Welcome to the first edition for the NAKI NEWS for 2019
Farmers sick of being treated as rates ‘mugs’
Farmers are out of patience with councils that treat them as cash cows, with a new Federated Farmers survey showing less than 4% believing they get good value for money from their rates.
"It’s local government election year and those chasing our votes can expect some very pointy questions on why average council rates in New Zealand jumped 79.7% between June 2007 and June 2017 when inflation (CPI) for the same period was only 23.1%," Federated Farmers President Katie Milne says.
On Tuesday this week, Federated Farmers launched a survey of its members to get a handle on farm rates to help inform our advocacy to the Productivity Commission’s Inquiry into Local Government Funding and Financing.
"By Friday morning, we’d already had 647 responses, with 440 of them landing on the first day. I think that speaks volumes about the level of concern about council costs," Katie says.
"As an ironical nod to the fact many farmers’ rates bills top $10,000, we said the first 200 respondents to our survey would get a ‘Federated Farmers $10K Rates Mug’. These were exhausted barely three hours after the survey opened.
"The sad fact is, based on the rising costs, we’re probably going to have to change to $20K Rates Mugs."
Of the 647 responses received so far:
544 provided us with an amount of rates they pay, with an average of $26,949 and median of $21,388. 46 pay less than $10,000. 199 pay between $10,000 and $20,000. 247 pay between $20,000 and $50,000 43 pay between $50,000 and $100,000 9 pay more than $100,000, with the highest amount $176,533 Only 3.7% of respondents agree that they get good value for money from their rates, with 96.3% disagreeing 87% of respondents consider roading to be the council activity mattering most to them. This was followed by planning and regulation (41.7%), land drainage (23.6%), water and wastewater (23.4%) and governance (23%).
"Federated Farmers recognises the cost pressures on Councils and we’ve said before we’re delighted that the Productivity Commission is now investigating how local authorities might fund infrastructure in the future, as well as looking into regulatory creep and cost-shifting by central government," Katie says.
"Bills calculated on the current antiquated system of capital or land value-based rates often have little or no relationship with what a family, a business or a farm actually uses by way of council services.
"And here’s another message in this election year - we need people who have a sound understanding of rural and agricultural issues to stand, and get that perspective heard in Council chambers."
by Debbie McCallum
Operations Manager
Season to date
The season is progressing very well on all four Dairy Trust Taranaki farms. Production at the Gibson farm in Hawera is 14% ahead season to date compared to last year. The Kavanagh farm at Hawera has one herd (300 cows) , and the Waimate West farm has all cows (126) transitioning to autumn calving so production is difficult to compare. The Stratford farm is currently 2% ahead season to date.
The season has been a lot kinder with less rainfall over the July to September period (200mm less at Hawera and 300mm less at Stratford) with a good distribution of rain over the October to December period (+150 – 170 mm compared to last year).
Consequently, pasture growth rates are well ahead. At the Gibson farm at Hawera pasture growth from June to December = 10.7 t DM/ha compare to last year =8.2 t DM/ha & at Stratford 10.3 t DM/ha this year compare to 8.1 t DM/ha last year. This has meant that there has been no feed challenges and a lot more supplement has been made (+25 – 50%).
At the time of writing, pastures were green, but good February rainfall is needed to maintain this. The good amount of supplements on board is positive heading into late summer.
On the road
by Craig Sole
Territory Manager
Farming is an excellent career and lifestyle, and it is our responsibility to promote and practice the industry and ensure a prosperous community.
I frequently hear that it’s hard to attract, retain or get capable staff and I raise a question to you - How would you rate the accommodation you provide to your employees?
At times I see some questionable housing being provided to employees, sharemilkers / contract milkers or for their staff.
The provision of a warm, dry house, draft free, moisture free, with heating and insulation, ventilation, and no signs of mould and drainage is expected as part of the tenancy agreement, but also as an industry we need to step up to the mark and provide excellent working conditions and resources.
As at 1 July 2016 - working smoke alarms became legislation, where within 3 meters of each sleeping space and this is a requirement for you to install as the landlord or owner of the house.
Currently – regardless of what insulation is present (even if you don’t have any) you must provide an insulation statement with your tenancy agreement. This is included in our Federated Farmers employment contracts.
Effective 1 July 2019 – houses used or offered are to be insulated in the floor and ceilings (but not walls) where physically practical and urge you all to be prepared and have this implemented before 1 July 2019.
I urge you to review your housing - how would you rate the condition and housing that you are providing? Not just to satisfy the rules and legislation but how we treat our staff here on our farm.
Policy Update
by Lisa Harper
Policy Advisor
Have your say on how Taranaki could lower its carbon footprint – without just cutting stock numbers
The government has formed a group to develop a road map to a lower carbon economy for Taranaki. While most of the conversation to date has been about oil and gas, agriculture is firmly in the frame. Which is why it’s important for farmers’ voices to be heard. Federated Farmers is part of the steering group for the road map for Taranaki; we stress the importance of maintaining rural communities, alongside continuing to reduce our carbon footprint. We also point out that agriculture is and will remain a linch pin of our economy.
The group is now going out into the community to ask how people would like to lower the carbon footprint of our region. Yes – we know this sounds rather vague, but the road map will be used to generate government policy that will directly affect you. And we want to encourage sensible, innovative policy – not simplistic stuff, like just cutting livestock numbers. It’s important you down-to-earth farmers have your say as part of the community consultation.
Working Groups are being created for various sectors, where a broad range of participants will collect ideas, experience and innovation to generate a collaborative plan for our future. The Working Group sectors include Food & Fibre, Energy, Māori Economy, Innovation/R&D, Tourism and People/Talent. The Exploration Group sectors include Infrastructure & Transport, Health & Wellbeing, Environmental Sciences, Regulatory, Arts, and Metrics & Evaluation. The Working Groups will consist of three x 2-3 hour sessions and the Exploration groups will be one x 4-5 hour session, all taking place February and/or March.
If you’d like to be involved or would like to nominate people, please express your interest by email
Visit the
website which has a short video explaining what they’re aiming to do.
Federated Farmers Apprenticeship
Federated Farmers and Primary ITO have teamed up on the Federated Farmers Apprenticeship Dairy - a new apprenticeship to rapidly grow people capability in the industry.
Apprentices will ‘earn while they learn’, develop their skills on-job and grow their careers. Employers will enjoy motivated staff, and learn and grow throughout the apprenticeship too.
As an employer, you’ll enjoy motivated staff and support them to grow their career. You’ll be supported by the development of a Farm Charter to ensure you provide the best work environment, on-job training and career development for your apprentice. We’ll also help you to grow your own management, HR and business skills.
Register your interest
Events Calendar – lock these dates into your diary
Your Taranaki Federated Farmers Executive
Visit our webpage for contact details