Monday, 23 February 2015 00:00

Farming within limits, complex

Written by 
Graeme Doole Graeme Doole

Farmers in New Zealand are starting to ‘cotton on’ to the concept of farming within environmental limits.

 That’s the view of associate professor Graeme Doole, who specialises in environmental economics at Waikato University. He told delegates at the recent Fertiliser and Lime Centre workshop at Massey University that farming within limits is a new and scary concept to many farmers.  

Farmers tend to be focused on production and use this, rather than profit, as their yardstick of success. Many regard boasting about profit as obscene and some don’t know their profit until their accountant has done their books, he says.

In New Zealand production is seen by the wider community as an indicator of regional vitality. “They say if we withdraw milk production out of a regional economy it will [diminish] the number of jobs in the processing sector. They also say production… is important so we can retain our existing markets overseas.”

But Doole says the issue is more complex than that and there is a link between production and nitrogen leaching which is a major issue on dairy farms. In catchment areas where nitrogen loss is an issue in water quality, farmers are faced with having to downscale production to comply with limits.

“So that’s the dilemma. But there are creative ways to solve that. We’ve found in some applied work that at a milk price below $7.00/kgMS farmers can produce less but make more money. 

“If you over-intensify a farm – especially with expensive infrastructure or by carrying too much stock – you can end up producing more but making less money because of the marginal cost of the feed.” 

Doole says they have evaluated cow house systems, which cost $750-$1000 per cow, and these usually show a reduction in nitrogen leaching of 15-20% if they are well managed. But on less well managed farms the reduction in nitrogen leaching can be as low as 3%.

“We are also getting a tendency towards very expensive cow house systems, especially in the South Island – $4000-$5000 per cow, especially free stall barns. [In that range] people are so highly indebted that they are intensifying to pay the debt and that’s eroding any benefit the system has for decreased leaching.” 

Doole is confident farmers will adapt to the new rules. They previously coped with the removal of subsidies, though some fell out of the industry, and he expects the present changes will have much the same effect.

More like this

SNAs will go - eventually

Despite some earlier confusion around the exact timing, the new Government is moving to reform the way local bodies implement Significant Natural Areas (SNAs) rules on farmland.

Fish returns to farm streams

Environmental work on-farm helps native fish return to streams, that’s what Aparima dairy farmer Ewen Mathieson is discovering.

Featured

Vaccinate against new lepto strain

A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.

Funding boost for red meat

Two major red meat sector projects are getting up to a combined $1.7 million in funding from the New Zealand Meat Board (NZMB).

Otago's supreme winner

Angus Barr and Tara Dwyer of The Wandle, Lone Star Farms in Strath Taieri have been named the Regional Supreme Winners at the Otago Ballance Farm Environment Awards in Dunedin.

Editorial: Wake up Wellington

OPINION: The distress that the politicians and bureaucrats are causing to the people of Wairoa and the wider Tairāwhiti is unforgivable.

TV series to combat food waste

Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.

National

Machinery & Products

PM opens new Power Farming facility

Morrinsville based Power Farming Group has launched a flagship New Zealand facility in partnership with global construction manufacturer JCB Construction.

AGTEK and ARGO part ways

After 12 years of representing the Landini and McCormick brands in New Zealand, Bay of Plenty-based AGTEK and the brands’…

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

» Latest Print Issues Online

The Hound

Cut with care

OPINION: The new government has clearly signalled big cuts across the public service.

Bubble burst!

OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter