increase font size
AFTER EXPORT data for the June quarter, Federated Farmers is relieved the OCR will likely be on hold for the remainder of 2014.
"With the rural economy's sentiment decidedly bearish, an OCR hold is perhaps the best we could hope for," says Dr William Rolleston, Federated Farmers President.
"Dairy farmers are anxious about their likely payout following falls in international dairy prices and a stubbornly high exchange rate.
"This will not be helped by the seasonally adjusted value of exported goods falling 7.4% in the June quarter. Most of the major primary exports were down, including dairy, meat and logs."
Dr Rolleston says given the drop in farmer confidence and other economic developments "we actually thought there was good case for the OCR to be left unchanged".
"While that's now academic, the key thing is that the Reserve Bank has clearly communicated its intention to pause and take stock. This is the right signal," he says.
"We were pleased to hear the Reserve Bank state, in no uncertain terms, its concern about the unjustifiably and unsustainably high exchange rate. Clearly, in taking a pause, it wants to take pressure off the exchange rate and this is the right call.
"The fact that inflation remains contained is helpful and it has given the Reserve Bank some breathing space.
"We now hope that the Reserve Bank will be able to keep the OCR on hold for an extended period. To be able to do that other government policies need to help rather than hinder.
"This means fiscal responsibility, tight control of spending and wider policies around regulation. Exporters, whether ICT, tourism or the primary industries, need policies to assist rather than impede productivity and competitiveness.
"We hope that the media and commentators will be examining policies and pledges against this prescription," Dr Rolleston says.
According to the latest Federated Farmers banking survey, farmers are more satisfied with their bank and less under pressure, however, the sector is well short of confidence levels seen last decade.
Farmer confidence has taken a slight dip according to the final Rabobank rural confidence survey for the year.
OPINION: Federated Farmers has launched a new campaign, swapping ‘The Twelve Days of Christmas’ for ‘The Twelve Pests of Christmas’ to highlight the most troublesome farm pests – a serious issue that needs some urgent attention from the Beehive.
Farmers are welcoming the announcement of two new bills to replace the under-fire Resource Management Act.
The Government has announced it will immediately roll over all resource consents for two years, with legislation expected to pass under urgency as early as this week.
Ravensdown has announced a collaboration with Kiwi icon, Footrot Flats in an effort to bring humour, heart, and connection to the forefront of the farming sector.
Forest & Bird's Kiwi Conservation Club is inviting New Zealanders of all ages to embrace the outdoors with its Summer Adventure Challenges.
Grace Su, a recent optometry graduate from the University of Auckland, is moving to Tauranga to start work in a practice where she worked while participating in the university's Rural Health Interprofessional Programme (RHIP).
Two farmers and two farming companies were recently convicted and fined a total of $108,000 for environmental offending.
According to Ravensdown's most recent Market Outlook report, a combination of geopolitical movements and volatile market responses are impacting the global fertiliser landscape.
Environment Canterbury, alongside industry partners and a group of farmers, is encouraging farmers to consider composting as an environmentally friendly alternative to offal pits.
OPINION: The release of the Natural Environment Bill and Planning Bill to replace the Resource Management Act is a red-letter day…
OPINION: Federated Farmers has launched a new campaign, swapping ‘The Twelve Days of Christmas’ for ‘The Twelve Pests of Christmas’ to…
