NFR

NOVEMBER 2011

Congratulations!

NEWS ANALYSIS Road funding headaches Roads of national importance empty the coffers

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Don Brash writes...

Why farmers should give ACT their party vote

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Get set for summer

Professional advice on what you need to know about the Holidays Act P11

LOCAL POLICY Tight timeframe

Councils get years to develop policy, but submitters have days to reply P3

Real solutions

One regional council gets real on the issue of stock in waterways P8

INDUSTRY GROUPS Not boring

Farmers have their say on carbamates and organophosphates 18

Do we want it?

The NAIT scheme explained

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WHAT WE NEED

Federated Farmers gives politicians the low down of farmers concerns and how to fix them — P12-16

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

PERSPECTIVE

Inside Feature: Election’s big issues .... 12-16

Regulars:

2 News Analysis ................. 3-6 Counterpoint ........................... 7 Local Policy ....................... 8-9 Markets ................................. 10 Employment ......................... 11 Regional Spotlight ............... 17 Dairy .............................. 18-20 Meat and Fibre .................... 21 Grain and Seed ................... 22 Other industry groups 23-24 Member Benefits ........ 25-26 Insider ................................. 35 Perspective.............................

World needs food security Much-needed trade liberalisation would help solve world hunger and have major benefits for New Zealand, which means we can’t give up on the Doha talks.

My trip to Canada in early September confirmed that multilateral trade liberalisation may be the answer to solving the world’s hunger problems.

All the talk in Canada was about food security and the world’s ability BRUCE WILLS to feed one million Federated Farmers more mouths National President every week.

Free trade will ensure primary produce is grown on productive farmland in countries where it can be traded without the distortions of quotas, tariffs and export controls.

The Doha round of trade talks was kicked off in 2001 and is currently on life support. New Zealand stands to gain more than most from these talks. Although at times it was somewhat frustrating, it was important that we were at the table continuing to push for necessary trade

reforms. Doha’s real challenge is to get all 153 participants to reach a consensus agreement.

This is difficult as the world has changed so much since 2001, particularly for emerging countries like China, India and Brazil. Although little progress will happen on this front until after the United States’ elections next year, bi-lateral talks will continue in the meantime. Broader discussions and meetings with other farm leaders are always useful.

An interest has been expressed for the next Cairns group meeting to be held in New Zealand. Through Australian president Jock Laurie, I have invited the board of Australia’s National Farmer’s Federation to a joint meeting with the Federated Farmers of New Zealand board next year.

I returned to New Zealand convinced that farming is in a good spot. The world is short of food and primary production is what we are good at.

The challenge we face is to produce more food, from less land, with a smaller environmental footprint.

This won’t be achieved by capping

The challenge we face is to produce more food, from less land, with a smaller environmental footprint. cow numbers, council or government impositions on farming, or covering our hills in trees.

What I saw in Canada was a strong encouragement from government leaders to grow the wealth of farming and the economy by using science, investment and innovation. There were open and positive discussions about bio-technology and genetically modified organisms. However, discussions on climate change and carbon were noticeably absent.

Playing your part in democracy Federated Farmers provides a well-connected voice into the halls of power.

Managing Editor: Conor English Ph: 04 494 9189 cenglish@fedfarm.org.nz Editor: Felicity Wolfe Ph: 04 494 9181 fwolfe@fedfarm.org.nz Subscriptions: Miriam Bravenboer Ph: 0800 327 646 mbravenboer@fedfarm.org.nz Advertising: Leo Sherry Ph: 09 373 6086 leo.sherry@apn.co.nz ■ ISSN 1179-4526

On Anzac Day our family went to the parade in central Wellington.

Crowds have been increasing for Anzac Day, as more and younger people appreciate the sacrifices those before us made so we have CONOR ENGLISH a free and demoChief Executive cratic society. It’s often said that ‘‘if you don’t vote you can’t moan’’ about the government.

More than that, we should value the sacrifice of those we celebrate on Anzac Day and vote anyway. In my view, it is everyone’s responsibility to exercise the

right to vote, which as New Zealand citizens we are privileged to have.

Many others on the planet don’t have that opportunity.

We will shortly to go the polls to vote on two things; who will be our next Prime Minister and government, and what electoral system we wish to have.

As Voltaire said, ‘‘I may disapprove of what you say, but I will defend to the death your right to say it’’.

It’s good to have a variety of views, a contest of ideas. How you vote of course is entirely up to you.

It is hard to believe that it is three years since the last election. In that time we have had droughts and floods, some sheep farmers have met Federated Farmers’ T150 target, we have had a record dairy payout, we

have experienced the global financial crisis, the earthquakes, the Farmy Army.

We have faced many challenges and, of course, we finally won another Rugby World Cup. Federated Farmers has had many wins while providing a strong, wellconnected voice into the halls of power at regional and national level.

Our manifesto, launched this month, sets out many of our policy positions.

As an apolitical organisation, we look forward to working with whomever forms the next government.

Above all, we look forward to working with and for our rural communities. So play your democratic role by doing two things; vote and pay your Federated Farmers subscription which is only 85 cents a day, after tax deductibility is taken into account.

Ph 0800 327 646 www.fedfarm.org.nz November 2011 National Farming Review

3

NATIONAL POLICY

Timeframes can undermine consultation Federated Farmers policy advisor Rhea Dasent discusses the tight deadlines on making submissions on council.

It may not seem like big news that the Waikato District Plan was made partly operative in June, but it represented seven years of Federated Farmers’ work, protecting that district’s farms from unnecessary regulatory costs.

In appealing against this particular plan, Federated Farmers succeeded in ensuring earthworks for farm tracks, fences and drains in the rural zone are exempt from volume limits and resource consent requirements.

This was a clear example where the protracted length of the process contrasts strongly with the statutory deadlines, highlighting a wider challenge that landowners have if they want to have their say in how their farms are regulated.

Federated Farmers, like all submitters, participates in the planning process with the deck stacked against us.

While councils have a seemingly endless ability to ponder and postpone while they complete each step, submitters have strict deadlines and little leeway for time extensions.

TIGHT TIMEFRAMES: Federated Farmers regional policy advisor Rhea Dasent has a look through her files.

PHOTO: FELICITY WOLFE

Submitters are given only a minimum of 10 days notice of hearings and often have just five days to read the staff recommendations to a council hearing panel. Many submitters

go into hearings without a full idea of the recommendations around their submission. Staff recommendations can sometimes feel like a done deal and it can be difficult to convey the full

impacts on your farm in a 10-minute presentation to someone in a suit.

The Resource Management (Simplifying and Streamlining) Amendment Act, introduced in 2009, attempted to solve the problem of drawn-out proceedings during Plan and Policy development by reducing timeframes.

The same Act also slashed the deadline for joining an Environment Court appeal as an interested party from 30 working days down to 15.

Joining an appeal enables Federated Farmers to present farming evidence to the court and be involved in important discussions about a plan where individual landowners may not know they are even affected until someone else makes an appeal. An example of this might be where an appellant wants to extend an area of protected bush, wetland or landscape.

It is still unclear on how these changes have helped the little guy.

Councils are still given up to two years to make a decision after submissions have been heard.

A recent example was Kaipara District Council, which has released its decision on the Kaipara District Plan after more than a year of deliberation.

Now Federated Farmers has 30 working days to read screeds of paperwork, communicate with the affected landowners and, if necessary, prepare an appeal to the Environment Court.

It will be interesting to see if the 15 working day reduction will reduce years of litigation, or just result in further undermining farmer’s abilities to have a say in the future of their own land.

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

NEWS ANALYSIS

Aiming at farming, environmental Ballance The New Zealand Farm Environment Award Trust is delighted to have Federated Farmers as a strategic partner. There are many synergies between both organisations’ aims and objectives.

The flagship annual event for the The New Zealand Farm Environment Award Trust (NZFEA) is the Ballance Farm Environment Awards, which operate in nine regions of New Zealand.

The overall objective of the awards is to promote sustainable and profitable land management on New Zealand farms by using role models and education as effective tools for improving farming practices.

This objective is achieved by: ■ The judging process, which we aim to keep mutually enjoyable and informative.

■ Our commitment to practical solutions that benefit people as well as the land.

■ Our support for diversity — there’s never one right answer, it’s about what works.

■ Our down-to-earth approach to communicating sustainable management concepts, which relies on real people and

their stories.

These awards are unlike other events. Entrants do not enter in search of major prizes or overseas trips.

Instead, most seek to share their ideas and expertise with the wider farming community.

They also want to have a ruler run over their enterprise to provide a personal benchmark of the sustainability of their operation.

A notable trait of the award entrants is they are looking for innovative and sustainable solutions to the limitations they encounter in their farming businesses.

If you talk to anyone who has entered the awards they will tell you it was a very worthwhile experience.

■ Entries for the 2012 awards are still open in some regions. To find out more about the awards and how you can enter go to www.bfea.org.nz or contact the general manager of the NZFEA Trust, David Natzke on (07) 834 0400 or david.natzke@nzfeatrust.org.nz

DELIGHTED: Southland farmers Grant and Bernadette Weller celebrate winning the 2011 overall Ballance Farm Environment Award with Sir Brian Lochore.

Prevention better than power cuts Farmers are experiencing better pasture growth rates than have been seen for a number of years. While they are keenly aware of the grass growing in their paddocks, it is easy to overlook how close a tree branch is getting to overhead lines.

The recent disruption across the upper North Island in the wake of the Maui gas pipeline failure shows how important reliable infrastructure is.

Trees are responsible for a quarter of all power cuts, causing a huge amount of unnecessary disruption to communities and businesses, including farms.

The additional costs that can be incurred are another consideration which all businesses, large and small, have to take into consideration. While some losses can be recouped, not all can be.

It is therefore important landowners take stock of trees and their proximity to powerlines and other infrastructure items

such as buildings and roads which they can also damage.

Often when people plant young saplings they fail to realise how large or how quickly they will grow.

Obviously, one way to minimise power cuts is for landowners to ensure branches are kept well clear of powerlines and have no opportunity to cause outages.

Trimming trees before allowing them to cause problems is preferable to the indignity of causing a power cut for yourself and your neighbours, not to mention the potential safety issues of trees coming into contact with powerlines.

Some lines companies will trim trees close to powerlines for free and other companies also offer a range of incentives, so it is worthwhile giving them a call and seeing what sort of arrangements can be made.

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Ph 0800 327 646 www.fedfarm.org.nz November 2011 National Farming Review

5

NATIONAL POLICY

Changes mean local headaches

By David Cooper Regional policy advisor Since 2009 central government has prioritised road funding towards the seven strategic ‘Roads of National Significance’ (RoNS), at a cost to other parts of the roading network.

This is likely to cause headaches for many rural councils and ratepayers, particularly farmers.

Roading in New Zealand is divided into two broad categories, State Highways and local roads.

State Highways are fully funded by central government, while local roads are funded by councils and central government, who tend to split the cost evenly.

The decision to prioritise funding for the seven RoNS is made on the basis that better investment in these areas promotes the key goals of economic growth and productivity, value for money, and road safety.

The reasoning behind this allocation is the relative use of these roads.

These are worthy objectives, but meeting them doesn’t come without a cost. The additional funding for the RoNS means other areas of the roading network get less funding.

This essentially shifts the local roading network costs to councils, which in turn will be reflected in either higher council costs — meaning higher rates — or through lower levels of service for local roads.

There are two aspects of this shift on which to reflect. The first is the efficiency and fairness of each method of funding. The second is the implication of reduced funding on the efficient and safe movement of traffic and freight in those areas facing reduced funding.

In terms of efficiency and fairness, central government’s contribution to roading in New Zealand is funded through Road User Charges (RUCs), fuel taxes, licensing and registration.

This is all road-use related revenue and, although slightly complicated, the more someone uses the roading network, the more they pay, with the revenue system structured to reflect use or damage factors such as vehicle size and kilometres travelled.

By contrast, local government’s contribution to roading costs is primarily through rates, which rely on relative property value. Rates are a blunt tool and do not measure relative road use.

FUNDING CRISIS: Country roads are losing out on central government funding which is placing more pressure on local councils to find the cash from elsewhere, or make some hard calls on maintenance.

