Friday, March 29, 2024

PULPIT: Everyone must get behind farmers

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As all New Zealanders wrestle with the immediate impact of covid-19 and contemplate what it will mean for them in the short to medium term NZ needs its primary producers more than ever. Our primary sector is one of the few industries continuing to work while the country is in lockdown – providing  food  for New Zealanders, the rest of the world and generating much-needed export receipts.
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It was only months ago when many of our primary producers, particularly dairy farmers, felt under siege. 

Fonterra shareholders were still grappling with comprehending with how their co-operative could have incurred significant losses impacting adversely on farmers own balance sheets. 

There was a fear and perception banks considered themselves over-exposed to agriculture and were pulling back from supporting farmers. 

Meanwhile, farm values were dropping as the impact of changes to the overseas investment regime and bank lending restrictions were biting. 

It was hard to recruit staff and encourage the next generation into the industry and many feared the Government’s proposals regarding emissions and clean waterways not only positioned dairy farmers as environmental destructors in the community but would impose both impractical and unaffordable costs on already strained businesses.

Fast forward to today. 

Fonterra has taken steps to get its balance sheet in order and restore much-needed confidence in its farmer base. 

Yes, more needs to be done but farmers can see the corner has been turned and a forecast $7-plus milk price sure helps give much-needed confidence.

In light of covid-19 the banks have a reprieve from the Reserve Bank’s capital proposals so, in fact, have more funds available to support good businesses. 

Indeed, at times like now there is moral pressure on the banks not to unnecessarily tip businesses over that can survive with a bit of time and a sensible plan. 

The Government has modified its most extreme proposals around emissions and clean waterways. 

The wider community has been reminded of the fundamental importance of our primary producers, including dairy, to not only stocking the supermarket shelves but to NZ’s ability to withstand the covid-19 shock to our economy.

Before covid-19 the biggest contributors to our economy were exports from our primary producers at more than $20 billion and tourism at about $12b.

Tourism has taken a massive hit and all predictions are the road to recovery, particularly on the international side, will take some time. 

Some commentators suggest 100,000 jobs will be lost in the tourism sector this year – that will not only hurt our economy but many families and local communities throughout NZ.

From my perspective as a governor of a range of businesses including an interest in dairy farming I believe this is a time for our primary sector to stand tall. 

While primary producers continue to face challenges from natural events such as floods, drought and the vagaries of global markets the fundamental importance of our primary sector to the nation has once again been made clear to all New Zealanders.

I’m not suggesting our primary producers crow about their importance to the country and their local communities. 

Indeed, that is not the way of farmers in NZ. They are hardworking and humble. 

It is blindingly obvious to the NZ public and the Government just how important our primary producers are so we don’t really need to say it. 

But there is an opportunity to go about what primary producers do and to lead the country by example – demonstrating resilience and good will in the local community, offering jobs to those who no longer have one through no fault of their own, taking a holiday in NZ if the opportunity for a break away from the farm arises, continuing to lift on-farm standards from an environmental perspective and go about producing the very best products in the world.

It’s time to stand tall. NZ needs our primary sector. NZ might once again be reminded and appreciate the long-term importance to the welfare of our nation of primary production.

We all need food and here in NZ we are fortunate that is one of the country’s strengths – food produced sustainably, food that is safe, food available for all New Zealanders, food the world wants, a sector that creates jobs in country, generates taxes needed to fund the Government’s big spending packages and a sector that produces much-needed export receipts. 

In my mind our primary producers deserve to be proud of the key contribution they make to NZ’s well-being.

It’s also time the Government, regulators and others influencing how primary producers operate reflect on the importance of having an environment that enables our primary producers to run sustainable businesses can flourish for the long term for the well-being of our nation. 

As we inevitably come out of the covid-19 crisis it’s important those responsible for creating and interpreting regulation of our primary sector don’t forget its importance and seek to impose unnecessary regulation and cost.

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