National farming review feb 2014

FEBRUARY 2014

Irrigator recovery: How Canterbury farmers are coping after the ‘big blow’ p13

NATIONAL POLICY Policy success Bay of Plenty farmers benefit after intervention on coastal zoning

p3

Land and water plan Ecan nutrient management proposals a worry for Canterbury farmers P5

REGIONAL POLICY Otago Plan 6A Otago leads the way in water quality management strategy P13

Water clarity Why the debate on safe water levels is skewed by inaccurate monitoring and reporting P15

INDUSTRY GROUPS Are barns an option?

How indoor housing for dairy cows could become a reality P19

Meat reform Federation’s industry paper offers options

WATER STORAGE A dam good idea — p10 2COMPOUNDS FLYSTRIKE POWERFUL WEEKS

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PERSPECTIVE

2014: The year ahead

INSIDE

Feature:

A tale of two dry regions . .

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Regulars: Perspective

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National Policy

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Counterpoint . .

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Regional Policy

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6, 9 12

Employment

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Water focus

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Economy

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Weather . .

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Industry groups Insider

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19-21 ..

Managing Editor: Conor English Ph: 04 494-9189 cenglish@fedfarm.org.nz Editor: John Donnachie Ph: 04 470-2162 jdonnachie@fedfarm.org.nz Memberships: April van Dam Ph: 0800 327-646 avandam@fedfarm.org.nz Advertising: Linda Friedrich Ph: 021 225-4610 linda.friedrich@apn.co.nz ■ ISSN 1179-4526

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Water remains top issue in election year, writes Federated Farmers president Bruce Wills.

What will be the big issues of 2014?

Water will again be Federated Farmers biggest issue and no doubt will also be part of the election debate. We remain a grass-fed economy and to grow this grass we need water. We have got plenty of water, we just need to store it to use in times of shortage to ensure our water quality is maintained or improved.

None of this is easy and that is why Federated Farmers has a large team of water experts to help influence policy that both grows the farming economy as well as ensuring that our footprint is responsible and sustainable. We are making excellent progress in all these areas.

The upcoming national election looks like offering a stark choice to rural voters. We work with all parties to influence sensible outcomes for farming and have appreciated largely supportive policies from the current government.

They have been keen to grow the economy and jobs and recognise that agriculture has a very important role in helping New Zealand achieve this.

Although policies are yet to be finalised we are hearing about a concerning number of new taxes from opposition parties; a tax on ruminant stomachs (ETS), BRUCE WILLS a tax on water President (resource rentals) and a tax on property (capital gains tax) to name a few.

I have yet to work out how these proposed new taxes will give us better weather or help grow our economy but be assured Federated Farmers will be working closely with the proponents of any scheme we see as not good for farming. This is what we do.

Interest rates will rise in 2014, this will make New Zealand more attractive to overseas investors and all things being equal will mean a higher cur-

rency also. Neither is good for farming.

We need government, both national and local to live within their means and run efficient and productive businesses.

What we don’t need is election lolly scrambles. We look forward to a return to budget surpluses so that this country can begin to repay its enormous borrowings over recent years. Federated Farmers gives detailed scrutiny to every single council in the country as well as all Government decisions that impact farming. Regularly this scrutiny results in significant benefits for our members.

There are scores of other issues that the team here at Federated Farmers will be working on for the benefit of the farming community. We exist to help our members manage their considerable risks beyond the farm gate. Collectively this strong voice has real influence but the more farmers lend their support, the stronger that voice and the greater the influence. If you are not already a member then a good New Year’s resolution might just be picking up the phone and ringing 0800 farming to see how you can help!

Federal Reserve beyond Bernanke years Federal Reserve chairman Ben Bernanke will have his last meeting in his current role very soon.

The man often described as the second most powerful in America, and one of the most powerful globally, has presided over two terms as chairman of an organisation whose decisions have a direct effect on New Zealand farmers.

Mr Bernanke has presided over an extraordinary time. Since taking his role in 2006, we have seen massive intervention from the Federal Reserve.

In March 2008 he bailed out investment firm Bear Stearns, thus setting expectations that others would be too.

When Lehman Brothers fell over in September 2008 it caused panic.

Then the central banker pumped US$85 billion (NZ$102 billion) into the financial system every month in the hope of keeping longer term interest rates down.

Along with a low US dollar and therefore higher Kiwi dollar, this was achieved. It also saw money wash into stock markets that are now nervous as the

money printing slows down.

The mantra that some banks were too big to fail (‘‘TBTF’’) saw governments bail them out not just in the US, and take liabilities on to CONOR ENGLISH the taxpayers’ Chief executive balance sheet.

The solution to too much debt seems to have been more debt, but by printing money the cost of that debt was cheap in the short term.

However, there is no free lunch. Mr Bernanke’s successor Janet Yellen, and governments around the globe, have a tough job grappling with unsustainable policy.

Interest rates are now rising. From a low base, a rise of say 1 per cent can mean a doubling of the cash required to

pay the interest bill. This will be challenging fiscally for governments.

New Zealand is no different. We too have increased our debt significantly as a nation, as the Government has attempted to ‘‘take the edges off the recession’’.

However, unlike many other countries we are now looking to run fiscal surpluses so the debt can be paid down.

While 2014 is a time to be optimistic we have to temper this enthusiasm with the reality that the globe is a fickle and volatile place.

This year we will have an election where our own monetary policy, tax, water, social welfare, housing, biosecurity, immigration, climate change, rules around investment, amongst many other issues, will be debated.

Critical for good policy outcomes, is the ability to make informed decisions.

I hope 2014 brings us good analysis and democratic discussion on all these issues so that we can continue with confidence to grow as a nation and support our families into the future.

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February 2014 National Farming Review

3

NATIONAL POLICY

Bay coastal farmers benefit

By Gwyn Morgan Regional Policy Adviser — Bay of Plenty Federated Farmers recently had a win for coastal farmers in the Bay of Plenty.

Under the Resource Management Act 1991, a variation was required to give effect to the New Zealand Coastal Policy Statement that became operative in 2010. The proposed changes to the Bay of Plenty Regional Policy Statement were notified through Variation 1 Coastal Policy with submissions closing in July 2012.

Federated Farmers was concerned with existing land use issues that we raised in our submission, further submission and appeal to the Environment Court on Variation 1.

The New Zealand Coastal Policy Statement 2010, states the coastal environment must be identified and appropriately protected. For the Bay of Plenty, that is the entire coast from Tauranga through Opotiki.

The issues we had were not with establishing the coastal environment, because this was a statutory requirement, but the methods used to identify where the line should go.

These concerns relate to maps including land that is currently in primary production such as pastoral farming within proposed coastal environment and areas of significance. The current land use should have been considered and provided for when any variations were drafted.

It is simply not good enough to include all land into a zone just because it falls within a specified measured distance from a mean high water mark.

Federated Farmers supports the identification of zones, such as the coastal environment, as a method for dealing with the differing needs within the broader rural zone.

However, as these zones or areas will attract differing land use controls at regional and district plan levels, we are concerned about the accuracy of the boundary delineations, the criteria for identification and the lack of consultation regarding these areas.

A great portion of the landward extent of the coastal environment is

held in private ownership and contains rural activities.

As such, Federated Farmers believes it is essential that rural activities are recognised to some degree as a part of region’s coastal environment and that all coastal landholders are adequately consulted when identifying those areas of high natural character.

For example, a significance test that applies to a coastal forest may not apply to the adjacent pastoral farmland even if they are the same distance from the coast.

Also enhancement or issues of vulnerability of habitats within or adjacent to privately owned land should be discussed collaboratively with the land owners prior to drafting any policy.

What farmer believes salt spray or being able to hear the ocean from the coastal environment line is an appropriate test on working pastoral land?

When we looked closer at what was proposed, Federated Farmers discovered many of our members could be affected by the new coastal environment. The imagery shows a farm that was going to have 11 per cent of their land in the coastal environment. This was halved with the proposed coastal environment being moved up to 400 metres closer to the coast after Environment Court mediations through our Federated Farmers appeal.

The blue line shows the notified coastal environment line and the yellow line shows the final mediated result.

Some farms had up to 40 per cent of their farms within the coastal environment. In total the proposed coastal environment affected 27 of our members whose total land area represented 2487 hectares with 964 hectares or 39 per cent lying within the proposed coastal environment.

This result more than halved that with hundreds of hectares of land not getting further land use restrictions and essentially being devalued.

Federated Farmers and our members were the only appellants on these maps. You need to be a member of Federated Farmers to get the benefits of our policy work and results like this. These farmers did and they are grateful for the result.

MAP LINES: The blue line shows the notified coastal environment line and the yellow line shows the final mediated result after successful federation advocacy.

As these zones will attract differing land use controls at regional and district plan levels, we are concerned about the accuracy of the boundary delineations, the criteria for identification and the lack of consultation regarding these areas.

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National Farming Review February 2014

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NATIONAL POLICY

National wilding conifers controls

By Mark Ross General manager, policy and advocacy Wilding conifers are a major pest concern for New Zealand’s pastoral farmers and our natural landscapes. The conifers are regarded as escapees from our plantation forests, where seeds have blown onto accessible land and established into weed-like trees.

Pines and other conifers are very hardy — they’re resistant to salt spray, frosts and they only need 600mm of rain per year, so once they’ve escaped they’re hard to control. They compete for pasture and disfigure the landscape — especially in the lower South Island High Country and central North Island.

To overcome the threat of wilding conifers, a non-regulatory national strategy is being developed. A working group of regulators, industry stakeholders and land managers, have been working with the Ministry for Primary Industry (MPI) to help draft a shared vision and a common way forward for those with an interest in wilding conifer management.

Federated Farmers is representing the pastoral sector and is very supportive of a voluntary strategy based on the detrimental effect wilding conifers have on the pastures of many of our farming members.

The voluntary strategy aims to remove barriers and allow for more effec-

tive wilding conifer management.

