Welcome to the post-Conference edition of Tussock Talk - the quarterly newsletter of Federated Farmers High Country. The bulk of this newsletter consists of synopses of the presentations made to conference. Power Point presentations are available for some of these - contact Industry Manager, Bob Douglas (bdouglas@fedfarm.org.nz) if you would like a copy of any particular presentation.

In addition edited versions of presentations from: Tony Roper, Linda Newstrom-Lloyd, Kelvin Whall, Hon. David Carter and Chris Kelly can be viewed by clicking here.

HIERACIUM CONTROL TRUST

John Aspinall reported on past work and  the future of the Trust. It had raised over $2 million for research and monitoring over the years and had released six control agents. The work is now close to completion and it is hoped that Regional Councils and other agencies would continue with the work started by the Trust.

CHAIRPERSON’S ADDRESS:

Chairperson Graham Reed noted that the theme for this year's High Country Conference, "Sensible Solutions" was chosen because we have seen more forward progress in the past 12 months than has been evident for many years. This gives hope that common sense may prevail over the political idealism that has blighted High Country issues in recent years.

Positive signs are contained in commodity prices and conference will contain more ideas on how meat and wool prices may be further enhanced. Land Tenure has always been a central issue for the High Country and this committee, but again there are signs of achieving a sensible solution. The work put in by Jonathan Wallis, Kit Mouat and their team has been a time consuming and costly exercise and their commitment cannot be overstated and it deserves success.

A recent meeting with the Ministers of Conservation and Biosecurity promoting the advantages of grazing in conjunction with conservation on retired pastoral land also gave hope that common sense may be adopted in policy here. Subject to DoC investigating carbon sequestration opportunities and some concerns about grazing wetlands we were in agreement that there are win-win opportunities

However, there is some work that still needs to be done and perhaps the most obvious matter in this category is the Ministry for the Environment's proposed National Policy Statement on Indigenous Biodiversity. High Country has made a submission on this document which suggested that the authors of the proposal could look for some sensible solutions. Crown land, for instance, could be used for offsetting vegetation removal elsewhere.

(Full text available by clicking here) 

GUEST SPEAKER: HON. DAMIEN O’CONNOR

Labour Party spokesman for Rural Affairs, Biosecurity and Agriculture, Hon. Damien O'Connor addressed conference. He spoke on a number of issues including ETS and Crown Pastoral Land Act amendment.

He explained that the Labour Party's intention to bring agriculture into the ETS scheme earlier than the National Party was to enable sufficient funds to be raised for research. This would retain a robust industry, thereby retain New Zealand ownership. The dangers of this not happening were already evident in the High Country with wealthy foreign owners taking over and not looking after the properties in the "High Country way".

The proposed amendment to the Crown Pastoral Land Act had engendered some passionate presentations at Select Committee. There is some apprehension that the amendment does not cover all concerns that have arisen in recent years. He urged High Country farmers to concentrate on biosecurity issues once the rent matters have been settled.

FUTURE OF THE WOOL INDUSTRY

Chris Kelly - Chief Executive, Landcorp Farming Ltd, presented some thoughts on the future of the meat and wool industries in New Zealand using the Fonterra model as the way ahead.

Landcorp is the country's largest farmer with an asset base of $1.7 billion. Last season it produced 10,268 tonnes of beef; 9,639 tonnes of sheep meat; 2,723 tonnes of shorn wool; 2,060 tonnes of venison; 12.0 tonnes of velvet and 11,504 tonnes of milksolids so it has a wide base from which to judge commodity performance. It was interesting to note that while returns (cents/kg) for meat and dairy had increased over the past 20 years wool prices had remained fairly static - and had fallen markedly since the Korean War wool boom.

Despite the fact that only 57% is from milk and powder exports the dairy industry had outperformed other commodities. The most likely reason for this was the complexity of the supply system of these other commodities. The meat industry to U.K., for example, had about six suppliers, each with their own agencies negotiating market access with about ten major retailers. Such complexity results in competition among the suppliers. Landcorp's opinion is that the New Zealand red meat industry model is broken; payment signals are procurement driven; farmer behaviour opportunistic and ephemeral and that processor behaviour is asset utilisation driven.

Landcorp's solution to this, "Plate to Pasture", was based on a consumer led integrated business model, incorporating branded, premium niche market of innovative, consistent quality products. Other features would be an industry animal database integrated into processing, science and technology based IP and integrated genetics/farm systems. Good communication and collaboration were other essentials for an efficient system.

