Federation brings big changes

COMBINED EFFORT: The federation joined forces with Pacifica Shipping, Hamburg Sud, Rural Support Trusts and ports to organise straw shipments to assist drought-stricken farmers.

Federated Farmers' policy team spent the year immersed in many issues affecting the rural community. They were dedicated, spending long hours attending working groups, hearings and appeals, acting with due diligence and resoluteness.

On average, the federation is actively involved on about 400 matters a year across all sectors - national, international and regional. By early this month the team had made submissions almost everywhere there is a member.

The extensive lobbying generally falls under the radar but has many successful outcomes, particularly in the provinces. It is rarely highlighted because as one issue gets resolved another arises.

Although the policy team rarely has time to sit back and celebrate its achievements, members were invited to discuss some of their more satisfying moments this year where their advocacy triumphed over bureaucracy, improving farmers' livelihoods.

General policy manager Nick Clark says good progress is being made, especially on the Government's policy towards fiscal responsibility. With a return to surplus on track, expected by 2015, and a concerted restraint in government spending, the future is looking better for farmers and the economy.

"Federated Farmers is very supportive of the steps the Government is taking," Clark says. "To get the core Crown spending down and reduced to about 30 per cent of the GDP was one of our wishes.

"When government spending is running rampant it means more tax for farmers with interest rates also likely to climb, putting more pressure on the exchange rate."

However, the Government's measured, cumulative approach towards reducing expenditure and debt is shrewd and undoubtedly will pay dividends. The process will stabilise monetary policy and ultimately help future generations.

Clark says the federation has been proactive in advocating support of the Public Finance (Fiscal Responsibility) Amendment Bill.

For many years the federation has campaigned on the annual Budget Policy Statement. This advocacy ensures the federation is not only prominent, but also keeps governments honest.

"We are one of the few key groups who regularly post submissions on the Budget Policy Statement. If we didn't, perhaps the Government would find it easier to keep increasing spending," he says.

Another area where the federation succeeded in improving farmers' coffers was ACC. The federation has long campaigned to get ACC to operate more efficiently and that is finally paying off.

Clark says ACC is in good financial condition after being in a big hole a few years ago. Since 2008 it has moved back to its core function as insurance, rather than as another addition to the welfare state. This focus and its strongly performing investment fund is helping reduce levies, with some big cuts recommended for next year.

On average, farmers can expect to see their levies cut by at least 15 per cent from April. Dairy and sheep farmers may possibly get a reduction of 17 to 21 per cent.

The federation hopes the Government will follow ACC recommendations on the levy adjustments. It is in the hands of the minister responsible for ACC, Judith Collins, with a decision expected shortly.

National policyThe national policy team achieved notable successes assisting farmers, particularly with fundamental services such as postal and transport.

Protecting Rural Post during a turbulent period of restructuring is a commendable result.

The intention to slash services threatens a vital resource for farmers.

The federation convinced the Government that Rural Post is a necessity and not expendable.

From July next year the postal service will be maintained at five days for most of the rural community.

Farmers can also look forward to lower compliance costs on the roads without compromising safety. Transport regulation reforms concerning agricultural vehicles, road user charges and vehicle licensing and inspection are welcomed by Federated Farmers.

In 2010, an agricultural transport review was instigated after the federation approached former Associate Transport Minister Nathan Guy with concerns over the complexity of the regulations.

The review was completed and implemented and the Government estimates the changes will save the agricultural sector $51 million during the next 25 years.

Federated Farmers has helped members deal with bureaucracy, for example the launch in November of an immigration package that is a practical all-in-one electronic document, which helps dairy farmers with the process of hiring migrant workers.

The past year has also heralded a brighter future for farmers and how they farm. Government reform of the Resource Management Act (RMA) is coming and the proposals have the backing of the federation. Regional policy manager Dr Paul Le Miere and his team have been unrelenting in pursuit of a better deal for farmers since they introduced the "farming six-pack" in 2008. It appears the Government is finally taking note.

Le Miere says many of the Federation's six-pack objectives were factored into the Government's vision for a more equitable and streamlined RMA process.

Regional policyIn the provinces the federation's policy skills came to the fore regularly. This challenging environment never deters, but rather inspires the policy team.

"It is a case of the little guy sticking up to the big guys," says senior policy adviser Nigel Billings. "A lot of councils in the country have no farmers on them so we have to sell ourselves and our situation. This requires effective advocacy.

"It defies reality really - we often have the odds stacked against us."

Some councils are more receptive than others towards finding solutions on issues that affect farmers.

In Taranaki, the New Plymouth District Council has ruled that the way in which farmers are protecting their significant natural areas is the most appropriate way forward.

This "don't fix what isn't broken" outcome is especially satisfying as the federation has long argued that farmers are the best guardians of their land.

By adopting this non-regulatory approach, the council is ensuring farmers remain on board. Above all it gives farmers more incentives to work productively with their local councils.

This ensures a winning outcome for the environment, council and landowners.

The federation was also active in minimising the impact transmission buffer zones have on farming activities.

Successful appeals at both ends of the country set a precedent and establish a favourable trend in how disputes with Transpower, landowners and district councils are settled. Transmission buffer zones and their effects on land use have been contained to the established industry code of practice despite Transpower's strong lobbying for increased controls.

In Southland, the federation's advocacy prevailed after a determined campaign to oppose Environment Southland's targeted rate differential on dairy farmers.

Federated Farmers' influence has led to successive annual decreases since its introduction in 2009, cumulating in an 11 per cent reduction this year.

District council planning on rural subdivision has kept the federation's regional policy team busy. Many councils seem unaware of how essential it is to have subdivision rules that allow enough flexibility to meet the "farming for the generations" needs of the rural community while retaining the use of productive soils.

The ability to subdivide a long association lot, and build extra homes for workers or retiring farmers, is important because it provides social wellbeing in dispersed communities, Le Miere says.

The federation is generally successful in convincing district councils of the need for greater flexibility. Recent examples in Matamata and Horowhenua demonstrate this.

Industry policyFederated Farmers maintained momentum in the industry sector, applying more influence and partnership among working groups focused on improving this aspect of New Zealand agriculture.

General manager of policy and advocacy Mark Ross says the federation was not only driving the agenda but was also playing a significant role in devising policy with respective industry groups. The Federation had been actively involved since 2007 with the government industry agreements.

This has resulted in a much more industry-aligned deed of agreement, which is being processed by Cabinet.

The Government's formulation of an 18-month FMD project is also welcome within the biosecurity framework.

Ross, who spent 11 years at MAF (now MPI), says the FMD prevention programme is a great initiative driven by the primary sector.

"We have got more to lose than most. As a major exporter of primary production, worth 15 per cent of our country's GDP, we must be prepared and able to respond to any possible future incursion."

The recent blackgrass incursion in the South Island provided a timely reminder to farmers and the industry sector on the importance of biosecurity.

The federation played a key role liaising with a government-appointed technical advisory group to provide information on what was a suitable response to prevent the problem spreading.