Northland drought recovery package no magic bullet
Drought has been declared in Northland today and Agriculture Minister David Carter and a recovery package is now in place to aid affected farmers.However, Federated Farmers' regional president Denis Anderson said the package would provide little help for
Liam Baldwin
Wed, 20 Jan 2010
Drought has been declared in Northland today and Agriculture Minister David Carter and a recovery package is now in place to aid affected farmers.
However, Federated Farmers’ regional president Denis Anderson said the package would provide little help for most of the hundreds of affected farmers.
Mr Carter’s announcement today said drought relief measures offered the government included tax assitance for farmers under the income equalisation scheme, farm management advice, welfare support and funding for rural support trusts.
A record dry November and difficult conditions during spring led to poor pasture growth in many areas which have continued to dry out with a lack of rain, high winds and temperatures.
Mr Anderson said the drought conditions has led to a 20% drop in dairy production which was likely to increase to 30% or 40% over coming weeks.
Farmers were coping by buying in supplementary feed, particularly palm kernel extract, which was the cheapest.
In addition they were culling the poorest performing cows and looking ahead with hope that rain will soon fall.
Tax relief offered by the government was positive, Mr Anderson said, but because of a poor season during 2009, it was likely most farmers would not be facing large commitments to Inland Revenue currently.
He said most farmers would be hoping to get through January and then would look at making hard decisions about the next step.
Those decisions could include drying off herds for this season to reduce feed demand and then focus gearing up for the next season.
Liam Baldwin
Wed, 20 Jan 2010
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