Our major pollinator, the honey bee, is facing an increasing number of threats. Two years ago Federated Farmers Bees section initiated the "Trees for Bees" project to encourage plantings beneficial for bees. To expand on this the Bee Friendly Farming Group was formed and was awarded a 3 year Sustainable Farming Fund starting in December 2010. The purpose of this project is to align the known beneficial plants with individual farm situations. Linda Newstrom-Lloyd (Landcare Research) with Marco Gonzalez and Tony Roper (AsureQuality) explained how the project will proceed.

Tony Roper elaborated on the importance of bees in pollination. He also outlined the challenges now being experienced by bees from pests or diseases and some agricultural practices such as irrigation and spraying. Marco Gonzalez described some of the options available to high country farmers from seasonal and establishment perspectives.

Linda Newstrom-Lloyd noted that the basis of the research is to collect data on as many candidate plants as possible. They would be looking for plant with high-protein pollen at the right time. Seasonally suitable plants were required for spring build up of populations and in autumn for winter stores of pollen for overwintering at the same time to be useful to farmers.

The group was looking for feedback from farmers to assist in this and was keen to identify plants that fit in with the overall farm plan. As well as promoting plants that benefit the bees and the beekeeper, the project aims to promote plants useful for the farmer: how useful is the plant for farmers? For example, the plants selected must not create weed problems. One of the reasons why protein-rich pollen plants like gorse, broom and willow are being removed is that they are invasive weeds.

To determine the solution to this, the group is looking for previously unrecognised sources for high-protein pollen and nectar for critical times.

Chief Executive Mark Neeson reported on progress made by the Walking Access Commission over the past 12 months. He explained that the purpose of the Commission is to provide leadership, co-ordination and information on access. It is charged to enable the public to have "free, certain, enduring, and practical walking access to the outdoors - coast, lakes and rivers". At the same time, providing these services must be balanced with the property rights of private landholders. One project, recently completed towards achieving this balance, is Outdoor Access Code.

Other projects initiated in the past year includes the employment of Regional Field Advisors, establishing the Enhanced Access Fund and releasing the Walking Access Mapping System. Although criticism had been levelled at the Commission for the way it had released the mapping system, to date there had been no dispute over its content.

The Commission is also well on the way to having signage available that will provide access seekers about conditions related to the provision of any access on private property. This was the result of a proposal made by Federated Farmers in 2010.

He said that Federated Farmers High Country is viewed by the Commission as being a key stakeholder. Access is obviously an important topic for high country farmers and the Commission looks forward to having the continued input from the High Country community.

Maurice Maxwell (Partner Berry & Co Solicitors - Queenstown) gave a presentation on some of the legal implications of ownership and public access on privately held land. In general there are three forms of land title: Fee Simple (an estate of indefinite duration, with greatest discretion); Leasehold (an estate of limited duration, under a lease) and Crown Pastoral Land (Pastoral leases and Pastoral licences). In each case, and subject to some legal requirements, the title holder has the right to decide how the property is used; exclude others from "enjoying" the property and transfer some or all of the rights to others, on mutually agreeable terms.

Under some circumstances certain people cannot be excluded from land. Emergency services need access for obvious reasons, and there is a handful of agencies with statutory powers of entry. For example, Transpower has access rights to do work to their lines. Some of these agencies prefer to have agreements with landowners, rather than invoke the statutory right. The Transpower website states that "While we have rights and obligations under legislation we would prefer to have a one-on-one agreement with you to gather our respective rights and obligations into one document."

Other access is provided through the Public Works Act.

Marginal strips provide public access to rivers over 3m wide but are quite complex. Over the years there have been different kinds of marginal strips and this is why only some are recorded on property titles. Others may be "ambulatory" - they are not fixed but follow the water-course as its location changes. Any landholder who is unsure of the status of such land through their property would be well advised to clarify the matter. The local District Council and LINZ would be the best initial point of contact.

If somebody is interfering with the rights of an occupier of land by entering their property, there are remedies under the Trespass Act 1980. Disturbing domestic animals, setting traps, shutting an open gate and opening a closed gate on private land are all offences under the Trespass Act 1980. The process for dealing with trespassers under the Trespass Act includes giving a warning to a person who is trespassing. If the person then refuses to leave, they commit an offence against the Act.

