National Farming Review Oct 2015 by NZME.

OCTOBER 2015

Foreign ownership: Feds welcome investment but advise caution. p16

NATIONAL POLICY Rural broadband Where’s the catch?

Value spread

FEDS TAKE AG SCIENCE CONCERNS TO BEEHIVE

Why irrigation is important to the whole community, not just farmers.

Preparation key

Feds and MPI reviewing adverse event response. p9

REGIONAL POLICY Tipping point Southland farmers facing measures.

Goat choice A viable business in challenging times P22

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Federated Farmers will use an upcoming meeting with the Prime Minister to voice concerns about recent job cuts at AgResearch and the ongoing erosion of New Zealand’s agricultural science capability. — p3

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PERSPECTIVE

Predicting the future

INSIDE

Feature Safer farms

By Dr William Rolleston Federated Farmers president

. . 10-11

National Policy

3-9

Regional Policy

. . 12-13

Counterpoint . .

Opinion . .

Economy

Health & Safety

Industry groups

20, 22, 26

Regulars: Perspective

Weather . .

Insider

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

Science is about predicting the future. Not the “who will I marry” future but, given a certain set of circumstances and conditions, science can predict particular outcomes within a degree of certainty. So you can work out using Newton’s laws of motion if that black ball will go into the corner pocket to win you the game. As the variables increase the task of prediction becomes increasingly hard. Farmers rely on science every day, none more so than when they listen to the weather forecast. While weather forecasting is complex we have become better at it, enabling farmers to make decisions much earlier than they would have been able to make in the past. Understanding the southern oscillation — the warming and cooling of the southern ocean producing the El Nino and La Nina effects — gives farmers an early heads up that a drought is highly likely. This is little comfort for the North Canterbury farmers I visited last month who have already endured one year of extreme dry — despite the constant

predictions they would get rain! Not only can farmers make earlier decisions but organisations such as Federated Farmers get an early heads up that we will also need to focus our resources on yet another adverse event. Communication is key in any adverse event and Federated Farmers is well served with a network of contacts right around the country and a ready workforce with a can-do attitude which was expressed so well in the Farmy Army response to the Christchurch earthquakes. As we face more adverse events it is vital we strengthen this network and that it is backed up by good communication infrastructure such as broadband and mobile phone coverage as well as a robust road network. We are better at predicting the future but we don’t always get it right or see it coming. Farming families have

Communication is key in an adverse event and Federated Farmers is well served with contacts around the country and a ready workforce with a can-do attitude. shown that they are good at helping each other and helping other communities when it counts. This edition of NFR covers what we are doing to prepare for the predicted dry and the importance of rural infrastructure — two aspects vital to building resilience in a changing world.

Pragmatic approaches to safer practices By Graham Smith chief executive Health and safety has been a big talking point for farmers and the wider primary sector this year. I have not talked to anyone who disagrees with the fact there are far too many fatalities and serious accidents on-farm in New Zealand. I believe many of us do need to change our attitudes and practices towards health and safety, but in a way that does not undermine the very essence and culture of farming in New Zealand. What we need are good, practical solutions as opposed to bureaucratic, paper-led exercises that focus on ‘ticking the boxes’ and filling out numerous forms. Federated Farmers has been very active in helping to develop solutions

What we need are good, practical solutions as opposed to bureaucratic, paper-led exercises that focus on ‘ticking the boxes’ and filling out numerous forms. around the biggest issues. We have undertaken workshops with farmers to develop good practice guidelines around the riding of quad bikes and are now discussing these with WorkSafe. I chair a health and safety working group which includes senior managers from WorkSafe, Beef + Lamb NZ and DairyNZ. This is an important step in ensuring that we work more collaboratively in developing good, practical solutions. As you will be aware, the Government recently passed new legislation which it hopes will improve health and safety in the workplace. Fortunately, the Government did adopt a key recommendation from

Federated Farmers to exclude the farm house from the scope of the bill even though the select committee did not recommend it. Our policy advisor Nick Hanson has worked throughout the year on this process with WorkSafe and he discusses the new legislation on pages 10-11 and what farmers can expect come next April when the Act comes into force. Finally, the current situation in the dairy industry is still of great concern, particularly regarding sharemilkers. To help understand many of the problems being faced by them, Federated Farmers recently surveyed our members and the results on page 14 emphasise the challenges that lie ahead.

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October 2015 National Farming Review

NATIONAL POLICY

Feds take research concerns to Beehive Federated Farmers staff Recent job cuts at AgResearch and the broader erosion of New Zealand’s agricultural science capability will be top agenda at an upcoming meeting of the Prime Minister and Federated Farmers president Dr William Rolleston and chief executive Graham Smith. It’s a conversation Federated Farmers is also looking to have with other political parties. “Agriculture science is a long-term investment which is difficult for governments on a short term three year election cycle, but we owe it to our future farmers, and all New Zealanders, to make the investments now, develop our capability and build the basic sciences which provide the necessary grunt to ensure commercialisation of

innovation is optimised,” Dr Rolleston said. He said New Zealand was well known for its leadership in agriculture, which continued to be a significant player in the economy and our biggest export earner, and science must continue to be one of the key drivers that propel this vital sector forward. “We need science to continue to provide the solutions for tomorrow through increased productivity, reduced environmental impact, new products and added value for our current products. “We also rely on science to address the risks we face with a changing climate, biosecurity, the market and our social licence to operate. Agricultural science capability is at a low ebb in New Zealand. We lack a co-ordinated strate-

gic plan and our science system is overgoverned and micro-managed. “We need a plan which will rebuild our science capability and give more responsibility to our CRIs as outlined in the CRI Taskforce Report (2010). The taskforce recommended core funding for CRIs and more decision-making at the institution level. “While this has happened, the development of the National Science Challenges has tied up a significant proportion of core funding and makes governance responsibility unclear. ” The Government has the opportunity to turn the tide with outcome of the core funding review where we would expect to see an increase in core funding which has not been inflation adjusted since it was instituted. “We would like to see a growing

agricultural science sector which is moving forward with confidence, not a shrinking one where scientists are disillusioned and our youth discouraged from science careers. This is vital for the agricultural sector and an area where we’ll be looking for support, not just from Government but across the political spectrum.” Federated Farmers hope that the National Statement of Scientific Intent which the government is soon to release will reflect the importance of science in agriculture. “We’re hoping to see more attention to basic research and capability, greater stability and certainty for scientists in the primary sector within an ecosystem where a science career can be rewarding and valued,” Dr Rolleston said.

Battle looms over rural broadband initiative By Jacob Haronga Senior policy advisor First the good news. The latest Rural Broadband Initiative (RBI) quarterly report suggests that Vodafone and Chorus are on target to meet their goal of connecting 90 per cent of highspeed broadband into rural communities by next year. This is great news for farmers. The much anticipated rollout is vital to improving the running of many farms — both homes and businesses — as the online services on which they increasingly depend on become more elaborate and data hungry. What is unlikely to please farmers is an amendment to the Electricity Act 1992 through which the Government will seek to allow local lines companies to freely run fibre cables over farmer’s property along existing electricity lines, poles and towers, and to do so without consultation. The message is that delivery of highspeed broadband overwhelms a landowner’s property rights to determine the use of their land by others, but is the opportunity cost too high?

RURAL CONNECTION: Since Rural Broadband was introduced the provinces are becoming more connected but is the delivery good value for money?

The alternative would be to require lines companies to secure easement rights, as is currently required by law. This process requires consultation with the landowner, where often the key concerns are the business and land impacts, or simply the timing of the works.

In Federated Farmers’ experience, this process often saves time in the long-run. We’ve supported farmers in their dealings with electricity lines companies where fast-tracking and a lack of consultation with landowners has lead to costs and delays resulting from legal action.

It’s possible the Government will submit their amendment of the Electricity Act 1992 before the end of this year. If it goes through, we may again see landowners push back on this intrusion on their property rights and, once more, the end result could be farmers exercising every legal right they have to delay the rollout. Another challenge facing the RBI is lack of ambition. This was a core deficiency in phase one of the RBI, which was designed to get us to 90 per cent coverage. Phase 2, taking us beyond this, is now underway with the launch earlier this year of a tender to select the delivery partners. An appointment is due by the end of the year. While phase two will build on phase one’s achievements, the question should be asked: does this achieve all that rural New Zealand could reasonably hope for? There are limited funds that can be put towards any infrastructure project, and it makes sense to aim to achieve the best bang for buck. For a lot of the phase one build, the improvements to rural telecommunications networks are great, but one wonders whether a less capitalintensive ‘good enough’ approach might be a better model for what remains of the phase one rollout and much of phase two. Only time will tell. Farmers, meanwhile, keep their fingers crossed for the coverage they need and the consultation they deserve.

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NATIONAL POLICY

Police invite Feds to talks on rural security Federated Farmers staff An increased focus on rural security by Federated Farmers is seeing police get tough on the issue. A national Rural Police Prevention conference in September addressed growing rural community frustration around security and looked at the steps needed to improve the situation. Federated Farmers rural security spokesperson Rick Powdrell was invited by police to contribute to the discussion as the ‘rural insider’ for the police. “We’ve been placing a high emphasis on the rural security issue through our direct contact with Ministers and Senior Police. It’s a big issue for the rural community and action has to be taken,” Mr Powdrell said. “Federated Farmers welcomed the invitation from police to take part in the conference. It gave us an important opportunity to highlight the key issues for farmers and to clarify some of the misunderstanding surrounding them.” The police have admitted they need to invest more in rural security, and have started mapping out a rural police strategy and action plan. “It’s extremely encouraging to see how committed the Police are to improving

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rural security,” Mr Powdrell said. “The strategy will be implemented nationwide, however an initiative between police, Federated Farmers and FMG will be a concentrated focus in the Northland, Bay of Plenty and Waikato regions. This initiative involves formulating a series of rural security guidelines to assist the rural community to implement the best security plan for their own individual properties.” It is planned to have roadshow meetings for rural communities that will provide an opportunity for rural people to

THEFT: Federated Farmers, FMG and the police recently hosted a conference on rural crime looking at ways of reducing theft in our rural communities.

voice their concerns and learn more about the ways they can help prevent crime. The police are also keen to help farmers implement security measures on their farms.

“The strategy will address what tools we as farmers need to do to help ourselves. Every property and situation is different so it will be about doing what’s practical for you,” Mr Powdrell said.

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October 2015 National Farming Review

TRADE

TPP will have significant net benefits Mike Petersen NZ Special Agricultural Trade Envoy Improving market access for agricultural products has recently been at the forefront of debate in New Zealand. The Trans Pacific Partnership (TPP) has been the target, with much of the discussion ignoring the realities of New Zealand’s place in the world of food. So why is the trade and market access agenda so important for New Zealand agriculture, and why should we continue to fight for better access to markets? Let us first look at the facts. The fundamentals of increased demand for food in a rapidly growing world are undeniable. For New Zealand the opportunity is not in feeding the masses, but instead, accessing the growing middle class of discerning consumers who are prepared to pay more for high quality, authentic, naturally produced food. In the pursuit of food security, countries are now realising that this cannot be efficiently obtained with yesterday’s policies of self-sufficiency. For most

countries, food security will be achieved by using a balance of domestically produced food supported by imported food products. Smart thinking will be required to determine priorities, but global shortages of water, agricultural land and know how place New Zealand right at the heart of providing solutions for a hungry world. The brutal reality for New Zealand is that with a domestic market the size of Sydney, we rely on the world for a living. When we combine the need for freeflowing food value chains and New Zealand’s efficiency in food production, it is increasingly apparent that barriers to markets are barriers to our future prosperity. Access to markets remains a major challenge for a number of New Zealand primary sector products. New Zealand has been very successful in securing a number of high quality trade agreements with emerging markets. However, access for New Zealand exporters to many of the worlds most affluent markets remains blocked, due to the prohibitive costs imposed by tariffs and quotas supposedly to protect domestic farmers. There is irony in the fact that these tools of the past were established when food was plentiful. In the environment that exists today, these are yesterday’s

tools to deal with a threat that doesn’t exist anymore. New barriers to markets are emerging in the form of non-tariff trade barriers that increasingly require attention to make sure that they also, do not impede the flow of New Zealand’s goods into markets. In order to secure New Zealand’s future prosperity, access to affluent markets remains a key priority. Added value products will only have value in markets where consumers can afford to pay for them. Currently, tariff regimes that increase exponentially on processed products punish value-adding here in New Zealand. All of these issues need to be addressed to make New Zealand more competitive on the global stage. TPP is at the centre of our attempts to increase access to affluent markets in what is the fastest growing region in the world. TPP matters hugely for New Zealand with the region home to 40% of the world’s GDP. Importantly, among the 12 TPP member countries, International Monetary Fund data reports that six of these have purchasing power higher than New Zealand. Additionally for New Zealand, concluding TPP is critically important to balance our trade in the Asia Pacific region. Current trade agreements secure our future options in China and South East Asia. TPP will open up Japan, and

importantly encourage us to look east across the Pacific Ocean to the Americas where huge opportunities abound. Recent turmoil in world markets confirms the need for New Zealand to have alternatives and a diversity of market destinations to mitigate risk in an increasingly volatile world. Concluding TPP will have significant net benefits for New Zealand. Claims to the contrary by some commentators are misplaced and misinformed. New Zealand will not lose its sovereignty, or be sold off as claimed, and improved access for New Zealand primary sector products is the prize worth pursuing. TPP is one part of the puzzle that is currently on the table, and nearly complete. There is still further work required to get a deal for New Zealand that meets our expectations on quality, but work is continuing to make sure this can be achieved. Improved market access into Europe is another priority that is on our immediate horizon. Success and prosperity for New Zealand agriculture, and the country itself, depends on improved access to a wide range of emerging and affluent consumer markets. This matters more for New Zealand than any other country. It is critically important we continue to fight for this objective to secure the future for the next generation of farmers.

