Fed Farmers by APN Media Services

OCTOBER 2012

Christchurch donations: Where all the money went P23

NATIONAL POLICY Farmers appeal Federated Farmers appeals against Horizons Regional Council’s One Pla nP3

Safe in the air Farmers need to ensure the future of our agricultural aviation industry P5

Farmers necessary Land and Water Forum chairman discusses freshwater objectives

P18

REGIONAL POLICY Recipe for water Drafting rules will not necessarily clean up waterways

Power struggle

THE BIG WATER ISSUE Farmers face big risks — p10

Work to block Transpower’s proposed buffer zones continues P8

INDUSTRY GROUPS Crime fighters Federated Farmers Goats Industry Group now represents all sectors P16

Goats group grows Sensible steps and reporting incidents could drastically reduce theft P15

BOOK GIVEAWAY Federated Farmers has a signed copy of photographers’ Chris Morton and Tony Bridge’s Out There: North to give away. To enter send your name, address and telephone number to competitions@fedfarm.org.nz

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National Farming Review October 2012 www.fedfarm.org.nz

Ph 0800 327 646

PERSPECTIVE

One Plan to rule them all

INSIDE Feature:

Farming’s water issues

Regulars: Perspective . .

National Policy

3-6

Counterpoint

Regional Policy

Economy

Employment Weather

Dairy

Meat and Fibre

16-17

Other Industry Groups Insider . .

■ For farming queries, call 0800 327 646

Managing Editor: Conor English Ph: 04 494 9189 cenglish@fedfarm.org.nz Editor: Felicity Wolfe Ph: 04 494 9181 fwolfe@fedfarm.org.nz Memberships: Miriam Bravenboer Ph: 0800 327 646 mbravenboer@fedfarm.org.nz Advertising Sales Manager: Matthew Sherry Ph: 07 343 6881 matthew.sherry@apn.co.nz ■ ISSN 1179-4526

Farmers have moved forward with water practices, improving their sustainability and environmental impact. It’s time councils did the same. water issue is now front and centre for all farmers; it is certainly our number one focus here at Federated Farmers. This is one of my issues with BRUCE WILLS Horizons Federated Regional CounFarmers president cil, the One Plan and the very disappointing decisions that have come from the Environment Court. The One Plan has now been under action for longer than I have been a farmer. While One Plan has been working its way through disputes and courts, costing millions of dollars, farmers have been getting on with improving practices around water and water management. Just look at Taranaki Regional Council — a model for innovative, nonregulatory, environmental improve-

I am against heavy-handed regulation. It is expensive, inefficient and, of course, bureaucratic. It does nothing to build good working relationships between councils and their ratepayers. To date, I have seen no evidence that heavy-handed regulation actually improves water quality. What improves water quality is enthusiastic landowners working with positive and progressive councils to make a difference. I am for a growing economy, offering jobs for its young and increasing incomes for its people. Farming has a big part to play in this. I am also for environmentally sustainable farming. Profitability and sustainability go hand-in-hand. A bit like councils and rates; you cannot have one without the other! Yes, we do need to do better with our water and our environment, but one thing I do see in my role is the encouraging progress that farmers are making. Attitudes have changed and action is being taken. Sure, things may not be happening as quickly as some would wish, but changing habits and actions does take time. What I know for certain is this whole

The One Plan has now been under action for longer than I have been a farmer. ment. I am told the region’s riparian planting programme has seen over 2 million plants in the ground, with a further 500,000 native plants ordered for next year’s planting. All this without any heavy-handed regulation and without the considerable costs that go with consents and bureaucracy. Does the neighbouring council and the Environment Court not realise things have changed? Attitudes and actions have moved on. Farmers now get it and want to work with progressive councils to do better. Heavy-handed regulation is not needed, is not welcome and is not sensible.

The future ain’t what it used to be American baseball coach Yogi Berra famously said ‘‘the future ain’t what it used to be’’. When it comes to water in New Zealand, he’s right. Right now, everything to do with water is at play. The laws and rules around its ownership, allocation, management, quality and storage are all under review. What happens in the next few months will determine the next 100 years. This is complex, so we must get it right. There are huge risks, not only for the farming community, but for all New Zealanders. We care about the environment and a prosperous future. We need both. The Government has recognised the importance of water to the economy with the allocation of $435 million to water storage infrastructure. Alongside this, there are local government reforms seeking to change councils’ focus, while the Resource Management Act is also to undergo further amendments. The National Policy Statement (NPS) on fresh water management was passed last

year. The Land and Water Forum is trying to interpret it to inform further law change. In the meantime, Horizons Regional Council, Otago Regional Council CONOR ENGLISH and EnvironFederated ment Canterbury Farmers chief have produced executive officer plan changes seeking to implement the NPS. Despite best efforts, it could be said none have got it right. Diffuse nutrient discharges are not the same as point source discharges and the Overseer management system is not a water meter. Federated Farmers is involved in all of this. The focus needs to be on finding solutions, based on sound science and

profitable and sustainable farming. Farmers are custodians of the land and water, harvesting for the benefit of today and future generations. They want to leave it better than they found it. While some still need to pull their socks up, farmers have spent hundreds of millions of dollars putting in effluent systems, excluding stock from waterways, measuring fertiliser and investing in more efficient irrigation. That investment has allowed export growth, earning money to pay the bills for hospitals, schools and other services. It provides jobs and has improved the environment. Water-quality measures must include all those whose discharge into rivers, including places like Palmerston North. There is no free lunch. When it comes to water, it is critical our whole society gets the balance right, does not overreact and throw the baby out with the bathwater. The future may not be what it used to be, but we need profitable and sustainable farming for the benefit of all New Zealand.

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October 2012 National Farming Review

NATIONAL POLICY

One Plan one step too far By Felicity Wolfe Last week, Federated Farmers appealed the Environment Court’s decision on Horizons Regional Council’s One Plan. As it stands, the plan threatens agriculture’s ability to operate profitably in the region. Federated Farmers Manawatu-Rangitikei provincial president Andrew Hoggard says the current version would poorly serve the community. He says the Federation has identified several points of law it believes have not been properly considered. ‘‘This plan has been seven years in the making, but for all that, the end result is disappointing for farmers and the primary sector in general,’’ Mr Hoggard says. The plan was always an ambitious project. It stirred up concern from many interested in resource management, environmental sustainability and primary production when it was notified in May 2007. From the outset the primary sector had serious reservations. Perhaps most relevant were practical difficulties in implementing the strategy and the associated rules. ‘‘There were numerous reasons why the initial rules were impractical and inappropriate, but after a lengthy hearing process the decisions version released in 2010 was significantly changed from the notified version by the independent commissioners,’’ Mr Hoggard says. The changes resulting from the submissions and hearings processes were received more favourably by farmers. In many instances Federated Farmers indicated it was relatively comfortable with the decisions version of the plan. The

SUSTAINABLE SOLUTION NEEDED: Horizons region farmers want to improve the quality of rivers, but Federated Farmers fears the regional council’s One Plan could regulate farmers off the land, which would not help them, the community or the environment.

Federation became involved in the appeals process and extensive mediation throughout 2011, but there were still a number of matters to be put before the Environment Court. Federated Farmers, along with the other primary sector groups including Horticulture New Zealand, Fonterra and Ravensdown, represented the interests of the primary industries in response to the positions put forward by Fish and Game and Department of Conservation. Horizons took some middle ground. The Environment Court released its One Plan findings on September 4. The court’s directions for the water chapters, as well as some additional changes to the biodiversity and land chapters, make the plan similar to the 2007 notified version.

For farmers, the water chapters of the notified version had significant shortcomings. Perhaps the most important was the inability to apply the rules outlined in these chapters to many intensive land-use enterprises. This is because, despite all intensive land uses being captured by the rules, the tools to apply and monitor the rules are not applicable to many primary industries. The re-introduction of resource consent requirements for other intensive land uses, including cropping, commercial vegetable production and irrigated sheep and beef, is hugely significant to the region’s primary sector. Many farmers recognised throughout the One Plan process that an all-in approach to managing water quality was the most appropriate mechanism.

However, if land use is to be managed in a catchment-wide approach, the tools for that management must be fit for purpose, expectations for water quality must be realistic and farming must be able to continue to ensure the economic and social wellbeing of those catchment communities. The plan as it has now emerged has: ■ A nitrogen-leaching loss limit assigned to existing and new intensive land uses, based on the land-use capability of the soil ■ A sinking lid on nitrogen-leaching loss over 20 years ■ Requirements on farmers to get consent to farm where they have existing intensive land use in the priority water management zone, or if they seek new intensive land use anywhere in the region ■ Indigenous biodiversity managed at a regional, rather than district, level. Although all farmers in the region are affected by the One Plan, some are more directly affected than others. For example, it is likely that, given production constraints and limitations to future land use, this plan will cause the value of all farm land in the region to drop. ‘‘This is my interpretation of the One Plan,’’ Mr Hoggard says. ‘‘All other parties have also been working out what the plan will mean to their businesses and Horticulture New Zealand also lodged an appeal. ‘‘At this stage there is considerable uncertainty about how the plan will be implemented, but if the plan is not practical to apply, it won’t work,’’ he says. ‘‘The administrators of the plan depend on land-owners taking action so let us hope that, out of necessity, common sense will prevail.’’

Livestock tax changes will affect many farmers By Nick Clark Federated Farmers general policy manager The Government has introduced a Bill expanding its Budget 2012 legislation on livestock tax, which is likely to have implications for many farmers. Herd scheme elections were made irrevocable from August 18, 2011, preventing farmers from taking advantage of livestock value fluctuations to receive unintended tax breaks. The Inland Revenue Department (IRD) estimated these would have cost the

Government $275 million over six years had the rules not changed. The new Bill provides a little more flexibility around exiting the herd scheme. The Government has agreed to allow farmers to make an election to a costbased scheme if they change their farming regime from breeding to fattening. The useful ‘alternative valuation option’ will continue to be available. The increases in the number of a class of livestock for which a herd scheme

election has been made would not need to be valued under the herd scheme. In recent years some accountants advised farmers to use the election available to those ceasing farming and selling their livestock. Sales were made to ‘associated persons’, usually a company, without any change in economic ownership. IRD is considering auditing some cases. Therefore, the Government has decided that from March 28, 2012, purchasers in ‘associated party transactions’ must adopt the vendor’s herd

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scheme elections and base herd numbers. Federated Farmers was concerned about the potential impact on farm succession where genuine sales are made to children or grandchildren. The Government listened and included an exception when there is a complete inter-generational change of ownership. To qualify, the vendor must cease farming and the recipients cannot have had previous interests in the livestock. Another change is the combination of the friesian and jersey dairy classes and the red and wapiti deer classes.

