Federated Farmers Dairy chairperson, Lachlan McKenzie

Recently a comment made by me was reported in the media.

"I think Treasury needs to take a forensic look at the anti-dairy policies emerging in some of the largest regional councils. Farmers need consistency and clarity and without it, the dairy sector's growth and economic contribution will be seriously impaired".

Let me explain this statement.

We all know what is simply ugly and should not be tolerated, like putting something nasty straight in to the water. We all know what good practice looks like, a park in town or a well managed native bush reserve. We farmers know, however, that the real world of running farms is not like reading a text book on farming. We all have a large number of resources (e.g. labour) and risks (e.g. climatic events) that all need to be managed to produce food from our farm systems.

What we now have is staff on regional councils telling us what they think is acceptable on-farm practice and what is not. Regional councils are changing their interpretation of the rules as they go along. For farmers this is creating uncertainty and consequently mistrust of the regional councils.

For example Horizons' One Plan would mean many dairy farmers under current technology will not be able to farm profitably and reach the nitrogen leaching targets set by council. The result of this extra uncertainty is that on-farm investment is severely reduced. This reduction in investment will then impact on the growth going forward.

Under the section 32 of the RMA, regional councils are required to produce economic impact statements on any proposed changes to rules or plans. Unfortunately these economic analyses often lack vital particulars so communities (councils) are making decisions without robust economic information. Several Environment Court judges have ordered new and improved section 32 analyses to be done.

All these actions are having a large negative impact on the ability of farming to grow, and especially, dairy farm.

We are asking Treasury to have a forensic (in-depth) look at the economic impact of these rule changes on New Zealand. We feel Treasury is the Government department that has the greatest ability to carry out the economic analysis and reporting needed in order to present to Government on the impacts on our standard of living. Do we want first world living standards in New Zealand or not? If we do, we are going to have to continue to export in order to pay for all the goodies we like to buy. Tourism and dairying bring in half of New Zealand's income. Tourism is struggling at the moment with the high dollar, so it is left to Dairying to pay New Zealand's way. Fonterra's increased forecast highlights this point and is, of course, most welcome.

Federated Farmers wants to work in collaboration with regional councils on reaching the aspirations of all in the community, on improving living standards which come from more income and improved environment and social justice.

We at Federated Farmers are doing the hard yards at a political level and are teaming up with Fonterra and DairyNZ before fronting up to regional councils with a united voice.

When your local group meets with your regional council, make sure everyone knows what the game plan is before going into the meeting. Arrange time (maybe an hour) before the meeting so this can happen. A united front is best.

Organise regular meetings with all parties, as only by talking and working in a collaborative way will we solve these issues amicably. Avoid being confrontational as all issues have to be talked through.

To those of you doing the real work on the farm, understand that regional councils are tightening up on their interpretation of the rules and are making sure they are closely adhered to - check your local rules. We want you all to comply:

• Check your consents and read the fine print.
• Check your processes for dealing with effluent are clear and displayed in an appropriate place.
• Make sure all your staff know what is required of them.
• Make sure the irrigator is moved and the sump pumped out.

Regards,

Lachlan McKenzie
Chairman
Federated Farmers Dairy
Phone:  07 332 3440
Mobile:  021 382 442
Email:  lmckenzie@fedfarm.org.nz

Sharemilking news

The review of the Variable Order Sharemilking Agreement is progressing well. We have clarified a few of the clauses in the basic agreement but the bulk of the changes are with the dispute resolution and arbitration clauses, easing the way for parties to solve disputes quickly. We are hopeful that the new agreement will be ready in the New Year. For those of you who need to sign up before the new one has been through the required process, be assured that even if you sign the current agreement, you will be covered under the new agreement when it comes out.

All sharemilkers will need to negotiate with their farm owners carefully if Fonterra's proposed changes pass the vote. Please contact any of the Sharemilkers' section representatives by clicking here to discuss the issues.

