rural roundup - february 16th, 20102 rural roundup, tuesday, february 16, 2010 t corner churchill...

Supplement to Te Awamutu Courier, Tuesday, February 16, 2010Supplement to Te Awamutu Courier, Tuesday, February 16, 2010

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Worthy contestants head toWaikato/BOP Regional FinalAfter a day and night filled of

tasks designed to test a multi-tude of agricultural skills, Sam

Williams from Tihiroa was crownedthe winner of the Waipa/WaitomoDistrict Final of The National BankYoung Farmer Contest held in Decem-ber.

Williams finished with 170 points,ahead of Hadleigh Germann of Otoro-hanga on 163 points, and Sam Bryanof Pio Pio on 146 points.

For his win Sam Williams received$100 worth of cash from The NationalBank and a Ravensdown sports bag.

Second and third placegetters alsoreceived cash prizes from TheNational Bank and Ravensdown sportsbags and all District Finalists receivedSwanndri clothing and a cap from TheNational Bank.

The three will now go on tocompete in the Waikato/Bay of PlentyRegional Final to be held in Te Kuiti onSunday, March 21 for a place in theGrand Final of the New Zealand’spremier agriculture competition and a

chance to over $90,000 in prizes.The Grand Final will be held in

Gore from July 7 — 10 and willcomprise of a series of practical andtheoretical tests culminating in theGrand Final show in Gore’s recentlycompleted multi-sports complex.

This year’s Waipa/Waitomo Dis-trict Final saw one of the biggest fieldsof competitors in years with 31contestants from three clubs (Te KawaWest, North King Country, HamiltonEast) competing.

A large number of the contestantswere competing for the first time andwere encouraged by the ‘have a go’nature of the contest.

Feedback from contestants wasextremely positive and all went awayhaving learned something.

Williams (North King CountryClub), Germann (Te Kawa West Club)and Bryan (North King Country Club)proved they are worthy of a place inthe 2010 Regional Final and possiblyhigher honours with competent per-formances through the series of tasks

which were designed to challenge eventhe most multi-talented farmer.

These included driving a tele hand-ler, showing their skills on an ATV,installing a footed post, using pasturemanagement skills and testing theirknowledge with Ravensdown pro-ducts.

The contestants also had to com-plete modules that were designed totest their knowledge of water systemsand their veterinarian skills as well ashaving to complete a brief interview.

There were also modules where thecontestants had to identify everydayfarm items, show their knowledge ofchainsaw safety, put a ram harness ona sheep and even prove that they coulddo cheese tasting and data entry.

Following the practical day all thecontestants competed in the eveningshow answering questions covering avariety of topics including generalknowledge agriculture and sport.

The top four contestants also hadto do an impromptu speech andcompete in quick-fire question rounds.

Benefits of wool in good designThe New Zealand wool industry

will host a five day seminar ofeleven of the world’s top

architects in Christchurch in early April.They will be here to talk about using

wool and to get a hands-on feel for woolfrom inside the farm gate through to thefinished product. The event is aimed atrenewing interest and understanding byarchitects in using wool in both domes-tic and commercial buildings and willcover carpets, bedding and otherinterior textile uses.

The benefits of using wool ratherthan synthetic fibres, especially itsluxury, health and safety attributes andfire resistance will be major themes ofthe seminar.

Chairman of the National Council ofNew Zealand Wool Interests, Mr

Stephen Fookes, said that the project,which is being organised by and fundedthrough his Council, was initiated bythe International Wool Textile Organ-isation of which New Zealand is anactive member.

Mr Fookes said that the project wasawarded to New Zealand ahead ofother interested wool producercountries such as the United Kingdom,Uruguay, South Africa and Australia.

‘‘We see this project as being of realsignificance to the New Zealand woolindustry. The vast majority of our woolgoes into interior textiles, especiallycarpet and bedding. The focus thisseminar can bring to our wool will havelong term benefits that should increaseboth demand and price’’ Mr Fookessaid.

‘‘This is the first of several importantprojects my Council is working on atpresent to create new demand for wooland it fits perfectly with our belief thatthe only way to build a new future forwool is to work co-operatively with thewool industry around the world.’’

‘‘These architects are amongst themost influential in the world andchanging the way they specify thefinishes, particularly in large buildingssuch as hotels and office blocks isimportant.

‘‘The rest of the architectural pro-fession takes note of what these peopledo and the flow-on effect to otherarchitects is expected to be both realand significant. That can only benefitNew Zealand as the major producer ofinterior textile wool,’’ Mr Fookes said.

RURAL ROUNDUP, TUESDAY, FEBRUARY 16, 2010 3

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Save water, save moneyBY GORD STEWART

Gord Stewart is a specialist inwater-use efficiency and con-servation assisting DairyNZwith the Smart Water Use onDairy Farms programme.

Local start toSmart Water Use

Efficient water use in dairy farmoperations and reducing waterloss on the farm make good

sense.‘‘Freshwater is a precious natural

resource,’’ says Martin Bennett. ‘‘It’sessential for dairying and we have touse it responsibly.’’

Martin and Judith Bennett farmon a hundred hectares near Putaruruand careful use of water is just one ofmany things they think about in day-to-day operations. Thisattention to detail wasrewarded in 2006 whenthey took out ‘Best DairyFarm’ in the Ballance FarmEnvironment Awards forthe Waikato region.

Mr Bennett and a fewdairy farming colleaguesaround the Waikato, includ-ing Neil Gray and BruceWilton, have played a keyrole in development ofDairyNZ’s new Smart Water

Use on Dairy Farms programme.Smart Water Use resource mater-

ials are now available to dairy farmersto help them assess their farm watersystem and operations, identify areasfor improvement, and make the

desired changes. A few simple stepscould reduce water needs, cut poweruse and save money.

WATER COSTSFarms on council-supplied water

with a volume charge have the mostto gain from smart water use.Overflowing stock water troughs losea lot of water. So do small leaks fromwater pipes. If not repaired promptly,leaks will add significantly to the farmwater bill.

‘‘A big concern is the cost ofwater,’’ says Mr Gray, who has beenfarming with his wife Glenda on theHauraki Plains since the early 1980s.‘‘It’s a community thing really. Every-one has to do their part to keep theoverall cost of council water schemesrealistic.’’

POWER USEAbout 20-30% of power costs on

the farm are water related —pumping water into storage, downthe farm, wash-down and effluent

pumping. Improvements to reducewater use cut power costs which willsave money year-on-year.

Mr Wilton and his wife Margaretdraw their farm water supply frombores on their land near Morrinsville

and are well aware of the powercosts involved.

‘‘We recently installed a submers-ible pump to extract water moreefficiently and have also improvedour storage capacity,’’ says MrWilton, the fourth generation in hisfamily to farm the property.

‘‘We’re careful about mainten-ance, too. Small water leaks that areleft unrepaired tend to become largerover time, and this costs. But evenmore than this, a good workingwater system is crucial for a securewater supply for stock’’.

IN-LINE DISPENSINGAnnual costs for animal health

remedies are significant. If an in-linedispensing system is used for deliv-ery, any leaks out on the farm meansthose remedies are not getting tostock in the right dose. This is a costin lost remedies and ultimately in thehealth and performance of the herd.

The Smart Water Use materialscover a range of options toaddress leaks and losses.The resources are designedto be useful on small familyfarms through to largeoperations.

‘ ‘The Short FormAction Plan can help youmake a start,’’ notes Neil,‘‘But some of the other

materials are crucial for use on farmswith staff. It’s not enough for theowner or manager to care. You haveto get everyone working on the farminvolved and committed to smartwater use.’’

‘‘It’s not rocket science. TheSmart Water Use kit is a simple,commonsense tool. It covers a rangeof actions that are very easy andinexpensive to implement on thefarm. We hope dairy farmers aroundthe region will make good use of it,’’says Mr Bennett.

Smart Water Use on Dairy Farmsgot its start in 2006 with a study on12 farms in the Waikato. Thefarmers involved read their metersweekly to monitor water use. Theyalso assessed a range of simple stepsthat could be taken to cut leaks andlosses and use water moreefficiently.

