National farming review june 2014 by NZME.

JUNE 2014

NZDIA Awards: Dairy industry’s annual gala nightp24

NATIONAL POLICY Budget wrap

A look at what the Budget means for farmers

Hunger Games Food Bill sees the finish line

REGIONAL POLICY Dambusters

Ruataniwha dam dealt a low blow

p13

Cantabrians notified Nutrient management rules considered across region

p14

INDUSTRY POLICY Goats in spotlight

Inaugural NZGoats conference held in Queenstown p20

Cattle tagging

What every farmer needs to know about NAIT p20

BE IN TO WIN

EARTHQUAKE PRONE? Is this the end of Main Street — p10

When the Farm Gates Opened examines how economic reforms of the 1984 Lange government changed New Zealand. Support abruptly ended as Rogernomics made farming live without government influence, interference or protection. ■ To enter email your name, address and telephone number to competitions@fedfarm.org.nz

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PERSPECTIVE

Goodbye, for now . . . INSIDE

Feature:

The rural cost of earthquakes

Regulars: Perspective

National Policy

3-6

Counterpoint . .

Regional Policy

8-9, 13-14

Employment

Economy

Weather . .

Dairy

19, 20, 24

Industry groups Insider

Managing Editor: Conor English Ph: 04 494-9189 cenglish@fedfarm.org.nz Editor: John Donnachie Ph: 04 470-2162 jdonnachie@fedfarm.org.nz Memberships: April van Dam Ph: 0800 327-646 avandam@fedfarm.org.nz Advertising: Linda Friedrich Ph: 021 225-4610 linda.friedrich@apn.co.nz ■ ISSN 1179-4526

INFORMATION

CONTRACTS

This is my last column in National Farming Review as chief executive of Federated Farmers of New Zealand. I have spent almost 10 years of my life, in two stints, at Federated Farmers. Firstly in the 1990s as a policy analyst and then over the last six years as chief executive. It has been an honour and a privilege to lead Federated Farmers in my capacity as chief executive. As an organisation we to seek to influence decisionmakers at international, national, regional and sector levels so we can have more profitable and sustainable farming. This is not only important for farmers, but for rural communities and the rest of New Zealand. For those who may not have noticed, the agricultural sector and our rural families contribute much, not only to our social, economic and environmental fabric and success, but also to our identity as a nation. Along with our Maori culture, it is our rural authenticity, ingenuity and success that stand us apart from other countries. When advertisers project the “real Kiwi” they use rural images and weather-beaten faces, not ballet dancers

in Auckland. Federated Farmers is about a big team effort. I have many people to thank who have made big contributions over my time CONOR ENGLISH here. It is Chief executive always risky naming people as inevitably someone is missed, so to all those who know they deserve thanks — thank you. However, I would like to particularly note the excellent, professional hard-working Federated Farmers’ staff. They are a great bunch of people who are passionate about our industry and about doing an excellent, professional job for farmers, rural communities and New Zealand. Our elected farmers and other volunteers involved in the organisation from one end of the country to the other make a critical contribution. Without farmer participation Federated Farmers is nothing. My view has always been that we

have a very good model, with a “one-two punch” — real farmers who have their hands in the soil alongside professional, competent people. This combination is what makes us a pretty potent force, where it matters, when we deal with around 300 to 500 issues at any one time. And of course there are our magnificent farmers and their families. New Zealand is fortunate to have such dedicated, smart, hard-working and innovative people. Finally, I want to acknowledge and thank the two presidents and various board members with whom I have worked. They make a huge contribution. We don’t always get it right, nor do we always achieve what we seek to, however it is not for lack of trying. Federated Farmers has a big heart and its heart is in rural New Zealand. I am proud to have spent my last six years here as chief executive and I wish the organisation, its new president and new chief executive continued success. I am sure they will continue a legacy of representation that has now spanned more than 100 years. As Shane Jones said, “that’s me, I’m out”.

By Nick Clark

over the coming months and years. There are spending initiatives in the Budget specific to agriculture, such as $40 million for irrigation, $8.5 million in tuition subsidies for agricultural courses and $20 million for freshwater and environmental initiatives. Agriculture will benefit more generally from increased funding for research, science and for trade. Farmers will also enjoy large cuts to ACC levies which will be made next year, especially to the motor vehicle account where the average levy could be cut by as much as $130. However, probably the biggest ‘wish’ for agriculture is the need for enduring surpluses, based on spending restraint, to keep pressure off inflation, monetary policy and the exchange rate. Achieving a surplus is a considerable achievement but we need to be vigilant as hard-won gains can easily be lost. We only have to go back a few years to see the danger signs. The previous Government took advantage of large

surpluses and nearly doubled its operating spending between 2000 and 2009. Not only did this leave the government finances dangerously exposed when revenues fell in the wake of the GFC, but it made life very hard for the Reserve Bank. For much of the second half of the 2000s the Reserve Bank was forced to steadily increase its official cash rate to keep inflationary pressures under control. As a result, floating home mortgage rates exceeded 10 per cent by 2007 and some farm lending rates went even higher. High interest rates boosted the exchange rate to uncomfortable levels even though, unlike today, the tradeable sector was in recession from 2004 to 2009. New Zealand cannot afford a repeat and all political parties must now commit to keeping spending firmly under control and not to engage in lolly scrambles. To stay in the black we need to act like we’re in the red.

Budget benign for farmers Last month, Finance Minister Bill English delivered his sixth budget of the Nationalled Government. Mr English’s latest effort is different in the respect that it’s the first for some years to focus on managing a growing economy rather than recovering from a recession, the Global Financial Crisis (GFC) and the Canterbury Earthquakes. With a return to surplus forecast for 2014/15, this provides the Government with choices and is in direct contrast to the dire situation faced by Australia. The Government has determined that its priority for the coming year is to provide some extra spending while gradually reducing debt, with several targeted initiatives to support families and to tackle child poverty and housing affordability. Other choices such as tax cuts are also possible in future years and the debate between the mix of more spending and tax cuts will no doubt be debated vigorously

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June 2014 National Farming Review

NATIONAL POLICY

Thank you and goodbye

After three years at the helm of Federated Farmers, Bruce Wills reflects on what he’s learnt during his time as national president. years is that we are all utterly dependGraham is My time as national president of I will miss the cut ent on agriculture’s continued success an experienced Federated Farmers comes to an end on to keep New Zealand a first world chief executive July 4, so this will be my last editorial and thrust of economy. with his comment for the National Farming I have learnt that farming needs a latest role beReview. farmer politics strong, respected voice in Wellington ing the chief It has been an absolute privilege to ensuring policy outcomes are both executive of the represent New Zealand farmers on a and I will miss sensible and workable. Institute of multitude of issues over the past three I have learnt that politics matters, Environmental years. I will miss the cut and thrust of working with our that getting the balance between the Science & farmer politics and I will miss working economy and the environment is not Research — a with our staff, our many farmer represtaff, our many BRUCE WILLS easy and that you have to be in the Crown Resentatives around the country and all President black to be green. search Institute the various industry, environmental farmer I have enjoyed an international providing and Government groups I have worked component, which gives valuable inscience so closely with. representatives sight into our country through the eyes advice and services. When my phone goes quiet and the of others. We are seen as some of the Graham is Australian by birth and emails dive on July 5, I will no doubt around the best farmers on the planet, others holds an MBA from the University of wonder what has hit me, but I am marvel at our productivity, our natural South Australia and a Bachelor of looking forward to getting back to more country and all the beauty and our water. Economics from the University of farming. Of late, they marvel at our Adelaide. Federated Farmers is in great heart various industry, exponential growth in trade with I have worked closely with Conor and I know even better people will step China. There are, however, a few areas for six years and Federated Farmers in when I retire to the hills of Napier. environmental where we lag; we need to store more and the agriculture sector owes him a As well as a new president, there will water and keep pushing harder on huge debt of gratitude. be two new board members elected on and Government science and innovation. Graham will be a very worthy July 4. We also need to ensure we continue replacement and I look forward to The upcoming AGM will also be groups I have to grow agriculture and take very good him and the new board continuing the Conor’s last as chief executive after six care of our environment. Being clean very valuable work that Federated years heading Federated Farmers. The worked so closely and green is important but, as a Farmers does for New Zealand AGM will also be an opportunity for country, we also need to pay our way in farmers and the wider economy. many people to meet Conor’s replacewith. more competitive world. What I have learnt in the last three ment, Graham Smith.

MPI to be principal agency for animal welfare By Mark Ross To ensure a better overall response to adverse events the Ministry of Civil Defence and Emergency Management is currently updating the National Civil Defence Emergency Management Plan. A key component of the update is making the Ministry of Primary Industries (MPI) the responsible lead agency at the national and regional level for animal welfare issues. As it stands, no one agency has formalised responsibility to respond to animal welfare issues during an adverse event. Traditionally Federated Farmers has taken on the lead role for farm animals, with the SPCA filling the void for domestic pets. This has worked well in the field

using experienced volunteers with animal husbandry skills, but has been ad hoc in the way of overall national co-ordination. The appointment of MPI as the lead agency is supported by the National Animal Welfare Emergency Management (NAWEM) committee as it will hopefully lead to better access to resources and improved overall coordination of response actions. Under the new provisions all animal owners, or persons in charge, will be encouraged to develop their own plans to care for their animals during emergencies. It is planned that MPI will be coordinating the provision of the animal welfare function (including rescue, shelter, food, water, husbandry and veterinary care and other essentials)

for all animals, including but not limited to, companion animals, production animals, animals in research, testing, teaching facilities, zoo and circus animals, and wildlife. It will also be responsible for coordinating the planning for animal welfare in emergencies and maintaining the Government's reporting and advisory capability on animal welfare in an emergency. At the national level, in order to provide these services, support may be required from the NAWEM Advisory Group to provide advice on animal welfare issues in emergencies. Federated Farmers is a representative of NAWEM and will have a lead role to play from a national perspective, working along with MPI.

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At a regional level, in order to provide these services, support will also be required from members of Federated Farmers and other primary sector industry groups. This will involve providing direct support and coordination services to commercial livestock owners to assist in mitigating animal suffering as a result of an adverse event. Other organisations that will assist include the Society for the Prevention of Cruelty of Animals, New Zealand Companion Animal Council and the New Zealand Veterinary Association. Public health statutory officers will be responsible for advising local authorities on the disposal of dead animals and public health issues that may result from the death of many animals.

National Farming Review June 2014

www.fedfarm.org.nz Ph 0800 327 646

NATIONAL POLICY

Becoming a leader with Feds By Ann Thompson Federated Farmers is a funny old organisation: it takes people from a rural setting and attempts to turn them into leaders. Surprisingly, it does this very well. Many members who have chosen to join Federated Farmers have risen to do good things for their communities and for some, their country. John Hartnell, chairperson of Federated Farmers’ Bees and past Federated Farmers board member, was awarded the New Zealand Order of Merit for his services as a leader in Canterbury’s Farmy Army earthquake recovery team. Malcolm Bailey, ex-president of Federated Farmers is a Fonterra board member. Shane Ardern and Damien O’Connor are both MPs and were both active members of Federated Farmers. Another member, Lockwood Smith (now Sir Lockwood) is New Zealand’s High Commissioner to the United Kingdom. These people help populate just the top petal of the tall poppy of New Zealand farmers. There are so many more. Many farmers start off on the pathway to leadership by becoming interested in local issues. Maybe their rates were too high, the local school was looking for help or some bureaucrat came knocking on the door wanting to do something on their land. Many join Federated Farmers and go to local meetings so that the issue can be shared and solved. It is here that Federated Farmers can help give them skills. Agriculture needs skilled farmers to stand up in front of councillors at regional councils, MPs at Select Committees and

ACCOLADE: Federated Farmers’ Bees chair and former board member John Hartnell was awarded the New Zealand Order of Merit for his services as a leader in Canterbury’s Farmy Army quake recovery team.

around tables at meetings including zone committees looking at important topics such as water allocation and quality. It’s the farmer’s voice that needs to be heard to get the results that will be a win-win for all. While all farmers have voices, the ones that carry the most weight come

from those who know how to present an argument clearly and without too much emotion getting in the way. Agriculture also needs farmers who can stand in front of a television camera, aware of all the pitfalls that come with being caught out by that unexpected question, that a helmet needs to be worn if a quad bike is

Many farmers start off on the pathway to leadership by becoming interested in local issues. Maybe their rates were too high, the local school was looking for help or some bureaucrat came knocking on the door wanting to do something on their land.

involved, that stock and pasture need to be chosen if they too are to appear on camera. Federated Farmers teaches all this and more at their leadership courses, which are open to not just farmers but to anyone interested in learning leadership skills.