Legally, an occupier has the right to sue a trespasser for trespass to land. However, because of the costs involved, this is often not a realistic option unless the trespasser has caused substantial damage and compensation is sought.

Any landholder allowing access does have some responsibilities, particularly under the Health and Safety in Employment Act 1992, (the "OSH" Act) which covers people who control workplaces, including farmers. In this situation a farmer has a simple duty to warn visitors who have permission to be on their property of any work-related, out-of-the-ordinary hazards that they know about that may cause serious harm. If a landowner chooses to allow access and uses signage advising conditions, then if visitors are injured on the property, the landholder generally will not be liable.

Hon David Carter, Minister for Biosecurity, addressed Conference. He spoke on three specific issues: the Government's plan for high country management, the Government's focus on biosecurity and the Emissions Trading Scheme.

He said that Government has been working on a new system for setting rents for high country pastoral leases during the past 2½ years. The system now proposed is designed to charge rents based on the earning capacity of a property and to take into account a number of factors, including the productive capacity of the lease and pastoral economic conditions. Setting in law a system that will achieve a fair rent allows farmers to get on with the job of farming and looking after the high country, rather than fighting bureaucracy.

Because of parliamentary time constraints there is pressure to get this passed before the election.

New Zealand is recognised internationally as having a very good biosecurity system, but risks exist every day so there is a need to review constantly the system to ensure we are doing the best possible job. Currently the Biosecurity Law Reform Bill is before Parliament which proposes a number of changes. One of these is Government Industry Agreements designed to ensure that we are better prepared by working with industry prior to an incursion, rather than dealing with it after the event. It's the ambulance at the top of the cliff, not the bottom.

The Bill also proposes changes to the way established pests are managed in New Zealand and in March this year the Pest Management National Plan of Action was launched. This Plan defines how we will all work together to achieve our goal of delivering the best overall outcome for New Zealand. This means all landowners in New Zealand, including the Crown, will be bound to control pests such as rabbits and wildings trees, so that they don't spill over and affect their neighbours.

The Minister gave some brief examples of its current work with communities on supporting rabbit and wilding pine problems. The Government has also changed the status of Canada geese, so that this pest can be more easily managed by farmers, rather than by Fish and Game only which, he said, has failed to manage the numbers responsibly in most regions.

The National Government is currently reviewing the legislated 2015 date for bringing agriculture into the ETS, with another review due in 2014. The Prime Minister has stated categorically "we'll only bring agriculture in if it's consistent with what we see from other producers around the world - and at this point, we are not seeing a lot of movement in other countries."

The Primary Growth Partnership, a government-industry partnership launched just 20 months ago has so far pledged a staggering $477 million towards cutting-edge primary sector innovation. This is the largest-ever funding injection in this space. Government can also take credit for our international initiative, the Global Research Alliance.

Rabbit Co-ordination Group. Sherman Smith (MAF Senior Advisor, Pest Management) presented a summary of this group's activities over the past 12 months. The group was formed in 2007 and comprises representatives from: Federated Farmers, Regional Councils, DoC, LINZ, research providers, NPCA and MAF.

Projects currently underway include: Updating Best Practice Information; Training, Development & Skills Retention; Provision of Support for Collective Action; Communication of Information and Development of Appropriate tools. Nearing completion are rabbit management best practice guidelines, 1080 best practice guidelines and Regional Council standard operating procedure for aerial 1080 application.

Progress on research to optimise use of existing toxins and supporting the development of alternative toxins were subjects of presentations later in the Conference.

The group hopes to be in a position soon to hold field days on best practice and sees a major role for Federated Farmers in this.

Alternative Toxins for rabbit Control: Dr. James Ross (Senior lecturer in wildlife management at Lincoln University) explained that the Rabbit Co-ordination Group had identified that "Currently the control of rabbits at high population densities relies heavily on a very limited number of primary control tools. The loss of these tools would make effective rabbit control, where populations have exceeded the Maximum Allowable Limit (MAL), unachievable. For this reason it is important that access to existing tools is maintained and alternatives are explored". Consequently Lincoln University in conjunction with Connovation Ltd had embarked upon this research project.

New toxins and resetting multi-kill tunnel toxin delivery systems are being developed for possums, predators and rodents. The question being asked is: are there toxins for rabbits that could be less hazardous, or for back up alternatives to pindone and 1080?