PHOTO: FELICITY WOLFE

As such Federated Farmers believes rates are an inferior way to fund roading when compared to the fairness and efficiency of central government’s roading use-based revenue.

For this reason we believe central government should be funding more of the local roading network, not less.

For rural communities, prioritising the RoNS means the additional cost of servicing the local roading network shifts to councils.

With many councils already under pressure due to the effects of recent cumulative rates increases, central government’s decision effectively pushes councils into a choice between more potholes or higher rates, or potentially both.

For some areas there is a risk that roading funding changes will have a negative impact on the productivity of the rural economy.

Milk tankers, stock trucks and farm machinery all use the rural roading network.

In addition, the gamut of farm servicing businesses could experience higher travel costs if the funding changes result in poorly maintained roads.

Additionally, due to the way roading deteriorates, poorly maintained roads can cost more to repair than they would have cost to maintain to a reasonable level.

While this prioritisation of funding first occurred in 2009, Statistics New Zealand Local Government data

shows that, on average, councils have responded by keeping roading expenditure fairly constant and borrowing for the shortfall.

What this means for ratepayers is the pain is yet to be felt and, with farmers’ rates bills generally well into the thousands, a small percentage increase means big money.

The RoNS are being prioritised for a reason, but this does not capture the economic costs that will occur as a result of lower maintenance on some local roads, nor the unintended consequences of shifting the additional costs on to rate payers.

The message for rural communities is to buckle up for a bumpy, and probably more expensive, road ahead.

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

REGIONAL POLICY

Connecting the dots on outcomes process

By David Cooper Councils are currently putting out draft ‘‘community outcomes policies’’ as part of their long-term planning process.

These may not rouse much excitement, but are important as they aim to ensuring councils understand the aspirations of their community.

Councils use these to guide and inform council activities into the future.

These are the things a council think reflect what the community will aspire to and are a strategic vision for the district or region.The key word for this process is ‘‘Aspiration’’.

A community outcomes poloicy does not outline the detail of how its goals will be achieved, or even how the benchmarks are to be met.

Instead, these policies outline the big picture and provide the basis for a council’s strategic direction on its activi-

COMMUNITY CENTRE: It is important that ratepayers make sure their councils understand the real needs and aspirations of their communities.

ties for the community.

The issue is, without important details like the cost of achieving these aspirations or the considering the implications of the policies in any detail, it is difficult to understand what the community outcomes will mean, especially for primary producers. This is where readers have to draw their own conclusions and submit accordingly.

Key questions to consider include: What does this mean for the range of activities the council will be involved in? Do I agree this is an appropriate role for councils, or should it be left to, for instance, the private sector? What are the implications of this outcome being prioritised over other, unmentioned, outcomes? Is the council appearing to take a more prescriptive and wider role and what does this

mean to me, my business and my rates bill?

The path to achieving these outcomes starts with next year’s all-important Long Term Plan (LTP) process. Community outcomes also play an important role in informing a council’s resource management planning documents, for instance the District Plan.

The conundrum for both councils and ratepayers is, by the time the detailed policy documents come out, the council’s general direction has been set. The extent to which a community can influence actual planning and activities may depend on how much of a mandate a council feels it has to act on community outcomes policies.

One council is currently consulting with its communities over its need to take ‘‘strong, innovative leadership’’.

This is well and good if this is what those ratepayers want, but what does this mean for the impact of community input into future consultation processes?

Can a council, which feels it has a mandate to provide ‘‘strong, innovative leadership’’, feel justified in making future decisions that are less reliant on community consultation? These are questions the community has to consider.

Councils are obliged to undertake these processes and have a big job in developing and consulting on these strategic directions. However, ratepayers need to know, when a council goes to the community asking ‘‘have we got this right?’’ exactly what they are giving up if they haven’t.

Ph 0800 327 646 www.fedfarm.org.nz November 2011 National Farming Review

7

COUNTERPOINT

ACT committed to farming Farmers who want a John Key-led government should give their party vote to ACT, writes Don Brash All political parties want to convince farmers to vote for them.

Most parties talk about the huge importance of farming to our nation’s prosperity.

But only the ACT Party is Don Brash firmly committed Act party leader to defending farmers from some of the unfair attacks they have been subjected to in recent years. Some of the critics would have the public believe that all farmers are grossly irresponsible, that they pollute our lakes and rivers and are totally indifferent to the well-being of their livestock.

There are some farmers who let the side down, but they’re a tiny minority, and the irresponsible behaviour of the minority shouldn’t be allowed to tarnish the reputation of the great majority.

The ACT Party is committed to three particular policies which would greatly help farmers.

First, we believe that the level of Government spending is having a hugely damaging effect on farmers by pushing up the exchange rate. Over the past 12 months, the Government has been borrowing $300 million every week. That’s had two effects on the exchange rate: ■ Because the Government isn’t able to borrow $300 million a week in New Zealand, most of that borrowing is from foreign investors. And for foreign investors to buy New Zealand government bonds, they have to buy New Zealand dollars — so up goes the exchange rate.

■ Because the Government is spending at such a high level, the Reserve Bank has to keep the Official Cash Rate higher than it would otherwise need to be to keep inflation under control. (The OCR is higher than the official interest rate in any other developed country except Australia.) That too keeps the exchange rate at a higher level than it would otherwise be.

ACT is committed to helping National get government spending under control, and that would undoubtedly take some of the upward pressure

off the exchange rate.

Second, ACT is committed to a fundamental reform of the Resource Management Act. There’s no way that a local council plan should be able to designate large chunks of your farm as having outstanding landscape value — with consequential effects on your ability to use your land to its potential — without your getting compensation for that loss of flexibility. Nor should you need to get approval from anybody to, for example, build a hay-barn on your own property.

And third, ACT is committed to getting rid of the Emissions Trading Scheme, at least until our major trading partners have something similar in place. Whatever you believe might be causing climate change, it’s clear that New Zealand’s emissions of greenhouse gases — about 0.2 per cent of the global total — are having an absolutely miniscule impact.

Even now, before biological emissions are charged for, farmers are paying dearly through the 2010 tax on energy, and that is set to double by 2012.

This tax achieves exactly what?

Don Nicolson, until recently the

There’s no way that a local council plan should be able to designate large chunks of your farm as having outstanding landscape value — with consequential effects on your ability to use your land to its potential — without you getting compensation.

President of Federated Farmers, is Number three on the ACT Party list and so is sure to be a strong advocate for farmers within the ACT caucus.

And we’re all committed to doing everything in our power to ensure that the next government works with farmers to make a more prosperous New Zealand for all of us.

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

REGIONAL POLICY

Managing the effects of stock access to water

By Elizabeth McGruddy Federated Farmers senior policy advisor In the discussions around farming and the environment, stock access to waterways is a regular topic of discussion.

One document which will help provide answers to some of the issues around this topic is the Greater Wellington Regional Council’s (GWRC) recently launched ‘‘Guide to Managing Stock Access to Waterways’’.

This was developed as a collaborative exercise between GWRC, Federated Farmers, Fonterra, DairyNZ and Beef & Lamb. All these organisations are involved in promoting it.

Managing Stock Access to Waterways tackles some of the big questions around stock and waterways.

These include: what makes the most difference, where a limited pool of money is best spent and what provides the greatest motivating factor for farmers to fence off stock from waterways.

The logistics and costs of stock exclusion vary dramatically across the different stock classes and farm types, as does the potential risks to the environment.

The guide presents a menu of options.

It is intended to highlight that there is more than one way to ‘‘skin the cat’’,

particularly in hill country with its more complex topography and the need to always have water available.

It takes into consideration real problems facing farmers, such as a lack of practical or cost-effective means to provide alternate stock drinking water.

The objective is, therefore, not that all waterways must be fenced, but that every farmer is taking responsibility to identify the risks and put in place practical measures to protect water quality.

There are countless examples of farmers doing this already: fencing, planting, managing stock carefully when crossing, selective fencing, ensuring minimum buffer zones on winter crops and installing culverts and bridges.

The guide aims to share those and other good practices with everyone else.

The success of the guide will not be measured by fewer complaints. Its ultimate success will be measured by improving water quality without the need for region wide, costly regulations.

So, if the guide turns up in your mailbox, take it out with you next time you are on the bike and have another look at your waterways, through different eyes.

OPTIONS: There are many ways to improve on-farm water quality, from fencing off to providing shelter for stock elsewhere in their paddocks.

New tool minimises waste

By Elizabeth McGruddy Federated Farmers senior policy advisor

BETTER OUTCOMES: The Pond Storage Calculator helps farmers make best use of effluent, for better pastures and happy cows.

Federated Farmers strongly advocates science and innovation to underpin farm systems and support on-farm decisionmaking. The Pond Storage Calculator is a relatively new decision-support tool being rolled out across a number of regions.

It is designed to help maximise manure nutrient use, while minimising losses to waterways.

Manure washed down from sheds has excellent fertiliser and irrigation values, but nutrients can be lost where it is applied to wet paddocks, sloping land or mole-pipe drained soils.

The objective is to hold nutrients within the farm, either with low-rate irrigation systems and/or by storing effluent until conditions are suitable for irrigation.

The Calculator has been designed to help weigh up which combination of

storage/irrigation systems will work best on a particular farm. Farmers put in information, such as cow numbers and length of milking season, then calculate the amount of storage required given specific soil types and rainfall data.

Rainfall is the key parameter. The model incorporates 30 years of regional rainfall data and was initially calibrated to trigger storage requirements matched to the peak in that data. Obviously, this could mean extraordinary expenses for infrequent events and an appropriate trigger level is best assessed within the context of specific catchments.

As with any model, the Pond Storage Calculator does not deliver magic numbers.

It is, however, a very good tool for running scenarios on options, costs and risks.

The Pond Storage Calculator joins a family of other decision-support tools, such as nutrient budgets and crop irrigation calculators, developed by scientists which are now being used on farms.

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Ph 0800 327 646 www.fedfarm.org.nz November 2011 National Farming Review

9

REGIONAL POLICY

Ensuring animal welfare in an emergency response

SHORT CUTS RPS success Federated Farmers has completed seven days of verbal submissions on the Bay of Plenty Regional Policy Statement (RPS). This has led to positive changes in how councils in the region will manage infrastructure, energy and water allocation.

Federated Farmers is helping the Ministry of Agriculture decide how to manage pets during a disaster event, because all sorts of livestock live in New Zealand’s urban backyards, With floods, snowstorms or drought regularly affecting some part of the country, animal welfare is a daily concern for farmers, who have to be prepared to deal with the effects adverse events have on livestock.

However, over the past year the Darfield and Christchurch earthquakes reminded everyone of the awesome forces which can cause widespread animal welfare issues when people are displaced from their homes.

At present the Ministry of Agriculture (MAF) is reviewing the animal welfare strategy and legislation, which will include a vision for New Zealand’s animal welfare, clarify leadership roles and accountabilities and build a shared understanding of how our systems need to improve over time.

Federated Farmers, as part of the multi-organisation National Animal Welfare Emergency Management Advisory Group (NAWEM), is also hoping to get some clarity over who should be responsible for animals during an urban emergency event.

At present the SPCA and Federated Farmers tend to take the lead by default. We do this as a public good, but legally and financially don’t have the mandate necessary to make big decisions. This is viewed as MAF’s responsibility as the guardians of New Zealand animal welfare.

NAWEM, which has representatives from MAF, Civil Defence, NZ Vets, the Royal New Zealand SPCA, Animal Control, WSPA and the Federation, has been in existence for several years. The group acts by providing animal welfare emergency management advice to animal welfare agencies and emergency services.

ZIP submission Zone Implementation Programmes (ZIP) in Canterbury set the future direction for water management in each catchment. Federated Farmers is submitting on ZIP drafts to ensure reliable water for primary production, while safeguarding the environment.

Appeal in Northland The Northland province of Federated Farmers is preparing an appeal to the Kaipara District Plan, on rules that aim to protect the aesthetics of the landscape and limit vegetation clearance at the expense of farming.

Horowhenua challenge In November Federated Farmers will be presenting evidence to a hearing on rules which would limit earthworks and building in the Horowhenua District.

Water management The Otago Regional Council is consulting on a proposed new approach to managing water quality in the region. Federated Farmers is working with farmers to ensure they can participate in the process and understand the implications of the plan change.