Employers need to watch time and wage records By Nick Clark Ministry of Business Innovation and Employment (MBIE) inspectors are doing the rounds checking farmers’ employment agreements, time and wage records for compliance with employment and minimum wage laws. What does this mean for farmers, and how can employers make sure they’re doing the right thing? Paying a salary has become increasingly common in the agricultural sector, as it is relatively simple for the employer and it also provides for a consistent flow of income to the em-

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ployee, which is useful for budgeting purposes. However, employers must be vigilant in ensuring that employees on a salary (as well as those paid by the hour) receive no less than the minimum wage of $14.25 per hour, for actual hours they work. This means employers need to keep accurate time and wage records documenting the hours worked per week for all their staff. Recent case law has also determined that seasonal averaging, or in some circumstances averaging over a pay period, is not permitted when calculating minimum wage. Salary can

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only be averaged over a week. The Government is now looking at amending regulations to allow for averaging over a fortnight, and while not a complete solution it will help. In the meantime, the position in law is that for salaried employees, compliance with the minimum wage should be assessed by comparing the hours worked to the amount of salary paid over a week. This is regardless of whether the employee is paid fortnightly or monthly. If employees are required to work extra hours (and in effect, fall below the minimum wage) then employers must top up the em-

ployees' salaries to at least equal $14.25 per hour. The employer's time and wage records should include information regarding the hours worked and the money paid for the hours worked. ■ See the MBIE website for more details on “Keeping accurate records”, to find out more Google that phrase. Federated Farmers has a suite of employment-related guidance and agreements. To get these please contact 0800 327 646. You can also use that number to speak to our friendly team of employment experts. RAV-JUN14-NFR

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June 2014 National Farming Review

NATIONAL POLICY

Food Bill: Almost over the line By Ann Thompson As I write, the Food Bill is finally progressing through to the finish line, having had its second reading in Parliament. Like many others, I am hoping that when you read this, the Bill will have finally (like the snail that it has been) got across the line and become law. It’s only taken about 10 years all up! The new Act replaces the Food Act 1981, and over time also replaces the Food Hygiene Regulations 1974 and the Food (Safety) Regulations 2002. It also makes consequential amendments to the Animal Products Act 1999 and the Wine Act 2003. However, because many regulations are yet to be developed, parts of the new Act will not come into force until early 2016, which gives food businesses time to adjust to the future. Federated Farmers’ main concern is to make sure that those farmers who feed their staff during shearing and calving and who sell non-high-risk produce at the farm gate, or at stalls in farmers’ markets, are not caught up in unnecessary red tape. From what we’ve seen, Federated Farmers is confident such farmers will be free to carry on provided they are aware of the risks that providing food for others on a small scale carries, and keep high standards in food hygiene — as they would use if they were feeding their own family.

BREAD AND BUTTER: The new Food Bill has taken about 10 years to come to fruition, but food safety is hugely important to New Zealanders and our markets.

Many dairy farmers who sell raw drinking milk (and those who buy it) will be wondering if this means certainty for them. While I can’t give them that certainty, I can say that the Ministry for Primary Industries (MPI) is working on it and for the moment there are no changes — five litres of raw milk can still be sold and bought at the farm gate. The long lead-in period for the new Act allows enough time for the review

of raw milk sales to be concluded and any new rules put into place. It is likely there will need to be standards issued under both the Animal Products Act and new Food Act. While Federated Farmers could complain about the length of time all this has taken, food safety is incredibly important to New Zealanders and to our markets. It is complicated, with large commercial enterprises and the small

Food safety is incredibly important to New Zealanders and to our markets. It is complicated, with large commercial enterprises and the small honeyseller needing to be accommodated within the same legislation. honey-seller needing to be accommodated within the same legislation. Thankfully all in Parliament agreed that what has finally hit the books is as good as we can get. MPI will be consulting on any regulations proposed and the Federation will be checking to make sure farmers are not caught up with the devil in the detail.

Global Research Alliance coming to New Zealand By Mark Ross The Global Research Alliance (GRA) is a science-based farming initiative aimed at increasing international co-operation to help reduce emissions and enhance productivity. New Zealand is a leading player in the Alliance and will be co-hosting overseas farming leaders on an agri-tech study tour in late 2014. The farming leaders will be selected from four countries via the World Farmers Organisation (WFO) and is fully funded by the Ministry for Primary Industries. The aim is to promote New Zealand agribusiness expertise and research programmes overseas. The WFO formally entered into the

GRA during February 2014. It has since established a long-standing partnership to facilitate co-operation and take advantage of the potential synergies by developing joint research projects and programmes. Federated Farmers is a key member of the WFO, with current National President Bruce Wills recently stepping down from the WFO Board. The GRA visit will enable the farm leaders to spend up to two weeks working alongside the New Zealand farming and agricultural science sectors. The intensive engagement is expected to create opportunities to exchange experiences, discuss areas of new and potential research and farm management practices, and how that

may translate on-farm. Organisations that will be visited include DairyNZ, AgResearch, Massey University, Plant and Food, along with the obligatory time in Wellington with politicians and officials. Time will also be spent on working farms in both the North and South Island. By engaging with the overseas farming leaders directly, it is hoped to reach a large number of working farmers and decision-makers who could benefit from the New Zealand technologies and farming practices. Individual participants will be in a position where they can influence others and spread the knowledge gained during the visit. The GRA was launched in Decem-

ber 2009 and now has 41 member countries from all regions of the world. It has made good progress in developing research and technology programmes that will help deliver ways to grow food using mitigation techniques that support the environment. An example is the work that the Livestock Research Group has initiated. This is focused on promoting ways to improve the greenhouse gas intensity of livestock production systems and increase the quantity of soil carbon stored in those soils. The idea is to increase agriculture production with lower emissions, improve global co-operation in research and technology and most importantly, work with farmers and partners to provide knowledge.

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NATIONAL POLICY

The way forward for pest management By Mark Ross Ever since Captain Cook landed in New Zealand in 1769 and claimed the land for the British Crown, we have been under invasion from a plethora of unwanted pests. The scourge of foreign animals across our borders such as rabbits, rats, possums, along with various weeds, and plant pests and diseases has led to pest management becoming a high priority industry. Given the number of historic pest invasions it is lucky we have few stinging, biting or disease-spreading animals or plants, with green pastures and healthy farm animals providing viewing pleasure as we drive through the countryside. Our native forests still dominate in many regions, thus attracting tourists from all parts of the world as they spend time marvelling at our unique biodiversity. Much of this uniqueness can be attributed to our current biosecurity systems that the Ministry for Primary Industries has implemented on the border and preborder, along with the stewardship of our landowners. Even though many pests have become well established the use of good management practices has reduced or annulled the worst effects. Take for example our Australian import the possum. A combined effort by the

primary industry and the Government has been successful in keeping the possum population at a manageable state, thus reducing the spread of Tb among our livestock and damage to our native flora. Because of the high profile of invasive organisms, a lot has been written about pests and I read with interest the recent publication from the Royal Society of New Zealand on challenges for pest management. The report provided some useful base information for consideration. What came through was that we need ongoing investment to ensure we have the tools to protect the country’s environment and economy. Many of our tools are now unavailable for use due to trade, environmental and public pressures, they no longer work, or are just not feasible to use. A classic example would be the recent declining by the Environmental Protection Agency of an application to import Macrolophus pygmaeus, a biological control agent to control greenhouse whitefly. The committee considered the benefits to human health and the economy did not outweigh the environmental risk. As outlined in the Royal Society report, to ensure we stay on top of the pest problem novel approaches to pest management are required. This includes

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PROGRESS ON PESTS: The primary industry sector and the Government have been successful in reducing the possum population and the spread of Tb among livestock and native flora.

making better use of information technology, gaining a better understanding of pest biology, developing more specialist research scientists and improving public engagement. A good starter would be having just one national body that can enable continuous improvements to current practices. A research programme which supports the work that will be carried out to improve pest management would also be useful. Even if these types of initiatives are taken forward, the

funding question is always present. The option of adapting a Government Industry Agreement (GIA) process for pest management has been thrown about and no doubt will be a factor in future funding equations. The GIA is currently only for response and readiness, and involves Government and industry sharing the costs of new pest incursions, along with surveillance and planning. Without funding the reliance falls back on basic resources, such as people and tools. To overcome the funding shortfalls, two recent initiatives are possibly leading the way for future pest management. The Chilean Needle Grass and wilding conifers are major pest problems in certain parts of New Zealand. Collaborative working groups have been formed between Government, councils, industry groups, landowners and research providers. This has enabled open discussions to be held and has led to buy-in from all into the best strategy to manage the problems. The completion of the Chilean Needle Grass Management Partnership Agreement and the soon-to-be-finalised Wilding Conifer Management Strategy highlights that working in partnership is the best way to progress the management of our pests. Industry is keen to be involved and sharing the load makes success a lot more feasible.

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June 2014 National Farming Review

COUNTERPOINT

Local govt in strong financial position Local bodies’ healthy asset to debt ratio would be the envy of other commercial sectors, writes Local Government New Zealand president Lawrence Yule Everyone has an opinion on council finances, because everyone has a stake in them as ratepayers either directly through their rates or indirectly through rent. Local Government New Zealand (LGNZ) welcomes the transparency of council finances and encourages the public to be aware of their council’s financial position, using appropriate context. It might surprise a lot of people to know that local government is actually in a very sound financial position. LGNZ commissioned analysts Grant Thornton to review key financial factors for councils across the country to produce an accurate overall picture of local government financial health. The report, Local Government: A Financial Snapshot, shows that the vast majority of councils scored well in metrics relating to their balance sheets, such as debt levels relative to their asset base, debt levels relative to their population, ability to repay debt and ability to cover interest (finance cost) obligations. Debt is not a bad thing when used responsibly as a tool for growth. While most councils have debt like most businesses, the levels of local government debt are sustainable. In fact, the local govern-

ment sector continues to have by far the lowest debt of any sector in New Zealand — household, business and central government. The local government sector LAWRENCE YULE has an asset base Local Government of around $121 New Zealand billion and debt president of approximately $11 billion — a ratio of debt to assets of around 9 per cent. This is the equivalent of a modest $36,000 mortgage on a $400,000 home. Central government has $241 billion of assets under management with $181 billion debt, while the business sector has assets of about $1.233 billion with liabilities in excess of $800 billion. By any measure, local government debt sits at very prudent levels. The Office of the Auditor General keeps an eye on council financial operations, auditing the full balance sheets of every single local authority in the

country each year to produce an annual summary showing the overall financial health of the local government sector. Its 2011/12 report, Local Government: Results of the 2011/12 Audit, shows indicators of long-term financial sustainability are all within a reasonable range. The report stated, “Operationally, the local government sector remains strong in this aspect. Debt levels have remained within a reasonable range. Local authorities’ ability to service that debt is also strong and consistent throughout the sector.” This is significant when we consider the local government sector is responsible for managing infrastructure and delivering a range of services that are vital to communities, including almost 90 per cent of New Zealand’s total road network length. Councils also take care of the bulk of the country’s water and wastewater networks, libraries, recreation and a range of other services and facilities that enable communities and businesses to operate. While financial performance in the sector is sound, LGNZ is working to strengthen it further. Earlier this year we

Debt is not a bad thing when used responsibly as a tool for growth. While most councils have debt like most businesses, the levels of local government debt are sustainable. launched EquiP, our Centre of Excellence that will deliver practical tools and services for councils on financial performance and other relevant topics including good governance, audit and risk, and executive performance. I encourage Kiwis to be involved in local government finances by taking an active role in their council’s financial position as they would in any other business that they are a shareholder in. You can do that by reviewing the contents of long term plans which are presented to the public for consultation. When council balance sheets are viewed with the appropriate context, it is clear the overwhelming majority of councils in New Zealand are in a strong financial position.

National Farming Review June 2014

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FEDERATION SPOTLIGHT

The Federation wants your feedback By Rhea Dasent One of Federated Farmers’ great strengths is that our regional policy work is informed by members.

This brings much-needed realism to local government decision-making around the country’s council chambers. Many local government regulations

are written without a full understanding of farming realities. It’s up to Federated Farmers to provide extra assistance to councils so they know exactly what happens down on the

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farm, and how a rule will impact on normal farming activities. Federated Farmers is able to provide real-life examples to inform councils, but to do this we need your help. Most of our policy advisors have rural backgrounds and the farming way of life is important to us. I grew up on a sheep and beef farm in Hawke’s Bay, and I am very proud to hail from several generations of farming forbears. My policy work is informed by this first-hand knowledge, but I really appreciate our members’ local knowledge when I am working in a district that is unfamiliar to me, or with farm industries that are outside my personal experience such as deer. Federated Farmers as an institution has a huge body of knowledge, and every member can contribute to this by providing their feedback when it is called for. To provide real representation of our members, your experiences and ideas are needed. Recently, Federated Farmers has ventured into using Survey Monkey as a tool to obtain members’ valuable feedback. Survey Monkey is an easy online tool through which farmers can fill out either traditional yes/no agree/ disagree questions, and also contribute their personal ideas and responses to particular regulatory situations. All responses are anonymous. The collection of member feedback like this is invaluable when it comes to representation and advocacy. It is compelling for decision-makers when we are able to demonstrate just how many farmers are impacted by a regulation and in what ways. Members are always welcome to pick up the phone or send an email to convey your feedback, and Survey Monkey adds another tool for members to convey their responses. Member-driven policy is what makes Federated Farmers so effective.

