BUSHY DOWNSBUSHY DOWNS HEREFORDS...2009/09/15 · Hauturu possums T rapping, ground-based bait stations and aeri-ally applied baits have all been used in a highly successful possum

Supplement to Te Awamutu Courier, Tuesday, September 15, 2009Supplement to Te Awamutu Courier, Tuesday, September 15, 2009

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Ag day art competition

TC150909RR02CHILDREN who enter the LIC artcompetition have a good chanceof winning a lamb (or calf)feeding bottle from Stallion Pro-ducts. The top 20 entries in eachcategory will receive one, whileoverall section winners receivean LIC prize pack.

LAST YEAR’S WINNING ENTRY

An art competition has beenlaunched for rural children whoparticipate in agricultural days.

The competition is a key com-ponent of a website designed specific-ally to help children select, rear andtrain their calves and lambs for calfclub or agricultural days.

The site (www.calfclub.co.nz) wasdeveloped by dairy farmer co-operative, Livestock Improvement(LIC), which has written to all ruralschools in New Zealand, inviting theirstudents to take part in the competi-tion.

LIC Communications Manager,Clare Bayly, says the art competitionhas proved very popular with childrenin past years.

"Calf club is one of the fewremaining community gatheringpoints in rural communities these daysand kids put a lot of time and effort intoselecting their pets, let alone rearingand training them.

‘‘If participation in the competitionover recent years has been anyindication, they relish the opportunityto capture their pets’ essence in a workof art."

Students are invited to make hand-made pictures of their pets (using anytechnique or materials they wish) andsend them into LIC.

Judging will be conducted by agecategory (5-7 years, 8-10 years and11-13 years) with the winner of eachcategory receiving a special gift packfrom LIC.

The pack contains a halter and leadrope (for either a lamb or a calf) alongwith a range of items which will appealto children - drink bottle, sports ball,cap etc.

In addition, the top 20 artists,across all categories, each receive aspecial Stallion Products’ calf or lambfeeding bottle to make pet feedingeasy.

The bottles have been kindly don-ated by Stallion Plastics of PalmerstonNorth, who will courier the bottles tothe winners.

Ms Bayly says that in the past theyhave received "hundreds of entries and

it’s no easy task deciding a winner - butwe’ve made that easy by inviting allLIC staff at our Newstead site tobecome judges for the day.

‘‘All paintings are displayed, eachwith a voting slip, so that - at the end ofthe day - we get an outcome which isdemocratic.

‘‘Our staff really enjoy beinginvolved in the judging and get quiteenthusiastic about which artwork, theythink, should win.’’

All entries must be received by LICby Monday September 28.

Winners, and their schools, will beannounced on October 12.

RURAL ROUNDUP, TUESDAY, SEPTEMBER 15, 2009 3

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Fonterra team in clean up mode

TC150909RR03CLEAN UP team from Fonterra Te Awamutu made short work of painting gates, fittings and furniture atTe awamutu Rose Gardens.

Te Awamutu’s Fonterra set the standard for thisyear’s Keep New Zealand Beautiful Clean UpWeek when they gave the Rose gardens a

make-over.Environmental team leader Sarah Pond says

Fonterra like to demonstrate their communityconsciousness by being involved in a number ofcommunity projects, including taking part in theannual Keep New Zealand Beautiful Clean Up Week.

Previously that has involved staff picking up litterin and around the district, but this year Ms Pond waslooking for a new project.

As a member of Te Awamutu CommunityBoard’s new Te Awamutu Reserves and LandscapeCommittee, she raised the question at the inauguralmeeting.

Community Board chairman, and committeemember, Dean Taylor had just completed outliningplans for a 40th birthday event for Te Awamutu RoseGardens.

He said he was hoping to arrange some physicalimprovements to the amenities in the park, althoughbudgets were tight.

The discussion progressed with Waipa DistrictCouncil asset manager recreation Max Ward, and itwas agreed it would be a suitable project.

Last week the team arrived equipped withscrapers, stirrers, paint and brushes and made shortwork of improving the park’s appearance by colourcoordinating the gates, fittings and furniture.

Over the day 15 volunteer staff members from thepowder plants and support services assistedwith the project.

Ms Pond says there isa good buy-in fromstaff and manage-ment for com-munity projects,and everyonewho took part inpainting at theRose Gardensenjoyed the day andfelt positive aboutbeing part of the pro-ject.

Ms Pond says suchprojects are a big focusfor Fonterra Te Awa-mutu and form animportant part of thesite’s ‘Vision’.

Fonterra Te Awamutu

support a number ofinitiatives with localschools and com-munity groupsincluding educa-

tional worm farms, a plant growing unit, scienceawards and riparian planting.

Ms Pond is a member of the Lower MangapikoStream Care Group and has helped developed theirvision for the section of the stream within the town

boundary.As part of the forthcoming planting day at

Montefiore Reserve on Wednesday, September 23Fonterra, St Patrick’s and Te Awamutu College areeach contributing one-third of the seedlings.


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Operation targetsHauturu possumsTrapping, ground-

based baitstations and aeri-

ally applied baits haveall been used in a highlysuccessful possum con-trol operation overmore than 17,000hectares at Hauturu.

The work in steepand rugged native bush,and farmland areas, ofthe Hauturu-Awaroapriority possum controlarea (PPCA) wasfunded by EnvironmentWaikato and theDepartment of Con-servation, and wascarried out by EcoFX Ltd. The area is a PPCAbecause of its vast stands of native bush,which support indigenous bird and animallife.

Local landowner Fiona Scott, a memberof the steering group which oversaw thework, said: ‘‘The operation was carried out ina very professional way — the results reflectthis.’’

Environment Waikato has been workingalongside landowners in the area since 1998to control possums.

Half of the area is in private ownershipand the other half administered by DoC. Inthe past, 1080 has been used to successfullycontrol possums on the DoC-administeredland and some private land. Other farmlandhas previously been controlled using ground-based methods and was largely carried out bylandowners, who had problems getting pestnumbers down to the required level.

A change to EW’s possum control policiesin 2007-08 meant that the council wouldfund the project from rates and carry outpossum control on behalf of landownerswithin PPCAs. This meant that control on theDoC and private land in the Hauturu-Awaroacould be carried out at the same time thisyear.

EcoFX Ltd used helicopters to apply baitsover about 8800 hectares of DOC andprivate land, while the remaining 8725

hectares of private landwas treated using baitstations filled withtoxins such asbrodifacoum andcholecalciferol in con-junct ion withencapsulated cyanide.Some trapping wasalso used. All work wascarried out with noincidents or contro-versy over 1080 whichreflects the strong levelof community support,and the effective con-sultation undertaken byEW and EcoFX Ltd.

Subsequent moni-toring, which measured the number ofpossums caught in traps, showed EcoFX hadexceeded their performance targets, achiev-ing results of:

· 0.36% residual trap catch (RTC) in theaerial operation (this equates to four possumscaught from over 1100 trap nights)

· 2.06% RTC for the ground controloperation (or 14 possums caught from 690trap nights).

DoC spokesman Dave Smith said theresults were good news for native trees andanimal life.

‘‘The monitoring results after the aerialoperation equated to only four possumsbeing caught in more than 1000 trap nights.That’s great news for trees and bird nests inparticular.

