By Marcus Buddo, a sheep and beef farmer in Poukawa, is chair of the Hawke’s Bay Rural Advisory Group, HB District rural councillor for Kahuranaki Ward and a Hastings Rural Community board member.
You don’t have to go far to find a sheep and beef farmer doing it tough in Hawke’s Bay right now.
Nearly 18 months down the track, many are still in the thick of rebuilding from the devastation of Cyclone Gabrielle and the costs they face to do this are, in many cases, proving untenable.
As a region we must find ways to financially back our farmers who are at risk of being left behind on their damaged farms.
I know of a summer dry hill country couple in the Mangaone River Catchment who face a price tag of in excess of $400k to reinstate their 370 hectare property. This includes over $130k alone in repairing fences, $50k replacing one half of the farm stock drinking water supply and over $52k to date reinstating tracks and culverts, rebuilding dams, and removing slips.
Insurance cover for this farm totalled around $100k.
These people were proactive from the outset in seeking external funding opportunities, a pursuit that culminated in $30k or a mere 10% of their total uninsurable losses.
This leaves close to $300k of repair work they need to fund, which means they are only doing what is critical, such as temporary fencing repairs (because not doing so leads to more financial losses).
Serious consideration is being given to the long-term viability of their farming model, and partially or even fully planting the land in pine trees is being investigated as an option.
The issues facing the region’s farmers extend beyond Cyclone Gabrielle; the pressures are all around them. Take predominantly sheep farms, for example. Last year lambs were fetching $100-$120/head, this year prices have dropped to $60-$70/head, which represents a 40-50% decrease.
It continues to cost farmers more to shear sheep than they could ever make back from the wool, but not doing so poses an animal health issue so it is not a cost they can cut.
Worm resistance is rife, and the ground moisture has been severely low, albeit helped somewhat by the recent rain. The Hawke’s Bay Farming for Resilience Report released by the Ministry for Primary Industries indicates pasture growth for April was down 10% on average as farms approached winter. The same report points out the predicted weighted average farm loss in Hawke’s Bay is sitting at $23.70/ha.
While revenue is down in almost every area, inflation continues to hit the sector hard with prices on inputs like interest rates, fertiliser, fuel and wages continuously soaring.
The region’s pastoral sector is more productive than ever before, yet is going backwards. Profitability outlook for many is grim.
The farmers I am talking to are doing all the right things.
They aren’t new to challenges of weather, nor are they new to the uphill battle of rising costs and weak farmgate prices. But it’s the unexpected burden of costs brought about by Cyclone Gabrielle, on top of these factors, that is really pushing farms to their limit.
It is rough out there and these farmers need support. They are trying to do the right thing by adapting their business models wherever they can but in more cases than I can count this is simply not enough. There are issues at play that only money can solve, such as paying for digger drivers and fencers.
If there is any financial assistance available, be it from local or central government, now is the time to direct this to our sheep and beef farmers. We are talking about hardworking Kiwi farmers – important contributors to our Hawke’s Bay export-driven economy.
Right now, the future outlook of our region’s pastural farms is at stake and the bottom line is that financial support is critical to turning this around.