Waipa concession URBAN LIVESTOCK: These cattle beasts on Mt Eden live in the middle of New Zealand’s largest city. Federated Farmers is helping ensure they would be properly cared for in the event of a disaster.

Although the group is mainly focused on urban pets, it is surprising what pops up in the average urban backyard. Goats, horses, cattle, sheep, pigs, chickens and even the occasional alpaca have been adversely affected during an event.

Federated Farmers brings expertise in dealing with these sorts of livestock animals to NAWEM. While animal welfare emergency

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management in New Zealand has become more organised over the past five or six years, Federated Farmers is advocating for clear strategies to deal with disaster events.

The draft strategy documents are expected to be released for public consultation in the first half of 2012, before a final strategy and proposal for legislative changes will be presented to the Minister of Agriculture.

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

MARKETS

Dollar down with heightened volatility

By Anne Boniface Senior economist, Westpac Institutional Bank

Exchange rates

Heightened volatility in financial markets over the past few months has impacted New Zealand interest rates, exchange rates and commodity prices.

As concerns over the Eurozone sovereign debt crisis have intensified, with growing fear over the impact on global growth, interest rates have plummeted and markets have shied away from ‘‘risky’’ assets, including the New Zealand dollar.

However, the traffic hasn’t been all one way. While the over-riding theme has been one of pessimism about growth prospects, this has also been interspersed with bursts of optimism as European politicians and officials have scrambled to create workable solutions to the crisis which have been welcomed by markets.

Nonetheless, with deteriorating global growth prospects providing the backdrop, the New Zealand dollar has been under downward pressure. It has fallen from a new post-float high above 88c against the USD in early August to a recent low just below 75c, although it was back above 80c at the time of writing.

Looking ahead, with the eventual path to recovery for the Eurozone anything but straightforward and growth in China and other open Asian economies also expected to slow, commodity prices are expected to continue to moderate. With the New Zealand dollar and commodity prices closely linked, we expect lower commodity prices to put downward pressure on the New Zealand dollar over the coming months.

Interest rates

Offshore developments have also impacted the New Zealand interest rate outlook. After warning that rates were set to rise in July, the Reserve Bank opted to delay the start date of Official Cash Rate hikes in September following the ‘‘intensification in global and financial risks’’. With the Bank now signalling a later start to interest rate rises, and offshore markets paring back global growth prospects, longer-term interest rates have also fallen.

The near-term path for interest rates very much depends on developments in financial markets and their impact on New Zealand. While risks to global

UP OR DOWN: The uncertainty over the Eurozone debt crisis has had its effect on the New Zealand dollar as well.

growth prospects have delayed rate hikes in the near term, over a longer horizon we still expect interest rates to move significantly higher over the next few years after the tightening cycle begins in June 2012. However, some of the increase in interest rates could come via an increase in bank funding costs.

Right now, turmoil in financial markets is putting upward pressure on these costs. Although banks currently aren’t under pressure to access funds from offshore markets, sooner or later they will have to. If credit markets remain stretched, higher funding costs will eventually translate to higher lending and deposit rates, independent of changes in the Reserve Bank’s Official Cash Rate.

Rural land

The rural property market has generally stabilised in recent months.

Land prices are at roughly the same level as a year ago with sales volumes above recent lows. However, they are still well down from pre-global finan-

cial crisis levels. Prices across most rural land types have broadly drifted sideways with the notable exception of the price paid for land used for horticulture which has plunged in the last few months, on very light volumes.

The kiwifruit industry’s ongoing battle with Psa is likely to be a factor here.

Dairy

International dairy prices have continued to grind lower. Over the coming months we expect increased production combined with slowing demand growth in Asia to continue to weigh on prices. In the United States and Europe, production is running ahead of last year’s levels while New Zealand farmers have had a supercharged start to their season following a winter and an autumn which has left both pastures and stock in excellent condition.

Fibre

Wool prices remain high, though we suspect they have now passed their

PHOTO: AP/KIRSTY WIGGLESWORTH

peaks and are likely to continue to edge lower over coming months. While global supplies remain tight, the price of alternatives, cotton in particular, has fallen significantly. Combined with slowing global growth, this is likely to put downward pressure on prices.

Grains

After holding up relatively well during the early period of financial market turmoil, grain prices have been in retreat more recently as concerns over slowing demand outweighed tight supplies and yield prospects fluctuate.

Meat

Beef prices are below recent peaks, but remain elevated. In the near-term we expect further price declines with United States’ supplies increasing sharply as stock is culled in the face of severe drought in the southern states of America.

Over a longer horizon the reduction in herd numbers is likely to see supplies tighten.

Ph 0800 327 646 www.fedfarm.org.nz November 2011 National Farming Review

11

EMPLOYMENT

Start planning for holidays now With Christmas right around the corner, it’s time for employers to start thinking about their employees’ holidays, recommends DLA Phillips Fox law clerk Emma Coburn.

The Holidays Act provides basic entitlements for most employees.

However, the amount of additional leave and the process for applying for leave and any conditions surrounding holidays EMMA COBURN can be altered in the individual employment agreement. Checking the agreement should be the first port of call.

Annual holidays

Generally, employees are entitled to at least four weeks of paid annual holiday after completing 12 months of continual service. If by Christmas an employee has not worked a full year, they can by agreement anticipate, or ‘owe’ their leave, or use a proportion of the amount earned so far. For example, if an employee had been working for six months, they could take two weeks annual leave, or take four weeks annual leave, but

‘owe’ two weeks which is deducted once they have earned it.

An average working week may be difficult to determine, especially since most farmers don’t work the average five days a week and may be on variable rosters and shifts. The Act doesn’t help you to decide, rather leaving it to an agreement or with a labour inspector’s help. One practical method however, is to work out how many days are worked on average every month, then divide by four to work out the average working week as a starting point.

Remember, this entitlement cannot be forfeited and will accumulate if not taken. Some employees can accumulate significant levels of annual leave, which can become a financial burden for employers. In this situation, employers can require employees to take annual leave if the parties cannot reasonably agree when the holidays are to be taken, by giving 14 days’ written notice.

Public holidays

Employees are entitled to a paid day off

on a public holiday, if it would otherwise be a working day. These public holidays are separate from and additional to annual holidays.

As Christmas and New Year’s Day fall on a Sunday this year, employers must be familiar with the concept of Mondayising, as public holidays over this period have special arrangements: ■ If the holiday falls on a weekend, and the employee doesn’t normally work on the weekend, the holiday is transferred to the following Monday or Tuesday so that the employee still gets a paid day off if the employee would usually work on these days.

■ If the holiday falls on a Saturday or Sunday and the employee normally works on that day, the holiday remains at the traditional day and the employee is entitled to that day off on pay.

An employee cannot be entitled to more than four public holidays over the Christmas and New Year period, regardless of their work pattern. To determine what would be a ‘‘normal working day’’, you must consider the employment agreement, the employee’s work patterns, any rosters and the reasonable expectation of both

parties that the employee would work on the day concerned.

An employer and employee can now also agree to transfer a public holiday from the day it is usually celebrated, to another day that would otherwise be a working day for the employee or, a day where the employee is due to work a shift in the period to which the public holiday is transferred. A request can be made by either party, and must be considered in good faith.

If the employee then works on the day the public holiday is transferred to, then they are entitled to be paid time and a half for the hours worked and to receive a whole day’s alternative holiday.

Most importantly, make sure you maintain a written record of the employee’s holiday and leave. As well as being a legal requirement, thorough record keeping can be beneficial if an employment relationship breaks down.

■ If you need any help with working out holiday entitlements, or any other questions relating to employment, Federated Farmers members can call 0800 FARMING for free, independent employment law advice.

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FEATURE

Manifesto for the future of

Political parties may come and go, but New Zealand’s rural sector can be assured Federated Farmers is advocating for it. Felicity Wolfe reports.

FARMERS’ VOICE: Federated Farmers national president Bruce Wills launched the 2011 Election Manifesto in Wellington on November 2.

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In just over a week the nation will cast their votes for who should lead New Zealand for the next three years.

Elections are a worrying time for rural New Zealand. Increasingly, urban drift has seen the balance of political power swing towards cities, despite agriculture remaining the steady powerhouse of the country’s economy.

Because most voters live in Auckland, with Wellington and Christchurch a distant collective second, politicians devote little time to wooing the rural vote.

The pronouncements coming from politicians have been particularly worrying this election. In bold-faced attempts to win over urban middle classes, some political parties have released very misguided agricultural policies.

That is why, on November 2, Federated Farmers launched its 2011 Election Manifesto. It was given to all sitting MPs, so they know what New Zealand’s most vital export sector needs.

Year in and out, Federated Farmers makes sure politicians are aware of the concerns of their most productive constituents; farmers.

Federated Farmers 2011 Election Manifesto brings together the issues we work on for our members and the wider rural community. All are important issues for agriculture and the Federation, which fights to ensure New Zealanders can farm profitably into the future.

Water is just so important Water is a highly charged issue with many groups taking up the challenge to improve New Zealand’s waterways. It is incredibly important, as activities like swimming, boating and fishing play a special part in what it means to be a New Zealander. ‘‘Water is also a fundamental driver for the success of our economy, the allocation and use of water is critical to our ability to grow and sell protein,’’ Federated Farmers national president Bruce Wills says. ‘‘To expand the agricul-

TO THE TOP: Federated Farmers chief executive Conor English, president Bruce Wills and Grain & Seed chairperson Ian Mackenzie take the Federated Farmers 2011 Election Manifesto to the Beehive.

tural export sector, we must continue to farm in harmony with the country’s water resources.’’

Primary producers need to do more to reduce and eliminate their potential effects on water quality and seek new ways to use water more efficiently.

To a large extent this is already happening, with farmers and agricultural organisations annually investing millions in research. The industry needs access to

rational and practical science so farmers can make informed decisions on how to prioritise and implement policies and rules to protect water resources.

While a noble idea, attempts to find new ways of using water have become dominated by emotion and misrepresentations of agriculture’s role as a polluter.

A lot of currently accepted information uses out-of-date data or unfairly focuses on agricultural catchments over urban ones.

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13

FEATURE

farming in New Zealand HAND OVER: Federated Farmers president Bruce Wills hands over a copy of the 2011 Election Manifesto to Minister of Agriculture David Carter, together with Grain & Seed chairperson Ian Mackenzie, left, and the Federation’s chief executive

Many of the suggested solutions do not account for changes farmers are making to minimise environmental damage and fail to take into account the economic importance of a successful agricultural sector.

Federated Farmers is working with many groups, especially Government and local authorities, to ensure farmers’ needs are addressed. For New Zealand to grow and thrive, farmers need a reliable supply of water. ‘‘Water is the leading edge for agriculture’s environmental and economic footprint. We outline sensible policies for its ownership, management, allocation and quality,’’ Mr Wills says.

With this end in mind the Federation is working towards a resolution on improving water quality and access for all groups promoting investment in the right infrastructure. ‘‘There has been a heartening trend towards more collaborative ways of finding solutions at national, regional and catchment levels,’’ Federated Farmers national board water spokesman Ian Mackenzie says.

After advocating for more investment in this area, the Government recently indicated a willingness to expand rural water investment. ‘‘We are not solely looking for economic benefits, although the experience of communities which have invested in water infrastructure is that these are enormous,’’ Mr Mackenzie says.

There is a concurrent expectation these projects will be structured so water quality improvements and an awareness of environmental benefits are embedded in irrigation acceleration programmes.

The benefits will extend past the farm

gate and beyond the current generation. ‘‘As well as advocating for infrastructure projects by actively participating in the Land and Water Forum, Federated Farmers is helping the government develop new policy frameworks under which councils will set and manage limits. ‘‘We see value in strengthening the guidance around water management,’’ Mr Mackenzie says.

However, these guidelines must allow local communities to make specific decisions on their own limits and targets and these decisions need to be informed by science and balance cultural and economic values. ‘‘We are looking for industry selfmanagement, rather than a proliferation of regulations, as the primary mechanism for improving land use practices to improve the nation’s waterways,’’ Mr Mackenzie says.

