ANZ’s new loan scheme helps farmers
Smith crowned shearing king
As the dry weather conditions start to take their toll, Waikato farmers need to make sure they are taking the right measures to get them through. Part of being a farmer is dealing with the unpredictable elements and having contingency plans in place for those times, when the weather lets you down, is all part of it.
If you do not get rain by key dates in the year like we are seeing now, you know what you need to do.
With 25 millimetres of the 80-90 millimetres we usually get, it is wise to make a plan, if you have not already. This should include setting a feed budget, securing more feed, look at your support blocks and organise meetings within your community.
People tend to go underground when weather conditions get challenging, but this is detrimental to your business. Have discussions with your grazers, ask them about the conditions they are experiencing and see where you can help with supplementation. In the past, I have taken palm kernel out to my young stock in neighbouring blocks to ensure their nutritional values have been met.
The advantage of this year is that this dry weather is a localised event, so there is feed available outside our region. Last year we had to spend a huge amount of capitol getting feed supplement up from the South Island. Be prepared: Photo: Peter Drury/Fairfax NZ
So as part of your feed budgeting you should be better off this year, although it is unfortunate we are now in this dry position two years in a row.
What is crucial in times like this is getting out and talking to your neighbours. When a community unites in challenging times the burden is much easier to swallow. Start talking to your neighbours – if you have a good relationship with them you will be much better off. It is helpful to go further afield as well, go to meetings as you can learn what methods others are using to cope or you can come up with a joint plan.
Being prepared is what good farmers do, and using common sense is what smart farmers do – so be smart and do not light fires. You will be charged if that fire gets out of control.
In my mind, the risk is too great to even contemplate lighting a fire in conditions like this.
There is plenty of support available to any of you that are struggling; the Rural Support Trust is one of them, as well as your bank adviser.
Within the Federation, we have our Waikato executive, who are available if you need advice or support. If you know of someone that is struggling, please contact the Rural Support Trust on 0800 787 254.
Thankfully, we saw last week, good news delivered by Fonterra of an increase in its 2013-14 forecast Farmgate Milk Price to a record $8.65/kg milk solids.
This payout is an all-time record, which is much needed to make up for a lousy 2012-13 drought-affected season, as well as what we are experiencing now. It would be great with this new payout if farm owners share the increase with their contract milkers.
With the payout where it is and the drought-like conditions, farmers need to use it to source extra feed and look after their animals.
Whilst this is a silver lining to another challenging summer, don’t count your milk solids just yet, there is plenty of time for counting when the season’s done.
James Houghton is Federated Farmers Waikato provincial president Farmers can now borrow money to grow grass.
Lending terms at ANZ have extended to a pasture and winter/summer feed package so farmers can boost their farm productivity.
Farmers can borrow as much as $100,000 from the bank for the Pasture Productivity Loan at an interest rate set at this stage at 4 per cent with a maximum loan term of five years.
Managing commercial and agriculture director Graham Turley said renewing pasture and forage was a key way that red meat farmers could improve their productivity and profit.
‘‘Increasing the quality and volume of feed grown can enable farmers to breed and finish more stock, improve climatic resilience and generate a greater return than the cost of capital,’’ he said.
A bank survey found more than 60 per cent of red meat farmers aimed to increase production next year and more than 80 per cent of them planned to do this by renewing pasture and forage species.
Turley said the loan would help ease the financial barriers to farmers investing in pasture.
The bank has identified that New Zealand has the potential to capture $1.3 trillion more in agricultural exports by 2050 if targeted actions are taken the red meat sector is set to play a major part in realising this potential.
The new loan is a result of the bank’s participation in the Red Meat Profit Partnership, a government and industry programme to deliver long-term profits for red meat sector. Other new low-interest loans previously offered are for fulfilling compliance on effluent management, water quality management and water and energy conservation. Hawke’s Bay shearer Rowland Smith has successfully defended the Golden Shears open shearing title in Masterton.
The 27-year-old hammered the opposition in the six-man final and beat runner-up, second-favourite and fourtimes winner, John Kirkpatrick of Napier by more than two-and-a-half points.
Cam Ferguson of Waipawa was third, which created the Shears’ third Hawke’s Bay trifecta in a row, meaning no one from outside this region had been first or runner-up since the last win by David Fagan in 2009.
Smith’s win meant he will be the first of two NZ representatives at the World Championships in Ireland in May. The second member will be decided in Te Kuiti on March 29 when Smith defends the New Zealand championships Open title.
Joel Henare from Gisborne successfully defended the Golden Shears Open woolhandling title, allowing him to represent NZ in Ireland where he will defend the World title, which he won in Masterton in 2012.
Kimbolton farmer Ronnie Goss who finished second behind Henare will also go to Ireland.