Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Lower farm returns expected


Lower farm returns expected

Unseasonably cool, dry weather weather, combined with a strengthening dollar and fall in international prices will take its toll on farmers this year. The latest Ministry of Agriculture and Forestry forecasts for the year ending June 2003 indicate that a fall in international prices and a strengthening New Zealand dollar will result in lower gross farm revenues.

To compensate, farmers and orchardists plan to spend less on capital items, such as tractors, and development.

This year’s colder than usual spring is depressing pasture growth. As a result, milk solids and meat production could be down between two and five percent for the year.

Horticultural grape, stonefruit and apple crops have been hit hard by frosts especially in Hawke’s Bay, while in Canterbury fruit was damaged by hail over the weekend. The apple crop, for instance, could be down 20 percent nationally and the grape harvest down by 15 percent.

Farmers are concerned that drought conditions could develop this summer as an El Nino weather pattern strengthens. Irrigation has begun early and there are good flows in rivers used for irrigation. Canterbury alone now has 400,000 hectares irrigated.

Dairy farmers are bracing themselves for a substantially lower ($3.70 versus $5.30) milk solid payout. This has slowed the rate of dairy conversions and cow prices have fallen, in some cases by 45 percent.

Land prices so far have not fallen dramatically. The national dairy farm model shows a 24 percent drop in gross revenue for 2002/03.

Deer farmers also expect a much lower schedule price with the price for a top-grade AP 60kg stag expected to drop from $8.05/kg in 2001/02 to $5.50/kg in 2002/03 (a fall of nearly 32 percent). This will significantly impact on deer farm incomes.

Sheep and beef farmers are expected to fare relatively better, with a 10 percent drop in gross revenue. This reflects price drops of 10 percent for lambs and 12 percent for cattle, offset by higher wool prices.

The outlook for grain crops looks good. The price outlook is high due to droughts raging in Australia and the USA. Arable farmers have enjoyed a dry spring allowing for cultivation but crops need some warmth now.

Small seed production has expanded, which should mean more grazing is available once seed has been harvested.

Many farmers have re-estimated their provisional tax payments downwards. These payments are due in the current financial year.

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news