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Ph 0800 327 646 www.fedfarm.org.nz

June 2014 National Farming Review

REGIONAL POLICY

At home with the kiwi By Richard Gardner A number of Federated Farmers staff were brought up on farms, and I count myself lucky to be one of that number. The farm I grew up on, Mataia, has been my family’s “home” since the late 1860s, being currently owned by myself and my two sisters. We expanded it in the late 1980s to around 1300ha, of which some 800ha is productive, a mixture of rolling hills and marine flats. It is coastal and fronts the Kaipara Harbour. Although it is easy country, like much of Northland the heavy soils mean it gets particularly dry in summer and very wet in winter. Another 400 hectares is made up largely of coastal native forest margin and saltmarsh wetland, the area boasts rare populations of Fernbird and Banded Rail and is host to a large number of other native bird species. It is a significant roosting ground for arctic waders including Godwits and Lesser knots as well as local migrants including Pied oystercatchers, Pied stilts, Banded dotterel and Caspian terns. Part of the area was already protected under a QEII National Trust covenant. Much of the area had been used for rough grazing in the dry periods, but about 10 years ago we made the decision to close it all off permanently, and instigate an intensive pest control programme. With funding from the Department of Conservation, the Auckland Council and the family, the restoration of this area

DOWNTIME: A kiwi takes a well earned break from the spotlight after a busy day at Mataia farm on Kaipara Harbour.

became a long-term project aimed at restoring and enhancing the considerable ecological values of the area. With the help of community volunteers and local schools we now plant about 4000 native trees a year on the farm. However, all along we have been

mindful that the ‘‘Mataia Restoration Project’’ has to fit into a working and profitable sheep and beef farm, a part of which is currently being converted to dairying, in conjunction with a neighbour. Much of the work was done by my sister Gillian and her husband Kevin

Adshead, who long held a dream of returning kiwi to the area. We had to reduce the number of stoats, feral cats, rats and possums to a level where kiwis can live and breed safely, and we had to erect some eight kilometres of shade cloth fencing around the entire boundary of the property to keep kiwis inside the pest-controlled area. In May last year, in conjunction with the Kiwis for Kiwis programme, we had our first release of eight kiwi, brought over from the breeding programme on Moturoa Island. By early this year, the success of the first release was evident, with at least one kiwi chick having been born, and we had a further release of some kiwi in April. This was a more high-profile event, and we were honoured to have the Prime Minister in attendance, together with some Kiwis for Kiwis programme board members, sponsors and ambassadors, and some 500 other guests. Local iwi Ngati Whatua O Kaipara welcomed the visitors and the new kiwi with a powhiri, with local school children marking each speech of the welcome with a waiata. Having the Prime Minister at the latest event was great but what stood out to us was the way the community turned out. It was a genuine community day and a celebration of how farming and conservation are flipsides of the same coin. Our target is to have a founder population of around 40 kiwi on the farm. We’ll be pretty close to that with this latest kiwi release.

NATIONAL POLICY

Federation supports more funding for biodiversity Federated Farmers recognises the importance of our indigenous biological diversity as an important component of our identity as New Zealanders. We want to actively protect and enhance our indigenous diversity for everyone to enjoy. Farmers spend millions annually on managing areas through weed and pest control, fencing and regeneration through planting and enhancement. The rate at which landowners are queuing up to

covenant special areas on their farms has grown exponentially in the past 10 years. Our members are extremely proud of their work on their farms to protect and enhance biodiversity. The Federation believes this ethos should permeate Government policy on biodiversity. It is incredibly important to our farm businesses that they can maintain the ability to cost-effectively remove indigenous plant species and control their

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regrowth. It was the ability to continue those activities and the wide-ranging scope of the proposed National Policy Statement on indigenous biodiversity that led to wide concern among farmers about its impact on the productive sector. The Federation strongly supports and acknowledges the existing investment in partnerships, with two agencies working with land owners to enhance and protect our special places and

things, QEII Trust and Landcare Trust. If the Government is serious about protecting indigenous biological diversity, it must be willing to invest on behalf of all New Zealanders in more weed and pest control on its own lands and in supporting partnerships with landowners through the QEII Trust, Landcare Trust and local government. This could be pursued through support of existing initiatives, by way of direct funding and through a contestable fund.

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National Farming Review

June 2014 www.fedfarm.org.nz

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FEATURE

Rural communities

The earthquakeprone buildings Bill is still being considered, but there are already concerns about its implications. For rural communities it could have detrimental consequences as business owners and farmers grapple with compliance and demolition or strengthening costs, John Donnachie writes.

It’s almost four years since the first Canterbury earthquake struck in the rural setting of Darfield, triggering a chain of devastating events which still reverberate today. The aftermath and impact has been equally distressing, with lives lost and many Cantabrians losing their homes and livelihoods as buildings are declared unsafe or earmarked for demolition. For rural Canterbury the consequences have been less harsh and some have even prospered as urbanites have relocated, bringing money into dormant local economies while revitalising dwindling school rolls. Still, that same predicament which caused townies to up sticks and move to the country could be about to surface in rural settlements across the nation. The Government has identified between 15,000 and 25,000 buildings as

SHAKY PROSPECTS: Buildings built before 1976 — many of which are found in our provincial centres — are likely to be assessed as unsafe with building owners saddled with costs for replacement, repair or demolition.

being “earthquake prone”, the variance in estimated numbers attributed to the lack of records kept by local authorities. To ensure there is no complacency around earthquake strengthening, the Government plans to adopt a national approach to earthquake-prone buildings. Under proposed new guidelines all buildings will have to meet the criteria of 34 per cent of the new building standard (NBS) regardless of their location, urban or rural. City and district councils will have to assess all non-residential buildings and all multi-storey, multi-unit residential buildings within five years of the new legislation coming into force. It’s estimated there are 193,000 of these buildings. The councils will be required to record on a national register the seismic capacity of all these buildings. The Ministry of Buildings, Innovation and Employment (MBIE) would administer the system and data would be available to the public. Owners of earthquake-prone buildings will then have a further 15 years to either strengthen them to the 34 per cent NBS or demolish them, although some heritage buildings will be able to get

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extensions of time. The majority of buildings constructed after 1976 are not considered earthquake prone and are expected to meet compliance. However, buildings built before 1976 — many of which found in our rural and provincial towns and cities — are likely to fail and the Government proposes that building owners will have to meet the subsequent costs of strengthening or demolition. Moreover, with around 50 per cent of the nation’s pre-1976 building stock located in rural and provincial towns, the impact on farming communities is likely to be significant. Federated Farmers’ buildings spokesperson, Anders Crofoot, described proposals as akin to “trying to crack an acorn with a sledgehammer”. He said “While seismic strengthening in high-rise Wellington and Auckland makes sense, that urban profile isn’t Masterton or Gore or Oamaru. While there are earthquake risks they’re not exactly the same.” Business NZ also warns of dire consequences for rural centres: “Smaller communities with older buildings could

struggle to pay for extensive upgrading and might be forced to pull them down. “The policy could lead to many buildings across the country being demolished needlessly.” Consultancy Martin Jenkins and Associates, whose economics model was endorsed by the Royal Commission and used by the Government, posits modest benefits, leading to one experienced economist, Ian Harrison, concluding “The benefits are low because very few lives will be saved by the Ministry’s proposals.” Federated Farmers agrees with this conclusion in regard to projected costs of $1.7 billion, well exceeding benefits of $37 million, with actual costs likely to be substantially more — some reports suggesting closer to $10 billion once insurance, financing and depreciation in market value are considered. However, the Government believes it has the right balance between managing the risk posed by buildings in an earthquake and the costs of strengthening or removing them. The National Farming Review recently interviewed the former Minister for Building and Construction, Maurice Williamson.

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June 2014 National Farming Review

FEATURE

face uncertain future BUILDING X

UNMOVED: Former Buildings & Construction Minister Maurice Williamson said reaction to the Bill was bordering on “poorly founded hysteria”.

Location: provincial NZ Age: 1930s Land Value: $59,000 Floor size: 312 metres Rating Value: $230,000 Cost of repair: Up to $180,000 Replacement cost: $900,000- $1m Rental returns: $21,000 per annum [Based on a current building valuation and engineer’s report]

EASE UP: Federated Farmers buildings spokesperson Anders Crofoot says proposed requirements for pre-1975 buildings are heavy-handed.

Mr Williamson described reaction to the Bill as bordering on “poorly founded hysteria” with proposed strengthening requirements being to a “minimum standard”. He said there were many false perceptions around the proposals. “Our decisions are based on findings by a Royal Commission. MBIE has contacted all 69 councils. It has been an extensive consultancy with over 530 public submissions.” Those who complained about meeting compliance and costs couldn’t possibly substantiate those concerns as no one including the Government had any idea of the costs involved at this stage. The proposals were not, contrary to media reports, a ‘one size fits all’. Depending on location and seismic risk, 34 per cent of NBS varies. For example, buildings constructed at 34 per cent NBS in Auckland would have less tolerance than a building in Greater Wellington region with the same capacity, due to the region’s buildings having been designed for higher seismic occurrences.

Mr Williamson said from his experience of attending meetings throughout the country the vast majority were in favour of the Bill. “A lot of people have insisted that the building code be actually increased to 67 per cent. [Besides] I know of many building owners who are already strengthening their buildings,” he said. When pressed on whether all farm buildings would be exempt, Mr Williamson said the majority should and there would be no need to apply for it “but dairy sheds which employed four or more people for eight hours a day” might need closer scrutiny. This implies it would affect shearers also. It’s unclear if farm owners will be granted exemption from undertaking a potentially costly and time-consuming application process. The Federation believes exempting farm buildings unconditionally would be cost-saving and provide greater certainty for councils and building owners. Overall, Federated Farmers agrees in principle with the Government’s recom-

mendations around identifying and addressing dangerous buildings in a timely and cost-effective way. Still, there is disappointment that the consultancy process omits a draft of regulations. Without disclosure of the regulations the Federation believes proposals lack clarity and foster uncertainty. Mr Williamson however, was adamant that the Government would not usher them in by default. “Regulations are so important. There will be time for people to consult on them. I can assure you we will not be rushing that through like we would perhaps with other legalisation,” he said. When informed that a number of authorities including Local Government NZ (LGNZ) were concerned around aspects of the Bill, the former minister expressed surprise. LGNZ is particularly concerned that rural-based councils will be exposed and left to fill the void in carrying out remedial work and demolitions. President, Lawrence Yule, predicted the imposing of stringent standards and time frames on old buildings “will destroy rural New Zealand”. The shift in demography and population, coupled with lack of investment and

growth in provincial centres had not been factored in, and, with proposed legislation, this would place too great a burden on communities already in terminal decline. Mr Williamson, though, was unfazed: “If LGNZ say it’s unacceptable and too expensive then we will have to agree to disagree,” he said. He also poured scorn on “quickfire” conclusions that rural communities could be at risk and decimated by the Bill. “It would be crazy if people think that as a National MP I would bring hardship on rural families who are constituents. That is simply not going to happen,” he said. There were plans to adopt a tiered system “to ensure a pragmatic and workable approach to undertaking [all] assessments”. Federated Farmers recommends that this includes flexibility around prioritising buildings least likely to perform well in a large earthquake and areas more earthquake-prone and vulnerable to the consequences. However, Mr Yule is not convinced that the Government will be flexible. He was happy to be advised otherwise but there wasn “nothing in the proposals” advocating a tiered approach towards addressing regional variability. LGNZ is also calling for more focus on older buildings with parapets and verandas. Rather than concentrating on the whole building, the priority should be on securing parts of the building which pose the greatest risk. Federated Farmers agrees that this is sensible and provides best bang for the buck. The Property Council New Zealand is also uneasy. While it supports the rudiments of the Bill, it fears the Bill’s aims are unachievable. ■ Continued on page 12

National Farming Review

June 2014 www.fedfarm.org.nz

Ph 0800 327 646

FEATURE

Quake Bill will hit communities ■ Continued from page 11 Chief executive, Connal Townsend, said any building below 30 per cent NBS was unacceptable for tenants and insurers and many would understandably walk away, so there would be motivation for landlords to address this. The Property Council also agreed with the Government that territorial authorities had too many wide-ranging differences for addressing quake strengthening requirements. However, while the proposals were necessary, burdening building owners with the costs was unrealistic. “The economic impact is going to be huge. Tenants and insurers are going to make demands on building and business owners which are going to be difficult to meet,” said Mr Townsend. For landlords with older rural buildings, the situation was looking grim. There were no incentives to improve buildings. Not being able to claim building strengthening expenses against their tax means many would be financially hamstrung or driven away.

‘‘We need a change to the current tax regime. No one can honestly afford the costs. There is not a snowball’s chance in hell, unless all repairs can be written off as tax deductible. It [the Bill] won’t work in its current form, the tax field is too heavily stacked,’’ he said. The situation resembled what economists call ‘blackhole expenditure’. Building owners who made improvements would struggle to attract tenants after an inevitable rise in rental rates to recoup costs and losses incurred. Those unable to undertake repairs would face higher insurance premiums, plus a likely loss in rental returns and tenants. Mr Townsend believed the Government should use revenue derived from GST, taxes and other subsidies to help those affected with costs. Otherwise, costs would ultimately fall on already cash-strapped councils. A Federated Farmers provincial president has grave fears for his local community.