‘‘It’s nice to see the things welooked at then are covered in thenew DairyNZ’s Smart Water Usematerials,’’ says Tony Brown, whosefarm was a part of the original study.

Mr Brown, along with his wifeShirley and sons Mark and Paul, run600 dairy cows on 160 hectares inFrontier Road just outside Te Awa-mutu. They are currently upgradingwater lines on the property toimprove supply to troughs aroundthe system and reduce their risk ofleaks.

‘‘Sufficient water for stock iscrucial,’’ says Mr Brown. ‘‘So havingyour water system in good workingorder is essential. Cost is an issue,too. Careful use of water goes rightto the bottom line’’.

Dairy farmers can go to www.dairynz.co.nz/smartwateruse for more information and ring 0800 4DAIRYNZ to order materials.

Launderingthreat to UShoney tradeNew Zealand’s growing honey trade with the United

States is in jeopardy if Australian honey productsare allowed into the Kiwi market.

The National Beekeepers’ Association of New Zealand(NBA) says Australian honey is being mixed withinternational honey and exported as an Australian product.

NBA joint chief executive, Gemma Collier, says ifAustralian honey imports are allowed into New Zealand,New Zealand risks becoming a ‘honey laundering’ hub, asituation that would severely damage our honey exporters.

New Zealand exported approximately $4 million worthof honey to the US in 2009. This is up from just under $2.5million in 2008.

‘‘The US market is growing steadily, especially themanuka honey sector, and any risk to it is extremelyconcerning to the beekeeping industry,’’ Ms Collier says.

‘‘We strongly advocate for the continued and indefinitesuspension of all honey imports from Australia.’’

The Ministry of Agriculture and Forestry extended thesuspension of honey imports from Australia by up to twoyears in September 2009.

As a result of ‘honey laundering’ Australia is now on aUS watch list of 13 countries whose honey products mustbe checked carefully on entry.

Ms Collier says establishing tracing and certificationprocesses to ensure exported honey is solely of NewZealand origin would add significant extra costs to industryparticipants.

The NBA has long voiced its concerns over the issue ofallowing Australian honey imports into New Zealand.

Ms Collier says allowing imports would also facilitate thevery likely arrival of a number of dangerous diseases andpests.

‘‘This would have far-reaching negative impacts onNew Zealand’s $71 million honey export industry, not tomention our agricultural and horticultural industries, whichunderpin our economy.

‘‘Estimates show approximately $3billion of NewZealand’s GDP is attributable to the intensive pollination ofhorticultural crops and agricultural pastures achieved usinghoney bees.

‘‘Bees are fundamental to the future of New Zealand’sagricultural and horticultural sectors and any threat or riskto the country’s bee population via honey imports could bedisastrous for our economy.’’


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Cost relief under pressureas global supply adjustsWith many manufacturers and

distributors of farm inputsrunning on low inventory

stocks any sharp increase in demandcould result in a logistical bottleneckcausing higher short-term prices forfarmers says Rabobank analyst AdamTomlinson.

‘‘Lower demand levels have meantthat global prices for manufacturedfarm inputs remained subduedthroughout 2009. The collapse ofinternational farm input prices in late2008 resulted in many manufacturersand distributors of farm inputs beingcaught with large stocks of highly-priced inventory and production cap-acities in excess of existing demand,’’he says.

‘‘In response to this, manufacturersof farm inputs wound back productionand the supply chain ran down inven-tories which could potentially have amarked impact on prices if we see aseasonal spike in farm input demand.’’

However, while an increase inagricultural commodity prices may

lead to rising demand for farm inputsand drive up prices, it is not expectedthat they will reach anywhere near thehighs of mid-2008.

Farm input prices have stabilised atsimilar levels to 2006/07 andRabobank expects most farm inputswill remain above the pre-2006 aver-age levels in the short-to-medium-term.

The upward pressure placed oninternational prices will come fromproductivity needs to meet increasingdemand for agricultural products as thebroader global economy recovers.

Rabobank regional manager forWaikato King Country, Paul Lamontsays that while Waikato has had goodsummer rainfall any rise in farm inputscould dampen confidence.

‘‘In our region dairy farmers inparticular are starting to feel moreconfident about their industry followingthe recent price increase fromFonterra. Ironically the downside ofthis rise in confidence could be that itplaces upward pressure on farm inputswhich could have a large impact on

dairy farmers’ bottom lines,’’ says MrLamont.

Mr Tomlinson says that among theother factors that will place upwardpressure on farm input prices will bethe higher average cost levels forenergy and raw materials, and theincreasing costs for managing environ-ment issues such as carbon pollution.

‘‘Although most farm input priceswill trade in a moderately higher rangecompared to the historic average, theresponse to higher farm input prices inNew Zealand will likely be an increasingfocus on using farm inputs moreefficiently,’’ he says.

‘‘Over recent decades New Zealandfarmers have increased productivity inthe areas of labour and capital expendi-ture.

‘‘We expect that future develop-ments in precision agriculture andbiotechnology may provide costreduction techniques and productivitygains for farmers to help offset theirmanufactured farm inputs cost com-ponent.’’

Fieldays Innovations Competition open for entries

Entries for 2010 are now open forthe annual Innovations Competi-tion at the New Zealand National

Agricultural Fieldays.The competition encourages New

Zealanders to get creative in the ruralsector, by producing new devices,developments and equipment whichimprove and support farming practice.

Inventors are all vying for theprestigious Golden Standard, thesupreme award in innovation worth$5,000.

This year organisers have placedsignificant emphasis on supportinginventors post competition. In previousyears entrants may have been illequipped to explore the commercialpossibilities of their inventions. TheFieldays Innovations committee is com-mitted to bridging the gap between the

creators and potential investors bothlocally and internationally; by providingexpert guidance on marketing, develop-ment, protection and finance of theirproduct. Organisers are intent on goingthe extra mile for entrants by providingvaluable opportunities and mentors forthe innovators. Dedicated seminars willbe held during Fieldays; allowinginnovators to meet with rural businessheavyweights and investigate the poten-tial of their creations.

The importance on this initiative isbacked by the 2010 Fieldays PremierFeature, Innovation for future profit.

The Fieldays Innovations Competi-tion features two main categories: theInventions Category and the EquipmentCategory. The Inventions section isaimed at the low key, back yardinvention, whereas the equipment cat-

egory is designed for professionals toshowcase new and improved designs.Youth are also encouraged to enter,with a specific award of $1000 forunder 25’s.

The winners will receive more thanthe glory and prize money of the award;the media exposure of their invention isinvaluable. Armed with the correct toolsto make the most out the attentiongained, the opportunities are endless.

Entries close on May 7. There will bean initial judging, and the best of theentries will be displayed in the Inno-vation Centre at National AgriculturalFieldays 16-19 June.

For further information please con-tact Innovations Coordinator, GemmaAntoniadis on 07 843 4499, [email protected] or visitwww.fieldays.co.nz


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OUR NEXTOUR NEXT RURAL ROUNDUPRURAL ROUNDUP

Farmer’s field of dreams

GRANT MCDONALD PHOTOFORMER national champions the Cambridge Bluestreaks play the WaikatoEvergreens on Bruce Wallis’ Field of Dreams at Roto-o-rangi.

If you build it they will come...

I f you build it they willcome - and they did.Roto-o-rangi farmer

Bruce Wallis is a big fan ofthe Kevin Costner film ‘Fieldof Dreams’.

So he decided to build hisown field.

‘‘I have seen the moviemany times, I watched itevery day at one stage, butmy family got sick of it.’’

Six months ago hestarted on his dream, plant-ing maize with a diamondand an outfield in the middleof his Roto-o-rangi dairyfarm.

A few weeks ago thesoftbal l d iamond wascompleted, as well as agrandstand, and just like theKevin Costner move theycame.. although this time itwas the Cambridge BlueStreaks and the WaikatoEvergreens (rather thanghosts of the Chicago Whitesox and his father).

The players, sponsors,helpers and spectators hadso much fun with the projectthere’s plenty of talk aboutthe pitch hosting othergames.

‘‘The diamond has beenmade to international stand-ards, so there’s plenty ofinterest in using it. Abusinesshouse softball com-petition is set to start on thesecond Sunday of March.’’

