Budget 2011 ‘boring in a positive way' -  Read more »
‘Turnover does not equal profit' Federated Farmers says of Dominion Post taxation story - Read more »

Up a creek, with a paddle - Read more »
Revenue does not equal profit - Read more »

Farm output and input prices up - Prices were up for farm outputs and farm inputs in the March quarter, according to Statistics New Zealand's Producer Price Index. During the March quarter output prices, the farm-gate prices farmers get for produce, were up 8.4 percent for dairy farmers and up 6.8 percent for sheep, beef cattle and grains farmers. On an annual basis output prices are up a whopping 22.5 percent and 25.3 percent respectively. Meanwhile, input prices, the prices farmers pay for farm operating costs, were also up in the March quarter, by 1.2 percent for dairy farming and 4.4 percent for sheep, beef cattle and grains farmers. On an annual basis the increases were 3.6 percent and 6.6 percent respectively. This mainly reflects increasing fuel and livestock prices. The fact that output prices outstripped input prices over the past year indicates an improvement in the sectors' profitability, but farmers will be concerned about any increased momentum in input cost inflation.

Dairy prices slip - The average price for a basket of products in Fonterra's GlobalDairyTrade online auction fell 1.1 per cent this week, after relatively flat results in the previous two fortnightly auctions.  With other commodity prices falling over the past fortnight (most notably oil, down 8 percent in a fortnight), the fall in dairy prices appears to be relatively modest. Overall, the GDT Trade Weighted Index remains 5.7 percent higher than at the start of January and 6.8 percent higher than June last year.

Rabobank Agribusiness review - Prepared by Rabobank's specialist Food and Agribusiness Research and Advisory (FAR) division, the New Zealand and Australia Agribusiness Review provides monthly commentary on the region's economic and agricultural conditions. As a snapshot of the food and agribusiness sectors, the review includes recent price and market trend data and analysis and covers a range of topics. Click here to read the latest copy.

Bay of Plenty - Federated Farmers Bay of Plenty president John Scrimgeour spoke to the Bay of Plenty regional council at their annual plan hearings this week. John urged the council to reconsider recent funding decisions which resulted in a 400 percent hike in annual consent charges for water takes. Federated Farmers has been representing consent holders and, while council has decided not to make an inflationary increase to the fees this year, a strong case was made to reduce charges. John supported the council on making a $100,000 grant to the Animal Health Board (AHB) for possum control, something Federated Farmers has sought since the regional council indicated in 2009 that it intended to stop the funding.

Central Otago - We submitted that the Central Otago District Council (CDOC) have done reasonably well to propose a rates increase close to the level of inflation, but we are concerned at how the rates pie is distributed. The council makes good use of targeted rates and differentials to reflect the relative benefit of each council activity, but farmers are paying too much for many services. The key reason for this is the land value basis for the majority of rates, which disadvantages farmers substantially. While capital value (the rating alternative) is not an accurate reflection of the farmer's relative use of the services, land value is even worse. We also want council to fund tourism promotion from a targeted rate, which would be more transparent and, properly  applied, fairer than a differential.

Southland - For the annual plan Environment Southland (ES) indicated a general rates increase of 6.6 percent, but increased total revenue of 12.4 percent, and expenditure to increase by 11.7 percent. The majority of this expenditure is to be felt by the region's dairy sector, facing increases of between 14 percent and 20 percent. This is mainly due to the significant additional expenditure proposed under the dairy differential. We opposed some of the costs being recovered under the dairy differential, including the entirety of a new staff position for the Waituna catchment, as being expenditure that reflected community benefit and extending from ES's regulatory responsibility. We also opposed the structure of the dairy differential itself, which treats good dairy farmers in the same manner as those who are regularly significantly non-compliant, regardless of the time, effort and money each farmer commits to mitigating their farm's environmental effects. Council's decision to fully fund the local share of the AHB programme means the region's TB Free programme is fully funded, something the region's farmers appreciate.

Power take off (PTO) shafts - A recent accident involving a tractor's PTO shaft in Southland highlights the need for farmers to remain vigilant. Most PTO accidents occur when an operator's clothes become entangled in the PTO shaft. These accidents can be avoided by taking a few simple steps. These include making sure all people are clear before engaging the PTO, turning the engine off while attaching a PTO-powered implement, disengaging the PTO and stopping the machine if you get out of the tractor seat, and avoiding wearing clothing which could easily tangle in parts of a PTO. If you have questions or wish to discuss this issue, please click here. 

