Drought widening essential to prevent double-dip recession
Released 20 Apr 2010
Federated Farmers has welcomed a widening of drought measures to encompass the Bay of Plenty (Western Bay of Plenty, Rotorua, Kawerau, Opotiki, Whakatane and Tauranga), South Taranaki, parts of South Canterbury (Mackenzie, Waimate and Waitaki) and Otago (Central Otago and Dunedin City). It believes the measures will help reduce risk of a double-dip recession.
"The 2007-2008 drought cost the economy $2.8 billion and was a major recessionary factor, so the decision to widen drought programmes is essential," says David Rose, Federated Farmers adverse events spokesperson.
"I must stress this is not ‘cash in hand' to farmers, as some may think. If there is financial assistance then it is based upon means testing.
"I happen to know that in one major area the number of farmers receiving such assistance can be counted on less than the fingers of both hands.
"Instead, these drought programmes are really about advice that speeds recovery back to full production.
"The relevant Rural Support Trusts are now funded to bring in expertise to plan and advise farmers on everything from farm management and budgeting right through to counselling, given this is a fairly stressful time.
"Inland Revenue also gives farmers some latitude thereby reducing an administrative headache.
"Right now, a large swathe of New Zealand's dairy herd and an increasing number of our beef and fibre farmers are being affected by what will soon become a ‘green drought'.
"Impending rains will come too late for effective pasture growth or renewal, so the drought's effect will be felt into next season and possibly, the one beyond that. It will have an economic cost, but the advice that's now on offer will speed up recovery.
"That's why drought assistance is vital as the economy turns on its farmers, who generate 64 percent of everything we sell to the rest of the world. It's why water storage infrastructure must now become a national priority too," Mr Rose concluded.
Federated Farmers Drought Line
Federated Farmers provides a platform to match farmers with feed to sell, with those needing it via 0800 DROUGHT (0800 376 844). This is a free service for members as well as non-members of Federated Farmers. List's are also linked in the Federation's weekly e-newsletter, Friday Flash and can be accessed via www.fedfarm.org.nz.
Rural Support Trusts
|
Taranaki |
Harvey Leach |
|
Bay of Plenty |
Derek Spratt |
|
South Canterbury |
David Hewson |
|
Otago |
Andrea Ludemann |
For further comment, please contact:
David Rose, Federated Farmers adverse events spokesperson, 03 235 2619, 027 414 2573
Alan Law, Federated Farmers Bay of Plenty provincial president, 07 304 9536, 027 417 1818
Neil Heather, Federated Farmers Rotorua/Taupo provincial president, 07 357 2142, 027 421 4050
Peter Adamski, Federated Farmers Taranaki provincial president, 06 751 4217, 027 555 0875
Dr William Rolleston, Federated Farmers South Canterbury provincial president, 03 687 4050, 027 246 0634
Ross Ewing, Federated Farmers North Otago provincial president, 03 439 5292, 027 485 1362
Michael Lord, Federated Farmers Otago provincial president, 03 486 2730, 027 438 2097
