increase font size
Peter Nuthall.
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 nationwide survey shows New Zealanders expect farmers and food producers to play a leading role in cutting greenhouse gas emissions, but also gave them higher marks than most industries for their current efforts.
OPINION: We are endlessly told that livestock are responsible for half of New Zealand's total emissions.
OPINION: Climate change is shaping up to be one of the major issues at next year's general election.
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.
OPINION: Across rural conversations, we're heading the same tune: crisis.
Academic Dr Mike Joy and his employer, Victoria University of Wellington have apologised for his comments suggesting that dairy industry CEOs should be hanged for contributing towards nitrate poisoning of waterways.
Environment Southland's catchment improvement funding is once again available for innovative landowners in need of a boost to get their project going.
The team meeting at the Culverden Hotel was relaxed and open, despite being in the middle of calving when stress levels are at peak levels, especially in bitterly cold and wet conditions like today.
A comment by outspoken academic Dr Mike Joy suggesting that dairy industry leaders should be hanged for nitrate contamination of drinking/groundwater has enraged farmers.
OPINION: The phasing out of copper network from communications is understandable.
Driven by a lifelong passion for animals, Amy Toughey's journey from juggling three jobs with full-time study to working on cutting-edge dairy research trials shows what happens when hard work meets opportunity - and she's only just getting started.
