Friday Flash
The weekly e-newsletter from Federated Farmers of New Zealand
Making headlines this week
Published opinions
Being up with the business end of farming – Read More
The times are a changin' – Read More
Respecting rights and obligations – Read More
Economics
Rabobank Agribusiness review - Prepared by Rabobank's specialist Food and Agribusiness Research and Advisory division, this review provides a snapshot of the food and agribusiness sectors, as well as recent price and market trend data and analysis. Click here to read the latest copy.
Gift duty repealed - Parliament has passed legislation repealing gift duty. Gift duty will be repealed for gifts made on or after 1 October 2011. Federated Farmers had strongly lobbied for the removal of gift duty and we submitted in favour of its repeal to the Finance and Expenditure Select Committee. Gift duty is an arcane and out-dated tax which raises very little revenue. It imposes considerable compliance costs and has been an impediment to farm succession from one generation to the next. Gift duty's abolition is long overdue, but we have now got it over the line. This change could well benefit you. To see how the repeal of gift duty will affect you and your farming business please contact your accountant or legal advisor.
Dairy prices down again - In Fonterra's latest online auction the average prices of dairy products were down again. However, the decline was the smallest decrease in five sales. The GDT-TWI Price Index fell 0.9 percent to US$3,660 a metric tonne, the lowest level since December. Whole milk powder had the largest decline of 2.2 percent, skim milk powder fell 0.8 percent, anhydrous milk fat fell 0.3 percent, and rennet casein fell 0.3 percent. Whole milk protein concentrate was up 5.9 percent and butter milk powder up 3 percent.
Input and Output prices showing margin pressure - According to Statistics New Zealand's Producer Price Index dairy farmers' margins were starting to come under pressure in the June quarter. Sheep, beef and grain farmers' output prices continued strong growth, up 5.1 percent during the quarter, 24.3 percent higher than June 2010. However, dairy farmers had their first fall in output prices in two years with a 2.9 percent fall in output prices in the quarter. This still remains 15.6 percent higher than June 2010. Meanwhile, input prices, those paid by producers, are on the rise. For sheep, beef and grain farmers input prices were up 2.6 percent during the quarter, 8.7 percent higher than June 2010. Dairy farmers also experienced an increase in input prices, up 2.9 percent in the quarter to finish 5.8 percent higher than June 2010. Although farmers' margins are better than this time last year, there has been an acceleration in input prices since the start of the year, which is eating into profit margins now that output prices are moderating or, in the case of dairy farmers, pulling back.
Spotlight on your province
North Canterbury - The North Canterbury province is reminding all of its members to be aware of their local councils' stock control bylaws, which manages the rights and obligations of landowners who choose to have stock on local roads. A copy of the by-laws should be available from your council's office or website. If you cannot find a copy of the by-laws please contact Anna Mackenzie on 0800 327 646. Also, as a matter of good practice, we would urge all farmers putting stock onto trucks to stand animals prior to loading them. This will help reduce effluent spills on roads and ensure we are working together with stock agents and transport firms to prevent effluent on our roads.
Notices
300 member calls to the wrong number -300 calls intended Federated Farmers have instead bombarded a small events company over the past 12-months. The cause is people dialling 0800 followed by the popular abbreviation of Federated Farmers. The 0800 number for Federated Farmers is 0800 FARMING or 0800 327 646. We ask members to save 0800 FARMING (0800 327 646) in their mobile phone and phone directories.
Stock deaths on railway tracks - please check fences and gates - Livestock wandering on the railway corridor is dangerous for animals, trains and the public. KiwiRail has asked farmers to check their fences and gates alongside the 4000km of rail tracks throughout New Zealand, to ensure their animals are secure. Records kept by KiwiRail show in the past three months, there have been 16 incidents of livestock on tracks coming into contact with trains. The incidents don't end well for the animals, and often delay services.
Eleven of the 14 incidents were roaming cattle, two were sheep, one was a deer and two were unidentified ‘stock'. Under the law, the onus is on the owners of the livestock, or the person in charge of them, to ensure they do not wander onto railway lines. When trains are damaged in the incident, costs can be recovered from farmers. Not only can it cost the farmer, who can lose several expensive animals, but they can be liable for KiwiRail's costs, which can be substantial. Train drivers cannot be expected to avoid collisions with animals, as the trains cannot swerve, or stop quickly. A freight train travelling at normal speed, up to 80kmh, takes about a kilometre to stop, because of its size and momentum.