NATIONAL POLICY

Federation focused on employment law changes By Nick Hanson General policy advisor Amendments to employment law seem to be in favour with Parliament and Federated Farmers has been asked to comment on minimum wage rates. There are number of Bills, both Government and members’, making their way through the House alongside stakeholder consultation from MBIE on the rate of the minimum wage from April 2016. Since 2000, successive governments have substantially increased the minimum wage annually well above the rate of inflation. However, with very low inflation and tougher economic times ahead, particularly in regional New Zealand and for farmers, it is questionable whether another rise is justified. The consultation on the minimum wage

does not require a law change, but there are a number of amendments to legislation in front of select committees right now. There is a Government Bill that, among other things, will seek to deal with the infamous ‘zero hour’ contacts by stopping employment arrangements that allow employers to impose strict conditions on employees but have no level of reciprocity. For example, requiring people to be available for work for a certain number of hours but giving them no guaranteed

minimum, thereby limiting their ability to seek employment elsewhere. For farmers it’s important to recognise this change will not affect genuinely casual working arrangements where both the employee and employer can engage with one another on their own terms with no expectation of regular or ongoing work. The Bill also seeks to increase the length of paid parental leave available to employees and the self-employed. This is the second Bill being debated at select committee that seeks to increase parental leave. The other is a Bill in the name of Labour MP, Sue Moroney which passed its first reading. The Government’s Bill seeks to increase paid parental leave to 18 weeks in 2016 whereas Moroney’s Bill will take it

further to 26 weeks. Moroney’s Bill appears to have the numbers but Bill English has warned he may use his financial veto to stop it going through. Lastly, there is another members’ Bill, from Labour MP David Parker, that also passed its first reading before the select committee. This Bill, if passed, would provide for a minimum rate of remuneration, at least as much as the minimum wage, to contractors in prescribed sectors. While agricultural contractors are not listed in the Bill, it will affect forestry contractors and those in construction, two industries which farmers will often engage contractors. Federated Farmers is taking a close interest in these developments and will work to make sure the interests of farming are protected.

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ENVIRONMENT

Agrecovery goes from strength to strength By Simon Andrew Agrecovery business manager Nine straight years of growth for Agrecovery rural recycling shows farmers and growers across the country are increasing their sustainable recycling practices. Results for the year ending June 2015 stand at 15,495kg of unwanted chemicals and 240,732kg of recycled plastic packaging collected, reflecting a 50 per cent jump in container recycling over a two-year period. Anders Crofoot, the Federated Farmers trustee on the Agrecovery Foundation, says it’s been a year of milestones for Agrecovery. “We exceeded 1 million kg of container plastic recycled since our 2007 launch and we now have over 10,000 farmer and grower members. Plus, earlier this year we launched our onfarm collection service for large drums and IBCs.” The new large drum service is proving very popular with farmers, while also being the catalyst for wellknown hygiene and teat-care brand FIL to join the programme in February. With FIL joining, Agrecovery is now

AGRECOVERY FAST FACTS 12 months to June 30, 2015 • Six chemical collections were held in Auckland, Bay of Plenty, Gisborne, Greater Wellington, Marlborough and Canterbury, collecting 15,495kg of unwanted/ expired chemicals. Visit www.agrecovery.co.nz to see upcoming collections. • 240,732kg of container and drum plastic was collected for recycling. The amount of energy saved when using this volume of recycled plastic versus making new plastic equates to 452,000 litres of petrol.

SUSTAINABLE INCREASE: Farmers throughout the country are actively participating in recycling.

supported by 63 participating brand owners who voluntarily pay a levy on their product sales into the New Zealand market. This enables farmers to access nationwide recycling services for free. The industry-good programme is New Zealand’s solution for disposal of

unwanted agrichemicals and recycling of empty plastic packaging. All plastic is recycled in New Zealand, while chemicals are treated for safe disposal in New Zealand and overseas. As well as having a trustee on the Foundation, Federated Farmers

provides business management services and proactively works to support the programme and improve services to farmers. ■ Special offer: Federated Farmers members who join Agrecovery before the end of October receive an Agrecovery cap. Register online at www.agrecovery.co.nz or call 0800 AGRECOVERY (247 326). Membership is free.

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October 2015 National Farming Review

INFRASTRUCTURE

Driving better rural infrastructure The need for stronger governance and bigger balance sheets New Zealand’s rural economy is the engine room of the national economy. Around three quarters of the nation’s exports by value depend on production of raw inputs from regional New Zealand. Ensuring our rural economy grows and our rural communities remain vibrant is a national priority and the foremost tool of public authorities to generate opportunity in our rural hinterland is infrastructure. Current planning, regulatory and governance arrangements, however, do not support infrastructure investment to drive growth in our provinces. There have been some very positive rural infrastructure developments in recent years. The Government’s Roads of National Significance programme will allow large swathes of rural land adjacent to our largest cities to evolve in response to better access to markets and labour. Rural broadband is connecting rural communities and businesses to the world. Irrigation projects including Ruataniwha and Central Plains will provide a massive boost for aging and declining populations in parts of Hawke’s Bay and Canterbury as more intensive land use becomes possible and, with it, jobs, investment, revenue and growth. For rural communities battling unemployment, social challenges, aging population and a general lack of opportunity, projects like these can’t come soon enough. Yet far from accelerating their delivery to promote social and economic prosperity in our rural hinterland, our governing and regulatory systems provide a constant barrier to their delivery. In the first instance, other than the nationally-focused Government, there are few councils with the capacity to deliver rural infrastructure which will make a tangible difference to rural communities. Stripping out the big city councils of Auckland, Wellington and Christchurch, the average size of New Zealand’s local councils is 30,000 residents. That’s one Horowhenua. Horowhenua has an annual roading budget of $5 million, less than $200,000 of which is available to support new roads. Local councils do not have the balance sheets, rates bases or strategic capacity to identify economic and social opportunities and realise those opportunities with targeted investment. In instances where they do, current legislation hardly supports investment to generate growth. The Local Gov-

undertake a first principles consultative review of the planning framework and the purpose, structure and funding of local government in New Zealand. It would

ernment Act emphasises costeffective local infrastructure for households and businesses, not strategic infrastructure to maximise economic and social opportunities. This places the overwhelming majority of reliance on central government to provide the investment needed to grow rural economies. Here, the small size of councils acts as a double whammy against rural communities. The shouts for more Government money in consolidated cities like Auckland and Christchurch is many times louder than anything a local mayor of 10,000 residents can muster. As a consequence, taxpayer money heads towards the big centres, further increasing their opportunities and attraction relative to the provinces. When central government or councils do rally the momentum needed to deliver rural infrastructure investment, proponents come up against the Resource Management Act. The RMA is set up to manage negative effects and provides every opportunity to oppose investment while economic and social uplift takes a back seat. This not only slows infrastructure investment, deferring jobs and opportunity to a later generation, it increases risks to investors. Higher risk demands higher returns and, as a direct result, many viable projects which could materially improve the lot of rural communities never get out of the starting blocks. What’s needed is a fully integrated planning, governance, funding, regulation, delivery, and resource management system that will drive regional social and economic development, improve environmental outcomes and strengthen local democracy and community engagement. More importantly, councils will need the resources and incentives to go for growth. Change of this kind requires participation by all New Zealanders. It cannot be led by councils themselves or any single government department. NZCID therefore considers that an independent Royal Commission into local government and planning law reform in New Zealand is needed. The commission would

report back to Parliament and provide recommendations on a preferred option. If the rural community was to get behind such an initiative there

would be a huge opportunity to drive changes to legislation and local government which better support productive rural infrastructure and growth.

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National Farming Review October 2015

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NATIONAL POLICY

Barriers to irrigation investment By David Cooper Senior policy advisor The impending El Nino has farmers throughout the country thinking about irrigation and water storage. But who should invest in it and why? Proponents of irrigation regularly argue for some form of public funding for irrigation infrastructure. Is this just crony capitalism or are there genuine reasons why public funding should contribute to irrigation? Debate over the public support provided to irrigation development is useful, even welcome. Each irrigation proposal has to be considered on its own merits, and farmers are as averse to public sector handouts to corporate entities as any. Rather than chucking money at any and every irrigation scheme, it is a case of approaching each proposal with an understanding there are likely to be barriers to investment which need to be addressed. What are these barriers and why can’t prospective irrigators just get the cobwebs out of their pockets and get on with it? Irrigation doesn’t result in ‘super profit’ farm gate returns. It is often used as

Some farmers have put so much effort into getting commitments to a scheme, a sheepdog would be impressed. drought insurance for a portion of the farm, rather than being used to ramp up production. For farmers in particular that means taking a large gamble they will be able to change farming systems to make the new investment pay for itself, a concern underpinned by farm return variability. This variability impacts both the decisions of irrigation investors and also the decisions of banks and other financial institutions. This feeds into issues of scale and co-ordination. Achieving critical mass for investment requires coordinating farmers, banks and third party investors to agree to participate and provide large amounts of funding. Some farmers have put so much effort into getting firm commitments to a scheme, a sheepdog would be impressed. Who but the potential irrigators

should care if these schemes don’t proceed? In terms of economic returns, irrigation can provide significant public or indirect benefits. A Ministry for Primary Industriescommissioned report from NZIER and AgFirst estimated that, based on 2011/12 figures New Zealand’s real GDP would be 2.4 per cent lower (or $4.8 billion less) without irrigation. This is not just farm earnings. Better farm gate returns lead to greater demand for farm services and processing of primary product. In other words, downstream economic benefit. Investment in irrigation can allow a community to have this economic cake and eat the ecological one too. More water means less pressure on resources, better stream and river flows, and better resourced aquifers. Augmenting flows through irrigation

gives us the economic benefits without the environmental costs, provided the subsequent production does not breach environmental standards. These barriers are addressed in part through central government’s Irrigation Acceleration Fund, which aims to support the development of irrigation infrastructure proposals to the ‘investmentready’ prospectus stage. A step beyond this, Crown Irrigation acts as a bridging investor to make “targeted investments into schemes, alongside other partners, that would not otherwise be developed” using established investment criteria. District and regional councils also have some discretion to fund irrigation development where there is a clear community benefit. Generally public sector support takes the form of seed funding for capital development with the requirement for a commercial return to the lender, rather than committing public money to fund operating costs. Addressing these barriers to investment in irrigation unlocks economic and ecological benefits for communities and irrigators alike.

Let’s not have targets on our backs By Chris Lewis Waikato Federated Farmers provincial president I don’t consider myself injury prone though I’ve been hospitalised with a back injury and dislocated shoulder in the past year. Call it old age, or perhaps those years playing rugby are coming back to bite, but as a farmer staying fit is vital and that means being savvy around on-farm health and safety. In the past year, Waikato Federated Farmers has hosted six health and safety seminars as we believe that all farms should have a health and safety plan. It’s not something to hesitate on. I decided to take action not just for my own welfare, but also because I have an obligation to set standards for my staff. As an employer of many staff, I can’t afford for them to get hurt let alone myself. When you milk 1100-plus cows, you can’t milk them by yourself, so you become reliant on staff, and them turning up on time, keen and fit. For me, it’s not solely about making

changes to satisfy WorkSafe either. I had already decided a few years ago to implement a health and safety plan for my farm. You might find this surprising, but we bought bike helmets five years ago and have worn them ever since. Staff using quad bikes must also observe the 30km speed limit on-farm. We believe strongly in providing a health and safety policy and procedures for our staff to follow. Since introducing a plan there is regular farm meetings, with a new topic each month. These meetings are not regimented or serious conversation, but more a ‘heads up’ on the dangers around activities staff might be encountering at the time. We have modern machinery on our farm and this is regularly serviced by qualified people. Staff are encouraged to do regular checks and report any issues. As a point of reference farm safety rules are kept at the cowshed and are

written into job descriptions. For any new employees, we always make sure they are paired with senior staff when they start. I also recommend drawing up a map of the farm so that no-go zones are clearly defined. Above all, I’ve learned on-farm safety is always evolving and it’s important to revisit your health and safety plan periodically. This year, we built a bobby calf stand, so the truck drivers don’t have to lift calves on the truck now. It saves their backs and mine. If you happen to be driving past Lewisridge Farm you will notice our staff with their high vis overalls, raincoats, vests, and shirts. Neighbours often say we stand out, but hey, that’s the point. I realise it costs and some farmers will be looking at the costs short term. But it is a bloody sight more expensive long-term if you don’t. Consider weekly ACC, casual labour costs and frustrations of training someone new, and be prepared for the insurance and ACC premiums hike!

We are not perfect and if a WorkSafe inspector visits, I may not pass 10/10 in a farm audit. I accept that, but at least I’m proactive making improvements on farm and changing the attitude of myself and my team to get safer outcomes on our farm. So I encourage all farmers to look at your farm and consider if what you are doing is safe and whether it is compromising the wellbeing of staff. You don’t need a major overhaul overnight. But show intent and make small steps each year to a safer farm. Every step forward will contribute enormously to safer farms and better outcomes for our industry in attracting and retaining the best staff our industry needs going forward. There’s lots more I could write, but the headlines keep coming for farmers at the moment. It’s like a target on our backs, so let’s collectively move the target and shift it towards having safer farms and let another industry grab the unwanted headlines for a change!