Federated Farmers’ main interest is in supporting co-ordinated industry initiatives and working at the interface between industry-led programmes, government policy instruments and council plans. ‘‘We believe a pan-sectorial agricultural approach can, and will, deliver water quality outcomes,’’ Mr Wills says. ‘‘It would also ensure we can use the land in a way which makes optimum economic sense for farmers and the wider community.’’

Researching a better way Research is the key to increasing on-

farm productivity and the value and range of products farmers produce. In the Manifesto, the Federation advocates for world-class investment in research and development to ensure New Zealand farmers have access to the technology and scientific research needed to stay ahead of the world in high quality food production.

Any improvements in developing technologies, crops, feed and animals will help ensure the future prosperity of New Zealand.

The growing global population presents an opportunity for New Zealand farmers to grow their markets, if they can increase production. This would help grow the economy of the entire country, but requires greater investment in science and research to be achieved. ‘‘There is good evidence that public and private investment in science and innovation increases a country’s wealth and overall standard of living,’’ Federated Farmers vice president and food production sciences spokesperson William Rolleston says. ‘‘Currently, we have one of the lowest rates of investment in pure science, research and development in the OECD, at around 1.2 per cent of GDP. ‘‘Initiatives, such as the Primary Growth Partnership, are helping rectify this imbalance, but, given our reliance on primary-based industries, New Zealand ought to be a leader in this area.’’

Greater public and private funding is necessary to foster excellence in science and innovation.

This will in turn create a more attractive environment for businesses, from start-ups to established companies,

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looking to capitalise on an atmosphere of ingenuity and technological creativity.

However, just spending more on R&D is wasteful if the implementation is not right.

The Federation welcomes the more collaborative approach to science being taken by the Government, and the merging of the Ministry of Research, Science and Technology (MoRST) and Foundation for Research, Science and Technology (FoRST) into the Ministry of Science and Innovation.

The Centres of Research Excellence, Research Platforms, the Crown Research Institute reforms and the Primary Growth Partnership (PGP) are all positive moves to create a flourishing science and innovation ecosystem, enabling more strategic deployment and co-ordination of New Zealand’s limited research resources.

However, Dr Rolleston says there is also space for competitive science funding, to stimulate new ideas. ‘‘The Science and Innovation Boards, on which I sit, provide that role in the research-facing and business-facing spaces.

I am pleased to say that business is beginning to embrace the concept of R&D,’’ Dr Rolleston said. ‘‘We need set priorities to ensure we focus on the areas we are strong in.’’

New Zealand’s primary industries earn about $31 billion or about 71 per cent of the country’s annual physical exports. ‘‘Our number one priority is to protect and increase those earnings and we need science to do both,’’ Dr Rolleston says. ‘‘Farmers want additional research spending on increased productivity, increased product value and on reducing our environmental footprint.’’

A recent NZIER study showed New Zealand’s agricultural labour productivity was 61 per cent higher than Australia’s, but the gap was closing.

Dr Rolleston said science had a role to play in converting the ‘‘art of farming’’, including managing multiple farm inputs and livestock with unpredictable elements, such as weather and commodity markets, into rational decision making. ‘‘We are only scratching the surface onfarm when it comes to the adoption and use of technology to aid decision-making,’’ Dr Rolleston says. ‘‘Since 1990, we have managed to produce 7 per cent more lamb from 55 per cent fewer sheep. With beef, our meat volumes are up 23 per cent, from 11 per cent fewer cattle, and dairy production growth per cow has averaged 26 per cent.’’

■ CONTINUED ON PAGE 15

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FEATURE

Tackling the big issues facing farmers this election ■ CONTINUED FROM PAGE 13 Driven by efficiency and productivity rather than an Emissions Trading Scheme, New Zealand farmers have also reduced carbon per unit of product by about 1.3 per cent a year.

The Ministry of Agriculture costed the economic fallout from the 2007/08 drought at $2.8 billion. Developing crops and pastures requiring less water and fewer nutrients to get through similar events would revolutionise farming’s economics.

Similar traits bred into horticultural varieties would allow expansion of production land for niche, high value crops.

This reduces New Zealand’s market risk through diversification and provides greater security against climate variation. ‘‘The bonus of such science is that we reduce nutrient loss and keep more water in our rivers. Like much that science has to offer; an economic win and a win for the environment,’’ Dr Rolleston says.

Safer food and enhanced biosecurity Federated Farmers is also asking to prioritise biosecurity as another worthy beneficiary of increased science funding. ‘‘New Zealand’s reputation as a world leader in safe premium agricultural produce isn’t based on the Emission Trading

Scheme, NAIT or even clean and green,’’ says Dr Rolleston. ‘‘Our reputation is based on proven systems of food assurance. Biosecurity has been a key market differentiator in selling our produce overseas.’’

Biosecurity incursions including the bee parasite Varroa, rock-snot Didymo algae and the current outbreak of deadly kiwifruit vine virus Psa-V have all had a toll on New Zealand’s economy.

Psa-V, which is spreading across Bay of Plenty, is threatening a $4b a year export industry. A disease entering and affecting the meat or dairy industries would be ruinous. ‘‘We need to realise what is at stake when we allow biosecurity risks across our borders,’’ Dr Rolleston says. ‘‘We need a greater emphasis on screening before tourists and imported goods reach our border. Where we are bringing in goods, we can implement preborder assurance through international agreements between trading countries.’’

Using electronic clearance to process tourists faster through airports was fine, as long as they were tested and risks were taken into account,he said.

As an exporting group, farmers are not anti-trade. The Federation is calling for improvements to the current biosecurity system, including a new funding model taking into account how potential risk exacerbators, such as

importers and tourists, can contribute to readiness and incursion response.

The Federation also calls for a fulltime independent review panel to act as a biosecurity watchdog. ‘‘Biosecurity is vitally important to our economy and also our long term reputation as a producer of safe food products,’’ Dr Rolleston says.

Control spending

Farmers make up New Zealand’s largest exporting bloc and, despite stronger commodity prices over the past 12 months, the high New Zealand dollar has reduced returns inside the farmgate.

Most drivers behind the strength of the dollar are outside New Zealand’s control. There is, however, one factor New Zealand can do something about; government spending and debt levels.

Although the current Government is trying to contain spending and debt growth, Federated Farmers contends more should be done.

The Federation’s six-monthly Farm Confidence Surveys show members worry about the Government’s borrowing and spending, and consider dealing with debt its highest priority.

In the 2000s, Government spending nearly doubled to $64b in 2009/10 compared to $35b in 1990/00. When revenue dropped in 2008/09, a large

structural fiscal deficit was exposed. Now, Government debt is expected to reach $114b by 2014.

To ensure New Zealand’s future prosperity, the Federated Farmers Manifesto calls on government to take responsibility, reversing the trend of record deficits and return to surplus as soon as possible. ‘‘This is particularly important given the dire global economic situation and its impact on New Zealand,’’ Mr Wills says.

The Federation wants the Government to reduce core expenditure below 30 per cent of GDP by 2014. To achieve this it needs to implement a spending cap adjusted by population growth and inflation. It needs to keep the cap to ensure spending does not spiral out of control. ‘‘Greater control of fiscal policy will make it easier for the Reserve Bank to control inflation without resorting to tight monetary policy and putting pressure on the exchange rate,’’ Mr Wills says.

The Federation supports moving to a flatter tax system with lower personal income and company tax rates, not capital gains taxes or creating an unnecessarily complex tax system to ‘pick winners’. ‘‘Come what may after November 26, we think the best thing any government can do to ease interest rates and the exchange rate is to ensure all its policies have the goal of improving productivity and supporting all of New Zealand’s export sectors,’’ Mr Wills says.

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

FEATURE

Major party positions on the big issues remedy for unjustifiable dismissal.

Asset sales

■ National will reduce the Government’s shareholding in Air New Zealand and the four state-owned energy companies, retaining a minimum 51 per cent ownership. Proceeds go to new assets, such as broadband, schools and hospitals.

■ Labour opposes asset sales.

Emissions Scheme

Trading

■ National will include agricultural emissions from 2015, if there are effective mitigation options and trading partners include agriculture in their schemes.

■ Labour will include agricultural emissions from 2013.

Employment

■ National will extend flexible working arrangements allowing employers to reach agreements without formal processes. Collective bargaining changes, including removing requirements to conclude an agreement.

■ Labour will extend minimum wage to $15 and repeal the 90 day probationary period. Reinstatement will be the primary

ministerial discretion on assets over $100 million.

Environment

Research and Development

■ National to carry on RMA streamlining for nationally significant projects such as urban design, infrastructure and fresh water. Remains committed to High Country tenure review.

■ Labour will drop the High Country tenure review process in favour of direct acquisition of properties for the conservation estate.

■ National has streamlined science funding through the Ministry of Science and Innovation, developing Centres of Research Excellence and Research Platforms, Crown Research Institute reforms and the Primary Growth Partnership (PGP).

■ Labour will review the PGP grants scheme, transferring $16m to Sustainable Farming Fund and use agriculture’s inclusion in the ETS to fund a 12.5 per cent R&D tax credit.

Monetary policy

■ National considers fiscal restraint as the best way for government to keep pressure off the exchange rate.

■ Labour will reform monetary policy to broaden Reserve Bank objectives, and retain the current 1-3 per cent inflation target.

Savings

■ National will introduce autoenrolment, with an opt-out, to KiwiSaver with employee and employer contributions rising to 3 per cent in 2013.

NZ Super Fund contributions will restart once there is a surplus. Retirement age remains 65.

■ Labour will make KiwiSaver compulsory for all wage and salary earners and employer contributions increase by 0.5 per cent per year to reach 7 per cent in

Overseas investment

■ National generally supports overseas investment, but tightened application rules two years ago. No further changes are planned.

■ Labour would prohibit foreigners from buying rural land unless there is a wider community benefit. There will be general

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■ National has committed $265m to clean up lakes and rivers, established the Land and Water Forum and committed $35m to accelerate irrigation projects.

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■ Labour supports irrigation from sustainable sources, but not taxpayer funding. Labour will develop a resource rental charge, to encourage wise water use,and opposes urban and rural water privatisation.

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■ National has reduced personal and company income tax rates while increasing GST and scrapping the previous government’s R&D tax credit.

■ Labour will make the first $5000 income tax free and introduce a 15 per cent capital gains tax. There will be a new 39 per cent top rate for income over $150,000 and unspecified anti-avoidance measures. Fruit and vegetables to be GST-free.

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Ph 0800 327 646 www.fedfarm.org.nz November 2011 National Farming Review

17

REGIONAL SPOTLIGHT

Psa highlights biosecurity response importance against a disease like Psa or Foot and Mouth disease or a disease not yet discovered. It is important that we don’t become complacent.

Bay of Plenty

By Steve Bailey Federated Farmers Bay of Plenty Dairy vice-chairperson New Zealand’s $1 billion kiwifruit industry is in jeopardy. With no sliver bullet solution to Psa-V, Bay of Plenty kiwifruit growers have been left with no other option but to destroy their infected vines.

The disease was first discovered in a Te Puke orchard last November and has spread to Tauranga, Waihi and Nelson.

The ramifications are huge and Psa-V will significantly reduce this region’s income.

There is always contention when situations turn bad. Questions need to be asked of the Ministry of Agriculture (MAF) who took control of the biosecurity incursion. If MAF had the testing facilities and resources available under the Biosecurity Act to immediately identify Psa, then it may have been effective in containing the disease.

Although I am pleased to see the Act is now being reformed as a result of the Psa response effort, industry groups need to be included in the reform to establish clear processes for readiness and response.

Being reactive to industry needs is

North Otago

By Richard Strowger Federated Farmers North Otago provincial president SIGN OF THE TIMES: The kiwifruit vine disease Psa highlights the consequences of biosecurity breaches on New Zealand’s primary industries.

extremely important.

Resources, research and equipment need to be ‘on the ready’, immediately available to contain and eliminate the disease. Local communities and industries need to be briefed on what is required of them. Once this has happened steps need to taken to manage the threat.

While we cannot afford to close our borders, New Zealand’s advantage of isolation is being eroded as we import more and more produce, which imposes great risks on our producers.

