Farmer confidence has risen to its highest level in over a decade, rebounding from record lows in recent years.
Federated Farmers’ latest Farm Confidence Survey shows falling interest rates, rising incomes and more favourable farming rules have all played a major role in that improvement.
“I’ve definitely noticed a significant shift in the mood of rural New Zealand. Farmers are feeling a lot more positive,” Federated Farmers president Wayne Langford says.
“The last few years have been bloody tough for a lot of our farming families, with falling incomes, rising interest rates and unpaid bills starting to pile up on the kitchen bench.
“At the same time, we’ve also been struggling with an incredibly challenging regulatory environment and farming rules that haven’t always been practical, affordable or fair.
“These survey results paint a clear picture of a sector finally able to breathe a sigh of relief as some of that weight is lifted.”
The January survey shows farmers’ confidence in current general economic conditions has surged from a deeply negative -66% in July 2024 to a net positive score of 2%.
This marks the largest one-off improvement since the question was introduced in 2016.
Meanwhile, a net 23% of farmers now expect better economic conditions over the next year – the highest confidence level since January 2014.
There has also been a sharp lift in profitability, with 54% of farmers now reporting making a profit – double the number in the last survey six months ago. . .
It’s a big improvement, but from a very low base, and while it’s positive, it’s still low.
Langford says it’s important to note that, despite confidence being at its highest point in more than a decade, it’s still only just in the positive.
“It’s been a remarkable recovery in farmer confidence over a short period of time, but I’m very conscious that we were coming off an extremely low base.
“We’ve come a long way, but there’s a long way to go yet. Federated Farmers will keep pushing hard to cut costs out of farmers’ businesses and reduce some of that regulatory burden.”
The survey results show regulation and compliance costs remains the greatest concern for farmers, followed by interest rates and banks, and input costs.
“When it comes to farmer confidence, a lot of it comes down to what’s coming into our bank account, and what’s going out the other side. It’s a simple equation,” Langford says.
“A lot of that is market driven, and farmers are used to riding those highs and lows, but Government rules and regulations have a significant impact on farmers’ costs.
The previous government imposed impractical and costly rules and regulations which the current one has reduced.
“Those compliance costs really can make or break your season and have a significant impact on a farmer’s confidence to keep investing in their business.
“The Government have made a great start cutting through red tape for farmers and repealing a lot of the most unworkable rules, but there’s still a lot of work to be done.”
Interest rates and banking issues have consistently been a top concern for farmers, which is why Federated Farmers fought so hard for a banking inquiry, Langford says.
“Interest payments are a huge cost for most farming businesses and farmers have been under massive pressure from their banks in recent years.
“We want to see the Government take a much closer look at our banking system and whether farmers are getting a fair deal from their lenders.”
The survey shows farmers’ highest priorities for the Government are the economy and business environment, fiscal policy, and reducing regulatory burdens.
“If the Government are serious about their ambitious growth agenda and doubling exports over the next decade, this is where they need to be focusing their energy,” Langford says.
“For farmers to have the confidence to invest in our businesses, employ more staff, and grow our economy, we need to have confidence in our direction of travel as a nation too.
“As a country, we’re never going be able to regulate our way to prosperity, but with the right policy settings, we might just be able to farm our way there.”
That wouldn’t just be good for farmers, it would be good for the economy and the country.
In more good news, the government has announced a much-needed boost to QEII Trust funding.
A funding boost for the QEII National Trust is a win for farmers and the environment, Federated Farmers vice president Colin Hurst says.
Following strong advocacy from Federated Farmers, the Government have announced an additional $4.5 million for the trust over the next three years.
“When it comes to environmental bang for your taxpayer buck, I can’t think of a better investment than the QEII Trust,” Hurst says.
“But despite the amazing work they do in our rural communities to improve biodiversity and other environmental outcomes, the trust hasn’t had an increase in funding for over a decade.
“During that time the trust has faced huge inflationary pressures and a 28% increase in demand for their services.
“Today’s announcement may not be the doubling of funding Federated Farmers called for, but it’s certainly a positive step in the right direction and will do a lot of good.”
The QEII National Trust was established in 1977, with Federated Farmers dairy chair (the late) Gordon Stephenson a key instigator.
The trust partners with landowners who are willing to voluntarily protect their land without selling or donating it.
Covenants ensure special areas of bush, wetland and biodiversity are protected for future generations, in perpetuity.
There are now more than 5,200 covenants covering 187,774 hectares – the vast majority on farms.
“Without an increase in funding the QEII Trust would have been forced to scale back the number of new covenants it could support,” Hurst says,
“That would have been a huge setback for nature, and the ongoing efforts of many farmers who are committed to protecting special areas of biodiversity on their land.” . . .
QEII Trust covenants are much better for farmers, conservation and taxpayers than adding more land to the over-burdened Department of Conservation.
Ele Ludemann is a North Otago farmer and journalist, who blogs HERE - where this article was sourced.
3 comments:
I don't understand the antagonism towards farmers. Fishing rapes the oceans and destroys species. Artificial milks are environmentally exploitative.
Why are both of these beloved and farming the antithesis?
Yes, great to see rising farmer confidence, a win for all New Zealanders. And fully endorse the comments on the QE II Trust. I was present at the three Federated Farmer (then) Dominion conferences when Stephenson sold the idea of the trust shifting the mood of farming leaders from 'an interesting idea' through to whole-hearted endorsement.
Simple, because people are buying into the CRT/DEI BS and all the silly stuff that entities like the WEF, UN etc push - these entities have been completely captured by Marxism. That coupled with too much breeding within human kind has meant there are too many of us and idle hands and all that ... Our ability to outbreed the limits of the petri dish we live in (the globe) are quite staggering to contemplate. What the heck is wrong with simply practicing, we don't need to to make babies for real do we?
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