Early Bird I Monday April 28th 2025

Drought relief payments start today, Southland farmers remain reserved despite strengthening local economy, and social media influences rising cottage cheese demand.

Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather!

 

Drought relief payments start today

Drought assistance payments begin today for farmers, as the effects of the long, dry summer continue to impact farm production. The Rural Assistance Payments, available until October 28, will support eligible farmers whose incomes have been severely affected by drought conditions, across Northland, Waikato, Taranaki, Horizons and the top of the South Island, with support available until spring when farm incomes are forecast to improve.

Despite the drought being technically over, its effects will spill over into next season. The dry conditions have already impacted this season's production through lower lamb carcass weights and reduced milk production on dairy farms, with the dry autumn likely to affect lambing percentages next spring as well.

Farmers in the affected regions have been adapting to increasingly extreme weather conditions, with many using feed crops to protect lamb growth rates during extended dry periods.

Rural Communities Minister Mark Patterson encourages affected farmers to contact their local Rural Support Trust to explore available assistance options and apply for the Rural Assistance Payments.

 

Fed Farmers cautiously welcomes farm plan reforms

Federated Farmers is welcoming the Government's proposed improvements to farm plans as a positive step towards a more practical and affordable solution for the rural sector, while emphasising the need to see more detail. The planned overhaul aims to cut unnecessary red tape, compliance costs, and consenting requirements that have burdened farmers in recent years.

Vice president Colin Hurst says a tailored farm planning system with a risk-based approach could be a game changer for farmers, potentially replacing expensive and uncertain resource consents and complex council rules.

One significant win for farmers is the Government's agreement to reduce the number of farms required to have a plan by raising the threshold from the previous administration's 20 hectares. Federated Farmers had advocated for a 50-hectare threshold as a more pragmatic approach.

Another practical improvement is confirmation that farmers won't need new plans when they already have existing industry plans achieving equivalent environmental outcomes. This eliminates unnecessary duplication and additional costs where farmers have already completed plans through dairy companies, meat processors or regional councils.

Questions remain however, about certification of farm plans, who will pay for compliance audits, and how security will be maintained under the revised system.

Southland farmers remain reserved despite strengthening local economy

Economic indicators are pointing to continued growth for Southland, but local farmers remain cautious about celebrating too soon. While Westpac economists report that Southland, Otago and Canterbury are the strongest performing regions in the country, farmers are prioritising debt reduction over increased spending.

Despite record Fonterra farmgate milk price forecasts between $9.50 and $10.50 per kilogram of milksolids this season, and beef and sheep farmers expected to earn $1.2 billion nationwide this year, profitability concerns persist in the rural sector.

Westpac's latest Regional Roundup shows retail spending in Southland has grown 3% over the past year, with business confidence picking up across the region. Many businesses are planning to increase capital spe