Gibbston Water measuring field day - Topics will include water measuring regulations and implications for water users, measuring options, open channels, races and piped water and future proofing, certification and verification.  This field day will be held at the Peregrine winery on Kawarau Gorge road in Gibbston Valley on Tuesday 24 May 1.30pm - 3.30pm. For more details email bruce.monaghan@orc.govt.nz

Federated Farmers Facebook page - If you're on Facebook make sure you ‘like' our page. That way you can post feedback and keep up to date with what is happening in the world of Federated Farmers. Currently we're running our first ever funniest farming video competition. Entries are posted on our Facebook page with the winner receiving an iPad2.

Bovine tuberculosis control programme - The Animal Health Board (AHB) is urging farmers and herd owners in the Waikato, Canterbury and Horizons regions to be visible in their local regional council public gallery to support the AHB's bovine tuberculosis (TB) control programme. Each regional council is proposing to cut its contribution to the programme, which would also significantly reduce central government and farming sector investment in the programme. Any cut to the regional council contribution would seriously compromise our ability to eradicate TB in the region.
Regional council draft annual plan 2011/12 public hearings dates are:
Horizons: Monday 23 May, Wednesday 25 May and Thursday 26 May

Red Meat Sector Strategy Report released - Beef and Lamb New Zealand and the Meat Industry Association have released this document, which is designed to identify and substantiate the areas where the largest gains can be made by the sector; in-market co-ordination, efficient and aligned procurement and sector best practice.  To download a summary or obtain the full report and to submit your views on the strategy, click here.

Gypsy Day - If you are changing addresses please let us know by calling 0800 327 646. If you are employing staff, Federated Farmers have a variety of employment contracts at a discounted rate for members. For more details, click here to go to our website.

Fair water allocation in Canterbury's Natural Resources Regional Plan (NRRP) - Meridian Energy appealed Canterbury's NRRP  to the High Court.  Federated Farmers joined the appeal in order to protect farmers' interests.  We opposed amendments which would have given priority to hydro-electricity generation over other water uses, to ensure that all users will be treated fairly in the allocation process.  Following negotiation over the past few weeks, an amendment has been agreed to which does not benefit hydro-electricity generation at the expense of other water uses such as irrigation.  For further information please contact Lionel Hume, Senior Policy Advisor, Ashburton.

Hurunui-Waiau Draft Zone Implementation Programme (ZIP) - A draft Hurunui-Waiau ZIP (part of implementing the Canterbury Water Management Strategy in the Hurunui District) is currently out for comment.  This document is crucial for all current and potential water users in the Hurunui and Waiau catchments.  It can be accessed at by clicking here.  Topics covered by the draft ZIP include: environmental flow and allocation regimes, water use efficiency, water quality, economic development and water storage.  It is vital that North Canterbury people read the document and provide feedback to the Zone Committee.  Written responses should be emailed to admin@canterburywater.org.nz by 3 June 2011.  For further information please contact Lionel Hume, Senior Policy Advisor, Ashburton.

Canterbury's Natural Resources Regional Plan (NRRP) soon to be operative - Seven years after it was notified, it is anticipated that Canterbury's Natural Resources Regional Plan will be made operative at the council meeting of 26 May, following the recent resolution of Meridian Energy's High Court appeal.  The NRRP process has been a massive effort for all of those involved.  Federated Farmers submitted comprehensively on all five chapters (Water Quantity, Water Quality, Soil Conservation, Wetlands, and Beds and Margins of Lakes and Rivers).  We presented at over 30 hearings and were actively involved in the resolution of High Court appeals.  Although the plan isn't perfect, Federated Farmers achieved many good outcomes for farmers.  The operational plan hopefully coincides with the dawn of a new era under the Canterbury Water Management Strategy, which embodies a much more collaborative and integrated approach to water management. For further information please contact Lionel Hume, Senior Policy Advisor, Ashburton.

Bees/Grain & Seed conference - The joint Federated Farmers Bees/Grain & Seed conference will be held in Ashburton at the Hotel Ashburton on 25-27 May 2011.  The conference will feature a wide range of interesting topics and discussions. The line up of speakers includes Labour MP Damien O'Connor, Foundation for Arable Research CEO Nick Pyke and Sam McIvor, Pork Industry Board chief executive officer. For the conference and AGM registration forms, please click here. For more information please call Shona or Carly Sluys at 0800 327 646.

TB Free New Zealand Young Farmers (NZYF) Annual Conference - The Animal Health Board (AHB) are sponsoring the NZYF Annual Conference on 29 June to 2 July.  For all herd-owners, to assist in controlling the possible spread of bovine tuberculosis (TB) in New Zealand, here are a few things to remember when moving your cows on Gypsy Day.