The president, who requested anonymity, believed 90 per cent of buildings in his nearby town would not meet compliance. The likelihood was many building owners would leave as it was not economically viable to do remedial work. He had viewed an engineer’s report advising a local building owner that to meet basic compliance it would cost around $150,000. ‘‘You could sell up, but to whom, and what price are they going to offer? Maybe if you are quick or rich enough you could buy the whole street up,’’ he said. Even demolishing a building could run into tens of thousands dollars and there was no guarantee the building owner would be willing or able to pay. Structural engineer Warrick Weber told the The National Farming Review that Government proposals to get buildings up to 34 per cent were “fair and reasonable” but there needs to be a pragmatic approach to the process. He envisioned a preliminary

scheme which prioritised the strengthening of vulnerable parts of a building. Mr Weber, who has been assessing buildings in Christchurch, said the short-term focus should be on securing parapets and verandas and other lowlying frontages. ‘‘Many parapets which fell in Christchurch caused a domino effect, crashing onto verandas fixed on to the front of the building, causing the whole frontage to collapse. ‘‘It is critical to address this and get it right. It’s a relatively cost-effective measure and the work can be done quickly,” he said. Meanwhile, the Bill is before the Select Committee and the Prime Minister has chosen Nick Smith as Mr Williamson’s replacement. In its submission, Federated Farmers urges the Government to delay the Bill until draft regulations are disclosed. The costs around administration and implementation of the proposed system should be reviewed — this includes assistance for councils and compensation for building owners.

OPINION

Forget the payout drop, dairy is still great news By Willy Leferink Federated Farmers dairy chairperson When the dairy payout is high media coverage borders on envy, but when it drops it becomes an economic disaster. If we chuck in a food scare it brings out armchair experts calling for an end to dairy’s domination. My answer is easy, go for it. It would be fantastic if we had two or more industries equal to dairy. It is so easy to criticise and complain, but it is much harder to get off your backside and do. Sir Peter Jackson did just that and built a major film industry. Like the dairy industry, this now has some sniping at him for being a success. While GlobalDairyTrade auction prices are down 22.6 per cent since the early February peak, we need to understand that if we made iPhones instead, there’d be a similar gnashing of teeth over market share, or Samsung’s latest innovation. A short-term view misses

When this season’s payout is adjusted for inflation, we will receive the second highest total payout in Fonterra’s history. The next season, kicking off June 1, opens with a forecast that is less than this, yes, but if it holds, will still become the fourth highest. Where’s the bad news in that? the bigger picture because the world needs one and a half times more dairy than what we produce in a year. That’s just to stand still. In the year to April the value of our dairy exports was $3.8 billion up on the previous year,

reaching a staggering $15.2 billion. When this season’s payout is adjusted for inflation, we will receive the second highest total payout in Fonterra’s history. The next season, kicking off June 1, opens with a forecast that is less than this, yes, but if it holds, it will still become the fourth highest. Where’s the bad news in that? Agriculture will have bumper years and average years but the trend is what matters. As is the motivation for people to take calculated business and personal risk. The record payout remains the drought-affected 2007/8 season and with a 50:50 risk of an El Nino this year, we don’t seem to have learned much from history. Drought is bad for the wallet and the environment but the politicisation of water storage is worse. If we don’t store rainfall we miss out on both farming’s economic upside and the means to improve the environment.

Heck, even Fish & Game Canterbury in Fairfax Media found healthy salmon fisheries in the heart of Canterbury’s dairy country. A little less aggro and more co-operation is what we want but that doesn’t make for good politics, does it. It also makes no sense to have proposed nitrate levels for Hawke's Bay’s Ruataniwha water storage scheme that are 14 times more stringent than international standards for drinking water. If this spreads wider, we are talking Farmergeddon for how we currently farm and I don’t just mean dairy. This dragnet will cripple horticulture, viticulture, sheep, beef and goats too. Even those in Grey Lynn will not escape the resulting impact. While Fonterra farmers are upbeat on the payout and the forecast, they’re less upbeat over where policy and politicians are taking us.

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June 2014 National Farming Review

REGIONAL POLICY

Rezoning can be problematic By Rhea Dasent Rezoning is problematic for farmers. Rates bills can sometimes lead to a vicious cycle where the farmer has to subdivide in order to realise capital. Council rezoning could have a bigger impact on your farm than the council at first appreciates. With many district plans undergoing review and zoning changes, your farm could be unfairly rated for its subdivision potential. In Horowhenua district, the council redrew the urban boundaries with an optimistic eye for growth. This meant that some farmland was now zoned as residential. A year after the zone boundary was extended, this district also had a rating revaluation. The value of the farm skyrocketed because it was now valued for subdivision potential, even though the owner did not want to realise this. Rates subsequently skyrocketed too. Federated Farmers has encountered a similar problem with coastal farms around the country, whose land value is sometimes enormous due to the beautiful views and potential for lifestyle subdivision. Rates bills can sometimes lead to a vicious cycle where the farmer has to subdivide in order to realise capital.

Councils sometimes wash their hands of this problem and say that QV is the culprit as they are the organisation that determines rateable value of properties. However QV works on a mass appraisal system, and on their website warns that this may not give a true indication of the market value of an individual property. Property owners have only about six weeks to formally object to a new rating valuation, and often the implication on rates can be overlooked. However, councils do have an ability to address this rating inequity by having a rates remission or postponement policy. Kapiti Coast district has one such policy for farms that are within urban rating areas, which is aimed at encouraging farmers to refrain from subdividing. Whangarei District Council has a policy for farms that have high land value due to their coastal location, and acknowledges that the rates levied would otherwise be a disincentive to the continued use of the land as a farm. Federated Farmers encourages other councils to have similar policies. Rezoning may be great for the developers, but for farmers it can be a real rates headache. Make sure you let your regional policy advisor know if this is happening to you.

UNWELCOME CHANGE: When farmland is rezoned into residential status, skyrocketing rates can force farmers to subdivide land to meet rates bills.

Let’s not burst the dam — Ruataniwha is a must By Will Foley Hawke’s Bay provincial president The draft report from the Tukituki Board of Inquiry is a poor outcome for the entire Hawke’s Bay community, not just farmers. The board’s provisional findings won’t be good for Hawke’s Bay if they end up blocking the single largest environmental and economic opportunity we’ve got from progressing. Ngai Tahu’s polite wording in its withdrawal simply reflects the kicking Ruataniwha got in the draft decision. They are a big loss but Ngai Tahu is also one very smart farmer. If they see the scheme is a financial goer then I am certain they’ll be back, as will other investors. This could become an opportunity to get further direct farmer investment in the dam, as we have seen in the very successful Opuha dam scheme down in South Canterbury. Whatever the ownership structure is, to make progress the Board of Inquiry has

to use its one-month extension to seriously re-evaluate the evidence of experts like Niwa. Niwa and the Cawthron Institute aren’t muppets. Their evidence is backed by credible science so it must be taken seriously. This dam matters to Hawke’s Bay. We can be much more than one huge retirement village. The Board of Inquiry’s draft decision says it doesn’t wish to burden good farmers while balancing economic development with protection of the environment. It may sound good in theory but that’s not the practical outcome of its draft decision. Its draft decision means existing sheep and beef farmers and horticulturists will need consent as our current farming methods will be deemed to be against the law under this draft decision. That is whether the dam proceeds or not. If the board’s draft report rubber hits the decisions road, most farmers will be

caught in its dragnet. It puts the future of all farming on the fertile Ruataniwha in jeopardy, including me. With Niwa and Cawthron Institute input, Hawke’s Bay Regional Council wanted to strategically manage both nitrogen and phosphorus right across the catchment. This sensibly covered town and country alike. Water quality is the responsibility of everyone in the community and it shouldn’t just be about one nutrient. Yet the draft report focuses mostly on nitrogen and it doesn’t make sense if you actually care about water quality. In a changing climate, locking the Tukituki River into a future with variable and low flows doesn’t make sense either. We now appear to have a proposal which, frankly, overcooks the emphasis on nitrogen so much that the pan has boiled dry. That pan is farming and the Hawke’s Bay community. This draft report will likely catch all farmers, not just dairy which some wish to focus on. We’re talking the guys who

grow crops, the guys who run orchards and even the guys who grow the grapes our region is famous for. Sheep and beef farmers like me will likely need consent just to do what we do now. I get that the Board of Inquiry has had a lot to do in a short amount of time. This extension will give them the space to fully re-evaluate all the evidence presented to them. It’s a chance to get the final decision right. We all know that Hawke’s Bay gets dry and there’s the prospect of climate change, so this dam provides an opportunity to make a real difference. This puts the ball in the court of both Government and the opposition parties. We must call out empty promises of climate change adaption and regional economic development because Ruataniwha is both. If you oppose Ruataniwha you are saying climate change isn’t real despite a potential El Nino and that you don’t give a rat’s about the regions.

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National Farming Review

June 2014 www.fedfarm.org.nz

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REGIONAL POLICY

Canty farmers notified on run-off By Dr Lionel Hume The Canterbury Land and Water Regional Plan (LWRP) contains a set of nutrient management rules designed to limit the diffuse discharge of nutrients from farming. These nutrient discharge provisions apply to all farmers and will radically constrain intensive farming within the region. In red zones covering much of the Canterbury Plains, where water quality outcomes are deemed not to be met, or sensitive lake zones, where there are particularly sensitive receiving environments, the LWRP effectively imposes a moratorium on intensification of land use until catchment-based limits are set in sub-regional plans. To assist with the management of nitrogen (N) discharge, the Matrix of Good Management (MGM) project is currently under way. This project will establish a matrix of N discharge values to be achieved by adopting good management practice (GMP) under particular combinations of land-use, soil type, climate and topography. Typically the MGM values will be based on the adoption of practices which minimise N discharge, while being reasonable and cost-effective. The expectation is that all land users will perform at the level of good management practice defined by the MGM project. In addition, water quality and water quantity limit-setting processes are under way throughout Canterbury to set catchment-based limits in collaboration with local communities. Nitrogen discharge loads are set for catchments which satisfy the environmental objectives established in consultation with local communities. Where these loads are the same as or greater than the discharge loads under current land use, then it will be sufficient for land users to operate at GMP. Where the N discharge load under current land use exceeds the load limit, then reductions in N discharge, below GMP, will be required. Where the ability to discharge N is nearing full allocation, fully allocated or over-allocated, a number of discussions must take place. Firstly, it must be decided how the right to discharge N will be allocated. Options range from grandparenting (based on GMP) at one extreme to equal allocation (per hectare) at the other. (Grandparenting would allow the continuation of current land use and discharge, at GMP for the particular land use.) If clawbacks of N discharge are required, it must be decided how these

FLOW-ON EFFECT: The application of nutrient discharge allowances in Canterbury has the potential to radically affect land use.

will be applied to different land uses and to high versus low dischargers. There are substantial equity issues around all of this. Grandparenting favours current high dischargers. It may prevent landuse change by low dischargers and decrease the value of their land. In contrast, equal allocation favours low dischargers by giving them a windfall allocation that they currently don’t need and penalises high dischargers by leaving them without sufficient discharge capacity and failing to recognise their previous investment. Where clawbacks are required, the tendency to date has been to require greater percentage reductions from high compared with low dischargers. So far, clawbacks have been applied on a land-use basis, with greater percentage reductions required from dairy farmers than other land users. Where there is potential for further intensification of land use in fully or over-allocated areas, headroom must be created to enable this to happen. This can be done by reducing the discharge of existing users or by alternative

approaches to address environmental issues. Alternative options may include augmentation of water bodies with fresh water to dilute nutrients. Proposed examples of this are the augmentation of Wainono Lagoon in South Canterbury with Waitaki River water, and managed aquifer recharge to reduce nitrate concentrations in shallow groundwater in the Hinds catchment in Mid Canterbury. The application of nutrient discharge allowances in Canterbury has the potential to radically affect existing land use and greatly constrain intensification of land use. In the Selwyn-Waihora zone (Central Canterbury), it is proposed that dairy farmers will be required to reduce N discharge 30 per cent by 2022 (from a baseline of GMP) in order to address environmental issues in Te Waihora/ Lake Ellesmere and to create headroom for the Central Plains irrigation scheme. The situation is far from simple because the Central Plains scheme also assists with addressing some of the environmental issues.

In the Hinds catchment (Mid Canterbury), it is proposed that dairy farmers will be required to reduce N discharge 50 per cent by 2035, while farmers in the upper catchment will be locked into their current N discharge, even though they have not contributed to the elevated nitrate concentrations in lower plains groundwater. In other catchments, such as some in South Canterbury, with deep, fine textured soils, operation at GMP will be sufficient to achieve environmental objectives. For Waihao/Wainono in South Canterbury, operation at GMP will be sufficient as long as Wainono Lagoon is augmented with Waitaki River water. To assist with nutrient management, the Land and Water Partnership (convened by Federated Farmers) is working toward a common primary sector position on the allocation of nutrient discharge. It is crucial that the primary industry reaches an agreed position which is as fair as possible, so that land users are not pitted against one another during limit-setting processes as these occur both across Canterbury and around the rest of the country.

