Many farmers are doing it tough but a new report shows they’re continuing to invest strongly in one of their greatest assets – their staff.
The 2024 Federated Farmers-Rabobank Farm Salaries Report shows that, since the 2022 survey, the average salary for a farm worker has increased by $7480 to $71,411.
Weighted average annual incomes across the 13 surveyed on-farm positions have grown by 13%.
“For some more senior roles, the average increases have been significantly higher,” Federated Farmers employment spokesperson Richard McIntyre says.
“For example, the average salary for a dairy herd manager is up 19% to $74,185. A sheep/beef farm manager is earning an average 22% more than two years ago ($88,381) and the average income for an arable farm manager is up 28% to $101,264.”
McIntyre says the survey underlines why jobs in agriculture are not only satisfying but offer a clear career pathway.
“Despite all the headwinds farmers have contended with since 2022 – Covid, severe weather events, production-suffocating red tape, inflation and roller-coaster commodity prices – farming incomes remain attractive and competitive.”
This is the 14th farm remuneration report Federated Farmers and Rabobank have produced, and it’s seen as a useful benchmarking tool for farmers.
The two organisations commissioned independent firm Research First to conduct the survey, carried out between 21 February and 5 March this year.
Findings use data from 529 farm employers covering nearly 1800 employees.
Weighted average salaries between 2022 and 2024 rose 11% to $70,923 in the dairy sector, 17% to $72,608 on sheep and beef farms, and 14% to $71,541 on arable farms.
“Statistics NZ data tells us that Labour Cost Index wage growth across all New Zealand sectors in the 24 months to December 31 last year was 11%, so our sector has been ahead of the game,” McIntrye says.
He suggests there are several factors behind this.
“With low unemployment rates over the last two years, I think it reflects the ongoing challenge of recruiting and retaining staff to work in remote areas.
“Two or three decades ago it wasn’t a huge deal to work way off somewhere with poor cellphone coverage because few people had them. Facebook wasn’t a thing.
“Now you need reasonable internet so you can do all that social media stuff, watch Netflix and so on.”
For many other reasons, most people like to live and work in or near towns, McIntyre says.
“So, farmers need to find those people who don’t mind a bit of isolation, enjoy the outdoor life, hunting, working with animals – all those things.
“When they find people like that, they want to keep them and they’ll reward them for good work.”
Sheep and beef farms tend to be a little more remote than dairy farms, which may help explain why that sector’s increases in weighted average salaries are slightly ahead, McIntyre says.
Another factor is at play in dairy, with the remuneration report noting the Accredited Employer Work Visa (AEWV), introduced mid-2022, has continued to impact pay rates for migrant workers in dairy.
“That’s because a condition of the visa is that employers must pay at least the median wage as a per-hour rate,” McIntyre says.
“This requirement has tended to ratchet up pay for domestic workers as employers have looked to provide pay parity with their international counterparts.”
Despite farm salary rises already being ahead of national averages, an added bonus for staff is the range of other benefits often provided.
“These can include such things as discounted accommodation, meat, firewood, phone and power allowances,” McIntyre says.
“For many farm employees, those extras can add up to several thousands of dollars a year.”
For example, the remuneration survey found the ‘total package value’ (TPV) for someone working in the sheep and beef sector is a weighted average of $76,296, nearly $3700 more than the salary.
The survey found mean TPV and salaries in dairy are slightly lower compared to sheep, beef and arable sectors, with senior dairy industry roles not seeing the large percentage increases seen in senior roles in the other industries.
One factor in this is that around 60% of all dairy employees are entry-level dairy farm assistants.
McIntyre says the lower comparative increases in salary and TPV for senior dairy roles may be because pay for these staff was higher than senior roles on sheep and beef farms in 2021/22, and the latter sector was to an extent “playing catch-up” in the last two years.
Average hours worked on farms are also well below the International Labour Organisation’s recommended maximum standard weekly total of 48 hours. The survey shows the average weekly hours worked by a permanent dairy staff member was 46.3. On a sheep and beef farm it was 44.4 hours, and on arable farms 46.3 hours.
Federated Farmers, New Zealand’s leading independent rural advocacy organisation, has established a news and insights partnership with AgriHQ, the country’s leading rural publisher, to give the farmers of New Zealand a more informed, united and stronger voice. Feds news and commentary appears each week in its own section of the Farmers Weekly print edition and online.