NEW ZEALAND DAIRY INDUSTRY AWARDS

Entries are now open for the 2010 New Zealand Dairy Industry Awards, including Sharemilker of the Year, Farm Manager of the Year and Dairy Trainee of the Year. This is an excellent opportunity for sharemilkers, farm managers and dairy trainees to put themselves forward for these prestigious titles. Previous winners have shown how valuable the titles are to their businesses and dairy careers. Federated Farmers is pleased to continue its long-standing support of these awards and we encourage all interested dairy members to enter. For more information, please contact one of the regional representatives by clicking here. Entry forms and launch dates of the regional competitions can be found by clicking here.

Ciarán Tully, who attended the Auckland-Hauraki regional launch commented on how Henry van der Hayden spoke candidly about his own ‘pathway to success' (the theme of the day), remembering how he and his wife, Jocelyn started out sharemilking in 1980. Back then the payout was $1.64 and drawings were $2,039 a year! Ciarán said Mr van der Hayden was inspirational and a key message was to always ‘execute with excellence'. He also highlighted that dairy was once again the number one industry, having over taken tourism.

Ciarán also commented on how the launch was buzzing with excited people, of which, quite a few signed up to the competitions on the spot.

MORE NEWS ON REGULATED RAW MILK

This was reported on in the last Dairy Alert. The Bill has now made its way to Select Committee.  It is interesting to read in the explanatory note on the Bill:

"The under-pricing of regulated raw milk reduces the efficiency of the broader market for farmers' raw milk. This is because vertically integrated independent processors would prefer to continue purchasing as much regulated raw milk as permitted rather than sourcing supply directly from farmers, because regulated raw milk is cheaper than milk supplied by farmers".

To read more on the Bill, please click here.

We have seen early signs of growth in the membership of the Dairy industry group over the latter part of 2009, following a tough year for many dairy farmers. The recent announcement of increases in payouts provides an opportune time to encourage fellow dairy farmers to join Federated Farmers. The Federation has a number of initiatives planned to grow the membership in 2010 including putting field officers ‘on the ground' in provinces to get to know our members' needs and bring on board new farmers. We have had four field officers working in selected areas over the last few months and this has proved positive in getting new members involved.

If you know of someone who should be a member please email General Manager of Membership and Business Development, Helen Mexted, by clicking here and we'll get in touch with them. Every member who joins up as a result of your recommendation will receive a $50 discount off their membership and we'll send you a $50 petrol voucher.

One of the many benefits of belonging to Federated Farmers is the training offered to members.  Each year a programme of leadership courses and support seminars are run in Wellington and throughout the country and are either free or heavily subsidised.

RURAL SUPPORT SEMINARS

This year Federated Farmers provided three seminar programmes across 27 provinces. Seminar topics included employment relations, legal obligations, risk prevention, cash flow management and tax advice. These informative and supportive seminars are facilitated by experienced professionals who are the leaders in their fields of expertise and commercial experience. The rural support seminars are extremely well attended especially during the more difficult times and the Federation assists by providing the seminars either free or at a very low registration fee for members. Please look out for the 2010 rural support seminar programme which will be available soon.

LEADERSHIP COURSES

The Federation also held six Leadership courses in Wellington throughout the year. These courses are designed to provide a challenging and highly interactive environment for learning and practising new leadership and confidence skills. These skills are highly practical and very beneficial when returning to the rural community. Past participants have returned to their local communities and used these new skills on their farms or with local organisations such as committees, schools, councils, boards or social groups. These highly sought-after courses are valued at $1,200 - $1,500 and are provided free to members. Courses fill up fast so to find out more about the 2010 courses, please click here.

Federated Farmers we proud to have been educating and supporting rural leaders for 60 years.

Legal Advice

We continue to receive regular calls from members and positive feedback on the employment and legal services offered by the Federation.  When you have an issue, it's reassuring to know that FREE legal advice is available simply by calling 0800 FARMING (0800 327 646) from 8.30am to 5pm. Common queries recently relate to sharemilking agreements, stock lease and grazing. Naturally we recommend a range of legal agreements to assist issues arising that are available from just $45 for two copies of each agreement. Click here to see the full range of contracts and agreements.