Climate change will raise South Canty drought risk By Dr William Rolleston Federated Farmers vice president According to the National Institute of Water and Atmospheric Research (Niwa), New Zealand and South Canterbury have a 50:50 chance of enduring a major El Nino this spring. This genuine cause for concern boils to the surface every seven to 10 years. Cast your mind back to the last event, in 2007/8, and any examination of far records will reveal it was not a stellar year for the economy or on-farm production. Indeed this last big El Nino knocked almost $3 billion out of the economy and was the event that tipped New Zealand into recession well before the global financial crisis. What we know in El Nino years is that South Canterbury is highly prone to

drought. Of course our province happens to have an ace up its sleeve for those within its reach and it is called the Opuha Dam. What we can take from this warning from Niwa is the time it gives us to prepare feed and stock management plans. Of course, we all hope it is wrong yet when it comes to El Nino we also know it is never an if, but a when. When you put this periodic chance of an El Nino with a climate change model suggesting rain could decrease by 20 per cent for the east coast area, from south Canterbury up to the East Cape, then some serious investment decisions are needed. These decisions are needed to research crops and pastures which require less water and fewer nutrients. There are also important infrastructure decisions needed for

our towns and farm system alike. It makes the Labour Party’s recent anti-irrigation stance a perplexing reversal from when Jim Anderton was Agriculture Minister. Winding up the Crown Irrigation Company flies in the face of both regional economic development and regional climate adaption. It is also at odds with Labour’s desire to enact the world’s most repressive Emissions Trading Scheme. While water is vital to farming, without stored water to maintain flow levels, some of our rivers will increasingly run lower and warmer. Lower and warmer rivers do not auger at all well for biodiversity. What it means is that farming and the environment are equally impacted unless we do something beyond shuffling paper. That something is South Canter-

bury’s Opuha Dam. Opuha is an unqualified environmental success even acknowledged by Fish and Game. It is also an unqualified success for farming, recreation and aquatic life. It is why we need more Opuha Dams and why the Labour Party needs to revisit this abandonment of regional climate change adaption and the economic double jeopardy posed by its version of the ETS. Our view is that a blind adherence to headline reduction targets for New Zealand agriculture is not doable and is not being a good global citizen. Penalising our farmers for being world’s best output will only reduce production and that production will be picked up offshore by less productive farmers. Where’s the good in that for South Canterbury?

Ph 0800 327 646 www.fedfarm.org.nz

June 2014 National Farming Review

EMPLOYMENT

Health and safety bill set to impact By Neil Beadle The Health and Safety Reform Bill is before a Select Committee after passing its first reading in Parliament. Farmers, farm workers, land owners, managers and their suppliers of plant and contractors will need to review their risk management processes and demonstrate due diligence under the new law. In 2011, the Department of Labour (now Worksafe New Zealand) published ‘Guidelines for the safe use of quad bikes'. On average, five people are killed on our farms each year in work-related quad bike accidents. That guideline is endorsed by Federated Farmers, which was consulted on in its preparation. The key messages of the guideline are: ■ Always wear a helmet ■ Choose the right vehicle for the job — pay close attention to manufacturers’ instructions on carrying passengers and maximum load limits. ■ Don’t let kids ride adult quad bikes. ■ Riders must be trained or experienced enough to do the job. The recent prosecution of a Marlborough farm worker for not wearing a quad bike helmet, resulting in a fine of $15,000, will have made farmers focus on that particular obligation. But the guideline also recommends the practicable step of recognising dangerous areas by establishing ‘no-go’ zones in farm health and safety plans. To get an understanding of the new health and safety reform bill's impact on farming it is worth looking at the roles of sharemilker and farm owner in a recent health and safety prosecution which relied on the guideline. A Mangakino company sharemilker who had an otherwise exemplary record towards equipment, experience and training had an instance on farm where a farm worker overturned his quad bike and was asphyxiated when it fell on top of him. The sharemilker had adopted the health and safety system of the farm owner which was a significant farming enterprise. The sharemilker pleaded guilty to a single charge under the Health and Safety in Employment Act for failing to have a map of ‘no-go' zones of the farm and promoting the map to the farm employees. This was the first prosecution for such an omission. Reparation of $75,000 was ordered for the family of the deceased farm worker, and the sharemilker was also ordered to

BE READY: Under the new Bill, farmers can expect greater scrutiny from MBIE inspectors toward their farm safety and processes.

pay a fine of $28,150. The reparation was paid by the sharemilker's insurer, but the fine had to be paid by the sharemilker personally. Under the new Bill, greater scrutiny in that case may have fallen on the farm owner and manager, and led to criminal charges. Furthermore, the new Bill imposes clear personal responsibilities on the directors and managers involved, rather than merely the corporate or trust entity that owns or manages the farm. So, farm owners and sharemilkers should be reviewing their processes in anticipation of the passing of the Bill later this year, with a view to ensuring that not only the company or trust involved in the farm complies with the guideline, but that the directors and ‘officers' can also demonstrate they have considered the issues and assured themselves that the company or trust is doing so. ■ Neil Beadle, Partner, DLA Phillips Fox, acted for the sharemilker in the prosecution referred to above and advises on compliance with health and safety obligations.

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National Farming Review

June 2014 www.fedfarm.org.nz

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ECONOMY

Caution will serve dairy sector well By Anne Boniface Westpac economist For many farmers the 2013/14 season will be remembered fondly. For dairy farmers, high prices combined with favourable weather conditions in many parts of the country have given incomes a big boost. Other farmers have also enjoyed an improvement in farm gate prices (albeit not quite to the same extent). More broadly, the New Zealand economy is also enjoying a sweet spot. However, we don’t think such favourable conditions will persist in either case. Judging by recent behaviour this appears to be a view many farmers share. The New Zealand economy is hitting its straps with strong growth driven by high commodity export prices, the Canterbury rebuild, buoyant consumer spending and surging business investment. However, we doubt we will see the pace of growth achieved over the first half of 2014 sustained much longer. Many of the drivers of the current upturn are largely a temporary phenomenon. This year rising interest rates are set to slow the housing market and with it consumer spending, the high exchange rate remains a drag on the export sector, dairy prices have fallen and, although we haven’t yet hit the peak, the pace of acceleration in the Canterbury rebuild has slowed. All this is likely to see the quarterly pace of growth in the New Zealand economy moderate from about 1 per cent a quarter currently to 0.7-0.8 per cent a quarter by next year. While it can sometimes be difficult for businesses and households alike to balance

LOADED UP: The dairy industry carries the bulk of agricultural debt — around 65 per cent of all farming debt comes from that sector, with the debt relatively concentrated.

current conditions with keeping one eye on the horizon, farmers appear to be taking a sensibly conservative approach to recent strength. The Reserve Bank, in its recent Financial Stability Report (a bi-annual publication where the Bank comments on the health of the New Zealand financial system) looked at debt levels in the agricultural sector, and dairy sector more specifically, in some detail. The dairy sector is an area the Bank

watches particularly closely for a number of reasons. Firstly, it carries the bulk of agricultural debt — around 65 per cent of all agricultural debt is in the dairy sector. And secondly, dairy debt is relatively concentrated. The RBNZ reports that 50 per cent of all dairy debt is held by around 10 per cent of farmers. Consequently, if dairy farmers were hit by some kind of adverse event (be that weather, a sharp rise in interest rates or a plunging milk prices)

which made it difficult for them to service their debt, it could have consequences not just for individual farmers but for New Zealand as a whole — which is when the Reserve Bank starts to worry. The good news is that for now, the Reserve Bank seems reasonably pleased with the relatively cautious attitude of farmers to the recent big jump in incomes. Farm turnover has picked up noticeably, climbing 27 per cent in the year to April 2014, and there has been upward pressure on prices. There has also been a pickup in investment on farm. Yet despite all this, growth in farm debt has slowed. Instead of capitalising higher incomes into higher land prices, many farmers are opting to use the additional cash flow this season to reduce debt. The recent 20 per cent-plus fall in international dairy prices and expectations of a substantially lower 2014/15 dairy payout makes this look like a sensible attitude. Elsewhere in the economy it’s the likely prospect of rising interest rates which should be factored into firms’ and households’ decisions. The Reserve Bank has now raised the OCR by half a percentage point since kicking off its tightening cycle in March, and we think it has some way to go yet. Three more 25 basis-point rate rises are likely this year, with the tightening cycle not expected to peak until late 2016, when the OCR reaches 5.25 per cent. This could see floating mortgage rates getting close to 8 per cent.

OPINION

Crunching the numbers on monetary policy By Jamie Falloon Federated Farmers Wairarapa provincial president Some key issues for farmers are compliance costs and requirements. This is specifically health and safety, environmental quality, taxation, investment rules and general policies that affect economic performance, both domestically and internationally. One of the Labour Party’s recent big policy announcements is changes to the Reserve Bank Act and monetary policy. Currently, the independent Reserve Bank (RB) Governor uses monetary policy tools, interest rates, to either cool or

stimulate the economy, depending upon an inflation target. Interest rates that are higher relative to the global economy mean that money will flow into New Zealand — so people have to buy the NZD to receive good interest rates. This increases the price of the NZD, reducing returns to exporters if they haven’t been able to increase price to offset the increase in the NZD. It also makes cars and capital goods cheaper. The new Labour policy would change the RB independence, by the fact that all New Zealanders would have to become members of Kiwisaver.

If the RB thought the inflation target was going to be breached, they would adjust the rate of Kiwisaver spending to remove money from the economy. On the face of it, this is a good idea, as interest is not lost and savings increase. It is possible then lower interest rates will mean less demand for the NZD and lower rates. However, this is not always the case as interest rates are just one part of pricing foreign currency. When the Kiwisaver contribution is increased, the employer contribution increases as well, and if the RB has to adjust Kiwisaver rates every month, it will add to the

compliance burden for employers. If you are self-employed, then you will have to contribute as well, removing people’s choice as to how they wish to spend their money. The other big factor is that the independence of the RB Governor is affected, as the policy gives the Government of the day a right of veto. This is a big issue for New Zealand as we rely upon foreign capital to fund our growth; this can dry up if rules change without notice. The policy is innovative and has some good points, but in my opinion it has fishhooks that could outweigh the benefits and would need tweaking before becoming good policy.

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All the data farmers need, in real-time New “farming within limits” policies being set by regional councils throughout the country are changing the way we farm. Solutions such as online farm information system Ag Hub are helping to make the transition a smooth one, as well as providing additional benefits for farmers. Ballance Agri-Nutrients general manager of ag information Graeme Martin says it doesn’t replace management decisions, but gives farmers realtime information to help them make the right decisions for both the environment and their business. With a history dating back more than 10 years, Ag Hub has evolved from a farm-mapping company (previously known as Farmworks), into a solutionsbased provider for the industry. It now has the backing to reach its full potential, with support from parent company, farm nutrient co-operative Ballance Agri-Nutrients. “Our approach is to create real value for farmers through the provision of complete farm nutrient-management products and services. “We believe this is the way forward to help our customers farm more sustainably, while at the same time increasing productivity and profitability,” says Mr Martin. Reduced risk and optimised production are key benefits of Ag Hub, says operations manager Max Young. “While for many customers the first purchase is still a farm map, there is now

GRAEME MARTIN Ballance Agri-Nutrients general manager of ag information

a significant range of impressive products heading out into the industry. “If a farmer wants to look at any information on the farm to help make a decision, then Ag Hub will immediately show a complete view of the property over four aspects — production, environment, fertiliser and nutrition (feed). “Through GPS and automatic telemetry, the system can measure and control water, irrigation and effluent;

SOLUTION FOCUS: Online farm information system, Ag Hub, helps farmers make the best possible decisions for both their business and the environment.

and measure things like soil moisture and weather conditions.” For example, the system can notify the user via text message or shut off effluent-spreading if it detects something out of the ordinary, such as a drop in pressure, or if the spreader is nearing a waterway or fence or stops moving, which could otherwise result in consent breaches. Nutrient-mapping capability

records the nutrient value of the effluent and where it has been placed, allowing fertiliser plans to be adapted accordingly. Once set up with a base package, farmers can then choose which modules they require. “This has the benefit of allowing users to become familiar with the technology one step at a time, before exploring additional functionality,” says Mr Young.