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October 2015 National Farming Review

NATIONAL POLICY

Feds reviewing adverse event response Federated Farmers’ focus on adverse events adds value to membership. One of the unwelcome themes of 2015 has been the scale and significance of weather related adverse events. Federated Farmers’ role in responding to these events is being reviewed to improve outcomes for farmers and rural communities. Adverse event is a broad term encapsulating a long duration, such as the insidious nature of a drought, while also, immediate impact events like flooding, or extreme wind. From a central government perspective, the Ministry for Primary Industries (MPI) is the lead agency for adverse event responses. MPI’s role is intended to provide guidelines around what resources central government can provide. A framework is applied for assessing the impacts of an adverse event, with a classification process used to establish whether the event is considered a localised, medium or large scale event. Once a declaration is made, the Government decides what level of support is available to assist rural communities and individuals recovering from an event. The primary industry, rural support trusts, local communities and individuals all join together on an MPI response. Where there is no official declaration a response may still occur, however, it is community- or industry-led, not MPIled. Depending on the event, Civil Defence may also play a part as they have in response to the central North Island floods, again with clearly defined roles. That is the plan, but as Mike Tyson once said, “everyone has a plan until they get punched in the mouth”. In a flood event, it is boots on the ground, immediate impact, for as long as it takes. In a drought event, there is virtually too much time to respond. Plan too much for one and you will end up having to deal with the latter. Still, there remain some important consistencies between what is required in responding to adverse events. Those communities impacted are generally knee-deep and need some external support. An efficient and effective response requires some organisation to have occurred prior, ideally including those who are generally involved in any response. The latter aspect is particularly relevant when it comes to rural communities. As Canterbury farmers demonstrated through the ‘Farmy Army’ response to the Canterbury earthquakes, the farmer way is to get in there early and help out as much as possible. This lend-a-hand nature has also been reflected in offers of donated feed between neighbours and exchange between North and South Islands over the years. Primary sector organisations and those who engage with farmers regularly tend to also pitch in when rural communities are impacted. In these situations though, there is a need to maximise impact through effective coordination. Clarity around roles between the different agencies and engagement in peace time leads to the ability to respond better when it is actually needed. Federated Farmers is reviewing the events of this year and looking ahead. At a local level, this has included the MPIled review of the South Island response. In the Manawatu-Rangitikei, Federated Farmers recently brought together the primary sector to look at the

strengths and weaknesses of the flood response, and how we can maximise opportunities going forward. At a national level, the review will include a discussion with MPI around

their views around what worked and didn’t, and what changes are needed for future responses. It’s anticipated these reviews will provide clarity and certainty around

how best we assist farmers and communities impacted by adverse events. This leaves farmers impacted by the flooding or drought to get on with farming.

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National Farming Review

October 2015

www.fedfarm.org.nz Ph 0800 327 646

FEATURE

A safer farm workplace The spectre of health and safety reform has hung over farmers like a dark, foreboding cloud throughout the year. Federated Farmers meanwhile campaigned in the background with the Government and WorkSafe to ensure proposed legislation was realistic and practicable to farmers. The Federation’s health and safety advisor Nick Hanson was present throughout those pivotal meetings and discusses the reform and what farmers can expect.

arly in the year, before the drought had taken hold and the dairy payout sensationally plummeted; farmers would have been more concerned about encountering a WorkSafe inspector across the paddock. Some might still be, but it shouldn’t hold the same trepidation or animosity. Few pieces of legislation this year have caused as much controversy as the Health and Safety Reform Bill, with Federated Farmers and agriculture in the thick of it. After much acrimony and, at times, woefully ill-informed debate, the Bill was passed in September and will come into force next April as the Health and Safety at Work Act 2015. The biggest controversy was over a relatively minor point — the definition of ‘high risk’ industries for the purpose of worker engagement. The initial list of “high risk” industries omitted most types of pastoral farming and this led many to portray agriculture as being exempt from the provisions of the Bill. In reality, the exclusion only covers the need for small businesses to have a formally trained staff health and safety representative — a total of four pages of a 275-page bill — and besides, this list is only the start of what will be an extensive consultation

period to ultimately determine what is ‘high risk’, with no guarantees made. The Act has implications for farmers as it does for every other business. Farmers will be required to systematically eliminate or, if not reasonably practicable, manage the risks faced by them and anyone who works on their farm. The Bill also puts new obligations on the ‘person conducting a business or undertaking’ (PCBUs in the language of the new Act) that have overlapping duties. This essentially means farmers and agricultural contractors working together under more co-operation and co-ordination. And, as well publicised, there are much higher fines available to the courts in the event of a proven breach of the law, and greater responsibility put on directors, partners or trustees which will have an impact on farming companies, partnerships and trusts. Federated Farmers supports the principles of the Act and welcomes its passing, but there were significant concerns with the Bill as it was introduced. While the effect of the farming lobby was generally overstated by media, we were able to demonstrate a case for

COLLABORATIVE EFFORT: Farmers will be required to systematically manage the risks faced by them and anyone who works on their farm.

several meaningful changes during the consultation phase. The original Bill would have made it impossible to undertake any recreation on your farm. From a picnic to riding horses, and even hunting which, under the Act, the area has to be free of all health and safety risks. The reform states that while the farmer retains duty of care for farm structures like barns and sheds, and any farm area where work is being undertaken, absent these work environments, there will be limited responsibility under this Act at least. ■ Federated Farmers Industry Forum: Federated Farmers still envisages a large amount of work to be done on health and safety. Now legislation has been passed the industry has an opportunity to be proactive and to address the obvious threat to farming from such high numbers of fatalities and serious injuries. The Federation has since convened a CEO’s forum with Beef+Lamb NZ, Dairy NZ and

WorkSafe NZ to address the big issues at the highest level, reflecting the importance of the issue. Good health and safety starts with leadership and we are committed to working together in the new forum to improve the culture on farms in New Zealand. Not all health and safety rules farmers need to adapt to are controlled by the Act, or even regulations. The priorities and opinions of WorkSafe are also incredibly important as they are required to interpret what compliance with the governing Act looks like. WorkSafe isn’t a farming expert and we intend working with them through direct engagement and through a number of existing groups. That way, they can appreciate the risks facing farming, and what steps are reasonably practicable for farmers, given the inherent unpredictability of farming in New Zealand. One of the bigger issues is rules around quad bikes, particularly passengers, and we

are talking with WorkSafe to get more sensible and workable rules. In the meantime, the passing of the Act has generated a process of consultation for a series of regulations that sit underneath the Act and will come into force at the same time. If you consider the Act to impose the high level principles and duties, the regulations will be more detailed about what compliance with the principles of the Act will mean. There is a raft of regulations with the most relevant to farmers being those involving hazardous substances, and the “general risk and workplace management”. These regulations impose a series of restrictions on the presence of young people in certain workplaces. Although it is not expected this will place unreasonable restrictions on the presence of children on farms, it is an opportunity to get absolute clarity that there is a place for children on working farms, so long as they are kept safe, so far as is reasonably practicable.

Ph 0800 327 646 www.fedfarm.org.nz

October 2015 National Farming Review

FEATURE

Working with WorkSafe NZ Federated Farmers and workplace health and safety regulator WorkSafe New Zealand have had a terse relationship since farm safety became a nationwide focus. This acrimony threatened to escalate when a Marlborough farming family was fined excessively for not wearing helmets while using quad bikes. Lawyers were subsequently consulted and lines drawn on what was considered acceptable to the regulator and farmer. However, the cold war which was in the making has apparently thawed with both parties now willing to work on their differences in the best interest of farmers and their safety. WorkSafe programme manager for agriculture Al McCone welcomes the change in relations and told The National Farming Review that farmers were not been singled out for special scrutiny. “I think in the last six months there’s been a shift in attitudes with on-farm health and safety. If you read rural media or follow social media farmers are more positive towards improving safety on farm.” While reluctant to be drawn on whether WorkSafe had changed its approach after negative publicity late last year, Mr McCone said there was a better understanding of what farmers faced daily and WorkSafe had departed from the previous regimented Department of Labour enforcement. “There is definitely a more consistent approach and we’ve found our ‘engage, educate and then enforce’ practice is more successful,” he said. Around 150 inspectors are operating throughout the country (not including accident investigators) — many so busy they’ve been seconded to deal with investigations. No one should be surprised; the accident rate here is “huge and far out of proportion compared to other countries,” he said. Mr McCone believes our poor record is perhaps due to our frontier mentality where migrants who left the Motherland wanted to forget the strict society they had experienced, creating a country where sense of freedom was encouraged and innovation flourished, but this probably embedded more risk taking. Another factor, often overlooked, was the generational changes in lifestyle and farm innovation. The modern farm was

SAFETY ONUS: WorkSafe’s Al McCone says neither WorkSafe nor Federated Farmers will change safety on farm — it is only farmers themselves who have the power to do that.

more frenetic in activity with vehicles and equipment more powerful, which compromised safety of staff and children. The modern farm ute had V6 engines and while they have modern refinement they might not always be handled appropriately according to hazardous farm terrain. While Kiwi farmers generally recognise the risks, it’s more how they are managing the risk which is the underlying issue. Anecdotal evidence purports that of farmers having an accident, at least 60 per cent admit they were careless as they knew the risk. Once a risk was identified it should be acted on and staff informed of it immediately. Farmers were legally obligated to notify WorkSafe of an incident of serious harm. “Farmers often talk about how they minimised a risk, but we would rather they considered whether they needed the risk in the first place,” he said. Federated Farmers has fielded complaints on how inspectors were conducting themselves and these experiences had left farmers sceptical of WorkSafe. Mr McCone said WorkSafe were mindful of industry circumstances giving farmers plenty of notice that they were in the area and ready to make inspections. “We usually do a letterbox drop before and that will have details

asking when a suitable time is for us to visit. We’ve also put fliers in local retailers or services, as it can be hard getting hold of farmers when they are busy.” Inspectors generally come from manufacturing and construction backgrounds, though there were current or ex-farmers and others with agricultural experience from having been brought up on a farm. WorkSafe had a policy where new inspectors worked alongside an experienced inspector. They are also briefed on what to look for so they have an understanding of farms and what to expect. Mr McCone said it was frustrating for inspectors and problematic as some farmers had been misled on what was required to be compliant. “Look, generally speaking every farm should have a health and safety plan. It’s the law anyway and has been since 1992. As long as farmers have one and can demonstrate they are actually using it and regularly updating it that is a start.” Most farmers were “getting it and doing it”. There was no template and if it works for you and you can show that, you don’t need to follow every precedent, he said. Mr McCone was keen to assure farmers that WorkSafe was not brandishing infringement notices without due process. “If there is an immediate risk of

harm we may present a prohibition notice which halts the activity until the issue is solved. Otherwise, we might ask that the farmer fixes a less urgent issue and we would note that on an improvement notice. We would not issue an infringement notice without a prior warning,” he said. WorkSafe is developing a toolkit that will assist inspectors with showing farmers how their farm compares with others and what changes they could make to improve safety. Farmers, meanwhile, should be wary of forking out unnecessary money — in some cases, thousands — to selfappointed health and safety advisors. “I’ve heard cases were farmers have paid $3500 for what was essentially a folder with information. Some of these people offering health and safety policies are misleading farmers and we are looking at developing a code of practice and an accreditation scheme along with the Health and Safety Association of NZ (HASANZ).” WorkSafe had no specific timeframe for getting farmers up to an acceptable level of compliance. However, they had targets in mind for reducing instances of “serious harm”. By 2016 they hoped to reduce the instances of serious accidents by 10 per cent and 25 per cent by 2020. Mr McCone said: “This is eminently achievable. Of course having systems in place is one thing, but actually living them is something else.” If those targets were met it could generate hundreds of millions to the economy and reduce ACC costs by around $90 million. Mr McCone said neither WorkSafe, nor Federated Farmers will change safety on farm — it is only farmers themselves who have the power to do that.

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National Farming Review

October 2015

www.fedfarm.org.nz Ph 0800 327 646

REGIONAL SPOTLIGHT

A welcome shot in the arm By Kristy McGregor Agriculture figures prominently in the Manawatu-Whanganui regional growth strategy with five of eight opportunities identified — land and agricultural-based developments. These include sheep and beef processing, land use intensification, Manuka cultivation for honey production, fresh vegetables for export, poultry meat, grain growing and food innovation. The Manawatu-Whanganui region is home to the largest numbers of sheep and beef farmers throughout provincial New Zealand. The Government-commissioned report released in Palmerston North in July comes after months of work by the NZ Institute of Economic Research (NZIER) and consultants HenleyHutchings. Local council, iwi, businesses and stakeholders, including Federated Farmers, were involved in identifying the growth opportunities. Manawatu-Rangitikei provincial president James Stewart described the report as a “shot in the arm” for the region, and local primary industries, especially after a challenging winter. “We are being given collaborative backing from local, regional and central government, and now it’s up to us to take it up and make it work. “It’s positive to hear the words open for business but we must ensure we are a business-friendly environment,” he said.

BALANCING ACT: The water quality of Manawatu River is important to all parties but excessive regulation could undermine the growth of primary industries.

With the Horizons region one of the first off the mark in terms of the setting of targets for water quality, there is concern the opportunities for economic growth will not stymied by stringent regulation imposed by the regional council. Federated Farmers hopes the regional council’s investment in the process, including as a core facilitator for the leadership team, will ensure the council focuses on their role of enabling economic development. Mr Stewart said it was about being smarter by using resources and raising performance — given the region passed through the environment discussion — and what opportunities

there are within that. With work on implementing the report under way, and the region determined it will not be a top drawer job, the conversation is turning to how to use the region’s land and water to increase productivity and sustainability. It is encouraging to see the regional council is looking introspectively at how the council’s non-regulatory resources can better assist farmers to achieve these goals. The council has a key role as a facilitator, through an enabling resource management framework and provision of infrastructure. This allows farmers to take the lead in maximising

Federated Farmers hopes the regional council’s investment in the process, including as a core facilitator for the leadership team, will ensure the council focuses on their role of enabling economic development. productivity through business decisions. Manawatu-Rangitikei Dairy chair Mat Hocken says farmers, community, agriculture suppliers and the council will need to work together to catalyse the opportunities. “The report does show that in some areas the region is under performing, and there are lots of opportunities to grow, particularly across the agricultural sector. There certainly is no lack of passion in the region to make this happen.”

