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AFTER EXPORT data for the June quarter, Federated Farmers is relieved the OCR will likely be on hold for the remainder of 2014.
"With the rural economy's sentiment decidedly bearish, an OCR hold is perhaps the best we could hope for," says Dr William Rolleston, Federated Farmers President.
"Dairy farmers are anxious about their likely payout following falls in international dairy prices and a stubbornly high exchange rate.
"This will not be helped by the seasonally adjusted value of exported goods falling 7.4% in the June quarter. Most of the major primary exports were down, including dairy, meat and logs."
Dr Rolleston says given the drop in farmer confidence and other economic developments "we actually thought there was good case for the OCR to be left unchanged".
"While that's now academic, the key thing is that the Reserve Bank has clearly communicated its intention to pause and take stock. This is the right signal," he says.
"We were pleased to hear the Reserve Bank state, in no uncertain terms, its concern about the unjustifiably and unsustainably high exchange rate. Clearly, in taking a pause, it wants to take pressure off the exchange rate and this is the right call.
"The fact that inflation remains contained is helpful and it has given the Reserve Bank some breathing space.
"We now hope that the Reserve Bank will be able to keep the OCR on hold for an extended period. To be able to do that other government policies need to help rather than hinder.
"This means fiscal responsibility, tight control of spending and wider policies around regulation. Exporters, whether ICT, tourism or the primary industries, need policies to assist rather than impede productivity and competitiveness.
"We hope that the media and commentators will be examining policies and pledges against this prescription," Dr Rolleston says.
Central Otago District Council (CODC) has voted against a plan to spread treated sewage sludge from Cromwell and Alexandra on farmland near Lauder, a decision Federated Farmers says reflects strong opposition from rural residents.
Federated Farmers has called on Central Otago District Council (CODC) to drop or vote down a plan to truck sludge from Alexandra and Cromwell to farmland near Lauder, warning it would compound an "outrageous" situation created by a separate council's decision weeks earlier.
Federated Farmers says new legislation replacing the Resource Management Act will cut red tape, unlock investment and help grow New Zealand's export-led economy, after the Planning Bill and Natural Environment Bill passed their third reading in Parliament yesterday.
Leading figures from the major political parties will be questioned on their primary sector policies at the Rural Issues Debate at Mystery Creek Events Centre, Hamilton, on 30 September.
Will the good times last? That's one of the key issues to come out of the latest Federated Farmers confidence survey.
Waikato milk processor Tatua has again declared a record milk payout to farmer shareholders, leaving other processors in the dust.
A Labour-led Government won’t be bringing back the controversial freshwater rules of 2020.
National’s much-touted free trade deal with India featured in the Rural Issues Debate at Mystery Creek, Hamilton on Wednesday night.
New Zealand's 2026-27 freshwater fishing season has opened, with anglers encouraged to head to rivers and lakes over the coming days as conditions look favourable across much of the country.
Central Otago District Council (CODC) has voted against a plan to spread treated sewage sludge from Cromwell and Alexandra on farmland near Lauder, a decision Federated Farmers says reflects strong opposition from rural residents.
Pāmu has released its FY26 Integrated Annual Report, reporting a Net Operating Profit of $113 million, more than double the $49 million recorded in FY25.
