Recent findings indicate a marginal uplift in farmer confidence in New Zealand, marking a departure from previous lows. This development is captured in the 2024 Federated Farmers' New-Season Farm Confidence survey, which registered a 25-point increase in confidence levels among farmers since July 2023, a period when a net 80% of respondents viewed conditions negatively. Conducted online between 22-29 January 2024, the survey garnered 754 responses, offering insights into various concerns within the farming sector.
Financial issues, encompassing debt, banks, and interest rates, emerged as the primary concern, with 17.6% of participants expressing apprehension, a slight increase from 16.9% in July 2023. The rise in mortgage and overdraft interest rates, a reaction to the Reserve Bank's monetary policy adjustments aimed at curbing inflation, coupled with stringent lending conditions, has intensified financial pressures on farmers.
Regulation and compliance costs, encompassing a broad range of environmental, employment, health and safety, and industry-specific regulations, ranked third with 12.1% of farmers concerned, down from second place. The Government has pledged to alleviate these burdens amidst an influx of new or intensified regulations. Climate Change Policy and Emissions Trading Scheme (ETS) concerns, previously third, now stand at fourth with 8.8% of responses, as discussions about agricultural emissions pricing have subsided, with the Government delaying further action.
Input costs, including those for fuel and fertilizer, have slightly eased, moving this concern to fifth place with 8.6% of farmers noting it. Other noted issues include the economic situation, political climate, freshwater policy, viability and profitability, and staffing challenges. Despite these challenges, industry leaders are engaging with farmers to rebuild confidence, with HortNZ's chief executive, Nadine Tunley, highlighting the mixed sentiments among growers during a national roadshow.
Looking ahead, the horticulture sector anticipates positive trends, with the Ministry for Primary Industries forecasting it to become the third-largest export revenue earner in the food and fiber sector by 2025. This optimism is buoyed by expected increases in export prices, strong global demand, and the recent ratification of the New Zealand Free Trade Agreement with the EU, benefiting onion and kiwifruit sectors in particular.
Source: stuff.co.nz
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