Can you help a Canterbury exporter with storage? - A Christchurch company has suffered significant snow damage to its storage facility. It is in urgent need of a facility capable of storing 1800 tons of salted beef skin hide pieces in the Canterbury region. If you can help, please contact Trudy Diggs at the New Zealand Manufacturers and Exporters Association on 03 353 2540 or 0274 980 546. Alternatively, you can email Trudy at trudydiggs@nzmea.org.nz.
Greater Wellington Regional Council Encore Awards - You have two weeks to get your application in for the 2011 Encore Awards Landowners' Conservation Award. This acknowledges the work of private landowners committed to protecting and restoring biodiversity on their land through efforts such as pest control, riparian planting and covenanting.
Livestock Tax Review - The IRD is reviewing livestock tax and has released a discussion paper on herd scheme elections. The Government is concerned it is too easy for farmers to switch between the herd scheme and the national standard cost scheme, which can result in significant tax advantage when livestock values are volatile. This "inappropriate use" of the herd scheme elections is estimated to have cost the Government $100 million as a result of the 2007/08 peak in dairy cow values. The IRD wants to make herd scheme elections irrevocable and wants to tighten up on the election farmers using a herd scheme, when they sell livestock and or stop farming. Federated Farmers is keen to know what farmers think of these changes. Please email your thoughts to nclark@fedfarm.org.nz.
Events
Getting back on your feet - Starting Monday, DairyNZ is holding a series of meetings in the Taranaki to help farmers recover from the recent snow event. Click here to view DairyNZ's flyer. The meetings are being held on:
- Monday 22 August at the A & P Showgrounds, Stratford 11:00am - 12:30pm lunch provided.
- Monday 22 August Tumuhu Hall, Cnr Wiremu & Puniho Roads, Okato, 7:00pm - 8:30pm, dinner will be provided.
- Tuesday 23 August 2011 WTARS Farm, Whareroa Road, Hawera. SN 40374, 7:00pm - 8:30pm, dinner will be provided.
SPCA Footrot Flats Fundraiser - If you happen to be in Wellington on August 31 come along to a charity screening of the Footrot Flats: A Dogs Tail to raise money for the Capital's SPCA. The film has been digitally re-mastered and features the voices of New Zealand's top comics, including John Clarke and Billy T James and an award-winning soundtrack by Dave Dobbyn. Relive the adventures of Dog, Wal, Horse the Cat and the rest, or introduce yourself, friends and family to the feature film version of this beloved comic strip. The film will be screening at the Embassy Theatre on Wednesday 31 August at 6.30pm. Tickets cost $20, of which $10 goes towards the Wellington SPCA. You can purchase your tickets from Events Cinemas by clicking here.
Knock mastitis down with AgITO's Mastitis Management programme -This two workshop series have been developed to help dairy farmers create a mastitis management plan for their farm. Tutored by specialist veterinarians, this programme will teach dairy farmers how to better detect mastitis, measure its cost to their operation and put in place practical, workable procedures to improve performance, manage somatic cell counts (SCC) and increase milk quality.
Mastitis Management is part of AgITO's package of Milk Quality learning programmes. It is recommended for those in a supervisory role who influence how mastitis is dealt with on the farm, such as managers, sharemilkers and owners.
To enrol contact your local AgITO adviser today on 0800 691 111 or click here for more information.
Member benefits
Occupational Health and Safety (OSH) Manual - Members need only pay $70 + GST to purchase this up to date, informative and necessary manual designed especially for the rural sector on best practice methods to reduce the risk of accidents and injury. Each manual includes 5 x Accident Registers and 5 x Hazard Registers. Other OSH products are available however the asking price of many is in excess of $800. Call 0800 FARMING (0800 327 646) and secure a copy of this manual that is especially designed by farmers and legal experts to best suit the needs of those in the rural sector. Non members can also buy the manual and registers for $170 + GST.
New Bronze Sponsor - Federated Farmers is proud to welcome Viafos Importing into its family of Bronze Sponsors. Viafos Importing is based in Christchurch and imports ‘Viafos', a naturally derived guano phosphate usually applied in granule form via ground spreading, drilling or air application. It is an environmentally sustainable product and assists users target healthier soil, waterways, livestock, and plants. The product is available at a discounted price for Federated Farmers members, with a minimum preferential discount of four percent off the list price. To order Viafos call 0800 VIAFOS (0800 842367) or for more information click here.
Winesonline - Winesonline brings you the brilliant, award winning ‘Gimblett Gravels' Syrah for only $12.99. You save a massive $226.80 per case off the recommended retail price. For this exclusive bargain, click here.
Final word
Quote of the week - "Farmers are resilient and they'll get through, but keep in touch with the neighbours. A conversation at the end of the day relieves tension and is an opportunity to throw some ideas around." - Harvey Leach, Federated Farmers Taranaki president.



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