‘‘On top of that, DoC has recently takenmore than 3000 feral goats out of the area.Goats can be particularly damaging to arange of palatable plants on the forest floor.’’

EW project manager Brett Bailey said theoperation had clearly delivered good resultsfor the investment made over the last decade.

‘‘The work we have done around Pirongiaand west of Otorohanga is about supportinga key area for native birds and trees in ourregion. Controlling pests such as possums inthese parts of the Waikato makes a bigcontribution to protecting our natural heri-tage in the region.’’


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Students seek green, green grass of home

TC150909RR3BTE AWAMUTU College students Lydia Barker and Holly Flay (right) with their project‘Dust Up’ which won two awards at the Waikato Science Fair.

TC150909RR3ADROUGHT ravaged farms (such as the Flay property above) provided the inspiration foran award winning Waikato Science Fair project.

Sitting on lush green grass,on a fine spring day,couldn’t be further away

from the drought conditions suf-fered by the region last year.

But it was that weather patternwhich prompted Holly Flay andLydia Barker to create an awardwinning entry for the 30th annualWaikato Regional Science &Technology Fair.

The inspiration for Te Awa-mutu College Year 9 studentsactually came from a photo of theFlay farm.

‘‘Last year the Waikato suf-fered the most severe drought andthe driest summer since recordsbegan over 100 years ago.

‘‘Low rainfall, extremely drysoils, falling river levels, strongwinds and almost record hightemperatures contributed to thedrought.

‘‘There was a lack of water andgrass to feed stock as well asresources to keep the animalshealthy were getting moreexpensive.

‘‘We could see that every timeour neighbours ploughed theirland, their top soil would erodeand drift onto our farm because ofthe strong, dry winds.

‘‘We also noticed that at theend of the drought there wassome heavy rain and we thoughtsome of the soil on our hilly farms

may have been washed away.‘‘So we thought if there was

another drought it would be goodto know whether ploughing afarm - or not ploughing - would bebetter to keep the soil moist andcreate less erosion.

‘‘If farmers are informed ofthis it may make it easier tomaintain and then recover farmfertility and pasture cover at theend of a drought.

‘‘Since we both live on farmswe decided to test this.’’

The girls used three tests: a soilmoisture test , a soil runoff testand a wind erosion test.

Their hypothesis was thatnon-ploughed fields would fare

best in the tests.‘‘This is because for the soil

moisture test we think it will loseless moisture because it is lessexposed to the sun than theploughed field would be.

‘‘For the surface run-off testwe thought the non-ploughedfield would create less surfacerunoff and in the wind erosion testwe felt the non-ploughed soilwould deteriorate more slowlybecause it is more compact.

‘‘In each case our resultsshowed that our hypothesis wascorrect.

‘‘While ploughing and non-ploughing both have effects onthe land’s condition, it is non-

ploughing that has more positiveeffects during a drought.

‘‘The soil stays more moistbecause it is less exposed tosunlight, creates less erosion as itis more compact and the windwould be less able to erode thesoil.’’

Holly and Lydia spent severalweeks preparing their ScienceFair entry - working after schooland weekends to test theirtheories, compile their results andcreate the boards with a clearoutline of their project.

Judges were clearly impressedwith the students work.

They placed them first in theNIWA sponsored Year 9-10 Liv-

ing World section and theyreceived a special EnvironmentWaikato Award.

They received $60 each foreach of their awards.

Holly and Lydia say it was a‘buzz’ to realise they had wonwhen the results were beingannounced.

‘‘They call them out in reverseorder - so highly commendedcomes first and as each place wasannounced we got more excited.When second was called out and itwasn’t us we knew we had won,which was pretty amazing.

‘‘It was awesome fun - andwe’re going to do it all again nextyear!’’


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Manuka honey breakthroughNew research on New

Zealand’s world-famousantibacterial manuka

honey has unveiled another ofits secrets.

Watson and Son, a majorNew Zealand producer ofmanuka honey, in collaborationwith Professor Peter Molan ofWaikato University’s HoneyResearch Unit, has com-missioned research by aspecialist research laboratory inSingapore, which shows that aspecial molecule acts to aug-ment the antibacterial activityof methylglyoxal in the honey— a process known as synergy.

The unique type ofantibacterial activity in manukahoney was discovered inresearch at the University ofWaikato in 1982. Evidenceshows manuka’s specia lantibacterial properties areeffective at healing wounds, butresearch also shows that thisactivity is present in only somemanuka honeys.

Last year, Waikato Univers-ity Associate Professor MerilynManley-Harris of the Chemistry Depart-ment, showed that methylglyoxal wasresponsible for the antibacterial activityin manuka honey.

However Prof Molan has longmaintained there is also a synergy atwork in the honey and last October,New Zealand beekeeper-chemist DenisWatson commissioned a specialistresearch laboratory in Singapore toinvestigate several active fractions inmanuka honey. Mr Watson is one ofNew Zealand’s largest manuka pro-ducers. In partnership with iwi groups inthe Far North he has more than 15,000beehives in manuka plantations aroundNew Zealand.

Dr Manley-Harris and Prof Molansay they are delighted companies aretaking the initiative to commissionresearch of this calibre.

The results have proven the exist-ence of a formerly secret synergist: aspecial molecule that combines with the

methylglyoxal molecule and otherfractions in the honey to create the verypowerful antibacterial activity the honeyis world famous for. The discovery isalso the key to understanding why theclinically proven antibacterial activity isso effective and why internationalresearch to date has shown that bacteriafail to develop the resistance that isinevitable with conventional antibiotics.

Research is now underway in aspecial project between WaikatoUniversity’s Honey Research Unit andWatson and Son to confirm the mode ofaction of the synergist and to furtherunderstand its interaction with otherfractions including methylglyoxal. Thislatest research will provide the medicalindustry with a full scientific understand-ing of the antibacterial properties ofmanuka.

This research has huge relevance tothe vitally important active manukahoney industry, says Prof Molan.

‘‘The industry is now worthin excess of $100 million inexport earnings, but not allmanuka honeys are equal andthe way to test potency hasbeen an issue for some time,’’he says.

‘‘My original assay uses asimple test method ofcomparing the bacterial kill-zone of a honey sample to thekill-zone of a standard antisep-tic (in this case phenol). For avariety of reasons this can’t beperfect and is open to inter-pretation and a margin of error.The ideal objective is to have asimple analytical chemical testthat can be carried out by anylab anywhere in the world. Butsuch a test isn’t possible untilwe know what we’re trying tomeasure. Discovering thesynergist was the key,’’ ProfMolan says.

‘‘Our work now includesdeveloping an algorithm to findthe strength of a honey’santibacterial activity by measur-ing the level of the synergist andthe level of methylglyoxal pre-

sent. It will then be possible to veryprecisely determine the non-peroxideactivity of manuka honey (the’originalmanuka activity’) by chemical analysis.’’

Meanwhile, WaikatoLink, theresearch commercialisation division ofthe University of Waikato, will launch anew global consumer standard formanuka honey later this month. Thestandard will give consumers completeassurance as to what they’re buying andwill use Prof Molan’s name, saysWaikatoLink Commercial ManagerFraser Smith.

‘‘Professor Molan is acknowledgedas the discoverer of active manukahoney. He was awarded the MBE for hiswork and is arguably the most publishedhoney scientist in the world. Consumersknow and respect him and his work.Putting his name on the standard and onthe jar makes sense and givesconsumers surety about what they’regetting’’, Mr Smith says.