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Honda expands farming line-up This year Honda has an impressive range of new farm equipment with new ATV product, along with the all new Pioneer side-by-side, which is in hot demand. However, the two-wheel range has also been upgraded for the new farm season. The new XR150 adds a new dimension to Honda’s proven farm range. For those that know offroad motorcycles, Hondas XR range is legendary. The XR150 now features a larger, updated engine, with an offset crankshaft, roller rockers, a lighter piston and a redesigned oil cooling path to further increase reliability. The XR150 engine also features a new balancer shaft to reduce vibration for much smoother running, which is a real bonus when you spend hours in the saddle. Power has been increased and the engine drives through a slick shifting five-speed gearbox. The XR150 also has an exceptional 12-litre fuel tank, so you can travel long distances around the farm. Its electric start makes life easy in all conditions, and it has impressively low gearing so you can go ultra-slow for moving cattle. It is reliable, low maintenance and durable. As a bonus it is also one of the few road registrable farm

bikes. This year’s XR150 also has a more comfortable seat, new modern dash, new headlight and updated bodywork. Another bonus is the price with the XR150 coming in at the super low retail price of $3,999 (including GST). Also in the range is the CTX200, which now features revised graphics and a new optional LED spotlight to assist visibility at night. The CTX200 is a very economical, reliable and capable addition to the farming family. Its 8.5-litre tank with 1.8-litre reserve is designed for long-range riding, so you can ride all day and all the way to the back of the station. With front and rear carry-racks the CTX is the real workhorse of two-wheel farm bikes, and priced at just $5,999 (including GST). Both bikes will make a great addition to your farming line up. ■ Talk to your local Honda Dealer to arrange a test, or to view the outstanding new range of 2014 Honda Farm Bikes visit www.hondamotorbikes.co.nz

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WAIKATO ADVERTORIAL

Check your health and win Your health is your number one asset, but with busy lives, farms and businesses to manage, families to think of and friends to visit, men often forget to look after themselves. The Waikato/Bay of Plenty Cancer Society will be at Fieldays reminding men to think about their own health this year. Men visiting the Cancer Society’s Men’s Shed can test their health with a quick 13-question quiz to see if their health is up to scratch or if a visit to the doctor is on cards. They can then make a health pledge, committing to one thing they will do over the next 12 months to improve their health. Anyone who completes the Hardware Health Check and makes a health pledge will go in the draw to win some great prizes. ‘‘The health pledge can be anything from quitting smoking, to eating more vegetables, to using the stairs instead of the lift,’’ says Cancer Society spokesperson Rachael Mounsey. ‘‘The important thing is that men think about the steps they can take to improve their health.’’ Men still access health services less than women and when they do visit the doctor, they typically present late, denying themselves the chance of early detection and treatment. ‘‘Statistics for men are poor. “More men than women are

‘‘Statistics for men are poor. More men than women are diagnosed with cancer and more men die from it.’’

diagnosed with cancer and more men die from it,’’ says Rachael. ‘‘Getting a doctor’s check-up can make all the difference for men’s health. ‘‘The earlier you get diagnosed and treated, the better the chances are for a good outcome,’’ she says. ‘‘We hope our site will help people, in particular men, to become more aware of their health and the importance of talking to your doctor if concerns arise,’’ says Rachael. There are a number of lifestyle changes which research shows can help reduce your risk of cancer. Following these steps won't give you a guarantee that you won't develop some form of cancer in your lifetime, but it will help lower your risk.

Quit smoking, or don't start Smoking is the main cause of preventable death and disease in New Zealand. It kills 5000 people each year. It's never too late to: ■ Phone Quitline on 0800 778 778 for advice and support to help you quit smoking ■ Avoid other people's smoke ■ Have a smokefree home and car.

Be SunSmart

Skin cancer is the most common form of cancer in New Zealand but it is preventable. ■ Make sure you slip, slop, slap and wrap when out in the sun. ■ Try to avoid being in the sun between 10am and 4pm from September until the end of March. This is when the ultraviolet (UV) radiation levels are at their peak.

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Research shows that regular physical activity can reduce your risk of developing some of the most common cancer, while being overweight can increase your risk of developing cancer. ■ Aim for 30 minutes of exercise most days of the week. ■ Balance the amount you eat with the amount of energy you use.

Eat a healthy diet

One-third of all cancers may be caused by what we eat. Lower your risk by making healthy food choices. ■ Eat lots of fruit and vegetables, along with bread, cereals and grain products.

■ Reduce saturated fats from animal sources (meat and dairy).

Drink in moderation

Alcohol increases your risk of many cancers including bowel, mouth, throat, liver and breast cancer. There is no level of drinking that can be called safe for everyone but to reduce long-term health risks, it is suggested that: ■ Men have no more than three standard drinks a day and no more than 15 standard drinks in one week ■ Women have no more than two standard drinks a day and no more than 10 standard drinks in one week ■ Men and women have at least two alcohol-free days a week to help your body recover from the effects of alcohol.

Possible warning signs Unfortunately, while some cancers have early warning signs that are easy to identify, many do not. This means you need to be aware of any changes that are out of the ordinary for you and if you notice something unusual, see a health professional as soon as possible. Changes to look out for include: ■ Problems with your ‘water works' ■ Changes in moles or freckles ■ A lump or change in your breast, testicle or other body part ■ Unexpected weight loss ■ Changes in bowel habits. Any unusual or new symptom that continues for more than two weeks should be checked by a doctor. ■ You can find the Cancer Society’s Men’s Shed a site LS20.

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Now you can make 99.98% pure water from the air that you breathe.. • Daily output of 28- 5000 litres of 99.98% pure water. • Available in 9 different sizes & a variety of colours. • Under Sink/Plumb in units also available. • Save time and money and bottle your own 99.98% pure water. pure drinkable water is becoming more difﬁcult to access. • Totally transportable Units • Virtually maintenance free • Units run on mains electricity, solar power or generators • Lease or Buy options • Finance available (subject to lending criteria) • 2 year warranty

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DID YOU RUN OUT OF WATER LAST SUMMER?...

• For emergency water for buildings, crops, horticulture & drought stricken areas and more the possibilities are endless. Everyone has different needs at different times.

A new mobile Atmospheric Water Generator (AWG) offers you a solution to your water problems

• The AWG also acts as a dehumidiﬁer for houses and sheds, making it so much more pleasant to work in… no more humidity.

Pete (North Island) and Neil (South Island) of Aquaire can now provide a water solution service to both the rural and urban community as well as the industrial and commercial sector. These Atmospheric Water Generators(AWGs)-AWGsare machines that condense moisture in the air (humidity in the air) and turn into precious water drops. Then through a process of collection, ﬁltration, deodorisation and sterilisation, puriﬁes the water to provide a 99.98% clean product. This process produces possibly the purest water you have ever tasted…

LOOK AT SOME OF THE BENEFITS! • With the production of 99.98% pure water from the atmosphere it is in essence free useable energy from a completely renewable source. • No chemical contaminants - Pesticides, pharmaceutical drug residue, industrial or human waste. This is especially great for those who embrace “ organic” or “pure” products or simply wish to have chemical free water . • The AWG produces water that is amazingly refreshing due to the high quality of the puriﬁed water. (99.8%) the taste is amazing. • You can bottle your own drinking water, saving you money and time. No more trips to the supermarket to get your bottled water. We can even provide your own ﬁllable Aquaire bottles.

• These AWG machines are designed to be mobile and are easily transported from the cowshed to the farmhouse depending on your needs. (Ease of mobility is dependent on size)

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• All AWGs come with a 2 year Guarantee.

• Finance available to those who meet the lending criteria. • By appt only you can view a running unit in the Waikato and Nelson. • Stocks are limited, to avoid disappointment pick up the phone now.

The small units can easily ﬁt into kitchens, laundries, or the garage..

• These great units can be run on mains electricity, generators, and solar power, your choice. • Research shows that more and more households continue to prefer to use bottled water free of contaminants. Now you can provide your own bottled water (99.8% pure) with one of these amazing machines. This convenient options also saves you money.

WHAT YOU NEED TO KNOW

The largest units 560 x 210 x 190cm are best suited to a commercial or farm situation.

• Predictions are that our weather patterns will continue to be drier over summer so take time to consider the beneﬁts of having your own portable Atmospheric Water Generator today. • We offer a selection of 9 different sizes to suit your needs. Our AWGs produce 28ltrs, 60ltrs, 100ltrs, 200ltrs, 500ltrs, 1,000ltrs, 1,500ltrs, 3,000ltrs, 5,000ltrs litres of 99.98% of pure water on a daily basis. Suitable for the smaller home, the farm through to commercial applications

Aquaire offer a Field Day Free offer including 12 months interest free for all AWG purchases…call them now for details (subject to lending conditions) Size of units.. (approx) from 44 x 43.5 x 116.5cm (Net weight 50kg) to 560 x 210 x 190cm (Net weight 4500 kg) For more information you can visit their website www.aquaire.co.nz or call Pete (Nth Island) on 027 277 1774 or Neil (South Island) 0275 295 155 to discuss your water needs today.

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National Farming Review

June 2014 www.fedfarm.org.nz

Ph 0800 327 646

WEATHER

An approaching El Nino? By Dan Corbett Metservice ambassador Over the last year you probably have not heard the words El Nino or La Nina used very much, mainly because the state of the ENSO (El Nino â&#x20AC;&#x201D; Southern Oscillation) has remained neutral (midway between El Nino and La Nina). That could change later this year as the huge weather engine that is the Pacific Ocean begins to show signs of the first El Nino in several years. So what does this mean for us and what actually is an El Nino? It all boils down to the distribution of warm and cold water across the Pacific Ocean and this has an effect on the way that weather systems develop and move across the Pacific including New Zealand. A typical El Nino pattern would have warmer than usual water across central and eastern parts of the equatorial Pacific. The chart at right shows this distribution of warm water (seasurface temperature in degrees C). During El Nino, the trade winds weaken, leading to a rise in sea surface temperature in the eastern equatorial Pacific and a reduction of upwelling off South America. Heavy rainfall and flooding occur in Peru, with drought over Indonesia and Australia. The supplies of nutrientrich water off the South American coast are cut off due to the reduced upwelling, adversely affecting fisheries in that region. In the tropical South Pacific the pattern of cyclone occurrence shifts eastward, so there are more cyclones than normal in areas such as the Cook Islands and French Polynesia. Even closer to home the anticyclonic ridge axis would also not extend as far south in an El Nino pattern. In a typical summer the anticyclonic ridge axis would be draped across New Zealand, bringing us settled spells interspersed with troughs and lows that would bring unsettled weather. A typical flow pattern in an El Nino would feature an anticyclone just to the northwest of New Zealand and an area of low pressure to the southeast. This in turn would bring enhanced westerlies across New Zealand. The enhanced westerlies bring normal to above normal rainfall to west-

ern areas and below normal rainfall to eastern areas. Troughs would frequently cross the country in the westerlies, bringing changeable and unsettled weather. In winter, the winds tend to be more from the south, bringing colder conditions to both the land and the surrounding ocean. In spring and autumn southwesterlies tend to be stronger or more frequent, providing a mix of the summer and winter effects. It is also worth noting that not all El Ninos are the same and not all bring the typical wet in the west and dry in the east scenario. The weather over the next few weeks will take on a typical late autumn/early winter theme with some subtle variations at times but will also hold a few hints of what type and strength of El Nino may unfold as the rest of the season progresses. Other factors such as SAM (Southern Annular Mode), local sea surface temperature distribution as well as atmospheric blocking can all play a part in the make-up of our weather over the season.

What is to come?

Settled periods are expected, with clear sunny days and frosty or foggy mornings associated with passing anticyclones. Fronts and troughs rolling in from the Tasman Sea may be followed by episodes of cool southwest winds lasting several days across the whole country. Occasionally a low pressure centre may move onto the country from the north, preceded by an easterly flow with some heavy rain for northeastern areas. Keep an eye out for any blocking pattern over the next few weeks. In a typical period of transition into El Nino-like weather patterns, there should be enhanced westerly winds â&#x20AC;&#x201D; but there can be breaks in this periodically especially when a block sets up. This in turn can cause the weather to get stuck and remain in a particular place for several days or more. The type of weather a place receives depends on where in the block they get stuck i.e. wet or dry.

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GRAIN & SEED

June 2014 National Farming Review

INDUSTRY GROUPS

Grain squeeze hikes prices By Nick Hanson Grain and Seed policy advisor New Zealand’s feed wheat and barley stocks are at their lowest level since 2011, according to a recent survey of cropping farmers, issued by the Arable Industry Marketing Initiative (AIMI). What has impacted overall stock most significantly is the lack of carry-over from the 2013 harvest. Virtually no harvest feed grain remained unsold from April 2013. The AIMI survey report says that “in a nutshell, there is little free grain in the market as at April 1, 2014 as compared to two previous seasons. The unsold quantity of feed wheat was about half of the unsold tonnages of a year ago, and the unsold tonnage of feed barley was about one third.” The report also notes that estimated harvest tonnages for both wheat and barley were down on the 2013 harvest due to a slight reduction in overall area harvested (1 per cent) and a significantly reduced yield for wheat down 0.5 tonne per hectare, after a very strong year in yield terms in 2013. NZX’s Profarmer has reported that the survey results confirm a market expectation and that prices had climbed to reflect the tightness of available

stocks. Current prices for both feed barley and feed wheat are the highest May prices that markets have seen since 2008. Looking ahead to next year, terrible weather during April has restricted planting, with many growers unable to get fields ready in time to plant winter wheat. The AIMI report, which also surveys growers on planting intentions, indicates that the growers intended to plant approximately 5 per cent less area of feed wheat and 14 per cent less area of feed barley, although it notes that recent rains will likely reduce the area of wheat planted further. Federated Farmers Grain and Seed Vice Chair, David Clark, said that he could not get machinery onto sodden paddocks and there will be many growers who will be forced to consider spring-planted wheat. Spring-sown wheat cultivars are available but they are generally lower yielding, with less growing time available. SUPPLY SHORTAGE: Current prices for both feed barley and feed wheat are the highest May prices that markets have seen since 2008.

