Agri sector to lead economic recovery
OPINION: Over the past month, people up and down the country have been asking me what I think is in store for the Agri sector.
The number of dairy farms coming on the market is seen as a sign of confidence returning to the industry.
The head of agribusiness for Westpac, Mark Steed, says his staff have seen a lot more dairy farms come up for sale, marking a turnaround from the past few years of low payouts. The prospect of a $6.75 payout this season has dairy farmers relieved and buoyed up about the future.
Steed says the only uncertainty that hangs over the sector is what will happen on the political front – the composition of the new government.
The other imponderable is the weather and what effect this may have on production for the season. Many regions are reporting production is down, and Steed says what happens with the weather over the next three months will be important.
Meanwhile the Real Estate Institute’s spokesperson on rural issues, Brian Peacock, says quite a number of farms are coming on the market, especially in Waikato.
“There is mix of reasons for this including a combination of [farmers’] age and stage, coupled with the climatic conditions and labour issues. Also, people tend to move up and down in size and scale when they deem that the market is pointing upwards as it is now and this is probably seen as quite a good time to be selling,” he says.
Peacock says this season’s $6.75 payout has lifted confidence in the dairy sector, influencing the decisions people make. While the trend is for dairy farms to be larger there is a still a market for smaller farms.
“These small farms are picked up by the first farm purchasers and others who want to step back from a larger unit,” he says.
Smaller farms tend to be in traditional dairy areas in the North Island such as Taranaki, Waikato and Northland whereas the larger ones are in the South Island and are often conversions from sheep and beef to dairying.
Newly elected Federated Farmers meat and wool group chair Richard Dawkins says he will continue the great work done his predecessor Toby Williams.
Hosted by ginger dynamo Te Radar, the Fieldays Innovation Award Winners Event put the spotlight on the agricultural industry's most promising ideas.
According to DairyNZ's latest Econ Tracker update, there has been a rise in the forecast breakeven milk price for the 2025/26 season.
Despite the rain and a liberal coating of mud, engines roared, and the 50th Fieldays Tractor Pull Competition drew crowds of spectators across the four days of the annual event.
Nationwide rural wellbeing programme, Farmstrong recently celebrated its tenth birthday at Fieldays with an event attended by ambassador Sam Whitelock, Farmers Mutual Group (FMG), Farmstrong partners, and government Ministers.
Six industry organisations, including DairyNZ and the Dairy Companies Association (DCANZ) have signed an agreement with the Ministry for Primary Industries (MPI) to prepare the country for a potential foot and mouth outbreak.
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