Drought widening essential to prevent a double-dip

Drought widening essential to prevent double-dip recession

Federated Farmers has welcomed a widening of drought measures to encompass the Bay of Plenty (Western Bay of Plenty, Rotorua, Kawerau, Opotiki, Whakatane and Tauranga), South Taranaki, parts of South Canterbury (Mackenzie, Waimate and Waitaki) and Otago (Central Otago and Dunedin City). It believes the measures will help reduce risk of a double-dip recession.

“The 2007-2008 drought cost the economy $2.8 billion and was a major recessionary factor, so the decision to widen drought programmes is essential,” says David Rose, Federated Farmers adverse events spokesperson.

“I must stress this is not ‘cash in hand’ to farmers, as some may think. If there is financial assistance then it is based upon means testing.

“I happen to know that in one major area the number of farmers receiving such assistance can be counted on less than the fingers of both hands.

“Instead, these drought programmes are really about advice that speeds recovery back to full production.

“The relevant Rural Support Trusts are now funded to bring in expertise to plan and advise farmers on everything from farm management and budgeting right through to counselling, given this is a fairly stressful time.

“Inland Revenue also gives farmers some latitude thereby reducing an administrative headache.

“Right now, a large swathe of New Zealand’s dairy herd and an increasing number of our beef and fibre farmers are being affected by what will soon become a ‘green drought’.

“Impending rains will come too late for effective pasture growth or renewal, so the drought’s effect will be felt into next season and possibly, the one beyond that. It will have an economic cost, but the advice that’s now on offer will speed up recovery.

“That’s why drought assistance is vital as the economy turns on its farmers, who generate 64 percent of everything we sell to the rest of the world. It’s why water storage infrastructure must now become a national priority too,” Mr Rose concluded.

Federated Farmers Drought Line
Federated Farmers provides a platform to match farmers with feed to sell, with those needing it via 0800 DROUGHT (0800 376 844). This is a free service for members as well as non-members of Federated Farmers. List’s are also linked in the Federation’s weekly e-newsletter, Friday Flash and can be accessed via www.fedfarm.org.nz.

ENDS

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