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Life on the farm with Ross SuttonLife on the farm with Ross Sutton

TC150909RR09SILAGE eating sheep.

All’s right in the world...

The winter is thankfully nearing itsend. Even though the silage hasrun out, the stock are in good

condit ion and with warmertemperatures the grass is definitelygrowing. August’s rainfall was 186mls.What a thunder storm and lightningshow we had on August 25 and a goodstorm to top it off on the last day of themonth a well.

PASTURE CLEANThis month we had a contractor in

to spray one of our largest paddockswith Baton which is a weed chemical. Acontractor was necessary as I do nothave a tractor or boom attachment formy farm bike. We haven’t had the bestpasture for a couple of years and we

targeted dandylion and plantain. After afew days we could notice the result.There are literally thousands of smallplants with turned up leaves. Hopefullynew grass will come through in thespring.

CALVESThis time last year we were in the

early throes of rearing calves which wehad intended to do again. However theprice for beef calves has doubled at thesales and we have not taken the risk.For farmers with a large amount of landwho will rear them and take them on tofatten, they will get their money back.However, for the likes of us who wish torear them short-term and sell them asweaners the initial cost is not

warranted.SHEEP

We only have four ewes at thepresent time. We had to kill the ram andan old ewe due to facial eczema. Whilethey have had plenty of grass to nibbleduring the winter, they also like the oddbit of silage — see photo. We areawaiting at least one to lamb.

DAFFODILSBy the middle of the month of

August our daffodils were in full swing.There is nothing more beautiful in myopinion than a bright bunch of daffodilsat the end of winter. It heralds the endof winter and the forthcoming of springand everything is in order.

Continued page 10.


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TC150909RR10ASIGNS of spring after a harsh winter.

TC150909RR10BSANCTUARY: Lake Valda’s resident ducks.

From page 9.GUN RE-LICENSING

My gun license is due to expire so Ihave been going through the process.It is ten years since I first acquired mylicense and the Police have beentightening up the regulations. Now amember of the Police comes out to thehome and talks to your spouse, you doa basic test and have your gun cabinetinspected. My cabinet was free stand-ing and needed to be bolted to thefloor. I was surprised that while it hadbeen perfectly legal for ten years theywanted it done pronto. It has sincebeen passed but I thought it was a bitheavy handed.WILD DUCKS AND PHEASANTS

Our little pond (Lake Valda) whichis only about 15 square metres hasseen an influx of several wild duck.With the adjoining swamp there areabout eight in the immediate environshoping for more. There is one pairwhich goes out in the early morninginto the middle of the open paddocksto collect whatever it is they collect. Inever shoot wild duck and while thepond is tiny it is nonetheless a littlesanctuary. When the native trees growaround the lake the ducks will haveshelter and be a private haven.

One morning I saw a magpie

deliberately dive-bomb and attack aduck sitting on the water. After it hadtaken off, the magpie gave chase.

I have written previously about the

number of pheasants which sadly havenot been so much in abundance thisyear. In fact it is only in the last twoweeks that I have seen any.


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Farmers facing feed crisisshould look to maizeLow pasture growth rates have impacted

production on many farms throughout theregion for the past two seasons according to

Wendy Dewar, Forage Specialist for Pioneer®brand seeds.

‘‘A lot of pastures have never recovered fromthe 2007-08 summer drought and we are seeingmany paddocks with a high proportion of weedsand poor quality grasses such as Poa annua,’’ saysMs Dewar.

‘‘It looks like Black Beetle have played havocwith the ryegrass plant numbers.’’

During the past two seasons, many farmershave made a significant investment in bought insupplements just to hold production.

‘‘We keep hearing reports that farmers are notseeing a good response to supplements,’’ says MsDewar.

‘‘The real problem is that many farms aregrowing a lot less pasture than they were a fewseasons ago while still running the same numberof cows. It is not the supplement that is

underperforming — it is the pastures.’’‘‘If pasture production drops by just 1 tDM/ha

across a 100 ha farm, you need to buy in 100 tDMof supplements just to stay still,’’ says Ms Dewar.

‘‘We are seeing paddocks that are probablyproducing 2-3 tDM/ha less than they were acouple of seasons ago. It’s a massive feed deficit.’’

Ms Dewar believes that home-grown maizesilage followed by a pasture renewal programmeis essential if farmers are to get out of thepermanent feed pinch they find themselves in.

‘‘Cropping is an integral part of successfulpasture renewal because it provides an opportun-ity to address more of the factors that arenegatively impacting pasture yield than grass-to-grass renewal does,’’ says Ms Dewar.

‘‘Cropping provides two opportunities to takeout hard-to-kill weeds and taking the area out ofpasture for several months removes the foodsource for insects and significantly reduces theirnumbers.’’

Maize is the ideal crop because it produces

high yields of cost-effective drymatter that can bestored and fed when there is a genuine feeddeficit.

Most Waipa farmers can grow maize silagecrops that yield 18-24 tDM/ha for 16 — 21c/kgDM in the stack,’’ says Ms Dewar.

‘‘No other crop can deliver as muchharvestable, high quality feed for such a low cost.’’

Recent two-year on-farm research has shownthat maize silage crops grown in paddocks with ahistory of dairy shed effluent application requireno additional fertiliser.

‘‘A soil test is always recommended and if youfind you can get away without applying fertiliseryour maize silage crop could cost as little as 12 -16c/kgDM.’’

‘‘Getting paddocks back into high-yieldingpastures has to be a priority,’’ says Ms Dewar.

‘‘Home-grown maize silage can help farmersachieve that objective while delivering high yieldsof quality feed. It makes a lot more sense thanbuying in expensive alternatives.’’

12 step planSoil temperatures are rising rapidly and maize silage

planting will start in the next three weeks in the Waipadistrict. If you are planning to grow a maize silage

crop this season, now is the time to book your contractor,and order maize supplies. Paddocks should be identified anda soil tested to determine crop fertiliser requirements.

Following the steps below will help you to achieve a highyielding crop:

1. Paddock selection — now is the time to select yourmaize silage paddock. Choose a paddock that is flat, welldrained with no major weed problems.

2. Soil test — conduct a soil test and ask your localmerchant or fertiliser representative to determine the typeand amount of fertiliser that you will require.

3. Book your contractor — contact your localcontractors to book in base fertiliser application as well asspraying out pasture, cultivation and planting.

4. Order insecticide treated Pioneer® brand maizesilage hybrid — see the 2009-2010 Pioneer® Brand MaizeSilage Catalogue for a specific hybrid recommendation foryour area. If you are planting maize silage into a paddockthat has just come out of pasture Poncho® is the bestinsecticide treatment option because it controls all threemajor maize insect pests and allows farmers to reduce thelength of the fallow period.

5. Spray out paddock using glyphosate — good weedcontrol is essential to ensure good crop yields and reducethe risk of insect damage to the seedling maize crop.

6. Apply base fertiliser- don’t apply more fertiliser thanyou need. High fertility paddocks or those which have ahistory of effluent application may not require anyadditional fertiliser. However, a soil test is alwaysrecommended.

7. Cultivate seedbed — aim to achieve a bed with soilparticles no greater than the size of a maize seed.

8. Plant crop — hybrid maize seed must be precisionplanted. Choose a reputable contractor with wellmaintained equipment. Research has shown that keepingthe plant population up to the recommended levels willmaximise maize silage yield.