FEDERATED FARMERS GOLDEN BAY DAIRY CHAIRPERSON, MICHELLE RILEY

It has been a busy period with Brent and I recently hosting the judges of the Tasman District Council (TDC) Environment Awards for a quick briefing as our Aorere catchment group has been shortlisted for their Rural Environmental Award. Also this week our farmer and community spokesperson for the group, Sue Brown, presented an overview of the catchment group at the New Zealand Grassland Association's conference in Waitangi. 

The group continue to be encouraged by the progress made from the collaborative approach taken by farmers in the community. We are also proud of the national interest in the catchment, not only in water quality but also the open communication within the farming and wider community.

I do however have to report that the visit from the Minister of Agriculture has been put on hold for the time being as he is no longer able to make that set date. To read more about the Aorere catchment programme, please click here.

The local Streamcare group has been out and about releasing riparian plantings, starting new plantings and working in the nursery towards a bigger autumn planting. Growth rates have been very promising.

The Federated Farmers Golden Bay executive has met with Mayor Richard Kempthorne and councillor, Stuart Borlase, for a constructive dialogue over rating issues. Further to this Federated Farmers policy advisor, Matt Harcombe, and the financial officer of Tasman District Council will be discussing ways council can address inequitable rating takes from landowners in the Tasman region. Hopefully this will be more than just a talkfest! It was generally agreed that central Government directives and spending are challenging rating in the regions. Further drops in allocated roading funding will really affect regions like ours that have a large tourist impact on roads, particularly rural gravel ones, which must be increasingly funded by locals. Rodney Hide has yet to deliver on promises made to unravel the issue.

FEDERATED FARMERS SHAREMILKERS’ SECTION VICE-CHAIRPERSON CIARÁN TULLY

Milk producers should pay more attention to their milk as it leaves the farm. We are now part of the country's number one industry. Farmers should treat their milk not as a raw product for which ‘we get paid every month', but as a product that is putting food on the tables of the world.

If we farmers spent as much time, effort and interest on the dairy Industry as we spent chasing our first girlfriend, things would be sweet! Good relationships take time to build and develop. The same can be said of the dairy industry.

It is important that farmers invest in their industry by being proactive, attending meetings and taking part in discussions regarding all our futures. We need to understand where things are going, so too, do our industry leaders.

The recent rise in payout gave us all warm fuzzies, but it is not the be all and end all. It is like a good watch with a dodgy strap. We keep looking at it and admiring it, but one day the strap will break and when we look down, the watch will have gone.

So be passionate in the paddock and take an interest in the dairy industry.

Ciarán Tully
Vice-chairperson
Federated Farmers Sharemilkers' Section
Phone:  07 867 5330
Mobile:  027 249 8306
Email:  ciarantully@yahoo.com.au

The recent payout rises may have lifted the heavy load from farmers' minds however, Federated Farmers Dairy suggests that you keep hold of the lessons just learned.

• Don't run up any more debt
• Get overdrafts back under control
• Keep cost structures under control to improve farm profitability
• Steadily reduce debt, as debt servicing is expensive

SUSPECT AN EXOTIC DISEASE OR PEST? THEN PHONE 0800 80 99 66

It is important if you suspect an exotic pest or disease you phone the Ministry of Agriculture and Forestry's (MAF) Exotic Disease and Pest 24 hour emergency hotline on 0800 99 66. That way MAF Biosecurity can investigate and advise as necessary. All calls are kept in confidence.

SUPPLEMENTARY FEED

New Zealand grain prices are at their optimal. Contact your local provincial Federated Farmers Grain and Seed chairperson, by clicking here, to discuss local prices and availability. Federated Farmers also advises all members to use one of our grains contracts when making any sort of transaction. Click here to get yours.

CALF REARING

Many of you will be sending, or will have sent, calves off-farm for rearing. Just because you have sent these stock off farm does not end your obligation to look after them correctly. Check the stock regularly so that there are no surprises when you come to collect them. Federated Farmers recommends a contract be used for leasing of all stock. Click here to order yours.

