Archive for the ‘Agriculture’ Category

Look at it this way Don

Sunday, July 11th, 2010

It seems I was way out of line to suggest that the Feds were OK with the ETS. They didn’t challenge the PM directly (anyone know why?) but at the very same conference, Feds Pres Don Nicolson (left) described the ETS as “a tax from the cradle to the grave”. In fact, it drove him to Obama-style oratary/poetry, with a Kiwi twist:

Its a tax on young families struggling to make ends meet

Its a tax on retirees who watch every penny they spend

Its a tax on students huddling aroung a single bar heater in a Dunedin flat

Its a tax on everybody from a newborn infant to a funeral home

The ETS is a tax from the cradle to the grave

I wish it was a tax. That would have given business much more certainty than having to guess what the carbon price will be, and would therefore have stimulated the making of business decisions. Instead, the effort that should have gone into figuring out how to respond has been diverted into rent-seeking lobbying for special treatment.

But even though its not a tax, the point of the ETS is still to change behaviour. The reality is that NZ signed up to the deal, and that as a consequence we have liabilities (an unpleasant surprise). Now we need to pass those liabilities down to those of us who generate them. Otherwise we will just make things very much worse.

This is a new reality, faced by all Kiwis irrespective of their proximity to cradles/graves. Denial won’t work.

Farmers (me included) need to take a good look at the systems being sold to us. Why have Waikato dairy farms been losing soil carbon at the rate of 700kg/ha (Doesburg, NZH, 9/7/10)? Is it just possible that farming methods that put more emphasis on organic/biological issues could actually be more efficient overall? How confident are we that the agricultural business models that have already devastated Nauru are not going to get us in the end?

Making Fonterra sustainable

Wednesday, June 30th, 2010

Its a big day for NZ’s dairy industry with (in person) voting on the 3rd and final step in Fonterra’s capital structure changes. I’ve already voted online so now I’m hoping that at least 75% of shareholders also agree that this is a good move.

Chairman Henry is being quoted as telling the physical meetings that the company could come under “acute pressure” if this move is not taken. I agree.

Today’s vote (if positive) will mean that farmers exiting the co-op, for example to supply a competitive dairy factory, will have to sell their Fonterra shares back to other farmers. The co-op won’t be standing ready to buy them. Among other things, this will give Fonterra permanent share capital for the first time ever.

It will make the co-op much more sustainable, financially at least. There is still a fair way to go in persuading farmers that its actually in their interests to be environmentally sustainable as well, but more on that later.

Update: 90% of farmers voted yes.

The Feds are alright?

Monday, June 28th, 2010

This news report caught me by surprise. John Key fronted up to the Federated Farmers annual conference, explained the rationale for the ETS and

was greeted politely and raised barely a ripple of anger. He was farewelled from the meeting with a standing ovation.

As a regular Straight Furrow reader, this surprised me.  Every week I read bleating & mooing from farmers about the ETS. And the Feds have until very recently been actively stoking these fires, along with ACT.

So how to read the warm reception for the PM that is visiting all this evil upon their homes, livelihoods and country? Did the Feds have no counter-arguments? Were they too polite to voice them? Or are they just resigned to the new reality?

Whatever. I support the ETS for agriculture. I hope the Feds get over themselves and focus on making NZ’s agriculture more sustainable. I especially hope the ETS helps us get the whole fertiliser/soil carbon nexus working properly and kick/manage our urea addiction.