End of war on farming, say farmers
Federated Farmers says changes announced to the Resource Management Act today mark the end of the war on farming.
Fonterra's decision to drop its 2011-12 forecast payout by 15c/kgMS demonstrates the trade exposed nature of our primary industries, says Federated Farmers Dairy chairman Willy Leferink.
With the current global economic outlook, this may not be the only revision for the 2011/12 season, he says.
"I don't think there are many farmers who were not expecting a downwards revision. We had indications from the globalDairyTrade auction that prices have been drifting south.
"Most economic forecasters also expect commodity prices will ease over 2012. It's fair to say the international picture is more than a little choppy, especially with China revising its Gross Domestic Product forecast downwards.
"This is the reality New Zealand's primary exporters have to deal with. We're completely trade exposed and it's a fact of life for us. Times can be good, but we also know from the 2008-9 season, they can be pretty hard too.
"Farming returns can sometimes resemble an oscillograph. This is why corporate investors looking for predictable returns tend to find farming difficult."
Leferink says while the primary industries are generally growing, overall sector debt levels aren't.
Many farmers have heeded our advice to run conservative budgets focused on reducing debt, he says.
"That said, we're increasingly anxious over how the Kiwi dollar is defying gravity. While soft commodities are correcting our dollar ought to be doing the same but isn't.
"While good growing conditions have helped us put in a blinder of a season, a high dollar could well skim the cream."
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
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