increase font size
While the 2012/13 season will be tough for farmers, Federated Farmers believes it is not as dire as some commentators say.
"Will some farm businesses fail as a result of lower payouts and a high dollar? Sadly, that answer is probably yes," says Bruce Wills, Federated Farmers president.
"I can understand why the outlook for some is negative given a slew of farm confidence results and projected falls in income. Federated Farmers was painfully honest even before the start of this season that it would be a tough one.
"Before the Ministry for Primary Industries (MPI) forecasts, farm sales recorded by the Real Estate Institute had slid back to levels last seen in September 2010.
"Yet there are blue clouds appearing among the grey. Five of the last six GlobalDairyTrade auctions have been up and in the latest auction, wholemilk powder jumped 9.2%.
"This comes off an excellent production start to the new season. I have read that milk volumes are up 13% on last year and last season was one out of the box. I can say from my farm we currently have excellent growing conditions for beef and lamb too.
"That said cold weather and rain has impacted grass growth in some areas and is a concern going forward.
"After a terrible start to the new season, we are seeing wool prices slowly climb with an encouragingly high clearance rate too.
"Beef prices are holding up despite the drought in the United States. While lamb has reversed recent gains to be in the $90 range, initiatives like what McDonald's New Zealand is doing with lamb may open up new export opportunities.
"Look, this is a tough season and make no bones about it. Yet tough does not mean dire because we produce food and fibre the world needs.
"What would really help us is less pressure on the dollar. There is no quick fix but winding back government spending and paying down debt would help relieve the pressure. Combine that with a focus on the quality of regulation instead of the quantity and things will look up.
"I guess we need to look past the short term because the medium term remains bright," Wills says.
OPINION: Recent media commentary from Southland Federated Farmers has raised concerns among our rural communities, particularly around Environment Southland’s approach to winter grazing inspections and nitrogen reporting. But let’s be clear, much of what’s been said simply doesn’t reflect reality.
OPINION: Environment Canterbury's (ECan) decision recently to declare a so-called “nitrate emergency” is laughable.
A shameless political stunt is how Federated Farmers is describing the Canterbury Regional Council decision to declare “a nitrate emergency” on the back of its latest annual groundwater quality survey.
Federated Farmers say Environment Canterbury's decision to declare a 'nitrate emergency' is a shameless political stunt that won't help anyone.
Farmers want the Government to scrap controversial freshwater rules that "put river spirits and ideology ahead of practical water use", says Federated Farmers board member Mark Hooper.
OPINION: Public pressure has led to Canterbury Police rightly rolling back its proposed restructure that would have seen several rural police stations closed in favour of centralised hubs.
When I interview Rachel Cox, she is driving - on her way to her next meeting.
With Fonterra's UHT plant at its Edendale site less than a year from completion, demand continues to grow for products the plant will produce, such as Anchor Whipping Cream.
A new $50,000 scholarship fund designed to support and empower women in the New Zealand dairy industry through leadership development has been launched.
Many farmers around the country are taking advantage of the high dairy payout to get maximum production out of their cows.
In 2015, the signing of a joint venture between St Peter's School, Cambridge, and Lincoln University saw the start of an exciting new chapter for Owl Farm as the first demonstration dairy farm in the North Island. Ten years on, the joint venture is still going strong.
OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…
OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…