• Contact the AHB to update your herd contact details
• Make sure you complete your required TB test prior to moving.
• Herd-owners should ensure their animals have official AHB ear tags if required and complete an Animal Status Declaration form.
• If moving animals from within a Movement Control Area (MCA), a pre-movement TB test must be completed before any stock are moved off the property.

Farmers receiving stock for grazing should also be mindful of introducing TB onto their property. The bottom line is, do not accept animals if the information on the herd's Animal Status Declaration form is incomplete or not provided. To update your details, or for any other TB enquiries, call the AHB contact centre on 0800 4 TB INFO (0800 4 824 636).

Hon David Carter speaking in Wairoa - Chris Tremain MP for Napier and Wairoa invites you to come along and hear the Hon David Carter  Minister of Agriculture, Biosecurity and Forestry speak on a range of topics.  To be held at the Vista Motor Lodge Restaurant in Wairoa tickets are just $20 per head with a finger food dinner, everyone is welcome. Please RSVP to Mary Crarer by emailing  mary.crarer@parliament.govt.nz by Monday 23 May.

General Skills training - Injuries can be prevented by being safe on the farm. It's crucial to make sure your farm team know how to operate quad bikes or tractors safely.  AgITO's General Skills qualification is recommended for those with limited experience in the agriculture industry or those requiring vehicle and safety training at any level. 
Topics covered by the National Certificate in Agriculture, General Skills (Level 2), include vehicle safety and operation, fencing, tractor safety and livestock and pastures. Farm safety training provides greater awareness of hazards and will improve the safety of your whole farm team.  To enrol or to find out more, contact your local AgITO adviser today on 0800 691 111 or visit their new website at www.agito.ac.nz.

Coming soon - The first Occupational Health and Safety Policy designed especially for the Rural Sector which includes multiple Accident and Hazard Registers.  This great new policy will be available from Monday 30 May by calling 0800 FARMING (0800 327 646).

Devan Plastics - "We are always getting ready to live, but never living!" - Ralph Waldo Emerson. Devan has a deal to liven up your week; 25,000 litre water tanks in mist green for just $2747 including GST and delivery. Call 0800 5000 26 and quote your Federated Farmers membership number to order. Hurry - there's only fifty available, so get in quick. For further details, click here. 

New Bronze Sponsor  - Morley Security & Investigation Group - Federated Farmers are delighted to welcome Morley Security & Investigation Group (MSIG) to our family of Bronze Sponsors.  MSIG add a valuable employment checking service to our member benefits, complimenting the employment agreements and legal advice service already available to members.
MSIG is an independent, licensed security consulting and private investigating company established in 1987 and currently provides services to over 175 businesses in New Zealand.  MSIG can greatly assist members when recruiting new employees by completing a range of security checks such as criminal and traffic records, traffic convictions/infringements and credit checks.   These checks are crucial to ensure that you are employing honest staff who will need to drive expensive farm equipment or manage day to day expenditure or funds. In addition to pre-employment checks MSIG also carry out workplace dishonesty investigations.
The standard one-off Request for Service fee has been discounted by 25 percent for Federated Farmers members, down to just $150 + GST. The cost of each check thereafter is plus - criminal conviction record $25.00, Demerit Points/Licence Suspension record $35.00, immigration work/status $25.00 and credit history $35.00 (all + GST.)
Call MSIG on 04 471 1663 or email msig@paradise.net.nz to arrange pre employment checks - a little invested now could save a great deal later on! 

Versatile is Warming Your Heart! Sign up for any of Versatile's 40 great homes and get a free installed heat pump. Hurry - only 30 to give away.  If you haven't already checked out Versatile's fantastic home plans do it today. Plus, visit our website to enter to win one of 30 rugby balls signed by Richie McCaw.  Terms and Conditions apply. Call 0800 VERSATILE or visit www.versatile.co.nz for further details. 

Versatile's May mark down - They've got outrageous deals on garage kitsets. Single garage kitsets are priced from $4599 and double garage kitsets from $5699. Visit their website to enter to win one of thirty rugby balls signed by Richie McCaw.  Terms and conditions apply. Hurry, for this is for May only! To find out what other great deals are available, call 0800 VERSATILE or visit www.versatile.co.nz. 

Wines online.co.nz - Save big dollars on this week's special wines. To view these and many other fantastic award winning wines at unbelievably low prices, look no further than winesonline.co.nz.

Quote of the week - "Federated Farmers described it [Budget 2011] as "boring in a positive way".  One suspects the Government will like that description."  - Liam Dann, Business Editor, NZ Herald.