Areas of focus emerging from the strategy development to date include: supporting the development of a mapping and monitoring framework; improving alignment in operations and policy between organisations; investigating funding sources; increasing awareness and supporting research.

The aim is to ultimately have the strategy formally endorsed by key organisations with an interest in wilding conifer management. The strategy and any supporting recommendations will then be provided to ministers.

The working group has given MPI clear direction on what the strategy will need to deliver and where the main areas of focus should be.

There is general agreement on a good number of proposed interventions that would help improve wilding conifer management. However, further work is still required to understand and seek a solution to several of the more complex and challenging areas.

The NZ Wilding Conifer Management Group and SCION Research have received funding for a three-year programme which will support the objectives of the strategy. This is all very positive as a means of ensuring the future control of wilding conifers.

PEST: To overcome the threat of wilding conifers, a non-regulatory national strategy is being developed.

New Zealand exporters stand to benefit from TPP agreements Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. A four-day ministerial meeting in Singapore during December made substantial progress toward completing the agreement.

Over the course of the Bali meeting, potential ‘‘landing zones’’ were identified for the majority of key outstanding issues in the text. For all TPP countries, an ambitious, comprehensive and highstandard agreement that achieves the goals established in Honolulu in 2011 is critical for creating jobs and promoting growth, providing opportunities and contributing to regional integration and the strengthening of the multilateral trading system.

Based on this, we are optimistic that in 2014 the TPP will be signed off by all countries, thus bringing numerous benefits to New Zealand agriculture.

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New Zealand is a trading nation, with 93 per cent of lamb, 82 per cent of beef and 95 per cent of dairy production being exported.

As an organisation, Federated Farmers is very involved in promoting the benefits of free trade, improved market access and reduction of tariff and non-tariff barriers.

It is agreed that the biggest gains from trade liberalisation would arise from a multi-lateral agreement through the World Trade Organisation (WTO) and the Trans Pacific Partnership (TPP) agreements.

On this front it was pleasing to see that at the ninth WTO Ministerial Conference in Bali, held last December, some decisions were made.

These decisions covered trade facili-

present challenges for New Zealand exporters.

New Zealand exporters will also benefit from provisions relating to perishable goods. These require members to expedite the release of perishable goods to minimise any deterioration. New Zealand was a strong proponent of this provision, given the benefits for our agricultural and horticultural export sectors.

In addition, the agricultural outcomes include new provisions on tariff rate quota administration. These provisions add transparency to the tariff quota system and seek to improve quota fill. They reduce the administrative burden and encourage members under filling their quota to make it available to others.

It is also promising on completion of the Trans Pacific Partnership. The partnership involves Australia,

tation and some aspects of agriculture and development. They bring gains for New Zealand’s exporters, particularly in relation to emerging developingcountry markets.

The Trade Facilitation Agreement will over time help reduce costs and assist the passage of goods across borders, through enhancing predictability and transparency in border processing procedures.

This will generate some practical benefits for exporters. For example, the agreement requires members to publish information on import and export requirements and to issue advanced rulings.

New Zealand’s exporters stand to benefit from the eventual implementation of the agreement in key developing country markets, especially in Asia and the Middle East, where current customs systems sometimes

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February 2014 National Farming Review

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NATIONAL POLICY

International Year of Family Farm

By Mark Ross Senior policy advisor This year has been designated by the United Nations as the International Year of the Family Farm (IYFF).

Family farming is the most dominant form of farming internationally, and is seen as more than a professional occupation as it reflects lifestyle benefits and traditions about living and working.

From a New Zealand perspective a survey carried out on farming in 2012 highlighted that 91 per cent of farmers considered that they were operating a family farming business.

A family farm in New Zealand being defined as one or more farms that are

myself and Federated Farmers’ chief executive Conor English, with the invitation and funding to travel being provided by the European Commission.

Of the European Union’s 12 million farms the majority are family farms, passed down from one generation to another, and contributes to the socioeconomic and environmental sustainability of rural areas.

The main message coming from the launch was how different and advanced New Zealand is when it comes to farming structures.

The Europeans are passionate about retention of subsides so that they can maintain their traditional family

owned and operated by members of the same family.

The concept of family farming covers various elements. From a sociological perspective, family farming is associated with family values, such as solidarity, continuity and commitment.

In economic terms, family farming is identified with profit, specific entrepreneurial skills, business ownership and management, choice and risk behaviour, resilience and individual achievement.

Family farming is the most common operational farming model in Europe and thus of great importance in the European Union. The recent launch of IYFF in Brussels was attended by

lifestyle farm, while the Africans just want more foreign aid so that they can produce food to eat.

The IYYF has the objective of raising the profile of family farming by focusing world attention on its role in alleviating hunger and poverty, providing food security and improving livelihoods, while protecting the environment and biodiversity.

New Zealand is certainly playing its role on providing food for the world and protecting the environment through the family farm.

During 2014 Federated Farmers will be working in with Rural Women and the greater primary sector to profile the New Zealand family farm.

ECan proposals cause anxiety for farmers

By Kim Reilly & Lynda Murchison One of the biggest changes to hit farming in Canterbury in a generation is about to occur following Environment Canterbury’s decisions on the Land & Water Regional Plan (LWRP).

The LWRP puts in place nutrient management rules that effectively halt land use change or intensification may result in increases in nitrate losses over large areas of Canterbury.

While the LWRP rules apply across the region, local solutions can be developed through sub-regional (catchment) plans developed through the zone committees.

However, these sub-regional plans are still subject to the basic tenets of water quality management, including the need to maintain or improve overall water quality, and to set and adhere to limits for water abstraction and discharges. It is unclear whether the region-wide water quality standards can be replaced with local catchment ones. The plan is set to become operative later in the year, subject to any appeals on questions of law.

Federated Farmers has a number of concerns and we are considering whether any of these hold sufficient legal basis for an appeal to the High Court.

Concerns range from uncertainty as to how individual rules will be interpreted — for example, the method for calculating nitrogen baselines and any increase to those baselines, to more considerable concerns about the impact of the provisions on the flexibility and viability of farming operations, including

POSSIBLE FIGHT: Federated Farmers has a number of concerns over Ecan proposals and is considering whether any of these hold sufficient legal basis for an appeal to the High Court.

definition of what constitutes a river or a lake.

As much of Canterbury’s hill and high country is extensively farmed, it would be prohibitively expensive and impractical to fence all such waterways and, given existing water

those at the lowest end of nitrogen loss.

An issue of particular concern for those in Canterbury’s hill and high country is the rule requiring cattle standing in a lake or river to be subject to resource consent. The Resource Management Act has a very broad

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quality is very good in most of these areas, we don’t consider the need for consent has been justified.

There will also be controls on the leaching of nitrates, applying across a wide range of land-use activities. These nutrient management controls will impact farmers with low nitrogen-leaching rates, including many sheep farmers and other dryland operators, many of whom will effectively have their current land use frozen with little capacity to convert, intensify or change practice.

The impact extends beyond potential dairy conversions and could affect farmers’ ability to undertake tenure review, change fodder crops or alter cattle to sheep stocking ratios.

The plan poses significant challenges to the Canterbury Water Management Strategy’s multiple aims of increasing irrigation across the Canterbury Plains while maintaining or addressing water quality.

Our concern is that the LWRP offers no opportunity for dryland farmers to get the additional nitrate loss allowance they would need to take advantage of any irrigation scheme.

Where reductions in nitrogen loss are required, these must be achieved through regimes which are certain, fair and reasonable for farmers to achieve over time.

We will continue to discuss the implications of these rules and our options going forward with Federated Farmers members, Environment Canterbury and other affected parties.

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National Farming Review February 2014

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REGIONAL POLICY

Pest control for primary industries

By Dr Tessa Mills & Dr Lisa Harper Pest control represents a significant ongoing cost for most farmers but recent scientific advances promise better outcomes.

Chemical control agents have come a long way, with much more selectivity now possible. An example is new selective herbicide ‘Puma S’ for use against yellow bristle grass (YBG).

YBG is a significant weed of pasture and crops, especially prevalent in the Waikato. It reduces feed production by up to 20 per cent, with costs for replacement feed or pasture renovation estimated by DairyNZ at $500/ha.

As an alternative to more traditional chemical controls, the development of appropriate biological control agents for key agricultural pests is becoming more common. Put simply, a biological control agent is when one organism is used to control another. Once established, pest control of the target organism continues as long as the population of the control agent is maintained. Such control is extremely selective.

Control of the clover root weevil is an excellent example. Introduced accidentally in the 1990s, it devastated

our clover pastures in many regions. In order to control the clover root weevil, a tiny parasitic wasp from Ireland was introduced and is making a significant contribution to the control of this pasture pest.

Another example is the use of cassida beetles against Californian thistle. Thistle control is a burden for farmers, with chemicals, mechanical topping and lost production estimated to cost close to $200 million annually.

Control is particularly difficult for hill country farmers, where topography may make expensive helicopter spraying the only viable option.

Five years ago, scientists introduced cassida beetles on to farms in Southland. These have proved so successful that Agresearch and farmers have submitted a proposal to the Sustainable Farming Fund to investigate its release into hill country areas of North Canterbury and the North Island. The beetle eats only thistles and when numerous can defoliate plants.

Another Sustainable Farming Fund project in ManawatuWanganui is investigating options for biocontrol of field horsetail. A

fern-like plant native to North America and Eurasia, it has become a serious invasive pest in wetter regions of New Zealand. Traditional control measures are costly and largely ineffective. At present, no selective herbicide is available. Field horsetail has an extensive root system, which enables it to regrow aggressively every year. It can be toxic to livestock, while making hay and silage supplements go rank.

Federated Farmers is very supportive of efforts put into the development of bio-control agents. Working with natural processes often delivers a good long-term outcome. A combined approach of traditional chemical solutions, clever on-farm management and use of bio-control agents needs to be co-ordinated to maximise efficient and cost-effective pest control in our agricultural sector.

SUCCESSFUL SOLUTION: Cassida beetles introduced to Southland have been successful in eradicating the Californian Thistle.