There’s even talk of nudesoftball.

Mr Wallis admits he’s‘keen to get his kit off’ onoccasion - something he didfor the Close Up pro-gramme which airedrecently.

He was seen runningthrough the maize field ‘aunaturel’ and believes there’splenty of opportunities forevents like national nudeday.

‘‘I do things ‘off the wall’sometimes, so people aren’tthat surprised at what I’vedone this time, but I haven’theard voices... yet.’’

After the Close Up pro-gramme aired he had anoffer of a piece of turf fromthe original ‘Field ofDreams’ that was created to

make the film.‘‘It was wonderful to

have that offer. Of coursethat was a film set and this isreality, so there’s a fewminor differences, butpeople that have been theresay this is as good, if notbetter, than the originalwhich is still there 20 yearslater.’’

He says the whole pro-ject has been ‘magic’ andthe field in still in goodcondition.

‘‘It’s a lot of work to keep

it going, but we’ve had lotsof visitors.’’

It seems Mr Wallis is notthe only fan of the movie.

The project struck achord with lots of peoplewhich produced around$20,000 of good andservices.

‘‘I didn’t look for spon-sorship, it just turned up.’’

With such support andenthusiasm it seems the‘Field of Dreams’ at Roto-o-rangi may be repeated in thefuture.


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Popular book re-releasedWin one of four copies from Rural Roundup

This month, Craig PottonPublishing is delighted toannounce the re-release of

Lifestyle Farming in New Zea-land by Paul Martin.

With over 3000 copies of thistitle sold, its popularity reflects thelifestyle dream of many NewZealanders — to live in thecountry on a lifestyle farm — andthe current trend toward moreself-sufficiency.

Running a small number ofanimals is the most popular use oflifestyle farms in this country, butfor those without farming experi-ence, this can be a dauntingchallenge. Lifestyle Farming inNew Zealand addresses this head-on.

Written by a veterinarian withextensive experience of workingwith lifestyle farmers, and also ofrunning a small holding himself,the book was inspired by afrequent comment, ‘I wish therewas a simple book on how to doit’.

This book is packed withuseful information, is copiouslyillustrated with colour photo-graphs and diagrams, and iswritten in an extremely accessibleand down-to-earth manner. With-out doubt this is the most compre-hensive and up-to-date book avail-able on this subject — an essentialresource for the New Zealandlifestyle farmer.

The author started life as a‘townie’ in Wellington, but as ateenager moved with his parentsto a lifestyle block north ofWellington. The family developedthis block from scratch, and Paulsoon took over the farm manage-ment. This culminated in theMartin family being awarded theSmall Farmer of the Year award in

1995. After completing a veterinarydegree from Massey University, Mr Martinworked for a number of years as a vet in theFranklin region south of Auckland, one ofthe fastest developing areas for lifestyleblocks in New Zealand.

His experiences there inspired him towrite this book.

He currently works as a farm veterin-arian and farm consultant in Northland,where he lives with his wife and daughteron a commercial farm.

To be in to win simply put your name, address and daytime phone number on the back of a standardsized envelope, address it to the Lifestyle Farming in New Zealand Competition and make sure itreaches our office by 5pm, Friday.


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Local rural building specialists

TC160210SP08AGIBSON Rural completed this milking shed on Stephen Field’s farm last year.

TC160210SP08BFEEDPADS on Jim Van Der Poel’s Ngahinapouri Road property.

With the experience, knowledgeand expertise to create out-standing cowsheds it’s no won-

der Gibson Rural Ltd is known as‘Builders for the Farmers’.

Pat Gibson has 37 years experiencein the building trade and six years ago

started Gibson Rural. The companydirector was joined by Brent Bird in2006 and Blair Atkinson in 2008.

Their new purpose-built premises onLivingstone Brothers Lane is now basefor up to 25 builders who cover thegreater Waikato area from Huntly in the

North to Taupo in the south.Mr Atkinson says the bulk of their

work is cowshed construction - usingtheir extensive experience and a rigor-ous consultation process to come upwith the best solution for each situation.

To page 18.

Our breeders to fore in premier show

TC160210RR09ASENIOR Heifer Class runner-up Sarah Wilson with her Holstein Friesian calfRewa Debra Morgan S3F.

TC160210RR09BALL Breeds Junior Calf Class winner Wendy Harker, leading Westell EmpireShelly S1S, at the presentation.

Three local breeders fea-tured in the All Breedsresults at the recently

held NZ Dairy Event in Feild-ing.

New Zealand’s premiercattle show attracted com-petitors from all over NewZealand to attend the threeday event.

The competi t ionculminates with the AllBreeds classes on the finalday of showing and cattlefrom Te Awamutu featured inthree of the 10 Classes.

Sarah Wilson, started theday off well with a secondplacing in the Senior HeiferClass with her Holstein Frie-sian calf Rewa Debra MorganS3F.

In a close competition,after all judges places wereannounced Sarah’s calf wasequal first. Another judge wasbrought in to make the call onthe final placings andunfortunately Sarah’s calfwas placed second.

The second class of theday was the Junior HeiferClass, and this was won byWestell Empire Shelly S1S.

She is a milking shorthorncalf owned and bred by Davidand Wendy Harker, usuallymore known for theirHolstein Friesian Cattle.

The couple have alsobeen breeding a few milkingshorthorn cattle in the pastfive years.

Then it was the turn ofJersey breeders Ross andEsme Riddell, who gainedsixth place in the 4-year-oldcow in milk class with theircow Roscliff Mans Dennie.

This cow had won her

class in Jersey competitionheld earlier in the week.

The results concluded avery successful week for TeAwamutu participants.

Young Breeders Brett andRob Barclay were awardedthe Semex Youth Show inMilk Champion with theirHolstein Friesian cow OkawaLesdale L Graceful and TarnHarker was awarded fourth inthe Young Handlers competi-tion — a huge accomplish-ment as there were 30 com-petitors in this class.

It was wonderful to seethe young breeders from theregion doing so well andthere will surely be manymore successful shows forthese breeders in the future.


108 TE RAHU ROAD, TE AWAMUTUPH. 07 871 3624 MOB. 0274 996 428PH. 07 871 3624 MOB. 0274 996 428

FAX. 07 871 5539FAX. 07 871 5539

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Learn how tospray safelyLifestyle and small block holders spraying for weeds

should ensure they get a handle on the basics of safeagrichemicals use, AGCARM says.

At this time of year many lifestyle block owners will benoticing weeds, particularly thistle and docks, need to besprayed.

Weed growth could be a particular problem this yearbecause some parts of New Zealand have had above averagerainfall.

‘‘The key to responsible use of agrichemicals is the samewhether you own a few hectares or large farm — geteducated,’’ AGCARM chief executive Graeme Peters said.

‘‘AGCARM recommends all small block owners getadvice from local distributors, read labelling information,access freely available information on the internet, or betteryet, undertake a short Growsafe course.’’

Growsafe is an educational programme focused on goodpractice standards for agrichemical use and has a range ofcourses available, Mr Peters said.

‘‘Most lifestyle block owners will have some use forchemicals and a short day-long course can be all they need toensure they stay safe while spraying.’’

Mr Peters said communicating with neighbours aboutspraying programmes is also vital. This also a requirement inmany regional council air plans.

‘‘You can avoid problems with your neighbours if youopen up the lines of communication and explain to themwhat you are spraying, why you are spraying and when youare spraying.’’

If they have concerns it’s important to try and addressthem and try to find practical measures to resolve anyconflicts.

‘‘Agrichemicals can enhance our interaction with our landif used safely and considerately. I urge all land owners to takecare and have a spray-safe summer.’’

AGCARM is an industry association of companies whichmanufacture, distribute and sell products that keep animalshealthy and crops thriving.

Bonds on offerFrom this Thursday Fonterra is offering up to NZ$100

million of bonds, with the ability to accept up toNZ$50 million oversubscriptions.

The minimum investment is $5000 and multiples of$1000 thereafter and the interest rate will be announcedtomorrow.

A Simplified Disclosure Prospectus for the offer hasbeen registered and is available for download atwww.fonterra.com

Fonterra’s initial consideration was for a bond offer ofup to $250 million. The offer size has been scaled back toa maximum of $150 million as Fonterra has been able tocover part of its financing requirements overseas at a veryattractive funding cost .

