In early August, Federated Farmers released the results of their biannual Farm Confidence survey. Compared to their previous report in January 2024, which indicated a challenging situation for farmers, alarmingly, conditions have worsened.
Federated Farmers’ January 2024 report indicated a modest improvement in confidence from the historically low levels of recent years. However, since then, the situation has regressed. Given that dairy products were New Zealand’s top export in 2023, followed by meat and meat products, the current state is deeply concerning.
“Things are really rough out there for farmers. It’s high input costs and low commodity prices, then there is the regulation and compliance costs and stress, as well as things like isolation and poor rural internet connection which is essential to run a farming business,” Nelson Federated Farmers president and Murchison dairy farmer, Stephen Todd, says.
The report showed that only one in four farmers are making a profit, with most farming families making a loss or only just breaking even this season.
Nearly 70 per cent of farmers described the economic conditions as bad, which was an 11-point drop since the January survey, with only two per cent of farmers describing economic conditions as “good”.
Of those surveyed, 21 per cent said they expected conditions to improve in the next year, while 26 per cent expected things to get worse, and 51 per cent expected things would stay the same.
Farmers said that this was the hardest time to recruit staff in more than a decade, with the ability to recruit now sitting at the lowest level since July 2012.
“When you put it all together it’s less income, more costs, and more challenges across the board which take time and energy,” Stephen adds.
Federated Farmers says that, unfortunately, they can’t do anything about low commodity prices and high input prices, instead focusing their efforts where they can have the greatest impact.
“We have been pushing back hard on the Government to change some of the impractical regulations that have unfairly driven up costs to farmers over the past few years and working on things such as the rural banking inquiry – where we are making good progress getting banks to see this as an opportunity, not a threat, and the long overdue ‘methane review’ which is welcomed news for all,” Stephen explains.
West Coast-Tasman MP Maureen Pugh says the Government has huge respect for the country’s farmers, growers and foresters.
“We will continue to partner with them to drive down costs, simplify regulations and build trust as we get Wellington out of their way.
“Some things will take time to filter through, but a significant start has been made with 20 actions either started or completed already,” she says.
Stephen concludes by emphasising the collective challenges faced by farmers and underscoring the importance of addressing these issues collectively through advocacy efforts and policy changes to alleviate the financial strain on local farmers.