National Farming Review October 2012 www.fedfarm.org.nz

Ph 0800 327 646

NATIONAL POLICY

MMP rule changes expected By Felicity Wolfe and Nick Clark Following last year’s referendum, where a narrow majority of New Zealand voters chose to retain the Mixed Member Proportional (MMP) voting system, the Electoral Commission is now reviewing how the system works. Submissions have closed and the Commission will present its recommendations to the Ministry of Justice at the end of the month. Federated Farmers did not submit on the review, but is watching the process with interest, president Bruce Wills said. ‘‘My role has highlighted the absolute importance of having a strong rural voice in Wellington,’’ Mr Wills says. It is hard to say if the commission’s proposed changes will directly benefit rural New Zealand, which has seen a steady decline in representation. While there is some historic basis for thinking that a First Past the Post-style system would increase rural representation, it is unclear that would have been borne out had FPP been reinstated. Some 86 per cent of New Zealanders now live in urban areas and it is hard to define what constitutes a ‘rural MP’. Federated Farmers is more focussed on communicating effectively with all levels of government, both central and local, to ensure farmers’ voices are heard.

REVIEWING THE OPTIONS: With voters choosing to stick with the MMP electoral system last year, a review is underway to see how it could be improved.

‘‘With ongoing urbanisation it is more important than ever to have high-calibre leaders speaking up for rural New Zealand,’’ Mr Wills said. There has also been a lengthy submissions period allowing people to have their say on what they like, or want to see changed, about MMP. There is a prevailing mood, among both the submitting public and the commission, to reduce the threshold for parties to gain list seats from 5 to 4 per cent of the national vote. Five per cent is seen by some as too high a hurdle, while others believe a lower threshold would see many small parties gain seats, fracturing parliament.

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Another likely change is when a party wins an electorate seat, but fails to meet the threshold, it will no longer receive any list seats, thus eliminating the need for ‘overhang’ seats. The rule is regarded by some as encouraging ‘tactical voting’, while others believe it a reward for winning an electorate. Federated Farmers believes candidate selection is paramount, regardless of the electoral system. To ensure there are more rural MPs coming through, the rural community (including Federated Farmers) must encourage political parties to select rural candidates in winnable electorates, or give them high rankings in party lists.

This requires rural people to be wellrepresented within political party membership and for rural advocates, such as Federated Farmers, to persuade all political parties of the merits of having more rural people in their caucuses, just as other groups of society do. One way the Federation helps nurture future rural leaders is through its leadership courses. These courses are designed to support and encourage farmers to become more active in their communities and give them confidence to step up and speak out. Many rural leaders over the years have benefited from the Federation’s training and today’s courses are geared around the needs of the ‘modern farmer lobbyist’. ‘‘To have competent and capable rural leaders we must ensure good training opportunities are available,’’ Mr Wills said. ‘‘Federated Farmers runs numerous courses, there is also the Nuffield programme, the Kellogg’s leadership course and the more recently established Escalator programme, run by the AgriWomen’s Development Trust, all helping to ensure the rural voice is heard.’’ The Federation recognises simply having greater rural representation would not guarantee a cohesive ‘rural voice’, nor better outcomes for rural people. Instead of focussing on electoral systems, the Federation focuses on strong advocacy for rural communities.

Slowing pest spread By Mark Ross Federated Farmers general manger policy and advocacy A key part of New Zealand’s biosecurity relies on domestic pathway management — slowing down or restricting the spread of pests to other parts of the country. When moving from one place to another, a number of ‘‘hitch-hikers’’ can come along for the ride, on cars, machinery, sports equipment or even clothes. To find measures to decrease pests being transported on large machinery, the National Pest Control Association (NPCA) has established the ‘‘Machine Hygiene Forum’’. This group involves regional council biosecurity managers, the Ministry for Primary Industry, rural contractors and Federated Farmers targeting rural contractors and large machine operators

moving from region to region. A recent study showed a contaminated machine is likely to have at least one hitch-hiker pest on board at any given time. Soil on one bulldozer in Canterbury contained seeds from 73 different weed species. Prevention is the best medicine. Simple hygiene steps, such as removing visible soil or plant material before sending machines to new locations, go a long way to solving the problem. The didymo project is a prime example. The simple message of ‘‘check, clean, dry’’ successfully raised the profile of didymo and minimised spread. Federated Farmers has emphasised the importance of keeping any rules voluntary, with the industry selfmanaging implementation. The intention is to initially test the model in one industry, then extend to others.

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October 2012 National Farming Review

NATIONAL POLICY

Best aviation practice required By John Sinclair NZAAA executive officer sinclairjg@gmail.com New Zealand farmers have saved about $200 million in additional aviation compliance costs since December, thanks to work done by the New Zealand Agricultural Aviation Association (NZAAA) and Federated Farmers around the AIRCARE Accreditation Programme. NZAAA is now focused on improving both pilot and environmental safety, by getting farmers to comply with the programmes’ best practice standards. Compliance with these is an important step in ensuring agricultural aviation services can continue. AIRCARE has been running for just over 12 months and already one regional council and LandCorp require the accreditation for aerial operators. These organisations want consistent best practice, which includes no adverse effects from aerial discharges, such as fertiliser in waterways. Importantly for the industry, it also means no aircraft accidents. There are four areas where farmers can help pilots comply with AIRCARE. Firstly, all regional councils require neighbours to be notified before aerial spraying, but it can be unclear who is responsible for contacting them. Farmers need to take ownership of

this and avoid the 90 per cent of alleged spray drift claims made by people who were not notified. Pilots may treat 20 farms a day, so it is impractical for them to do this. Secondly, while fertilisers are improving, fertiliser dust is still an issue. The Resource Management Act is clear that discharging contaminants to water is a breach, but fine dust is impossible to control. Three pilots having been fined for drifting fertiliser dust into water in the Bay of Plenty. For pilots to predict where the product goes once released, the particles must be a suitable size to have predictable ballistics. This costs $45 per tonne to achieve and fertiliser companies will not do it unless directed, by their farmer shareholders. The Fertmark code assuring the fertiliser’s chemical make-up should also address its physical properties to eliminate the fines. Aerial top-dressing is only sustainable as long as regional councils have insufficient resources to enforce the Resource Management Act. The next issue is poor farmer buyin to the Top-dressing Guideline that was developed jointly by Federated Farmers, CAA, NZAAA and the former Department of Labour. Repeated trips to a property, be-

TAKE CARE: Farmers following the best practice standards set out in the AIRCARE accrediation programme are helping agricultural pilots work safer and better.

place. Best practice is to tie overhead wires down to a fence so they protrude no more than one metre above the fence. Farmers must provide safe workplaces for all contractors under the Health and Safety in Employment Act (HSE) requirements and have been given clear warning that HSE enforcement action will follow the next farm wire strike.

cause the wind will blow the fine dust the wrong way or because the bin leaks, is too small, or does not exist at all, costs the farmer dearly. Lastly, CAA’s Health and Safety in Employment Unit sent a letter to Federated Farmers last year saying stringing electric fence-feeder wires, or any other wires, across gullies then requiring aircraft to operate at low level is not providing a safe work-

Rural fire service roles under review By Nick Hanson Federated Farmers policy advisor

WHO YOU GONNA CALL?: Rural and volunteer fire crews around the country make an important contribution to everyone’s safety and wellbeing.

services’ funding sources. One contentious point is the role volunteer fire services have as ‘firstresponders’ to non-fire incidents. Cur-

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element to fire prevention and suppression by a contribution to funding from general taxation. ‘‘This funding recognises that saving lives has no relationship to the value of your property or whether you’re insured.’’ Fire policy was last reviewed in 2007. At that time there were several proposals, including a merger of the urban fire service and rural fire authorities which Federated Farmers opposed. The then minister, Rick Barker, withdrew the department’s recommendations after primary production and insurance stakeholders disagreed. The Fire Review Panel’s final recommendations will go to the Minister of Internal Affairs, Chris Tremain, in December.

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Federated Farmers has begun work with the Department of Internal Affairs’ Fire Review Panel, which is analysing New Zealand’s fire legislation to make emergency services more efficient. ‘‘Federated Farmers has been consulted at the point of first principles,’’ Federated Farmers board fire policy spokesperson and Wairarapa rural fire chief Anders Crofoot said. The panel will provide advice on three distinct areas of fire policy — whether current legislation is appropriate considering fire services’ evolving role and interaction with other emergency services, their operational efficiency and the equity and sustainability of the fire

rent legislation allows that fire service brigades ‘may’ attend non-fire incidents, but community demand for the fire service’s rapid response has driven an increase in call-outs to motor vehicle accidents and general rescue. ‘‘It’s been incredibly difficult to reconcile the requirement for a certain level of service in rural, sometimes isolated, areas with demands placed upon volunteers of both the rural and urban fire services,’’ Mr Crofoot said. ‘‘We have submitted to the panel that local brigades are best-placed to determine their role in non-fire incidents, which includes the ability to opt out where they deem appropriate. ‘‘We also reiterated our support for the recognition of the public-good

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NATIONAL POLICY

Coastal farmers under threat from policy statement By Michael Bennett Federated Farmers regional policy advisor When Edward Aitken hops on his motorbike on his Banks Peninsula farm and looks up at the ridgeline he does not see an iconic museum piece, to be preserved regardless of cost. He sees sheep, fencelines and the generations of investment behind building a productive farm. However, if the New Zealand Coastal Policy Statement (NZCPS) is implemented by councils in its current form, he faces having his property frozen in time. Under the NZCPS, large areas of farmland could be subject to lines on maps and rules in plans, in the name of looking after coastal environments. The NZCPS provides the basis for managing New Zealand’s coastal environments under the Resource Management Act. Councils have to make it happen through regional and district plans. This policy has very strict management requirements for farmland with coastal associations. Its implementation involves mapping the coastal environment ‘zone’, which can stretch up to several kilometres inland where the landscape becomes more complex, such as Banks Peninsula. The coastal policy statement sets a high bar of avoiding effects on coastal outstanding natural landscapes (ONL). To

OCEAN VIEW: Working a coastal property could become much harder if the New Zealand Coastal Policy Statement is implemented in its current form.

avoid effects, the landscape of the coastal environment must be defined precisely. Avoid means just that; a proposal can only go ahead if it will not adversely effect landscape values, no matter how beneficial it may be to a community’s overall financial or social fabric. This flies in the face of the principle

based Resource Management Act, where people can work towards a way of doing what they want, if they jump through the right hoops. The NZCPS changes this. If you own land in a coastal ONL, there are no hoops and keeping the landscape as a monument frozen in time takes priority over any economic or social need.