Life on the farm with Ross SuttonLife on the farm with Ross Sutton

Signed, sealed and sold

TC160210RR10A

TC160210RR10AFRIENDLY Tui.

On November 26 the contract ofpurchase of our farm becameunconditional. Beth and Ron

Guest of Puahue will be the new owners.Our block of land is the biggest to sell forthe Ray White Te Awamutu office allyear while the Guests’ block of land isthe largest for their agent. With therecession, virtually no land is transfer-ring hands so we consider ourselveslucky and we certainly wish the newowners well in their new endeavours.We have bought a house in Thameswith a view of the Firth so will retirethere after the sale transfer on May 3,2010.

MAUNGATAUTARI MOUNTAINI usually take our foreign guests on

one of the many walks created in thesouthern enclosure on the mountain.The Trust has done a magnificent jobwith its pest eradication, walks, sign-posting and seating. Yet I was horrifiedto read recently of a suggestion thatusers should be charged. Notwithstand-ing the cost of the administration, wealready pay through our EnvironmentWaikato rates and Waipa District Coun-cil rates. Perhaps the Trust needs tolearn ‘not to bite the hand that feedsthem’.

The concept of the ecological islandis great. On my last visit I encounteredstaff with a little platform attempting toweigh the Takahe. It was wonderful tosee ‘Skinny’, an apt name for one ofthem, who I hope has gained someweight.

Since writing the above, I havevisited twice. The second time, Sunday,December 13 I was met by a lovelywoman who introduced herself as avolunteer and part of the meet and greetbrigade. We had a very amiable dis-cussion and as we passed through thelittle gate, Mr Gordon Stevenson (atrustee), asked the lady if she had‘extracted’ any money from me. I said Ipaid through my rates but he wanted todebate it further. However, since I hadyoung Japanese guests with me, wemoved on. It left a very sour taste in mymouth and I suggest being gate-keeperis not the way to win friends andinfluence people.

TEENAGE PREGNANCYIn mid November I noticed a yearling

heifer pregnant and I separated her soas to keep a close eye on her. She wouldonly have been five months old and stillon her mother when she got pregnant.Despite our best efforts she startedcalving in the middle of a night. She didwell to get 2/3rds of the calf out andthen was so tired that it required ourhelp in the morning to drag the rest out.It took a while before the mother got onher feet but she seems to have sufferedno long term effects. However, when Ireleased her back into the mob, she wasquite extensively bullied for awhile soagain I separated her for a couple ofweeks. Cows are uncanny whendetecting sick animals.

BIRDLIFEDuring October, the Waikato

Times ran an interest column onsightings of Tui throughout the Wai-kato. We have our own story to tell andhere it is. A friendly Tui, paid us a visitmost days over a period of severalweeks. She sat on a chair on ourbalcony and sang to us while we sat in

the lounge. It was as though she knewwe were close by. We did not encour-age or entice it and it may have beenonly for just five minutes but it was aregular occurrence.

In mid-November I noticed severallittle birds feeding on the dirt behindour calf sheds. They had distinctiveyellow heads and small brown bodiesand I later identified them asYellowheads or Mohua. Some peoplecall them the Bush Canary. My onlyproblem is that they are only supposedto inhabit the South Island bush so wasI imagining things or can somebodysupport my identification?SILAGE AND SELLING CALVES

We made 86 large bales of silage inDecember and another 22 in January.Each large bale is the equivalent of 10of the small traditional bales.

I put a small sign up on our cattleyards indicating that we had weanercalves to sell and one customer fromlast year purchased 10 and a newcustomer rang and enquired. Hevisited and saw our hand reared calvesand those still with their mothers andhe wished to purchase the lot. Wecame to an agreement and he boughtthe forty three calves. Having sold thefarm, de-stocking is one of the bigticket items to sell.

Continued page 11.


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Saturday, March 13, 2010Selwyn Park, Te AwamutuThe Tornadoes featuring Roy Orbison

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and Elvis playing for Gracelands

BE IN QUICK TOBOOK YOUR SITE!Size: 4x4mtrs aproxPrice: $200 (includes 20 tickets)

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TC160210RR11STORM clouds gathering.

Weather pattern erratic

WEATHER/RAINFALLOver the years of writing weather

has not received much comment otherthan recording the rainfall but in thespace of three years the rainfall hasbeen most erratic.

I am not sure whether it makes me a‘climate change’ advocate or not but a

comparison is below.November, 2008 — 60mmNovember, 2009 — 67.7mmDecember, 2008 — 173.5mmDecember, 2009 — 109mmJanuary, 2008 — 8mmJanuary, 2009 — 45.5mmJanuary, 2010 — 226.5mm

After a rather dry December andthe early half of January, we had heapsof rain spread over about six daysbetween 26-29 January peppered withhail, lightening and thunder. Some of itwas spectacular and frightening. Thecloud formations as shown in thephotograph were equally spectacular.

New John Deere developmentFarm Services Limited and Walsh

Motors Limited have receivedapproval from John Deere

Limited to sell the John Deere assets ofthe existing companies and transferthese to a new business entity.

It is envisaged the new operationwill create many benefits and oppor-

tunities for both staff and customers,including:

· Increased financial strength andresources;

· Improved parts and service sup-por;t

· Greater opportunity for careergrowth to our employees.

The development also fullysupports John Deere Limited’s strat-egy to consolidate dealershipsthroughout New Zealand.

Farm Services Limited and WalshMotors Limited look forward to con-tinued and ongoing support fromclients during these exciting times.


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Maize silage -

Treated withPioneer L. buchneri Control

Treated withPioneer L. buchneri Control

oC39.9383634323028

27.1

During the next few weeks, manyWaipa farmers will be asked, ‘‘Doyou want inoculant on your maize

silage?’’The aim of this article is to answer this

question by explaining how silage inoculantswork, the benefits of using a proveninoculant on maize silage and to provideguidelines on how to choose the rightinoculant for your maize crop.

HOW DOES A SILAGEINOCULANT WORK?

Once plant material has been harvested,compacted and sealed in a stack, anaerobic(oxygen-free) bacteria increase in numbersand convert plant sugars to acid. This aciddrops the pH and preserves the silage. Allcrops contain a range of bacteria. Some aremore efficient at converting sugar to theright type of acid than others.

A quality silage inoculant containshundreds of thousands of efficient lacticacid-producing bacteria. When added to aforage crop at harvest time, these out-compete the naturally occurring bacteriaand dominate the fermentation process.

There are different types of silageinoculant bacteria. In general, productswhich contain homolactic bacteria (e.g.Lactobacillus plantarum, Enterococcus

faecium) improve the initial fermentationprocess by speeding up the production oflactic acid. Products which contain Lacto-bacillus buchneri improve silage aerobicstability meaning it keeps its quality andremains cooler for longer at feed-out time.

A key benefit of using L. buchneriproducts such as Pioneer® brand 11C33 isthat maize silage can be fed-out up to a dayin advance without heating.

WHAT ARE THE BENEFITS OF APROVEN SILAGE INOCULANT?The positive effects of silage inoculants

observed in controlled industry and univers-ity studies have been:

· lower silage pH· higher levels of lactic acid· greater drymatter recovery (less shrink-

age, spoilage and run-off)· improved silage digestibility (higher

feed energy levels)· increased animal performance (more

milk or more meat per tonne of silage fed)· improved stability and less heating

when the silage is exposed to the air at feed-out time

This results in you getting better qualitysilage allowing your livestock to producemore milk or meat and a greater financialreturn from every tonne of maize you ensile.

Infrared photography of an open maize silage stack showing the temperaturedifference between an untreated control and silage treated with PioneerLactobacillus buchneri.

AMARANTH

I f you want to have better,healthier skin, chances arein future you’ll be buying a

product derived from themain ingredient for your por-ridge (oats), or an ancientgrain-cum-purple weed calledamaranth.

Scientists at AgResearch,working through TheBiopolymer Network Ltd(BPN) owned by AgResearch,Plant & Food Research andScion, have been workingwith great success on thesetwo natural ingredients.

