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

 

US Government shutdown warning to our farmers

3 October 2013

US Government shutdown warning to our farmers

The budgetary deadlock, which has sections of the United States Government shutting down, should serve as a warning to New Zealand farmers to run conservative farm budgets.

“Following record milk price forecasts and increases in the ANZ Commodity Index across the primary industries, farmers may be very bullish about the current 2013/14 season,” says Dr William Rolleston, Federated Farmers Vice-President.

“The optimism is most welcome since the ANZ Commodity Index has hit its third highest level. Meat and Fibre farmers will be relieved to see the international price of wool, our green and renewable fibre, increase 13 percent in a month. Yet it is right across the primary board, from red meat to apples and logs, we just seem to be in an export sweet spot.

“Some may be tempted to anticipate outstanding forecasts for this season by taking on debt.

“We need to send a word of caution given events in the United States took a turn for the worse this week. In the short-term, we can possibly expect the shutdown will put a floor under the Kiwi dollar.

“But there is a fixed date looming which seems the fiscal equivalent of M.A.D; mutual assured destruction.

“On October 17, the United States is expected to hit its debt ceiling, which means for the first time in history the United States will default on its debt.

“If this happens we will be looking at a Global Financial Crisis Mark II. When it last struck during the 2008/9 season it put a scythe through all farm budgets. While I am hoping cooler heads will prevail, it is a poker match being played for the highest of stakes.

“Certainly the US Treasury Secretary has put things starkly in a letter to Congress.

“It is a huge reminder that we do not know what is around the corner as the 2013 late summer drought proved.

“Agricultural debt is up over $2 billion on 2012 and while the drought will be a big factor in its growth, it is clear we need a good year to regain some headroom.

“While we urge farmers to be cautious with their cheque books, critical productive investment is still vital. Of course a Federated Farmers membership continues to be a critical productive investment, given the bottom line savings we generate for members through our policy and advisory services.

“Save for repairs to irrigation infrastructure in Canterbury, I would counsel caution for big ticket items until we get a lot further into this season than just the start line,” Dr Rolleston concluded.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The America’s Cup, Critical Race Theory And A New, Weekly Music Playlist

So… Why don’t they just cut to the chase, and call it the Emirates Cup? As this column predicted several months ago, the next America’s Cup challenge is headed overseas. Here’s what Werewolf said back in March:
Emirates has made a major commitment to Portsmouth/Isle of Wight as a sailing centre of excellence – and voila, that’s where the next challenger of record is coming from, and where the next Cup contest could well be sailed. Such incredible luck for Emirates, right..? More>>

 



Marine: Wider Roll-out Of Cameras On Boats To Support Sustainability And Protect Marine Life

Up to 300 inshore commercial fishing vessels will be fitted with on-board cameras by 2024 as part of the Government’s commitment to protect the natural marine environment for future generations... More>>

ALSO:


Government: Plan For Vaccine Rollout For General Population Announced

New Zealanders over 60 will be offered a vaccination from July 28 and those over 55 from August 11, Prime Minister Jacinda Ardern announced today... More>>

ALSO:



Jewish Council: New Zealand Not Immune From Rise In Antisemitism

The representative body of New Zealand Jewry, the NZ Jewish Council (NZJC), has expressed concern about the high number of antisemitic incidents in New Zealand recorded last month. Spokesperson for the NZJC, Juliet Moses, said... More>>

NZNO: Nurses Reject DHB Offer And Confirm Strike Action

The New Zealand Nurses Organisation says its 30,000 members who work in DHBs have voted overwhelmingly to reject a second offer in their current round of multi-employer collective agreement (MECA) negotiations... More>>

ALSO:


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels