Truck Protest - Today, in a protest against the government's increase in road user charges, heavy trucks clogged New Zealand city centres. Federated Farmers is concerned that the hike was imposed without any notice. While the Federation strongly supports the use of road user charges as a funding tool it also supports the Road Transport Forum's push for an inquiry into road funding. The government last night announced it would set up a working party with the transport industry to look at the road user charges formula but the Federation thinks any such inquiry must also consider other funding and charging issues, particularly rates funding of local roads. Property value bears no relationship to use of the roads and Federated Farmers has long called for local roads to be funded primarily by road users. The Federation has asked the Minister of Transport to consider its request.

A Broadband Approach - Broadband is a necessity for farmers as much as it is for city folk. That was the message that Federated Farmers spokesman on telecommunications and board member, Donald Aubrey gave to a symposium on rural broadband in Rotorua today. Donald told the gathering that farmers run big businesses and need the latest technology to run these enterprises. He said that without access to broadband farmers are in danger or losing their competitive edge in global markets. He said the rolling out of broadband must be a high priority for government. The Federation also submitted on the government's proposed broadband fund this week. The fund was unveiled in the budget and includes a rural fund worth $75 million over five years to extend the reach of broadband into underserved rural regions. The Federation's submission was supportive of the proposal. It pointed out the poor quality of internet connection available in many regions and the value of broadband to rural businesses and communities.

Catalyst To Change? - The chairman of Federated Farmers Meat & Fibre Section, Bruce Wills says a proposal between PGG Wrightson and Silver Fern Farms (formerly PPCS) announced this week may be the catalyst the industry needs to move forward. "Meat and fibre farmers have been demanding change. This proposal gives some hope and an alternative to the impasse that has occurred around recent restructuring initiatives in the meat processing industry," Mr Wills said. Have your say >>

Biofuels Good and Bad For Beekeepers - In his address to the Federated Farmers Grain & Seed Conference Paul Quinn, General Manager Biodiesel New Zealand, advised that pollination requirements of one hive per hectare and projected future annual Canola crops of up to 30,000 hectares will have a positive impact on the beekeeping industry. Chairman of Federated Farmers Bees, John Hartnell says beekeepers are enthused about increasing pollination opportunities moving forward, but noted some concern that this crop had a very negative spin-off on export honey production, as Canola honey, when harvested by the bees in conjunction with the White Clover crop, severely downgrades the export value of New Zealand Clover in the global market. Recognising this eventuality, Mr Hartnell said that pollination revenue per hive must take in to account the loss of income that beekeepers will face when supporting this new industry. 

Delicate Bees - A timely warning from the United States this week where cropping farmers are reporting a decline in honey bee numbers. This could lead to even higher food prices. Federated Farmers Bee Industry Group Chairman, John Hartnell says the same thing could happen in New Zealand if bee numbers declined significantly. He says bees are delicate creatures and that's why the Federation is embarking on a major publicity campaign to make farmers and the public more aware of the needs of bees.

Import Safeguard - It is now possible for parties who submitted on a draft Improved Import Standard to ask the Ministry of Agriculture and Forestry Director General to initiate an independent review of the provisional import standards if they have a significant concern. Federated Farmers successfully argued for changes to the draft review procedure, with many of the points raised in its submission incorporated in the final process. The facility for an independent review is an important control measure as it will safeguard members' interests when Import Health Standards are developed in the future.

Costs Sought - Federated Farmers lodged an application for costs with the Environment Court on Monday in the matter of the Banks Peninsula Landscape Decision that was issued in May. The Federation is seeking approximately $45,000 in costs from Environment Canterbury after a battle lasting more than a decade.  The case involved a dispute over the extent of "protected areas" on the peninsula. Farmers and others in the community had worked hard to come up with rules and landscape designations through a task force formed by the Banks Peninsula District Council (now merged with Christchurch City Council) and through mediations ordered by the Environment Court. The dispute ended up in the Environment Court when Environment Canterbury offered a different proposal, covering 75 percent of the peninsula in protected areas. This proposal was completely inconsistent with agreements formed in the mediation process. Christchurch City Council has also sought costs in the amount of $150,000.  A decision will be made on the application in late July.

ETS Effect - Emotions ran high and there was disbelief following the presentation of a Ministry of Agriculture and Forestry report outlining the typical loss per annum a farmer could expect under the emissions trading scheme in Taranaki on Thursday. Members were outraged at hearing some farms would become more economical converting to carbon farming. Over 120 Taranaki and Wanganui members attended seminars in Taranaki on Thursday hosted by Taranaki president Peter Adamski, with the support of vice-president Aaron Boddington and provincial Dairy chairwoman Caroline Gilbert. Guest speaker Gary Bedford from the Taranaki Regional Council outlined the Emissions Trading Scheme as it stands today, and talked about what farmers' obligations would be under the scheme. Federated Farmers national vice-president and spokesman on climate change Frank Brenmuhl explained to farmers how ETS policy is developed within government and overviewed the work being done by the Federation on this contentious issue, reassuring members that the organisation was working to ensure that the scheme does not have a significant impact on food producers. Farmers left with a set of questions for review on the ETS.  For a copy of these questions, email Caroline on cgilbert@orcon.net.nz.  See full MAF report here.