AgResearch’s BeckyMacdonald, who leads theBPN’s Biopolymer Productsresearch programme, saysthe moistur is ing andantioxidant properties ofboth, if properly processed,show they will make excellentskin and hair products.‘‘We’re pretty excited aboutthe properties of both amar-anth and oats. With the rightfunding and partners, bothshould be on the shelves inthe future alongside syntheticchemical products.’’

‘‘We’re aware that thesearch for bio-based mater-ials for personal careapplications is becomingmore important due to aglobal move away from usingnon-renewable resources andenvironmentally damaging,chemical-based productionmethods, ’ ’ sa id BeckyMacdonald.

She and her team focuson extracting biopolymersfrom natural materials usingeco-friendly methods as analternative to syntheticallyderived molecules, withfunding by The Foundationfor Research, Science andTechnology through theBPN.

Biopolymer NetworkLimited CEO Sarah Heinesays BPN brings together

biomaterials scientific excel-lence for commercially-driven, sustainable results.‘ ‘With strong industryrelationships and the uniqueability to access more than1500 researchers withinAgResearch, Plant & FoodResearch and Scion, BPNprovides a strong scientificbase to create innovative pro-ducts in the areas of bio-based polymers and bio-composites.’’

Sarah Heine says BPNhas already patented a water-based extraction technologyand further research isfocused on modifying result-ant molecules to make themsuitable for use in beautyproducts.

‘‘This is just one of manyBPN projects currentlyunderway, working towardsbuilding New Zealand astrong bio-based materialsindustry,’’ said Sarah Heine.

Grains good forhealth and beauty


Pioneer® brand products are sold subject to the terms and conditions of purchasing, which are part of the labelling and purchase documents. ®, TM, SM, Trademarks and service marks of Pioneer Hi-Bred International, Inc.

www.pioneer.co.nz 0800 PIONEER 0800 746 633

PROVEN SCIENCE, QUALITY PRODUCTS, MORE CHOICE, BETTER RESULTS.

PIONEER® BRAND 1132INOCULANT DELIVERS

MAIZE SILAGEMAXIMISE RETURNS FROM

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7300024AA

2010 RURAL2010 RURALROUNDUP DATESROUNDUP DATES

The Te Awamutu Courier publishes a special monthly farming supplement The Rural Rounup.

Our paper is delivered to 11,634 homes including 5082 rural clients in the Te Awamutu and surrounding areas from north of Otorohanga in the south, to Kaipak/Te Pahu in the north and out to Oparau/Kawhia in the west.

To assist with your forward planning below are the dates and features for the Rural Roundup for the next 12 months.

March 16 Regrassing

April 20 Maize Grain Harvesting and regrassing

May 18 General

June 15 Fieldays and Welcome to the District

July 13 Calf Rearing

August 17 Grow Maize 2009/10

September 14 Summer Crop options and Silage Making

October 19 Cropping, silage and hay

November 16 Hay/Silage and Calf Club Results

Phone 871 5151

For Further Information please phone:

Advertising: Alan Price or Heather Andrew

Editorial: Dean Taylor or Cathy Asplin

OHAUPO AGRICULTURAL CONTRACTINGContact Steve

Ph (07) 825 2908 or Mob (0274) 733 660email: [email protected]

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should I inoculate?Milk return per tonne of maize ensiled

Control Pioneer 1174 Pioneer 1132

For example, trials show, at currentpayout levels, Pioneer® brand 1174gives a return of $4.47 and Pioneer®brand 1132 gives a return of $11.45per dollar invested in inoculant.

HOW DO I CHOOSE ASILAGE INOCULANT?

Not all silage inoculants are thesame. Just as two cows differ in theefficiency with which they convertgrass to milk, different bacteria strainsdiffer in the effect they have on silagefermentation. Even if two inoculantscontain the same bacteria species (e.g.Lactobacillus plantarum), they will notnecessarily produce the samefermentation and silage quality resultsbecause of the natural variability inlactic acid production that occursbetween the strains.

In a Hoards Dairyman article titledConsider silage inoculant choicescarefully, Dr Limin Kung (Universityof Delaware) says: ‘‘You may hear theargument that, because a companysells an inoculant that has bacteria withthe ‘‘same name’’ used in otherstudies, that those studies support itsuse. Many bugs have the same namebut not necessarily the same activity orproperties. Thus, this is not a validargument.’’

When choosing a silage inoculantfirst consider the type of inoculant youneed to address your main silage-making issues. For example, do youwant:

· a better fermentation and higherquality silage?

· reduced heating and spoilage atfeed-out time?

· a product that will deliver bothbetter quality silage and reducedheating at feed-out time?

Once you have decided the type ofinoculant you need, make sure the

product that you buy has:• comprehensive, global product-

speci f ic research, includingfermentation studies and animal per-formance trials. If you want a productthat reduces heating and spoilage atfeed-out time, look for product-specificaerobic stability trials.

• a guaranteed number of bacteriaper gram on the label as well as anaccredited quality control system thatensures every bottle of inoculant you

apply contains the right strains of livebacteria.

• extensive local technical back-upthat can help you with all aspects ofsilage making and feeding.

In summary, proven silageinoculants offer fermentation and/oraerobic stability benefits. The keybenefit from using them is more milkor meat per tonne of maize ensiled andan increase in the profitability of yourmaize silage investment.

Increase in profit from using Pioneer® brand inoculants on maize silage.Returns calculated using drymatter recovery data from Pioneer anduniversity trials, Washington State University dairy trial results and amilksolids payout of $6.05/kgMS.


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Wise use of herdtest information

By Steve Cranefi eld — veterinarian in theTe Awamutu fi rm VetEntTe Awamutu.

Herd testing is an important toolto identify cows with subclinicalmastitis. As we move into late

summer herd testing provides a valu-able way to identify cows withsubclinical mastitis but we have to usethe results wisely otherwise it is easy tospend a lot of money on unsuccessfulantibiotic treatments

There are two types of mastitis.Clinical mastitis is severe enough to beseen with the naked eye as clots in themilk. Subclinical mastitis is still bacterialinfection but it is not severe enough tocause these changes in the milk that wecan see.

A somatic cell count is a way ofdetecting subclinical mastitis. It is a testfor white blood cells in the milk and it ismeasured per ml of milk. White bloodcells are the bodies defence against

disease or injury, they are part of theinflammatory response the bodymakes. Bacteria generally trigger thegreatest inflammatory response in thecow’s udder so a rise in somatic cellcount generally indicates a bacterialinfection. However there are othercauses of a rise in somatic cell countsuch as injury (eg a knock to the udder)or any stress to the cow ( eg disease orfacial eczema).

There are two ways somatic cells aremeasured. First it is done daily byFonterra using a sample from the wholeherd that have gone into the vat thatday or, secondly, individual cowsomatic cell counts can be done at herdtesting time (normally this is done fourto five times a year).

We are well over the spring peaknow so milk volumes are declining.Because somatic cells are measured perml of milk, as the volume goes downsomatic cells go up. This is why bulkmilk cell counts rise toward the end ofthe season and we start to use herd testinformation to make decisions on whatto do with high cell count cows to keepthe bulk count down.

It is important to use herd testinformation wisely. A very high somaticcell count test for an individual cow (egover a million) is likely to indicatemastitis. Successful treatment howeverdepends on a number of factors. It istempting to pull out the highest somaticcell count cows and treat them withmilking cow antibiotics but often this is

a waste of time and money. If theinfection has been there a long time orof the bacteria is Staph aureus (one thattypically lives on the teats of cows) thenthe cure rate may only be 30%. In otherwords 70% of the time you won’t cureit. Instead we must look at the cowshistory before deciding on a course ofaction.

Cows that are unlikely to respond tomilking cow treatment are;

1. Cows that have had high somaticcell counts at each herd test throughoutthe season indicating chronicinfections.

2. Cows that have been treated forclinical mastitis 3 or 4 times and are stillhigh on somatic cell count.

3. Cows with hard lumps orabscesses in the udder

4. Old cowsThese cow are best culled or dried

off and dry cow treated.Cows with a recent history of

infection ie only high at the latest herdtest are the best candidates for treat-ment. But first they should be RMTtested to see how many quarters areaffected ( The RMT or rapid mastitistest is a detergent solution that reacts ifthe somatic cell count is high) thenideally milk cultures done to see if thebug is likely to be killed by the antibiotic.Then we are in a good position to treatwith a better chance of success. It isimportant not to use antibiotics unlessnecessary to reduce the chance ofbacterial resistance.