9. Starter fertiliser — the soil test will determine the typeand rate of starter fertiliser that is required.

10. Weed control — use a pre emergent spray such asRoustabout after planting and before the weed seedlings orcrop have emerged.

11. Check crop — for post emergent weeds, bird andinsect damage. Maize crops should be walked every 2-3days during the early part of the growing season.

12. Nitrogen sidedressing — around four weeks afterplanting conduct a deep N soil test to determine if additionalnitrogen is required. Sidedressing normally occurs aroundsix weeks after planting when the maize is knee high.


The October issue will be published on Tuesday, October 20

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Tips to prepare calves, lambs for ‘big’ day

TC150909RR13ACALVES enter the ring at Kihikihi Domain last year.

TC150909RR13BLAMBS take a break at the Eastern Zone Group Day 2008, held at Arohena.

Every year in ruralschools around NewZealand a day is held

with one purpose - toencourage children to takean active interest in thewelfare and presentation ofan animal of their choice fora community day at theirschool.

Originally the day wasknown as ‘Calf Club’ eventhough children exhibitedanimals like lambs andgoats.

Today, with fewer chil-dren having access to ‘farmanimals’ the day has oftenbecome known as Pet Dayor Agriculture Day, withevents for all classes ofanimals, pets and some-times handcrafts.

LIC is involved in thedairy, beef, deer and sheepindustries and recognisesthat there are young

farmers who work hardeach year to select, pre-pare and show younganimals at their school CalfClub days.

So if you are planning toshow a calf or lamb at yourlocal day, check outwww.calfclub.co.nz forguidelines which will helpyou select, train and showyour animal – and ensureyou both enjoy the experi-ence.

Tips include what to lookfor when selecting youranimal, how to feed it andcare for it, how to train it andprepare it for your agricul-tural day, classes to enterand what judges will belooking for.

There’s also a brief his-tory of ‘Calf Club’ in NewZealand - which beganalmost 100 years ago inOtago.


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Taxation planningBy Graeme Wansbone —Chartered Accountantin theTe Awamutu fi rm Gyde Wansbone.

With the current financialuncertainty it is timely toconsider the tax planning

opportunities available to providerelief in times of changing incomes orhardship.

The simplest of these is estimationof provis ional tax. Standardcalculations for provisional tax arebased on the prior years income.Estimating your provisional tax allowsyou to pay tax based on your forecastincome for the year.

Provided you (or your tax agent) filean estimate with the Inland RevenueDepartment (IRD) prior to the due datefor the payment, no penalties willapply for underpayment of tax. Insome cases where extreme weatherconditions have affected taxpayers, taxrelief provisions may allow for re-estimates of provisional tax after thepayment date, and overpayments maybe refunded.

Individual taxpayers who estimatetheir provisional tax will fall in to theuse of money interest regime. How-ever recent changes to the interestrates have more closely aligned themto bank rates and reduced the differ-ence between under and over paymentrates making this a less draconianoption than in the past.

It makes good business sense toprepare budgets and forecasts for yourbusiness and to monitor and manageyour results. In times of changingincomes tax planning (and estimating)is the logical next step and this isstandard practice for many of our ruralclients.

Tax pooling is another option formanaging provisional tax paymentsand reducing interest and penalties.

Under this system tax paid by largecorporate taxpayers can be credited toa tax pooling account at the IRD.

When the large taxpayers final taxliability is determined the paymentsrequired to avoid penalties or interestare transferred to their tax account. Aslarge taxpayers traditionally over paytheir tax (to avoid interest or penalties)unused tax payments are left in the taxpooling account. These payments areavailable for purchase by other tax-payers. There is an interest charge(less than the use of money interest)but no penalties as the payment istransferred to your tax account at thedate it was paid by the large taxpayer.If you have missed a tax payment, orwill have difficulty making one talk toyour accountant about the tax poolingoption.

You can avoid penalties (but notuse of money interest) by entering in toa payment arrangement with the IRDprior to the due date for a taxpayment. The IRD will accept reason-able requests to pay off tax over aperiod and provided you make theagreed payments no penalties willapply.

The Income Equalisation Deposit(IED) scheme is another tax manage-ment tool. Taxpayers engaged inagricultural, fishing or forestry busi-ness can make a deposit to the schemewith the Inland Revenue Department,which is then treated as a deductionfrom their taxable income. When thedeposit is withdrawn (repaid withinterest) the refund is treated asincome.

Deposits can be made in respect ofa prior year, prior to filing the taxreturn for that year. In certain circum-stances application can be made tomake a deposit outside the specifiedperiod.

In general, IED deposits mustremain in the scheme for twelvemonths, although there is provision toapply earlier in certain circumstancesincluding hardship, or for develop-ment work. Given the current financialdifficulties being experienced earlywithdrawals could be justified for manyfarmers. For individual taxpayers theIED can avoid income falling in to the33 or 38 cents in the dollar taxbrackets and in times of changingincomes can provide significant sav-ings provided the taxpayer has the

cash available. Many rural businesseshowever, are now operated by com-panies or trusts with flat tax rates.

A tax planning opportunity whichdairy farmers may be taking advantageof now is an election to exit the HerdScheme for valuation of livestock. TheHerd Scheme allows farmers to valuestock at National Average MarketValues set by the IRD and announcedin May each year.

Opening stock valued under theHerd Scheme is revalued tax free tothe values announced for the newyear. So when livestock values arerising the farmer pays no tax on theincreasing value of the herd. Con-versely, however when values arefalling there is no deduction for thedecrease in value.

The scheme is designed to protectfarmers from taxation on unrealisedfluctuations in the value of their capitalstock, and it is an extremely usefultool. Some farmers take the view thatover the life of their business the HerdScheme will provide the best outcome,and will stay in the scheme despitechanges in values.

Once stock is valued under theHerd Scheme that method must beused until an election to exit is made.

The election must be made prior tofiling the tax return for the year twoyears prior to the application of theelection. So for a herd scheme exit toapply to the 2009 year, it wasnecessary to elect prior to filing the2007 return. This required somecrystal ball gazing, and some farmerswill have chosen not to take the risk ofprices continuing to rise.

Those that did elect out haveavoided a significant non deductiblewrite down in the value of their herd.Of course, if prices had risen theywould have missed out on a nontaxable write up.

Once you have elected out of theherd scheme you must stay out for oneyear, and can then re-enter. If yourtiming is good, and you re-enter intime to take advantage of non taxableincreases in value then you can benefitfrom significant permanent tax sav-ings.

There are many opportunities tomanage your tax liabilities. Keeptalking to your accountant or taxadvisor to ensure you are in the bestposition to take advantage of these.

Farmers urged to test bullsfor bovine tuberculosisA recent outbreak of bovine

tuberculosis in four Taranakidairy herds has highlighted the

need for farmers to thoroughly checkTB test details on bulls being leased orbought for mating this spring.

‘‘We are doing all we can to identifythe cause of the outbreak and stop anyfurther spread but farmers also need totake all the precautions they can,’’ saidAnimal Health Board regional co-ordinator Terry Hynes.

Mr Hynes said there are a numberof things farmers need to do to beconfident they are bringing healthybulls on to their farms: • Make sure thebulls are accompanied by an AnimalStatus Declaration which will confirmtheir TB status.

