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


Report finds sheep & beef farmer optimism high

Monitoring report finds sheep & beef farmer optimism high

The Ministry of Agriculture and Forestry’s (MAF) 2004 Farm Monitoring report into sheep and beef production finds farmer confidence high and forecasts a six percent increase in gross incomes next year.

MAF senior policy analyst, Chris Ward, says the forecast income increase is due to a sustained low New Zealand dollar and continuing high schedule prices, particularly for lamb.

The farmer optimism is reflected in higher prices being paid for land, even though buyers are aware of the low return on farm assets. Most recent land sales have been to existing farmers.

MAF Policy runs the annual monitoring process to examine the production and financial status of farms in terms of the cash income and expenditure. Trends, issues and sector concerns are also monitored.

The model farms depicted in the report are representative of their farm type within their region. Farms around New Zealand have been examined, and information for each model is drawn from 20 real farmers, and discussions with a wide cross-section of agribusiness.

Chris Ward says the aim of each model is to best typify an average farm for the region, and budget figures are indicative figures of the average levels of income and expenditure, management, stock performance, debt and expenditure on development and capital purchases.

Some general trends itemised in the report are:

Sheep are currently more profitable than cattle and farmers with the highest net incomes tend to have high sheep-to-cattle ratios. For cattle, steer farming rather than bulls is gaining popularity. Farmers are increasing their use of nitrogen fertiliser to bolster feed supplies, particularly when feed shortages are predicted. Demand for rental land is high.

Chris Ward says land values have increased above earlier forecasts. “Even in flooded parts of the country (the lower North Island), land values continued to move up. In the all-class weighted-average national model, land values moved from $4,251 to $4,770 a ha, or 12 percent,” he says. “This is more than the long-term 15-year average of 10.5 percent. Interest rate rises have done little to dampen farmers’ enthusiasm for land purchases, it seems.”

Overall, farmers seem slightly pessimistic about next year’s wool prices. However, MAF forecasts a lift in wool prices in the 2004/05 financial year.

There was a marked increase in stock prices, especially for beef, in May and June 2004. Meat companies made greater profits in the second half of the financial year ended June 2004.

Some farmer concerns identified in the report include shortages of skilled labour; the costs of roading maintenance and electricity; uncertainty around methane emissions and how this may impact on their ability to farm for sustainable profits; and compliance costs.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election