This is potentially a major headache for Golden Bay farmer Nigel Harwood. ‘‘“Huge areas of my farm are supposedly ONL,’’ Mr Harwood said. ‘‘If the NZCPS goes over this land as well, how do I know if I will be able to put up a fence, maintain a track, re-grass or keep pasture clear of scrub?”’’ Every coastal farmer potentially has the same problem. The NZCPS does not leave scope for the necessary balancing of environmental protection against people’s needs. This is a big problem for farmercouncil relationships as well. Many New Zealand councils do their best for rural communities despite a legislated antidevelopment agenda most have to balance their plans and policies against. How are council staff, seeking to do the best for their communities, going to cope with the destruction of relationships and loss of trust that will come with the NCPS’ implementation? For landscapes to be successfully managed on private land, for the public good, the fundamental starting point is having the landowner’s trust and buy in. Because farmers’ problems are potentially so severe, the NZCPS needs some reform at a national level. Thousands of hectares of productive farmland and massive amounts of ratepayers money are under threat. From Federated Farmers’ point of view, the NZCPS needs to be changed and now.

Ph 0800 327 646 www.fedfarm.org.nz

October 2012 National Farming Review

COUNTERPOINT

Leadership in what we are good at New Zealand needs visionary monetary policy to protect our exports, writes Damien O’Connor There have been many reports and studies relating to the advantages and future for agriculture and horticulture in New Zealand. They all make for encouraging reading and confirm the natural advantages we have over many of our competitors in the international marketplace. Our history of adding Kiwi ingenuity and enthusiasm has delivered exports and income that continue to drive our economy at a reasonable level of prosperity. The future looks bright, we are told. But there are challenges of production costs and environmental management that mean ‘business as usual’ is not going to deliver the growth and success we need. And then we have the question of who will create this innovation and do this work. Through the 1980s and 1990s many New Zealanders were discouraged from taking up careers in the primary industries. The numbers completing related degrees at Lincoln and Massey universities declined as the lure of software and soft living took young Kiwis to the world. Farming was on the way out, some believed. Nevertheless, the facts show clearly that our wealth is still created by the same exports as has occurred for over 100 years, only the quality and quantity of those

and time again, changes are needed if we are to maximise our potential. The latest study by the Riddett Institute is consistent with the others, but what it emphasises is the need for leadership to achieve the improved outcomes; leadership from both government and industry, not one without the other. While it might be difficult for strong and independently-minded farmers to accept, industry leadership without active government participation cannot deliver the results we all need. Trade access, good infrastructure, environmental safeguards and accredited standards rely on sensible government. We need leadership that listens and is strong enough to intervene when necessary. The challenge facing every New Zealand exporter is the relatively high value of the Kiwi dollar that pushes up the cost of our products to our customers and reduces returns to farmers. This is becoming a major problem, undermining our export sectors. The emerging international wisdom is that governments need to ensure monetary policy works to reduce negative impacts on small, vulnerable, export-dependent economies, such as New Zealand. This does require vision

exports has improved. We have some amazing stories of creation, innovation and Kiwi ingenuity, but our natural advantages still remain. We are very DAMIEN good at turning O’CONNOR rain and sunLabour shine into valuspokesperson for able products for Primary Industries, a world that Biosecurity and needs fibre and Food Safety protein. But we are not always good at maximising the value of these advantages with our skills and knowledge. We are only 4.5 million people and a long way from our markets. If we don’t work together we split our efforts and waste our opportunities. The dairy industry has shown how co-operation and coordination works. The wool industry shows the opposite. We have to decide which way we want for the future. As the numerous reports state, time

We are very good at turning rain and sunshine into valuable products for a world that needs fibre and protein. and leadership, which the National Government refuses to embrace. Mainstream economic agencies are now calling on the Government to alleviate the growing upward pressure on the Kiwi dollar and Kiwi exporters. Unfortunately, the only major intervention by the National Government is the determination to sell assets against the wishes of the overwhelming majority of Kiwis. Our economy will struggle and continue to go backwards because of this. We need strong leadership prepared to adjust with the changing needs of a dynamic and innovative economy. There are too many gaps in leadership from the National Government and, while that continues, rural New Zealand will stumble rather than stride into the future.

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Terms and Conditions: Only valid for products purchased at Farmlands regular Shareholder rebate (not valid on negotiated pricing). Offer valid 1 October to 30 November 2012. Hams available from beginning November to December 19 and are a random weight between 4.5-6kg. Farmlands reserves the right to supply alternative hams of the same value should ham supply be compromised. Hams may vary slightly in weight. $1000 or more must be in a single transaction to qualify for a ½ ham.

National Farming Review October 2012 www.fedfarm.org.nz

REGIONAL POLICY

Ph 0800 327 646

PROVINCIAL SPOTLIGHT

A farmer’s recipe for healthy water By Chris Allen Federated Farmers Mid-Canterbury president As the world grows in population so does our need for growth in food production. In order to feed the ever-increasing mouths at a global and national level, New Zealand’s agricultural trade grows in significance. Every country has a trade strength, which their economy leans on and New Zealand is no different. We specialise in agriculture and have done a fantastic job of showing the world we are a country to pay attention to, pulling in some $20 billion a year from pastoral agriculture. With the increasing pressure for farmers to ramp up production, remain competitive and be environmentally sustainable, the question now is how we achieve this? What are our priorities as a nation? And what is the cost? Environment Canterbury’s Land and Water plan has been trying to solve just that, but what planners have yet to realise is that farmers are not made of money and their stringent rules and timeframes will trap a significant number of farms in a production time-warp We need a sustainable approach to clean up our waterways, not a witch hunt. Below is a recipe to tenderise souring relationships and ensure we navigate this sensitive issue successfully.

RECIPE FOR SUCCESS: A dash of sensible policy is an important ingredient in creating good water policy.

Water

It is important to get the limit-setting right. Local economies could suffer if policy frameworks do not deliver a science-based and balanced approach reflecting economic reality. A sprinkle of constructive collaboration — Understand and address all needs and values around water use. Canterbury’s land and water resources will respond effectively with a dusting of respect. A dollop of responsibility — Take your nitrogen loss and understand how it impacts the environment and where you can improve. It starts with each individual proactively understanding their part and

Ingredients: ■ A dash of sensible policy ■ A sprinkle of constructive collaboration ■ A dollop of responsibility ■ A touch of practicality ■ A spoonful of hard work ■ A pinch of ingenuity. Instructions: A dash of sensible policy — Use consistency and certainty with policy for water users and set sensible guidelines so we can respond to changing conditions around water’s value and demand.

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By Nigel Billings Federated Farmers senior policy advisor Western Bay of Plenty landowners had barely celebrated their transmission line buffer zones win, when Transpower announced its intention to appeal. The Commissioners rejected Transpower’s proposed buffer zones around pylons to the district plan. This decision was a testament to the hard work of Federated Farmers and other landowner groups. If Transpower does appeal the decision, Federated Farmers will strongly support the Western Bay of Plenty District Council to defeat it. The proposed zones, either side of transmission lines crossing private land, raised the ire of farmers who host the grid for free. They provide Transpower access to the lines, along with the cost of working around the pylons. Therein lies the rub. When buffer zones were first proposed in rural areas, Federated Farmers wanted

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to know what were farmers doing that required additional rules to the electrical code of practice for safe distances? Transpower initially seemed to argue it was a safety issue. This morphed into a planning issue and the possibility of underbuild restricting their line access. Where there are buffer zone proposals, there is little evidence of an under-build problem. Farmers are working well around pylons. Since 2002, newly constructed lines have been compensated and are subject to easement agreements. But Transpower wants to regulate the network which was built on private land for free. Landowners also worry buffer zones will negate future opportunities for compensation when lines are upgraded. Federated Farmers is waiting on Waimate District Council’s decision on Transpower’s proposal. Policy staff are also working with landowners to oppose buffer zones in Whangarei, Gisborne and Rangitikei districts.

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consciously mitigating effects, understanding that properties leaching nitrogen are wasting money. A touch of practicality — It won’t happen overnight. Measuring nitrogenleaching levels is tricky. You cannot see it, and models used to measure are not perfect, but they can help. ‘Gut feelings’ are not valid measuring tools either. To achieve positive outcomes, positive economic viability needs to be proven first, as well as a level-headed approach. A spoonful of hard work — Burying your head in the sand will not make this go away. Understand your nutrient budget. From that you can determine where you sit on the nitrogen-loss bell curve and why. Be prepared to invest in changing your farming systems. If you are lucky, mitigating nitrogen losses could be as simple as modifying nitrogen fertiliser applications. A pinch of ingenuity — Science is your friend and soil testing will produce a more definitive profile of high and low-fertility areas, which fertiliser regimes can be adjusted towards. Look to industry for innovation and technologies that will help reduce your losses. Now mix all ingredients together and bake. Note: This recipe is applicable to all provinces and we appreciate your feedback as taste-testers. Bon appetit!

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October 2012 National Farming Review

ECONOMY

Interest rates low with a kick to come By Nathan Penny Westpac economist Low inflation and a weak world economy are keeping interest rates low, however price pressures from the earthquake rebuild may spill over into general inflation, leading to steeper interest rate rises than many expect. The New Zealand economy is gradually gathering momentum, with 1.6 per cent growth in the first half of 2012. This adds to the 1 per cent in the second half of 2011, giving 2.6 per cent for the June 2012 year. While annual growth in the economy is getting back to its 3 per cent average, it has yet to reach top speed. The Gross Domestic Product numbers were boosted by strong agricultural production, up over 6 per cent for the year. It appears every cloud does have a silver lining. While holiday-makers complained about a lack of sun last summer, farmers reaped the benefits of excellent growing conditions.