Individual farmers also need to plan for events such as these, not only by reducing their debt so financially they can stay afloat, but by ensuring they know what to do when they are up

Five years after the Downlands scheme was introduced by the farmer-owned North Otago Irrigation Company, complications have emerged. Water has seeped from irrigated land on to neighbouring dryland farms.

I have been trying to mediate this situation, urging all the parties involved to communicate with one another.

The scheme was implemented in 2006 to address water issues and improve land productivity. Over the past five years it has boosted North Otago’s local economy.

The Waitaki Development Board’s July 2010 report on the economic benefit of the scheme shows that since it began, cash farm expenditure has increased 310 per cent, or $29.26 million. Much of this money is spent in the local community.

Stage one of the scheme saw water pumped to 10,000 hectares of farmland.

Stage two, which is in the pipeline, will

double the amount of irrigated land to 20,000 ha.

The current problems have been exacerbated by farmers complaining to everyone, including the Otago Regional Council, instead of talking to the people responsible.

We all need to remember this irrigation project is a learning curve for everyone.

The irrigation rules for flat land do not always work in rolling country.

Our farmers have to somehow reduce gravity’s pull so water infiltrates the soil.

This is not always as straightforward as you would think.

Although we may try various solutions, they don’t necessarily work. Everyone needs to be patient, and both dry and irrigated farmers need to work together towards a viable solution.

Several people also believe the irrigation scheme is responsible for the natural springs emerging over the past few years.

However, last year was extremely wet so the scheme was turned off. The springs still emerged.

Remember, most of us are not scientists and until we have data proving the cause of these springs, I am reluctant to play the blame game.

A similar irrigation project, The Hunting Hill Scheme, is being rolled out in South Canterbury. It will be interesting to see how it takes form and whether neighbouring farms experience similar problems.

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

INDUSTRY GROUPS

DAIRY

A new look at a long list

By Ann Thompson Dairy industry policy advisor

RE

NE

W

V PR OLU OD TIO UC NA T! RY

Agrichemicals are generally considered a fairly boring topic, but a recent Federated Farmers survey drew a surprising number of responses, showing huge interest in the future of carbamates and organophosphates.

While some of these agrichemicals are used in veterinary medicines, it is their use protecting plants from pests on which the Environmental Protection Authority (EPA) is currently consulting.

The EPA assesses hazardous substances and is considering the future use of carbamates and organophosphates.

Both groups inhibit the activity of the enzyme acetylcholine esterase, found in animals and some plants, and so can be grouped together when assessing their fitness for purpose.

The Federation had recommended that these chemicals be assessed concurrently when we made a submission on the use of diazinon, an organophosphate.

We were concerned the authority would take a piecemeal approach to assessing these chemicals, keeping one agrichemical at a time, while discarding another, which could then have resulted in the remaining ones

being of little use to farmers.

Dealing with both groups together allows the EPA to weigh the pros and cons of the agrichemicals against one another.

As a result, those left in the toolbox will be the best chemicals for the job. We applaud the EPA for taking this approach.

Federated Farmers actively encourages everyone to use chemicals safely, following the instructions on the label.

We are an active member of the Agrichemical Education Trust, which administers the GrowSafe programme training people to use agrichemicals safely.

Farmers are well aware of the dangers of high residue levels of toxic substances within food products. Residue presence in food invariably results in product recalls or loss of market access.

This would create major problems for New Zealand’s exporting sector.

We are keen to hear from our members how they use these products. Rural contractors who use these sprays for a living can offer us valuable experience.

We are also keen to hear how cropping and pasture farmers deal with pests, such as grass grub and porina moth.

FOLLOW PROPER PRECAUTIONS: The Environmental Protection Authority is looking at the use of carbamates and organophosphates to control pasture pests such as grass grubs. By looking at both these groups together, the authority can weigh the pros and cons of each chemical.

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Ph 0800 327 646 www.fedfarm.org.nz November 2011 National Farming Review

DAIRY

19

INDUSTRY GROUPS

Awards reflect progression over years

By Ann Thompson Dairy Industry policy advisor Owning a dairy farm begins with learning the ropes and takes years of hard slog. The journey to dairy farming success is celebrated each year by the New Zealand Dairy Industry Awards.

Registrations for this season’s competitions opened on November 1.

These awards have an admirable history, beginning over 20 years ago when the Sharemilkers’ Sub-Section of Federated Farmers Taranaki ran the first competition.

Back then it was named the Sharemilker of the Year, or SMOTY, competition. The concept took off with SMOTY soon being held nationwide.

It was a sign of the growing professionalism of the industry when, six years ago, Federated Farmers expanded it to include the Dairy Trainee of the Year award for those just starting their dairy careers.

In 2006 SMOTY merged with the Fonterra-run Dairy Excellence Awards, creating the New Zealand Dairy Industry Awards (NZDIA) and expanded again to include the

Farm Manager of the Year award.

Dairy farming’s changing business structures were recognised by the inclusion of equity partners into last year’s sharemilking section and renaming it the Sharemilker/Equity Farmer of the Year.

The awards now celebrate the real progression through the industry, from school leavers to a position where full farm ownership is the next step.

All those who have entered any part of the competition have come away with huge pride in their own business and great admiration for the winners.

These winners are recognised as leaders by their fellow farmers throughout New Zealand.

The skills learnt during the competitions have led many past contestants into industry and community leadership roles.

The NZDIA is now truly a joint venture, overseen by a trust of representatives from Federated Farmers, DairyNZ and Fonterra The awards are supported by a family of sponsors and run by an army of farmer-volunteers, often past winners.

■ Become part of this journey and enter the competitions at www.dairyindustryawards.co.nz.

2010 Northland Dairy Industry Award, from left, DTOTY winner Michael Deal, SMOTY winners Jennifer and Kent Martin, and FMOTY winner Mark Clements.

2009 Bay of Plenty Dairy Industry Awards, SMOTY winners Kim and John Wakefield of Awakeri.

2007 Hawkes Bay/ Wairarapa FMOTY winners Michael and Lisa Wood of Pirinoa.

2011 New Zealand Dairy Trainee of the Year winner Ben Smith and his wife Chloe accept his award in Queenstown.

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

INDUSTRY GROUPS

DAIRY

Life on both sides of the fence

By Ann Thompson Dairy Industry policy advisor Mid-Canterbury sharemilker Jessie Dorman has been on both sides of the Federated Farmers fence, these days competing in the New Zealand Dairy Industry Awards which she used to support in her old career.

These days, Jessie is the Federated Farmers Dairy Sharemilkers’ Section vice-chairperson, but she started out in Wellington as a Dairy policy advisor and Industry Group manager.

Swapping her office job for sharemilking is not the common pathway to farm ownership.

Jessie’s first job was as a laboratory technician at the Fonterra Research Institute.

From there she completed an animal science degree at Massey University and did her honours research at AgResearch.

She worked in a range of rural professional jobs, including as a MAF technical advisor, a programme manager for Meat and Wool New Zealand and a developer for DairyNZ. Her journey into farming began when she met an ambitious dairy farmer at a Young Farmers’ meeting.

Jessie married Hayden Dorman and the couple moved to mid-Canterbury to become lower-order sharemilkers on Willy Leferink’s farm. They worked on the farm for two years.

Hayden already had a few years farming experience, starting as a dairy assistant and progressing to a farm manager position, before becoming a sharemilker.

He and Jessie now own 800 cows on Willy’s farm near Rakaia and Hayden is now teaching Jessie all he knows.

Jessie had already met Willy through her job with the Federation.

Like her, Willy has risen through Federated Farmers ranks and is currently Federated Farmers Dairy chairperson.

As part of their thirst to improve their business, Jessie and Hayden have entered the New Zealand Dairy Industry Awards for the past two years, scooping up the Canterbury/North Otago leadership and animal health awards.

They are both passionate about the competition, which encourages them to take an in-depth look at how they can improve their business for the future.

The pair really appreciate the role

BRIGHT FUTURE: Mid-Canterbury sharemilkers and enthusiastic Dairy Industry Award entrants Jessie and Hayden Dorman are looking forward to a bright future with help from Federated

Federated Farmers plays by sponsoring these awards.

They, along with Willy, are also very passionate about making sure there continues to be a successful progression path for people entering the dairy industry.

As part of their thirst to improve their business, Jessie and Hayden have entered the New Zealand Dairy Industry Awards for the past two years, scooping up the Canterbury/North Otago leadership and animal health awards.

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Ph 0800 327 646 www.fedfarm.org.nz November 2011 National Farming Review

MEAT & FIBRE

21

INDUSTRY GROUPS

Still working on NAIT improvements

By David Burt Meat & Fibre policy advisor The mandatory implementation of National Animal Identification and Tracing (NAIT) is, subject to the passage of the NAIT Bill, now expected to be July 1, 2012, for cattle and March 1, 2013, for deer.

In the meantime, the development of the mechanisms required to implement the NAIT scheme continue.

The regulations on obligations and exemptions have been commented on

by Federated Farmers.

Further sets of regulations, around cost recovery, data access and infringements, will be consulted on in due course.

These will also be examined and submitted on by the Federation.

There remains a lot of work to be done before the NAIT scheme becomes mandatory, with multiple requirements expected of farmers, as a consequence of the framework that the NAIT Bill provides.

From the Federation’s perspective, foremost among this work is the need to ensure requirements imposed on farmers are practicable. In addition, any requirements must be implemented at the least possible cost.

The Federation remains concerned that the NAIT implementation date is rapidly approaching, but much of the detail farmers need to know is still to be determined and communicated to them.

It cannot be emphasised enough that for the scheme to be workable, farmers must be provided with the information they need to meet their legal obligations and options.

Ensuring these needs are met will be a focus of the Federation’s work with MAF and NAIT Ltd in the months ahead.

Once NAIT is mandatory, however, farmers will need to meet a number of obligations.

Obligations to be met ■ To register the NAIT location and the names of the people who will be in charge of the animals.

■ To tag NAIT animals with radio frequency identification (RFID) ear tags and register them with NAIT. ■ To record all movements of NAIT animals on and off your property.

■ To advise NAIT of animal deaths,

your behalf. NAIT is consulting with interested parties such as farm management companies and stock saleyards to develop the standards to be met.

When to tag

Although many of the NAIT obligations which farmers will need to meet on July 1 are not yet in place, farmers can, if they choose, tag their cattle and deer now in preparation for when NAIT becomes mandatory.

TRACKING: Craig Purcell, a NAIT consultant, explains the pasture-to-plate tracing concept to Hawkes Bay farmers in 2009.

LIVESTOCK ISSUE

Date

Until June 30, 2012

From July 1, 2012 (for cattle) From March 1, 2013 (for deer)

Moving stock to slaughter.

■ Use either an AHBapproved primary (barcode) tag or a NAITapproved primary (RFID) tag.

■ Alternatively a directto slaughter tag can be used as a primary tag.

■ An AHB-approved secondary tag is not needed.

■ Bobby calves less than 30 days old, going direct to slaughter: use a tag from the meat processing company

Moving livestock Livestock off the property (eg, remaining on the for sale or grazing). property.

■ Use either an AHB-approved primary tag or a NAIT-approved RFID tag.

■ An AHBapproved secondary tag is also required.

No current requirement to tag.

■ Both a NAITapproved RFID tag and an approved secondary tag are required.

■ Capital stock have a three-year grace period for NAIT-approved ■ Use a NAIT-approved RFID tags (unless Both a NAITprimary RFID tag. approved RFID tag being moved off■ No secondary tag is farm). and an approved required.

■ Newborn ■ Bobby calves less than secondary tag (of a animals must be 30 days old, going direct type currently tagged within 180 approved under the to slaughter: use a tag days of birth, or from the meat processing AHB scheme) are prior if being required. company moved off-farm.

losses or exports.

The required information will have to be provided within set time limits and updated as necessary.

Details of when the NAIT system will accept this information can be found on the NAIT website.

Approved third parties Alternatively these obligations can be carried out by third parties, NAITapproved information providers, on

How to tag

It is important RFID tags are fitted correctly to miminise tag loss. See the NAIT website or your tag supplier for details of how to do this. Farmers must understand what they have to do and when, along with how they can fulfill their requirements.

The Federation has voiced concerns that there are farmers who do not have internet access and will be disadvantaged in their ability to meet their NAIT obligations.