FONTERRA SHAREHOLDERS - VOTE TODAY!

This is your opportunity to have your say. Fonterra is a co-operative, run by farmers, for farmers. You have a responsibility to make sure your co-operative works for you. There is no point in complaining if you don't bother to vote and there is no reason to think that your co-operative will continue to do well if you don't take an interest in it. Your vote really does count - large or small. You are responsible for the success of you co-operative. Vote today - if you have not already done so. Check your voting pack for details on how to vote. If you have lost your pack, call 0508 666 446 now. Postal or proxy votes must be in the hands of the returning officer by 10.30am Monday, 16 November for:

• Director elections,
• Constitutional votes and
• Capital restructure proposal.

DAIRY COUNCIL MEETING

The next meeting of Federated Farmers Dairy council will take place in Wellington from 17 to 18 February 2010. More information will be available closer to the time.

TIGHT MANAGEMENT FOR TIGHT TIMES

DairyNZ would like to ensure that farmers are in the best possible shape this Christmas, despite the challenges presented by the current economic climate. They are currently working alongside 30 farmers across New Zealand who excel in cost control and maximising the amount of pasture eaten. Monthly on-farm field days will discuss key management decisions. To view the field day schedule, click here. Alternatively, for more information you can visit the DairyNZ website by clicking here.

DAIRY FARMING SNAPS

Last year the Animals in Schools Education Trust (AISET) produced ‘Cold Snap Lambs', a hugely successful book which has been enjoyed by children across the country. The subject of a new book is to be dairy calves and dairy farming and will be again aimed at 9 to 12 year old students. AISET is now calling out for great photos of life on a dairy farm. If you have any digital photographs that the Trust could use please send them through to Ann Thompson by clicking here. Federated Farmers is proud to be a trustee of AISET.

BEN & MARK, BOYS OF THE HIGH COUNTRY

Christine Fernyhough's true story of two boys who live on one of New Zealand's largest high-country stations, with stunning photographs by John Bougen is now available for sale on the Federated Farmers website. Federated Farmers have it for the special price of $30 for members (non-members $36.99). Ben & Mark, Boys of the High Country is destined to become a New Zealand classic and would make a beautiful Christmas gift. We have a limited number so get online, by clicking here, and order yours today.

MORE MEMBERS BENEFITS AND OFFERS

To view special discounts exclusive to Federated Farmers members, please call 0800 327 646 or click here to log onto our members only area.

Contracts, agreements and leases

These include land, stock, contractor, sales and purchase, agreement to grow, log books, access pads, Over Dimension Certificates and employment. Remember, it's a legal requirement to have an employment contract for EVERY employee so if you don't have a current employment agreement, then order one now. Contracts, agreements and leases are available in both electronic and hard copy formats for your convenience. To purchase, call 0800 FARMING or click here.

Please remember that if you have any issues or queries you would like to discuss, please feel free to contact Federated Farmers on 0800 FARMING (327 646) or contact your local Federated Farmers Dairy representative or one of the Executive team as listed below.

Federated Farmers of New Zealand
PO Box 715
Wellington 6140
Tel:  04 473 7269
Fax: 04 473 1081
www.fedfarm.org.nz

Staff Contacts

Dairy policy advisor
Ann Thompson
Phone:  0800 327 646

Executive Contacts

Chairman
Lachlan McKenzie
Phone:  07 332 3440
Mobile:  021 382 442

Vice-chairman 
Willy Leferink
Phone:  03 307 2666
Mobile:  021 796 037

Vice-chairman
John Bluett
Phone:  07 825 9709

Executive
Robin Barkla
Phone:  07 323 6958

Executive
Andrew Hoggard
Phone:  06 328 9677
Mobile:  027 230 7363

Sharemilkers Representative
Jeff Bolstad
Phone:  07 884 4127

A full list of the Federated Farmers Dairy team can be found by clicking here.