• Be certain that all pre-movementTB testing requirements have beenfulfilled.

• Check that bulls are tagged withboth Primary and Secondary tags —

this helps greatly with tracing the bull’sherd history if need be.

‘‘Testing of bulls is free. Either askthe person selling or leasing the bullsto get them tested before takingdelivery of them or get them tested onyour property if in any doubt,’’ said MrHynes.

For more information about gettingbulls tested, movement control or anyother TB enquires, call the AnimalHealth Board on 0800 4 824 636.


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Retiring land asmart movesays farmerWaipa farmer Pieter van Dongen is

encouraging other Waikatofarmers to retire land around

sensitive water bodies, saying it makes goodeconomic sense.

Mr van Dongen and his wife Joy, whofarm at Rukuhia just west of Hamilton, havebeen working with Environment Waikato toprotect Lake Mangahia, a peat lake withhigh conservation value.

The lake boasts one of the most diversecollections of native wetland species of allthe region’s peat lakes, but is under threatfrom invasive pests, land drainage andnutrient flows.

‘‘We wanted to protect the lake becauseit was being choked by invasive willow,’’ Mrvan Dongen said.

‘‘It was degrading and it was going toend up an unattractive blot on the land-scape. We wanted to do something for theenvironment and retain part of our naturalheritage.’’

With help from Environment Waikatolake management officer Keri Neilson andland management officer Tane Desmond,Tony Roxburgh from Waipa District Coun-cil and Rex Webby of the QEII NationalTrust, the van Dongens decided to retireabout three hectares of land around theedge of the lake.

‘‘Some farmers are reluctant to give uplakeside land because of its perceivedgrazing value,’’ Mr van Dongen said.

‘‘But the areas we’ve fenced off are nowmuch easier to manage, because we don’thave to worry about animals getting stuck inbogs.

‘‘Reducing our grazing area won’t haveany long term effect economically at all —in fact long term we think there will be again because we will be able to manage thepasture a lot better. We’re also enhancingthe value of the land and creating big

aesthetic benefits.’’The van Dongens have covenanted the

land they’ve retired and fenced it off to keepstock out.

Together with other locals and duckshooters, they have recently formed theLake Mangahia Care Group, which hasbeen planting trees in the fenced areas. Theplants will improve biodiversity and help tofilter out excess nutrients flowing offsurrounding farmland.

‘‘Locals can see the benefits of protect-ing the lake and it’s very rewarding foreveryone,’’ Mr van Dongen said.

‘‘I’d like to think that 50-100 years fromnow, the people who are farming this landwill say those people had a bit of vision andforesight.’’

Thanks to the care group’s support,Environment Waikato has been able tosource funding to buy plants through itsown Clean Streams fund and the HondaTree Fund. It has also secured $51,000from the Department of Conservation’sBiodiversity Condition Fund for furtherwetland restoration work.

Mr van Dongen said he and his wife hadreceived ‘‘marvellous support’’ fromEnvironment Waikato, Waipa DistrictCouncil and the QEII National Trust.

‘‘I would encourage any farmer whoseland borders a sensitive water body to talk toEnvironment Waikato,’’ he said.

‘‘Keri and Tane are absolutely great;they’re very pro-farmer and they’ve got agreat deal of knowledge and experience tooffer. There’s so much help and assistanceavailable and there are enormous benefitsto be gained.’’

If you farm near a lake or wetland andare interested in protecting it, please callEnvironment Waikato on 0800 800 401and ask for your local land managementofficer.


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Fonterra misleading onpalm kernel: GreensFonterra is contradicting

the World Bank andmisleading farmers in

its attempts to justify themassive use of rainforest-destroying palm kernel onintensive dairy farms.

‘‘Fonterra is misleadingNew Zealanders and defyinga World Bank report thatfound their partner companyWilmar was destroyingrainforest to produce palmoil and kernel,’’ said GreenParty Co-leader RusselNorman.

‘‘There are lots of good,responsible dairy farmers inNZ and Fonterra should backthem. Industrial-scale dairy-ing is irresponsible because itrelies on destructive productslike palm kernel, which alsohurts other Kiwi farmers and

our economy.’’A recent World Bank

report into Wilma —Fonterra supply partner forpalm kernel — was dam-ning, following complaintsthat Wilma companies,‘‘illegally used fire to clearforestland, cleared primary(old-growth native) forests,and seized lands belongingto indigenous people with-out due process.’’

Meanwhile, Fonterraclaimed this morning onRadioNZ that palm kernel is‘just a by-product’, that theirpalm kernel is bought from acertified source, and thatfarmers had no other supple-mentary feed choice in lastyear’s drought.

Yet managers at Fonterrasubsidiary RD1 have saidthat the price of palm kernelis ‘driven by demand’, with‘sharp increases in the use ofPKE in recent years beingdriven partly by more inten-sive farming systems’.

Dr Norman says, ‘‘It isquite clear that the demandfor palm kernel, driven byFonterra’s push for intensivedairying, is boosting theprice. This in turn assistspalm companies’ profitabil-ity and leads them to destroymore rainforest forplantations.

‘‘It’s simple demand andsupply economics — yetFonterra wants you to some-how believe we’re doing theworld a service by taking aby-product no one elsewants.

‘ ‘Fonterra’s secondclaim, that their palm kernelis sustainably certified by theRoundtable on SustainablePalm Oil (RSPO), is alsobunkum,’’ said Dr Norman.‘‘The Roundtable is reportedas stating that ‘certainly verylittle expeller cake (palm ker-nel) coming into New Zea-land last year would havebeen RSPO certified at all’.

‘‘Fonterra third claim,that large-scale palm kerneluse was a response todrought, also does not stackup against the facts.

‘‘Even before last year’sdrought we imported half-a-million tonnes of palm kernel(2007), and in the first fourmonths of this year we haveimported another 260,000tonnes.’’

Federated Farmers’maize growers’ rep, ColinMcKinnon, is reported assaying that ‘palm kernel isalso threatening the viabilityof Kiwi grown maize pro-duction for stock feed’.

‘‘As Fonterra’s spin-doctors try to wriggle out oftheir embarrassing situation,the Penan people in Borneoare today protesting in a lasteffort to protect theirremaining lands from palmplantation companies,’’ saidDr Norman.

‘‘Fonterra has nowhereto hide on this one. Theirpalm kernel use is deeplyimplicated in rainforestdestruction and humanrights abuses, and they needto fix it, now.’’

De-sexing crucial

Not enough New Zealanders are having their pets de-sexed and the ongoing effects of pet overpopulationare affecting the whole community, says Purina

Petcare.Crystal Corben, a Veterinary Nurse and pet care adviser

for Nestle Purina PetCare, says she has encounteredincreasing numbers of unwanted kittens and puppies throughher vet work over the past year. She believes this is a result ofpeople still not understanding the need to neuter their pets,and the consequences for the community if they don’t.

‘‘There are so many litters that inevitably end up inwelfare agencies like the SPCA, where the supply outweighsdemand. Many of them stay in these facilities until they are nolonger young and cute and finding a suitable home becomesmore difficult,’’ says Ms Corben.

‘‘Some unwanted and abandoned pets find themselvesliving as strays on the streets in our communities and thecycle of unplanned pregnancies and overpopulation beginsagain.