Benson Road, Te Awamutu.Benson Road, Te Awamutu. PPhone:hone: 07 870 2411. 07 870 2411. www.powerfarming.co.nzwww.powerfarming.co.nz

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SeedSeed FertiliserFertiliser

Dairy farmers opt for lessvolume for more profitProducing excellent milk at lower

cost is to Northland dairy farmersShane and Michelle Lawson what

dairying is all about.Mi lk ing 300 predominant ly

Holstein-Friesian cows (split calving100/200), on their 147 ha (120 haeffective) Okaihau (midway betweenKerikeri and Kaikohe) farm, the couplesay they made significant profit marginswhen they shifted their focus from milkvolume to breeding, production, andlactation worth (BW, PW and LW).

‘‘Milk quality (and better profits)result from improving our herd BWyear-on-year,’’ says Mr Lawson.

‘‘We want more efficient producersor converters of feed to profit, and wetry to be as consistent as we can be.’’

Several years ago, the couple saythey set some short and long term goals,plans and strategies to help themachieve better milk quality.

‘‘We sat down with LIC DistrictManager, Bob Wood, and after lookingat our herd’s Age Group PerformanceProfiles, and our ’BV Averages’, wecould see that the higher BW animalswere the one’s doing the production, sowe changed our breeding policy thereand then.

‘‘We used LIC’s Alpha CustomateComputer Programme to pick the sireswith traits that were important to us.The programme matches sires to ourcows giving us the best possible out-come — high BW animals with TOP’s(traits other than production) selected.

‘‘Because we expected the early2009 payout price to be down we cutcosts and changed to LIC Premier Sires,we are not able to match-make with thisservice, but the best bulls available onthe day are the ones we get to use,

‘‘Also with this hassle free way ofbreeding Michelle doesn’t have to be atthe dairy every day to keep a check onthe breeding of ‘Her Babies’.

‘‘We’re confident this will work outjust as well, because all the bulls we’reafter are in the (Premier Sires) team

anyway.He said they also AB mate Premier

Sires bulls with BVs that indicate easycalving, ‘‘so we get a one year geneticjump with our rising two year olds tohelp us on our way to having a higherBW herd, producing at a higher level.

‘‘Of course the natural outcome ofthis is that we are seeing an improve-ment in PW and LW.

HERD TESTING —A MANAGEMENT TOOL

‘‘We also consistently and regularlyherd test (four times a year). It’s a mustfor us as it gives us the information weneed.

‘‘Herd test records help me sort outwhich cows are worth putting to AB,which need to be considered for culling,need drying off, and which arecandidates to be carried through.

‘‘Herd testing for me, is a herdmanagement tool, it helps us to look atsomatic cell counts, helps us decide onappropriate health treatments andwhich cows to breed from.’’

Michelle says since implementingtheir carefully devised strategies, milkquality has been steadily improving andthat now the resulting high BW heifersare coming through she is lookingforward to seeing next season’s results.

‘‘’’It’s amazing to see the heiferscoming in with fantastic udders and justreally cranking.

‘‘We can finally start to get rid of theolder girls that aren’t pulling theirweight, but who are pigging out on thefeed.

‘‘We have a lot of cows that might beproducing, but are not worth breedingoff. I go through herd test and MINDAreports and pick out all the high PW andBW cows, this helps me put togetherour breeding plans.’’TEST RESULTS GUIDE ACTIONS

Mr Lawson says herd test resultshelp determine what action is required,depending on the time of year.

‘‘When the herd test results comethrough it’s great to find out which cows

are on three (KgMS) a day and who thetop cow is — it’s quite often a surprise.

‘‘In September we look at our carry-over cows to identify which are drop-ping off and SCCs to decide which needdrying off.

‘‘We need herd testing, you can’t justgo out and pick a cow because you thinkshe looks like she’s not producing well.

‘‘Herd testing is something wecouldn’t be without.’’

Mr Lawson says milk quality must bemanaged properly and that a key part tothis is monitoring what’s heading intothe vat.

‘‘Quality and profits will be com-promised by the emergence of mastitis.

‘‘We aim to be grade-free andadmittedly we struggle occasionally withthermos (thermogenic plate counts;high temperature bacteria) out-of-the-blue that nobody can find.

‘‘But basically milk quality is aboutkeeping the cell counts down and thatmeans milking the girls out thoroughly.It means identifying any clinical cases ofmastitis through observation — beforethey get out of hand.

‘‘Milking cows out properly, notpushing cows through the dairy tooquickly, keeping the plant clean, doingmonthly checks and keeping a papertrail are all really important for ensuringquality milk..

The Lawsons say that no cows areculled without checking all the reportsand records.

‘‘There’s only so much you cangauge when you’re watching the cowsmilk,’’ says Mrs Lawson.

‘‘A cow may have a small udder andlook like she’s not producing much —she could, however, be cranking out thesolids — the only real way of telling isthrough herd testing.’’

The couple are hoping to produce125,000kgMS this season.

‘‘Milk quality has shot up for us in thepast year,’’ says Mr Lawson.

‘‘We’re currently doing 10,000more solids than the previous season.’’


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DIRECTORS:David BaileyRobert InghamCheyne Waldron

ASSOCIATEDIRECTORS:Layne KerrKelly McIvor

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What is the best farm system?

By Darren Sutton— Waikato FarmWise consultant.

I t’s at this time of the year many of usreview and reflect on the year that hasended, and set goals for the coming year.

It’s an essential task for members of thefarming community, particularly if they wishto keep improving and achieve their desiredgoals.

One of the questions you may want to askyourself is: What is the best farm system to

use? This is the million-dollar question — andthere is no one simple answer.

I have seen the merits of high and low costsystems debated and have seen successful/profitable farmers representing both camps.

I have also seen farms go from low inputto high input and make the same or even lessprofit! So what is the answer?

The answer is to farm to your ownpersonal strengths and the physical strengthsof your farm.

Having said that, there are some funda-mental drivers of profit across all farms andthis was demonstrated recently by the SouthIsland Dairying Development Centre(SIDDC) in their analysis of the LincolnUniversity Dairy Farm (LUDF) and 14 otherhigh performing farms in Canterbury throughDairyBase.

The results were interesting and showedthat the biggest drivers towards high Operat-ing Profits were:

1. Pasture eaten (t Dm/ha)2. Operating expenses ($/kg MS)3. Imported supplement minimised4. Stocking rate (cows/ha)

While the data set is small (n = 15 farms), some areas havebeen highlighted from this study, which, if applied correctly,can lift your ‘Operating Profit’.

1. Pasture Eaten — the goal here is a simple one: Tomaximise the total amount of pasture grown and thenmaximise the amount of feed that goes down the cow’sthroat.

Assess each paddock on its merit, determine whichpaddocks are not pulling their weight and ask why this is. Is ita drainage issue, compaction, soil type, soil fertility, pasturespecies, weeds, aspect, or bad management decisions at agiven time of the year? What will it cost to get that poorperforming paddock(s) to be more productive?

To achieve high levels of pasture eaten per hectare, youneed good pasture management to ensure at every grazing ahigh level of pasture utilisation is achieved. It is pointlessgrowing 20 t DM/ha if only 13 t DM/ha is eaten.

At every grazing you must know how much pasture youhave available and make the necessary adjustments to ensurenothing is wasted.

2. Operating Expenses — the goal of ‘managing costswisely’ sounds simple, but for many, it’s quite difficult. It isimportant to differentiate between keeping costs low, andmanaging costs wisely — driving costs down in some areascan also drive down ‘Operating Profit’ so your focus shouldbe on ‘wise management of costs’.

Some key lessons that have come out of the financialsqueeze include:

· Knowing the difference between essential and dis-cretionary spending.

· Before you spend, ask yourself: Will this will generate aprofitable return? And what will this look like?