Earthquake rebuild adding to momentum The Christchurch earthquake rebuild is adding to the economy’s momentum, offsetting businesses’ caution with investing and hiring, households who are listening to budgeting advice more than the call of their

While the high dollar aids the RBNZ’s inflation-fighting cause, helping to keep interest rates low, it hits farmgate returns. The dollar has remained stubbornly high, despite export commodity prices still sitting lower than a year ago. We suspect the main culprits are large purchases of the dollar relating to Christchurch earthquake reinsurance flows, high volumes of dairy sales, and overseas central banks’ New Zealand Government bond purchases. CONSTRUCTION CITY: the inflationary pressure from the Christchurch rebuild will force the Reserve Bank to act eventually.

...plus risks to the global economy...

credit cards and a Government which is nickel and diming. Residential investment, or house building, increased nearly 6 per cent in the June quarter, largely due to Christchurch. Things are just getting started; we expect residential investment to grow a whopping 34 per cent in 2013.

The global economy is growing slowly, with the Eurozone and Britain in recession, while China’s annual growth slowed in March from 8.1 per cent to 7.6 per cent in June. In some ways, the slowing Chinese growth is the bigger concern. China is the major driver of world growth and, with it, New Zealand’s commodity prices. Although the Chinese authorities are planning measures to boost growth back over 8 per cent, it is very much ‘watch this space’.

Low inflation...

With the economy running below top speed and the high New Zealand dollar keeping the price of imports down, inflation is low. In the June 2012, prices rose 1 per cent from June 2011. This was the smallest rise since December 1999. Moreover, the inflation outturns over the last four quarters were all lower than the Reserve Bank’s (RBNZ) expectations.

Good fences, good neighbours By Mark Ross Federated Farmers general manager of policy and advocacy

to resolve problems quickly, especially if the neighbour is an absentee landowner or commercial forestry company. As laid out in the MoU, under the requirements of sections 16 and 17 in the Fencing Act, if any fence is damaged or destroyed, repairs need to be carried out as soon as practical. Depending on the circumstances, owners can share the costs of repair or one of the parties could be liable for the whole cost. For example, in a farmer’s case stock damage would incur full repair cost, while foresters will be up for full charges should one of their trees fall and cause damage. Often the problem is identifying who owns the fence, so it makes sense to have agreements. Both forestry and farming play important parts in New Zealand’s economic growth. It is important we remain good neighbours.

In order to improve their neighbourly relationships, farmers and forestry owners are developing a Memorandum of Understanding (MoU) to iron out some general principals around fencing, pest management, agrichemical use and understanding on other issues. The MoU is a positive initiative aimed at improving links between landowners in industries facing similar concerns. One of the biggest points of contention between farmers and foresters can be fencing. Good fences make for good neighbours, but when fences are damaged, causing disruptions on either side, disputes often arise. When your property is several hundred or thousand hectares, it can be hard

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Over the next year or so, the RBNZ will weigh up the fragile global economy pulling down global inflation, against the earthquake rebuild starting to crank up the local economy and domestic inflation pressures. We think concerns around the global economy will dominate RBNZ thoughts for some time. This will lead it to err on the side of caution and react slowly to, or overlook to an extent, any domestic inflation generated by the earthquake rebuild. However, we expect when RBNZ eventually hikes interest rates, probably in the second half of 2013, it will move quickly to get inflation back under control. Also, as the chart below indicates, interest rate rises may need to be steeper than the RBNZ and financial markets anticipate.

...add up to low interest rates As a result, the RBNZ is sitting firmly on its hands, keeping the Official Cash Rate at 2.50 in September.

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National Farming Review October 2012 www.fedfarm.org.nz Ph 0800 327 646

FEATURE

Quantum leap in water

Water is the number one issue being tackled by agriculture. Federated Farmers South Island regional policy manager Matt Harcombe looks at what is driving water-quality policy around the country and the challenges farmers face. The debate centering on water and agriculture is a tangled web of interlinked policies, on-farm actions, science, emotion, perception and economic and cultural factors affecting its use, availability and quality. Some factors are well understood, others are not. The biggest issue in the public eye is quality. However, access to water and its use, irrigation and storage are also vital. While the vast majority of farmers are working hard to adapt and evolve alongside changing public expectations of water quality, they are also trying to keep up with the demands of the Government and regional councils, while working out what it means to their farm. The farming community wants to play its part in ensuring everyone has reasonable access to and use of clean water but there is no clear consensus on what pathways should be taken to reach that goal and when it should be achieved, if it is achievable, at all. Everyone who has had anything to do with farming knows the story of the early and mid-80s. The removal of subsidies had a profound effect on the economic viability of many farms and sparked a quantum shift in the way New Zealand agriculture went about its business.

USEFUL TOOL: There is political support for irrigation schemes which take the sting out of droughts, but restrictive water regulations could render them ineffective.

Today’s debate on water quality and agriculture is as much of a quantum shift and we do not know if it will boost or damage New Zealand’s largest export earner. On May 12 last year, the Government gazetted the National Policy Statement on Freshwater Management (NPS), which essentially requires regional councils to set limits on water quality. Last year, the Ministry for the Environment put together an implementation guide for the NPS. The 50-page document is supposed to guide councils in their implementation and interpretation of the much shorter NPS, which could easily be read in ways that could put farming out of business. The implementation guide provides some assurance the NPS is about protecting water quality in a balanced way. The guide is clear that implementing the NPS should and will take time and involve innovative approaches. It also states the NPS cannot by itself achieve local objectives for managing water and that setting quality limits at a catchment

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level requires engagement with each community and conversations about all the costs of any approach. The guide is clear that achieving limits is not required by a deadline of 2030 and looks for strong steps to be put in place to work toward achieving limits. The NPS is not the only water game in town. The Land and Water Forum (LAWF) is the Government’s independent vehicle for reaching agreement, at a national level, between many different interests on plan for water management. In its first two reports, LAWF made a set of recommendations to Government and its all important third report is imminent. While LAWF is a laudable, if sometimes frustrating process, its recommendations will be too late for what farmers are facing now as councils throughout the country begin to implement their NPS interpretations of what needs to be done to set water-quality limits. The NPS means a lot for farmers because their investments and busi-

PURE AND NATURAL: Farmers want rivers and lakes to be clean for future generations but feel there needs to be more discussion on expected outcome, costs and timeframes across the country.

nesses are on the line. That means it is vital for all New Zealanders as agriculture is underpins much of the economy. In this context, the Government has signalled it wants more agricultural growth to ensure we can pay off debt and not end up the Greece of the South Pacific. Farmers know irrigation is an

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October 2012 National Farming Review

FEATURE

management policies environmentally sound means to increase production. The Ministry for Primary Industries website says, ‘‘irrigation plays an important role in agricultural productivity and is a major contributor to the New Zealand economy’’. ‘‘In 2002/03, irrigation was estimated to contribute about $920 million net GDP ‘at the farm gate’, over and above that which would have been produced from the same land without irrigation.’’ The ministry has identified a further 1.9 million hectares which could benefit from irrigation and has allocated $435 million for developing more water storage infrastructure. Given the above contexts, while the NPS states the effects of its implementation should be reviewed by the Minister for the Environment after no more than five years, there are strong grounds for holding that review now. This is for two reasons. Firstly, there seems no point in LAWF collectively spending many thousands of hours and dollars in meetings hosted at Federated Farmers’ boardrooms thrashing out what can be agreed on

how, when and what to do about water management in New Zealand, only to be trumped by premature implementation of the NPS by overeager councils. The recommendations need time to be debated by a wider public and then enacted, before we continue to interpret and re-interpret the NPS region by region. Secondly, we need to ensure we get the economic and environmental mix right, through agreed, science-informed, community-led and catchment-based processes. The removal of subsidies had a profound effect on agriculture. So will setting water-quality limits but Kiwi farmers are adaptive, innovative and resilient and will respond to the limits. We need to make sure we have learned our lessons from the mid-80s. The social, mental and economic toll of overnight subsidy removal on rural communities and the economy was horrific. Instead of jumping into such sweeping changes, farmers need to be given a chance.

Water policies, region by region ■ Auckland Regional Council is establishing interim Freshwater Objectives and Guidelines, followed by catchment-by-catchment limits. The council is collating technical data and talking with communities about values for water, then looking at what nutrient loads might meet those values. ■ Waikato Regional Council has enacted nitrogen caps in Lake Taupo catchment, and will work with landowners through monitored resource consents to reduce nitrogen loss by a further 20 per cent. ■ Bay of Plenty Regional Council has adopted a directive regional policy statement focused on enhancing water quality by managing nutrient losses and land-use change. Its Land and Water Plan has capped the existing nitrogen and phosphorus loss from land-use activities around the Rotorua Lakes. ■ Hawkes Bay Regional Council’s Land and Water Management Strategy takes a catchment approach with values, guiding principles, objectives, policies and prioritised actions. ■ Greater Wellington Regional Council is currently consulting with stakeholders and the public on developing a new Regional Plan, possibly to be notified later in 2013.

■ Tasman District is reviewing its classification of different water-bodies and their status before undertaking discussion on limit setting. ■ Marlborough District Council is in the early stages of considering requiring new dairy farms to gain resource consents. ■ West Coast Regional Council has developed a specific plan for the Lake Brunner catchment, focused on managing phosphorous. ■ Canterbury Regional Council is consulting on a new land and water regional plan, classifying each of the region’s catchments by their nutrient state. In over-allocated, or red and sensitive zones, land-use changes over the next five years require a ‘non-complying’ resource consent. It has adopted a tough threshold for nitrogen at 20 kilograms of nitrogen per hectare per year. ■ Environment Southland has introduced a regional rule requiring resource consents for all new dairy farming. The council is working through focus activities including hill country development, nutrient management and winter grazing. The council is in the process of deciding catchment-based limits.