This pest is a burden to farmers with an industry cost of about $200 million dollars annually.

Ph 0800 327 646 www.fedfarm.org.nz

February 2014 National Farming Review

7

COUNTERPOINT

Farming is cornerstone of economy For consumers in our domestic and export markets, food safety and quality continue to be top of mind, writes MPI director general Martyn Dunne Farming remains New Zealand’s dominant economic driver, and seems set to stay that way for the foreseeable future. What we work on right now sets the groundwork for that future.

That future involves innovations and improvements in what we do — both on and off the farm, developing opportunities in markets, ensuring we have the skills and training needed and managing the risks of pest and disease. Also, it involves farmers remaining — in the public’s eye — responsible stewards of the rural environment.

Many of these areas require ongoing investment by both government and industry sectors — working as close partners in the business of farming, export and food. Already the Ministry for Primary Industries (MPI) and industry sectors are doing this well together in many areas.

To further build our work together, MPI is creating a Strategic Advisory Group from industry bodies in the primary production space. Its purpose is to discuss the future of primary production across the spectrum.

An important part of that future involves helping the primary production

sector build its returns from sustainable resource use. Another involves maintaining strong food safety and biosecurity standards.

These are the MARTYN DUNNE pillars our primMPI Director ary sector indusGeneral tries stand on, and a number of recent events reaffirm their primacy.

Maintaining a robust biosecurity system involves managing risk through a balanced set of interventions offshore, at the border and within New Zealand (including individuals taking responsibility for their own on-farm biosecurity hygiene). To help further improve the system, MPI will partner with industry organisations through the Government Industry Agreement for Biosecurity Readiness and Response (GIA).

The GIA builds on MPI’s existing work with industry and regional

councils, and will help ensure decisions about managing biosecurity take into account industry concerns and priorities.

For consumers in our domestic and export markets, food safety and quality continue to be top of mind. These also continue to be a key focus for MPI and Government.

Likewise, animal welfare and the environment are other key areas of focus for us. Both are important to consumers and the wider public, and in some aspects of these, the farming sector is judged collectively in the public’s eye.

For instance, at a national level, we are currently working to strengthen New Zealand’s animal welfare system — to help encourage compliance with animal welfare legislation and so uphold the reputation of our wider industry.

While at a more local level, MPI’s Sustainable Farming Fund invests in projects led by farmers, growers and foresters that deliver economic, environmental and social benefits to New Zealand’s primary industries. One such project that was funded last year aimed to assess nitrate leaching in outdoor

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pork production. At present councils cannot accurately assess the nutrient leaching risks of outdoor units, nor can pork producers make fully informed decisions about good nutrient management. A second project supported by SFF will provide producers with guidelines for good nutrient management on farm.

MPI also supports innovation that aims to build value at a sector level — through the Primary Growth Partnership (PGP).

PGP programmes include transforming the dairy value chain, producing fit-formarket sheep, and helping the red meat sector grow — from paddock to plate. We are all excited by the potential of these programmes.

Another sector challenge is ensuring we have the skills, training and career pathways to support the future primary industries. MPI has worked with industry to initiate a project that will identify likely needs in these areas.

The future of New Zealand’s primary sector is bright and vibrant. It is a future where primary industries remain a cornerstone of our economy, and one that needs our joint efforts in helping drive and shape it.

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February 2014 National Farming Review

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REGIONAL POLICY

Confidence on the rise for most farmers

By Nick Clark Farmers are generally optimistic at the mid-point of the 2013/14 season, according to Federated Farmers’ latest Farm Confidence Survey. 871 farmers took part in the six-monthly survey which asks for farmers views of the general economy, prospects for their own businesses, and their big issues of concern.

Farm incomes are a function of farmgate prices and production. Given that commodity prices are high, especially for dairy products, and weather conditions kinder than this time last year, it is no surprise that more farmers are feeling more optimistic about their own prospects for the year ahead, although the improvement for meat and fibre is only slight.

As with the last survey the overall results mask both industry and regional variations. Dairy farmers are the most optimistic across all the indicators. However, the lack of a meaningful lift in profitability for meat & fibre is concerning following the difficulties these farmers faced in 2013. This is giving further impetus for reform of the meat industry.

Like other businesses and consumers, farmers also feel optimistic about the general economy, although the number expecting further improvement has fallen slightly compared to six months ago. It is notable that a number of farmers have expressed concern in this survey about the prospect for higher interest rates and political uncertainty.

Both could be seen as making the economic environment more challenging.

After lagging behind sentiment levels in the July 2013 survey, prospects for onfarm spending have caught up in this survey. In part this will be a reflection of general optimism about farm incomes, but inflation of input prices is also a concern for some farmers.

Most farmers remain cautious about their debt, with little change in the proportions of farmers expecting to

Given that commodity prices are high, especially for dairy products, and weather conditions kinder than this time last year, it is no surprise that more farmers are feeling more optimistic about their own prospects for the year ahead.

FEDERATION PROFILES

Malcolm Fuller

Bronwyn Muir

Federated Farmers’ Taranaki Provincial President

Federated Farmers Field Officer — Northland

Bronwyn became the Federation’s sixth female president when she took over the Taranaki presidency from Harvey Leach in December. Now in her third year on the executive, she also chairs Taranaki Women in Farming.

A mum of three, she and husband Phil milk 240 cows on their dairy farm on the Eltham town boundary. They also have 6500 stock units on a sheep and beef and dairy support farm at Mangamingi, east of the town.

Bronwyn said her new role was an opportunity to make a difference — ‘‘even if it’s only a little’’ — to ensure agriculture was sustainable for the next generation.

■ Contact Bronwyn: 027 664 5212 or email pbmuir@xtra.co.nz.

Malcolm has a strong background in the meat industry, animal control, agricultural tutoring, and sales.

He is based in Kumeu, North-West Auckland, where he lives with his wife Dianne, two children, and two dogs. He runs a small mob of sheep and does his own shearing and that of a few local lifestyle owners.

He looks forward to the challenge of showing the rural community that Federated Farmers is in a very strong position. He is keen to discuss membership issues, advocacy and what Federated Farmers can offer.

■ Contact Malcolm: 027 475 5675 or 0800 327 646 or email mfuller@fedfarm.org.nz

increase, reduce, or hold debt at current levels.

The agricultural labour market remains tight with farmers’ difficulty finding skilled and motivated staff at a similar level to this time last year.

Regulation and compliance costs remain the biggest issue of concern for farmers. This is particularly the case for dairy farmers grappling with the implications of new or proposed regional council policies and plans for water quality and water allocation. Among Meat & Fibre respondents there remains widespread disillusionment and frustration with the state of the meat industry. Farmers’ highest priority for the Government remains fiscal policy; that is, a return to surplus, containing or reducing government spending, and/or reducing government debt. This is followed by reducing the costs of regulation and compliance.

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National Farming Review

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Ph 0800 327 646

FEATURE

Dams — A tale of

The link between water and economic growth has never been more visible.

Regions with access are flourishing. For Hawke’s Bay, a traditional farming region, limited water resource hinders development and social wellbeing. The Ruataniwha dam could change its fortunes, writes John Donnachie.

Mid-Canterbury has it and Hawke’s Bay wants it: water, the life-blood of farming.

As global demand for quality crop produce increases, so the desire for water becomes critical.

The regions have much in common.

They are unashamedly dependent on the primary sector with many hectares of potentially highly-productive plains, suitable for intensive farming and horticulture.

They are, however, vulnerable to El Nino patterns and subsequently prone to droughts, which is where disparity in the economic health of both regions begins to unravel.

Hawke’s Bay faces some big decisions towards prioritising water after catastrophic droughts in 2007 that cost the local economy $326 million, and last year, (the worst in 70 years) which devastated crops and livestock.

Add to that the global economic downturn, that hit the horticulture industry, and a high Kiwi dollar, which slashed commodity prices in beef and wool, and the region’s economic

DRY LAND: The site of the proposed Ruataniwha dam in Central Hawke’s Bay.

IN FAVOUR: Federated Farmers’ Hawke’s Bay president Will Foley says the Ruataniwha dam would breathe life into the whole community, with capital investment and the jobs it would create.

THOROUGH: Hawke’s Bay Regional Council chairman Fenton Wilson rejected suggestions the location of the proposed dam was not properly investigated.

fortunes are in decline, leaving it at a crossroads.

Despite abundant natural and physical resources, and a healthy infrastructure, the province continues to experience stagnant growth, with unemployment exceeding the national average (8.6 per cent) and an ageing

population. Throughout the last decade, Napier and Hastings have experienced periods of slow population growth, while Central Hawke’s Bay and Wairoa communities steadily dwindle.

Mid-Canterbury, meanwhile prospers, fostered by the foresight to

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innovate and irrigate its vast plains.

School rolls are increasing as more people choose to settle in what was once considered a region with few opportunities.

Unemployment is below 1 per cent.

Since 2001, its GDP has exceeded the national average annually, with Ashburton registering a GDP increase of 11 per cent.

Such a scenario in Hawke’s Bay seems remote, but there is salvation in the shape of the proposed Ruataniwha dam, says Federated Farmers’ Hawke’s Bay president Will Foley. ‘‘It would breathe life into the whole community with capital investment and the jobs it would create. The local rural community is in a ‘depressed state’ after a succession of droughts. If this continues we will see more business closures and population decline.’’

Mr Foley recalled the frustration of knowing that tens of thousands of lambs prematurely left the drought-ravaged region for the South Island last year.

The outcome affected farm incomes and freezing workers lost jobs.

He believes a dam would prevent another calamity and act as insurance against future droughts.

Ph 0800 327 646 www.fedfarm.org.nz

February 2014 National Farming Review

11

FEATURE

two dry regions SALVATION: Ashburton Mayor Angus McKay says irrigation has transformed the district’s economy.

to establish safe nitrogen and phosphorous levels.

Research indicates that phosphorous from Central Hawke’s Bay sewage ponds is the ‘‘major contributor’’ to the river’s deteriorating health, causing excessive algae and slime growth. It was anticipated that reduced levels would prevent pollution and safeguard existing ecology.

