Based on a payment of $6.00 per kg of Milk Solids, a 114ha dairy property producing close to 1,000kgMS/ha will receive a total of $668,040 income from milk alone.
Unfortunately even at this payout a significant percentage of dairy farmers have expenses that exceed their incomes.
Following are 6 reasons why more money in farmers’ pockets is good for everyone.
- Land prices will reduce. Land prices tend to increase when profitability is under pressure as well established farmers look to increase their land holding in order to remain profitable. With lower land prices the ability of young farmers to purchase their own farms will again become an achievable dream.
- More money will circulate in rural areas. With extra money in farmers’ pockets a greater amount will be spent on the purchase of goods and services locally. Small local businesses will once again flourish along with a strong sense of community wellbeing.
- Additional people will be employed, as farmers look to spend increased time with their families, resulting in the repopulation of rural schools, villages, and townships. A sense of belonging and purpose can again permeate rural areas.
- More people on the land leads to a less hurried approach to daily activities. As a result there is time to observe, and with observation the corner stone of sound sustainable farming practise, innovation, will become common place.
- A less competitive, more co-operative environment will steadily evolve. Those of us farming prior to the sweeping changes that took place in 1988 and 89 recall a highly co-operative culture, not without fault, but one where there was time and a desire to work together on major issues.
- Increased tax will be paid. With higher income the tax take increases and when the system is perceived as fair and equitable tax is paid willingly. Everyone benefits as extra money is available for roading, local schools, sport, and cultural facilities.
And the steps necessary to having that money to spend are available now. An independent report by a reputable farm consultancy group showed that the Berryman property at Otakiri near Edgecumbe to be substantially better off financially compared to the District Average Dairy Farm on the Rangitaiki Plains.
The Berryman property produced 1,344kg of Milk Solids per hectare in the 2011-12 season, 38% higher than the ‘District Average’, and based on Overseer grew 19.3 tonne of pasture compared to 14.8 tonne.
By using a soil fertility programme based on CalciZest, and DoloZest containing Golden Bay Dolomite, the Berryman property used just 16kgN/ha compared to 96kgN/ha on the ‘District Average’.
New Zealand relies on farming so quality soil is at the base of our existence. It’s not possible to grow our income without nurturing the soil and the present focus on high stock numbers and excessive fertiliser nitrogen usage will in time be shown to be counterproductive.
The products and knowledge that allow farmers and growers to start growing and producing more at a lower cost are available from Eco-Logic Soil Improvement.