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National Farming Review

June 2014 www.fedfarm.org.nz

INDUSTRY GROUPS

Ph 0800 327 646

GOATS, MEAT & FIBRE

Goats conference well received By David Burt A healthy turnout attended a very successful goats conference, held in Queenstown last month. The conference brought together farmers and interested others — such as veterinarians — from the meat and fibre goat sectors; Mohair New Zealand (Inc), the New Zealand Boer Goat Breeders Association (Inc) and Meat Goat New Zealand. In addition, the event was the inaugural conference of NZGoats, an organisation established by Mohair NZ and Meat Goat New Zealand and operating under the Federated Farmers umbrella to add value by fostering the development of a reinvigorated and unified approach to sector issues. The first day a large group travelled to Roxburgh to visit an Angora goat farm, where they heard about the expertise gained by Bill and Irene Campbell over many years of commercial mohair goat farming and the day concluded with an informal dinner at the venue — Rydges Lakeside Resort Hotel. The following day contributing organisations held their general meetings, with Janet Brierley awarded the Council Cup for services to the mohair industry. There were almost 30 entries in the three fleece competitions, won by Ray and Donece McEwan (the Jim Wickens Memorial Shield and the 3kg Kids Fleece) and Gary and Ann Boyle (the Weather Fleece competition). On the Saturday afternoon, the group travelled — courtesy of the Shotover Four Wheel Drive Club — to the extensive, high country Boer goat farm of Dave Aitken in the Gibbston Valley. While the weather conditions unfortunately limited the extent of this trip — a circumstance alleviated somewhat by a visit to a local establishment that served a range of cold beverages — the visit was well worthwhile as it enabled Angora goat farmers to see the challenges that a high country operation presents. The day concluded with the conference dinner at the Skyline Gondola restaurant. The Sunday saw what was the highlight of the conference for many; the inaugural NZGoats conference.

MAKING A POINT: Mohair New Zealand (Inc) chair John Woodward in an expressive stance during the conference.

OUT AND ABOUT: The inaugural NZGoats conference courted plenty of interest in Queenstown last month with a field trip to an Boer goat farm one of the highlights.

There were high-quality presentations from five guest speakers. The first two speakers provided highly relevant and very practical information to goat farmers. Richard Shaw from AgResearch spoke on his research into gastrointestinal immunity and parasites in goats and the extension of his work using CARLA testing to the goats sector. Ginny Dodunski from Totally Vets Ltd spoke on the Wormwise for Goats programme and some practical ways in which goat farmers can best manage this sometimes challenging problem. The Federation wishes to thank Beef + Lamb New Zealand for enabling Richard and Ginny to attend the conference. The third speaker was Anna Campbell from AbacusBio Ltd, who spoke on the importance working with partners in the value chain to ensure that customers are confident about the integrity of the food that we produce — and also the importance of knowing what product attributes cus-

tomers value. Fiona Carruthers from Beef + Lamb New Zealand spoke on the keys to effective communication with customers about the nutritional attributes of meat, illustrating her points by reference to a number of actual promotions. Richard Thorp, the chief executive of Lean Meats Ltd, provided a refreshingly candid view of the life of a goat meat processor and the challenges he faces in getting product in front of customers. A particularly valuable aspect of his presentation was his thoughts on how goat producers and processors can work better together to add value to the sector. The conference finished with a facilitated discussion session in which the group considered the best way forward over the coming year. A comprehensive debate on issues such as the challenges that goat farmers face and what the future of the sector might look like instigated

AT THE MIKE: New Zealand Goats chairperson, Dawn Sangster, takes the floor at the inaugural NZGoats conference at Queenstown last month.

proposals for the NZGoats executive group to consider and act on over the coming year. ■ For more information about NZGoats contact the NZGoats chairperson Dawn Sangster, email d.sangster@xtra.co.nz or phone 027 444 7731, or David Burt email dburt@fedfarm.org.nz

Know the finer points of your NAIT By Sarah Crofoot Since NAIT (National Animal Identification and Tracing) became mandatory for cattle on July 1, 2012 and deer on March 1, 2013 there have been a few teething issues but generally the new system has been successfully adopted. To help clarify the essential requirements for anyone who is unsure, here is a brief summary. All cattle and deer must be tagged within six months of birth or before being moved off farm. When tagging animals it is important that the tag be placed in the centre of the ear between the two veins. Tags should not be placed on the tip or edge of the ear. Correct placement significantly improves tag retention rates. The use of HDX tags is recommended, particularly if you are using tags for longterm management purposes as the FDX tags are more prone to environmental interference. Once you have tagged your animals

you want to be able to read them. It is recommended that all farmers have some description of RFID tag reader; there is a variety available on the market. There may also be opportunities available to hire an RFID reader or to use a NAIT-accredited information provider to read and register your tags. If you are having trouble reading tags, first check there is not another tag in the area which may be causing interference. Problems can occur if a tag has been dropped at the bottom of the race or by having a bucket of tags nearby. Once you have tagged your animals they must be registered with NAIT within seven days. This links the individual animal and their tag in the system to enable their lifetime traceability records. It also means NAIT knows the tags have gone into animals and provides a record should there be issues in the future. Animals can be registered by logging into the system at

animaltrace.nait.co.nz There are five different ways you can register your animals: ■ Selecting the animals from a list of tags you have purchased ■ Manually type in tag numbers ■ Upload a tag number file ■ Upload a CSV file — this allows tag numbers and animal details to be uploaded ■ Using a paper form (processing fee applies). For the traceability system to be effective it is essential that all movements be recorded — even private sales, grazing, mating movements, gypsy day and transfers between properties under the same ownership but greater than 20km apart. All stock movements must be registered within 48 hours of the movement occurring. For farm-to-farm movements the movement must be recorded and acknowledged by both the sending and receiving parties. When sending animals, log in to the

NAIT system and register the movement of the specified animals. The receiving party will then receive a notification of the movement which they accept (if it is correct). If you are receiving stock and have not received a notification you can register a receiving movement, which is then sent to the sending party to accept. Currently you are not required to register movements to meat processors. However, as a precautionary measure you are able to register this movement. This can then provide confirmation that all animals had functioning tags upon leaving the property should issues arise later on. NAIT has been developed to help safeguard our livestock industry; protect farmers incomes; enhance our reputation for producing safe, high-quality products; enable a fast response to animal disease outbreaks and maintain access to global markets. Be sure to play your part and register all animals and movements. ■ If you have any difficulties contact the NAIT helpline on 0800 624 843.

Ph 0800 327 646 www.fedfarm.org.nz

June 2014 National Farming Review

SCHOOL FEATURE

An edge for life beyond school Do you want to finish your senior schooling with an experience that will set you up for life? The Cromwell College Apartments Outdoor Pursuits Academy gives you that edge. Our popular programme builds skills, resilience and self-confidence that enables students to thrive beyond school. The programme has been running since 1995 and makes the most of our well-resourced and highly regarded school and the natural wonderland that is Central Otago. Students live in the Cromwell College Apartments and develop life skills through semi-independent living under the supervision of experienced and caring managers. ‘‘You will become as comfortable and successful in the outdoors, and with your NCEA studies, as you will be cooking a lovely meal for five hungry flatmates,’’ says Apartments Manager Jim Hughes. In the Outdoor Pursuits Academy, held each Sunday, students take on adventure racing, rock climbing, mountain biking, skiing/snowboarding and tramping. Expeditions are built into the programme over long weekends and

this year’s group has already enjoyed tramping on Stewart Island and the Routeburn Track as well as adventurebased activities including ropes courses, caving and surf kayaking. Many of this year’s Academy students have taken up the opportunities to build their outdoor leadership skills and earn NCEA credits while working towards an outdoor leadership qualification. Principal Mason Stretch believes the opportunities available for Apartment students are tremendous. ‘‘Not only do they have their Outdoor Pursuits Academy but also quality schooling with a full range of NCEA and vocational subjects and a wide variety of sporting and cultural opportunities,’’ he said. The programme can take up to 20 students and places are still available for next year. Mr Stretch puts the key to Cromwell College’s ongoing success down to ‘‘passionate people wanting the best for students, coupled with caring, supportive relationships’’. ‘‘We know that a year here in Cromwell makes a positive difference and the skills that students come away with will set them up for life,’’ he said.

Boarding with a big difference Are you looking something different in Year 12/13 next year?

Cromwell College, set in the heart of Central Otago, offers an educational opportunity that will ensure an memorable end to your secondary schooling.

WALKING TALL: With its blend of study and adventure, the Cromwell College Apartments Outdoor Pursuits Academy builds skills, resilience and self-confidence.

Gain your NCEA while experiencing an exciting outdoor programme and developing valuable life skills. Our Outdoor Pursuits Academy covers tramping, mountain biking, rock climbing, adventure racing and of course snowboarding and skiing all with skilled qualiﬁed instructors. Students live in the Cromwell College Apartments and are part of our Life Skills Programme. This offers independent living for up to twenty Year 12 and 13 students and provides an ideal stepping stone to further study or employment. Make 2015 a school year to remember! Application packs are available through our website www.cromwell.school.nz or for more information contact The Principal 03 445 1121.

National Farming Review

June 2014 www.fedfarm.org.nz

Ph 0800 327 646

SCHOOL FEATURE

King’s aiming to offer the best When Graham Bruce founded King's College in 1896, his stated aim was that the school would provide ‘the best allround education it is possible to obtain’. “More than 100 years on at the school, this statement both guides and underpins all that we do,” says headmaster Bradley Fenner. King’s College welcomes both boarding and day students — boys in years 9-13 and girls in years 12-13. The school offers academic pathways through both Cambridge and NCEA. In 2013 the University Entrance results showed a 94 per cent pass rate, including a 100 pass rate for girls for the fourth year. At King’s, pastoral care is realised through the King’s College House system. There are five day houses and six boarding houses, each with its own heritage and identity. Mr Fenner says this underpins a student’s experience of life at the college and provides a sense of ‘family’ in the overall school community. King’s College chaplain Reverend Wilder says ‘‘We celebrate our rich heritage daily, whilst welcoming and valuing all who might wish to join our community.’’ Last year the 242 new students who entered King’s College came from 88 different schools. All King’s students are involved in extra-curricular activity. Mr Fenner says ‘‘King's College aims give every student the best education on offer — academically and in every dimension of life.’’ It is this philosophy that sees the values of King’s endure whilst the school’s focus is at the forefront of 21st century education.

BROAD EXPERIENCE: King's College aims give every student the best education on offer, academically and in every dimension of life.

CALL US TODAY TO ARRANGE YOUR TOUR OF THE CAMPUS

0508 46 25 46

WWW.KINGSCOLLEGE.SCHOOL.NZ

WELCOMING BOARDING AND DAY STUDENTS Boys Years 9-13 | Girls Years 12-13

Ph 0800 327 646 www.fedfarm.org.nz

June 2014 National Farming Review

SCHOOL FEATURE

School hostel has family feel Nelson College for Girls offers highquality, affordable education for young women in a very supportive environment. Our boarding hostel, Clarice Johnstone House, is a very important part of this. It offers excellent accommodation for up to 150 students, from New Zealand and overseas. This accommodation provides quality for our young women but is priced competitively. For many of our boarders, there are significant opportunities for them to be involved in sporting and cultural activities that would not otherwise be available to them. Our boarding students are part of a very large family, pro-actively supported by our senior students through a wide variety of student-led activities. Nelson College for Girls has a strong house system and all of our boarders are members of the same house, Whangamoa. They are passionate participants in all house activities in the school and revel in the ‘purple’ house succeeding well. On athletics and swimming sports days, Whangamoa House is a unified mass of purple, with strong support for all participants. For the past two years, Whangamoa has won the Swimming Sports Champion House Cup. Our boarders are equally committed to the House Drama and Choir competitions and enjoy considerable success in these areas also. Our Year 9-12 students live in Clarice Johnstone House, where they enjoy considerable facilities for study and recreation. Our Year 13 students have the privilege of living in the new Levels building. This very modern accommodation, opened in 2011, provides them with a more independent living experience, while still ensuring our most senior students play a pivotal role in creating the family atmosphere of the boarding community. The students have individual rooms, with shared lounge and kitchen facilities. Our boarders enjoy academic success, make lifelong friendships and enjoy strong connections within the school and its community. Many of our boarders join in activities such as sporting clubs, choirs, jazz bands and some take part in drama productions in the strong local theatre companies. These are wonderful opportunities for them. Nelson College

AFFORDABLE LEARNING: Nelson College for Girls.

for Girls has an outstanding reputation for academic excellence. This is demonstrated strongly by our NCEA and Scholarship results for 2013. An example in NCEA is at Level 1, where over 30 per cent of our Year 11 students gained a Level 1 Certificate endorsed with Excellence. At the end of 2013 in the Scholarship examinations, a total of 25 Nelson College for Girls students were awarded Scholarships. One of these students gained three Scholarship awards, thereby gaining a New Zealand Scholarship. Our boarders are well represented in these statistics. Nelson College for Girls provides its boarders with magnificent opportunities for a very affordable price. We have strong values as a college. These values are summarised by the word PRIDE — personal excellence, respect, integrity, diversity and empathy. Our boarders live by these values in the boarding house as well as at school.