The regional council evaluated the process towards achieving safer phosphate levels as cost-effective, with timeframes reasonable to effect change without impacting on the local community.

As an additional safeguard, the regional council has ‘‘volunteered’’ a nitrogen cap on production land within the Tukituki catchment, to address dam opponents’ claims that toxicity levels would increase.

Dam planners also had a strategy to maintain river quality with smart management ‘‘flushing flows’’ where fresh mountain water would be released to tumble rocks to eradicate algae and slime from riverbanks.

Mr Wilson rejected suggestions the location of the proposed dam was not properly investigated. ‘‘We have actually drilled at 20 different sites before deciding on this one. The site certainly has its challenges, but I can tell you it is the most examined piece of land in the whole of Hawke’s Bay.’’ Dam opponents, including Forest & Bird and environmentalists, are concerned the dam will flood podocarp

LIFEBLOOD: The South Canterbury dam generates 7.7 megawatts of electricity, bringing permanent water flows to the previously summer-dry Opihi River.

The Ruataniwha dam is expected to cost around $270m with projected economic annual returns of $250m. It would have capacity to irrigate 25,000 hectares, generate 6.5 mega watts of electricity and supply 3000 houses with renewable energy.

Hawke’s Bay Regional Council chairman Fenton Wilson described the dam proposal as a ‘‘positive’’ process at a pivotal time. It had support of the business community, employment agencies and Ngai Tahu. ‘‘The [83-metre high] dam will allow for large tracts of the plains to be irrigated. We have reached our water allocation of between 5000 and 6000 hectares. This will get us over 20,000 hectares at least. ‘‘The flow-on effect is huge. At least 2000 jobs would be created, that would help Central Hawke’s Bay and Hastings where there are distribution and processing plants,’’ he said.

The transport sector would also benefit, with increased volumes as a direct result of more productive farming.

Consultancy McGredy Winder & Co describes the project as ‘‘the single biggest economic development opportunity currently available to the region’’. ‘‘[It would] increase [primary] production and capture value within the region.’’

Despite recent criticism of the resource consent process, Mr Wilson said the proposal was carefully scrutinised by the regional council. It sets out a sensible option, derived from finding more viable and alternative ways to improve the Tukituki River catchment. ‘‘The environment was certainly a driver as the water quality drops during the summer with low flows and dry spells. We also simply do not get enough rainfall at crucial times to ensure growth and this affects our horticulture industry,’’ he said.

Critics of the proposed dam fear the environment will be affected, with native flora and fauna threatened due to nutrient oversupply. There is also concern about the project’s construction costs and debt to be incurred by the council, as well as the price of water for participating farmers, should the project be completed. ‘‘We are conducting a robust process. Let us get through the board of inquiry first. There are some hard questions to be answered. We are aware of affordability issues and are doing everything conceivably possible to get this across the line,’’ he said.

Hawke’s Bay Regional Council, NIWA and the Cawthron Institute have worked closely together to develop modelling for the Tukituki River

forest, endangering native species. They also expect a sudden explosion in dairy farming.

However, the board of inquiry was investigating flood risks and until all the information was in, there was no point in speculating on such scenarios, Mr Wilson said.

Moreover, a report by farm consultant Andy Macfarlane predicts dairy will account for around 38 per cent of farming with the remainder still arable, alongside meat and fibre. ‘‘Given the cost of the water and its huge use of irrigation, I doubt dairying will expand over the plains. In fact, I suspect it will be reduced,’’ farmer and former regional councillor Ewan McGregor remarked. ‘‘Land holdings on the Ruataniwha Plains would be large. I suspect largescale annual food crop will predominate if it is built,’’ he said.

Mr Wilson agrees. ‘‘The dairy farmers will have to pay for every cubic metre, like everyone else. They will have to compete with other land-users, such as cropping farmers who may have fewer costs.’’

The threat earthquakes posed was also under consideration, with specialists drilling and examining rock structures using overseas data to be ‘‘as confident as they can be’’, on how the dam can be built. ‘‘Put it this way — the quake risk can only sharpen the focus on this project.

Nothing is insurmountable. It can be done,’’ Mr Wilson said.

Mid-Canterbury’s main town, Ashburton, has been described as the ‘cooperative capital of New Zealand’ with more than 40 companies, including Fonterra and Silver Fern Farms.

Ashburton district has reportedly the second-fastest-growing economy in New Zealand. Over the past seven years its population has reversed provincial trends by becoming increasingly younger, while growing at 13.4 per cent.

The region’s resurgence has been linked to the insatiable drive towards dairy conversion, from traditional sheep and beef farming.

However, that’s not the catalyst. The principal cause relates to farmers being able to produce higher value for their land, thanks to irrigation.

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National Farming Review

February 2014 www.fedfarm.org.nz

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FEATURE

Irrigation’s power to transform ■ Continued from page 11 Ashburton Mayor Angus McKay said it was no secret that irrigation had transformed Mid-Canterbury’s economy. ‘‘The beauty is you do not have dry spells when you have irrigation. It gives certainty,’’ said Mr McKay. It was ideal for growing vegetables and, above all, guaranteed product to the end user. It’s not surprising then that Ashburton district produces half the world’s radish seeds and around a third of its carrot seeds.

Mr McKay said the district’s growth was evident through the new businesses it had attracted, along with traditional primary industries. ‘‘Irrigation sells whiteware and beds.

Look, major retail chains have come to town. We had Mitre 10 now it is Mitre 10 megastore, such is the demand,’’ he said.

Farmers were also reinvesting in the land. The addition of dairy and vegetable sheds to existing properties meant more houses were needed for workers and their families.

The whole district was vibrant and booming as a result of a thriving rural sector. ‘‘All the money stays in the community. When farmers borrow to develop irrigation and horticulture, the money is reinvested in the town, as jobs are

‘‘When farmers borrow to develop irrigation and horticulture, the money is reinvested in the town.’’

Ashburton mayor Angus McKay created in service delivery which means the new employee is first to benefit,’’ said Mr McKay. An often-propagated notion that greater irrigation inevitably leads to more intensive dairy farming is challenged by Federated Farmers’ Mid-Canterbury President Chris Allen.

The sheep and beef farmer says while dairying has markedly increased on the Canterbury Plains, the conventional elements of the primary sector still prevail. ‘‘Dairy farming won’t come by itself. It will need other industries and services to support to it, like cropping

farming. A lot has changed here in 20 years; there is a lot more diversity happening and the region just grows and grows.’’

Support towns had benefited immensely, with new sport centres, swimming pools, museums and art centres. School rolls were up 30 per cent in some places.

Mr Allen said dairy conversion was not something Hawke’s Bay should fear. It was already a slick and innovative operation. ‘‘The sheds and ponds are essentially state-of-the-art investment. It also involves developing new infrastructure,’’ he said.

If detractors still need convincing they should look at the Ophua Dam, just a short distance away in South Canterbury. Irrigated farms there support twice as many jobs as the dryland equivalent, or 30 more jobs per thousand hectares irrigated.

It irrigates and provides water to local towns, including Timaru, generating 7.7 megawatts of electricity bringing permanent water flows to the previously summer-dry Opihi River.

Around 50 per cent of the water released from the dam provides environmental supplementary flows within the Opihi River.

Ironically, the site is recognised by

Birdlife International as it supports the breeding colonies of native endangered species.

The lake has also provided recreational opportunities and the fisheries are described as being in healthy condition, with local anglers comparing fish sizes to what they were decades ago.

Central Hawke’s Bay communities, and tourists to the wider region, may too enjoy the recreational benefits a dam reservoir provides in the future. A decision on the proposal is due within the next six months and the first stage could be completed by 2017. ‘‘There are people rightly nervous about this, but we are looking at all the risks. All we want to do is regenerate and revitalise our region and rural communities,’’ said Mr Wilson. ‘‘This is a very important and longterm venture. The initial high costs will diminish with the value of water. The economic implications will be considerable,’’ Mr McGregor said.

Hawke’s Bay farmer Will Foley remains positive and confident that the project will happen. ‘‘If you look back through history, many other industries have progressed through mitigating their impact on the environment by adopting new technologies. We as a community can also improve and find solutions.’’

EMPLOYMENT

Quad-bike safety on farms is an obligation

By Emma Coburn & Nicholas Lawrence The New Zealand public, especially those who live in rural areas, often watch with sadness and horror when a quad-bike related tragedy occurs on a farm.

Most recently in the media was the tragic death of a six year-old boy in Southland in early January, which highlighted the dangers of a child riding a full-sized quad-bike. Tragedies like this also raise the question of who is responsible for ensuring the safe operation of quad-bikes on farms.

A number of organisations have recently increased their safety awareness programmes in relation to quadbikes in rural areas in an attempt to reduce the number of accidents.

While awareness of the danger of quad-bikes has risen, many farmers are now left wondering how they can ensure safe practices on quad-bikes, and what rights and obligations they have as owners, operators, and employers in relation to quad-bikes on farms.

The law which governs the responsibilities of farm owners, employers, employees and those in control of a place of work is the Health and Safety in Employment Act 1992.

An employer or person in control of a place of work has an overarching duty to take all practicable steps to provide a safe working environment for employees and any other persons on the farm riding or around quadbikes. ‘‘Other persons‘‘in this context includes children on the farm.

The duty requires the minimisation of any potential hazards, which can be achieved through a range of measures from providing safety equipment such as helmets, to maintaining the bike in a good state of repair.

For employers, this may also include having specific policies around

SAFETY FIRST: With media attention on quad-bike safety, many farmers are left wondering how they can ensure safe practices on their properties.

the use of quad-bikes, like with loads.

It may also include a general ban on children under the age of 16 as passengers (on suitable bikes) or as riders. A breach of these policies can then lead to disciplinary action.

Also important is preventative measures, such as adequate training and education on how to properly ride a quad bike. A failure by a farm owner to ensure an employee can competently ride a quad-bike before being allowed to do so may result in liability being imposed upon the farm owner in the event of an accident.