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Otago bursts out of the starting blocks When it comes to implementing the National Policy Statement on Freshwater (NPS), the Otago Regional Council (ORC) seems to have taken a cue from Usain Bolt, bursting out of the starting blocks with Plan Change 6A. This aims to give effect to ORC’s Rural Water Quality Strategy and is currently hearing submissions from farmers and other groups. The Otago approach to water management is different from other regions’ strategies, because ORC is not relying on resource consents to enforce the plan. Instead, ORC’s preference is for most farming activities to be permitted, as long as certain water-quality limits are met over time, an approach which has sparked debate among experts on whether it will fulfil the NPS’ requirements. The plan sets both quantifiable objectives for all of the region’s waterbodies and limits on how much nitrogen, phosphorous, sediment and how many bugs can be in water leaving a property when it reaches a waterway. This is certainly a unique approach, but farmers at the hearings are still wondering what exactly it means for them and their businesses. Farmers submitting on the plan change have been supportive of not paying consultants to approve resource consents in order to continue farming. However, they are asking hard questions about whether the proposal is achievable. One farmer from South Otago, for example, has double-fenced all his waterways, installed a stock water scheme and reduced his stocking rate, yet believes he will not be able to comply with the plan. Others are questioning the use of the Overseer farm nutrient management programme as a measurement tool, as it is gives wildly differing results when

WASTED INVESTMENT: Farmers are worried that despite spending thousands of dollars on fencing and riparian planting, their properties still may not be able to meet Otago Regional Council’s requirements.

estimating farms’ nitrogen loss. Still more have called for a more robust discussion to take place at a catchment level, about what the limits should be and how best to achieve them. All Otago farmers are nervous about how the rules around on-farm water limits meeting waterways will be enforced, having heard horror stories of farmers’ experiences with Environment Court prosecutions, resulting in huge fines and criminal convictions, with no greater certainty of outcomes for environmental protection. It is important ORC creates certainty in the plan. It also needs to develop farmers’ trust so they get a better understanding of their farm’s effect on water quality and what they need to do to improve it, thus avoiding court. Instead, farmers with a proactive approach ought to be rewarded, like Olympic athletes, with medals round their necks and proud reputations to uphold.

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National Farming Review October 2012 www.fedfarm.org.nz Ph 0800 327 646

EMPLOYMENT

Strict rules for landlords and tenants on the farm Common questions

By Emma Coburn A common query to the 0800 FARMING line relates to employees living in employer-provided accommodation. The service tenancies raise some tricky issues, merging laws covering employment and landlord/tenant relationships. The tenancy relationship exists because of the employment, so it should end at the same time, although there are exceptions. Service tenancies are fully covered by the Residential Tenancies Act but have some special rules. ■ Section 40 and 45 — the landlord and tenant’s responsibilities, including cleanliness and repair and ensuring reasonable peace and privacy of all tenants. ■ Section 48 — the landlord’s rights of entry. Rights are limited to being only by consent of the tenant immediately before, or at the time of entry, in an emergency, or to undergo inspections, maintenance and repairs if notice is given beforehand. ■ Section 51 — the requirements for landlords terminating a tenancy. The notice must be in writing, identify the premises, specify the date when the tenant is required to leave and be signed by the landlord. ■ Section 53 — extra provisions for

ON-SITE ACCOMMODATION: Offering employees accommodation can raise additional problems.

tenancy termination. Landlords, or tenants, must give a minimum 14 days’ written notice to terminate, unless the landlord reasonably believes the tenant will cause substantial damage to the premises, or the landlord has to appoint a replacement employee needing the accommodation. Tenant employees cannot be forced to leave before their employment ends. The Ministry of Business, Innovation and Employment’s building and housing group’s website, www.dbh.govt.nz, has a full guide to the rights and duties of both parties.

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My employee has abandoned their employment and the house, leaving some of things. I urgently need to house new tenants. Can I remove their things? Before removing any property from the house, the tenancy must be terminated. Ensure you give the two weeks’ notice to vacate the property when employment ends. This can sometimes be shortened when there are incoming tenant employees. When a tenant abandons the house and stops paying rent, apply to the Tenancy Tribunal for a termination order on the grounds of abandonment. Once the order is given, the tenancy has been terminated. The Residential Tenancies Act 1986 allows landlords to dispose of perishable goods left behind. For other items, landlords must make all reasonable efforts to contact the tenant to agree on a period for the goods’ collection. Where impossible, landlords must securely store personal documents such as passports and power bills. Items such as furniture, books and televisions can be assessed for market value. If values are below storage, transport or selling costs, you can dispose of the goods in any way. If the value is above the costs, you

must store them for 35 days, so the tenant can claim them, if reasonable storage costs are paid. If unclaimed, you can store or sell the goods for a reasonable market price. Personal documents must not be sold. Hand them into the local police station. My tenants let their dogs live inside, which I would not have allowed if I had known about them. Can I make them keep them outside? Federated Farmers’ standard agreement provides for disallowing animals inside houses. If you used this agreement, enforce its terms by giving tenants written notice of the breach of the tenancy agreement. They must rectify this within 14 days. You can state they will be liable for damage occurring as a result of that breach and, if they fail to comply, you may apply to terminate the tenancy. If you have not used the Federated Farmers’ agreement or similar, there is little you can do. You could try to renegotiate the tenancy agreement’s terms but there is nothing you can do if the tenant refuses to play ball. You are entitled to recover damages if the animal caused excessive damage inside. ■ If you have any questions about service tenancies, call 0800 FARMING for access to free, independent legal advice.

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October 2012 National Farming Review

WEATHER

The neutral winter of variability By Daniel Corbett Metservice weather ambassador This winter saw a good mix of weather types, ranging from a brief polar blast in June, to blocked southwesters, anticyclones and stuck Tasman lows. The winter may not have felt so cold and perhaps appeared back to front, with the season opening with a polar blast and snow, then milder weather later on. This mix of weather systems was typical of the passing neutral phase in the El Nino-Southern Oscillation (ENSO) cycle. It is moving away from last summer’s La Nina, without reaching the other extreme of El Nino. In the neutral phase, other factors can influence the season’s weather, including sea temperature anomalies, the Southern Annular Mode (Sam) and winter blocking. The other interesting thing about the winter was the source regions for the air moving across New Zealand at various times. Source regions influence how cold, or warm, the air feels in weather systems. In the first part of the winter, the source region was the Southern Ocean. During the second half, air was more often from the milder Tasman Sea. This winter was coldest early on, when the Southern Ocean opened up and began to feed polar-chilled air toward New Zealand.

On June 6, some of this air collided with a moist Tasman Sea low, bringing significant snow to parts of the South Island. Christchurch received 15cm and some higher elevations 50-100cm.

and linger. This led to excessive rain and flooding, particularly along northern and eastern areas. A stubborn low spent nearly a week spinning off the west coast of the North Island in the final days of July. The system began as an active low, moving in from the Tasman Sea. The rain spread across the north of the North Island during July 30. By the following morning, more than 100mm had fallen in the Coromandel ranges, with Kopu recording 115mm. The low remained for several days, bringing wet weather to much of New Zealand.

In mid-June, the Southern Ocean continued to be the main airflow source, resulting in colder than normal daytime highs, barely above 8°C in some parts of central and southern regions. A blocked, or stuck, weather pattern kept a bonechilling southerly flow in place with wintry showers peppering southern and eastern coasts for more than a week.

Stubborn lows

In late July, the upper wind flow changed to a more blocking regime, causing many lows from the Tasman Sea to get stuck

The blocking eased in mid-August. A more typical winter westerly flow returned with a procession of rainbearing fronts interspersed with milder anticyclones.

Another curious event was early September’s wintry blast which brought snow to sea level across parts of the South Island and low levels over southern and eastern parts of the North Island. The polar-chilled air behind the system was some of the coldest air over winter, although it happened in the first few days of spring.

What is to come?

Westerly flows will be a major feature during the next several weeks, bringing spells of rain with active troughs. Looking further into spring, do not be surprised at continued variability, especially once the weak El Nino settles into the driver’s seat for the ride toward summer. This weak signal El Nino could also allow other factors to play a part in our weather patterns. Expect settled periods, with clear sunny days and frosty, or foggy mornings, associated with passing anticyclones. Fronts and troughs rolling in from the Tasman may be followed by episodes lasting several days of cool southwest winds across the whole country. Occasionally, a low-pressure centre may move on to the country from the north, preceded by an easterly flow with some heavy rain for north-eastern areas. Watch for a blocking pattern during the next several weeks where the weather patterns get stuck, causing some anomalies.

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INDUSTRY GROUPS

DAIRY

Settle dispute by arbitration By Felicity Wolfe Disputes between farm owners, employees and families can have a devastating impact on people and happen all too often in the rural community. A recent prosecution, where a Coromandel farmer reneged on his agreement on milk payments to his sharemilkers, resulted in him receiving a 12-month prison sentence and a sharemilking couple failing to meet their goal of farm ownership. This may be an extreme case but, unfortunately, disputes are common in farming. There are an increasing number of areas which can spark a dispute, from contractual issues to effluent management to leasing agreements. The Arbitrators’ and Mediators’ Institute of New Zealand, (AMINZ) expects Fonterra’s Trading Among Farmers scheme will produce conflict between owners and sharemilkers. Federated Farmers has a Memorandum of Understanding (MOU) with AMINZ, the country’s largest professional institute for people working in dispute resolution. For those in sharemilking, the MOU provides clear pathways for resolving disputes, with provision for conciliation and arbitration led by AMINZ into Variable Order Sharemilking contracts. As well as avoiding the expensive court system in resolving disputes, the concili-

FINDING AGREEMENT: When disputes between sharemilkers and farm owners can’t be resolved personally, Federated Farmers recommends both parties go to conciliation to get the issue resolved as smoothly and fast as possible.

ation and arbitration offered by AMINZ provides an independent and neutral perspective on the situation which can ensure parties can move beyond the personal. AMINZ can help people communicate more effectively with each other, allowing them to get past petty point scoring to find a mutually beneficial solution. AMINZ executive director Deborah Hart outlined a recent example of a contract milking couple who leased out their stock to a farm owner using a formal stock lease agreement. It provided for any replacements to be on a ‘‘like for like’’ basis. ‘‘Unfortunately, when the stock was returned, many were not in calf, other

stock had low body condition scores and the replacement stock offered lower breeding worth (BW) than the cows originally provided,’’ she said. The contract milkers and the farmer were unable to reach an agreement and went to AMINZ for a conciliation process. Once this began, they were able to reach an agreement on the same day. This included compensation being made to the cows’ owners and replacement stock provided by the farmer. The relationships between farm owners and herd-owning sharemilkers is another area which is often fraught with potential for dispute, with conflict often arising around the areas of body condition scores, milk production and timing of calving.

