Chair's Address to Dairy Farmers' meeting

The following speech was delivered this morning to the Dairy Farmers of New Zealand council meeting in Auckland.

The DFNZ council meets twice a year, and includes representatives of dairy farmers from throughout New Zealand.

DFNZ is an industry group of Federated Farmers of New Zealand.

Frank Brenmuhl
Chairman, Dairy Farmers of New Zealand
Speech opening National Council
Delivered at 9:30am, 21st February 2007
Kingsgate Hotel
Auckland.

Good morning ladies and gentlemen and welcome to your Dairy Farmers of New Zealand council meeting.

One of today’s most pressing issues is climate change.

Over the last few months the government and media have held farmers responsible for Mother Nature’s milk and meat production design, and the methane that results from that process. Farmers have been accused of putting the achievement of the nation’s climate change obligations in jeopardy. In reality, farmers simply want to maintain the value of the farming assets which make up their business investments. The majority of farmers in New Zealand can be classed as small to medium businesses, employing fewer than ten people. It is therefore difficult for farmers not to take the criticisms of the government and media personally, and react accordingly. For farmers, the issues are deeply personal, cutting to the heart of their livelihood.

The climate change proposals the government has put forward for consideration are based on political, not scientific considerations. There has been an astonishing lack of analysis and understanding regarding the economic implications for this country. The government signed up to the Kyoto Protocol without understanding the difficulties in meeting the obligations. New Zealand is unique as it is the only western economy with such a high percentage of its greenhouse gases resulting from ruminant-based farming. However, the government failed to appreciate how difficult it will be to reduce those gases during the Kyoto negotiations.

Farmers in New Zealand produce high quality food that people all over the world rely on. Food is vital for life. However, instead of being a viewed as a benefit to human existence, New Zealand’s reliance on farming is now seen as a burden. It is notable that the government and media have not focused on high glamour non-essential activities such as travel and tourism, instead choosing to place farmers producing the necessities of life under close scrutiny. Farmers make up approximately 4% of voters, and are being asked to shoulder a disproportionate burden, while the majority rest easy. Rest easy while someone else ensures that the New Zealand government can declare victory over climate change. That someone is the farming community.

The Kyoto Protocol is a liability for all New Zealand taxpayers. But farmers are disproportionately affected.

If as suggested, the Resource Management Act is used to enact climate change policy, then farmers will be asked to give up our rights to decide how we use our land – for the benefit of the nation, without compensation or even acknowledgement of the burden faced by small farm businesses.

Farmers are being asked to plant trees to meet Kyoto targets. This is in spite of farmers seeing vast swathes of their land fenced off, being told that they cannot use it for farming purposes, and that they must maintain those areas at their own cost. Farmers may be charged should they wish to utilize superior soils in an efficient manner by converting the land from trees to pasture. Owing to a government miscalculation, there is less land area in forest sinks than initially thought. Who will suffer the consequences of this error? The farming community, as they are told their land use must be controlled for the greater good.

It is a sobering thought to realize that for the first time in decades, we are now seeing a net deforestation in New Zealand. Current climate change policies must be held to account for their role in this outcome.

The government wants New Zealand farmers to accept these disproportionate business sacrifices so that the government position on climate change is achieved. New Zealand’s position as a selfless country striving for global good must not be undermined, apparently at any cost.

It is worrying that there appears to be a fundamental misunderstanding regarding the normal decisions that people with a serious investment in land take to ensure their ongoing, sustainable profitability. Farmers do not make decisions based on a three year election cycle. We make long term decisions in the interests of our families and business. When the rules change, we change our directions to meet the objectives of sustainable profits whilst building assets for the future. Anyone who has studied the history of land tenure and farming practice will understand this process. It is a process that has served New Zealand well. It has allowed agriculture to become New Zealand’s most valuable business asset. Those who tax and spend should recognize the value of the long term goals of sustainable profits and building assets for the future.

Dairy farmers have invested heavily in information and systems to enable a reduction of their environmental footprint. They have undertaken research and development of tools to measure and monitor the impact of their farming systems. We look forward to being able to better manage our effects on the environment.

Last year dairy farmers’ processing company Fonterra contributed to meeting 87% of the government target in energy reduction. According to an Energy Efficiency Conservation Authority report, Fonterra’s Energy Reduction Project achieved energy efficiency savings of 1.8 petajoules last year, which is equivalent to saving the amount of electricity used by a city the size of Hamilton. On-farm efforts are also being made to reduce energy use and to minimise inputs. For example, measures have been taken regarding vat insulation, variable speed drives on vacuum pumps and milk lift pumps, and minimum tillage. Farmers are undertaking riparian planting, nutrient budgets, nitrogen inhibitors, and “Spreadmark” qualified fertiliser applicators. These are responsible behaviours resulting in more efficient resource use.

Farmers have been largely responsible for much of the growth in the New Zealand economy over the last ten years, but seldom are we given credit for helping to improve the standards of living for our fellow citizens. The climate change proposals are a deliberate targeting of the machinery of the state against a minority group within our population.

So far, the government’s approach of the threat of legal action and land seizure smacks of schoolyard bullying tactics and has been meet with resistance from farmers. In order to achieve its stated goal of carbon neutrality for New Zealand, the government must engage the community using a wider, more inclusive approach. There should be a dialogue based on scientific evidence and not political consideration. Farmers should be compensated for the loss of their rights to decide how they use their land and should not be held accountable for natural, biological systems.

For New Zealand to embrace the measures needed to meet the challenges posed by the government’s policies on climate change all New Zealanders must play a part. It is the responsibility of government to share the load equitably among citizens. We hope that challenge is taken up, as it is one that we would be part of.

ENDS

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