A number of employers have been prosecuted for failing to properly equip or train their employees to ride quad-bikes. Recently, an employer was fined $78,000 for failing to take

all practicable steps to ensure an employee’s safety after only providing him with a 15 minute tutorial and no safety equipment before his first quad-bike ride, during which he crashed and subsequently died.

WorkSafe New Zealand has four safety steps for anyone riding quadbikes as part of their Agricultural Sector Action Plan. These are: ■ Riders must be trained/experienced enough to do the job.

■ Choose the right vehicle for the job — especially when carrying passengers.

■ Always wear a helmet.

■ Do not let kids ride adult quadbikes.

A failure to comply with these safety steps would likely be an

An employer, or person in control of a place of work, has an overarching duty to take all practicable steps to provide a safe working environment for employees and any other persons on the farm riding or around quadbikes. indicator that a farm owner, employer, or person in control of a workplace has not taken all practicable steps to ensure the safety of quad-bike users.

Quad-bike safety is about lifelong education and training to get farmers and recreational users to truly own the issue.

That starts by adhering to WorkSafe NZ’s ‘four rules’, as well as ensuring adequate safety equipment and training is provided for users.

These things would help to ensure that farm owners or employers limit their liability in the event of an accident.

■ If you have any concernsor specific questions about your health and safety obligations or quad-bike safety in general, call 0800 327-646 (0800 FARMING) to get free, independent legal and employment advice.

Ph 0800 327 646 www.fedfarm.org.nz

February 2014 National Farming Review

13

WATER FOCUS

The big blow — lessons learned At the end of this season, farmers should take time to work out where to park your irrigators for next season, bearing in mind that the trees you settle behind, may well end up falling on what you are trying to protect.

By Vaughan Beazer North Canterbury dairy spokesperson We are still in recovery mode after the devastating winds that ripped through Canterbury last spring. The storms downed countless trees and toppled hundreds of irrigators. As we reach midsummer the good news is there are just a few that still require repair.

In terms of damage it was the third worst on record, creating a year’s worth of work in just a few hours. An estimated 800 irrigators were affected with total storm damage in Canterbury exceeding $74 million.

FMG insurance estimated irrigator damage at $7m based on around 250 claims they received. Overall they valued insurance costs at $16m. That said, the recovery has been impressive.

Ashburton-based Rainer Irrigation, who fixed our irrigation system, have themselves repaired 180 large Briggs irrigators, at an average of five per day, and they have used 12km of pipe and assembled over 200 pivot spans.

To do this required hiring an additional 20 staff, rental vehicles and importing a specialist team from South Africa. Above all, there is the issue of replacement parts; you simply can’t keep that much stock on hand.

It either has to be built or imported from other suppliers overseas and both options require time.

So at the end of this season, farmers should take time to work out where to park your irrigators for next season, bearing in mind that the trees you settle behind, may well end up falling on what you are trying to protect.

This makes it all the more challenging, for when the wind is blowing the last thing you want to go near are trees and irrigators that might topple and fall at any moment.

What the big blow brought to our attention was that most of us were well

COSTLY: There was widespread damage to irrigators throughout Canterbury after last September’s storms with insurance costs exceeding tens of millions.

prepared for a lack of power at the dairy shed but not so when it comes to our stock water systems.

We had a number of loaned generators available to us at Federated Farmers and we spent several days helping co-ordinate those in need, with available generators. However, a lot of these generators came with instruction that, ‘‘the plug was to stay on’’, and rightly so, as once you hard wire a generator to anything, it’s no longer mobile.

This meant that anyone requiring their system or shed to be hard-wired were out of luck and those with the pre-wired plug available were sud-

denly elevated up the list. The lesson being, while you may not be able to afford a generator, you certainly can‘t afford not to have the wiring for a generator.

Another issue was communication as some areas were cut off by power and phone for nearly a week. So make sure you have a car charger for your cellphone, to avoid texting in the dark.

This is not only good for morale but is also essential for keeping informed.

It’s also worth remembering that these events caused severe stress to some of our members. As with time, the public attention fades, the adrenalin runs out, and the body and mind

tires. That’s the time for us as fellow dairy farmers and Federated Farmers’ members to step up and drop in on some of our worst affected friends and neighbours, to lend a hand or more than likely an ear.

Also, take time to review your insurance policies, to understand what you are covered for and what you will need to do when it happens again.

It may seem like these adverse events come out of nowhere, but we need to remember that here in Canterbury in the past seven years there has been a massive snowfall, earthquakes and now a wind storm that knocked out power for a week.

I’m not sure what will be next to cut our power but on average there will be something every two to three years.

What plans do you have for the next outage?

Plan Change for water heralds positive outcome

By Kim Reilly South Island regional policy manager Over the past two years Federated Farmers has had considerable involvement in the Otago Regional Council’s Plan Change 6A, which makes changes to the water quality provisions of the regional plan: Water for Otago.

The council’s approach to the Plan Change has shown they don’t want to tell farmers how to farm, but instead want to focus on the standard of water quality coming off a farm.

A benefit of this approach is it leaves decisions on how best to meet standards to the relevant land user. This provides an opportunity to develop solutions that best suit individual circumstances, encouraging innovation in environmental management.

However, details are also important and there were specifics within the council’s decision that motivated 21 separate appeals to the Environment Court. Court-assisted mediation occurred in August and September of 2013, and a number of discussions continued between appeal parties and with the council from that date.

It became clear during mediation, the benefits in primary industry appeal parties working together to identify common interests and bottom-lines.

Federated Farmers worked alongside Fonterra, DairyNZ, the Fertiliser Association of New Zealand, irrigation companies, HorticultureNZ and individual farmer appellants and their legal

SETTING STANDARDS: Otago Regional Council have opted not to set regulatory demands on farmers with their water quality strategy. They instead want to focus on the standard of water quality coming off farms.

representatives to ensure a range of interests were considered. We also continued to meet openly with the council and other interested parties.

Resolution outside court has now been reached for all 21 appeals, which is a huge testament to the work carried out between the council and all parties to find appropriate and workable solutions.

From the outset, all parties shared a common goal — good water quality for Otago. Final changes to the plan’s policies, rules and nitrogen leaching limits have ensured that, while the plan is more appropriate and workable for Otago farmers, the ‘end goal’ of good water quality is still respected.

In addition to these wording changes, a number of considerable

changes helped to resolve the Federated Farmers’ appeal. A major concern for us had been the lack of appropriate scientific and economic analysis underpinning nitrogen loss rates.

As a result of mediation, the council agreed to review these rates, starting with the 20kgN/ha/yr areas and moving on to other areas where there are environmental pressures or a real risk of non-compliance. This prioritised work is to be completed before 2020, when nitrogen leaching limits apply.

For those farmers following best management practice, who are still unsure whether they can meet either their nitrogen loss rates or water quality indicators by 2020, a clearer consenting pathway has now been established.

This should provide for a greater level of investment certainty, with farmers able to apply for either a five-year restricted discretionary consent (applying from 2020) or a possible 35-year discretionary consent where it is shown to be appropriate and necessary.

Federated Farmers’ interests in this process do not end here. Soon we will take part in the establishment of a stakeholder reference group and will continue to meet with the council and other stakeholders to ensure the implementation phase to the plan change is successful.

Work will commence on the council fact sheets, flow diagrams and field days to provide better information to plan users throughout 2014.

MANAGING H E A L T H Y E N V I R O N M E N T,

STRONG ECONOMY Having adequate quantities of high quality water is at the core of this country’s economic and environmental performance.

This is particularly true in Waikato with its nationally significant dairy sector and key water bodies such as Lake Taupō and the Waikato and Waipa rivers.

For environmental and cultural reasons there is increased

pressure to protect water quality from the impacts of farming.

One of Waikato Regional Council’s main tasks is to manage water resources and farming’s impacts to support both environmental and economic goals.

The council, along with iwi partners and the likes of the dairying sector, are taking a multi-faceted approach to working through the issues.

A MIXED PICTURE Water quality trends in Waikato rivers paint a mixed picture, with improvements in some measures but important declining trends when it comes to nitrogen content, clarity and turbidity.

A report last year from Waikato Regional Council water scientist Bill Vant, analysed 20 years of water quality data from 114 monitoring sites on the Waikato River and other regional waterways.

For the Waikato River, there was a significant deterioration in nitrogen and turbidity in more than 75 per cent of monitored sites, and in clarity in more than half.

Nitrogen levels had also deteriorated significantly in more than half of sites on other waterways, and in more than 25 per cent of sites for clarity and turbidity.

However, on the Waikato River there were significant improvements in ammonia and chlorophyll in a clear majority of sites, while total phosphorus was either significantly better or stable on all Waikato River sites.

E. coli bacteria levels were stable at most sites, but with a number of significant improvements as well as a few significant deteriorations at others.

“While the region can take comfort from either improvements or no declines in a range of water quality indicators, the significant deterioration trends around nitrogen, clarity and turbidity in many places are concerning and must be managed,” said Mr Vant.

Run off and leaching of nitrogen from areas of pastoral farming probably accounted for much of the deteriorating trends when it came to nitrogen in waterways, he said.

Even though E. coli levels were mostly stable, they still exceed national contact recreation guidelines in many rivers around the region. But nowhere are monitored E. coli levels at extreme concentrations. Also, levels of E. coli in the Waikato River at Hamilton are now more than 100 times lower than they were in the 1950s.

WATER

SMARTER

Variation 6 to the Waikato Regional Plan deals with significantly increased pressure on freshwater resources, including growing demand for clean water.

The new rules strike a balance between managing the adverse environmental effects of too much ground and surface water use, and giving people – such as dairy farmers – the ability to use water in an environmentally sustainable way.

The rules set allocation limits and minimum flows for all rivers, streams, drains, lakes and springs.

Groundwater takes are also limited by volume, and where consent for such a take is required, consideration will be given to how it would affect waterways, other neighbouring bores and the sustainability of that groundwater resource.

