Government scrambles as job losses loom in Timaru, Fed Farmers president joins Mental Health Commission, and Waikato dairy farm slapped with record fine for effluent breaches.

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Government scrambles as job losses loom in Timaru

The proposed closure of Alliance Group's Smithfield meatworks in Timaru has ignited a political firestorm, with the government facing tough questions about its rural and forestry policies.

Opposition parties have seized on the issue, criticising the government's handling of rural affairs and calling for immediate action to support affected workers and communities.

Minister for Rural Communities Mark Patterson has described the situation as a "wake-up call" for the government, signalling potential policy shifts in response to the crisis. 

The Minister pointed to changing land use patterns, particularly the increase in afforestation, as a key factor behind the plant's potential closure. This has put the spotlight on the government's forestry and carbon pricing policies, which Patterson suggested may have "swung too far."

The situation has exposed tensions between environmental goals and rural economic stability. The government now faces the challenge of balancing its climate change commitments with the need to maintain viable rural industries and communities.

The proposed closure also raises questions about the effectiveness of regional development policies. With up to 600 jobs at stake in Timaru, there are calls for targeted interventions to support affected regions.

Alliance Group's announcement has brought to the forefront long standing issues in New Zealand's primary sector, including declining sheep numbers and changing global market dynamics. 

Potential Timaru closure symptomatic of broader agricultural challenges

The potential shutdown of the 139-year-old Smithfield plant would deliver a heavy blow to South Canterbury's economy. It affects 600 workers and their families, a situation Toby Williams, meat and wool chair at Federated Farmers, describes as deeply concerning for the entire region.

While multiple economic factors contribute to this scenario, Williams points to misaligned policies as a key driver behind the current strain on the sheep and beef sector. He argues that a decade of regulations has unfairly favoured tree planting over farming, particularly for carbon revenue. This approach, coupled with what Williams calls "excessive red tape and layers of impractical regulation," has eroded confidence and investment in agriculture.

Recent data paints a grim picture, revealing a continued decline in sheep numbers. The national flock has dropped by approximately one million in the past year, now standing at 23 million. This trend aligns with long-standing cautions from Federated Farmers about the wider economic impact of regulations that hinder farming activities.

Williams warns that when poor regulations stifle farming, the impacts reverberate throughout rural communities and the broader national economy. He laments that this prediction is now becoming a reality, with South Canterbury bearing the brunt of these consequences.

In response to these challenges, the coalition Government has initiated efforts to revise freshwater and resource management regulations introduced by the previous administration. These changes aim to maintain environmental protections while giving equal weight to the economic and social well-being of rural communities.

Williams underscores the urgency of this policy rebalancing, stating that for the benefit of farmers, processors, and the wider economy, these adjustments cannot come quickly enough. 

Fed Farmers president joins Mental Health Commission

Federated Farmers National President, Wayne Langford,  has been appointed to the Board of the Mental Health and Wellbeing Commission. This five-year appointment brings a strong rural voice to the national conversation on mental health.

Langford, a dairy farmer from Golden Bay, Tasman, is well-known in farming circles not just for his leadership of Federated Farmers, but also for his role as the organisation's spokesperson for mental health and wellbeing. His appointment recognizes the unique challenges faced by rural communities and the need for their perspective in shaping mental health policies and services.

Mental Health Minister Matt Doocey highlighted Langford's extensive experience in supporting mental health, particularly in rural and remote communities which is timely given the increasing mental health concerns reported in rural areas, and exacerbated by recent events affecting farmers' livelihoods and wellbeing.

Rural Communities Minister Mark Patterson welcomed the appointment, noting Langford's first-hand understanding of the mental health challenges people can face. Patterson emphasised that Langford's perspective as a farmer and resident of a smaller community will be invaluable to the commission's work.

As rural communities continue to grapple with various challenges, from economic pressures to environmental concerns, having a representative who understands these issues on the Mental Health and Wellbeing Commission could prove crucial.

Waikato dairy farm slapped with record fine for effluent breaches

A Waikato dairy operation has received a record-breaking fine exceeding $300,000 for environmental contamination.

Flint Farms Limited, along with owner Barry Flint and manager Gavin Flint, were convicted on 14 charges under the Resource Management Act in the Hamilton District Court.

Waikato Regional Council compliance manager Patrick Lynch says its the largest fine for discharging contaminants into the environment in the Waikato region since the RMA was introduced over 30 years ago.

The legal action came after repeated breaches at the Ngātea farm on the Hauraki Plains. Council officers discovered multiple violations during an August 2022 inspection.

Despite receiving official warnings, the operation continued to violate regulations over a ten-month period, eventually leading to the hefty penalty.

The court took additional measures to ensure future compliance. Judge Melinda Dickey ordered Flint Farms to upgrade its effluent management system and implement a comprehensive plan to mitigate environmental harm.

As environmental standards tighten, farmers across the country are advised to review their practices and invest in modern, effective systems to safeguard both their operations and the environment.

Farm sales show steady growth

Farm sales across the country have shown  encouraging growth for the three months ending August, despite ongoing pressures in the rural sector. Sales increased by 18.9% compared to the same period last year, bringing the total to 208. However, this is down slightly from the 231 sales recorded in July. Although farm sales have softened, the sector remains resilient with levels similar to the past two years.

Over the past 12 months, 923 farms were sold, a decrease of 166 compared to the previous year. While sales dipped, Shane O’Brien, the Rural Spokesman for REINZ, points out that August saw 57 sales, slightly ahead of the 55 and 51 recorded in August of 2022 and 2023, respectively. He adds that August is typically a slower month, as many farmers hold off selling until the warmer months of October through December.

The REINZ All Farm Price Index has shown stability, with only a small drop of 2.1% between July and August 2024 and a year-on-year decline of 3.2%. This index takes into account factors like farm size, location, and type to provide a clearer picture of the overall market trend.

Regionally, farm sales varied. Nine regions saw increases, with Auckland leading the way, adding 13 more sales. Manawatu-Whanganui and Canterbury each saw 11 more sales, while Otago and the West Coast reported fewer transactions.

The types of farms changing hands also shifted. Dairy farms saw a drop of nearly 25%, while Dairy Support and Grazing farms declined by 10.8% and 26.3%, respectively. However, Arable farm sales were on the rise, increasing by 16.3%, suggesting some farmers are adapting their focus to meet market demands.

The median price per hectare across all farms sold rose 15.8% from last year, reaching $28,625 for the three months ending August, a 7.8% rise from July.