Early Bird I Friday May 24th 2024

Bleak survey results show farmers have little confidence in rural banking, Government introduces legislation to streamline regulatory process and politicians kit up to tackle farmers in Gisborne.  Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather! Bleak survey results show farmers have little confidence in rural banking Federated Farmers has released the results of their latest banking survey, which show significant concerns regarding the state of rural lending in New Zealand. Richard McIntyre, the commerce and competition spokesperson for Federated Farmers, says the survey results indicate that rural banking issues are nearing a crisis point, with farmers rapidly losing confidence in the system. The May survey received 642 responses from farmers across New Zealand, revealing a sharp drop in satisfaction with banks, plummeting to just 51%, Additionally, one in four farmers reported experiencing undue pressure from their banks, a situation exacerbated by high interest rates, rampant inflation, and reduced incomes.  Given the heightened scrutiny of rural lending, the survey included a new question: whether farmers believe New Zealand banks are demonstrating a positive commitment to supporting farming during challenging periods of high interest rates.  Disappointingly, only one in five farmers responded affirmatively. Federated Farmers presented their case for an independent inquiry into rural banking to Parliament’s Primary Production Select Committee yesterday. Government introduces legislation to streamline regulatory process The coalition Government has introduced new legislation aimed at streamlining regulatory processes for New Zealand’s primary industries, including farming and mining, through the Resource Management (RM) Bill 1.  The bill is designed to simplify and accelerate resource management processes while maintaining environmental protections. The RM Bill 1 proposes immediate adjustments to provide certainty for councils and consent applicants, and aims to speed up the preparation and amendment processes for national direction, which are currently seen as overly complex and costly. Agriculture Minister Todd McClay says it's important to reduce unnecessary compliance costs to improve the profitability and competitiveness of New Zealand’s primary sectors.  Associate Environment Minister Andrew Hoggard highlighted the need for regulations that manage environmental risks effectively without imposing undue burdens on producers. Among the proposed changes, the bill repeals the low slope map and associated stock exclusion regulations, aiming to reduce compliance costs for farmers. The Resource Management (Freshwater and Other Matters) Amendment Bill will be reviewed by the Primary Production Select Committee after its first reading next week.  Slow but steady recovery for wool market The wool market has been experiencing a steady recovery despite earlier challenges caused by Cyclone Gabrielle, which had temporarily reduced scouring capacity.  The reopening of the Woolworks Napier scouring plant to full capacity has helped normalise the market, allowing for more confident trading as wool flows through processing chains without long-term storage delays. This year, wool prices have shown strength, with crossbred fleeces reaching five-year highs. Fusca’s indicator reports that the coarse crossbred fleece average is at $3.19/kgClean in May, the highest since 2019's $3.11/kg.  However, increased shearing costs have offset these gains, and current prices are still below the mid to late $4/kg seen a decade ago, meaning growers need higher prices to cover their costs. Despite these challenges, there is a renewed sense of enthusiasm in the industry. As winter approaches, the focus has shifted to second-shear wools, which have seen rising prices, especially for high-quality second-shear wool. Fusca’s indicator for second-shear wool reached $3.03/kg last week, 20c/kg higher than in May 2023, with the best fleeces in Napier fetching up to $3.44/kg this month. Improved fleece quality, despite a poor growing season, and increasing coarse wool exports to China have positively impacted wool prices. In March, New Zealand exported 1040 tonnes of wool to China, the largest volume since May 2023.  China’s preference for poorer quality fleeces has helped lift prices for better quality fleeces, with crossbred oddments reaching $1.82-$1.92/kgCL. Agronomist takes out Pukekohe Young Grower of The Year title The 2024 Pukekohe Young Grower of The Year title has gone to 29 year old Balle Brothers agronomist Jamie Wells. The competition at LaValla Estate in Tuakau, tested the knowledge and skills of seven contestants in vegetable and fruit growing. Throughout the day, participants faced challenges in marketing, compliance, pest and disease identification, safe tractor driving, finance, soil and fertilisers, irrigation, and quality control Jamie was wrapt with his win, acknowledging the Young Grower competition as an excellent opportunity to test horticultural skills and network with other young professionals in the field. 21-year-old operator and chemical applicator at Balle Brothers Jack Haddon, was the runner-up.  The six regional competitions — Pukekohe, Bay of Plenty, Gisborne, Hawke's Bay, Nelson, and Central Otago — operate independently of the National Final.  The final will be hosted in Hawke’s Bay on October 9-10 this year, with Jamie and five other finalists competing for the national title. The next regional event is the Central Otago Young Grower of the Year competition, which starts today in Cromwell. Politicians kit up to tackle farmers in Gisborne. Farmers and politicians are set to face off in a unique way this weekend to support those still recovering from Cyclone Gabrielle.  A Federated Farmers versus Parliament fundraiser sporting tournament will take place in Gisborne tomorrow, featuring rugby and netball matches.  Toby Williams, Federated Farmers national meat and wool chair, said that the event has already raised nearly $300,000, exceeding their initial target of $100,000 to $150,000. Williams says the event is about supporting East Coast farmers who have endured significant hardships over the past year, both from severe weather events and financial challenges.  The funds raised will be used to purchase fencing equipment for farmers rebuilding their properties after the cyclone. A number of Ministers will be kitting up, including Minister for Agriculture Todd McLay and Associate Minister for Agriculture Mark Patterson The games will take place at the Ngatapa Sports Club in Patutahi, with netball starting at 12:30 pm and rugby kicking off at 2 pm.  The event is held in memory of the late Parekura Horomia, the former Minister for Māori Affairs from the East Coast. See omnystudio.com/listener for privacy information.