Feds make case for rural bank lending probe
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
Fonterra's decision to drop its 2011-12 forecast payout by 15c/kgMS demonstrates the trade exposed nature of our primary industries, says Federated Farmers Dairy chairman Willy Leferink.
With the current global economic outlook, this may not be the only revision for the 2011/12 season, he says.
"I don't think there are many farmers who were not expecting a downwards revision. We had indications from the globalDairyTrade auction that prices have been drifting south.
"Most economic forecasters also expect commodity prices will ease over 2012. It's fair to say the international picture is more than a little choppy, especially with China revising its Gross Domestic Product forecast downwards.
"This is the reality New Zealand's primary exporters have to deal with. We're completely trade exposed and it's a fact of life for us. Times can be good, but we also know from the 2008-9 season, they can be pretty hard too.
"Farming returns can sometimes resemble an oscillograph. This is why corporate investors looking for predictable returns tend to find farming difficult."
Leferink says while the primary industries are generally growing, overall sector debt levels aren't.
Many farmers have heeded our advice to run conservative budgets focused on reducing debt, he says.
"That said, we're increasingly anxious over how the Kiwi dollar is defying gravity. While soft commodities are correcting our dollar ought to be doing the same but isn't.
"While good growing conditions have helped us put in a blinder of a season, a high dollar could well skim the cream."
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.
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