· Get quotes for medium and large expense items.· Set cash flow budgets, and make sure they are regularly

monitored and adhered to.· When doing budgets look closely at the big ticket items

— fertiliser, feed and labour. Animal health is another towatch closely.

· Do not use Hire Purchase or other high interest creditfacilities.

· Just because your neighbour uses X product, it does notmean it works, or will work for your farm.

Ernest Rutherford once said: ‘‘We don’t’ have a lot ofmoney, so we are going to have to think’’.

Create time and space to ‘‘think’’, and you may findcheaper solutions to a problem, rather than just throwing thecheque book at it.

3. Imported Feed Minimised — the study revealed somesurprising results given that it was done based on a payout of$7.66 per kg of MS. Even at a high payout, the farms thatkept feed imported down to a minimum, trended towardshigher Operating Profits.

These results are supported by other studies that showexceptional pasture and supplement feeding management isneeded by the farmer, combined with smart purchasingdecisions in order to make a high-input system moreprofitable than a low-input system.

To be profitable running a higher input system you needto:

· Have good control on the costs of feed coming on farm.· Use feed contracts and plan well in advance to avoid spot

pricing.· Have excellent pasture management to maximise the

quantity and quality of pasture grown on farm.· Have excellent management skills and maintain close

monitoring of the farm every day to adjust supplementfeeding levels and types based on pasture available.

· Have the infrastructure to handle this type of system.· Have the correct stocking rate.4. Stocking Rate (SR) — is closely associated with the

amount of pasture eaten per hectare. As the stocking rateincreases, so too does pasture utilisation, which has a hugeimpact on profitability. But you can go too far.

A better measurement tool can be achieved by measuringyour ‘Comparative Stocking Rate (CSR)’, which is yourstocking rate expressed as kg liveweight/tonne DM.Research shows that this should be between 80 — 90kgsLWT/t DM and, for a low input farm (System Two), willgenerally mean a stocking rate range of 2.8 — 3.3 cows/ha.

Look closely at the physical strengths of your farm to helpdecide on stocking rates.

For example some soils cannot handle a high SR, as toomuch damage is done in the wet months and some pasturesare better at different stocking rates, for example, lateflowering tetraploids for low SR farms.

It’s also important to remember, that being too lightlystocked can exacerbate poor pasture management, with highcosts related to harvesting large pasture surpluses, losingpasture quality in the spring and only getting it back thefollowing autumn.

ACTION PLANThere are a lot of areas on your farm to analyse to see

what you are doing right, and to highlight which areas youcan improve in.

The difficult part of putting the whole jigsaw together is ,as in any biological system, as soon as you change onevariable, five others can move too!

My advice is to take the time and put your farm onDairyBase (www.dairybase.co.nz) so you are in a betterposition to identify what areas of your farm business is notperforming and, then start thinking!


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More ‘sting’ from RMAprosecutions predicted

By Kirsty McDonald — a solicitor in theTe Awamutu fi rm Gallie Miles.

Period 1 2 3Total RMA prosecutionsAgriculture sector prosecutions

375 171 26018 64 110

Period 1 2 3

Highest Fine ImposedTotal of 30 Highest Fines

$50,000 $55,000 $86,500 $611,000 $609,200 $1.114M

Average fi ne imposed

Average of 30 Highest Fines $20,367 $20,307 $37,142

$6500 $8167 $12,463

A report published last year by theMinistry for the Environment (MfE)provides useful insight into the trends

for prosecutions under the Resource Man-agement Act 1991 (RMA) for the periodfrom May 1, 2005 to June 30, 2008. Thisreport together with recent judicialcomments and the increase in the maximumpenalties under the RMA clearly signal tofarmers that the level of fines for breaches ofthe RMA are likely to increase.

MfE REPORTThe MfE last year released a study into

the use of prosecutions under the RMA forthe period from May 1, 2005 to June 30,2008 (the Third Period). The reportcompared prosecutions under the RMA forthe Third Period to prosecutions over twopreceding periods being October 1, 1991 toJune 30, 2001 (the First Period) and July 1,2001 to April 30, 2005 (the SecondPeriod).

The report identified that there had beena steady increase in the number of prosecu-tions from the Second Period and asignificant increase in the number of pros-ecutions in the agricultural sector.

The largest number of prosecutions forthe Third Period came from the agriculturalsector. There were 110 prosecutions in theagricultural sector in the Third Period whichequated to 43% of the total prosecutions forthat period. This is a similar result to thesecond period where agriculture also hadthe largest number of prosecutions with37% of all prosecutions. In the First Periodhowever, agriculture accounted for just 18%of all prosecutions.

In the Third Period the activity which ledto the largest number of prosecutions was‘discharge to water, or onto land where mayenter water’’’. The discharge to watercategory in the Third Period generated 42%of the total prosecutions under the RMA.The Council who brought the most prosecu-tions was Environment Waikato whobrought a total of 45 prosecutions in theThird Period. This equated to 17.4% of allthe RMA prosecutions in the Third Period.The second largest number of prosecutionswere brought by the Canterbury and OtagoRegional Councils who each brought 25prosecutions in the Third Period.

The statistics send a clear message to thefarming community, that there is an increas-ing trend for prosecutions to be brought forbreaches of the RMA by the agriculturalsector and that Environment Waikato isparticularly proactive in bringing prosecu-tions.

SENTENCINGThe MfE Report also shows a trend of

increasing levels of fines for RMA prosecu-tions.

The above table shows that over the threeperiods covered by the MfE Report there hasbeen a trend of an increasing level of fines.This is reflected in comments by Judges whencarrying out sentencing for RMA prosecu-tions. The comments by Judges are directedat the need for there to be a deterrent effect inthe level of fines which are imposed. HisHonour, Judge Thompson in sentencing inthe Waikato Regional Council v PlateauFarms Limited (25/01/2007 DC RotoruaCRI-2005-069-2345) decision said ‘‘. . . theCourt has been expressing concern that themessages about environmentally responsiblefarming, and dairy farming in particular, donot seem to be being universally heard.

‘‘The Court is well aware that there aresubstantial efforts at education of farmers totheir responsibilities and the major dairycompanies have been very much involved inthat.

The Court’s response, particularly overthe last two or three years I think it is fair tosay, has been an attempt to drive thatmessage across by increasing the generallevel of fines imposed for significant offences,particularly where they are committed bysubstantial farmers.’’

His Honour reiterated this view in a morerecent decision Hawkes Bay Regional Coun-cil v Stockade Pastoral Farms Ltd (20/03/09DC Napier CRI 2008-081-000096) wherehe stated that the level of fines imposed donot have ‘‘enough sting . . . to be really felt onthe offenders bottom line’’.

Several other Judges have echoed JudgeThompson’s comments. The Courts aresending a clear message that the current levelof fines are not having a sufficient deterrenteffect and consequently the quantum of thefines imposed will increase.

RMA AMENDMENT ACTThe Judges comments have been

reinforced by the government. The ResourceManagement (Simplifying and Streamlining)Amendment Act 2009 which came into forceon 1 October 2009 increased the level offines for breaches of the RMA, includingdairy effluent offences from $200,000.00 toa maximum fine of $300,000.00 for individ-uals and $600,000.00 for companies andother entities. It is likely given the sentimentexpressed by Judges over recent years of theneed to increase the level of fines in order fortheir to be a deterrent effect and the newmaximum levels set by the government thatwe can expect to see a significant jump in thelevel of fines imposed by the Courts forbreaches.

The likely increase in financial penaltiesmeans that it becomes even more critical forfarmers to ensure that they are vigilant inensuring that their farming operation iscarried out to minimise the potential forbreaches of the RMA and, in particular,unauthorised discharges.

If you are unclear on your responsibilitiesunder the Resource Management Act, orwant to discuss any Resource Managementissues, please contact one of our ResourceManagement team members.


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TC160210SP18GIBSON RURAL directors (from left) Blair Atkinson, Pat Gibson and BrentBird outside their base at 6/2 Livingstone Brothers Lane.

From page 8.‘‘We believe we have

superior sheds in terms ofcow flow, air flow, practi-cality and appearance.

‘‘Over the years we haveseen what works well andcreated plans to provide thebest options for farmers.’’

