An incoming government should also focus on repaying debt and reducing tax rates. Current tax policy is favoured but any changes to the Emissions Trading Scheme or new taxes such as capital gains, land tax, gift duty and water taxes are strongly opposed.
All aforementioned taxes would have detrimental effect on the agricultural sector and place the wider economy at risk. Another crucial element to the economy is monetary policy.
Federated Farmers supports the Reserve Bank Act, its operational independence from political interference, and its focus on keeping inflation down.
"Although the exchange rate is currently overvalued and a headwind for the tradeable sector, the monetary policy framework remains sound and consistent with world's best practice," Dr Rolleston said. That said the Federation would like to see the Bank explore additional tools to supplement the Official Cash Rate (OCR) and take pressure off the
exchange rate. After four increases in the OCR this year the Federation does not envisage any further increases for the remainder of the year.
But we can't take this for granted and to ensure this, all government policies need to help rather than hinder. "This means fiscal responsibility, tighter control of spending and wider policies around regulation. Exporters, whether ICT, tourism or the primary industries, need policies to assist rather than impede productivity and competitiveness," Dr Rolleston said.
Trade links offer great potential
What is often overlooked in the corridors of power is that 60 per cent of merchandise exports originate from the agricultural sector with forestry and fishing included, it pushes overall exports from the primary sector above 70 per cent.
Agricultural exports contributed $29 billion for year ended December 2013, though this will come under pressure in the short term due to lower dairy prices this year.
That figure is likely to grow in the future as food demand from an increasing global population intensifies, ensuring our primary sector exports remain the bedrock of our economy. Still, those exports will not realise their potential without improvements in trade liberalisation, promotion and market presence. The Federation would like to see a concerted focus on reducing current barriers to exporting.
For example, Beef +Lamb NZ recently estimated tariffs on New Zealand farms' red meat exports at $19,000 for each farm. "A comprehensive, multilateral agreement through the World Trade Organisation is favoured as the best way towards establishing a cohesive trade liberalisation policy," Dr Rolleston said. The negotiation of Free Trade Agreements (FTAs) with trading partners was vital with current focus on expanding the Trans-Pacific Partnership (TPP) agreement.
While FTAs are pivotal to opening trade barriers the Federation would like to see greater input from the relevant New Zealand agencies to provide assurances to overseas governments and consumers.
"This in-market presence would be beneficial in averting a crisis of confidence among emerging markets, as was the case with last year's botulism scare and meat exports stoppage," said Dr Rolleston.
Creating closer ties between government and businesses would maximise promotion and build markets to optimise existing and future trade links.
Federated Farmers recommends that a future government should phase out the remaining tariffs. This would reduce the costs of imported goods for the benefit of consumers and farmers. Above all, it would demonstrate New Zealand's commitment to free trade.
Research & science essential
While New Zealand agriculture has traditionally led the way applying science and research for improving productivity and profitability, there is strong competition arising from developing countries that are becoming more efficient and productive at a lower cost.
Coming from a scientific background, Dr Rolleston is passionate about research and science and the need for developing technologies, crops, feed and animals to keep New Zealand at the forefront as a world class economy.
As it stands, we have one of the lowest investments in research and development at just 1.2 per cent of GDP.
And yet, the aforementioned 70 per cent of our exports attributed to agriculture owes a great deal to science.
Dr Rolleston said: "The recent changes leading to am ore strategic and co- ordinated approach with science is very encouraging. We are as mall country with limited resources and we cannot afford to be duplicating our capabilities."
Developments such as the announcement of the Lincoln Hub and FoodHQ at Massey University where research institutions are getting together in a collaborative and strategic way are positive.
Providing more governance and strategic autonomy to the Crown Re- search Institutes (CRIs) through the implementation of the CRI taskforce recommendations has also been positive. Primary sector CRIs can now focus on getting the job done meeting the strategic needs of farmers. "Our institutes are leading the way in food science, animal productivity, biosecurity and sustainability," he said.
Their success was pivotal to the primary sector and wider economy. If a future government is serious about economic growth and environmental protection it must invest and support the science community and the Federation does not want to see this investment put at risk. "Our recommendation is for the government to introduce policies which encourage greater public and industry spending towards science research and development, particularly in the primary sector.
Technology developments too can benefit from the scale that agriculture provides. Ideally we like to see funding rise above the OECD average and have that spending undertaken in an effective manner," he said.
