Frank Has His Say

Emissions Trading is big news. Yesterday with National President Charlie Pedersen I appeared on behalf of farmers before the Finance and Expenditure select committee currently considering the Climate Change Bill. If enacted in its current form, this bill will cause severe hardship to New Zealand's productive and agriculture sector. The concerns we presented on relate mainly to the lack of detail in the bill and the absence of any supporting facts from the government to justify the manner in which the bill is drafted. The bill seeks to pass responsibility from the government to those sectors that are deemed to be the emitters under the Kyoto Protocol that was ratified in 2002.

There is no evidence the government knew at the time of ratifying the Kyoto Protocol to what extent it was committing the New Zealand tax payers to. This lack of knowledge has meant that those New Zealanders who are most effected by the emissions trading scheme are in effect having to pay the price for the poor judgement and inadequacy of government decision makers and advisors who choose to ratify Kyoto.

New Zealand's unique position of having most of our emitters near world's best practice, in terms of green house gas emissions per unit of product produced, means there are few opportunities for off-the-shelf remedies to reduce the current level of emissions without reducing production.

This is in stark contrast to many of our world trading competitors who because they have not bothered to be early adopters of cleaner and more efficient technology now have the opportunity to change to newer technology and in so doing are able to reduce their emissions. New Zealand is being asked to pay the price for being ahead of the pack.

It is in the world's best interest for New Zealand agricultural to continue to produce the food exports that are needed to feed our overseas customers. Any reduction in our output will need to be met by production else where in the world. This is likely to mean an increase in world green house gas emissions due to the less efficient farming practises overseas.

Recent studies undertaken by MAF, Infometrics and NZ Institute for Economic Research have all shown the most cost effect way for New Zealand to met its obligations is for the government to buy credits overseas, as many other countries are looking to do. The effect of doing this means a lower cost to all New Zealanders not just emitters. This is because the cost to us all of decreasing production from the productive sector and the resulting loss of income for the economy will be far more damaging on all our citizens.

Common sense needs to prevail. I have grave concerns that many politicians are only just becoming aware of the commitments they have made on our behalf.

Dairy farmers should raise this issue with their local MP at every opportunity and make sure they understand the seriousness of the situation for the New Zealand economy, New Zealand citizens and for farmers.

News and notices

Conference News - The 2008 Dairy Section AGM and Conference will be held in Christchurch on June 24 and 25. It will be held in conjunction with the Meat & Fibre and Grain & Seed sections of Federated Farmers, and will be followed by the National Conference and AGM.

Highlights of One Event include the launching of the ‘Dairy Section guidelines for developing RMA policy'. These guidelines are intended to be used by dairy industry policy advocates and farmers who are involved in the policy development process, to help ensure that dairy farming remains economic and environmentally sound. 

The proposed Raw Milk Regulations will also get an airing, along with the problems that today's farmers are facing trying to fill staff vacancies.

Registration forms and nomination papers have already been sent out. Further copies can be obtained by contacting Ann Thompson, athompson@fedfarm.org.nz or be phoning 0800 327 646.

Submissions to Government - Federated Farmers recognises that provinces sometimes wish to make their own submissions to government over various issues.  So that some sort of cohesion is recognised within the Federation we ask that responses are first sent to the appropriate policy person. It does not make Federated Farmers look good if the organisation puts in a response (to which you will have had the opportunity to comment on) if another comes from the provinces saying something quite different and contrary to national opinion.

Raw Milk Regulations - Federated Farmers Dairy is making a submission on the Review of the Dairy Industry Restructuring (Raw Milk) Regulations. The submission is due in on  May 16.

Dairy Important Vote - Although past the halfway mark in the voting period, most farmers have yet to make their vote count on whether to continue investing in research, advocacy, advice, tools and asset protection through DairyNZ.

From May 1-30, 14,000 farmers, sharemilkers and leaseholders are being asked to vote on the milksolids levy established in 2001 to continue the ‘industry good' work previously undertaken by the NZ Dairy Board.

As an industry wide levy, the results and benefits of research, development and extension are available to all. It also means that all farmers can have their say whether they want the industry good to continue.

The Dairy Section of Federated Farmers is as concerned as DairyNZ at the low numbers of dairy farmers who have returned their ballot papers, and urge you all to exercise you vote.

Voting ends 5pm Friday 30 May. Visit www.dairynz.co.nz for more information.

Get your act together - From policy advisor, Ann Thompson

Recently I came home from an overseas trip to find that dairying was still on the front page of national newspapers. I was rather distressed, because the article was about polluting dairy farmers, yet again. The fact that the article focussed on minor infringements was beside the point.  Reporters continue to highlight the bad things about this industry, and perhaps so they should.  What you as dairy farmers must understand is that the New Zealand public are in no mood to continue to put up with sloppy practices. Find out where your effluent is going. Check for faults.  Make it your responsibility to make your farm and your province the very best it can be.

Drought and Recovery  - While the drought has broken in almost all areas, the effects - such as decreased milk production and stock condition - will continue to be felt for some time. If you have been affected by the drought, it is important to recognise this and to manage the effects so the impacts on your business and yourself and family are minimised.

On the business side, it is important to ensure that business plans and feed budgets are prepared and where appropriate, your farm and financial advisors are contacted to help with these matters and to help deal with other financial issues arising from the drought.

The drought can also result in the development of stress-related problems and these also need to be addressed. Make use of your own farming networks to help here or contact the local Rural Support Trust.  These valuable organisations have been set up in most drought affected areas and are very well placed to advise on the range of measures - including some financial assistance where the criteria are met - that are available to help you through this time.  If you are not sure of the local Rural Trust contact details, ring 0800 787 254 to get this information.

