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Going up! Urea prices have jumped by nearly 25% recently to $1,190/tonne.
Federated Farmers vice president Chris Lewis claims farmers won't be making much money this year, despite a record forecast milk price.
He says fertiliser prices have jumped 100%, wage bills are up 20% and hiring tradesmen has become more expensive.
Lewis says "market forces" mean farmers must pay more to retain staff in a labour-squeezed market.
While the record forecast payout must be celebrated and provides a buffer against rising costs, he doesn't expect too many farmers to end up with a large surplus this season.
He points out that recent surveys found farmer confidence still low.
"With the strong payout we should see higher farmer confidence but that's not the case," he told Rural News.
"Farmers are not thinking about dollars. While the high milk price is a cause for celebration, high inflationary costs are a major cause for worry for some farmers."
Last month, DairyNZ solutions and development lead adviser Paul Bird urged farmers to use strong milk price to pay off debt and be better prepared to withstand shocks.
Speaking at the online DairyNZ Farmers Forum, Bird noted that while industry debt had dropped to $38 billion, reducing it further would be "a good thing".
"The average dairy farm is still made up of half debt and half equity. That's still quite a big chunk of debt," noted Bird.
Farms with returns of around 5% would come under pressure if interest rates rose to 5% and beyond.
Bird says paying debt puts farmers in a good position to withstand shocks.
It also puts farmers in a solid place if they are "looking for the next opportunity to grow in dairying".
Lewis says farmers have been hearing this message for the past five years from the banks.
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.
DairyNZ has pulled together tactics that will help farmers improve on-farm efficiency and have positive benefits for the environment. These tactics are based on research, data, and lessons from leading farmers.
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.
After serving three as a DairyNZ director, Waikato farmer Chris Lewis is ready for another term.
Federated Farmers says the final report into banking competition is a significant step forward for rural New Zealand - and a vindication of the farming sector's concern.
According to the most recent Rabobank Rural Confidence Survey, farmer confidence has inched higher, reaching its second highest reading in the last decade.
From 1 October, new livestock movement restrictions will be introduced in parts of Central Otago dealing with infected possums spreading bovine TB to livestock.
Phoebe Scherer, a technical manager from the Bay of Plenty, has won the 2025 Young Grower of the Year national title.
The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards, providing the opportunity to honour both rising talent and industry stalwarts.
Award-winning boutique cheese company, Cranky Goat Ltd has gone into voluntary liquidation.
As an independent review of the National Pest Management Plan for TB finds the goal of complete eradication by 2055 is still valide, feedback is being sought on how to finish the job.
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