Production expectations slip to a net negative level for the first time in survey
Warning signals are being hoisted in New Zealand’s rural regions, the mainstay of the country’s export economy.
In January farmer confidence was at the lowest level recorded in biannual surveys that Federated Farmers has been running since 2009. Last month’s survey found it had dropped further.
The government, seemingly oblivious to the rural mood, meanwhile appears to be pushing ahead with a climate change policy that – in effect – would tax farmers for the methane emissions of their animals.
In January farmer confidence was at the lowest level recorded in biannual surveys that Federated Farmers has been running since 2009. Last month’s survey found it had dropped further.
The government, seemingly oblivious to the rural mood, meanwhile appears to be pushing ahead with a climate change policy that – in effect – would tax farmers for the methane emissions of their animals.
Climate Change Minister James Shaw, under threat within his own party after elements of the Greens deposed him from his co-leadership, is under the whip to make his climate change policy more stringent.
It’s not surprising, therefore , that farmers are seriously concerned over the shape of climate change policy.
More than 1200 farmers from around New Zealand responded to the July survey. A net 47.8% of them considered current economic conditions to be bad, down 55.6 points from January when a net 7.8% considered conditions to be good.
A net 80.9% of respondents expect general economic conditions to worsen over the next 12 months, up 16.9 points on the January survey.
Top concerns, besides Climate Change Policy and the Emissions Trading Scheme, were Regulation & Compliance Costs; Input Costs; and Debt, Interest, Banks.
Reflecting raised awareness of Foot and Mouth Disease in Indonesia and Malaysia, biosecurity has rocketed up the list of top concerns that farmers want the government to confront. Others are Fiscal Policy and Economy & Business Environment.
ACT’s primary industries spokesman Mark Cameron, himself a dairy farmer, reckons “farmers have had enough.”
Commenting on the rural mood, he says “election day can’t come soon enough so we can have real change.”
The Labour government’s introduction of “an excess of shoddy rules and regulations” has made it harder for farmers to produce the food that grows our economy and feeds our families.
Cameron listed freshwater reforms, winter grazing rules, the Zero Carbon Act, limits on migrant workers, Significant Natural Areas, taxes on utes…
He noted that ACT was the only party in Parliament to vote against “ideological nonsense” like the Zero Carbon Act.
And (a barb aimed at the Nats) “we’re the only party calling on the Government to be upfront and clear with its plan for Foot-and-Mouth Disease”.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
It’s not surprising, therefore , that farmers are seriously concerned over the shape of climate change policy.
More than 1200 farmers from around New Zealand responded to the July survey. A net 47.8% of them considered current economic conditions to be bad, down 55.6 points from January when a net 7.8% considered conditions to be good.
“That’s a huge drop in six months, Federated Farmers President and trade/economy spokesperson Andrew Hoggard said.
“Obviously, inflation and supply chain disruption fallout from COVID and Russia’s invasion of the Ukraine are part of it, but continued concern over the pace and direction of government reform and regulation, not to mention staff shortages, are also contributing to uncertainty and gloom”.
A net 80.9% of respondents expect general economic conditions to worsen over the next 12 months, up 16.9 points on the January survey.
Top concerns, besides Climate Change Policy and the Emissions Trading Scheme, were Regulation & Compliance Costs; Input Costs; and Debt, Interest, Banks.
Reflecting raised awareness of Foot and Mouth Disease in Indonesia and Malaysia, biosecurity has rocketed up the list of top concerns that farmers want the government to confront. Others are Fiscal Policy and Economy & Business Environment.
“What’s also worrying is that for the first time in our survey’s history we’ve recorded a net negative score for production expectations,” said Hoggard.
“A net 0.5% of farmers who answered our questions expect their production to decline over the next 12 months, down 2.3 points on the January result.”
ACT’s primary industries spokesman Mark Cameron, himself a dairy farmer, reckons “farmers have had enough.”
Commenting on the rural mood, he says “election day can’t come soon enough so we can have real change.”
The Labour government’s introduction of “an excess of shoddy rules and regulations” has made it harder for farmers to produce the food that grows our economy and feeds our families.
Cameron listed freshwater reforms, winter grazing rules, the Zero Carbon Act, limits on migrant workers, Significant Natural Areas, taxes on utes…
“The list goes on. Farmers have taken a hammering from this government.
“This is reflected by the top concerns in the survey being climate change policy and the ETS, regulation and compliance costs, input costs, debt and interest rates, and biosecurity amid concerns about foot-and-mouth disease.
“It is also the first time in history the survey has recorded a negative score for production expectations. ACT wants to see farmers given the respect they deserve.”
He noted that ACT was the only party in Parliament to vote against “ideological nonsense” like the Zero Carbon Act.
And (a barb aimed at the Nats) “we’re the only party calling on the Government to be upfront and clear with its plan for Foot-and-Mouth Disease”.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
2 comments:
The other issue is the CCC advise lifting the price of Carbon significantly. This will mean every sheep, beef and dairy farm in NZ would be more profitable in forest for carbon alone. Farming in NZ has no future at all under current Govt policies.
What is often not understood in this equation is that protein production is a significant part of our national income. We export meat and milk products, and get paid for it. Destroying this industry to replace it with carbon forests brings in no foreign exchange at all, instead it amounts to a huge transfer of wealth from the NZ citizen consumers into the hands of carbon farmers and carbon investors. The CCC is pushing this idea under the expression "change behaviour", it is actively desiring to change the ability of the NZ citizen to afford a modern lifestyle, to one where all farmed or transported goods are luxuries, in the name of climate mitigation. I don't understand how the economy is supposed to continue, or how the population are expected to survive. Farmer unhappiness is only the beginning.
Once upon a time farming was a really good profitable industry and the only things to watch out for was the weather and the bank manager who came around to have a look(get out of the office) and bludge a cup of tea. Now the pleasure of the lifestyle has been ripped out of the job by imbecilic politicians and bureaucrats imposing all sorts of taxes and regulations so that the farmer spends most of his time looking over his shoulder to see whats coming next. If and when we get a party that has the gonads to ditch all this climate change propaganda and lies there may be a chance of farming being an attractive occupation again, but while we are stuck with thr red labour cult and the loopy greens we are headed towards the same as Sri Lanka and Zimbabwe.
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