Nothing is easy
Released 20 Dec 2010
Stew Wadey, Federated Farmers Waikato provincial president
Agriculture has, and will always be a challenging industry to be part of. The last four years have shown me that nature is the boss and we have to accept that. That is why farming is a challenge like no other, for all those who wish to secure their livelihood from this industry. But right now, physical, mental and financial stresses for those involved in agriculture come as the result of four successive and intensely dry periods in the Waikato region. This is definitely not what farmers would ask for at such a special time of the year.
The Minister of Agriculture's declaration of a medium level drought last week for the Waikato, Hauraki and Ruapehu regions is an indication that the bread winner for the New Zealand economy is under pressure. And also signals that Government is aware of the situation and like us, anticipates that the much needed rain will continue to replenish our very dry soils.
But significant collateral damage has all ready been done by the extremely dry October to mid December, for example supplementary feed harvesting - like silage - has been extremely limited around the region. As well as many summer crops, such as turnips, that are up to three weeks behind in plantings, which obviously means they are not available to feed out.
To bridge that feed availability gap, livestock farmers can buy in supplementary feed, such as blended meals of Palm Kernel Expeller (PKE). Federated Farmers Waikato is very concerned however, that silage has been quoted at $160 a bale by a contractor and PKE at nearly $400/ton. In response to our concerns, Federated Farmers Waikato is collecting information from concerned members about this rapid rise in the cost of these products and is evaluating what we intend to do about this.
It's important however, for the public to realise what a medium level drought declaration actually does for the drivers of our economy and that is to make Ministry of Agriculture and Forestry (MAF) funds available to the Rural Support Trust (RST). The RST can then engage the right skills to help farming families through the stressful times. This includes farm business management support, such as the ability to apply for IRD deferral, as a result of reduced production which leads to reduced income. In the end this stretches cash flows quite severely, which is the situation many of our farmers are in right now.
I must stress that absolutely no tax payer's money goes directly to farmers; we are on our own as to our farming destiny. Federated Farmers focus now is to endeavour to keep our members up to speed on what is best practice, therefore enabling them to farm through this tough period.
72 percent of the primary food producers in the Waikato are owner operated family businesses, which can mean at this time of year, their priorities are adjusted. So for us and our farm staff, it is important that we enjoy Christmas with family and friends and hopefully this will help us refocus on why we want to be involved in such a vibrant industry into 2011 and beyond.
The Regional Drought Committee will meet on Wednesday, 22 December with all the organisations that serve the agricultural industry. This body co ordinates a strategy for a collective and supportive approach for our rural community, plus we advise the Agriculture Minister, the Hon David Carter on a regular basis so that he is aware of opinion on where things are at in our region.
