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.
While the 2012/13 season will be tough for farmers, Federated Farmers believes it is not as dire as some commentators say.
"Will some farm businesses fail as a result of lower payouts and a high dollar? Sadly, that answer is probably yes," says Bruce Wills, Federated Farmers president.
"I can understand why the outlook for some is negative given a slew of farm confidence results and projected falls in income. Federated Farmers was painfully honest even before the start of this season that it would be a tough one.
"Before the Ministry for Primary Industries (MPI) forecasts, farm sales recorded by the Real Estate Institute had slid back to levels last seen in September 2010.
"Yet there are blue clouds appearing among the grey. Five of the last six GlobalDairyTrade auctions have been up and in the latest auction, wholemilk powder jumped 9.2%.
"This comes off an excellent production start to the new season. I have read that milk volumes are up 13% on last year and last season was one out of the box. I can say from my farm we currently have excellent growing conditions for beef and lamb too.
"That said cold weather and rain has impacted grass growth in some areas and is a concern going forward.
"After a terrible start to the new season, we are seeing wool prices slowly climb with an encouragingly high clearance rate too.
"Beef prices are holding up despite the drought in the United States. While lamb has reversed recent gains to be in the $90 range, initiatives like what McDonald's New Zealand is doing with lamb may open up new export opportunities.
"Look, this is a tough season and make no bones about it. Yet tough does not mean dire because we produce food and fibre the world needs.
"What would really help us is less pressure on the dollar. There is no quick fix but winding back government spending and paying down debt would help relieve the pressure. Combine that with a focus on the quality of regulation instead of the quantity and things will look up.
"I guess we need to look past the short term because the medium term remains bright," Wills says.
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.