Climate Change, Water
The old bugbear of climate change and its potential impact is certain to remain contentious in this election and after. Farmers, businesses and households already bear the burden with the Emissions Trading Scheme (ETS) which applies carbon costs to all transport, fuel and electricity utilised by New Zealanders. The carbon footprint of animal protein produced by New Zealand farmers has decreased by 1.3 per cent per annum as farm productivity continues to improve through the application of new innovations.
It's ironic too that New Zealand maintains its reputation as one of the world's most effective carbon efficient food producers. Farmers are enhancing their efficiency and their reputation through investment in initiatives such as the Pastoral Greenhouse Gas Research Consortium and the Global Research Alliance.
"Farmers' confidence in and adoption of scientific solutions safeguards our future ability to remain competitive as a global agricultural global producer. "But more government research in- vestment is needed, to capture the technology and real value at the farm gate", said the Federation's national vice president and climate change spokesman Anders Crofoot. Recent droughts and adverse weather events attributed to climate change have highlighted the primary sector's vulnerability in this area.
Federated Farmers recommends a future government prioritises the importance of water storage. While New Zealand enjoys plentiful rainfall it rarely falls evenly with 98 per cent flowing out to sea.
Irrigation and water storage initiatives will be essential to maintain farm production, improve reliability, increase community resilience and mitigate droughts in susceptible regions.
"Without acogent climate change strategy, which includes investment in rural water infrastructure, the primary sector faces an uncertain future particularly in provinces which are reliant on farming as their economic lifeline," said Mr Crofoot.
Water is the lifeblood of farming and food production. It is also central to the interests and concerns of other sector groups; and tensions around water quantity and quality issues have been difficult in many regions, too often stalling in litigious proceedings ill-designed to deliver optimal outcomes.
To break this impasse, the Federation and other industry stakeholders have remained committed to finding solutions by means of collaboration at national, regional and catchment levels. Federated Farmers is working closely with allied primary sector organisations to support the development and uptake of initiatives to improve the efficiency of resource use and to minimise run-off and leaching from farmland.
The National Policy Statement for Freshwater Management, the National Objectives Framework and the Dairying and Clean Streams Accord provide valuable guidance for farmers committed to cleaning up waterways.
"River quality reports are already showing the benefit of a change in farmers' attitude towards environmental steward- ship," said Mr Crofoot.
However, the Federation argues that a thorough cost benefit analysis of national and regional objectives towards water quality is required to ensure commitments are fully informed and investments are effectively targeted. Successful management of our rivers will require further investment with scientific focus on the relationship between soil and water.
The Federation is confident advancement in this area will eventually establish acceptable outcomes for all.
We support national guidelines for safeguarding indigenous species and for secondary contact recreation; with bottom lines or exceptions applied equally to urban and rural waterways," said Mr Crofoot.
Federated Farmers supports more collaborative ways of working together at national, regional and catchment levels; and strongly advocates for investment in infrastructure and innovation to deliver win-win outcomes.
The Federation acknowledges that farming has an environmental impact but, critically, farmers are part of the solution and we must not forget that despite 'intensification,' our water quality is generally stable and in world-terms, is very good.
Yet there is a weakness in the way Overseer, a nutrient management tool, has been misapplied in policy as being some definitive source of truth. Federated Farmers urges public investment to properly calibrate Overseer.
Over the last decade, significant progress has been made across all farming sectors: in addition to major investments in research and extension activities, a number of sectors have implemented audited self- management systems.
Federated Farmers emphasises that industry leadership, rather than regulation by arbitrary numbers, will deliver water-efficient and nutrient-efficient farming systems. The Federation rejects resource taxes on farming. These are at best very poorly targeted and applied, and at worst grossly inequitable and ineffective.
Protecting our natural vegetation
Farmers are better qualified than most in their understanding of the environment on farm, and the need to protect our indigenous biodiversity for future generations.
While strategies towards protecting our unique biodiversity has been traditionally focused around "protection' via covenanting and controlling land use, the Federation considers more resources and attention should be focused on preventing and controlling invasive pests.
"The Federation is open to improving and implementing initiatives which enhance our biodiversity but methods must be flexible to accommodate the needs of farmers.
Flexibility is best achieved via non-regulatory regimes," said Dr Rolleston. Federated Farmers is encouraged to see that government is willing to play its part in pest control through the NZ biodiversity fund, supporting purchase for pest control equipment and rates relief where action is taken.
In addition, further government funding for biodiversity agency work carried out by the QEII Trust and Landcare Trust is recommended.
As 'guardians of the land' farmers respect the resources it provides and remain committed to sustainable management principles and method.