One possible solution is those farmers having the ability to call in information by telephone.

The Federation will do all it can to ensure the cost of these calls is as low as possible.

Work between NAIT Ltd and the Animal Health Board (AHB) on tagging requirements should go a long way towards ensuring the needs of both organisations are met in the run-up to and after the implementation of NAIT. The result is the tagging requirements described here (see table).

Farmers can have confidence the AHB’s work in controlling and reducing bovine Tb will not be placed at risk by the NAIT scheme.

■ More information about NAIT can be found on the NAIT website, www.nait.co.nz. Other contact details for NAIT are: Post: NAIT Ltd, PO Box 10 082, Wellington 6143 Telephone: 0800 624 843 E-mail: info@nait.co.nz ■ You can also get more information about NAIT from Federated Farmers by contacting Jacob Haronga, a senior policy advisor in the Wellington office — email, jharonga@fedfarm.org.nz, telephone, 0800 327 646 or fax 04 473 1081.

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

INDUSTRY GROUPS

GRAIN & SEED

Simplify road rules for Ag vehicles

By Matt Scott Federated Farmers policy adviser Arable farmers and contractors will welcome news the Ministry of Transport is working on more straightforward regulations for using agricultural vehicles on roads.

Having dedicated a lot of time to analysing information from our members on the impracticalities of the system, Federated Farmers looks forward to working with the ministry and fellow industry representatives to progress a workable and safe system.

Agricultural vehicle operators spend the vast majority of their time off-road but occasionally need to use the road.

It is clear, from talking to Federation members, the requirements are confusing and tend to lump agricultural vehicles, which have less impact on the

CRYSTAL CLEAR : Federated Farmers is continuing to push for easy-tounderstand regulations to make it simpler to move agricultural vehicles between jobs.

roading infrastructure with trucks.

As the majority of agricultural vehicles are imported, farmers and contractors have to retro fit them to comply with regulations.

The Federation believes a better solution would be making the country’s regulations consistent, where appropriate, with international

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The paramount requirement of any regulation is the need for all vehicles operating on the road to be safe.

When encountering agricultural vehicles on a public roadway, drivers need to be confident there is a robust system in place ensuring the machines are being operated safely.

Federated Farmers hopes the review will produce a distinct schedule for agricultural vehicles, taking into account their unique characteristics, as opposed to other heavy vehicles.

The Federation believes this would be less complex for operators, improve compliance and be easier to administer.

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HIGH COUNTRY, BEES

23

INDUSTRY GROUPS

Hopes for an effective cull Will there be an effective moult cull of Canada geese this summer?

The group established by Federated Farmers High Country to co-ordinate control in the South Island is hoping there will be, but much depends on some tangible support coming from Government before the end of the year.

Representatives of this group met with Biosecurity Minister David Carter and Conservation Minister Kate Wilkinson in September.

Proposals to form a self-supporting structure that would keep South Island Canada geese levels to a manageable long-term level were outlined to the ministers.

It was emphasised that success depended greatly on a successful moult cull this coming season.

The minister has respnded favourabely to holding a moult cull which will take place this summer.

In the meantime, the Federated Farmers High Country group also continues its active involvement with the Rabbit Co-ordination Group in seeking new and improved methods to manage rabbits.

An application to the Sustainable Farming Fund has been made in the name of Federated Farmers High Country for a Landcare Research-led project on refining operational practices for controlling rabbits on agricultural lands.

We also intend to make rabbit

DESTRUCTIVE PESTS: It is hoped that co-ordinated efforts will result in an effective cull of Canada geese in the South Island High Country this summer.

management a major theme at the 2012 High Country Field Day, which we will be holding in Marlborough in March.

■ Those wanting to do a bit of advanced planning should note there is a slight change to the timing of High Country Conference next year. It will

be held immediately before Queen’s Birthday weekend, on Thursday and Friday, May 31 and June 1, at the Edgewater Hotel in Wanaka.

Protect bees from harmful chemicals

By Federated Farmers Bee Industry Group Industry group Agcarm recently launched a Bee Safe, Spray Safe campaign.

The campaign is aimed at promoting the safe use of chemicals which can be toxic to bees.

In support of the campaign, Bee Safe, Spray Safe bumper and window stickers will be distributed throughout the country by Rural Contractors New Zealand, the National Beekeepers Association and Federated Farmers Bees.

The simple message is designed to

encourage farmers and spraying contractors to take responsibility for safe spray practices.

Special care should be taken when using mixers and other adjuvants which improve the stickability and penetration power of sprays, as it is often the additives which lead to increased toxicity.

Remember, always read labels, follow instructions and at all times ensure bee health and safety is the number one priority in the field.

■ For free stickers email: enquiry@agcarm.co.nz or phone 04 499 4225.

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

INDUSTRY GROUPS

GOATS

Funding for saliva test research

SHORT CUTS ACC levies to drop

Federated Farmers Goat industry group has applied to Beef & Lamb New Zealand (BLNZ) to put some of the residual Goat Meat Levy funds for research into using the Carla saliva test to identify goat resistance to parasite challenge.

The test, developed by AgResearch, has proven a powerful new tool for selecting sheep with greater immunity to internal parasites, both in suffering less from the effects of parasitic worms and releasing fewer worm eggs on to pasture.

The Federation’s Goat Group committee believes identifying whether this test would be suitable for goats fits into the evaluation criteria identified by BLNZ as one of the activities to which these funds should be applied.

■ There will be an increased emphasis on electronic communications from the Federation’s Goat Group in future. Goat News will cease publication and be replaced by general goat news snippets issued by Federated Farmers. People wanting goat news should ensure that ‘‘goats’’ is recorded as an interest on their annual Federated Farmers renewal invoice and that the Federation has your email address.

■ The 2012 Goat Industry Group Conference will be in Blenheim between April 2 and 4. It will be a similar format to this year, with one day being given over to field trips.

Registration forms will be mailed out soon.

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The Government has announced reductions in ACC levies from April 2012. Work Account levies will drop on average by 22 per cent while the Earners Account levy for non-work accidents will drop 17 per cent. The Motor Vehicle Account levy will remain unchanged.

FAR cuts bite Concerned about cuts in the funding assistance rates (FARs) for many rural councils, Federated Farmers has written to Transport Minister Steven Joyce. Cuts in FARs could mean higher rates burdens or less maintenance work done on rural roads.

Transport rules review

HEALTHY FUNDING: The Federation’s Goat industry group has asked for residual Goat Meat Levy funds for research into using the Carla saliva test.

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25

MEMBER BENEFITS

The legal side of member benefits

By Jeremy Blandford General manager sales and marketing Farming is a highly complex business requiring the same legal and administrative capabilities and resources as any other profession.

Federated Farmers has a range of contracts and agreements specifically developed to cover all the legal requirements of running a modern agricultural business.

These documents have been tried, tested and have proven their worth.

As a Federated Farmers member you can access these at preferential rates.

Prices for members generally range between $50 and $70 for most documents, whereas non-members pay the full cost, which is between $150 and $200 depending on the document. As you can see, there is a huge backpocket benefit to being a member.

We know these documents work.

Tens of thousands are used every year by members, especially the employment and dairy agreements.

Members also have a further advantage over non-members.

They have access to free legal advice on the 0800 FARMING (0800 327 646) help line.

This is a popular service provided

WHAT CAN WE DO FOR YOU?

PAPERWORK: Legal contracts too confusing? Let Federated Farmers help you sort out what you need and what you don’t.

by the Federation with over 2000 calls a month, of which about 400 callers are seeking specific assistance on employment and legal matters through direct access to our legal partners.

Buying these documents is very simple. Just call the 0800 FARMING help line and our customer service team will arrange for the documents

to be posted or couriered to you.

Our field officers are also able to discuss what contracts and agreements you need for the smooth running of your farm.

■ By calling the Federated Farmers 0800 327 646 help line, you can make an appointment to talk to your local field officer, or make a document order.

Federated Farmers contracts and agreements include: ■ Employment Agreements for permanent, fixed term and casual work, employment application forms, leave applications, time, wage and holiday records, workplace drug and alcohol policy and farm data security agreements.

■ Occupational Safety & Health Policy and Manual with hazard and accident registers.

■ Agreements for leasing, growing and contracting for land, crops and stock, the sale and purchase of stock and equipment.

■ Agreements for dairy operations, 50/50 sharemilking, variable order sharemilking and contract milking.

■ Other documents available include visitor access protocols, remuneration survey reports, over-dimension extension certificates, log books and diaries.

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

MEMBER BENEFITS

Federated Farmers’ fantastic fuel offer

IN BRIEF

By Kim Webber Federated Farmers has announced a major agreement with Mobil Oil New Zealand which can help reduce the fuel costs of Federated Farmers members. ‘‘Reducing the cost of farm inputs is important,’’ Federated Farmers chief executive Conor English said. ‘‘What we’re talking about are per-litre discounts at Mobil service stations and truckstops. ‘‘Fuel is a five-figure item in most farm budgets, so reducing some of that cost is important. ‘‘I’d encourage members to learn more or to sign-up at 0800 FARMING (0800 327 646),’’ Mr English said.

Mobil Oil New Zealand country manager Andrew McNaught is equally enthusi-

PARTNERS: Federated Farmers and Mobil are teaming up to offer fuel benefits to Federation members.

FUEL SAVINGS OFFER

astic about the opportunities this new relationship with Federated Farmers brings to Mobil. ‘‘With a Mobilcard, farmers not only get a great discount they also get attractive credit terms. Mobilcard brings total cost-control of fuel expenses. ‘‘We’ve found this creates efficiencies and further savings for our business customers,’’ Mr McNaught said.

Mobilcard will be Federated Farmers’ onestop solution for fuel purchases at Mobil service stations and truck stops. Mobilcard’s online portal gives farmers the ability to track costs, such as monthly vehicle performance reports and fuel consumption. Improved fuel cost control, site locator and ability to order and change PIN numbers on-line may yield additional savings over and above per litre discounts. For more information, or to register, call 0800 FARMING (0800 327 646).

Membership with Federated Farmers is good for your farming business. It gives you access to the lobbying power of an entire industry and a team of professional policy advisors.

Major wins over the last three years include: ■ $252 million for rural broadband: The Government lifted its broadband spend from $48m to $300m because of Federated Farmers lobbying.

■ $70m savings on Gift Duty: An expensive impediment to farm succession scrapped after 42 years of lobbying.

■ $27,000 reduced cost of the Emissions Trading Scheme per farm: Lobbying on the Emissions Trading Scheme reduced the potential impact on individual farms to $3,000 per year compared to $30,000 in the original scheme.

■ To find out more about membership, call 0800 327 646 (0800 FARMING).

Ph 0800 327 646 www.fedfarm.org.nz November 2011 National Farming Review

27

FESTIVE WINE

Wine columnist Yvonne Lorkin reveals her festive top 50 wines for Christmas.

the pick of the

It’s no secret we make sensational SPARKLING WINE here inNew Zealand so if you want to inject some sophistication into your next soiree, you’ll be more than satisfied with these home-grown examples.

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bunch

QUARTZ REEF CENTRAL OTAGO METHODE TRADITIONNELLE ROSE NV, $35: Gorgeous trout-pink colour with vibrant cherry blossom, strawberry shortcake and toasted bagel aromas. Clean and elegant, it boasts seductive spritz, textural complexity and impressively rich length of flavour. Made from 100%

3 NAUTILUS ESTATE MARLBOROUGH CHARDONNAY 2010, $31: This is an exercise in restraint and elegance, showing nectarine, citrus and lemony loveliness, tangy, toasty texture and solid length of flavour. I’d love to try this wine again in a year’s time because I think it’s destined for great things. Available from fine wine stores or via

4 MOANA PARK HAWKE’S BAY VIOGNIER 2010, $20: Wow! I fell in love with this wine at the very first sniff. Intoxicating honeysuckle, orange zest, apricot kernel and jasmine aromas lead to a rich, tropical, succulent finish. It’s incredibly crisp and refreshing, yet feels weighty in the mouth.

Superb served with pad Thai or yummy stir-

GIBBSTON VALLEY RESERVE CHARDONNAY 2010, $32: Gorgeous tangelo and toast aromas merge with ripe stonefruit and tangy, tropical flavours. Rich and elegantly textured, this wine just keeps on giving with a deliciously enduring finish. Lovely stuff.