Environment Southland water plan causes concern By Tanith Robb Senior policy advisor Southland farmers are worried by Environment Southland’s decision-making around the region’s water quality. The regional council describes the draft ‘Water and Land Plan’ proposals as a way to halt water quality decline, while it undertakes the science and economic work needed for limit setting. For farmers, it could result in land development being severely limited or prohibited across much of Southland’s productive land. The plan could also see a restrictive resource consent regime implemented for normal farming activities. Federated Farmers considers plan

proposals are at odds with what is known about water quality in Southland, the council’s aims for the plan, and the upcoming community discussions around limit-setting. Firstly, water quality in Southland is reasonably good, there are relatively few contaminant (mainly nitrogen) issues, and phosphorus levels are generally declining. Given the problems in a limited number of ‘hot spots’, it appears excessive that the regional council would propose a region-wide framework that attempts to freeze current land use in place. This approach is at odds with the Parliamentary Commissioner for the Environment’s recommendation that regional councils

focus and prioritise efforts and expenditure on vulnerable water bodies, or those under particular pressure. Second, Environment Southland’s draft plan goes further than its aim to ‘hold the water quality line’, as it places resource consent requirements on areas with good water quality and farming activities that have little or no effect on water quality. Third, and most concerning, it establishes a baseline of control over farming activities which could preempt community limit-setting discussions. Community values and objectives have not been set, and the scientific and economic information needed to inform community discussions has not been developed.

Yet Southlanders are facing potentially drastic measures that would forever change rural people’s ability to farm their land profitability and sustainably. The knock-on affects to local businesses and urban centres cannot be underestimated. With all this at stake, Federated Farmers will be devoting its Southland policy resources, assisted by the newly formed Water Policy Team, over the next few months to try and get workable provisions in the draft plan for farmers. We don’t want farmers to go through expensive and time consuming consenting processes and/or invest significant funds changing farm systems or infrastructure before the community limit-setting process.

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October 2015 National Farming Review

REGIONAL POLICY

Historic heritage rules — protecting our past By Lisa Harper Regional policy advisor

ably has to be done within certain guidelines, if that building is listed as an historic site. Some farming activities can also disturb archaeological sites, so cultivation or vegetation clearance in the vicinity of recorded locations may be restricted. The process can be unsettling for landowners worried about the potential cost and delay associated with getting an archaeologist or other expert to assess a site, as well as having third parties like councils, iwi or Heritage New Zealand interested in their property. Most people don’t know what to do if they accidentally discover something special, but some councils have discovery protocols, to give landowners more confidence and control over the process. Councils can also use planning mechanisms such as heritage credits, transferable development rights and help with work like fencing or building maintenance. This recognises and relieves the burden of restricted land use placed on landowners with heritage sites. If you have an historic site on your property or find something that you think might be important, check with the council for advice on what rules and assistance may apply.

Buildings, certain trees and archaeological areas carry the stories of our past. If they are formally listed as historic sites, rules are often in place to protect them. People with one of these sites on their land need to know what the rules are and where to get help if they need it. A place can qualify as an historic site because of its architectural qualities, history or significance to Maori, amongst other things. Both councils and Heritage New Zealand (previously called the Historic Places Trust) have a role in protecting them. Heritage New Zealand’s job involves assessing and keeping records of historic places, conservation work and recommending to councils how sites should be managed. Heritage sites are typically mapped in district plans and have corresponding rules to protect them. Traditionally, heritage sites have been discrete, well-defined buildings or notable trees. However, many councils are identifying larger areas of land as heritage areas, frequently on rural land. Maintaining or altering your woolshed, homestead or other farm building prob-

HERITAGE RULES: Traditionally heritage sites have been discrete well defined buildings like the above; but many councils are now identifying larger areas of land as heritage areas, especially rural land.

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DAIRY

Feds rally to ease sharemilking strain By Federated Farmers staff Federated Farmers and DairyNZ have launched a free facilitation service to assist variable order sharemilkers (VOSM) during the current season of low milk price. The service was established after results from a recent Federated Farmers survey highlighted a high level of stress among variable order sharemilkers — with over a quarter of respondents concerned about their business model. More than 75 per cent of survey respondents have reduced their herd size, 47 per cent laid off staff while 8 per cent have changed their business model — converting from a sharemilking agreement to either a contract milking or farm manager one. The discussions and solutions are going to be different for herd owning sharemilkers as opposed to VOSM. Federated Farmers Sharemilkers’ Employers Section chair Tony Wilding said, “It’s encouraging to see how sharemilkers and farm owners who use sharemilkers are pulling together to keep their business viable.” The survey also found the majority of farm owners are taking action to support their sharemilkers in ways they wouldn’t usually be doing in an effort to keep the sharemilking business sustainable. Two-thirds (67 per cent) of farm owners

CONFIDENCE LOW: Sharemilkers are under pressure dealing with the recent industry downturn.

are paying for feed, 22 per cent are covering electricity costs and over half are paying for professional advice to their sharemilker. “It’s great to see farm owners being proactive and exploring different options to help their sharemilkers through this current downturn and

we’re encouraging those who haven’t already to ask their sharemilkers about their financial position and get the conversation going,” Mr Wilding said. Federated Farmers has established a network of dairy farmers around the country who are available to help

facilitate conversations between sharemilkers and farm owners regarding their business model and the contracts in place between them. “We’ve been working with banks, DairyNZ and others to provide all the support we can over the past few months. We want to do whatever we can to help them and ease some of the pressure. “This facilitation service leverages our greatest strength — a nationwide network of experienced farmers,” he said. Federated Farmers’ facilitators were experienced dairy farmer members, who were identified by their provincial organisation as they understood the demands and pressures of sharemilking. “It’s targeted primarily at those sharemilkers who are not confident or comfortable in starting this conversation and are probably at the entry point of VOSM, with no real asset backing to borrow or those recently settled HOSM that have had a big hit on their equity with a drop in stock values. They also, or who believe the discussion would benefit from a third party facilitation,” said Mr Wilding. Sharemilkers can access the free service by contacting Federated Farmers on 0800 327 646. There is also a range of other information and support tools available to sharemilkers from the Federated Farmers and DairyNZ websites.

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October 2015 National Farming Review

COUNTERPOINT

Health and safety laws have to be ‘fit for purpose’ Credibility is being lost in health and safety regulations in New Zealand with wellintended policies that are difficult to justify. Health and safety policies, like anything else, should be evidence based. Twenty people died on New Zealand farms in 2014 and 120 between 2008 and 2014. The International Labour Organisation states that agriculture is one of the most hazardous sectors in both developing and developed countries. For various reasons from mould on corn to raging livestock and mishandled machinery, agriculture accounts for a higher number of deaths per working population than other occupations. The ILO calculates that agriculture accounted for 3 per cent of global employment in 2013. A report released on September 9 indicates that 1.3 billion people depend on agriculture for their livelihoods, including a ‘large numbers of casual and temporary workers … and unpaid family members’. With such a varied workforce in such a varied range of occupations, it is hardly surprising that there are hazards, risks and accidents, as well as unwanted deaths. Food production, does, however, support 100 per cent of people being alive — everybody eats. Making changes on farm will increase the costs of that food production, eroding profits and reducing the economic viability of the farmers. The alternative is increased food prices. Neither scenario is ideal, but death and injury are worse. To ensure that health and safety regulations actually do what is required requires data. University of Waikato’s Professor Frank Scrimgeour has been working with a group of farmers and other interested people in order to identify the problems. “Generalities end up in vacuous advice,” he says. “We need to be certain about what accidents have occurred and what caused them. It then makes sense to focus on where the biggest gains can be made.” Professor Scrimgeour suggests that more research is required to identify what changes or what interventions can make a positive difference. “This is a crucial question. Many potential interventions just infuriate employees and managers and don’t help at all.” Reducing accidents on farm will take a combination of education, design, and regulation. Professor Scrimgeour’s research has shown this has always been the case, but the current approach is focussed on only one aspect. “A multi-faceted approach has been recognised as the path forward for some time, but much of the recent conversation has focussed on regulation without adequately connecting it to education and design. When we lean too much on one element we end up with practices that are not fit-for-purpose.” In particular he points out that while health and safety committees can be useful in large manufacturing enterprises, they rarely make sense in small agricultural businesses. In the USA, farms with 10 or fewer workers are not subject to Occupational Safety and Health Administration regulations. In the UK, the Management of Health and Safety at Work Regulations 1999 require that ‘all employers or the selfemployed assess their own risk, and the risk to anyone working for them regarding their working environment’. The law focuses on ‘all reasonably practicable steps to avoid accidents in the workplace’ and states that ‘this does not mean that you are required to completely eliminate all health and safety risks on your farm, but rather that you take all steps that are reasonably practical to ensure you and your staff work in a safe environment’. It emphasises sensible risk management and introducing

controls that are proportionate to the risks. New Zealand appears to be at the extreme of intervention, and questions must be asked about the compliance costs and likely effectiveness of the

regulations. “Sustained improvement in health and safety outcomes are not achieved by brief periods of external control associated with intense monitoring,” says Professor Scrimgeour. “New Zealand solutions for health and

safety must be pilot tested and adapted to progress and endure.” Through testing and adaptation we can create a system that leads the world; it’s a global desire that people come home safely after work.

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VIR_0587_NFR

By Jacqueline Rowarth Professor of Agribusiness, The University of Waikato

ACVM No.s A9402, A9984 1. Data on file.

Shaping the future of animal health

National Farming Review

October 2015

www.fedfarm.org.nz Ph 0800 327 646

OPINION

Getting value out of foreign investment By Dr William Rolleston Foreign ownership has been a hot topic recently. After 14 long months the Government finally turned down the sale of Lochinver Station near Taupo to Chinese company Shanghai Pengxin. Shanghai Pengxin bought Crafar Farms and also own a majority shareholding in Synlait Farms — the largest supplier of milk to Synlait Dairy (also part Chinese owned). Under New Zealand law the sale of sensitive land, which includes all rural land larger than five hectares, is subject to the approval of the Overseas Investment Office (OIO). The OIO must assess the sale on multiple criteria and approve the sale if the benefits are “visible and identifiable”. The two overseeing ministers — Paula Bennett and Louise Upston — have the final say and can use their discretion. Following the Crafar Farm sale, challenged in the court by a New Zealand group led by Sir Michael Fay, the Government tightened criteria around farmland sales. A trigger point of four times the average farm size meant there also needed to be economic benefit to New Zealand. The court also instructed the “visible and identifiable” benefit must be a benefit over and above what a New Zealand

MEETING CRITERIA: Federated Farmers welcomes foreign investment but is cautious of land aggregation (buying of multiple farms) and vertical integration (the purchase of farms and processing facilities).

purchaser would do. Lochinver is a substantial property — 10 times the trigger level to require “economic benefit”. The OIO advised the sale should proceed but the decision was “finely balanced”. The ministers disagreed and turned down the application.

Foreign ownership has been keenly discussed by Federated Farmers for some time. On the one hand there are those who consider it a property right to be able to sell to the highest bidder wherever they may be in the world. On the other hand there are some who worry that sale of land to foreign interests is akin to selling the family silver. This I am sure reflects the range of public views. Federated Farmers welcomes foreign investment, however we are cautious of land aggregation (buying of multiple farms) and of vertical integration (the purchase of farms and the processing facilities). Such vertical integration gives no opportunity for the market, from a New Zealand perspective, to intervene. As land aggregation to any single entity increases we consider the benefit test should increase. Sure Lochinver, it is purported, would have netted $88 million, $20m over and above what a New Zealander was prepared to pay, and this would have been recycled back into the economy, but we must also remember that it is a one-off fee and we have traded away an asset not created income. With 35 farms already in their portfolio and Lochinver adding the equivalent of about 40 farms, Federated Farmers would have liked to have seen a significant economic benefit associated with the sale. Perhaps Shanghai Pengxin could have brought to New Zealand some significant technology or provided

other New Zealand producers a pathway to market through collaboration or joint venture. This brings us to the announcement that Silver Fern Farms (SFF) is planning to go into joint venture with Shanghai Maling — a Bright Foods subsidiary and the largest meat processor in China. The joint venture would own the assets and the business which is now Silver Fern Farms, leaving the co-operative as a holding company. The deal with Shanghai Maling provides significant access to the Chinese market. According to public statements processing will continue in New Zealand. While the deal is a 50:50 joint venture, the Chinese have a casting vote over the hiring and firing of the chief executive and over the joint venture’s strategy — the two most important functions of any board. Meat industry reform has languished for many years and this deal is a significant move. Alliance, it seems, have dragged their feet on amalgamation of the two cooperatives, considering themselves to have the stronger balance sheet and greater survivability. However, others questioned their strategic strength with processing plants in a country which is increasingly turning to dairy and little in the way of brand development. They’ve been left flatfooted by this move and time will tell if it’s their eventual undoing or an opportunity to attract greater supply. The SFF deal does not trigger land aggregation nor vertical integration concerns for Federated Farmers. Like the Lochinver sale, there is a oneoff sale aspect to this deal, but it also promises new opportunities and benefits at a cost. While SFF is a large player in the meat industry, farmers have the option to supply elsewhere if they are not satisfied with the outcome. This is an important protection. Supplier shareholders, like me, have a big decision ahead and will need to weigh up the deal very carefully. This is not just about the company, but also the future structure of our industry. We are not a country of savers and have thin capital markets to show for it. Sheep and beef farmers, for various reasons, have not been enthusiastic investors. We need foreign investment in New Zealand to realise the opportunities we have. We also need to ensure that investment does not unduly restrict our choices in the future.