United Front - Farming leaders presented a united front at the first Proposed One Plan Hearing on Horizon's overall plan yesterday. The regional council's One Plan has an effect on members in four Federation provinces; these are Wanganui, Manawatu/Rangitikei, Ruapehu and Tararua. In its submission to the hearing the Federation highlighted the main issues it sees with the plan. These include: Farming remaining viable under proposed rules; the four components of sustainable management - environmental, economic, social and cultural wellbeing - being balanced; the impact to the region if stock numbers were reduced by 10 percent; and management of water quality. Federated Farmers made recommendations in its submission and will use case studies of farmers in coming hearings to show how One Plan will affect farming businesses.

Numbers Count - Ruapehu president Lyn Neeson is encouraging all farmers in the region to go to Horizons One Plan submission hearings. There is a One Plan Land hearing in Ohakune on 15 July. She says farmers don't have to have a written a submission, or even speak, it is showing a strong presence that is important. She believes a show of strength at Ohakune will illustrate farmer reservations for the One Plan and encourage councillors to take a harder look at a document that will affect the long term viability of farming in the region. She says it is important discussions take place at this stage as it will only get more difficult and expensive at Environment Court level. She says farmers attending will also learn more about One Plan and the consequences for hill country farming. "We have to get this right because the consequences will be with us for future generations," she said.

Secure Future - Prudent investment by the forebears of farming in Otago and a timely decision by Silver Fern Farms to divest its non-core assets, means the financial future of Otago Federated Farmers is looking good after the sale of a major piece of Dunedin real estate. The Harvest Court building in George Street, was owned by the original occupants of the building, PPCS, Ravensdown, Farmers Mutual Group and Otago Federated Farmers. Otago Federated Farmers holds approximately a quarter share in the building with the remainder previously owned by Silver Fern Farms who will stay on as the cornerstone tenant. The topic of what should be done with the proceeds from the sale was debated at the recent provincial AGM. The sale presents a huge opportunity for Otago Federated Farmers to continue to grow the capacity of the province so that it can continue to look after the farming interests of its members. It is likely that a trust will be established to administer the investment. Otago members should contact Otago president Richard Burdon by email: burdonrg@xtra.co.nz or on 03 443 1554 to share their ideas on taking forward.

Rural Voice - Auckland Federated Farmers presented its submissions on Auckland governance to the Royal Commission of Inquiry. Auckland president Phil York conveyed the importance of provision for the "rural voice" to be heard by those involved in the governance of Auckland. He said Auckland should be governed by a single regional authority responsible for all services and infrastructure, responsible for all rating and responsible for the overall development strategy for the region. Auckland vice-president Wendy Clark told the Royal Commission that Federated Farmers members in the rural districts of Auckland have clearly indicated they want to be part of Auckland.

Meat Prices Recover - The commodity prices of New Zealand's key exports remain high according to the ANZ Commodity Price Index. Leading the increases was the price of beef up 4.3 percent in June. Beef has risen consistently over the first half of the year. Overall, beef prices are now a third higher than at the end of last year. Other commodities to show strong rises were venison, up 1.3 percent, and wool, up 1.2 percent. Dairy however is coming off its previous highs. International dairy prices were down 1.1 percent in June with international dairy prices easing a total of 12 percent from the peak in November last year. The kiwi dollar also eased in value against our main trading partners for the month of June.

Costs Increase - According to Meat & Wool New Zealand, sheep and beef farm input prices were up 9.7 percent in the period between March 2007 and March 2008. This is the highest increase since 1986-87. The biggest cost increases were:

• Fertiliser, lime and seeds increasing 30 percent on last year due to high international demand. This compares with a 2.5 percent increase last year. Subsequent to the compilation of this increase, the price for a tonne of superphosphate from June 1 has increased from $260 to $500, a sharp increase of 92 percent. While this is a large increase by any measure it reflects the strong international demand and price trend for fertiliser;
• Fuel prices increased 23.5 percent;
• Feed and grazing increased 13.7 percent, reflecting drought conditions around much of the country this summer and autumn;
• Interest is up nine percent;
• Electricity up 7.2 percent;
• Local government rates and charges also increased 6.6 percent. This was the second largest increase in 17 years and in the last five years the overall increase was 33 percent.

GDP Falls - Economic activity declined 0.3 percent in the March 2008 quarter according to Statistics New Zealand. The agriculture and construction industries were the main contributors to the decline this quarter. Agriculture was down 5.6 percent for the March 2008 quarter, the largest decline since March 1998. Drought conditions experienced by parts of the country contributed to lower output and increased costs for agriculture.

Guarding Your Future - Federated Farmers is pleased to announce Guardian Trust as a Federation gold sponsor. Guardian Trust can help with: asset protection through family trusts; estate planning and preparation of wills, enduring powers of attorney or a trust; wealth management, and retirement planning. Find out more by calling 0800 878 782.

Show your Federated Farmers membership card when accessing special offers from Federated Farmers business partners. This week see specials from Canon for cameras and printers and Swanndri for clothes. For more information call 0800 327 646 or Read more >>

Order Federated Farmers contracts and agreements online, or call 0800 327 646.

Moovers and Milk Shakers - Members paying their subscription via their Fonterra or Tatua milk supply account, who have moved need to ring 0800 327 646 to update their farm and party numbers. If Federated Farmers does not have the correct farm and party numbers, the sub payment will be rejected by Fonterra or Tatua when details for payment are lodged.

Employment Seminars - Sign up for a Federated Farmers Employment Seminars in October and November. Cost is $65 for members and $165 for non-members. Call 0800 327 646 to register.