SACRED HILL WINE THIEF HAWKE’S BAY CHARDONNAY 2010, $30: Created from fruit sourced from the famous Riflemans vineyard out in Hawke’s Bay’s Dartmoor Vineyard, this chardonnay has downright sexy aromas of peach, buttered crumpets and honey with juicy, tropical intensity and freshness on the finish — perfect with

BRANCOTT ESTATE RESERVE MARLBOROUGH SPARKLING SAUVIGNON BLANC NV, $24: Hands down, this is the best example of the style I’ve tried in years. White gold colour, with a super-fine bead and mousse, it’s scented with sweet hay, white flowers and lemon. In the mouth it has dryness, delicacy and soft, prickly acidity fleshed out with creamy complexity and enduring length of flavour. Find it at fine wine

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6 FAIRHALL DOWNS SINGLE VINEYARD MARLBOROUGH CHARDONNAY 2008, $29: ‘‘Oh, that’s my favourite one!’’ squeals Yvonne Cloake, the office administrator at Fairhall when I ring her to request a bottle shot. ‘‘Why more people don’t drink chardonnay I’ll never know,’’ she says before hanging up the phone. My sentiments exactly — and this is a spectacular example, with enticing oaky richness sliced through with grapefruit, white peach and bursting with tropical fruit, cinnamon,

CRAGGY RANGE LES BEAUX CAILLOUX GIMBLETT GRAVELS CHARDONNAY 2009, $62: ‘‘2009 was a tough year for chardonnay; in fact, it came incredibly close to being a total disaster,’’ says Steve Smith MW. But clearly there’s some talent in the winery because the last version of this wine boasts delicate peach, spring florals and brulee aromas on the nose and a fresh, citrus-forward minerally elegance on the palate. Crunchy-fresh, it’s still very young so

10 FROMM VINEYARD LA STRADA MARLBOROUGH CHARDONNAY 2008, $32: A delicious, aromatic combination of custard squares, brandy snaps and brulee notes characterises this chardonnay. In the mouth it has incredible freshness and weight, with a hazelnutty complexity on the back palate. A lovely, lengthy finish makes it

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Whoever it was that said man cannot live on CHARDONNAY alone was clearly delusional, because life is just so much better when you’re sipping one of these sensational examples. Robust and ready for action, chardonnay is the most versatile varities and can handle pretty much anything a winemaker can throw at it, which is what makes it so fantastic.

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8 MILLS REEF RESERVE CHARDONNAY 2010, $24.95: Another outstanding chardonnay from Mills Reef, which has made a habit of bringing out the best of its Hawke’s Bay fruit. A wonderful nose of citrus and cream that leads on to a broad, expansive mouthfeel and layer upon layer of cream, fruit and

11 LOCHIEL ESTATE MANGAWHAI CHARDONNAY 2010, $25: Featuring pungent, punchy peach, pineapple and grapefruity aromas, this wine is loaded with toasty, juicy gorgeousness and it has a

12 SPY VALLEY ENVOY MARLBOROUGH CHARDONNAY 2008, $37: This is my type of chardonnay — big, bold and built like the proverbial brick outhouse.

Gorgeous grapefruit, peach and pure, perfectly balanced, oak aromas waft from the glass; and the power and pungency of the fruit flavours make it practically impossible to limit yourself to just one glass. However, incredible persistence of

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

FESTIVE WINE

the pick of the

bunch

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festive top 50

MISSION ESTATE GEWURZTRAMINER 2010, $14: This snappy little aromatic has real character and represents fantastic value for money. Lovely lychee, ginger and exotic spices merge with crisp tropical notes, a round, ripe mouthfeel and tangy length of flavour. Great stuff, and widely available.

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CHURCH ROAD RESERVE HAWKE’S BAY SAUVIGNON BLANC 2010, $30: What gets me excited about sauvignon blanc is when winemakers throw in gorgeous things such as wild yeasts, barrel fermentations and lees stirring. This wine has sweet almond, passionfruit, white peach and white pepper, fleshed out with honeydew melon. I absolutely love this wine and I implore you

ASTROLABE VOYAGE MARLBOROUGH GEWURZTRAMINER 2009, $24: How perfect is this wine? Let me tell you. Oozing classic lychee, ginger, white peach, rose petal and spicy quincelike characters, this gorgeous gewurz is also incredibly clean, fresh and sweetly succulent on the finish. Heavenly to drink. For

If there was ever a more perfect wine to go with that spicy Indian curry or your favourite Thai dish it’s GEWURZTRAMINER. So beautifully perfumed, so layered with exotic fruit and spice notes, so lovely in every way that it’s hard for me to resist if I see one on a wine list.

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SERESIN MARLBOROUGH GEWURZTRAMINER 2009, $30: Jawdroppingly sexy lychee, rose and ginger aromas and a lush, tangy burst of tropical gorgeousness greet every lucky sipper. I love this wine because it is fresh and vibrant, but essentially elegant and incredibly long and

PINOT GRIS can be as dry as a bone, tropical and juicy or super, super-sweet. So if you try one you don’t like, don’t assume they all taste the same — get back out there and give gris another go!

DOG POINT MARLBOROUGH SAUVIGNON BLANC 2010, $24: Funky herbaceous and minerally aromas meet ultra-tasty, tangy lime and passionfruit flavours in the mouth. This is Marlborough sauvignon with real character and charm — definitely worth an extra few dollars and perfect with crayfish and whitebait fritters (yes, together in a fritter, yum!). Find this at

SUMMER SCREAMS SAUVIGNON BLANC AND GREAT sauvignon can be found at every price level, so why not mix it up by ditching the old favourites and experiment with something new occasionally. Not sure why the world loves our sauvignon so much? Taste any of these and you’ll find out.

AMISFIELD CENTRAL OTAGO SAUVIGNON BLANC 2010 $25: If you’re thinking sauvignon from these seriously southern climes would be lean and green, then think again. Amisfield’s has ripe, tropical pineapple and passionfruit aromas with basil and peapod notes. It’s vibrant, refreshingly zesty and has a lovely, satisfying mouthfeel and superb length of

OLSSENS VINEYARD GEWURZTRAMINER 2010, $25: Clean, bright Jazz apple, rose and delicate lychee flavours, combined with elegantly spritzy acidity, rich, spicy fruit weight and a clinging, silky finish makes this absolutely delectable. I want to win Lotto and bathe in it. Or at least get paid enough to afford really good takeaway Thai food to

SAINT CLAIR GODFREY’S CREEK RESERVE MARLBOROUGH PINOT GRIS 2010, $25: Nashi pear, creme caramel and quince aromas lead to a silky, oily, citrus and appleskin character on the finish.

A combination of crispness and richness makes this a fantastic autumn sip — just don’t over-chill it.

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URLAR GLADSTONE PINOT GRIS 2010, $28: Biodynamically produced and boasting lovely nashi, granny smith and marshmallow notes. Hints of sweetness, but a clean, refreshing

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NEUDORF MOUTERE PINOT GRIS 2010, $29: Punchy and pungently flavoured with juicy pear, nectarine, quince and almond meal characters, rounded out with solid, crisp acidity — it’s just super-lovely and one that I’ll definitely be buying again.

23 DURVILLEA MARLBOROUGH PINOT GRIGIO 2010, $14: Crisp apple, pear and spicy, strudel-like flavours and zingy, quince-like length of flavour. Really juicy, fresh and super yummy. Perfect with sauteed scallops or smoked chicken

Ph 0800 327 646 www.fedfarm.org.nz November 2011 National Farming Review

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FESTIVE WINES

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the pick of the

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TE AWA LEFTFIELD MERLOT MALBEC 2009, $26: Swooninducing cocoa, dried thyme, pepper and ripe plum aromas lead to a burst of plush, spicy berryfruit, espresso and smoky oak notes in the mouth and leaves deliciously meaty finish.

Easy to see how this wine won the trophy for champion cabernet sauvignon or merlot/ cabernet blend at last year’s Air

bunch festive top 50

MOUNT RILEY MARLBOROUGH RIESLING 2011, $16: Seductively perfumed with white flowers, lime, white peach and green apple. In the mouth it is incredibly crisp and succulent with just a tiny squirt of sweetness — and stunning length of flavour. It’s a brilliant wine for the price and

I adore RIESLING so much that I have a list of bottles that I want stuffed into my coffin when I’m buried.

But on a more lively note, great riesling will put the spark back into even the most tired, jaded tastebuds — and it’s the perfect wine to kickstart those late afternoon soirees this summer.

MATUA SINGLE VINEYARD MATHESON HAWKE’S BAY MERLOT 2009 $69: Ruby-hued and exhibiting saucy aromas of plum compote and chocolate while in the mouth, it has succulent cherry, blackberry and enticing spices. The oak is beautifully integrated, the acidity is elegant, the alcohol is warming, and the

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25 MISSION ESTATE HAWKE’S BAY RIESLING 2010, $16: Already a gold medal winner, this snappy little riesling is scented with beeswax, honeysuckle, and white peach, while crisp, clean lemon-lime flavours explode in the mouth. It’s just sensational value for money and wickedly good with sweet chilli

ALPHA DOMUS AD THE AVIATOR 2009, $57: Glossy, magenta-flecked with crimson, it has exotic plum blossom, blackberry and cocoa aromas and one sip shows multilayered texture in the mouth. It is warming, velvety and long on

These various combinations of MERLOT, CABERNET FRANC, CABERNET SAUVIGNON, MALBEC and PETIT VERDOT are often referred to as Bordeaux Blends because in that famous region in France you are only allowed to make red wines from those varieties.

Here in godzone we are now creating deliciously complex, elegant yet muscular red wines from these varieties which are so astonishingly good they’re rivalling the French.

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GEORGES ROAD BLOCK THREE WAIPARA RIESLING 2010, $23: 1/2 A few years making wine in Germany clearly infected Kirk Bray with the riesling bug, and this superb example has subtle Jazz apple, feijoa and lip-smacking lime notes, underpinned with beautifully balanced acidity and superb

FROMM MARLBOROUGH RIESLING SPATLESE 2009, $30: Spatlese is a German term used to describe light, lateharvested wines and this is an absolute beauty. Subtle, mineral, lime and beeswax aromas lead to an incredibly concentrated burst of Granny Smith apple and tangy confectionary with a clean, citrus-fresh snappy finish. At 78 g/l residual sugar, the sweetness is refreshing and the alcohol reveals a very demure 7 per cent which I love. Hands down one of my favourite

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27 PEGASUS BAY WAIPARA RIESLING 2009, $28: Pungent aromas of lemon verbena, lime, beeswax and honeysuckle combine with perfectly balanced, tangy citrus in the mouth and a sprinkling of lemon zest with a hint of

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TERRACE EDGE WAIPARA RIESLING 2010, $18: Wow! Delicious jazz apple aromas and a super-tangy melange of apple crumble, pear and squinty quince flavours burst open in the mouth. I really like the crispness and elegant length of flavour in this wine, too; it’s just fantastic with

MATARIKI QUINTOLOGY 2007, $80: One of New Zealand’s best-known red wines, this example of Gimblett Gravels gorgeousness is released only when the fruit is exceptional. A vintagedependent blend of merlot, syrah, cabernet sauvignon, cabernet franc and malbec, this version bursts with dried herbs and exotic spices dusted over juicy, ripe plum and dense berryfruit. I love the hint of char and iodine that hits before the silky, warming mouthfeel,

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MISSION JEWELSTONE GIMBLETT GRAVELS CABERNET MERLOT 2009, $40: It feels a little strange describing a wine made by a company founded by French missionaries as, well, sexy — but there’s no other word that fits better.