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October 2015 National Farming Review

ECONOMY

Cautious optimism as dairy prices recover The fortunes of New Zealand’s dairy farmers have taken another dramatic shift. The steep fall in world dairy prices through to early August has been followed by an equally rapid rebound in recent weeks. While prices are still at the low end of their historic ranges, a farmgate milk price with a five in front of it now looks plausible for this season, though far from certain. While the bounce has come as a welcome relief, we’re taking a cautious view of where dairy prices head from here. The fall in prices was widely recognised as a product of slowing demand along with a global supply glut, and it’s not obvious that much has fundamentally changed with this story. The rebound in prices appears to have been sparked by Fonterra’s announcement that it expects its milk collection to be down for this season — initially a 2% shortfall, now estimated to be 5% or more. As we’ve noted in the past, world prices are very sensitive even to small unanticipated changes in supply. Often, buyers of dairy ingredients don’t have a lot of flexibility in their requirements over the short term, and are willing to bid up in order to guarantee supply. But even if Fonterra’s forecast proves to be accurate, does a 5% shortfall in New Zealand’s milk production justify a nearly 50% rise in world prices? Probably not. Which suggests that one of the last two legs in dairy prices — the plunge in MarchJuly, or the rebound since then — was overcooked. We just can’t be sure which one. We should bear in mind that New Zealand’s position as the ‘swing factor’ in the international dairy market is not a strong as it once was. Milk production in the Northern Hemisphere has grown substantially in recent years, in part incentivised by years of higher prices. And with domestic consumption of dairy products more or less flat in the Western world, all of this growth has been destined for the export market. In addition, the removal of the EU’s production quota system has provided a fresh disruption. Milk production in some regions such as Ireland, the UK and the Netherlands is now growing at double-digit rates: as the relatively lower-cost producers within Europe, they are looking to claim the greater market share that the quota system prevented them from doing until now. The flipside of this is that the highercost producers within Europe will eventually be forced to scale back, but that hasn’t happened yet. The net effect has been a renewed surge in European milk production in since April. Meanwhile, global demand for dairy products has shown no meaningful signs of improvement. China’s economy remains opaque in many respects, but there are strong indications that the pace of growth is slowing sharply (although consumers seem to be in relatively good form). And Russia’s ban on food imports from many Western nations has been officially extended until August 2016 (and in some cases, such as beef, has effectively been declared permanent). So we see the outlook for milk prices as finely balanced between two plausible scenarios. In one scenario, buyers could scramble to secure supply as they have done in the past, pushing prices even higher in short order. But in another scenario, Fonterra’s forecast of a production slowdown may not pan out, low feed costs continue to encourage US milk production, and

European countries continue to produce at a loss in order to gain market share. In this case, world dairy prices could capitulate again. Finally, there’s the growing pros-

pect of El Nin ˜ o. We’re not weather forecasters, and even the professionals are uncertain as to how significant the impact will be for New Zealand this summer.

But another drought here could push world dairy prices sharply higher, though to the detriment of those regions that miss out on rainfall or don’t have access to irrigation.

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VIR_0688_NFR

By Michael Gordon Westpac senior economist

ACVM No.s A9402, A9984 1. Data on file.

Shaping the future of animal health

National Farming Review

October 2015

www.fedfarm.org.nz Ph 0800 327 646

HEALTH & SAFETY

Protect yourself from workplace risks Bronwyn Muir On Farm Safety As April 2016 closes in we should all be preparing our farm business models, educating ourselves and staff on workplace safety. Throughout the rural sector each individual (from governance to the casual worker), business, organisation, association and industry within our industry will be challenged to ensure we have a health and safety system that is compliant but more importantly is practical and workable. Can we maintain long-term, ongoing compliance without the apparent myriad of paperwork that can break the time bank? There is also fear of the possibility of ‘missing’ that critical compliance measure that could leave the business exposed to undesired risk should an accident occur. The newly appointed legal obligation to manage risks within the farm workplace for all contractors and staff is a worry for many. When the new legislation comes into effect, the application of legal duties as to the principal person in charge will now also be expanded to include any person who holds a governance position in a business such as a partner, trustee or director. For most farm businesses that will mean husbands and wives, the family, as well as farm owners. Governance and boards will need to seek confirmation that their farm systems are being suitably managed in this health and safety space. More often we find managers and staff have not had clear support and guidance from the business owners as to expectations regarding rules, responsibilities, liabilities, reporting and rarely get comprehensive feedback. Often governance lacks the required knowledge to develop the policy. Being deemed “competent” and being able to assess staff competency as required under the new legislation, is also proving a challenge as we are working in a predominantly self-taught industry. Does that mean we all have to be certified and in what? Our core business model is an on-farm focus with the farm owners and their teams taking the time to listen, assist,

RISK REDUCTION: There is fear the possibility of ‘missing’ that critical compliance measure could leave the farm business exposed to undesired risk should an accident occur.

There is no fast-track option and it’s not a one-off purchase and shelve process. It takes time to get these systems right. Don’t take shortcuts and expect a few signs and some templates to suffice. educate and counsel. We have comprehensive and specialised rural, Australasian standardised audits. They establish not only the compliance status, but the start of the business action plan and an enormous amount of education is part of every farm visit. Our paper-based and online systems mirror the client needs for not only their farm activity but also that of their service providers — shearers, fencers,

agricultural air provider, bulk spreader, vet etc. What we are seeing is if there is a system in place, often it is an out-of-date generic system gathering dust, written by someone not suitably qualified with no management understanding as to application. Our advice is be careful as to the offthe shelf ‘quick fix’ options being pushed out there at your expense. There is no fast-track option and it’s

not a one-off purchase and shelve process. It takes time to get these systems right. Don’t take shortcuts and expect a few signs and some templates to suffice. Our industry needs leadership to develop rural sector standards starting with what practical good practise looks like, consulting with governing associations and codes, and then regulation. The regulator expects our industry to take the lead. There is already a large number of governing parameters that we must adhere to and there is valuable material with safety management tips within these codes, acts and guidelines already established. Take time to analyse your type of business, what’s relevant and required, and make sure your health and safety requirements are purpose-made for your farming business.

Ph 0800 327 646 www.fedfarm.org.nz

DAIRY

Contract milking an alternative option

INDUSTRY GROUPS

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VIR_0604_NFR_30X6

Variable order sharemilkers are crossing over to a contract milking system at this early part of the season. That is what our recent survey and talking with dairy farmers on how the low milk price is impacting suggests. Many will revert to the sharemilking arrangement when conditions improve as they believe in the sharemilking system in the long run. For those who have never used a contract milker I thought it would be useful if I set out what it entails. The variable order sharemilker and the contract milker may have similar responsibilities. The first is covered by the Sharemilking Agreements Order 2011 and the Sharemilking Agreements Act 1937, which gives a level of protection for the sharemilker. The contract milker sits under Commercial Law and carries more risk. A contract milker is paid a fee calculated on an agreed price based on the amount of milk produced, expressed as the number of cents per kilogramme of milk produced. They work as an independent contractor. This independence is the same as that of the sharemilker and is critical to this type of business arrangement. Not allowing the contract milker to work independently has consequences for the farm owner, because it shifts the relationship to one of employer/employee, which means the farm owner will then find themselves responsible for such things as holiday pay and sick leave. As in the sharemilking arrangement, the contract milker works to implement the farm owner’s farm policy. They are responsible for engaging staff and running the farm. They will also be liable for agreed costs (including ACC), which should be made clear during the discussions when setting up the contract. Regular reporting on such things as feed on hand and the health of cows will help the farm owner stay in touch with how the farm is running. Those farmers who chose this option to help their sharemilker, by shifting the business arrangement over to a contract milking one, will continue their business relationship with the person they picked to run their farm this season. Little should change in the way the farm is run except for the way in which the profit from the business is split. The farm owner now carries all the risk/benefits of milk price volatility while remaining a ‘hands-off’ farmer and the now contract milker continues on as before but has more certainty of cash flow without the volatility risks/ benefits. This change of business arrangement will not suit everyone and should only be done after full consultation with professionals and the other party. Yes, Federated Farmers does have an up to date contract for contract milkers, but this article is not about selling a product. We want farmers to find the best option that suits their business and this is just one of them. Having good information helps find solutions.

October 2015 National Farming Review

Restricted Veterinary Medicine e. Available only under Veterinarry Authorisation. ACVM No: A6422.

Shaping the future of animal health

National Farming Review

October 2015

INDUSTRY GROUPS

www.fedfarm.org.nz Ph 0800 327 646

DAIRY

Dairy awards has makeover By Ann Thompson Dairy policy advisor Does entering the New Zealand Dairy Industry Awards (NZDIA) during this down time in the industry make sense? You bet it does, for both the contestants and their farm owners. Most of those who are eligible to enter the Share Farmer of the Year, Dairy Manager of the Year and Dairy Trainee of the Year competitions will have never farmed through these tight times before. These awards are one way contestants can develop financial strategies and farm policies to better cope with the economic climate. It will also position them well for the future. This competition helps contestants focus on what they do and what they can do better. It also provides the opportunity to prove they really are good farmers, making the best of what they’ve got. The events expose contestants to rural professionals, sponsors, judges and other farmers in the competition. All give valuable feedback which helps fine tune their farming systems. Entering these competitions is not just about winning. Some entrants have entered multiple times and enjoy the opportunity to test new systems learnt during the event. They fine tune their businesses, and this allows the latest contestants to gain even more from the competition. Experience and adapting to circumstances is valued and the dairy industry is well known for encouraging young people to travel across the country to new jobs with new challenges. The farm owners win because they have contestants on their farms who are keen to make their farming business a better one. The 2016 NZDIA competition will follow a new format. Three categories remain but they are split differently, based on age, experience and level of responsibility. The Share Farmer of the Year (SFOTY) is the top level, open to those dairy farmers who are self employed and responsible for all aspects of the business. This category now includes sharemilkers, contract milkers, equity partners, managers and lessees, with up to 50 per cent equity in the business. The Dairy Manager of the Year (DMOTY) is open to all salaried

AWARDS RELIEF: Dairy farmers can lift spirits by entering for the 2016 New Zealand Dairy Industry Awards (NZDIA) where they can showcase their talents and farms and exchange ideas.

This competition helps contestants focus on what they do and what they can do better. It also provides the opportunity to prove they really are good farmers, making the best of what they’ve got. workers on the dairy farm who have the responsibility for carrying out farm policies and plans. These include farm managers, herd managers, 2ICs, farm assistants and production assistants. Arguably the greatest change has been made at entry-level of the

competition, the Dairy Trainee of the Year (DTOTY). This is now truly aimed at young, new dairy industry entrants, with the age restriction falling between 18 and 25 years, experience in the industry restricted to just three years and limiting the qualifications an entrant

can hold to NZQA Level 4 or below. Those with more experience or older will be able to enter the DMOTY category. These changes have been made to encourage progression through the dairy industry, to allow the youngsters to shine, to push those in the middle to perform and those with full responsibility to compete against their peers. Federated Farmers is just one of the family of sponsors and we offer the Federated Farmers’ Leadership Merit Award. ■ Entries to the 2016 NZDIA competition open from October 20. For more information and to enter the awards go to www.dairyindustryawards.co.nz.

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October 2015 National Farming Review

WEATHER

Senor El Nino an unwelcome arrival Recently, the atmosphere and ocean have been working hard together, in a somewhat vicious circle, to continue warming the seas and strengthening the event. In other words, this El Nino is locked in, and is likely to persist through into the first quarter of 2016.

By Georgina Griffiths MetService meteorologist Since our last update in The National Farming Review, El Nino conditions have reached very strong levels in the central Pacific Ocean. The pool of abnormally warm seas centred on the equator now extends right across the Pacific Ocean, from South America to Vanuatu. Sea temperatures in August across the central Pacific exceeded 2 degrees above normal. It is the strongest El Nino since 1997/98 by all indicators. You may hear mentioned that the 2015 El Nino event has equalled the 1997/98 event. This refers to the fact August conditions were comparable between both events. But the 2015 version has not yet reached the peak seen in 1998 — it is, however, intensifying a bit earlier in the year. Recently, the atmosphere and ocean have been working hard together, in a somewhat vicious circle, to continue warming the seas and strengthening the event. In other words, this El Nino is locked in, and is likely to persist through into the first quarter of 2016. A maturing of the El Nino is expected in the coming few months. The latest forecasts predict this El Nino will strengthen further between now and Christmas, but at a more modest pace than recently seen. It is expected that this event will peak around December and then rapidly ease during autumn 2016. Importantly, it is by no means certain it will reach the ‘super El Nino’ levels seen in 1997/98 and 1982/83. During those events, seas approached 3C above normal in the central Pacific, and exceeded that in the eastern Pacific. Even if it does, there is no guarantee that we will see ‘super’ (extra strong) impacts here in New Zealand. It is useful to note that the effects in New Zealand of the 1982/83 and 1997/98 El Nino events differed greatly over the summer period . The summer of 1997/98 was strongly anticyclonic, with much higher pressures over all of New Zealand, and frequent west to northwest winds over the country. In comparison, the summer of 1982/83 was stormy, with low pressures and frequent southwest winds over New Zealand. Not surprisingly, summer 1997/98 was unusually hot and dry, while summer 1982/83 was unseasonably cold. The detailed monthly forecast can be found at www.metservice.com/rural/

monthly-outlook. This is a good place to find out which weather patterns will be important in the short term. The extended easterly rain event at the end of September, which produced significant rainfall for the drier eastern regions of both islands, certainly highlights the fact that weather will trump climate any day.