Find out more about Variation 6 by visiting www.waikatoregion.govt.nz/watertakes Through this process many farmers are taking the opportunity to look out how they can use water more efficiently, with positive outcomes for the environment and their pockets.

One of the key tools that can play a part when looking at efficiencies is water metering.

Another thing for farmers to consider is that if less water is used for shed wash down then less storage capacity is required in effluent storage ponds, reducing the risk of applying effluent to land at inappropriate times. For example, when soils are already saturated.

Transfers of allocation rights are also possible, although they do need to be assessed on a caseby-case basis.

It may also be possible to store water not needed immediately so it can be used at a time of maximum advantage or transferred to another user. To explore these options, talk to the council.

More information: www.waikatoregion.govt.nz/forfarmers

The full report is available at www.waikatoregion.govt.nz/tr201320

14 THE 20

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WORKING TOGETHER FOR FRESHWATER Tapping into the Waikato region’s collective wisdom is the approach being taken to finding solutions to issues affecting the health of the Waikato and Waipa rivers.

A 25-strong, high calibre Collaborative Stakeholder Group has been formed as part of the Healthy Rivers: Plan for Change/Wai Ora: He Rautaki Whakapaipai project.

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February 2014 National Farming Review

15

WATER FOCUS

Mixed messages over water quality

By Gary Bedford Director environment quality Taranaki Regional Council When it comes to recreational use of freshwater, are we swimming in mixed messages?

Fairfax reported that ‘More than 60 per cent of monitored rivers in New Zealand are unsafe for swimming according to Environment Ministry figures’. Dr Mike Joy from Massey University reportedly stated that 95 per cent of New Zealand’s lowland rivers fail the bathing standard due to pathogens. And the Consumer organisation claims that gradings applied to bathing spots are more meaningful than actual water quality analyses.

To add to the confusion, monitoring is not undertaken or reported consistently inter-regionally or at a national level. If a site fails to meet the bacteriological standard, that doesn’t actually mean it is ‘unsafe’. And there’s a degree of ignorance, and/or political grandstanding, over how good or bad NZ’s freshwater recreational spots actually are.

What’s the real story?

The bible for freshwater recreational monitoring is ‘Microbiological Water

Quality Guidelines for Marine and Freshwater Recreational Areas’, published by the Ministry for the Environment and the Ministry of Health in 2003.

The guideline is that no single sample should exceed 550 E coli per 100 mL. If this number is exceeded, then the public is to be warned of a potential health risk. At this level, the calculated health risk is that one bather in 20 would pick up a Campylobacter infection. Or to put it another way, 19 in 20 bathers wouldn’t. The criterion is a single point along a continuum of incremental risk. There is no sudden switch from ‘safe’ to ‘unhealthy’.

Samples are also to be collected ‘when people are bathing’. Hence there is debate over whether sampling should occur during just fine weather or any weather, and during the bathing season or all year round.

The Guidelines also set out a methodology for categorizing sites. It considers the surrounding land use, catchment inspections, and the worst of sampling results found over the preceding five years. Sites are then labeled from ‘very good’ to ‘very poor’, language which is meant to indicate the worst case (precautionary) scenario for health risk, but unfortunately implies the actual prevailing quality of bathing sites.

A recent report on bathing sites in NZ by MfE focused only on categories of freshwater sites, not the measured data. This became the trigger of some headlines noted at the start of this article. The Ministry did advise within its report that the categorisation: ■ does not represent an accurate picture of water quality in the catchment ■ reflect a precautionary approach to managing health risk ■ are not designed to represent health risks on a particular day.

■ tend to reflect the poorest water quality measured at a site rather than the average water quality.

■ A site may be graded as poor but still be suitable for swimming much of the time ■ does not replace the site-specific information available on council websites.

There can be big discrepancies between categories and quality. For example, sites within intensive agricultural catchments will inevitably be graded ‘poor’ or ‘very poor’, even when the water quality is excellent. The categorisation processes do not account for land management practices that enhance water quality (e.g., riparian exclusion, waterway crossings, and riparian plantings). In Taranaki,

four sites have never exceeded water quality standards in the last five years, yet all must be rated ‘poor’ or ‘very poor’ as bathing sites according to the Guidelines.

Where to from here?

There are a number of issues, some around science and some around communication.

■ E coli counts are probabilistic, not absolute, indicators of something nasty in the water. Emerging techniques for directly detecting pathogens take more time, cost much more, and are still only probabilistic, not absolute, in nature.

■ There are bathing water quality risks other than faecal microbial contaminants (e.g. some cyanobacteria) which aren’t well-sorted yet.

■ The Guidelines are for popular highcontact recreation. What about kayakers or kids paddling in the shallows?

■ How do we usefully and clearly communicate risk?

In a world demanding ever-greater certainty and less risk, there is obviously much to do. A review of the 2003 Guidelines is underway. Will it eliminate the bugs?

■ Published in Waiology — science of New Zealand’s freshwaters

UNEARTHING POTENTIAL The GO! Project is a Tararua District Council initiative that has identified several crop options that are highly suitable for the district.

The aim of the project is to provide meaningful information for people wanting to diversify their cropping and broaden their potential revenue base.

Tararua District Council and Tararua Businesses are of the view that the district has a great lifestyle that needs promotion in order to attract more residents. Stimulating local business and supporting initiatives that lead to increased job opportunities are both vital strategies for the long-term future development of our region.

“increased opportunities for job creation” The GO! Project information is intended for smallholders, lifestyle block owners and farmers looking for alternatives to traditional crop options. The GO! Project offers the Tararua District community increased opportunities for job creation, biodiversity, sustainable farming systems and increased family business incomes.

Tararua has a very valuable agricultural profile and with help from NIWA, HortResearch and Crop and Food Research, information has been compiled relating to valuable climate, soil and topography data for the district.

Council has developed a marketing and promotional approach to extend this project - adding crucial connections by providing links for market development.

The crops included so far are Feijoa, Hazelnut, Flax and Saffron. The base data is also available for Ginseng, Truffles, Gevuina, Goldenseal, Valerian and Rootstock Grapes.

“Tararua has ideal geographical and climate conditions” Flax (Harakeke) are native to New Zealand and once formed significant corridors across the country. Flax has been removed from large areas of the Tararua District.

The process of removing flax for various reasons has reduced the biodiversity of the landscape and has affected waterways, soil stabilisation, green corridors and native habitats. Tararua has ideal geographic and climate conditions that support a wide range of flax varieties. Significant research has been undertaken in recent years into the potential for the re-development of the flax industry. Products made from flax fibre, seeds and oil have wide-ranging potential applications but at this point in time, there is a gap between the research and the mid-long term commercial opportunities.

In the short and medium term, the greatest advantage to planting flax on farms and smallholdings is to enhance biodiversity, reestablish green corridors and native habitats for bird, insect and fish species and reduce nitrogen levels.

Council would like landowners to plant flax to enhance biodiversity and stabilize waterways and river banks with the view to eventually stimulating commercial opportunities for the district.

“landowner driven with support from Tararua District Council” Council is interested in supporting and developing landowner networks around the GO! Project crop options, including flax growers. A network is a vehicle to link landowners to key information and knowledge and creates a central point of contact for other organizations or businesses interested in forming partnerships with Tararua growers. The network would be landowner driven with support from Tararua District Council.

If you are interested in the GO! Project and/or you would like to receive further information please contact Lianne Simpkin, Economic Development Manager, Tararua District Council.

Suitability Maps Tararua District Council has crop suitability maps available.

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http://www.tararuadc.govt.nz/ Business/GO_Project

Feijoa

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February 2014 National Farming Review

17

ECONOMY

Economy improves but rate rise likely The economy is starting to hit its straps and no longer needs support from record low interest rates, writes Westpac senior economist Anne Boniface A quick scan around the regions finds many in the rural sector in good heart at the start of 2014.

Timely rainfalls so far this summer have kept pastures in good condition across large swathes of the country, farm gate prices for most products range from good to outstanding and optimism in the sector is riding high.

Such a buoyant mood is no small achievement following the rollercoaster ride of 2013 — a year marked by both the best of times and the worst of times for many farmers.

So just what might 2014 hold in store?

Undoubtedly there will be surprises (though hopefully not of the drought, food contamination or earthquake variety!). But those in the rural sector would be well advised to prepare for some of the more predictable elements of 2014.

While commodity prices should remain relatively high this year, we don’t think they can be sustained at the current exceptional levels. Demand from China may be strong but prices are still likely to soften a little as global supplies of key commodities such as dairy increase. The high prices currently on offer provide a strong incentive for producers around the world to lift output and the increased supply should put downward pressure on prices.

China has become increasingly important to New Zealand exporters in

TIGHT TIMES: Reserve Bank Governor Graeme Wheeler is expected to kick off a substantial tightening cycle soon, that will run until 2016.

recent years. In November, it kicked Australia off its perch as our number one merchandise export destination. It was already our biggest source of imports. And given the scale of opportunities this market offers New Zealand exporters, this trend is unlikely to reverse any time soon.

New Zealand’s rural sector should benefit from ongoing efforts by the Chinese administration to reorientate spending away from investment, toward consumption. And although growth in the Chinese economy is expected to slow a little further this year, ongoing changes in the structure of the economy (such as urbanisation,

growing wealth of consumers, evolving tastes and preferences) mean Chinese consumers are likely to continue to demand more of the commodities New Zealand has to offer.

Robust commodity prices are one important reason we expect the NZ dollar to remain above 80 cents against the USD in 2014. Another factor which will support the NZ dollar against our key trading partners is the outlook for local interest rates.

The evidence is now clear that the New Zealand economy is starting to hit its straps. The rebuild in Canterbury is steaming ahead and driving growth in the construction sector. Businesses

and households are more confident about the future than they have been in years, and this is beginning to flow through to hiring and investment decisions and a pickup in consumer spending. In such an environment the economy no longer needs support from record low interest rates.