Nelson College for Girls

Nelson College for Girls, PO Box 842, Nelson, 7040 03 548 3104

5H/41üþFþëý• 5465 ýD5þþ1

www.ncg.school.nz

boarding@ncg.schoolnz

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National Farming Review

June 2014 www.fedfarm.org.nz

INDUSTRY GROUPS

Ph 0800 327 646

DAIRY

Dairy industry celebrates in style By Ann Thompson And the winners are . . . well actually, everyone who enters the New Zealand Dairy Industry Awards are winners, including the convenors and sponsors. These awards — the Sharemilker/ Equity Farmer of the Year, the Farm Manager of the Year and Dairy Trainee of the Year — are huge for the industry. They are even huge for agriculture but don’t get as much air time as they should, at least not now. Back in the day, even I as a non-farming youngster had heard about these SMOTY competitions, as they were then known. Today, I guess very few townies would know of their existence, let alone their significance. By my reckoning there must be about 7000 people who have entered the competitions over the years. That’s a lot of onfarm improvement! As each is judged on their farm businesses, that makes 7000 farms that have had their environmental footprint, financial planning, ability to manage staff, health and safety policies, dairy hygiene, pasture management and animal husbandry checked. The competitors are also judged on their leadership skill, which means there are around 7000 farming leaders out there in your community, helping run schools, farm discussion groups, water zone committees, standing in front of regional councils at annual plan hearings and so forth. It also means that 7000 have been able to promote themselves for future positions on farms. After the competitions, these competitors find their phones running hot with offers of employment or farms to share milk on, and bankers fall over themselves wanting to lend them money. These farmers have proven themselves to be a good risk in a risky business. The competitions also involve farm owners who are thrilled they convinced their sharemilkers, farm managers, equity partners and dairy trainees to enter. Their farms and farm businesses have benefited from the judging process as well. They find they, too, are in demand, with offers to work on the farm, meaning they can have the pick of the best. After the competitions are over, these people do not sit down and let all go to rack and ruin. They are likely to be the ones on the leading edge of the bell curve of nutrient management, riparian fencing and planting, while also looking after

KICKING OFF: The talented Natalie Te Paa gets the 2014 NZ Dairy Industry Awards off to a great start. PHOTO: NZDIA

TRIUMPHANT MOMENT: Confetti showers Farm Manager of the Year, Nick Bertram (left), Dairy Trainee of the Year, Ruth Hone, and Sharemilker/Equity Farmer of the Year, Charlie and Jody McCaig (centre) while Mike McRoberts of 3News looks on. PHOTO: NZDIA

their employees well. Many have come through the ranks of Federated Farmers, representing their province and their industry. While the lead-up to the awards’ final dinner in May was a week full of adrenaline and the excitement of being with a group of winners just like them, many still remembered the soul searching that went on in November last year when the competition opened. The hard slog leading up to first the regional judging and then the national judging wasn’t forgotten either. However, it would be hard to find one person who said that all the work was not worth it in the end. They have all said that their businesses have improved and acknowledged that this would not have happened without the push to succeed in the competitions. These competitions are hard work, there’s no denying it. While it is free to enter, there is a huge cost in terms of time and many entrants get cold feet once they see what’s entailed. Luckily there is help at hand from previous entrants and consultants. Most of the competitors are young and have young families and pregnancies to deal with during the six months they are under the microscope.

They sacrifice family life and that precious summer time as they sit down and get their farm health and safety plans up to date, refine business plans, and get their nutrient management plans working as well as looking after their cows. Having family and friends around to take care of the children in the busy lead-up to judging is duly recognised. Often they also have to deal with the stress of inclement weather, be it drought or summer cyclones. It’s not easy. The regional convenors have it tough too. They run the competitions across the country, convince people to enter and set up the local awards dinners and field days. This job is not for the faint-hearted and is generally done by previous winners, with help from the central organisation. Many see the workload ahead of them as the downside of winning in previous years. There are new skills to learn and another set of timetables to keep to. However, attitude is everything and the thrill of seeing all their work on show at the regional dinners is enough for most people to say: “it’s worth it all” and to understand they have learnt the

art of event management. The sponsors and industry partners, of which Federated Farmers is just one of the family of 12 have it slightly easier. Apart from providing the prize pool of $170,000 nationally with regional winners’ pool on average of $66,000, our job is to get the ‘goodies’ for the competitors, banners, and promotional DVDs to the right place, in time. The fact that we have Chris Keeping, the convenor of all convenors, making sure we do everything means this all happens. It culminates in a last week of hard work and celebration tinged with the sadness of leaving new friends and then the whole engine starts up again, getting the next year’s competition under way. These competitions have been going for 25 years now. The Sharemilker of the Year competition started off in Taranaki in the 1970s, becoming a national competition in 1990 and the other categories joined up by 2008. When the call comes in November to enter the competitions, think about the reward as well as the hard work. All the people who have entered over the years will tell you it is all worth it. For those interested in this year’s winners (who isn’t!), they are: ■ Sharemilker/Equity Partner of the Year: Charlie & Jody McCaig ■ New Zealand Farm Manager of the Year: Nick Bertram ■ New Zealand Dairy Trainee of the Year: Ruth Hone ■ Federated Farmers Leadership Award: Donald & Kirsten Watson ■ For more results visit www.dairyindustryawards.co.nz

Modern advocacy tools to manage global risks By Dr Lisa Harper Over the last eight months, I’ve combined working for Federated Farmers with finishing a Nuffield Scholarship. After literally hundreds of meetings in seven countries, one thing is clear. Farmers everywhere grapple with similar problems. Whether you’re in Mexico or Europe, ask farmers what worries them and they mention water management, rural infrastructure or global terms of trade. Conversation also centred on the role of advocacy organisations in maintaining our ‘social licence’ to farm. This term describes the public trust that allows any group to operate without excessive regulation. When

that breaks down, you get increasing social control, which is costly and drives people to litigation. The United States have some prime examples of this. One chicken farmer faced fines of US$37,000 ($43,500) a day for not getting a discharge permit to cover rain washing away stray feathers etc from outside their barns. The Farm Bureau (an American version of Federated Farmers) stepped in and this obviously extreme situation ended. In an ideal world, a common understanding between farmers, the wider community and regulators stops it getting that bad. This is where the idea of maintaining our social licence comes in. As well as getting involved when things go pear-shaped, an increasingly important part of an agricultural advocate’s role is to build

links with the rest of society. This includes farming’s greatest critics. One of the most successful examples I saw was someone tasked with explaining Australia’s live export trade to animal activists. She got past emotion and rhetoric to concentrate on what mattered to both parties — animal welfare. The following is her recipe for building productive relationships with your critics. ■ Be principle-driven; know what is important to you and why. ■ Listen, don’t judge. ■ Ask questions and invite dialogue to identify what they are worried about. ■ Identify common values to build trust. ■ Control your emotions, they cannot fight someone who is not retaliating. ■ Define conversation outcomes.

Either progress the discussion or walk away. This is familiar territory to our policy team. Most of what we do is behind the scenes, providing feedback to regulators and building relationships with stakeholders. It is more effective and less expensive to have a yarn with someone and come to an agreement than it is to end up in court, where the decision is ultimately out of both parties’ hands. If people refuse to engage or insist on playing dirty, you just move on. Having seen how badly regulators can get it wrong overseas, I am grateful for the common sense of most New Zealanders. And I have a new appreciation for the importance of organisations like Federated Farmers in managing one of the biggest risks to farming — misguided and excessive red tape.

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INSIDER

Parliament

LIFE MEMBERSHIP

Bills in the House

As at May 23 several Bills relevant to farming were before Parliament, at various stages: ■ Overseas Investment (Owning Our Own Rural Land) Amendment Bill, first reading. ■ Animal Welfare Amendment Bill, Primary Production Committee ■ Building (Earthquake Prone Buildings) Amendment Bill, Local Government & Environment Committee ■ Environmental Reporting Bill, Local Government & Environment Committee ■ Health & Safety Reform Bill, Transport & Industrial Relations Committee ■ Land Transport Amendment Bill, Transport & Industrial Relations Committee ■ Regulatory Standards Bill, Commerce Committee ■ Local Government Act Amendment Bill, second reading ■ Food Bill, third reading

Other reviews and consultations Federated Farmers is also engaging with government departments on various reviews and consultations. For example, here are just a few of the current consultations we’re engaged in: ■ Levy Consultation 2015/16, ACC ■ Developing Regulations to Support the New Health and Safety at Work Act, Ministry of Business, Innovation and Employment. ■ Amendment to the Minimum Wage Order, Ministry of Business, Innovation and Employment. ■ Review of the Funding Assistance Rate, New Zealand Transport Agency ■ Review of Essential Skills in Demand List, Immigration NZ ■ Priority Waste Streams for Product Stewardship Intervention, Ministry for the Environment.

News in brief

■ ACC Levies reduction: ACC is consulting the public on its 2015/16 levies. Strong financial performance means it can propose cuts in levies for the Work Account (down 22 per cent), the Motor

ENVIRONMENTALIST AND FARMER: Gordon Stephenson CNZM, was recently made a life member of Federated Farmers. This joins his life membership of Forest & Bird, honorary membership of Rotary, honorary kaumatua at Pikitu Marae, Waotu and an honorary Doctorate from the University of Waikato. In 1992, Mr Stephenson and his wife, Celia, were jointly awarded the Loder Cup; New Zealand's most prestigious conservation award. Mr Stephenson is a truly great New Zealand farmer, establishing both the QEII National Trust and the NZ Farm Environment Awards. Pictured (from left) are national vice-president Dr Rolleston, Gordon Stephenson, Celia Stephenson and Waikato vice-president, John Hodge.

Vehicle Account (down 40 per cent) and the Earner Account (down 5 per cent). The Government has the final say on ACC levies. ■ Local Government Bill progresses: The Local Government Act Amendment Bill is going through its final stages after being reported back by the Local Government & Environment Select Committee. The Bill makes changes to planning and decision-making processes and to the rules for charging development contributions. It should be passed by the time this edition goes to print. ■ RMA reforms stall: The Prime Minister has announced that RMA reforms, including changes to sections 6 and 7 which would have acknowledged property rights, won’t proceed prior to the election due to opposition from the Government’s support parties. ■ Beef + Lamb agreement: To enhance effective advocacy for the Meat and Fibre sector, Federated Farmers has signed off on an agreement to work more

closely with Beef + Lamb NZ. The overall goal being to improve environmental decision-making outcomes for farmers. ■ Game Animal Council established: The first meeting of the Game Animal Council took place in late May. Federated Farmers High Country has expressed concern at the lack of representation for commercial meat hunting, deer farming, game estates and safari park operations, meat processing and exporting, private landowning and general farming and Maori hunting interests. The council will be responsible for managing the hunting of deer, chamois, tahr and wild pigs. ■ Rule change for ETS forestry: The Climate Change Emission Unit Restriction Amendment Act 2014 was passed along with other budget measures. The amendment now requires that forest owners surrender New Zealand Units to cover their obligations when deregistering a post-1989 forest from the ETS. Previously, cheaper overseas-sourced units could be used to cover this obligation at a lower cost than is now the case.

OFFAL PIT Copyright?

The other day I went to Feds’ YouTube channel to watch a programme Seven Sharp did on Filipino workers. I wanted to check something but I encountered a dead site with a stark warning that Mediaworks had shut it down for ‘copyright violation’. Mediaworks are the people behind 3News, Campbell Live and even RadioLive. As this sounded serious I did some checking and, sure as eggs, someone at Mediaworks is upset that Feds has copied interviews involving Feds onto Feds’ own YouTube channel. So let me get this straight. If TV3 interviews you as a farmer, something that can cut a big hole in your day and you then copy that interview onto your Facebook or personal YouTube and Mediworks finds out, they will likely ‘terminate’ your account. Does this sound slightly heavyhanded? Apparently Feds had no ‘or else’ email or letter from Mediaworks. I knew Mediaworks had financial problems but you cannot tell me someone killing YouTube videos is paying for itself as compared with the bad PR. If they think they’re preserving online ad revenue, they’re not. Once news has been and gone you’d be lucky to find it by searching either of the news channels online. Think trying to find the haystack the needle is in, while Feds had done a great job pulling together news clips that linked back to 3News, including even the reporter’s name. That is now ‘terminated’. Unbelievably, this seems to be the law. So despite the fact a news interview may involve you, you have no legal right to use the clip, but if there’s no talent, then there is no news — Catch 22. I guess if that’s how they want to roll, farmers could start demanding an appearance fee — fair recompense for rearranging our day to fit into their filming schedule. After all they’re in business to make money and guess what, so are we. ■ Offal Pit is a contributed column and does not reflect the views or policies of Federated Farmers.

FEDS PEOPLE

CHRIS LEWIS

New presidents

■ Chris Lewis (Waikato) Chris farms 1100 cows at Pukeatua with his wife Caroline and two children. Chris has farmed for 22 years and has been provincial Vice-Dairy Chair for five years and Dairy Chair for the past three years. ■ James Stewart (ManawatuRangitikei) James is a ‘city farmer’ with his 600ha property running a predominantly

JAMES STEWART

GREG HARRIS

Friesian herd. Split between Palmerston North City and Manawatu District, the family farm has a Qualmark five star rated lodge, day spa and even a resident brewer. He is married to Debbie and they have three children. ■ Greg Harris (Marlborough) Greg farms in Awatere Valley on a diverse property. As well as running Angus beef cattle and Corriedale sheep, Chris is also involved in the viticulture industry. Prior to being elected President he

MARTIN O’CONNOR

was the provincial Meat & Fibre chair. ■ Martin O’Connor (Nelson) Martin is a dairy farmer, who farms at Glenrae near Tapawera with his wife Vicki. Martin has worked at all levels in the dairy industry, working through from Herd Manager to Lower Order, then 50/50 before moving to farm ownership. ■ Kristy McGregor Manawatu/ Rangitikei, Tararua and Wairarapa field officer Kristy is Federated Farmers’ newest

KRISTY McGREGOR

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