‘‘De-sexing is a key part of responsible pet ownership andis ultimately the simplest way to tackle the problem,’’ says MsCorben.

Ms Corben says that de-sexing can have a beneficial effecton the social behaviour of dogs, which ultimately benefitslocal communities.

‘‘Spayed dogs are less likely to wander from their homes,or mark their territory. De-sexing also helps reduce displaysof inter-male aggression, or protective aggression over litters,and the likelihood of neighbourhood dogs entering aproperty to get to a female dog on heat.’’

Ms Corben says that spaying of pets can also improve thehealth of pets themselves.

‘‘Statistics show that dogs and cats that have been de-sexed have a reduced risk of prostate and mammary cancer,as well as more common conditions like uterine infection.’’

Ms Corben says that registration of a dog is cheaper if ithas been de-sexed.

‘‘There is really no credible argument for not de-sexingpets. A humane community takes care of its animals, and thisis a proven way of doing so in the long term.’’


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Ex-mayor lookingfor Fonterra seat

RUSS RIMMINGTON

Cambridge dairy farmer, businessmanand former Hamilton Mayor RussRimmington has confirmed he is

seeking a seat on the board of NewZealands largest company, Fonterra.

A dairy farmer in Matamata and Cam-bridge for 30 years, Mr Rimmington ischallenging three sitting directors whosecurrent terms are expiring.

Other potential challengers are yet todeclare their interest.

Nominations for the three boardvacancies of the co-operative close at noonThursday.

Voting packs, including information oneach of the candidates, will be mailed to10,600 shareholders on October 23.

Voting closes at 10.30am on November16, with the results announced later in theday.

Fonterras annual general meeting will beheld two days later in Ashburton onNovember 18.

Mr Rimmington describes himself as awild card2 candidate, challenging for a seatin a company widely regarded as a closedshop.

Known as a strong critic of Fonterrascapital restructuring proposal and publiclisting, he is standing to continue hisadvocacy for 100 percent ownership andcontrol remaining in the hands of theshareholders.

Fonterras challenge is not about thecapital structure but the economic perform-ance of the company,2 he says.

Payout remains paramount. This elec-tion gives shareholders the opportunity tovote new blood onto the board to ensure thecompany keeps its eye on the ball in theright game.2 He says Fonterras vision hadbeen about being Œbig, bold and brave2 butin todays environment a more prudentstrategy would be for a company to be safe,smart, and secure.2 Farm ownership inChina, he believes, is an example of a high-risk strategy for Fonterra, requiring carefulmanagement of potential downsides.

As well as farming interests, MrRimmington has been involved in variousbusinesses for over 30 years including agri-

business and international agri-brand mar-keting.

For almost 20 years until recently healso owned a steel manufacturing companyin the Cook Islands.

Mr Rimmington is a founding memberand former president of the New ZealandAgricultural Fieldays and honoured with alife membership.

He also served for nine years as aHamilton city councillor, one term asMayor, as well as being chairman of a $250million energy trust embroiled in a success-ful battle to save WEL Energy from fallinginto foreign ownership.

His current interests include being along-standing director of a regional co-operative superannuation fund and a familyproperty ownership company.


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Workshop for maize growers

Growing maize silage on-farm is an option manydairy farmers are currently considering to reducethe cost of feed and to boost profits.

Now the Foundation for Arable Research (FAR),Environment Waikato (EW) and DairyNZ are offering aworkshop in Hamilton where farmers will be able to getadvice and guidance on how to get the best results from thecrop.

This workshop, on Monday, September 21, isparticularly valuable for dairy farmers and comes amidst athree-year Sustainable Farming Fund project.

‘‘Dairy farmers who are planning to grow their ownmaize this season will benefit from the hands-onmanagement tips provided,’’ said Gabriele Kaufler,sustainable agriculture coordinator with EW.

Besides FAR and EW, other funders of three years’worth of maize silage trials are the Ministry of Agricultureand Forestry (MAF) Sustainable Farming Fund and GeneticTechnologies Ltd. The project has a year to go but hasalready gathered substantial data and produced resultswhich are helping answer dairy farmers’ questions aboutbest management practices for growing maize.

‘‘Results from two years of trials confirm that if maize isplanted on high-fertility land on dairy farms no extrafertiliser is needed to produce a high-yielding crop,’’ MsKaufler said.

Maize can be used strategically to manage nutrientloading on the effluent block, offering a win-win solutioneconomically and environmentally.

Typically soil tests on the effluent irrigation block revealhigh levels of plant available nutrients.

On the trial sites Olsen P levels ranged from 26 to 92and K-levels were between 6 and 25.

‘‘Soil testing the effluent block separately from the restof the farm provides farmers with an important piece ofinformation to start with,’’ says Ms Kaufler.

‘‘It will enable a tailored approach to nutrientapplication when planning to plant a crop there.’’

Maize is able to remove some of the excess nutrients ifgrown on the effluent block.

In the trials the average silage yield in year two was26.7 t DM per hectare without any fertiliser applied.

These crops removed 282 to 314 kg nitrogen perhectare — nitrogen that could potentially leach from thesoil if it was not utilised by plants.

Similar to the observations in the first year trials, noneof the trial sites showed a significant effect of the starterfertiliser treatment. This equates to potential savings onfertiliser cost of $149 to 333 per hectare maize.

Compared to pastoral species maize has the ability togrow roots deeper into the soil — up to 1.5m if there areno other restrictions. Therefore the crop can uptakenutrients which might have washed deeper into the soil,bringing them back into the farm system and avoidingenvironmental issues plus reducing costs.

Foundation for Arable Research project manager MikeParker said: ‘‘Research shows that large amounts ofnitrogen can be released from the soil when pasture iscultivated to plant a crop.’’

‘‘Working the soil and aerating it will result in thebreakdown of organic matter and organic nitrogen willthen become plant available, ready for the crop touptake.’’

With significant levels of nitrogen being released fromthe soil not a lot of extra fertiliser is needed to meet croprequirements. Consequently it is good managementpractice to deep soil test the paddocks prior to sidedressing.

Mr Parker recommends sampling the paddocks fourweeks after planting down to 60cm.

This sample will pick up the amount of plant availablemineral nitrogen.

‘‘Most farmers will be surprised to find that in manycases no nitrogen fertiliser will be necessary at sidedressing, saving farmers money and reducing the leachingrisk,’’ said Mr Parker.

Detailed advice based on the trial results will bepresented at the workshop specifically designed for dairyfarmers who are growing their own maize.

A booklet which outlines best management practicesfor growing maize on dairy farms will also be available freeof charge at the workshop.

The workshop is at the Hamilton Airport Motel from11am to 1pm, followed by a light lunch.

Farmers who want to attend are advised to pleaseregister with Mel Bond at the FAR office, phone 03 3256353 or email: [email protected] no later thantomorrow.


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The legal landscape ofconveyancing changing

By Simon Brdanovic — partner in theTe Awamutu fi rmEdmondsJudd.

Buying a home for many people isthe biggest transaction in theirlife. People entering into a trans-

action whether it be buying or sellingreal estate, have most commonly usedthe current standard form ADLS/REINZ Agreement for Sale and Pur-chase. This standard form agreementhas been universally accepted and usedthroughout New Zealand providing cer-tainty to lawyers, real estate agents andalso to clients buying and selling realestate.