Optimal outcomes are achieved when there is goodwill and investment in partnerships between landowners, NGO's and government departments. Only through this approach can indigenous biodiversity objectives be addressed to meet the wishes of all New Zealanders.
Protecting our borders
Being a country reliant on agriculture and biosecurity, effective systems are a necessity to protect our economy.
A pest incursion or disease such as Foot and Mouth (FMD) could have catastrophic consequences for New Zealand severely impacting on our economic recovery and competitiveness.
Biosecurity is a major logistical operation which goes beyond protecting our borders. Federated Farmers believes in an efficient management strategy where government works closely with the primary industry sector.
The Federation places particular emphasis on managing threats before they reach our shores. All containers, food products and machinery should be assessed for risk and the appropriate action taken. Tourists should be suitably educated on biosecurity measures and be fined if advisories are ignored.
Dr Rolleston views the establishment of Government Industry Agreements (GIAs) as a positive step providing better communication between agricultural producers and government agencies. He said surveillance and response systems can be enhanced by involving farmers in decision-making towards risks and action.
Pest management strategies need to be kept current in the modern world and make the best use of the tools available to us. Public outrage, generated by lobby groups, risks making safe and effective pest management tools unavailable. The Federation has a critical role in these public conversations and needs to be guided by the scientific facts.
Health & Safety
Farmers will be aware of the recent establishment of WorkSafe New Zealand as a standalone body dedicated to health and safety in the workplace. WorkSafe officials have since been deployed on- farm for inspections.
Presently, there are around 120,000 people involved in agriculture businesses and farms- (self-employed included) with employees accounting for about 80,000.
The Federation recognises the significant financial and social implications associated with fatalities and injuries- the toll on farming businesses and families can be substantial. While accidents on farm should not be considered 'as part of the job', there is concern that new health and safety measures may prove impractical for the daily realities of farming. Compliance and enforcement are required and should be implemented, but only after all other options have been exhausted.
The Federation believes any approach which is not based on evidence is counterproductive and not likely to succeed. The Federation instead supports better information in this area to inform and educate as the best way to encourage safer practices and change old-school habits.
Above all, any legislation and supporting regulations should be fit for purpose for farming with particular issues around obligations on visitors and contractors clarified.
Growth dependent on primary industries
Federated Farmers is committed to revitalising the meat and fibre industry returning it to a strong, sustainable and profitable industry. An increasing Asian demand for our red meat is likely to push prices up for beef and lamb produce in the future.
While consistency in pricing and a willingness to adopt new business practices can move the industry forward. The future challenge is to have ad ual purpose animal and good stable income from both wool and meat.
"This will only be possible with a supportive regulatory environment which facilitates rather than restricts sustainable growth," Mr Crofoot said.
The wool industry is poised for a potential welcome change in direction with farmers voting on a levy referendum in October. Unlike its primary sector counterparts, the industry has no industry good body to carry out those functions best achieved through collective action such as research and development.
Since the levy ceased in 2009 the wool industry has effectively relinquished millions of dollars worth of Government funding and research.
"If growers show enough support, government are more likely to take action in supporting investments in areas specific to the wool industry," said Federation board member Rick Powdrell.
The dairy industry remains a strong, progressive sector proven by its outstanding performance in recent years with exports worth an estimated $17.6 billion to the nation's economy.
Still, there is room for improvement, and innovation complemented by science holds the key to the sector's continued success. Recent focus on environmental values and outcomes: the Sustainable Dairying: Water Accord for one is welcomed and provides a template for further initiatives and improvements.
Another achiever albeit silent is the arable industry. It contributes approximately $5 billion dollars to the New Zealand economy.
Like other sectors it has its challenges around pricing and optimising the flow of supplementary stock feed. The bees industry similarly has a low profile but like its arable counterpart plays a significant role in the nation's economic fortunes.
Much rests on the protection of bees. Without them farm pollination is less effective, this has grave ramifications for crop performance and ultimately our economically lucrative agricultural and horticultural sectors.
A future government should heed the warning and be ready to recognise the value of the bee industry: "Biosecurity controls should be scientifically justifiable.
We believe it's in all farmers' interests that we do not use arbitrary biosecurity measures as an on-tariff barrier," Dr Rolleston said. Whoever assumes power after the election can be assured Federated Farmers will be a hive of activity keeping them honest.
The rural community and farmers can take comfort and strength, knowing that they have a committed advocate ready to take any future government to task on policies which affect the primary sector and ultimately the economy.
The manifesto is available at www.fedfarm.org.nz