We expect to see the Reserve Bank kick off a substantial tightening cycle soon — one that will see them lift interest rates significantly higher this year and next. In fact we believe the Reserve Bank will continue hiking interest rates until 2016, when we expect the OCR to reach 5.5 per cent — that’s a long way north of the 2.5 per cent it has been for the last three years.

So what does this mean for people deciding between fixed and floating interest rates? Right now, fixed term interest rates are roughly consistent with our view of where the OCR is headed over the next few years, making us indifferent between fixing and floating. But markets are notorious for overshooting.

Should they get ahead of themselves (and anticipate a larger hiking cycle than we think likely) then fixed interest rates might rise above where they are now for a period. That means for people looking to fix interest costs for risk management reasons, it could be better to do this now rather than later.

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National Farming Review

February 2014 www.fedfarm.org.nz

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WEATHER

Active start to summer

By Dan Corbett Metservice ambassador The start to summer misfired somewhat before slowly settling into the normal pattern during mid to late January.

The first weeks of December brought no major active weather systems but day-time heating and local converging winds allowed thunderstorms to develop during the warm summer afternoons.

When the day-time heating and convergence coincided with a passing trough the resulting thunderstorms were all more notable. Some even became severe bringing heavy downpours, medium sized hail and strong gusty winds.

Then, it all went pear shaped over the holidays as two stubborn lows lingered in place from Christmas until the end of the year.

A few places did manage some sunshine for Christmas Day, but in the days that followed in many places the raincoats were the chosen attire.

By the weekend the second, subtropical moisture rich low, moved in from the North Tasman Sea across the country. This low brought some widespread heavy rain and thunder from Northland down to Gisborne.

The rain was very intense on Sunday, December 29, with rainfall in excess of 25mm/hr across parts of the Coromandel. There was widespread flooding with many campgrounds inundated with flood water.

Whitianga received 120mm of rain during the 24 hour period which is equivalent to the mean rainfall for the entire month.

More active spring like weather spread in for New Year’s day with heavy rain

and thunderstorms that affected the west coast of the South Island and a few spots further east.

Further active troughs that brought heavy rain and gales continued through the first week of January. Strong to severe gales affected many western and central parts of New Zealand with another notable active trough on January 3 & 4. Winds gusted over 140km/hr in the hills surrounding Wellington. On the same day over 300mm of rain fell in the ranges of Westland region and the afternoon high reached 28C in Gisborne in the warm northwesters.

Cyclone June

LOWS: The festive holiday weather was disappointing as two stubborn lows lingered in place from Christmas until the new year.

The third week of January brought more wet and windy weather this time it was from the remnants of cyclone June. The weakened but tropical moisture rich storm system brought a good dosing of rain as it pin-wheeled across the country. The excyclone also brought strong to severe gales especially across northern and western parts of the North Island on the back side of the depression.

Outlook

The active westerly flow will continue to ease and anticyclones to our west will begin to move across the country with more regularity.

There will still be some active troughs especially in the south and the tropics will also add another factor into the mix especially during more active phases. Favourable upper level steering winds at the time will determine if any of those tropical features make their way in a weakened form to New Zealand.

The greater variety of weather systems will help to bring us more fine days.

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February 2014 National Farming Review

DAIRY

19

INDUSTRY GROUPS

Is land pricing pushing cows indoors?

By Willy Leferink Federated Farmers’ dairy chairman We are starting to see the development of a strange phenomenon in the New Zealand landscape, that of cows moving indoors. It started off in Southland, where some farmers had had enough of the mud and wanted more control in the winter months.

There is nothing new about housing cows. Other parts of the world have moved to this type of farming in the past couple of decades, aimed at protecting the cows from the harsh climate outdoors and to achieve higher productivity.

It is likely that herds of greater than 10 cows there are housed indoors, and in some places these herds will be of greater than 10,000 cows, and indoors for a good portion of the year, if not all year.

So why do New Zealand farmers move the cows indoors while our strength was having them outdoors on grass all year, which kept our cost of production low compared to other countries?

I think that over the years we have pushed the price of land up to the extent that we now have to farm the land with such intensity that any severe weather event may cost us too much productivity and may put the business at risk.

At the moment there is a wide range of

FUTURE?: Weather barns could be the future for our dairy industry to protect against adverse weather as land prices continue to climb.

opinion on whether moving cows indoors is the right way forward for New Zealand dairy farming and I believe this variation in attitude is correct, as there are a lot of different circumstances that make every dairy farm tick.

Farmers have also got to be ready and equipped to make the decisions on what the best option is for their enterprise.

We have also seen recently that the legislator is having trouble keeping up with the change of pace and is tempted to set rules and regulations based on perception.

The perception that grass-fed cows are best is seen in the Netherlands, where, in order to attract a premium milk price, a grass-fed cow has to be outdoors for more than 180 days for a minimum of eight hours a day.

Meanwhile, in Ashburton the local district plan requires cows to be grazed on grass in order to avoid an intensive farm ruling, which means that it is pretty much impossible. The regional plan for the same district, however, sees cows off pasture at certain times of the year as part of the basket of solutions to mitigate nutrient leaching.

It seems the one hand is not talking to the other. There are many plusses on having a barn or maybe a herd home as part of your tools to manage your farm — higher productivity, control, better feed utilisation, less pasture damage, sometimes better animal welfare, to name just a few. However, there are downsides too.

To operate these barns you need to be prepared to adopt new sets of skills, to spend more on equipment and diesel and to have features in place around these buildings like effluent systems and silage bunkers. Corners cannot be cut as these barns can quickly become a nightmare if you do not construct them right.

For me the biggest issue is that we, in a short timeframe, will have to adjust our regulations, codes and advice so we can provide the farmer with the necessary tools to make the right decisions, as these barns do not come cheap.

A set of design and construction guidelines and possibly a code of practice for the construction of standoff pads and indoor barn systems could be helpful.

So is putting the cow indoors bad for New Zealand’s image as some suggest? I will counter this by asking if it looks any better to see 300 cows ploughing through a kale paddock, in adverse weather conditions knee deep in mud, with no place to lie down.

Tax changes on their way for dairy farmers

By Nick Clark Many dairy farmers will need to put aside more for tax following a review of the National Standard Cost (NSC) scheme.

The review, undertaken by the IRD and the NZ Institute of Chartered Accountants, will see an increase in NSC livestock values for the 2014 income year which will have an impact over the next seven years on taxable income for dairy farmers using the NSC scheme.

The NSC scheme was introduced in 1992 to provide farmers with ‘‘fair and reasonable’’ livestock values to use for their inventory livestock valuation system to reflect the rearing and growing costs of their flock or herd.

The key point is that it is supposed to reflect average actual costs and, as with any stock on hand rules (except the herd scheme), match those costs with subsequent income. The scheme has been

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The driver behind the increase in NSC values for dairy cattle is that the model used to calculate growing and rearing costs became outdated in that most R1 and R2 year heifers are now increasingly grazed off the dairy platform and, as such, incur a regular grazing fee.

Previously, replacements were mostly grazed on farm or on a runoff

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As a result of the model no longer reflecting standard industry practice a big discrepancy has opened up between the NSC values for R1 and R2 dairy cattle and actual cost.

So from now on grazing expenditure for replacement R1 and R2 dairy cattle will be estimated explicitly and allocated directly as a specific cost.

Information from Dairy NZ’s Economic Survey and Beef+Lamb NZ’s Sheep &

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For illustrative purposes the chart, right, shows an historic comparison of published NSC values with the revised values calculated. The difference is particularly large for R2 dairy cattle.

Such a fundamental change to the cost calculation model will have an impact on the taxable income for many dairy farmers. IRD has therefore agreed to spread the increase over three years which means it will take seven years for the increased NSC values to become incorporated in the value of all the livestock.

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February 2014 National Farming Review

MEAT & FIBRE, BEES

21

INDUSTRY GROUPS

Industry paper provides options

By Sarah Crofoot Meat & Fibre policy advisor In December, Federated Farmers launched Meat Industry Options: A Discussion Paper to our members. The document is an initiative designed to stimulate informed debate on the future of our red meat industry.

The paper outlines a range of options in three categories: behaviour, processor and marketing-focused options. The options presented are a bit like a ‘‘pick and mix’’ with numerous combinations possible.

The behaviour-focused option highlights the influence farmers can have through the choice of where they supply their livestock. First, you must decide what is important to you and your business and what you want the industry to look like in the future.

Then you can look to understand the different companies and their strategies and choose to supply a company who shares your values and vision for the future.

It is also important to communicate with the company you supply, to build and maintain a strong relationship. This will help shift the focus from procurement to what the market wants.

We also look at the positive role stock agents could play in optimising farming systems.

In the processor-focused options we explore a co-operative merger.

This addresses some of the fundamental differences between the dairy and red meat industries including the variation in supply patterns and differences in product form. It also looks at commodity and value-added markets and variation in investment levels

ONE OPTION: A co-operative merger would address some of the fundamental differences between the dairy and red meat industries including the variation in supply patterns and differences in product form.

between the two industries.

We look at tradeable processing rights which are similar in concept to fisheries quota management. It would need legislation but it could help to reduce industry overcapacity.

Toll processing is investigated which separates out processing and marketing, allowing each to focus on their core business and avoid trying to be all things to all people.

The possibility of overseas invest-

ment is explored including the impact that might have on the future shape of the industry.

A final processing option highlights transparency of information based on the Uruguayan model of information sharing, regarded as the best in the world. It could help to improve coordination, collaboration and inmarket behaviour while generating value and demonstrating where that value is being added.

Honey shortage looms

By Nick Hanson Beekeepers have faced a troubled 2013/2014 season and the New Zealand honey harvest looks to be patchy at best, with some commentators forecasting about 40 per cent below last year.

This may well raise financial concerns for those beekeepers less established, as the cost of production continues to rise with key elements like Varroa control nonnegotiable.

Most beekeepers report the weather as the culprit as windy, cold and damp conditions have limited the opportunity for bees to leave the hive and work available flowers.