The disputes can rumble on, potentially leading to explosive disagreements if not confronted and settled. Federated Farmers Dairy Industry policy advisor Ann Thompson says dealing with disputes early can avoid damaging morale, which can affect the performance of the overall business. ‘‘Federated Farmers’ experience is that using professional rural arbitrators and conciliators can lead to lasting resolutions, even after apparent impasses,’’ Thompson said. ‘‘It is better for everyone involved and the wider industry to avoid these situations by better managing relationships.’’ AMINZ has a vetted list of professionals trained in rural disputes and it also operates the National Panel of Conciliators, who are specifically trained for sharemilking disputes. Using AMINZ’s services means a professionally trained and qualified conciliator with rural experience can help the parties reach a resolution people can live with, Hart says. ‘‘In many cases, the parties in dispute need to continue to work together, so this is key.’’ Hart said it is difficult to imagine in the middle of contentious and often personal dispute that it can be resolved to the point parties can go back to a healthy working relationship. ‘‘But this is the reality rural arbitrators and conciliators facilitate daily.’’

Stay ahead of the game, stay in business By Ann Thompson Dairy Industry policy advisor With the new milking season well under way and calving falling off, now is an ideal time for all dairy farmers to review the last few weeks and plan what is coming up next. For those in their first season on a farm, it is important to get to grips with the local rainfall and temperatures. It is vital to keep track of what you do. This requires discipline but is worth it. Notes in a simple, dated, exercise book or diary can help when reviewing meetings and making decisions. Sorting out an email system with folders also helps keep track of various business streams. Now is the time to: ■ Discuss things with your partner,

NOT JUST MILKING: Once the herd has been milked for the day, many things remain to be done and thought about onfarm.

sharemilker, farm owner, or staff ■ Review what went well during calving and what you never want to repeat

■ Ask the farm owner what to expect during the next few months ■ Work out with staff what cover is required during the Christmas holidays ■ Discuss Trading Among Farmers with the farm owner if supplying Fonterra. Discuss the possible sharemilker milk payment scenarios should the shareholder opt to start trading shares for units in the Fonterra Shareholder Fund. ■ Record your decisions and, if necessary, get all affected parties to sign them. ■ Check your contract — is it signed? If this is your last season sharemilking on a farm, start considering the options. The perfect job is harder to uncover

than before, so contact your banker and accountant and talk to people who will help advance your cause. It is always good to see where you can lift your game. All sharemilkers and others working in the dairy industry should consider entering the New Zealand Dairy Industry Awards. They force participants to evaluate their business and help progression through the industry. The awards have three categories: ■ Sharemilker/equity farmer of the year. ■ Farm manager of the year. ■ Dairy trainee of the year. Federated Farmers proudly sponsors the awards. Entries open on November 1 at www.dairyindustryawards.co.nz.

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MEAT & FIBRE

October 2012 National Farming Review

INDUSTRY GROUPS

Getting organised about rural crime By David Burt Federated Farmers Meat & Fibre policy advisor Reports of sheep rustling are again in the headlines with news of ewes stolen in Whanganui recently. Federated Farmers and the police are working together to try and eliminate the illegal meat trade which costs farmers throughout New Zealand many thousands of dollars annually. ‘‘The animals are the basis of our livelihoods and are worth anywhere between $100 and $1500 a head,’’ Federated Farmers Meat & Fibre chairperson Jeanette Maxwell says. ‘‘To let police know the extent of the problem, farmers need to report all stock rustling, so the appropriate resources can be allocated to this on-going problem.’’ Stock rustling, or poaching, usually spikes when meat prices rise and lamb and beef are still commanding reasonable prices in the supermarkets. Police want farmers to report every instance of stock theft, as well as any other thefts from farms, so they can get a better idea of the problem. It is likely many rustling raids are connected to gangs and even a couple of missing animals could be a key piece of information about a larger pattern of offending. While sheep and cattle are the main

Keep yourself safe

TARGETED: Police want farmers to take precautions and report any stock thefts, or other instances of rural crime.

targets, all stock, including deer, goats and pigs are being targeted and most are taken for consumption, rather than stolen for on-farming. ‘‘It is not just about protecting farmers’ incomes,’’ Mrs Maxwell says. ‘‘There are health risks for those who consume meat from the animals. There have been many instances of stock being stolen while within withholding periods after being treated with health remedies. ‘‘These animals are not cleared for human consumption and can make people sick if they eat them.’’ As well as taking precautions to

Being in a rural area means police backup is not necessarily close. Farmers often feel compelled to act when their livelihood is being threatened, but this can be dangerous. ■ When investigating suspicious activity, make sure someone else knows what you are checking and how long you expect to take. Phone the police or your neighbour, wait for a neighbour to join you and take a mobile phone or hand-held radio. Your response must always be within the law, but you are entitled to protect yourself and your property: ■ Safety should be your first concern. Never take the law into your own hands or take unnecessary risks. If there are intruders on your property, call the police. Incidents can quickly get out of hand and the police are trained to deal with them.

discourage would-be rustlers, farmers also need to be aware of other situations where farming property is targeted by criminals. There has been a spate of thefts of quad and farm bikes,

scrap metal and electric fencing in many areas. Farmers need to take all practical steps to protect their property and stock. ‘‘This can include shutting road gates, locking gates and buildings, and installing security cameras,’’ Federated Farmers security spokesperson Katie Milne says. Ms Milne does not recommend confronting people acting suspiciously near the farm as they may be armed. ‘‘You can take photographs of people and vehicles and report sightings to police.’’ It is also a good idea to form a community watch where information is shared and neighbours can watch adjacent farmland. Police say crime has three components: a motivated offender; a target; which on a farm can be an unlocked shed containing valuable items; and no one around to keep watch. Farmers can reduce opportunities for offenders by noting who is out and about and talking to them, particularly if they are not locals, locking houses, removing keys, closing access gates, particularly to home driveways, and keeping a watch on neighbouring properties. ■ For more information call your local community constable or check out www.police.govt.nz/safety/rural.html

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National Farming Review October 2012 www.fedfarm.org.nz Ph 0800 327 646

INDUSTRY GROUPS

GOATS, BEES

Goats group broadens focus on sector By David Burt Federated Farmers Meat & Fibre policy advisor Originally mohair-focused, Federated Farmers Goats Industry Group (GIG) now includes representatives from the wider sector. The GIG executive includes representatives from Meat Goat New Zealand and the Dairy Goat Co-operative.

Recent executive discussions have been on progressing the goat industry and formulating a strategy to help deliver a strong and sustainable industry. Two key areas were identified. A unified approach is important. Historically, differences of opinion between sector stakeholders meant efforts to improve the industry were

not always as effective as they might have been. While industry stakeholders will continue to work for their members’ benefit, they will also identify all industry stakeholders and clarify possible roles within a unified sector so industry efforts can be coordinated and leveraged to best advantage.

The second initiative is the possible reinstatement of a goat meat levy. The executive agreed this should be investigated, initially by gauging stakeholder support, in principle, for the idea. ■ For more information on these issues contact John Woodward on 027 233 6581 or at mohair@hotmail.co.nz

GOAT CONFERENCE

You never stop striving for better results

The 2013 Federated Farmers Goat conference will be held in Pukekohe in February. A registration form and agenda will be available later this year. People interested in attending can contact Federated Farmers events co-

ordinator Hannah Williamson on events@fedfarm.org.nz, or Meat & Fibre policy advisor, David Burt, on on 0800 FARMING (0800 327 646) or email dburt@fedfarm.org.nz. David will be the Federation’s Goat policy advisor from January.

Colony collapse caution urged By Nick Hanson Federated Farmers Bee Industry Group policy advisor Federated Farmers Bee Industry Group is urging caution after an Auckland beekeeper’s claims that hives have suffered colony collapse disorder (CCD). CCD is a phenomenon causing the entire population of a hive to suddenly die, but is yet to be seen in New Zealand. The causes are unknown, but in the United States in particular, CCD has resulted in significant losses for beekeepers and reduced food crop pollination. ‘‘It is a concern, but beekeepers should look at their own management in the first instance,’’ Bee Industry Group chairman John Hartnell said. ‘‘The varroa mite is still the major threat to honeybees in this country.

HEALTHY FRAME: Beekeepers concerned about colony collapse disorder need to first ensure they are following correct hive management.

‘‘It is essential that varroa treatments are in on time and chemical families are rotated. ‘‘Beekeepers in the upper North Island are now seeing possible signs of varroa resistance to the miticides that were first available so it’s important we now alternate between modes of action.’’

