Wednesday, April 24, 2024

Grain growers down in the dumps

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Crops are establishing well and prices are looking better this season but arable farmers are not brimming with confidence, Federated Farmers arable vice-chairman Brian Leadley says.
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Canterbury cropping farmers have come out of winter well and, despite the cold spring, the warmer change over the past couple of weeks is encouraging good crop establishment.

Further south it has been wetter and there have been more challengesas a result.

But hanging over the arable sector’s confidence is a sprawling dark cloud.

“The general uncertainty in the farming sector is having an effect for sure.”

The cost of production is not going down, the uncertainty around regulation and compliance costs with ongoing Government policies on freshwater, greenhouse gases, zero carbon and biodiversity are affecting cropping businesses.

“What it’s going to cost us is absolutely having an impact on confidence.

“Arable generally and the stock side of our businesses as well with lambs finishing well to good prices and dairy grazing not pugging up too much over winter, we should be positive looking ahead.

“But it’s the cloud of uncertainty, it saps energy, it’s damaging and has certainly subdued any confidence.”

Leadley said while feed grains are a bit on the flat side, milling wheat and malting barley have seen good uptake this season with both increasing in area.

“The mills have come out very well this season and there’s also been a lift in malting barley but feed has been a bit subdued around people not spending money until they really have to.

“Just the same the potential is there for feed grains, albeit in competition with imported grain.”    

 Deep in the south arable farmers have been more challenged getting spring crops in the ground.

“We will have some very late spring crops given the stuff that went on with our spring weather. Wet and cold did cause problems,” Feds Southland arable chairman Chris Dillon said.

“But, fortunately, we had a good run in autumn and those crops have established well. If not for that we would be in a very bad situation.” 

Dillon said the last of his feed grain was going out for dairy feed but the competition with imported grain and feeds continues to be a dampener on the feed market for local growers.

“If any politicians want any ideas on how to minimise the impact of the dairy industry on the environment they need to ban all imported feeds,” Dillon said.

North Island growers have also been battling the weather. 

“We are getting there now. Usually in August and September we try to get a jump start on cultivation but that couldn’t happen, Manawatu-Rangitikei Feds arable chairman Dion Fleming said.

“Soil temperatures are just coming right now so it’s a much later start to the season.” 

Maize is the big crop for the region and growers are not looking ahead to a great season.

“We are catching up now and with the hammer down over this next week most guys will have broken the back of it.

“But after the good season last year we are not looking so good for this season and we are pegging back a bit.”

While trying to get up to up 500 hectares of maize in the ground on his family farm, as a contractor he also has about 1400ha to plant for clients.

“But we are looking at being down $20-$30 a tonne on last year and that’s a direct hit due to competition with imported grain.

“It’s (maize) still worth doing. There just won’t be the cream on the top this year.”

Malting barley at $470 a tonne is in a good space for the region’s growers but feed barley at $400/t is not quite making the grade for cropping farmers.

Like Canterbury the small pockets of wheat growers are taking advantage of good milling contracts this season.

What has alarmed Fleming comes from a recent visit to Canada.

“I went on this guy’s farm and he was skiting about how he had just landed the contract to supply the grain for New Zealand’s McDonalds buns.

“What can you say to that?

“I’m not planting pine trees – yet,” Fleming said.

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