The current ADLS/REINZ agree-ment owes its present form to aprolonged period of extended scrutinyby academics, lawyers, real estateagents and Judges.

Concern has arisen with theproposed introduction of a parallelagreement introduced by the RealEstate Institute of New Zealand (REINZ)— ‘‘the Agreement for Buying andSelling Real Estate’’.

For many years the REINZ Councilhas pushed to adopt its own form ofAgreement for Sale and Purchase ofreal estate, separate to the currentADLS/REINZ agreement. It wasproposed that the new forms would beavailable for all members of the REINZfrom July 1, 2009, but after lengthydebate, the agreement is still beingrevised into its final form.

The scheme proposes the introduc-

tion of a three consistent forms:1. REINZ Agreement for Buying and

Selling Real Estate;2. REINZ Agreement for Buying and

Selling Real Estate by Auction; and3. REINZ Agreement for Buying and

Selling Real Estate by Tender which willall sit comfortably within a standard setof clauses — the REINZ Book ofStandard Clauses.

One of the main arguments of theREINZ in making the decision toembark on a new agreement was: ‘indrafting the REINZ . . . forms one of ourgoals is to produce them in plan English.In so doing, we wish to achieve the plainEnglish quality standard mark. You (thereal estate agent) will be able tounderstand more easily, and so too willyour clients and customers. The formswill be more ‘used friendly’ in the sensethat they will not be as long, will have abetter design and layout for you to use,be easily copied and faxed, and simplerto prepare and produce online.’ (LeCren — CEO REINZ, REINZ Journal,December 2008).

The new agreement is intended tosimplify the process for buying andselling real estate for those not familiarwith legalese. However, the new agree-ment has been labelled by experts as‘unsafe and unsound’ and there isconcern about the agreement in itscurrent form being relied upon.

Concern has arisen about the intro-duction of a different form of Agree-ment for Sale and Purchase into theNew Zealand conveyancing market.The new REINZ agreement attempts tointroduce new principles into wellsettled areas of property law. Many ofthe principles included in the newagreement are untested and their effectunknown. The form has not been triedand tested like the current ADLS/REINZ agreement which includes prin-ciples which have been well establishedand tested over a long period of time.

Dr McMorland, a Barrister in Auck-land and also a well known professorand author of many land law textbooks

who was engaged to provide an inde-pendent review on the new agreementraised the following concerns: ‘‘Manyproblems will arise quite quickly (for theREINZ form) in the absence of history orjudicial interpretation for guidance.Given the compulsory mediation clause,most of those will be settled privatelyand will add nothing to the sum ofknowledge as to the meaning andoperation of the agreement. Othersmay become notorious, having arisenquite commonly, and it is imagined thatthese will engender a number of varia-tions to the [REINZ form] during theearly stages of its life.’’

It has been argued that the introduc-tion of the new agreement could lead toincreased risks for buyers and sellers ofreal estate and in turn increased legaland conveyancing costs ‘‘consumerscould find themselves becoming guineapigs for expensive test cases’’ (Clement,D, NZ Herald, Saturday August 1,2009).

Potentially, solicitor and client costsin undertaking a sale or purchase of realestate under the new REINZ agreementwill be significantly higher than thatcurrently being charged under thecurrent ADLS/REINZ agreement. Themain reason for this is the uncertaintybehind the principles contained in thenew agreement as they are untested andunknown. Buyers and sellers will not beusing a form which has evolved over asignificant period of time.

Buying a property is one of the mostimportant transactions people will evermake. It is highly recommended whenanyone is entering into a transactionregarding the sale and purchase of realestate that expert advice is sought priorto entering into any agreement. This isthe case even with the existing agree-ment and certainly will be the case if andwhen then REINZ agreement is intro-duced.

We will be monitoring the positionand will in a subsequent article deal withthe main elements of the new agree-ment when the final form is produced.


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Take good advice

By Hamish Burdon — Cardon Dispute Resolution.

One thing that’s become obviouslately is that a lot of employersbelieve they have no rights under

current employment legislation in NewZealand.

In believing this they fail to deal withissues that arise with their employeesbelieving they will leave themselves openfor a personal grievance from theiremployees. A personal grievance is theterm given to a compliant made under theEmployment Relations Act against theother party in an Employment Contract.

The Employment Relations Act 2000,the current law that all employers andemployees come under, outlines obligationsfor both sides. It primarily outlines the factthat both parties have obligations to treateach other fairly and in a manner that builds‘trust and confidence’ between the parties.

The reason for the confusion is that veryrarely do you hear of an employer taking anissue to the Employment Relations Author-ity (ERA) to have it resolved.

Many Employers I’ve spoken with haveresigned themselves to the fact that theyhave to accept their Employees behaviourbecause they, as Employers, have no rights.

It appears Employers don’t believe theyare able to deal with issues without thethreat of a dreaded personal grievance.

THE EMPLOYEES CONDUCTAs an employee there is also an

obligation to act in a ‘fair and reasonable’manner to maintain the ‘trust and confid-ence’ of the employer.

This is something not often talked aboutand many employees I deal with have justexpected that all onus remains with theemployer.

Recently in the Courts more emphasishas been put on the employees actionswhich have resulted in the employer actingin the way they have.

This is called ‘contributory conduct’ andalthough it does not let the employer off thehook if they haven’t acted within the law, ithas lowered compensation payouts to an

employee in personal grievance cases. Insome instances the Courts have found that,although the employee has won their caseagainst the employer, the employee has notreceived any compensation because of theiractions, or ‘contributory conduct’, in thedispute.

PROCEDUREThe biggest mistake continually made by

employers is not following the correctprocedure when dealing with issues withemployees.

They often deal with one issue ‘thereand then’ when they’ve finally had enough.However, it’s usually never just one issuebut a resulting number of issues that havebrought them to this point and now becauseof the way they have handled this one issue,a personal grievance is being taken againstthem.

No matter how serious the conduct, anemployer must act in a ‘fair and reasonable’manner and not predetermine the outcomeof the process when investigating anemployees conduct.

They must consider the employeesreason for why they acted in the mannerthey did.

If there has been a breach of ‘trust andconfidence’ then it has to be establishedwhether it is ‘serious misconduct’ — worthyof instant dismissal, or ‘misconduct’ —worthy of a warning.

If it is ‘misconduct’ — worthy of awarning, there needs to be a clear outline ofwhat is expected of the employee to rectifythe problem and a reasonable timeframegiven for the employee to do so.

TAKE GOOD ADVICEThe strongest point I can make at this

point is to take good advice. As the adagegoes ‘prevention is better than cure’ andoften employment law is not a farmers‘forte’ and is seen as way too complex tounderstand.

It will be a lot cheaper in the long run tospend a little time talking to a professionalthan to have to spend a lot of time andmoney later defending your actions in theERA. Unfortunately when it comes todefending your actions, negligence is notsomething the ERA will excuse.

Employers are well within their rights todeal with issues that arise however, it is howthese issues are dealt with that could leavethem facing a personal grievance. Remem-ber as an employer you have a legalobligation to your employees to be ‘fair andreasonable’.

There are also legal remedies andprocedures which allow you to deal withemployees not treating you in the samemanner. So, as an employer or employee,always seek to build ‘trust and confidence’and if issues do arise, take good advice.


