with Federated Farmers president Don Nicholson

Rural Living: How do you see things ahead for the rural community given the current economic climate?

Don Nicholson.

Don Nicholson: Federated Farmer’s report on food prices and the farmers’ share unfortunately shows farmers are not the main beneficiaries of increased food prices. Biofuel crops and urban spread take land out of the mix but the demand for food will continue to increase. New Zealand farmers are in a positive position as demand for food increases but for New Zealand food producers to maximise international opportunities they must remain competitive. Minimising compliance costs imposed from central and local government is a battle Federated Farmers continues to fight at all levels.

RL: How do you see the growth of the lifestyle block in New Zealand?

DN: Lifestyle blocks are on some of New Zealand’s most fertile land and therefore smart people know they can make considerable income from that smallish quantum of land. These options should not be restricted; free enterprise is great.

RL: Following on from the previous question, with the increasing number of small block holders in New Zealand what is Federated Farmers doing to meet their needs? 

DN: Federated Farmers is currently working through membership models that may solicit support from the owners of lifestyle blocks. We can offer them value because their issues are generally the same as large scale farmers.

RL: What do you see happening to sheep/beef prices over the next few years?

DN: All the signs are that sheep and beef product prices are on the rise, not before time. The sheep industry is having its worst year in the past 50 years. Federated Farmers’ concern is that farm costs are running faster than product price gain. Rising compliance costs just keep nibbling at the base product; they are insidious.

RL: Farmers - especially dairy farmers - seem to be accused of being responsible for everything from global warming to the rising cost of living.  How can we change this view?

DN: New Zealanders have developed an interesting psyche in recent years - an almost anti-farmer sentiment. Who could blame them, because they have been bombarded with selective and negative information about the use of the environment?! The truth is everyone takes from the environment everyday. Yes, farmers take from the environment, but there must be a balance and forward thinking so as not to compromise future production. Farmers reap, sow, breed and nurture. A further misconception is that New Zealand water quality is deteriorating. In fact the opposite is true, water quality is massively improved compared to 40 years ago when there were less people, smaller cities and towns, and less intensive land use. We are lucky in New Zealand, we are a country that can afford to look after and care for our environment and have a high quality of life.