But longer term, El Nino remains our strongest influence at present. As a first guide for longer-term planning, remember that El Nino conditions … • Roughly double the odds of a cold spring for all regions. • Increase the odds of a dry spring for the western North Island and northern South Island.

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• Increase the odds of a dry summer for the north and east of both islands. There is no guarantee that the El Nino of 2015/2016 will play out along typical lines. However, so far, impacts throughout New Zealand are doing all the ‘right’ things. Namely: • Sea temperatures around the New Zealand coast are running cooler than normal (especially to the east of the country). • Air temperatures for the back half of winter, and also for September, were below average for most regions. • Southerly air streams were frequent during the back half of winter and also September. • Soil temperatures were well down compared to normal in August and September for many regions, but most markedly in the southeast South Island. MetService will continue to monitor this El Nino and provide regular commentary to farmers through the monthly Rural Outlook, and our social media channels (@MetService on twitter and MetService New Zealand on Facebook). We’re happy to answer questions you have on how this El Nino is tracking.

National Farming Review

October 2015

INDUSTRY GROUPS

www.fedfarm.org.nz Ph 0800 327 646

ARABLE

Lyttelton inspection reassuring

PORT CALL

By Philippa Rawlinson Arable industry advisor

PORT VISIT: Federated Farmers was invited by MPI to visit Lyttelton Port in Canterbury to view their biosecurity measures around the importation of livestock feed.

INDUSTRY GROUPS

Federated Farmers was recently granted access by the Ministry of Primary Industries(MPI) to visit the Port of Lyttelton to view biosecurity measures. This was a response to increasing concern around the relentless flow of imported feed by manufacturers for further processing and supply. The product that hits our shores often originates from countries where farmers still derive large percentage of their income from subsidies, which have no traceability or quality guaranteed with the product; as in New Zealand. The Federation’s Arable Industry Group(AIG) has frequently raised awareness around our biosecurity system and it’s not unjustified. We have in recent times had a number of threats to our industry. The black grass spill in 2013 in mid-Canterbury could have been catastrophic for our industry; and more recently the maize from Bulgaria that was allegedly contaminated with weed Noogoora burr. Federated Farmers welcomed MPI’s offer and took part in a ship tour and visit to a transitional facility to view biosecurity processes and practices in action, in particular the import health

standard for zea mays and grain for processing import system requirements. The group viewed maize being unloaded from a ship and onto numerous truck and trailer units. Thereafter, each truck was loaded and cleaned down with an air compressor before driven over judder bars to ensure no maize was stuck on any part of the truck. A visual inspection was then completed by an organisation representative with the truck cleared to leave the port for the transitional facility. We followed the truck to the transitional facility, where we viewed the truck units delivering maize for further processing. Each truck delivered its load and then moved clear of the maize. The vehicles were thoroughly cleaned with a high pressure hose to ensure no maize was caught in any orifice of the truck. The truck was cleared to return to the Port and begin the cycle again. What we viewed can only be described as the “gold standard” in terms of adhering to the requirements of our biosecurity system. If all operations were completed in this manner, the majority of our biosecurity concerns would be alleviated. However, it is not clear this is consistently the case, especially when movements between transitional facilities and processors are over long distances.

GOATS

Goat farming — more than just a lifestyle choice By David Burt Industry advisor - primary sector Taranaki couple Richard and Lynne Milne have been successfully farming goats in support of their dairy operation for more than 30 years. Goats can add resilience to your farm by being integrated into other livestock enterprises. Making a success of goat farming takes plenty of dedication and effort but the rewards can be significant. The Milnes’ dairy farm production has not suffered with goats grazing amongst them at a moderate level and in recent seasons, goats and bulls have enabled the business to make a profit rather than a loss. Originally goats grazed the gullies and the cows the flat land, with emphasis placed on the goats for improving the fibre quality (hence the dollar return from the goats) and on internal parasite control to reduce drenching frequency. Parasites are managed by a programme of faecal egg testing and culling. The Milnes decided to bring the kids up to a year of age onto the dairy farm and eliminate dosing in these young animals until 18 months of age. They made the valuable discovery that doing this had very little impact on the production of the dairy cows. With space available in the gully area

GOAT REWARD: The Milnes have been farming goats for more than 30 years and find it has not affected their dairy production.

they established a third source of income — dairy service bulls. The outcome has been profound, with bulls and goats providing a significant part of the farm income, while allowing capacity to harvest large amounts of surplus pasture to bring home to the dairy platform. This surplus feed comes because

bulls leave the farm early October and this frees up a huge amount of pasture for supplement. Production has exceeded 1750kg milk solids per hectare with goats grazing alongside the cows. The Milnes’ system is relatively straightforward. The most important thing to ensure is the survival of the kids, as this is where the profit is made.

So just prior to kidding, the does come out of the gully into a small paddock close to the house with good access to shelter. After a week to 10 days they move onto the dairy farm with their mothers. Does are drenched at this time. They remain there until weaning in February/ March, and with milk and cows controlling parasites, no drenching takes place. During autumn/winter the kids remain on the dairy farm or the flat on the yearling bull block while the does return to the gullies. At one year of age, as the grass growth starts to exceed demand, the young goats start their life in the gullies. The goats income stream comes primarily from their fleeces, so after 30 months the goats either enter the breeding flock or are culled. Culls averaged $51 this past autumn and the culled animal ranged from old age does to poor producing hoggets. The average fleece income is $100 per goat every 12 months except the breeding does who average $65 to $80. However, the best producers are returning $120 in 12 months and a buck that they have recently imported from Australia has shorn 9kg in 12 months valued at $20kg. The Milne farm, at Alton, South Taranaki, comprises of flat dairy land intersected by steep gullies and was deliberately purchased to suit farming both species.

Slide into Summer

Polaris makes products more accessible than ever In recognition of the more challenging economic conditions facing many New Zealand farmers, Polaris has released a range of cashflow-friendly retail finance offers to ensure farmers are still able to access essential tools of trade such as ATVs and side x sides under manageable payment arrangements. To reduce the cashflow burden on farmers, Polaris is currently offering its Ranger ETX and Sportsman 570 HD models under finance with no deposit and no repayments for six months, along with 0% interest over the full 24 month term of the finance contract. Similarly, Polaris’ Ranger 570 HD and Ranger 1000 Diesel HD models are also available under finance with no deposit and no repayments for six months, with a heavily subsidised interest rate of 4.99 per cent for the 24 month term of the contract. “For the majority of our customers, their ATV or side x side is not a discretionary

purchase — it is an essential tool of trade that plays a role in their income and livelihood,” said Polaris New Zealand country manager, Alan Collins. “As such, when economic conditions get tougher, we have a responsibility to ensure that our products remain accessible to farmers across the country so they can continue to get the job done. “Our finance programs with no deposit, deferred payments and low or zero interest rates are designed to alleviate the cashflow burdens of purchase and give customers the opportunity to pay off vehicles over a two-year period at manageable monthly repayments with little to no interest,” he said. Now the biggest selling offroad vehicle model in the New Zealand market, the Ranger 570 HD comes complete with Engine Braking System with 4-Wheel Descent Control, Electronic Power Steering, a whopping 680kg towing capacity, On-

Demand True All Wheel Drive, heavy duty features designed specifically for the New Zealand market, along with seatbelt interlock and Speed Key compatibility. Released earlier this year, the 2015 Ranger 1000 Diesel HD receives a number of upgrades over the 2014 Ranger 900 Diesel HD including being built on the Ranger XP platform with updated styling, a brand new 1028cc diesel engine, electronic Power steering, engine braking system with 4-wheel descent control, a massive 110amp alternator and a new ROPS cab frame designed for the enormous range of Polaris Lock & Ride Pro-Fit accessories such as a full cab system. It also has a class-leading 907k towing capacity, 680kg payload capacity and 454kg capacity rear dump box. Polaris is a recognised leader in the powersports industry with a market capitalisation of $10.5 billion. Polaris designs, engineers,

manufactures and markets innovative, high quality off-road vehicles (ORVs), including all-terrain vehicles (ATVs) and the Polaris Ranger ® side-by-side vehicles, snowmobiles, motorcycles and on-road electric/hybrid powered vehicles. Polaris continues to innovate at a rate of knots, whether that be creating new market segments such as ACE, rolling out a range of Indian motorcycles just 27 months after purchasing a company which had been dormant for decades, developing a range of 15 models with ROPS that no other brand can match or innovating the world’s largest range of accessories to bolt on and off its products in seconds. Polaris Industries Inc. trades on the New York Stock Exchange under the symbol PII, and the company is included in the S&P Mid-Cap 400 stock price index. ■ For more information or to locate your nearest dealer, please visit www.polaris.co.nz

RANGER 570 H.D. FINANCE OFFER ADJUSTABLE STEERING COLUMN WITH MORE LEG ROOM

INDUSTRY LEADING PRO- FIT CAB DESIGN

DUMP BOX CAPACITY - 454KG

SEAT BELT INTERLOCK AND OPTION SPEED KEY ROLL OVER PROTECTION STRUCTURE

INDUSTRY LEADING RANGE OF ACCESSORIES

ELECTRONIC POWER STEERING

MORE CAB STORAGE WITH UNDERSEAT STORAGE BIN

IMPROVED HEADLIGHTS 34.1L FUEL CAPACITY

680KG TOWING CAPACITY

HEAVY DUTY “HD” FEATURES 1. GREASABLE BALL JOINTS 2. DRIVESHAFT SPLINE SEALING 3. HD SWAY BAR

MORE ENGINE POWER 567CC - 44HP UNLOCKING REAR DIFF ON DEMAND TRUE ALL-WHEEL-DRIVE (AWD)

4. GREASE FIITINGS MACPHERSON STRUT FRONT (22.9CM TRAVEL) AND INDEPENDENT REAR (25.4CM TRAVEL) SUSPENSION

ENGINE BRAKING SYSTEM & 4 WHEEL DESCENT CONTROL (4WDC)

0%P.A. 1/3

OVER 24 MONTHS

UPFRONT

1/3

IN 12 MONTHS

1/3

IN 24 MONTHS

Subject to credit approval, fees, terms and conditions apply. Based on a 24 month Hire Purchase Contract. To approved Registered GST No Holders for business purposes only on applications for Polaris Ranger 570 HD models. Offer expires 31/12/2015. Polaris Finance is a program operated by De Lage Landen Ltd Company No: 135515.

0800 440 290 | www.polaris.co.nz |

/PolarisNZ

Slide into Summer

FREE “DUMMY”

collar, if required. With all SportDOG orders Gear the way you’d design it.

Dog Training products

KEEP YOUR WORKING

DOGS ON THE JOB Pondco has found a new and innovative use for the AquaFlex Pond Liner it installs – on the floors of herd shelters. Hamish Forbes of Pondco says the company has recently provided and installed linings in a new Redpath dairy shelter building, creating a durable surface to keep the floors dry and well drained. AquaFlex is more commonly used to line effluent and frost ponds but Hamish says the qualities which make it ideal for use in those environments mean it is also ideal to line the floors of animal shelters. The liner can be installed in new or existing shelters and is laid in between two “underlays” with bark spread on top. It is quick to install with even the largest shelters lined within a day. The end result is a drier, cleaner environment for cows in which to shelter from wind and rain, or even the hot summer sun. It is able to withstand the weight of animals and of machinery used in the shelters. “AquaFlex fills a gap in the New Zealand market not currently met by plastic or rubber liners. It has more than double the strength of other compound liners and double the punch resistance but is around half the weight so is much easier to install,” says Hamish. Every seam is double welded, recorded and air tested for water tightness before the liner is installed. “The product is a co-extruded membrane which provides high elongation tear resistance and bursting strength. Its flexibility means it conforms to challenging angles and terrain without stress cracking problems often seen in high density membranes.” The liner has a black carbon content of two percent which provides UV and harsh weather protection and is made from virgin resins.

Up to 6 rechargeable waterproof collar units & remotes * Model SD-1825 -1.6 Kms range (1 mile) * Model SD-1225 -1.2 Kms range * Model SD-825 - 800 Metre range * All with Tone & Vibration options * 24 levels of correction - 3 year warranty

GREAT VALUE SD-1825 with 1 collar...$695.00 SD-825 with 1 collar.....$495.00

• Anti-bark training collars • Containment systems

PATENT PENDING

Pondco has the New Zealand licence for AquaFlex which is supplied by the world’s largest lining installation company, Colorado Lining International, and the Pondco team has access to that company’s expertise if required.

SD-1225 with 1 collar.........$595.00 Extra Collars $375.00 - PRICES INCLUDE GST

Sales@innotek.co.nz For a free brochure call

0800 872 546

www.innotek.co.nz or ph 0274 935 444

A D E

•

Made from aluminium and tanalised ply, expertly ertly engineered for easy manoeuvring with large loads. (4 times standard wheel barrow capacity).

•

Tool-less conversion to a ride-on mower trailer ler (optional).

See Bernie’s \a^^_Y a[g

•

N E W

Get more done,, in less tiime,, wiith h les ss efffort. Weighs just 30kg, but can eas sily ily carry 250k kg. Berniie’’s Barrow is a joy y to use wiith h two large wh heells th hat rolll Va]Tfd a`W `_ e_^V ba[ [d^V]X

E A L A

Nelson Home and Garden Show Saxton Stadium 9th - 11th October

Marlborough A & P Show 6th & 7th November.