Stand Stock Before Moving - As the end of season looms and cows make their way across New Zealand, there are a few things that need attending to. 

Federated Farmers recommends standing stock off green feed for at least four to six hours before trucking them anywhere, while giving them access to water. It is not harmful to stock, and they will travel better and arrive in a cleaner condition than if this practice is not followed. It also keeps effluent off the road. Dry feed is acceptable during this stand-off time.

In order to be able to do this, though, adequate notice must be given to trucking firms so that they can plan their trips and give you a definite pick-up time.

Sharemilkers' Passion - Sharemilker members of Federated Farmers need to get involved at provincial Dairy Section meetings to voice any concerns, support the direction of Sharemilking and to represent their industry.

The Sharemilkers' Section of Federated Farmers looks to add value to and promote sharemilking through policy direction and lobbying, whether it be at dairy company level or government. The section needs representation at provincial and on to national level. Get involved and make your voice heard.

Sharemilkers' Section AGM - Sharemilkers are urged to attend their AGM in Hamilton on June 6, where elections will be held for the position of Chairman, Vice-Chairman and Executive. Registration and nomination forms have already been sent out, but if you have been missed out, please get in touch with Ann Thompson athompson@fedfarm.org.nz or phone 0800 327 646.

Gypsy Day - The June 1 is looming and for those Sharemilkers moving on, remember your responsibilities to do with shifting animals (e.g. animal welfare with moving the herd, standing stock off before trucking) and leaving the premises (e.g. leaving your dwelling clean and tidy).  Having everything completed by mid-day allows the incoming staff time to move in. Contractual obligations with a herd sale will need to be sorted, too.

Sharemilking Agreements - Federated Farmers would like to remind all of you who are taking up new sharemilking positions this season to make sure that your agreement is:

• Completely filled out and that everything agreed to is in writing
• Signed and dated
• Both parties have a copy

It is particularly important to make sure anything agreed to is put in writing if you are using the Federated Farmers 2007 New Zealand Herd Owning Sharemilking Agreement, as any agreements for this have to be in writing or they are not valid. Also check if you are using the latest version of the Variable Order Agreement (the 2001 version) as previous versions are not valid.

Terminating An Agreement - Members should be aware that Sharemilking Agreements are fixed term agreements. They may only be terminated prior to the end of that term in very limited circumstances. The parties may agree to end a Sharemilking Agreement or one party may be entitled to terminate the Sharemilking Agreement for breach should certain events occur. Members should approach professional advisors prior to terminating their Sharemilking Agreements. If you have any questions regarding your agreement, please contact us on 0800 327 646.

Sharemilking Disputes - Sharemilkers and sharemilker employers with disputes carried over from the previous season have conciliation available to them as a means of resolving disputes over end of season positions.  Conciliation should also be used for disputes that crop up mid-season, or mid-contract.  It is not necessary to wait until the end of the season or the end of the contract period, to refer matters to a conciliator.  It is better to deal with disputes as they arise, rather than waiting for the sharemilking relationship to deteriorate to the stage where it affects the farm outputs.  Early intervention of disputes is also less costly than delaying or putting off dealing with the inevitable.

For advice about sharemilking conciliation, or for assistance with finding a suitable sharemilking conciliator, contact Federated Farmers, 0800 327 646, email: mail@fedfarm.org.nz or phone the Arbitrators' and Mediators' Institute, 0800 4AMINZ, email: institute@aminz.org.nz or visit http://www.fedfarm.org.nz/sharemilking.html

Rural Disputes - Rural disputes cover a wide range of commercial, land and relationship matters. Disputes may arise from sharemilking contracts; leases of land or livestock; boundary fence arguments; matrimonial and relationship dissolutions; land or livestock valuation assessments; partnership or company dissolutions; share valuations; workplace employment issues; sale and purchase agreements; and a myriad of other associated issues.

The AMINZ (Arbitrators' and Mediators' Institute of New Zealand) has established a specialist list of Rural Dispute Resolution Professionals who have been selected for their qualifications and experience of resolving disputes in the rural sector. Practitioners on the Rural List include mediators, conciliators and arbitrators and have met the prescribed criteria for appointment to the List. Visit http://www.aminz.org.nz

Farm Enviro Walk - In April and May, DairyNZ began the roll out of the ‘Farm Enviro Walk' - a tool that is helping dairy farmers perform environmental health checks on their operations.  

The Farm Enviro Walk has being rolled out through field days on dairy farms in Northland, Waikato, Bay of Plenty, Canterbury and Southland throughout April and May.  A second set of Farm Enviro Walk field days will hit other regions in November. Visit www.dairynz.co.nz/events to find a Farm Enviro Walk field day near you.

The Farm Enviro Walk is a self assessment checklist individual farmers use to identify potential issues, opportunities and practices that may need improving - focusing specifically on the three areas of nutrient, effluent and land management.  

The Farm Enviro Walk then points you toward information, tools and professionals to help address any issues or exploit opportunities.

Copies can be ordered from the DairyNZ website (www.dairynz.co.nz) or by phoning 0800 4 DAIRYNZ.

Farming Winners - Winners of the New Zealand Dairy Industry Awards National Finals will be announced on Saturday  May 24 at the Copthorne Hotel, Durham St, Christchurch.  Federated Farmers congratulates all those who have made it so far in the competitions and wishes them well as they prepare themselves for the finals.