Best placed to help in a crisis
OPINION: Two years on from Cyclone Gabrielle, I've learned that while the power of Mother Nature is formidable, it is more than matched by the extraordinary capacity of locals to recover and rebuild.
Major farming sector lender ANZ is closely watching the rising price of farmland.
ANZ's new managing director commercial and agri, Mark Hiddleston, says no one wants to see the boom in the kiwifruit industry turn into another 'bubble'.
He told Rural News at Fieldays that the kiwifruit industry rebound has been fantastic in "going through tough times and working together through them".
"The industry was literally holdings hands for a few years; now we see orchard prices are higher than before Psa," he says. "That's great, no one is criticising that outcome, but let's make sure it doesn't turn into another bubble."
Pre-Psa kiwifruit gold orchards were valued at $450,000/ha and green orchards $250,000/ha. Today, gold orchards are valued at $600,000/ha and green $400,000/ha.
Zespri has exported a record 50 million trays of gold kiwifruit this year, versus a record 30m trays before Psa.
Hiddleston and colleagues are talking to farmers nationwide about volatility and how they can manage for it. Ultimately volatility will discourage people from entering an industry and will discourage capital. "The more volatility, the greater the risk," he says.
Dairy farmers, now in their second year of negative cashflow, better understand this. "They realise they need to think about things they can control. You can't control what's happening in Europe, but you can control farm practices."
ANZ is noticing resilience among dairy farmers, Hiddleston says. Farmers who borrowed more money after the first year of the low milk price have since made radical changes to their businesses and now don't need additional funds.
They say to us 'we now have a better business'."
ANZ has made provision for bad debt arising out of the dairy downturn. However, it's coming off a low base and the board is "very comfortable" with current levels.
The bank is working with farmers as part of its 'agri reboot' programme on funding and monitoring onfarm costs for the year.
And ANZ is working with sharemilkers badly hit by two seasons of low payout, including coordinating discussion between sharemilkers and farm owners.
"We have clients on both sides; we don't want to put pressure on one side. The solution is not to push more debt on someone who really can't afford it and push them out of the industry.
"Instead we can facilitate discussion with landowners -- provide more support to landowners who then support the sharemilkers."
A Chinese business leader says Chinese investors are unfairly viewed as potential security risks in New Zealand.
In the first of two articles focusing on electrification in New Zealand, Leo Argent talks with Mike Casey, operator of the 100% electric-operated Electric Cherries orchard and founder of advocacy group Rewiring Aotearoa.
A Foundation for Arable Research initiative which took a closer look at the efficiency of a key piece of machinery for arable farmers - their combine harvesters - has been recognised at the Primary Industry NZ Awards.
Prime Minister Christopher Luxon has reiterated New Zealand’s ‘China And’ policy, adding that it wasn’t about choosing one market over another but creating more options for exporters.
A long running trade dispute between New Zealand and Canada over dairy access has been resolved.
New Zealand Police is urging rural property owners to remain vigilant and ensure their property is secure.
OPINION: Spare a thought for the arable farmer, squeezed on one side by soft global prices and on the other…
OPINION: Labour leader Chris 'Chippy' Hipkins is carrying on the world-class gaslighting of the nation that he and his cohorts…