For eastern and southern parts of the South Island a good early nectar flow has been offset by a turn in the weather since December.

Even on fine days, cold easterly winds across Canterbury have kept the bees at home for a significant proportion of daylight hours.

Further south, the moist weather has meant a late clover flowering but only a string of two to three weeks of high temperatures could save the season by allowing the clover to produce nectar and the bees to work the crop.

The South Island’s West Coast has had no rata bloom this year which has limited the expected honey flow. The manuka and kanuka flowering has been prolific in many areas but the weather has inhibited the bees’ ability to gather nectar.

Reports from the North Island are that early flows of manuka were very promising but, again, cold winds and rain have affected flowering and limited bee flying days. Reports from the east coast indicate a very poor honey yield, with most beekeepers now heading across country

Beehives on your property

By Rex Baynes New Zealand beekeepers have a number of legal obligations that in particular relate to American foulbrood disease (AFB).

What is American foulbrood disease?

with their hives in search of better foraging opportunities.

It is too early to tell whether there will be an effect on yield of small seed crops due to poor pollination. Still, growers and seed merchants report that there was good bee activity in the early part of the season, which is the key for pollination of crops such as brassicas and carrots. Shorter days, even in the key period, may be offset by higher hive numbers in key crops.

Where bee numbers are low, short days would likely have had an impact on the vital pollination that bees provide to white clover in pasture, limiting seed set and clover regeneration.

With demand for New Zealand honey at an all-time high and 2012/13 stocks totally diminished, a substantial fall in honey production this year will test industry exporters ability to service their markets.

In our section on marketing-focused options we explore a single desk seller and how that could help to achieve critical mass. As well as co-operation where exporters collaborate in certain markets while remaining independent in others.

Another marketing-focused option is for multiple marketing companies with strong producer and customer/consumer relationships. This option is dependent upon toll processing indicating how interrelated our options are.

A twist on market collaboration is for an ANZAC approach, where Australia and New Zealand unite to achieve greater scale while improving research investment and market development.

Going larger still could see an alignment between the northern and southern hemispheres to match seasonality of supply.

This could help to keep red meat products on the shelves in the face of competing proteins.

The paper has now been widely circulated and discussed.

If you have not yet read the paper, I encourage you to do so. A copy can be downloaded from our website. Then you too can join the discussion as it is up to you as farmers and suppliers to decide what you want the industry to look like in the future and how your behaviour will influence this.

We are welcoming feedback from our members via the online survey or through your provincial executive and meat and fibre chairperson.

Your feedback is critical to us as the meat and fibre executive craft our strategy and we look to the future with a vibrant red meat industry.

AFB is a disease of honey bee larvae and pupae. It is the most serious honey bee disease in New Zealand. The control of AFB is managed by way of the Biosecurity Act 1993 in particular the Biosecurity (National American Foulbrood Pest Management Plan) Order 1998 which requires all beekeepers among other things to be registered. In addition the law also states that: ■ All apiary sites must be registered if bees or beekeeping equipment are kept there for more than 30 consecutive days.

■ One hive in each apiary must have the beekeeper’s registration code (alpha numeric) clearly shown on the hive or on a sign in that apiary.

■ A hive found to have AFB must be destroyed by burning within seven days.

■ When AFB is found the beekeeper must notify the management agency in writing within seven days.

■ All apiaries must be kept clear of vegetation and debris to ensure easy identification and inspection.

If you have beehives on your property, it is important to understand that you are also subject to the above legislation (clause 10) and therefore you are obligated to provide information about those hives to the management agency and/or their contractor — AsureQuality Ltd. As a farmer or landowner, do you have any concerns regarding hives on your property? Do you know who the beekeeper is? And do they attend to those hives regularly?

Reporting is particularly important, should you consider the hives on your property to be in a state of ruin through neglect or abandonment. You are advised not to destroy them; rather we request that you contact AsureQuality Ltd and your local police station.

Abandoned or neglected hives can be a source of AFB disease that will spread rapidly through neighbouring apiaries with deadly consequences. Should hives appear on the roadside outside your boundary, you are asked to contact your local authority to ascertain if permission has been granted for those hives to be placed there.

■ AsureQuality Contact Details are: 0508 00 11 22

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February 2014 National Farming Review

23

INSIDER

Parliament Bills in the House

As at January 24 several Bills relevant to farming were before Parliament, at various stages: ■ Overseas Investment (Owning our Own Rural Land) Amendment Bill, First Reading ■ Local Government Act Amendment Bill No 3, Local Government & Environment Select Committee ■ Animal Welfare Amendment Bill, Primary Production Select Committee ■ Food Bill, Primary Production Select Committee ■ Land Transport Amendment Bill, Transport & Industrial Relations Select Committee ■ Land Transport and Road User Charges Legislation Amendment Bill, Transport & Industrial Relations Select Committee ■ Resource Management (Restricted Duration of Certain Discharge and Coastal Permits) Amendment Bill, Second Reading ■ Heritage New Zealand Pouhere Taonga Bill, Committee Stage.

Other reviews and consultations

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Federated Farmers is also engaging with government departments on various reviews and consultations. For example, here are a few of the consultations we’re engaged in: ■ Improving our Resource Management System, Ministry for the Environment ■ Proposed Amendments to the National Policy Statement for Freshwater Management ■ Making our Dams Safer Consultation Document, Ministry of Business, Innovation and Employment ■ Inquiry into Regulatory Institutions and Practices, NZ Productivity Commission ■ Review of the Telecommunications Act 2001, Ministry of Business, Innovation and Employment ■ Service Sector Inquiry, NZ Productivity Commission ■ Review of the Telecommunications Service Obligation, Ministry of Business, Innovation and Employment ■ Review of the Funding Assistance Rate, NZ Transport Agency ■ Draft Tertiary Education Strategy, Ministry of Education ■ Health and Safety Bill Exposure Draft, Ministry for Business, Innovation and Employment ■ Review of key definitions used to grant or decline work visas for non-ESDL positions, Immigration NZ and Work & Income NZ

NEW YEAR’S HONOURS

Hook, line & sinker

Tom Lambie

Congratulations to former Federated Farmers’ national president Tom Lambie, pictured, who was made Officer of the New Zealand Order of Merit (ONZM) in this year’s New Year Honours.

The South Canterbury organic dairy farmer still milks his cows in between his roles as an Environment Canterbury Commissioner and Chancellor of Lincoln University.

Friends are debating whether to call him Sir Tom or Sir Thomas!

John Coles, ONZM

John was Waimate District Council Mayor for three terms, retiring last November.

He’s a third generation Waimate farmer and a Federated Farmers member.

As mayor, he showed strong support for South Canterbury Federated Farmers’ polices around irrigation and the recently settled argument with Transpower.

A well-deserved honour.

■ Review of Vehicle Certification and RUC Administration Fees, NZ Transport Agency.

News in brief

■ ACC Levies Cut: The Government has announced cuts in ACC levies for the work account and the earner account, saving workers and employers $387 million in 2014/15. The new rates will take effect from April 1, 2014.

■ Common sense prevails around Waimate lines: Federated Farmers, Transpower and Waimate District Council have reached agreement on ‘buffer zones’ around transmission lines in Waimate, reducing the proposed ‘protection areas’ from the original 64 metre swathe to a more workable 12m, with reduced restrictions on land use.

■ Local Government representation under review: The Local Government Commission is currently considering four applications for local government reorganisation, in Northland, Hawkes Bay and two separate proposals for Wellington and Wairarapa. Federated Farmers is submitting on these from a local perspective.

THE OFFAL PIT

■ Remote Piloted Aircraft Systems (RPAS): This is an exciting new area of technology that has the potential to benefit the agricultural sector in a variety of ways.

Federated Farmers has recently submitted on new draft controls for their operation.

Safety guidelines are required for RPAS, but proposed controls need to ensure that agricultural innovation is not hindered or prevent RPAS from being utilised to their full potential on farm.

■ One Plan Implementation: The High Court decision on the Horizons One Plan has been notified and the real challenge of implementing the plan has begun. With regard to the water provisions a couple of catchments are first out of the blocks and the primary sector along with the regional council is working closely with affected farmers in the Mangapapa and Waikawa catchments.

■ Tukituki Catchment Proposal: The Board of Inquiry hearing for the Tukituki catchment proposal, which comprises the proposed Ruataniwha Water Storage Scheme and the associated Plan Change 6 to the Hawkes Bay Regional Resource Management Plan, concluded on January 21, with the closing submission of the applicant, the Hawkes Bay Regional Council being presented.

I know a few guys who hold fishing licenses but it baffles me as to why. Fish & Game NZ, as opposed to the local Fish & Game councils, seems to have gone out of its way to pin everything bad about water on farming. When the Sunday Star Times’ Rod Oram comes out and says people need to look past the negativity because there’s genuine improvement out there, I’d take note. Instead, Fish & Game increasingly looks like the grumpy fat geezer at a Young Farmers do. Not a very attractive proposition.

Why would you fish anyway from what we’re being told on rivers that Fish & Game NZ claim to be at death’s door? Even if you do catch a fish, it’ll be so toxic, you could forget about eating it.

The problem is that they’ve talked many good things down for so long, while talking up the negative, that it’s now seemingly hurting license income. If you chuck in a love of the courtroom, it helps to explain why Fish & Game NZ has turned in a $1.1 million dollar deficit for 2012-13.

Of course licenses are compulsory so income is assured but before Christmas, Feds’ Russell MacPherson in an opinion piece invited the Fish & Game CEO to fish at his Southland farm. All that was received was a letter to the editor pointing to photos taken several years’ previously. To me Fish & Game NZ missed a huge opportunity here to see a dairy farm in action right beside a river which has trout in it.

Instead of treating farmers like they’re a mallard duck, it’s time to take a leaf from the Environmental Defence Society and find common ground. Sure there’ll be times we’ll have ding dong scraps but come on Fish & Game, we’ve got so much in common. You just have to lose the negative vibe.

■ Offal Pit is a contributed column and does not reflect the views or policies of Federated Farmers

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