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GRAINS

October 2012 National Farming Review

INDUSTRY GROUPS

Online initiative modernises seed cert By Nick Hanson Federated Farmers Policy Advisor Federated Farmers Grain and Seed Industry Group has welcomed the development of an online tool which will be a big step forward in modernising seed certification administration. The tool will allow growers, processors and merchants to initiate, monitor and manage the certification of their crops. ‘‘We are really glad that seed certification is being brought into the 21st century,’’ Federated Farmers spokesman Colin Hurst said. The new tool will allow growers of certified seed to complete many administrative tasks necessary to enter crops for certification through a website, reducing time farmers spend on paperwork and speeding up the processing time. Mr Hurst said growers will find it particularly useful that the programme automatically records and pre-populates the paddock history where previous crops have been certified. ‘‘It will go a long way to address the issues of constantly having to go back through your records each time you fill in a grower application.’’ ‘‘Growers should also be happy

PERFECT CROP: Online tools for seed certification is bringing the industry into the 21st century.

about the fact that they’ll be able to track their application on-line to know when it’s been approved. They will also be able to print off copies of their grower declarations.’’ Farmers will be able to view the

germination test of their common seed line at both interim and final stages in real time where previously they relied on the hard copy to come in the post which had caused delays. The website is being developed by

Asurequality, which also manages seed certification in New Zealand on behalf of the Seed Quality Management Authority, a pan-industry body on which Federated Farmers is represented. ‘‘We are in the final stages of beta testing with a group of growers right now and we hope to start a staggered role out by the end of the month,’’ Asurequality spokesman, Evan Johnston said. ‘‘So far the feedback has been positive and while there will be some farmers that prefer to continue with the current way, most have been prepared to look at this new technology.’’ At this stage, the on-line programme is only an alternative to the existing manual system, but it has been developed with an eye to the future. Asurequality distributed applications forms for log-in and password details to some 650 growers on the register of certified seed growers and almost two-thirds have been returned. ■ Any growers of certified seed that have not been issued log-in and password details should contact Asurequality at certification.seed@asurequality.com

National Farming Review October 2012 www.fedfarm.org.nz Ph 0800 327 646

COMMENT

‘New deal’ for fresh water controls Land and Water Forum report says community involvement is important in ensuring water use is sustainable while keeping waterways safe and healthy, writes Alastair Bisley Government should set bottom line objectives for the state of our waterways across the country, taking account of their different types. They will ALASTAIR BISLEY ensure the Land and Water mana of our Forum chairman rivers is respected — that they have good ecological health and they do not endanger human health. Can fish live in them and the creatures that fish eat? Will river beds not be choked with algae? Will the water be reasonably clear? Can people have contact with the water without getting sick? We think local communities should work with regional councils to set the specific objectives for their catchments. Communities should set the timetables to reach them.

Freshwater is central to our economy, our environment and our way of life. Our economy has been built upon its use and it plays a key role in our identity, heritage, culture and recreation. That has been the starting point for the Land and Water Forum and we always bear this in mind as we explore ways of better managing our rivers, lakes, streams, wetlands and aquifers. Our recommendations must enhance the value of this marvellous resource for all — not just for some at the expense of others. Farmers have played a central role in our discussions. Federated Farmers, Beef and Lamb, Fonterra and Dairy NZ have been at the table, along with other primary sector organisations, iwi, power generators, green NGOs and others. Our report to ministers, released in May, got a pretty good reception from political parties and a wide range of commentators, probably because it was deliberately even-handed and its recommendations applied to urban and rural waterways. The Forum has recommended The

2-4 November

Catchment objectives will reflect the local mix of values and interests, and the knowledge the community, including farmers, bring to the table. The community will work out which water needs to be managed for drinking, or for trout fishing; where swimming is important, where stock water or irrigation is key —and how to manage the mix between these and other activities. Regions will then set catchment limits for takes and for contaminants in order to achieve the mix they have chosen. We recommend collaborative processes to lead the decisions because, based on our experience, we know they help to identify win-wins and produce more enduring outcomes with local community buy-in. You can see the Land and Water Forum is recommending some big changes from the system but we think our approach will be faster and less expensive. It gives responsibility to communities to find a way through and to find their own win-wins and tradeoffs.

We think local communities should work with regional councils to set the specific objectives for their catchments. Communities should set the timetables to reach them. Our report is with the Government. In the meantime, we are working on the second leg of the double — how to manage water within use limits, including through more effective and efficient allocating systems. We look forward to further constructive and collaborative discussions with the farming community.

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October 2012 National Farming Review

MEMBERSHIP

Devil in the detail on animal welfare reform By Ann Thompson Federated Farmers Dairy Industry policy advisor Federated Farmers has given provisional support for the Ministry for Primary Industries’ (MPI) review of the Animal Welfare Act 1999 and development of a national animal welfare strategy, but is waiting for more details. When drafting its submission, the Federation asked members for their opinions and many responded saying the ‘‘devil would be in the detail’’. Federated Farmers agrees. The Federation welcomes many of MPI’s proposals, including one ensuring anything put into standards is practical and economically viable. The Federation’s submission noted that where these make sense, are achievable and help farmers’ bottom lines, farmers will happily comply. There are three proposals, however, the Federation is wary of: classifying surgical procedures in the Animal Welfare Act itself; placing stockmanship into regulation; and specifying the intentional drowning of any land animal as an offence. Classifying surgical procedures in the Act will require debate in Parliament. The Federation is concerned this could lead to emotional grandstanding by politicians and voting along

party lines which could be manipulated for political gain. Instead of debate, the surgical procedures proposal requires careful questioning of experts. This can happen only outside the House. The Federation would prefer surgical procedures be classified through regulations, decided by Cabinet after consulting the appropriate experts. Federated Farmers shares MPI’s concern around declining stock skills, but does not believe regulating them will lift skills. Stockmanship is a broad issue with as many theories as practitioners. Rather than specifying good practices, it would be better to regulate poor stockmanship, dealing with the owner of the neglected or poorly treated animals, leaving stockmanship improvement to industry training organisations. Finally, the Federation does not condone illtreatment, including drowning, of animals, but this proposal could unintentionally include pest management. As an example, many people cage-trap pests, from possums to rats, but may not have a firearm licence to shoot them and are unlikely to call a vet to euthanase them. In these cases drowning may be the only option. Federated Farmers believes inhumane drowning of animals can be dealt with in the current Act, without spelling it out.

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Going solo v a team effort By Jeremy Blandford Federated Farmers general manager of sales and marketing As a Federated Farmers member you can play an active role in New Zealand’s most successful advocacy organisation for pastoral farming. Your support, through membership, helps the Federation gain the best possible outcomes for the agricultural sector. Members can also participate in national, regional and community advocacy, helping influence key decision-makers to create better outcomes for profitable and sustainable farming. Going it alone is not the best option when advocating for farming, whether on national or local issues. It is your thinking, your considered analysis and your input into the farming issues which gives Federated Farmers its strength and mandate. We may not necessarily agree on everything; that is part of being a democratic organisation. However, together we can accurately portray farming’s real voice. Where else can you stand up and be heard with fellow farmers in such

a co-ordinated and powerful way? Federated Farmers has gained extensive pragmatic and successful outcomes for farmers and their communities, which have allowed farmers to continue to run sustainable and profitable farming operations. You can choose to voice your own views in isolation, but we have seen the real success which comes from standing alongside other farmers and fully engaging in issues facing you, your business and your community. Federated Farmers is about getting involved and making a positive difference to our industry’s outcomes. Membership is a key farm asset in today’s complex environment. The Federation needs you to make that individual commitment and you need the Federation working for you on all the off-farm issues that can have significant impacts on your business. Be proactive, manage the big risks to your business and join Federated Farmers today. ■ To join Federated Farmers, call 0800 327 646

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ADVERTORIAL

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Dairy cows For lactating dairy cows, the economics of supplementing with salt where there is a known sodium deficiency are significant. In 1999/2000 a trial was conducted at Waikite Valley, Rotorua, where lactating cows were given 35g of salt per head, per day. Milk production increased by 12.8 per cent. At 2011 prices, that’s a return of $55 in additional milk receipts for each dollar spent on salt.

Beef cattle Beef cattle on low-sodium diets respond to salt supplementation. In the mid-1970s, trials were conducted at Wairakei Research Station, Taupo, feeding cattle Lucerne. Salt was added at 40g

per head, per day, resulting in live-weight gains of 18 to 48 per cent in different aged cattle. At 2011 prices, for every dollar spent on salt, the weight gain would be worth $10.

Sheep and lambs Trials conducted at Wairakei Research Station in 1974 with Lucerne resulted in twice the carcass weight when lambs were dosed once weekly with 8.4g of sodium. Marlborough Hill Country trials using free access salt blocks led to greater weight gain in ewes between tailing and weaning, a trend towards more lambs tailed and greater weight

The minimum sodium requirements for different classes of stock are are based on restricted, experimental data. For grazing animals, pasture containing 0.09 per cent sodium is sufficient for sheep, 0.1 per cent is sufficient for beef cattle and 0.1 2 per cent is sufficient for lactating dairy cows. ■ Dairy (lactating) — 35g salt/ head/day (10kg/head for 280 lactation days) ■ Beef Cattle — up to 15g salt/ head/day (3-4kg/head/year) ■ Sheep — up to 10g salt/head/ day (1-1.5kg/head/year) Note: For lactating dairy cows this is a minimum input. The use of supplementary feeds will increase the sodium requirement.

An easier EID option Tru-Test’s new SRS EID stick reader, designed to work with EID weigh scales, is now available, offering an option for farmers who want to read tags but not necessarily capture and hold data on the reader itself. The SRS is an entry level version of TruTest’s XRS reader. It enables farmers to put large stock numbers through the yards, thanks to the fastest ‘read-rate’ in the market, along with a superior battery life which allows around 19 hours of solid use between charges. Tru-Test Group’s NZ sales and marketing manager Verne Atmore says EID recording is growing rapidly, but not all farmers are at the same stage, nor have the same requirements when it comes to capturing and using the data.

‘‘For farmers who don’t need the advanced features of the XRS, the SRS offers a simplified option for scanning tags, with the data wirelessly transferred to an EID capable indicator for capture,’’ Verne says. ‘‘The user can then set the paired indicator to record just the EID tag data or other additional information, such as animal weights or traits.’’ The SRS can be linked to any major brand EIDcapable indicator, removing the need to purchase additional equipment where an EID-capable indicator already exists. With the inclusion of Bluetooth wireless technology along with a lightweight, ergonomic design, the SRS stick reader offer true portability for comfortable, flexible use over long periods of time.

Cyrex reduces flystrike risk in King Country Aria farmer Peter Hurley is one of many in the King Country region who has had to contend with the Australian green blowfly increasing fly-strike risk in his sheep flock. The summer of 2010-2011 provided ideal conditions for the aggressive fly, compounded by problems Peter experienced with his traditional fly treatment breaking down as fly resistance

exploded. It was a breakdown that for Peter was as swift as it was disturbing and damaging. ‘‘It seemed that what had worked fine the year before suddenly just started to fail that summer after only two weeks. There was nothing gradual about it.’’ Advice from his vet prompted Peter to re-assess his treatment and pick up on Cyrex from Elanco, a new treatment that at

that stage had only been on the market a year. Cyrex contains two proven actives in a potent combination for eliminating fly strike and lice. Long-term fly control is achieved with the proven active cyromazine, promising up to 12 weeks of fly control. This is combined with the revolutionary lice and maggot control active spinosad. South Island farmers in

particular are familiar with spinosad as the active in Elanco’s lice dipping product Extinosad and lice pouron Expo. Peter reported maggots falling off affected sheep, and excellent residual cover that matched the label claims of 12 weeks of ongoing fly protection, sufficient to get him through the at-risk summer period. Like most using Cyrex, Peter

says he was pleasantly surprised at the ease of mixing, lack of smell and low level of risk compared to more traditional organo-phosphate type dips. Meantime, Peter has nailed Cyrex firmly into his dipping calendar for this season and every other. ‘‘I would definitely be using it again. It is my number one go-to solution at present.’’

