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Going up! Urea prices have jumped by nearly 25% recently to $1,190/tonne.
Federated Farmers vice president Chris Lewis claims farmers won't be making much money this year, despite a record forecast milk price.
He says fertiliser prices have jumped 100%, wage bills are up 20% and hiring tradesmen has become more expensive.
Lewis says "market forces" mean farmers must pay more to retain staff in a labour-squeezed market.
While the record forecast payout must be celebrated and provides a buffer against rising costs, he doesn't expect too many farmers to end up with a large surplus this season.
He points out that recent surveys found farmer confidence still low.
"With the strong payout we should see higher farmer confidence but that's not the case," he told Rural News.
"Farmers are not thinking about dollars. While the high milk price is a cause for celebration, high inflationary costs are a major cause for worry for some farmers."
Last month, DairyNZ solutions and development lead adviser Paul Bird urged farmers to use strong milk price to pay off debt and be better prepared to withstand shocks.
Speaking at the online DairyNZ Farmers Forum, Bird noted that while industry debt had dropped to $38 billion, reducing it further would be "a good thing".
"The average dairy farm is still made up of half debt and half equity. That's still quite a big chunk of debt," noted Bird.
Farms with returns of around 5% would come under pressure if interest rates rose to 5% and beyond.
Bird says paying debt puts farmers in a good position to withstand shocks.
It also puts farmers in a solid place if they are "looking for the next opportunity to grow in dairying".
Lewis says farmers have been hearing this message for the past five years from the banks.
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Ravensdown has reported a net profit before tax and rebate of $50.1 million for the year ended 31 May 2026.
A team effort that is paying dividends for the wider New Zealand economy.
A strong sense of community involvement is what propelled the Federated Farmers' North Canterbury president Bex Green to the honoured title of the Feds' Advocate of the Year 2026.
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Power Farming has launched a joint venture in Southland.
Food rescue charity Meet the Need has released its 2025/26 Impact Report, revealing a record year of growth alongside a stark warning: demand for food support across New Zealand is rising faster than supply can keep up.
As we move into the second half of 2026, the Tractor and Machinery Association (TAMA) reports that Year-to-Date figures ending June 30 saw new tractor deliveries hitting 1,386 units or 10.7% ahead of the same period in 2025.
The avocado sector is entering the new season with a larger crop and positive market opportunities.
New Zealand growers have always adapted to changing conditions, but one challenge is steadily gaining ground across the horticulture sector: resistance.
