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Local news at www.starnews.co.nz <strong>Ashburton</strong>'s The <strong>Courier</strong>, Thursday <strong>February</strong> <strong>27</strong>, <strong>2020</strong>, Page 17<br />
AUTUMN<br />
CULTIVATION<br />
Farmer confidence up<br />
Farmers are feeling slightly more positive than they<br />
were six months ago but very few believe general<br />
economic conditions will improve in the year ahead,<br />
according to the Federated Farmers MidSeason Farm<br />
Confidence Survey.<br />
It was completed last month by nearly 1,500 farmers.<br />
Federated Farmers economics and commerce<br />
spokesperson Andrew Hoggard said higher commodity<br />
prices were boosting farm incomes and there was a<br />
slight rise in profitability expectations over the next 12<br />
months. However, concern about regulation and<br />
compliance costs is unabated since our July survey.<br />
Of the farmers who responded to the survey,<br />
conducted by Research First, just on 46 percent of<br />
them expected economic conditions to worsen over the<br />
next 12 months.<br />
That’s afive percentage point decrease on the July<br />
survey finding and the first positive change in forwardlooking<br />
expectations since that benchmark peaked in<br />
July 2017.<br />
However, there was no change in the very small<br />
proportion of farmers who expected conditions to<br />
improve (4 percent).<br />
Just over 46 percent expected no change in<br />
economic conditions (up five percentage points).<br />
‘‘That negative sentiment, albeit slightly improved, is<br />
consistent with the findings of other recent business<br />
confidence surveys,’’ Mr Hoggard said.<br />
Dairy farmers are the least pessimistic about<br />
economic conditions ahead but are still in negative<br />
territory, while arable farmers are the most pessimistic.<br />
Compared to July last year, the proportion of<br />
farmers expecting their profitability to improve is up<br />
three points to 24 percent, and those expecting it to<br />
worsen is down four points to 21 percent.<br />
‘‘There’s abit of buoyancy over sustained strong<br />
commodity prices generally and there’s anoticeable<br />
9point increase in the number of farmers who expect<br />
to reduce their debt over the next 12 months nodoubt<br />
in part due to the squeeze coming from banks,’’<br />
The survey showed arable farmers had the highest<br />
proportion making aloss and the lowest proportion<br />
making aprofit.<br />
These cropping farmers were by far the most<br />
pessimistic about profitability for the rest of <strong>2020</strong>.<br />
Arable farmers are most optimistic about<br />
increasing production in <strong>2020</strong>.<br />
Somewhat perversely, arable farmers were the most<br />
optimistic about increasing production in <strong>2020</strong> (34<br />
percent expect to increase production and 56 percent<br />
to maintain it a2.4point net rise) while dairy farmers<br />
were more pessimistic (19.5 percent anticipate increasing<br />
production, 65.5 percent expect to maintain it a<br />
15.6 point drop on the July 2019 net score).<br />
The January survey showed regulation and compliance<br />
costs, especially in the environmental space<br />
which will likely impact farm production and the cost<br />
of doing business, remains the single greatest concern<br />
for farmers. Just over 20 percent of respondents<br />
selected it as their No.1 concern.<br />
Climate change policy and the ETS came in as the<br />
second greatest concern (17 percent) and in third place<br />
was anew worry freshwater policy (11 percent).<br />
‘‘Everyone in the agricultural sector is wondering<br />
where the government is going to go with its final<br />
decisions on standards for protecting waterways.<br />
‘‘We’ve voiced our concerns loud and strong that if<br />
the initial impractical proposals floated last year are<br />
not tempered with a more targeted and practical<br />
approach, pastoral farming will become uneconomic in<br />
some area,’’ Mr Hoggard said.<br />
Awards open for groundspreaders<br />
Nominations are open for the<br />
second annual <strong>2020</strong> New Zealand<br />
Groundspread Fertilisers Association<br />
(NZGFA) Awards.<br />
It is the only awards scheme<br />
specifically for the ground spreading<br />
industry and aims to celebrate<br />
excellence in the industry as well as<br />
raise the profile and understanding<br />
of what is involved in the ground<br />
spreading profession.<br />
The awards, with nominations<br />
closing on April 17, fall into four<br />
categories the President’s Award,<br />
the Innovation Award, the Health<br />
and Safety Award, and the Young<br />
Achievers Award.<br />
NZGFA president John Schultz<br />
said ‘‘agriculture and food production<br />
starts with pasture and<br />
crop growth, and it’s our job to<br />
ensure that growthenhancing<br />
nutrients are applied accurately<br />
and evenly to intended areas only.<br />
‘‘This is askilled task for which<br />
ground spread operators undergo<br />
significant training.’’<br />
The standard means customers<br />
can gain peace of mind their<br />
environmental responsibilities<br />
around nutrient spreading will continued.<br />
Nomination forms, award<br />
criteria and terms and conditions<br />
are available at www.nzgfa.co.nz/<br />
awards and all category finalists will<br />
be invited to attend the NZGFAs<br />
64th annual conference in Christchurch<br />
in July.<br />
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