The project had identified a number of suitability criteria including cost, low risk to non-target species, humane-ness and compounds that could be used on carrots as well as solid cereal bait. Cyanide pellets had proved suitable in the control of (e.g.) wallabies but its suitability for rabbits was questionable; work elsewhere with zinc phosphide suggested it would be very suitable for rabbit control in New Zealand based on these criteria; cholecalciferol looks promising for rabbit control and an application for its introduction had already been made to ERMA late in 2010. Sodium nitrate was one of the new toxins that may be worth further investigation. The group's highest short-term priority remains full registration of zinc phosphide for possums, Feratox® for Bennett's wallabies, solid diphacinone bait and low-dose cholecalciferol paste for possums and registration.

Steve Hix, Product Manager of Connovation Ltd, elaborated on the use of sodium nitrate in the control of possums and pigs. Cage trials and small filed trials undertaken to date had proved promising and veterinary opinion had concluded that the animals had died very humanely. He also spoke on some successful trials using Feratox for wallaby control.

Vice Chairman Chas Todhunter presented the annual report on behalf of the SHICC. The past 12 months could well turn out to be a time on which the High Country community can look back with some satisfaction.

Perhaps the most significant issue has been the outcome of the Minarets case and consequent introduction of legislation aimed at clarifying, once and for all, that pastoral lease rents should be based on the pastoral earning capacity of the land in its unimproved state. High Country made a submission on the proposed amendment to the Crown Pastoral Land Act (CPLA) Bill and subsequently spoke on this to the Select Committee. There was one discouraging feature evident during our presentation and that was that it was obvious that some Select Committee Members were not fully "au fait" with the issues.

High Country was a little disappointed with the Conservation Minister's announcement on Canada Geese. We believed that the option floated by the Minister at High Country conference last year was very pragmatic as it would have left the responsibility for management with Fish & Game while at the same time allowing landholders the right to control on their own properties. Since then we have had some constructive discussion with Fish & Game officials with a view to establishing community based strategies.

Government is seeking more community co-operation in pest management and as a group representing the wider High Country community we believe that we could have an effective role in this.

High Country representatives have had two face to face meetings with both the Minister of Conservation and the Minister for Biosecurity over the past twelve months. The first meeting was held in Wellington and was part of an ongoing dialogue on rabbit control. The other meeting advocating for the advantages of grazing stock in conjunction with conservation on retired pastoral land had a promising outcome.

High Country submitted on the proposed National Policy Statement on Indigenous Biodiversity. While we supported the general purpose of the paper we questioned the practical impacts of the proposals and strongly objected to the fact that while a identifying a problem of "national" significance it proposed that local councils should carry the cost. Then to compound the hypocrisy specifically exempted Crown property from the provisions of the NPS.

We are giving financial support to a number of research projects including wilding tree control, carbon investment and Federated Farmers Bees initiated "Trees for Bees" project.

On the committee front, we had a very interesting committee meeting and field day to Lake Heron and the headwaters of the Rakaia River, in mid Canterbury earlier this year. There is to be one change in the Committee for the next year: Jonathan Wallis is stepping down as Otago Lakes representative and his place will be taken by Randall Aspinall.

(Full text available by clicking here)

Kelvin Whall - Strategy Manager, Beef + Lamb New Zealand, presented an overview of the BLNZ red meat strategy. Red meat represents 35% of the country's agricultural exports, but there are threats. These are changes in land use, declining stock numbers and variable profitability. The strategy aims to address these threats and has adopted a vision to ‘Improve the long-term profitability of all the participants in the red meat sector and thereby enhance the reinvestment and sustainability of the sector'

Deloittes facilitated the strategy that involved consultation on both sides of the farm fence.

The strategy outlines actions under three key themes: increased co-ordination in the market; efficient and aligned procurement and sector best practice.

As a whole the industry needs to create a strong brand position in premium markets through "competition". Productivity needs to be improved at all stages in the supply/value chain so enabling a ‘single voice' to provide clear leadership. The success of the strategy will depend on all players. Recommendations cannot be imposed on the sector so any initiatives coming out of recommendations will involve willing participants working together. A strategy coordination group is to be created to promote, monitor, and report on implementation progress.

On the second day of conference delegates discussed the role that High Country could play in the management of pests. Particularly in relation to Canada Geese there was need for urgent action if the problem was not to get out of hand. Two observations in particular were repeated by delegates: "We must not lose what expertise exists at the moment" and "It's no use waiting for someone else to do it - it will be too late!"