US tours provide insight

New mill feeds demand Heightened dairy farmer awareness of the need for targeted nutrition has culminated in the construction of a new feed blending plant. ‘‘Dairy farmers are realising that pastures alone haven’t got the horsepower to provide the nourishment that matches their cows’ genetic potential,’’ says Ingham Feeds & Nutrition feed mill manager Oscar Stevens. ‘‘Under the ‘Acu’ label, farmers will be able to have complete confidence that the specifications and nutrition content of what will initially be five different mixes is totally accurate.’’ Construction of the $2.5 million plant at Ingham’s Bisley Rd site in Hamilton took four months. Because there was only a 12m x 3m spare space, the blending plant’s design was a mix of off-the-shelf components as well as bespoke elements. ‘‘The other big advantage of

our new mill is that the blends are thoroughly mixed,’’ says Stevens, a bread baker in former life. ‘‘That means there’s no hot spots or cold spots within the Acu blends.’’ The addition of the ‘Acu’ range to Ingham’s supplementary feeds will also allow farmers who are new to boosting their cows’ performance to gauge the profitpotential of the blends. Ingham’s pelletised TopCow range generally have to be fed in-shed by individual troughs as each cow is milked. The Acu range, which has been developed in conjunction with Tasmanian animal nutritionist Pip Gale, can be dished out on a feed pad, mixed with silage or dolled out in a paddock. ‘‘Dairy farmers can dip their toes in the supplementary feeds arena, with total confidence that what the label says is totally accurate,’’ says Stevens.

Farm to Farm Tours’ annual tour to the USA each June gives good insight into mega trends affecting the farming world today. A US drought affects us here — especially our dairy, beef and grain industries. If there’s a major change in the White House, it can affect our trade policies and exchange rates. If there’s a food scare, it can affect us too. If there is an advance in crop technology or agricultural machinery, you may see it in the USA first. Our tour to the USA starts near Scottsdale, Arizona before heading to the Grand Canyon and Las Vegas. Next, it’s the most productive agricultural region in the world where irrigation has

transformed a central Californian desert into vast expanses of fruit, vegetables, cattle ranches, dairy farms and wineries. After time in Monterey and San Francisco, we fly to Oregon — which has a climate not dissimilar to NZ — where around 150 crop and livestock farms grow on the rich soils of the Willamette Valley.

Then we fly east to Memphis, Tennessee in the Mid West with vast expanses of corn, wheat, beef cattle and dairy farms. Here the great Mississippi River is paramount in distributing produce from the region throughout America. The tour finishes in vibrant Chicago, or an optional extension takes in farmland in the east plus Washington DC New York. You’ll see it all in America and enjoy great rural hospitality, services and wonderful farm visits. ■ Farm To Farm Tours is planning a return tour to the USA, in addition to many other destinations, in 2013 — ph 0800 3838 747 for details.

Generating future success Reaching goals and fulfilling personal ambition will become easier for New Zealand’s rural professionals this October. Enrolment is open for Generate, a free programme that up-skills agricultural professionals and leads to a nationally recognised Certificate in Rural Leadership. Hundreds of rural professionals around New Zealand have already taken advantage of this programme. ‘‘Graduates tell us they value the

opportunity to add skills to their ‘tool-kit’, as well as the networking opportunities that Generate creates,’’ says Clarissa Wallace, Generate co-ordinator. ‘‘The opportunity to focus on where they are at personally or professionally gives them direction.’’ Sharon Paterson, a Generate graduate, manages sheep and cattle studs with her husband and is an FMG rural manager. She particularly valued the presentation and people skills

she took from the workshops. ‘‘I have been in farming all my life. I looked to the programme to help me develop more confidence in speaking with people. Generate exceeded my expectations,’’ says Sharon. ‘‘Each workshop gave me a different skill, many of which I have applied to my professional life and I have seen great results.’’ ■ Contact Clarissa Wallace on 06 3782116 or email generate@taratahi.ac.nz

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INSIDER

Parliament Bills in the House

As at September 20, a number of Bills relevant to farming were before Parliament, at various stages: ■ Food Bill – Second reading ■ Climate Change Response (Emissions Trading and Other Matters) Amendment Bill – being considered by Finance and Expenditure Select Committee ■ Lobbying Disclosure Bill — being considered by the Government Administration Select Committee ■ Building Amendment Bill (No 4) – being considered by Local Government and Environment Select Committee ■ Local Government Act Amendment Bill – being considered by the Local Government and Environment Select Committee ■ Game Animal Council Bill – being considered by the Local Government and Environment Select Committee ■ Heritage New Zealand Pouhere Taonga Bill – being considered by the Local Government and Environment Select Committee ■ Regulatory Standards Bill – being considered by Commerce Committee ■ Public Finance (Fiscal Responsibility) Amendment Bill – awaiting first reading ■ Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters Bill) Bill – awaiting first reading ■ Local Electoral Act Amendment Bill – awaiting first reading ■ Reserve Bank of New Zealand (Amending Primary Function of Bank) Amendment Bill – awaiting first reading.

Other reviews consultations:

and

■ Review of Agricultural Transport Rules, Ministry of Transport ■ Vehicle Licensing Reform Project, Ministry of Transport ■ Land and Water Forum recommendations ■ Revisions to Regulatory Standards Bill, The Treasury ■ Strengthening Economic Relations between Australia and New Zealand, Australian and New Zealand Productivity Commissions ■ Inquiry into Local Government Regulatory Performance, New Zealand Productivity Commission ■ Road Maintenance Taskforce, New Zealand Transport Agency ■ Government Industry Agreements, Ministry for Primary Industries ■ Animal Welfare Strategy Development, Ministry for Primary Industries

Where your donations went Federated Farmers’ Adverse Events Trust has given the last of the money raised for Christchurch, following the Canterbury earthquakes. Overall, $402,780 has been given to groups supporting Christchurch and Canterbury residents. This figure does not include the immense voluntary rural contribution of the Farmy Army. Federated Farmers thanks all donors, large and small, as well as the meat companies and wool processors who made ‘Meat the Needs of Christchurch’ possible. Recipients: ■ St John Christchurch appeal — $54,326 ■ Red Cross 2011 Earthquake Appeal — $40,000 ■ Presbyterian Support (upper South Island) — $40,000 ■ St Vincent de Paul National Council Christchurch Appeal — $40,000 ■ Salvation Army Canterbury Earthquake Appeal — $40,000 FIRST RESPONSE: St John were one of the organisations on ■ IHC Christchurch — the frontline of the Christchurch earthquake response. They $40,000 have become the final and largest Adverse Events Trust ■ Alzheimer’s Canterbury — recipient. PHOTO: ST JOHN $40,000 ■ Royal New Zealand Foundation of the Blind — $40,000 ■ van Asch Deaf Education Centre — $5000 ■ Variety The Children’s Charity Inc — ■ Aranui Community Trust for Family fest$20,000 ival fun day — $2000 ■ SPCA Pet Emergency Earthquake Fund — ■ Swannanoa Home & School Inc for rural $20,000 day — $1000 ■ Christchurch 2011 Christmas Hampers — ■ Grain and silo expenses arising from the $20,000 2010 Darfield Earthquake — $800.

■ Review of Agricultural Qualifications Framework, Tertiary Education Commission ■ Review of Government Investment in Industry Training, Ministry of Education ■ Review of Fire Policy, Department of Internal Affairs ■ Technical Advisory Group Report on the Review of Section 6 and Section 7 of the Resource Management Act, Ministry for the Environment ■ New Zealand Post Deed of Understanding, New Zealand Post.

Happenings:

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■ November 6-8 — NZ Grasslands Conference, Gore ■ November 7-8 — Federated Farmers Meat & Fibre Council, Wellington ■ November 10-16 — Visit of HRH The Prince of Wales, Campaign for Wool Patron ■ November 13-15— NZ Association of Resource Management Conference, Dunedin ■ November 14-16 — 150th Canterbury A&P Show, Christchurch ■ November 21-22 — Federated Farmers National Council, Wellington ■ November 28-29 — Federated Farmers Level Two Leadership Course, Wellington. ■ For many more events, see ‘events and training’ at www.fedfarm.org.nz

THE OFFAL PIT Mutant calves and water There could be upsides if iwi owed water. The next time we get a drought, or a flood, we will be able to add up our losses and send the bill off to iwi. Okay, this will not happen but is that not what some used to say about Treaty of Waitangi claims? If iwi own the water Maori will become responsible for what ‘their’ water does. We know what this is like with stock fencing; if your stock gets out on the road and causes a pile-up, guess where the buck ends up stopping? Of course, the Livestock Improvement Corporation (LIC), may be the exception. What gets me about LIC’s mutant calves mess is that LIC is a company trading on its genetic offering. This is what has helped make the New Zealand dairy industry what is today. So you would think LIC would stand by their product when things don’t go to plan. I bet I will win Lotto before seeing another Matrix. However, when this whole thing first broke there seemed to be denial, a refusal to admit there was a problem. Then came a surprising artificial insemination reimbursement offer. The one thing LIC has refused to talk about was proper compensation for dud calves. Let’s be real here. If LIC had gotten its cheque book out early, it’s unlikely any of this would have made it into the papers. Now that LIC has dragged its heels it has a Commerce Commission complaint lodged against it. There is possible legal action on the cards as this turns from compensation into a matter of principle for some farmers. If iwi can take any lessons from LIC, it is not to wish too hard for what you want, because you may end up getting it. ■ The Offal Pit is an opinion editorial not necessarily reflecting the views or policies of Federated Farmers.

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