Editorial: Time for a reset
OPINION: The Government's recent announcement that methane targets will be reviewed is bringing relief to farmers.
Farmers are well-placed to survive any potential financial uncertainty from major setbacks such as global warming, a new Lincoln University research has found.
Lincoln University academics Bruce Greig, Peter Nuthall and Kevin Old surveyed more than 400 farmers and found the majority of farms are financially strong.
Associate Professor Nuthall said it is “highly likely” farmers would survive most price downturns and the impacts of global warming.
He said an assessment of the financial resilience of New Zealand farms was particularly important given changing weather patterns stemming from global warming may exacerbate supply shifts, and the opening of world markets through trade agreements could lead to fluctuating supply and demand, all increasing price volatility.
However, their results showed most farmers and their farms are in “a zone of stable functioning in which they can operate and absorb financial shocks in at least the short term”.
“Profit levels are not high relative to the investment, but this has been the case for decades and has not caused problems due to farmer and farm family resilience,” Nuthall said.
“This does not mean some farmers have not struggled financially, particularly over periods of low payouts, including low wool prices, and periods of severe drought. New farmers with high initial debt will have found it difficult to meet their commitments in these periods.
“The majority, however, have had the equity to cope, especially the significant numbers with 100% equity.”
However, he said, action to maintain current financial levels through prudent production system selection and good financial management will be needed.
Figures from the article
- Farm equity is, on average, nearly 82%
- 62% of fruit/viticulture operations have 100% equity but this ranged down to 10% of the dairy farmers having 100% equity.
- 12.8% of farms had at least $8 million debt, and on the other side of the ledger, 12.2% had an asset total of greater than $20 million.
A new report has revealed the full impact of Cyclone Gabrielle on Hawke’s Bay’s principals and teachers.
The Commerce Commission says connectivity options for rural New Zealanders are front-of-mind as it begins a formal investigation into the future of the copper network.
Grand Finalists have been selected, all regional finals have concluded, and the journey towards the FMG Young Farmer of the Year Grand Final is underway.
Hopes of NZ sheepmeat prices picking up anytime soon in the country's key export market of China looks highly unlikely.
Regional councils are welcoming the certainty for councils in today’s Resource Management Act (RMA) announcement by the Government.
ASB says the decision to sign on to the AgriZeroNZ joint venture came out of a wish to be a part of the solution.
OPINION: This old mutt understands that NZ Post will soon no longer be delivering to rural addresses on Saturdays.
OPINION: Your old mate notes that research on the make-up of the new parliament shows it is now far more…