February 2013 National Farming Review

INSIDER

Parliament

FEDS PEOPLE HONOURED

Is strong wool NATO?

Bills in the House

As at the end of January a number of Bills were before Parliament, at various stages: ■ Building Amendment Bill No 4; awaiting Second Reading ■ Food Bill; awaiting Second Reading ■ Regulatory Standards Bill; at Commerce Select Committee ■ Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters Bill) Bill; at Finance and Expenditure Select Committee ■ Public Finance (Fiscal Responsibility) Amendment Bill; at Finance and Expenditure Select Committee ■ Lobbying Disclosure Bill; at Government Administration Select Committee ■ Local Electoral Amendment Bill No 2; at Justice and Electoral Select Committee ■ Conservation (Natural Heritage Protection) Bill; at Local Government and Environment Select Committee ■ Heritage New Zealand Pouhere Taonga Bill; at Local Government and Environment Select Committee ■ Resource Management (Restricted Duration of Certain Discharge and Coastal Permits); at Local Government and Environment Select Committee ■ Resource Management Reform Bill; at Local Government and Environment Select Committee ■ Land Transport Management Act Amendment Bill; at Transport and Industrial Relations Select Committee ■ Minimum Wage (Starting-out Wage) Amendment Bill; at Transport and Industrial Relations Select Committee.

Other reviews and consultations ■ Safer Workplaces, Independent Taskforce on Workplace Health & Safety ■ Vehicle Licensing Reform, Ministry of Transport ■ Agricultural Vehicle Omnibus Rule, NZ Transport Agency ■ NZ Post Deed of Understanding, NZ Post ■ Improving the Regulatory Standards Bill, The Treasury ■ Local Government Regulatory Performance, NZ Productivity Commission ■ Organophosphate and Carbamate Review, Environmental Protection Authority ■ Road User Charges for Light Diesel Vehicles, Ministry of Transport ■ Review of Government Investment in Industry Training, Ministry of Education ■ Review of Fire Policy, Department of Internal Affairs .

THE OFFAL PIT

JOHN HARTNELL

IAN CORNEY

John Hartnell (North Canterbury) was made a Member of the New Zealand Order of Merit (MNZM) in the New Year’s honours list. John was ‘generalissimo’ of Federated Farmers Farmy Army response following the Christchurch earthquakes. Yet the honour also recognises John’s 30-year contribution to the bee industry, being chairman of Federated Farmers Bees since 2007 and a national board member between 2008 and 2011. Ian Corney (Ruapehu) was made a MNZM and, while known for steering NAIT from concept to reality, he is also a past chairman of Federated Farmers Meat &

Happenings

■ February 10 to 11: Goats council meeting and AGM — South Auckland ■ February 13-14: Federated Farmers Level One Leadership Course, Wellington. ■ February 18 to 22: Dairy field trip and council meeting — Northland ■ Mid-February — 2013 Leadership programme from Level 1 to 3, commences. ■ February 25: Wools of New Zealand offer closes (www.ourwool.co.nz). ■ March 1: The Forest Voice referendum opens (www.forestvoice.org.nz). ■ For a lot more events, see ‘events and training’ at www.fedfarm.org.nz

New provincial presidents Peter Jex-Blake Gisborne-Wairoa Peter has become the new president following the retirement of Hamish Cave. Peter is a fourth-generation Gisborne-born farmer with a wide East Coast network. He

GEOFF NEILSON PHOTO: John Cosgrove

Fibre Industry group and a national board member. Ian is also a former Ruapehu provincial president. Geoff Neilson (Otago) was made a MNZM to recognise his achievement in leading the fight that eradicated hydatids; a disease which claimed 142 lives between 1946 and 1956. Geoff also served as the chairman of the Ovis Management Company (OMC), which aims to control ovis, or sheep measles, in the meat-processing industry, from its beginning in 1992 until he retired last year. Geoff has also been involved with TBfree and other activities in the community. lives in Wainui Beach with his wife Sylvia and runs a diversified business portfolio from commercial property and storage, as well as an intensive 365 hectare beef and lamb finishing farm business, managed by his daughter, Becca.

Peter Jex-Blake

Jamie Falloon Wairarapa Jamie became the new provincial president following Paul McGill taking up a role with Landcorp. Jamie lives in Bideford and farms a 850 hectare drystock propJamie Falloon erty running 8000 stock units. Mr Falloon has an accounting degree from Otago University, a forestry degree from Canterbury University and a Post-Graduate Diploma in Management from Waikato University. He has also worked in the aggregates, forestry and horticultural sectors.

While some Taliban will disagree, there is a joke that NATO really stands for ‘No Action, Talk Only’. I know this will royally get up the noses of some growers but NATO seems to sum up strong wool. While mohair and merino have got their acts together, strong wool resembles a cross between Some Mothers do have ‘em’ and Fawlty Towers. That is what it looks like from the outside. While there have been more attempts at putting the industry together than ‘Rocky’ movies, your industry has reached the last chance saloon. If the Wools of NZ offer tips over it means only Elders Primary Wool will offer any form of farmer involvement beyond the farm gate. If farmers back neither, they face either getting out of dual-use sheep, converting to dairy or concentrating on beef. A fourth exists and that is to get out completely. There is no white knight riding to the industry’s rescue so it is all in your hands. You can either do nothing or you can do something. One ‘do something’ closes on February 25 and that is the Wools of NZ offer. To find out more you can call 0800 687 9665 or go to www.ourwool.co.nz. Alternatively, have a chat with the chairman, Mark Shadbolt, who is available on 027 432 9506, or the acting general manager, Tim Lonsdale, on 021 245 5550. That is how accessible they are trying to be. The other ‘do something’ is to pile into Elders Primary Wool, on 06 353 8200 or www.primarywool.co.nz. Do you want to tell your children that you did something or admit you did absolutely nothing? If you want to be involved beyond your farm gate, these are the only two games left. Do something. PS: Proving this point is farm forestry’s Forest Voice referendum which opens on March 1 (see www.forestvoice.org.nz for more information). ■ The Offal Pit is an opinion editorial not necessarily reflecting the views or policies of Federated Farmers.

Three chances to win green paddocks Federated Farmers hopes all farmers enter the Pasture Renewal Charitable Trust’s Win a Free Paddock competition which closes on February 28. All farmers are eligible to enter for three chances to win $8000 worth of products and technical advice used in the pasture renewal process. This competition will mean three lucky farmers could turn some of their worst-performing pasture into their best performing paddock for free. That is a prize worth much more than the $8000 product value. Federated Farmers board member and New Zealand Grassland Association executive member Anders Crofoot says Federated Farmers is proud to support the trust’s work on pasture renewal. ‘‘It is a core farming activity which improves pasture quality, brings greater productivity, increased returns, improved animal health and

more farm management options. For farmers who do not win a prize, investing in pasture renewal in one or more of their paddocks this season will be one of the best decisions they make in 2013. ‘‘Keeping ahead of the game and ensuring your pasture is healthy means your stock gets all the nutrients they need to produce the best results, whether for milk, meat or wool. ‘‘Pasture renewal is a great way to increase on-farm returns and make your farming business more efficient and sustainable,’’ Mr Crofoot said. The competition will be drawn on March 5. ■ Go to www.pasturerenewal.org.nz to enter. For more information, look for entry forms at rural retailers, or ask their representatives.

GREEN, GREEN GRASS: Get in the draw to get a renewed paddock from the Pasture Renewal Charitable Trust.