As a consequence it was resolved "that Federated Farmers High Country organise and co-ordinate the management of Canada Geese in the South Island."

A sub committee has been established and has already had meetings with Airport authorities, experienced hunters (including pilots), Fish and Game officials and DoC. Conservation Minister Wilkinson is supportive of the initiative and has offered the assistance of DoC staff.

(Contributed by Mike Toepfer, a Partner in the Wanaka Office of  AWS Legal)

In June 2010, the High Court awarded exemplary damages against a lessee who had breached the terms of the pastoral lease - but what are "exemplary damages"?

The case involved a company owned by John and Mary Lee.  The company was the lessee under a pastoral lease of land in Cardrona Valley.  Next door was a freehold property ("Waiorau") owned by John and Mary Lee, on which they operated snow related businesses.  John and Mary started building a reservoir to provide water for use in snow making for the businesses on Waiorau, but work stopped after the Council advised that a consent was required.  It was also discovered that the earthworks were located entirely on the pastoral lease land rather than on Waiorau, as John and Mary had intended.

The Commissioner of Crown Lands also became involved, as the work amounted to a breach of the lease unless the Commissioner's prior written approval was given.  The Crown Pastoral Land Act 1998 ("Act") prohibits the soil of pastoral lease land being disturbed without the prior written consent of the Commissioner.  This is because under a pastoral lease, the lessee only has a right to graze the land.  Consent is required even if the activity, such as a proposed track or dam, is to be part of the pastoral activities carried out by the lessee. 

As it was not practical to reinstate the land because of the scale of the excavation, the Commissioner agreed to a partial out of court settlement which allowed the reservoir to be completed to agreed standards, but the lessee had to pay a large amount of costs to the Commissioner, and additional rent.  The Commissioner also asked the Court to order the lessee to pay exemplary damages.  Under section 19(2)(b) of the Act, a lessee under a pastoral lease who has breached the terms of the lease may have to pay "exemplary damages", not exceeding $50,000.00.

Under the general law, exemplary damages are given when someone has acted outrageously or recklessly. The Lees argued that they had not acted outrageously or recklessly, so exemplary damages should not be given. The Court decided that the normal requirement for outrageous conduct or recklessness was not required under section 19 of the Act.  Rather, all that is required is to show there has been a breach of lease - there is no need to go further and prove that there has been outrageous or reckless behaviour.  However, the Court still has an ability not to award exemplary damages.

In deciding whether or not to award exemplary damages, and what amount, the Court will look at all the circumstances, including the nature and extent of the breach, as well the lessee's conduct and intentions. In this case, the quantity of earth which was moved and the lessee's "cavalier attitude" meant that the breach was serious.  The lessee did not try to locate the boundaries before starting work.  Also, if the lessee had asked the Commissioner for approval, it was unlikely to have been granted.  Lastly, the construction of the reservoir had nothing to do with pastoral purposes.  On the other hand, the breach was not deliberate, and the actual area of land involved was small, and was not an area of significant environmental value.  The lessee had also suffered other financial penalties e.g. payment of a substantial amount of costs. 

The maximum award under the Act is $50,000.00 which is much higher than the $10,000.00 - $15,000.00 threshold previously set by the Courts for exemplary damages. After considering the above factors, the Court set the exemplary damages at $25,000.00. 

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Agribusiness Innovation Grants - AGMARDT is offering Agribusiness Innovation Grants to farmer based groups. The closing date for applications is 31 July 2011. For more details click here.

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Looking for staff or seeking a new position within the farming sector?  Visit www.ruraljobs.co.nz to view a range of positions available. Call 0800 FARMING (0800 327 646) to discuss your contractual needs. 

Tussock Talk is an electronic newsletter distributed to all Federated Farmers members who list High Country as an interest on their membership and who have supplied us with their e-mail address. If you have received a hard copy it will be because we do not have your e-mail address. Please let us know if you would like this newsletter delivered electronically, and to check all your details are up-to-date on our database, please call 0800 327 646.

If you have any questions or comments about matters in this newsletter, or anything else relating to the High Country industry, please contact the High Country executive or committee by clicking here. Alternatively, you can contact industry manager, Bob Douglas, by clicking here or by calling 0800 327 646.