‘‘We usually start with afairly standard plan anddevelop it from there, work-ing closely with the client tomeet their speci f icrequirements. Of course wecan start a design fromscratch if needed.

‘‘As we have a large staffwe can cope with what everis put in front of us.’’

Mr Atkinson says theyendeavour to finish on timeand on budget.

‘‘It’s important we workin with the schedule on thefarm.’’

For this reason the crewscan be working seven days,putting in anything up to

60-70 hours each week, toget projects completed dur-ing their busy season.

Last year nine sheds werecompleted between Januaryand August. Two particularlysuccessful examples of theirwork were on NgahinapouriRoad and Jary Road.

Mr Atkinson says theNgahinapouri shed built forJim Van Der Poel was the‘complete package’.

‘‘We built a 54-baleMilfos shed, feed pad (80m x35m) and two silage pits(55m x 12.5m x 1.4m). Therotary shed was actually54-bale in a 60-bale shed toallow more room for thefarmer.’’

The Jary Road shed wasbuilt for Stephen Field.

‘‘You can see it from themain road - it’s an impressive50-bale in a shed whichfeatures a new ‘Protrack’drafting system. It’s probablythe most attractive shed we

have completed recently.’’Gibson Rural is a member

of the Master BuildersAssociation and NuplexApplicators Federation andworks closely with localsuppliers, particularly Qubik.

While milking sheds (bothrotary and herringbone) pro-vide the bulk of their work,other projects undertaken byGibson Rural staff includecalf sheds, feed pads, silagepits and extensions/al terat ions to exist ingstructures.

‘‘We do residential hous-ing at times too - peoplecome to us with their plansand we’re happy to accom-modate their requests.’’

The Gibson Rural officeat 6/2 Livingstone BrothersLane is open from 9am-5pmweekdays.

For further enquiries con-tact Mt Atkinson (ph 021383 689) or contact theoffice (ph 871 4986).

Sharemilkers in danger of being short-changedBY SUE HAGENSON

Sharemilkers will lose thousands ofdollars they are entitled to if farmowners fail to give them their fair

share of Fonterra’s payout according tothe manager of a national farmconsultancy group.

FarmWise’s Sue Hagenson sayschanges to the way Fonterra pays its dairyfarmers (late last year) mean Fonterrashareholders could take financial advan-tage of the new system at the expense ofsharemilkers.

‘‘The change opens potential for somefarmers to avoid paying their sharemilkersthe percentage of the dividend from thewet shares they are entitled to, assharemilkers do not hold Fonterra sharesand Fonterra is legally required to pay thedividend to the shareholder.

‘‘I am also concerned that there arefarm owners and sharemilkers alike, whowill simply do nothing due to a lack ofunderstanding about Fonterra’s capitalstructure changes.

‘‘Either way this will cause a whole lotof issues down the line.’’

Sue Hagenson said Fonterra’s currentforecasted payout of $6.05/kg MS, ismade up of, $5.70 milk price and $0.35dividend — which until December 2009was the value added component.

‘‘Right now sharemilkers underexisting agreements are legally entitled toreceive the same percentage of the payout

they were entitled to prior to the restruc-ture. This includes the dividend portion.

‘‘If the sharemilker does not receivetheir share of the dividend payment theirincome is effectively reduced by 6%.

‘‘This translates to an income loss of$17,500 for a 50:50 sharemilker on adairy farm producing 100,000 kg/MS. .’’

Sue Hagenson says the most equitableway for sharemilkers to get their entitledpercentage of the wet shares — whichdoes not include any additional shares ashareholder might own in dry shares — isfor the shareholder to ensure the share-milker receives the agreed percentage ofmilk income and apportion the relevantpercentage of the dividend to the share-milker.

‘‘Where a Fonterra shareholder fails tooffer, for example, a 50:50 sharemilker,his/her agreed percentage theSharemilking Agreement is effectively

more like a 40:60 as the sharemilkerwould incur 50% of costs while receivingless income.’’

Sue Hagenson says where thoseshareholders choose to do nothing and failto return the DRPA form to Fonterra, theshareholder will automatically receive100% of the dividend and she warns thiscould result in not only poor relationshipswith disgruntled sharemilkers, but poten-tially costly conciliation, arbitration orlegal proceedings.

Farm owners and sharemilkers signingup new Agreements need to be mindful ofthe new payment structure.

Although the sharemilker is not legallyentitled in a new Agreement to thedividend, as the payout/proceeds havenot been altered or modified, the share-holder in 50/50 situations needs toconsider the calibre of sharemilker theyare going to be attracting.


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Clarification on changein use adjustments

By Lance Fielder —associate in theTe Awamutu fi rm Gyde Wansbone.

You may or may not be awarethat if you change the use of anasset from being business use to

private use, then you are required toaccount for the GST on that asset asan output tax credit and pay GST onthis asset back to the Inland RevenueDepartment.

The most common occurrence ofthis for farmers is either changing amotor vehicle from being used forbusiness purposes to being used pri-vately, or converting bare land frombeing income generating (productiveland) into being used for residentialpurposes (erecting a private dwelling).

The value of this GST adjustmentthat must be returned for GST to theInland Revenue Department must becalculated using the lesser of theoriginal cost of the goods or services orthe open market value of the goods at

the deemed date of supply (date atwhich the asset was no longer used forbusiness purposes).

This change in use adjustment canbe relatively easy to calculate for motorvehicles as an accurate market valuecan be easily obtained and 12.5% ofthis value must then be returned backto the Inland Revenue Department.

The calculation for the change inuse adjustment for bare land has beensomewhat more difficult to calculateand the Inland Revenue Departmenthave recently clarified their stance onhow to calculate the change in useadjustment for bare land.

An apportionment of the originalcost price of the entire bare land mustbe made in order to determine the costof the land that is now being used forprivate purposes.

The pro-rata method of apportion-ment of cost will generally be appropri-ate to determine the change in useadjustment; however in circumstanceswhere the land being used for privatepurposes is worth substantially morethan the remainder of the productiveland a different method should be usedto calculate the change in use adjust-ment.

For example: A GST registeredperson buys a 40 hectare block of bareland for $450,000 (including GST) fortheir grazing operation. An input taxcredit has been claimed by this personof 1/9th of the purchase price($50,000). A few months later theydecide they would like to build their

house on this bare land, which will taketwo hectares (including driveway tohouse) out of the productive land area.

Using the pro rata method, in thenext GST return this person mustaccount for the sale of two hectares ofbare land.

The original cost of the 40 hectareswas $450,000, equating to $11,250per hectare, therefore $22,500 (twohectares at $11,250 per hectare) inGross Income needs to be returned.This adjustment equates to $2,500worth of GST to be paid back to theInland Revenue Department.

As mentioned above, the InlandRevenue Department have indicatedthat the pro rata method of attributingthe cost of bare land for a change inuse adjustment is not appropriate if theland being taken out of the productiveland area is worth substantially morethan the remainder of the productiveland.

Examples of this might include:beach front property, lake front prop-erty or property where a substantialamount of your bare land purchased iscovered in native bush.

I hope this article clarifies thechange in use adjustments requiredand how you should calculate the GSTimpact of this change in use, particu-larly for bare land. If you are in doubtas to what method you should use foryour change in use adjustment, orwhether or not you have a change inuse issue, your accountant will be ableto help you out.

Genetic breakthrough helping environment

A scientific breakthrough by scien-tists researching the microbes inthe stomach of cows and sheep

looks likely to lead to ways that reducegreenhouse gas emissions. The work ispart of the Pastoral Greenhouse GasResearch Consortium programme(PGgRc) led by the Crown research

Institute AgResearch.Cows, sheep and other ruminant

animals produce their methaneemissions because of microbes that livein their digestive systems, and thePGgRc funded team has successfullymapped the genetic information of oneof the microbes responsible.

This discovery will accelerate workaltering the methane generation of theorganism through vaccine and pharmo-medical interventions.

The findings were published in notedscience journal PLOS One, making thisground-breaking research available tothe wider scientific community.


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rural roundup - february 16th, 20102 rural roundup, tuesday, february 16, 2010 t corner churchill...

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