Scented with exotic, enticing plum, pepper, Christmas-pudding spices, cocoa and soft, smoky tones. In the mouth it is succulent, inviting, and holds beautiful fruit weight along with perfectly powdery tannins, lovely oak notes and stunning persistence of flavour. This would be why this wine stunned the international wine press by coming third in an international blind tasting

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CRAGGY RANGE ‘THE QUARRY’ GIMBLETT GRAVELS CABERNET SAUVIGNON 2009, $64: The ‘‘Prestige’’ cabernet from Craggy Range was always rather stunning, yet the 2009 is something else entirely. It could be the result of using special new cabernet clones from Bordeaux brought to New Zealand by Kim Goldwater. The Craggy team love them and I can see why. Glossy garnet-black and perfumed with dried herbs, wild mint and dark chocolate, it boasts bold black fruit, tight oak and a hint of medicinal spice. It’s juicy and chewy with

VILLA MARIA RESERVE GIMBLETT GRAVELS GRENACHE 2007, $60: I’ve been waiting for a 100% Grenache from Hawke’s Bay since forever! Heady roasting pan juices, rosemary and dusty, earthy aromas lead the way to spicy plum, mace and amazingly silky, earthy, blackberry and cherry smoke. It’s a muscular, meaty wine – and is just sensational with

35 36 CYPRESS HAWKE’S BAY MERLOT 2010 $21: Lifted spicy plum, raspberry and deep cherry and cocoa aromatics, followed by a lovely chocolate, smokey character on the finish, this is a fantastic, fresh, beautifully balanced red that will definitely impress. I think it’ll cellar well for another four to five years if TI POINT TWO MERLOT CABERNET FRANC 2010, $22: Matakana winemaker Tracy Haslam has created a really tasty wine with bright berryfruit, smoke and pepper notes on the nose, followed by lovely plush, fruit-forward tannins and a ripe, robust finish. A

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National Farming Review November 2011 www.fedfarm.org.nz Ph 0800 327 646

FESTIVE WINE

the pick of the

bunch

43 SQUAWKING MAGPIE ‘THE STONED CROW’ GIMBLETT GRAVELS SYRAH 2009, $40: Inkydark and packed with concentrated plum, cocoa, sexy spices and lifted driedherb aromatics. In the mouth it is luscious, juicy and elegantly flavoursome. The tannins are solid, present yet beautifully integrated and contribute to stunning length of flavour. This is a superb wine which is built for the long haul. There’s precious little available so visit www.squawking

festive top 50

Make no mistake New Zealand PINOT NOIR has fans stretching the four corners of the globe.

Why? Because we produce hauntingly beautiful lush, juicy flavoursome styles that are ultimately memorable.

Plus we’re so good at producing mouth-wateringly tender lamb that it stands to reason we should be able to create the perfect wine to match.

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44 2010 MUD HOUSE ESTATE CENTRAL OTAGO PINOT NOIR, $36: Opulent red fruits, cocoa, spicy, earthy flavours wash over the palate finishing with damson plum and black tea notes. This is one lovely pinot with impressive length of flavour and fantastic cellaring potential. You can

SYRAH is a rising star amongst our reds and just one whiff of its distinctive pepper, violet, blackcurrant and cocoa notes will tell you why it is fast becoming a favourite. Syrah is exactly the same grape as shiraz — not sure why the Australians call it shiraz, but it’s a grape whose aromas and flavours are incredibly climate-sensitive.

PASQUALE WAITAKI VALLEY PINOT NOIR 2009, $49: Sweet cherry, plum, black tea and rhubarb aromas lead the way to lovely, juicy, tangy yet earthy spicy layers of flavour. A great wine from a fantastic new pinot region and superb with spicy duck casserole. www.pasquale.co.nz

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FROMM LA STRADA MARLBOROUGH PINOT NOIR 2008, $36: This is a great wine. Meaty, savoury aromas, dried herbs, cocoa and floral notes make it difficult to take your nose out of the glass. Sip it and its presence, weight and layers of spicy cherry-rich complexity are revealed, along with a beautifully balanced and rewarding

JUDGE ROCK CENTRAL OTAGO PINOT NOIR 2007, $30: This tiny wee pinot producer barely features on the national radar, but I’m hoping that’ll change because man, can it make the good stuff.

Its 2007 drop sees earthy spices, sandalwood and forest-floor notes hit the nose, and a seam of savoury mushroom cut through the cherry and dried-herb flavours on the way to a smooth, slippery, persistent finish. Perfect with chargrilled venison

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RIPPON TINKERS FIELD MATURE VINE PINOT NOIR 2009, $95: Yes, you are right — it is that price. But I guarantee if you try this you’ll quickly realise that the last thing you spent 90 bucks on didn’t give you half the satisfaction as just one sip of the Tinkers Field. Biodynamically produced from one of the oldest pinot noir sites in Central Otago, it is scented with sweet rhubarb, cherry chocolate and earthy spices. In the mouth it has lush intensity of flavour, juicy red fruits and black tea and finishes with soft, delicately prickly tannins and plush persistence of

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45 ESCARPMENT PAHI MARTINBOROUGH PINOT NOIR 2009, $65: This is one of a select five limited-edition, site-specific wines produced by Lord Larry McPinot, and it’s a monster. Sexy cherry and intense dark chocolate merge with shitake mushroom and delicious dried herb notes. Despite packing a punch in the mouth, the tannins are silken, lush and lovely with rock-solid structure that will last the long haul. Not a

AKARUA ‘RUA’ CENTRAL OTAGO PINOT NOIR 2010, $26: Supersexy aromas of dark chocolate, cherry and smoky oak open the door to deliciously balanced, deeply juicy cranberry and plum flavours and a rich, satisfying length of flavour. Great wine to drink now, but I suggest buying a case and tasting a bottle every six months just to check on its

MISHA’S VINEYARD ‘‘THE HIGH NOTE’’ CENTRAL OTAGO PINOT NOIR 2009, $45: Beautiful fresh berries, cherries and chocolate notes on the nose, followed by ripe raspberry, baked strawberry, rhubarb and prickly fresh baking spices on the palate. Soft, yet clinging tannins make it slip down leaving a lovely warming texture in its wake. Delicious with sticky rich duck casserole.

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MISSION ESTATE HUCHET SYRAH 2007, $100: Only 1657 bottles were produced of this wine, which was five years in the making and blended from two parcels of fruit from targeted vines in Mission Estate’s vineyard. Impenetrable and glossy in the glass, it has elegantly spicy aromas of dark chocolate, pepper, rose and sweet smoke, followed by ripe plum and berryfruit flavours and an addictive velvety texture. It’s an incredibly sexy, saucy syrah (I feel

49 WOLF BLASS BLACK LABEL CABERNET SAUVIGNON SHIRAZ 2005, $150: Produced from fruit sourced from the Barossa Valley, Langhorne Creek and McLaren Vale, the 33rd vintage of this wine is considered the epitome of what the team at Wolf Blass can achieve with blends of cabernet and shiraz. Having just collected the George Mackey Memorial Trophy for Australia’s Export Wine of the Year out of more than 18,000 wines, you’d expect Wolf Blass’ flagship blended wine to be a tad smart. It’s so much more than that, it’s swoon-inducingly succulent with concentrated spices, seasoned, smoky oak and strong, mouth-coating cocoa notes.

Rock-solid tannins wrap themselves around a firm

JULES TAYLOR MARLBOROUGH ROSE 2010, $21: With its superpretty, ruby-pink hue, this rose looks as gorgeous as it smells. With raspberry, watermelon and creaming soda aromas plus a burst of phenomenally rich, clean, red berryfruit, this is one heck of a drop that perfectly suits the season. Available from Glengarry and Liquorland

National Farming Review, Friday November 11, 2011

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Ph 0800 327 646 www.fedfarm.org.nz November 2011 National Farming Review

35

INSIDER

Parliament Federated Farmers is committed to ensuring the farmer’s voice is heard in Parliament.

Once the new government has been selected the Federation will present the following submissions to Parliament’s select committees: ■ Local Electoral Act Amendment Bill – awaiting first reading ■ Spending Cap (People’s Veto) Bill – awaiting submissions.

We have recently submitted on the following Bills and inquiries, which are still before select committees: ■ Regulatory Standards Bill ■ Commerce Select Committee Inquiry into Milk Pricing.

We have submitted on the following Bills, which are before Parliament: ■ Biosecurity Law Reform Bill ■ Crown Pastoral Land (Rental for Pastoral Leases) Amendment Bill ■ National Animal Identification and Tracing Bill ■ Road User Charges Bill.

We are also engaging with government departments on various reviews and consultations. For example, over the coming weeks we will be working on the following reviews: ■ Review of Agricultural Transport Rules, Ministry of Transport ■ Review of Herd Scheme Elections, Inland Revenue Department ■ Review of Local Government System, Department of Internal Affairs ■ Review of Raw Milk Regulations, Ministry of Agriculture ■ Inquiry into International Freight Transport Services, NZ Productivity Commission ■ Consultation on Road User Charges Regulations, Ministry of Transport ■ Consultation on assessment of the use of Organophosphates and Carbamates, Environmental Protection Authority.

THE OFFAL PIT

ONE GREAT TRY: All Black and farmer Tony Woodcock scores the only try of the Rugby World Cup final match between New Zealand and France, held at Eden Park, Auckland.

farmer in Kurow.

Federated Farmers also noted another farming, former All Black was taking part in the tournament — Canada’s coach Kieran Crowley.

The winners of the Freeview competition in the September edition of the National Farming Review were Tim and Joanne Rout of Whangarei. Freeview will be contacting you shortly. Congratulations!

KIERAN CROWLEY

Book review

Castlepoint by Lorain Day, Harper Collins RRP $49.99

Happenings

■ November 16-17 — Federated Farmers National Council, at Westpac Stadium, Wellington ■ November 26 — General election ■ December 8 — Official Cash Rate and Monetary Policy Statement ■ December 13-14 — Federated Farmers Board meeting ■ December 25 — Christmas Day

Two high-profile staff members recently left a central North Island regional council stating it had lost its nerve and way.

Horizons Regional Council is working on what I would describe as an holistic approach, ensuring a balance between the environment, economic prosperity and social and cultural wellbeing.

However, the staff in question felt this was a terrible direction.

They wanted to focus on the environment and the environment alone.

For supposed Resource Management Act experts, they seem to have missed the point that the Act takes all four aspects into consideration for a very good reason.

In my travels, I have noticed countries with good economies can, and often do, look after the environment. Those with poor economies don’t have much money to spend on writing and enforcing environment regulations.

Policies which harm a region’s economy result in the area becoming less economically viable, leading to a slippery slope of falling property values, rising unemployment and sinking wages.

None of this is conducive to interest in the environment or people being able to pay the rates which councils rely on to fund their environmental work.

When economies suffer, crime and other social malaises generally increase and rectifying social wellbeing takes priority over the environment.

The reality is that regional councils have a lot in common with farmers, who are familiar with balancing competing demands.

Among other things, farmers deal with economic pressures, infrastructure upkeep and installation, animal welfare, staff welfare and, and environmental issues.

Farmers know if you focus on only one area, the others suffer and they won’t get the ideal outcome for the one they were fixated on.

Perhaps every senior council employee should run a farm for a month.

Then they might grasp the need for balance.

WARMING UP: Andrew Hore in action during training.

Rugby World Cup farming heroes The celebrations of the All Blacks win over France are still fresh in the New Zealand consciousness and Federated Farmers is especially proud of those All Blacks who are also farmers — Tony Woodcock and Andrew Hore.

All Black captain Richie McCaw also has a farming background — his dad is a

Famed British seafarer Captain James Cook sighted a distinctive rocky headland in 1770, recording it as Castle Point.

English settler Thomas Guthrie established one of New Zealand’s best known sheep and cattle stations there in 1847.

The history of Wairarapa’s iconic Castlepoint sheep and cattle station since that date has been detailed in a new book.

It is the first of a series on the history and future of some of New Zealand’s most well-known farming properties.

Castlepoint station is owned by American immigrants Anders and Emily Crofoot, a couple who fell in love with the land in 1998. Since then the determination and forward thinking of the Crofoots have ensured Castlepoint is well placed for the future.

With stunning photographs throughout, this is an easy reading insight into station life over the years.

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Sheep and Beef farmer Rob Deal from Wairarapa rears bull calves, a practise involving extensive expenditure before it generates any return on investment. According to Rob, his rep Jason’s indepth understanding of farming systems and the nuances of his business helps him control cashflow and stay on schedule.

He says that Jason and the animal health plan formulated by PGG Wrightson animal health experts gives him the confidence that he is rearing some of the best product in New Zealand.

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