Arable Farmers Shift to Dairy as Fuel and Fertiliser Costs Surge
Some arable farmers are getting out of arable and converting to dairy in the faced of soaring fuel and fertiliser prices on top of a very poor growing season.
Alan Beck, of Beck Helicopters, Eltham, says farmers – sheep and beef and dairy – so far are not cutting their fertiliser spread this season. Their emphasis is on growing grass.
“Many of the farmers we work for are well-established and known to us for 20-plus years,” he told Rural News. “Their biggest concern is the need to grow grass. Many say there won’t be a new race, shed or car this year, but they have to grow grass and fertiliser is the cheapest way.”
For Beck’s company it is business as usual. Farmers are mainly applying DAP and high analysis fertiliser; while the fertiliser companies are predicting a downturn, Beck hasn’t seen it.
Beck’s firm has clients in Taranaki, Waikato and Bay of Plenty. He takes a positive view of the dairy industry, saying the final payout will not be as bad as some people suggest.
Despite inclement weather farmers have been at him to get the fertiliser on. Sheep and beef farmers are putting fertiliser on the hills and the word from colleagues in Gisborne, Hawkes Bay and Whanganui is that they are equally busy.
“It surprises me a little, but I suspect a lot was learned from the last downturn when farmers stopped putting on fert and it took them four or five years to recover,” Beck says. “We’re going to see the same scenario on the hills and on dairy farms where there won’t be any capital expenditure, but fertiliser will be a priority.”