Canterbury A & P Show Home & Garden Courtyard 11th - 13th November.

Equidays 2015, Mystery Creek

Marlborough Garden Fete 8th November.

Cross Hills Gardens Country Fair Kimbolton November 21st.

Site F1, Cnr F Street & K Road 16th - 18th October.

To ORDER, _^ [_ c`W _Z[ e_^V U_ [_g www.berniesbarrow.co.nz or, Phone 04 566-2361

Slide into Summer PREPARE FOR ANOTHER HOT SUMMER – BUY NOW AND SAVE $$$ STERNS QUALITY POOLS

SUPER CLEARANCE SALE OF EXISTING STOCK

SOUTH SEAS POOL PACKAGE 4.9m x 3.8m x 1.2m 7.4m x 3.8m x 1.2m 8.2m x 4.5m x 1.2m

was $5,100 was $6,200 was $6,900

Now $3,750 Now $4,990 Now $5,490

Other size pools available starting from $4,700. Deep end models also available. All Sterns pools suitable for in ground, above ground and partial in ground installation

Pool Package includes:

Quality Waterco Sand-ﬁlter, Pump, Vacuum, Leaf Scoop, Skimmer Box & Eyeball, Test Kit

Pool Land, based in Christchurch, have been supplying and installing pools and pool products nationwide for over 20 years. They sell a wide range of pools and pool accessories including covers, rollers, heat pumps, and auto cleaners along with replacement pool liners, suitable for Para, Stern’s, and other kitset swimming pools. Numerous pool accessories are available and can be viewed on the web site www.poolland.co.nz Pool Land supply Stern’s Swimming Pools, including the Bahamas and Coral Reef range (deep end) both of which are suitable for salt water. These are high quality pools which can be assembled by the home handyman and are built to last. All Sterns pools are suitable for both above and in-ground installation and most pools have a braceless construction which if installed above ground usually don’t require fencing. Pool packages come complete with a high quality pump, sand ﬁlter, vacuum cleaning equipment, skimmer box and eye ball return. Pool Land are able to supply a wide range of pool sizes and also deep end model pools. Pool Land is a direct marketer ensuring very competitive pricing of all products to their customers. Enquire today for more information – ph: (03) 365 6414 or email: pool-land@xtra.co.nz

SALT CAPABLE POOL PACKAGES

BAHAMA POOL PACKAGE 11.7m x 5.8m x 1.37m 8.2m x 4.5m x 1.37-1.9m

was $18,000 was $9,300

Other Sizes Available In All Pools (details available on request) All Pools suitable for above or inground installation.

Now $16,200 Now $8,370

High Quality Self Clean Chlorinators RRP $1,699

Now Only $1,200

with all Salt Water Pool Packages sold (subject to stock availability).

Bonus Special

Phone: 03 365 6414 • www.poolland.co.nz • email: pool-land@xtra.co.nz Finance available from NO DEPOSIT (subject to approval)

• DELIVERY ARRANGED NATIONWIDE

GROWING FARMERS SINCE 1919

Taratahi is New Zealand’s largest provider of agricultural training

Lupton House Boarding Hostel for Students of Whangarei Girls’ High School Invites applications for Year 9, 10 and 11 students for 2016

Lupton House offers residents:

Taratahi offers NZQA approved qualiﬁcations that provide introductory skills through to management level programmes. Programmes are delivered using hands-on training on farms in Northland, Auckland,Waikato, Bay of Plenty,Taranaki, Hawke’s Bay, Manawatu,Wairarapa (main campus) and Southland. Farmer feedback indicates that graduates are especially valued for their focus on safe work practices.

ENQUIRE NOW! 0800 TARATAHI

www.taratahi.ac.nz I info@taratahi.ac.nz

• Learn valuable life and people skills & independence • Enjoy being part of a stable extended family that can build conﬁ dence & self esteem • Participate in a wide range of social & sporting activities • Work in a supportive & dedicated study environment • Develop close & lasting friendships • The hostel is located on grounds directly adjacent to the School. Lupton House provides homely accommodation for approximately 90 residents from Year 9 through to Year 13. Prep or homework is compulsory for 1½ hours for all year levels 4 days per week. Lupton House girls' are expected to strive for excellence in all academic, sporting and cultural aspects of School life. For more information about Whangarei Girls' High School and Lupton House please refer to the School website at www.wghs.school.nz Alternatively call or email to the Hostel Manager Debbie Skudder for further information:

Email: deb.skudder@wghs.school.co.nz

National Farming Review

October 2015

INDUSTRY

www.fedfarm.org.nz Ph 0800 327 646

APICULTURE

The importance of bee-ing aware By Philippa Rawlinson Industry advisor - bees For our nation’s beekeepers, spring marks the period for preparing bees to go about their work, pollinating our arable and horticultural crops. The importance of bees’ pollination work often goes unrecognised, but without it twothirds of the food we take for granted would almost vanish making life as we know it impossible. But as with all life, nature throws us curveballs. The humble bee has had its challenges in recent years, the introduction of Varroa destructor all but killed off our wild bee population and our managed bee population is holding its own. There are important steps we can take to avoid exposing bees to unnecessary risk as farmers look to kick-start their spray programmes. 1. Bee aware with sprays: Consider the plant growth stage. If the crop or plants in the headland are flowering, then bees will be working the crop. This means delaying spraying until dusk or before dawn. This is generally better than the day itself with less wind and consequent spray drift. The chemical may have a label claim for being “bee friendly”, but when added with other chemicals or surfactants, can become ore dangerous to bees. Consider also any residues which may remain on sprayed plants for a number of hours. If using a spraying contractor, ensure they are briefed on all your requirements, as flaunting the guidelines is a prosecutable offence. 2. Bee aware with irrigation: We all know the importance of irrigation water, but the same water which acts as a savour for our pastures and crops, is a major threat to bee life. Bees cannot survive in a cold-wet environment and will rapidly chill and die before returning to the hive. Where possible, irrigate during the evening when bees are not flying, thus reducing the risk of bee death. If hives are on your crops, ensure the irrigator cannot drift across and literally take out the hives. 3. Bee aware with hive location: Placing hives for good pollination is like selling a house — it is all about location, location, location. Ensure hives are out of the path of any irrigator. Different crops have different requirements and these need to be taken into consideration. The most important things in agriculture are “bees, bees and bees”. We have to look after them.

The importance of bees’ pollination work often goes unrecognised, but without it two-thirds of the food we take for granted would almost vanish making life as we know it impossible.

THE BEEHIVE: Placing hives for good pollination is like selling a house — it is all about location, location, location.

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National Farming Review, Monday October 5, 2015

National Directory Realpro Clamp ... real easy.

0800 200 744

Discover a new method for securing your reels and standards. The award winning realpro clamp, designed by a kiwi farmer for farmers to solve all your fencing needs.

www.taskpower.co.nz Tractor Powered Log Splitter

✓ Proven time and cost effective ✓ No more dropped damaged reels ✓ No more lost standards ✓ For two wheeler and quad bikes ✓ Also at selected Bike Shops

Call us. 0274 533 155 www.realpro.co.nz

Ground-Hog Aerator Petrol Powered Post Driver Chipper

realpro clamp

Rainer Irrigation - where the grass is always greener

Portable Log Splitter

We supply and install, service and maintain new and existing meal and molasses feed systems

SOUTHLAND’S LEADING INSTALLER Centre pivots and laterals

Electrical Switchgear

Efﬂuent systems & spreaders

RotoRainers, Electrical, Pumps, Pivots, Mainline and more...

Call in and see us at 73 Preston St, Invercargill Phone (03) 215-8558 | hecton@xtra.co.nz Visit our website www.hecton.co.nz for a full list of products

Proudly Southland owned and operated.

FLY OR LICE PROBLEM? The magic eye sheepjetter since 1989

.)0"$+' ,2!-+/),+$2! 0!* 21+$2!- # %(+ +&( ,2!+/0,+2/- ,&2$,(

Featuring ... ' <65#03C7=0 5E09C5:= 0546498 ' 19:(C6" 0:!0 )2**/ &0# E4B# ' ;6C%B0 !0=$ :3@B!DC6" !C30! ' +6?C#46906D:==8 :63 B!0# $#C063=8

MODCOM portable buildings ltd PROUDLY NEW ZEALAND OWNED & OPERATED

FREEPHONE: 0800 266 326 WEBSITE: www.modcom.co.nz EMAIL: modcom@wave.co.nz

ER0026583©

10 Robinson Street, Ashburton. P: 03 307 9049. E: rainer@ashburton.co.nz

Visit our website www.rainer.co.nz

' 1BD49:DC5:==8 :5DC?:D03 ' ,#4?06 0$$05DC?0 46 =C50 :! >0== :! A8 ' .49&:DC7=0 >CDE :== 3C& 5E09C5:=! ' 155B#:D0- 0$$05DC?0 :&&=C5:DC46

Phone 07 573 8512 | Mobile 0274 407 242 dipping@electrodip.co.nz - www.electrodip.com

NON RUSTING MULTIPLE USES Fast Easy Assembly No Blockages Minimal Sweating Full Range of Sizes: From 1,600 L (1 tonne) to 40,000 L (30 tonne)

See us at Central Districts Field Days | Site 062/63

SPACEWISE WONDERING WHAT TO DO

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... the largest independent log exporter in New Zealand ... able to buy your logs or trees ... able to provide advice and guidance on your best course of action given your unique situation. Contact: Mark Bendall 021 244 0414

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National Farming Review, Monday October 5, 2015

Best of new Country music & all-time favourite hits. Now streaming live on iHeartRadio!

WWW.iHEARTRADIO.CO.NZ

SEARCH FOR ‘COUNTRY NATION’ TO LISTEN

National Farming Review, Monday October 5, 2015

Nothing beats half price. Get up to 50% OFF selected load bars and EID readers when you purchase a 5000 series weigh scale*.

Buy one of these

XR5000 WEIGH SCALE

$3499

Get up to 50% off one of these

ID5000 WEIGH SCALE

$2499

MP600 LOADBARS

HD1010 LOADBARS H

XRS STICK READER

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Save up to $1150

Save up to $950

$1150

$950

2313TTSM01

$650

Terms and Conditions: Offers and pricing valid from 1 September – 30 November 2015. Pricing is GST inclusive, subject to change and includes delivery to the retail store. Savings amounts are based on Tru-Test RRP’s. EziWeigh5 & EziWeigh7 Weigh Scales are excluded from the up to 50% off offer.

How are you tracking? Let’s talk. 0800 263 278

National Farming Review, Monday October 5, 2015

Lower North & South Island Directory 06 835 9450 0800 835 9450 Bruce Peterson

Owner/Operator

ofﬁce@aerospread.co.nz

Dannevirke, Waipukurau, Napier Topdressing all of Hawkes Bay

0800 50 1993 www.continuous.co.nz

• Locally owned & operated throughout ALL of New Zealand we’ll get to you by road, rail, river or 4x4 John Deere… • Specialised rainwater solutions for your place – woolshed, barn, farmhouse, bach or back-country hut…. • Passionate about our products and services for almost 25 years • Call us for a yarn today

RANCHMANS

Premium Dog Rolls 2.4kg Ranchman’s Dog Rolls have been formulated to meet your dog’s daily nutritional needs, in a wholesome, meaty and convenient way.

100%

Available at leading Pet Food Supply Stores, Supermarkets, and Keinzley Agvet and Our Factory Shop.

MPI registered

New Zealand made. No refrigeration required.

Locally owned and operated Ballinger Place, Carterton | Phone 06 379 6874 • Fax 06 379 6875 | www.ranchmans.co.nz

superb

RPR TM

LEADERS IN ADVANCED MICROBIAL TECHNOLOGY FOR AGRICULTURE Quality phosphate fertiliser that wont lock up and works......for years!

0800 2 bioag | www.bioag.co.nz | info@bioag.co.nz | Steven 021 421 722

Karcher Professional Cleaning Equipment Wide Range of Cleaning Equipment

Electric / Petrol Water Blasters Hot / Cold Water Blasters

Wet & Dry Vacuum Cleaners After Sales Service

Wide range of new and used equipment available now Slurry tankers Efﬂuent mixers Cultivation discs and rippers Powerharrows and rotaspikes Grain augers and grain vacs

ENVIRONMENTAL MONITORING •

Resource Consent Management

•

Monitoring Site Design / Supply and Installation

•

Telemetry Systems

•

Soil Moisture Monitoring

•

Stream Flow Measurements

•

Weather Stations….….and more

HYDROLOGY SPECIALISTS Phone: 0800 HYDRO1 Mobile: 021 243 7741 Email: matt@hydrologic.co.nz www.hydrologic.co.nz

100% rural, 100% local. Chris Murdoch. Your 100% rural property expert. For knowledge AND experience in the rural property market, ask for Chris

Hastings McLeod Ltd Licensed under the Real Estate Agents Act REAA (2008)

Check out www.farmchief.co.nz for our current specials and available ex demo machines. or call us on 0800 327 624.

National Farming Review, Monday October 5, 2015

Upper & Central North Island Directory • PRECISION MACHINING • GENERAL ENGINEERING • CERTIFIED WELDING • CAR MODIFICATIONS

(3) (1&'/ 2 *''& *104/

& (//0 *60! $1# +6@#4 ' .//$ & -1</#/0 ' 7321</#/0 & +#4 ;2#6%/ ,%A@13 & -9/6# *96!A@2 =11$ & -1</#/0 )$>?/3A ;A1#6"/ & ;@96"/ .?3:/#! & (/#A@9@!/# .@3 & -?!A15@!/0 +/!@"3 $#15 )8%/#@/32/0 (//0 *60 .?@90/#!

