The politics of climate change
OPINION: The Financial Times, a major international newspaper, featured New Zealand on its front page at the beginning of June. It wasn't for the right reasons.
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.
Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Boutique Waikato cheese producer Meyer Cheese is investing in a new $3.5 million facility, designed to boost capacity and enhance the company's sustainability credentials.
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Compensation assistance for farmers impacted by Mycoplama bovis is being wound up.
Selecting the reverse gear quicker than a lovestruck boyfriend who has met the in-laws for the first time, the Coalition Government has confirmed that the proposal to amend Fringe Benefit Tax (FBT) charged against farm utes has been canned.
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