8/10 REWA REWA ROAD, WHANGAREI

877 Pipiwai Road RD6, Whangarei Ph: 09 433 7105 – 027 432 6429 e: earle.tito.eng@gmail.com www.earletitoengineering.co.nz • We apply what you need, where you need it • Ravtrak advanced guidance • Proof of placement maps • Application history stored online • Experienced local operator • Options for all terrain • Six trucks available Northland wide

SPREADING The precise NORTHLAND way to grow

)2 $4) )!")

&3'11,/%30.+&*%(0-(0-1#

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Hungry chooks calves and farm animals?

Call 0800 225 333

CHICKEN MANURE FERTILISER A natural, cost-effective all-year round N.P.K. fertiliser for pasture, maize crops, market gardens and small blocks.

We can cart and spread from all fertiliser stores Call us today: Jason Williamson 027 499 2530 Ravesdown Customer Centre 0800 100 123

We supply, cart and spread. We also supply: & -4$, & ),1/% & 0/!2 & *!1+,/1,2 3..2 '#/"4!('

HILDERS NORTHLAND & UNITED LIVESTOCK Divisions of Stan Semenoff Livestock Ltd

Neil 021 724 327 or Steve 022 123 4681 Ofﬁce 09 299 6486

Ave, Whangarei - PO Box 6058, Otaika, Whangarei 0147 14Southend Te Wai Iti Place, Whangarei - PO Box 6058, Otaika, Whangarei 0147

CHICKEN MANURE FERTILISER

www.bennettfertilisers.co.nz WHANGAREI –– Head Head Ofﬁce Ofﬁce WHANGAREI Ph:0800 0800800 800585 585or or09 09430 4303801 3801 Ph: Fax:09 09438 4386374 6374 Fax: Mobile:0272 0272743 743787 787 Mobile:

PUKEKOHE #No1 in Palm Ph: 09 Cartage! 237 1207 Kernel Fax: 09 235 2605 Any Store0274 - Any979 where Mobile: 784

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NEW UPGRADED SERVICES to save you time and $$$ *Two NEW Claas Cargos Silage Loader wagons. 44 cubic meter capacity, with quick & efficient “product to the stack” makes these units very cost efficient per kg of dry matter in the stack compared with others. A NEW Kuhn Variable Chamber Square baler. The very latest square bale technology provides tighter more consistent sized bales. A moisture metre gives onsite per kilo of Dry Matter per bale readings. Choices of knife profiles for feeding out options.

HEAD OFFICE – All Enquiries Ph: 09 438 1020 or 0800 438 698 Fax: 09 438 6374 stan@semenoffgroup.co.nz Mobile: 0276 406100 Email: stan.sem@xtra.co.nz

OTHER SERVICES AVAILABLE

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Trailer repairs and spare parts - Trailequip. and Trojan agents

COMMERCIAL CO RC - DOMESTIC - CUSTOM MADE ASK FOR YOUR FREE BROCHURE >8:-!0%#-!21DDD#8C:-#!)21)3' www.prescotttrailers.co.nz

50387-v2

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* Orbital efﬂuent spreader to spread solid waste from oxidation ponds, calf sheds etc for those hard to reach places * Supply & spread pumice, fertiliser and bulk product , metal, chook manure * 2 tipping trailers * 4 trucks We offer a full range of agricultural equipment for those jobs that you don’t have the time or the equipment to deal with.

WE HAVE MAIZE FOR SALE - PLEASE PLACE ORDERS NOW TO SECURE IT If you have any questions about what your best options are pick up the phone now for your needs

Contact us for quotes, Advice or just a discussion. Neville 027 4970 315 | Daniel 027 2333 014 Tim 027 2226 940 | OFFICE 07 533 1887

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National Farming Review

October 2015

www.fedfarm.org.nz Ph 0800 327 646

GRAZING

INDUSTRY GROUPS

Are you ready for grazing?

By Sarah Crofoot Good communication is crucial to a successful grazing arrangement. This starts right from negotiation of the agreement so both parties have a complete understanding of the other’s expectations and there are no surprises. Reporting regularly allows the stock owner to have confidence that the stock will be returned in the expected condition at the end of the period. Federated Farmers industry groups have been working together along with our legal partner DLA Piper to develop a new fit-for-a-purpose grazing agreement. The agreement covers three separate

SUSTAINABLE

2025

x2 EXPORT

REVENUE

PRIMARY

types of grazing: heifer grazing, winter/seasonal grazing and dry stock grazing. Each grazing type has its own set of terms and items to be agreed on, tailored to the needs of stock owners and graziers in each circumstance. Options are provided for three different payment methods: weekly fee, liveweight gain fee, or a kilogram of dry matter fee so that the parties can select one to suit their situation. The parties discuss the feed that will be provided and how this may alter for different times of the year. There is also a clause for parties to address at the outset how a feed shortage will be handled. Some of the

RESPECT

GROWTH

Each grazing type has its own set of terms, tailored to the needs of stock owners and graziers.

weights and/or body condition scores, termination period and reporting. It is important to get your grazing agreements signed early particularly if you are planting crops or growing feed specifically for another party. Federated Farmers continues to update our contracts so they align with regulations and industry expectations, making sure farmers are getting practical agreements at an affordable price.

other items that are covered and agreed between the parties include warranties and treatments, weighing and assessment procedures, target

■ The new grazing agreement is $80.50 (GST incl.) for members and can be purchased by calling 0800 FARMIN (327 646) or visiting our online store http:/ /shop.fedfarm.org.nz/

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October 2015 National Farming Review

INSIDER

Parliament Federated Farmers is committed to ensuring that the farmers’ voice is heard by Parliament. As at September 18, a number of Bills relevant to farming were before Parliament, at various stages. For example: • Agricultural Compounds and Veterinary Medicines Amendment Bill, first reading. • Environment Canterbury (Transitional Governance Arrangements), first reading. • New Zealand Business Number Bill, Commerce Committee. • Environmental Protection Authority (Protection of the Environment) Amendment Bill, Local Government & Environment Committee. • Employment Standards Bill, Transport & Industrial Relations Committee. • Minimum Wage (Contractor Remuneration) Amendment Bill, Transport & Industrial Relations Committee • Tariff (Free Trade Agreement between New Zealand and the Republic of Korea) Amendment Bill, second reading. • Building (Earthquake Prone Buildings) Amendment Bill, second reading. • Accident Compensation (Financial Responsibility & Transparency) Amendment Bill, second reading. • Regulatory Standards Bill, second reading. • Environmental Reporting Bill, third reading. • Federated Farmers reminds members that you have an important role to play in our biosecurity system by keeping watch for anything potentially exotic or unwanted. If you suspect you have seen or found an unwanted pest or disease please call the Biosecurity hotline 0800 809 966. All calls are anonymous.

News shortcuts

■ Banks supporting farmers: In August, Federated Farmers’ banking survey showed that banks were supporting farmers through tough times and the vast majority of farmers were satisfied with their banks. So far so good. We will repeat the survey in November to ensure these positive findings remain the case.

THE OFFAL PIT SFF stalking alliance The proposed $311 million Silver Fern Farms deal has thrown the wolf amongst the lambs. The hunted becomes the hunter and lets SFF hold their foot on the throat of the New Zealand meat industry. Once the rumours started doing the rounds there would have been some very uncomfortable discussions around the board tables of meat companies. It had to be a big number. Not only does it have to pass the sniff test of valuing the business, it has to also convince xenophobic Kiwi farmers and politicians it is too good an opportunity to reject. Unluckily for SFF shareholders, farmers and politicians will be looking for reasons to shoot the gift horse and reject the deal. Hopefully, no OIA approval is needed as we’ll be waiting for years for a decision. Please don’t play politics with this one. Already there are pontifications and bluster with no understanding of the opportunities this brings, which no other ■ Employment consultations: The Government has been consulting on the annual review of the Minimum Wage and it will soon be consulting on the annual setting of ACC levies. Federated Farmers will be submitting on both consultations. ■ Submissions called by EPA: The Environmental Protection Authority is calling for submissions on the use of certain organophosphates and carbamates as veterinary medicines. These are chlorpyriphos, diazinon and carbaryl, and their use to control things like fleas and flies. Federated Farmers will be making a submission. ■ Raw milk sales: Federated Farmers is meeting with Jo Goodhew, Minister for Food Safety, to discuss regulations allowing the sale of raw milk to consumers. These regulations are being developed and our input will help ensure

VULNERABLE: SFF have virtually thrown the wolf amongst the lambs with last month’s proposed deal with Chinese investors.

meat company has fronted with. Watch the fightback, the legal challenges and the negative PR spin from “influential business and farming leaders”. Sour grapes and embarrassment — they had their chance in a capital raising process to front up with best dollar and they were found wanting. There was a chance to use farmer goodwill to change an industry that is shrinking due to forestry, milking cows and urban sprawl, and it has been only ‘safe’ milk is put up for sale. ■ Lochinver declined: The Government has declined the proposed $88 million sale of Lochinver Station to Pure 100 Farm Ltd, a subsidiary of China-based Shanghai Pengxin. Ministers decided that the additional benefits from the overseas investment in return for the 13,800 hectare property were not sufficiently substantial.

Caught naked

A country policeman catches his own son doing a dare ‘streak' down the main drag of the town. This interesting story, along with many others is recounted by Brian Styles as he creates an image of his local community in his new book Talk of the Town. This and his first two books can be

squandered by directors without the gumption to sort it. So doing little or nothing has really got them in trouble. They are now facing a competitor with a stronger balance sheet, better marketing programmes with access and plant locations. Leadership of the other main South Island company must be scrambling to come up with a plan B. South Islanders have a choice — either pony up (that’s not the supply of horse meat) with $311m or let this deal happen. Good luck SFF — it will be an interesting watch and hopefully a positive outcome and not another Harvard Business School case study about New Zealand business snatching defeat from the jaws of victory and destroying the sheep industry. Disclaimer — author is a disloyal supplier to SFF and any other meat company that pays more! ■ The Offal Pit is a contributed column and does not reflect the views or policies of Federated Farmers.

purchased singly or as sets for gifts for Christmas, birthdays and to lift the spirits of friends and loved ones. At the same time you will be lifting the spirits of the children at Make-A-Wish where all profits go. So far $3000 raised and paid — can we make it $10,000? Website special: Three book sets $75 value for just $49.75 — boxed for gift set. www.blackstumpstories.com.

Federation workshops

Farmers Advocacy, Influence & Outcomes Workshops: Level 1 — Get your feet wet, October 21 and 22. Level 2 — Shining under the spotlight, November 4 and 5. Level 3 — Advocacy influence and outcomes, October 14 and 15 in Christchurch. To find out more about our leadership courses, please visit our website or email events@fedfarm.org.

FEDS PEOPLE

Debbie Bidlake

Jon Brough

Peter Langford

Dr Fiona Thomson-Carter

Federated Farmers Senior policy advisor Auckland, Gisborne & Northland

Federated Farmers General manager - commercial

Federated Farmers West Coast provincial president

Federated Farmers General manager - policy

Jon has worked in dairy, lamb & beef, venison, horticulture, forestry, bees, seafood and aquaculture. Originally from the Hawke’s Bay, Jon has since developed his own farming and forestry operation in Poverty Bay. He graduated with a BSc Hons and later with an MBA in Strategy & Finance. Jon, who is a trained chef, has a ‘nil waste’ philosophy that focuses on developing sustainable profit from utilising all of what we grow, catch or produce. He is also passionate about creating greater returns for the primary industry around establishing greater control (or ownership) of the global value chain to market. Jon also has had many years of international experience working with retail and food service chains developing opportunities for New Zealand export food products.

Peter succeeded Federation board member Katie Milne earlier this year. A former West Coast sharemilker of the year, Peter farms near Karamea in the Buller region with wife Debbie. He previously worked in Auckland managing a Waste Care Company branch, after sales and marketing for them. Peter, his wife and four children moved south to manage and then buy the family farm. Peter is in the process of developing and increasing the size of his dairy farm. A tutor in farming and pest control with the Open Polytech, Peter trained as chairman of the West Coast Regional Committee. A former AG ITO (Primary ITO) board member, Peter is community-minded and relishing his role as a federation provincial president.

Fiona is from a Scottish highland crofting family. In previous roles, she was responsible for delivery of public health and food microbiology, associated surveillance activities, water quality, radiation and social science programmes. Fiona’s expertise is in the molecular fingerprinting of bacteria. She was also involved with the national Enteric Zoonotic Disease Research Steering Committee and represented New Zealand in international EU networks. A member of BMAC, Fiona participated in the establishment of the NZ Food Safety Science and Research Centre and contributed knowledge to various governmental initiatives including the Whey Protein Contamination Inquiry. Fiona has a B.Sc (Hons.) and Ph.D in microbiology from Aberdeen University and was Principal Clinical Scientist at the Scottish National Reference Laboratory for E. coli and Campylobacter.

Debbie joined Federated Farmers in August and comes from a Waikato dairy farming background. Her parents were Federation members. Debbie has worked as a mediator/arbitrator for the Electricity and Gas Complaints Commission and was legal advisor with the Ministry of Consumer Affairs. She also worked for the Ministry of Economic Development and Ministry of Business, Innovation and Employment, in senior policy/compliance roles working on major law reviews including recent changes to our consumer and credit laws. A big mountain biker, she studied law and arts at Waikato University and is looking forward to exploring a new legal and policy area. Debbie and her partner live in West Auckland.

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