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AExchange rates will determinefarm-gate return in coming yearI n-market prices for lamb and beef

are expected to remain solid in thecoming year, and exchange rates are

likely to have the greatest impact onfarm-gate returns, according to Meat &Wool New Zealand’s New SeasonOutlook for 2009-10.

Meat & Wool New ZealandEconomic Service Executive Director,Rob Davison says despite the weakenedglobal economy, the good retail andwholesale lamb prices achieved in thelast year look set to remain though therecession places a ceiling on beefprices, especially in the North Asia andEuropean markets. There may be slightfirming of in-market wool prices, whichsaw a significant drop last year, particu-larly for medium and fine wool.

Mr Davison says uncertainty in theglobal economy, and the timing andstrength of New Zealand’s economicrecovery make it extremely difficult toforecast where the New Zealand dollarwill go over the next year and howfarm-gate returns will be affected.

‘‘We expect the New Zealand dollarto remain volatile over 2009-10, and ithas trended upwards in recent monthsagainst the continuing weakness of theUS dollar. Currently the New Zealanddollar is also being supported by highercommodity prices and equity marketsas a lead economic indicator of arecovery in New Zealand’s tradingpartners’ economies. This should pro-vide support for more positive in-market pricing for meat and woolproducts.

‘‘However, in practice the exchangerate is uncertain and there is concernthe New Zealand dollar seems to befollowing the Australian and Canadianexchange rate trends weighted towardsthe equity markets, oil, mineral andmetal commodity trends, not NewZealand’s soft agricultural commodities.Because of the likely short-termexchange rate volatility and its effect onfarm-gate prices and farm profit, wehave looked at several exchange ratescenarios in 2009-10.’’

‘‘Based on an optimistic exchange

rate ‘mid-point’ for the year of 63cents/US dollar, up 8% on last year,the forecast per head lamb price of $80is down 10% on 2008-09’s seven-yearhigh of $89. Beef prices would beexpected to be down 11.7% based onthe mid-point exchange rate.

‘‘A higher exchange rate for2009-10 centred around 67 cents/USdollar and its associated cross rateswould see beef prices compared withlast year drop 17.1% and lamb pricesdrop to $73 per head (-18%).’’MrDavison says sheep and beef farmerswill see revenue and profit affected bythe higher exchange rate and retentionof stock to rebuild herd and flocknumbers, but lower inflationarypressures and interest rates shouldabate from the previous year’s highs.

‘‘While the 2009-10 lamb crop isexpected to be ahead of last year’s, anincrease in ewe lamb retentions willreduce the number of lambs availablefor export slaughter (-2.2%). We alsoexpect a 4.8% decrease in export cattleslaughter from the high last year.’’

Based on a 63 cents/US dollarexchange rate, gross farm revenue at

the farm gate is forecast to decrease by$300 million to $4.25 billion (-6.7%),while total expenditure is forecast todecrease slightly (-1.9%). Sheep andbeef farm profit per farm is expected todrop from $56,600 (2008-09) to$39,900 (2009-10). The averagesheep and beef farm currently carries2,770 sheep and 280 beef cattle.

‘‘Sheep and Beef farm income willalso be strongly dependent on the valueof the NZ dollar at the height of theproduction season. Farm gate prices forlamb and beef in the last half of 2008rose significantly with the rapiddepreciation in the value of the $NZdollar at that time.

‘‘In contrast, prices for inputs usedon sheep and beef farms should remainrelatively constant in 2009-10, which isa welcome relief from the 9.7 and 7.6%increases experienced in the previoustwo years,’’ says Mr Davison.

‘‘However, farmers will be cautiousabout any extra spending with aforecast decrease in revenue, and theneed to recoup cash and restorebalance sheets after poor profitability in2006-07 and 2007-08.’’


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A Mid-spring farm management

By Darren Sutton— Waikato FarmWise consultant.

The cold winter has now given wayto a very warm early spring.Normally in September, 10cm

soil temperatures for Hamilton airportaverage 10.4°C, and I have beenrecording 10-13°C temperatures forthe last two weeks of August.

This has been a great relief to thosefarms that had very low pasture coversthrough winter. Round speed, andsurplus management is going to bevitally important over the next fourweeks, with the feed situation likely tochange every seven days.

The two most important areasfarmers need to be focusing on andplanning for now, is management ofpastures and mating.

PASTURE MANAGEMENTThe next two months in particular aregoing to pay huge returns to anyoneplate metering their farm and acting onthe information gathered.

At the moment with calving about —completed, many farms are onlydemanding 45-50kg DM/ha/day, butunusually for early September, pasturegrowth rates have been ranging from50-60kgs DM/ha/day.

This means if you are growing10kg/ha/day more than cows areeating, your APC (average pasturecover) will lift by 100kg every 10 days.

At the same time your pre-grazecovers will lift and if you try to speed upthe round, you will leave behind post-graze residuals that are too high.

The focus needs to be on what thecows are leaving behind and not on the

round length you are on. Aim for nomore than 1,600 APC for the nextthree weeks, then by the first week inOctober, you will need to pull theseresiduals back to 1550.

If your milkers do leave too muchbehind for the next two weeks, eithersend them back for two-three hoursafter milking then move them on to asmaller paddock, or use the remainingspringer/dry mob to follow behind andclean up.

By mid September you will be able toskip the longer paddocks and target thepaddocks that have the right amountpre-graze to achieve your post-grazetargets.

Below are a couple of calculationsthat you can do to help work out justhow much silage you have to make:(Stocking Rate x Intake x Rotation) +Optimum residual = Pre-graze CoverExample: (3.0 cows/ha x 17kgs DM/cow x 25 days) + 1550kgs DM/ha =2,825kg DM/ha.

So if by September 15 you havemany paddocks above 2,825kgs DM/ha and a healthy APC, then you havesilage to make.

Another method to work out theactual hectares you have to skip forsilage is: Area required to feed cows= Target Feed Demand/ha x FarmArea (ha) / Pasture Growth RateExample: 3.0 cows/ha x 17kg DM/cowx 100ha / 60kg DM/ha/day (estimated)= 85ha.Area to close = 100ha minus 85ha =15ha.

MATING MANAGEMENTMating is just around the corner, so ifyou haven’t yet, now is the time to get aplan written out to ensure a successfulmating is achieved.

There are lots of tools and optionsavailable today to ‘‘improve’’ matingperformance, all cost money, but not allmake money. This year look carefully atwhere you are spending your matingdollars.

One option that can be used tocondense calving spread and cost verylittle is to not use CIDRs this spring, butrun a separate herd of your identifiednon-cyclers, and put your covering bullsin with them.

Case studies have shown that thiswill tighten your calving spread, loweryour empty rate, ensure that poorfertility cows are either not retained, andare not passing their genetics onto thenext generation, and all this at low tozero cost.

So what would a programme basedon this approach look like?

1. Tail paint all calved cows fourweeks prior to the PSM (planned start ofmating). As they cycle record theinformation and re-paint with a differentcolour.

2. Metri-check all at-risk cows, or theentire herd, done at least four weeksprior to the PSM.

3. Source correct bull numbers. Getthem on farm early to settle in. Runthem in a secure paddock near thecowshed if possible. Ensure all bulls arechecked and vaccinated.

4. Record all heats — if you haveMINDAPro enter in your heats so thatyou can generate the necessary reportsto assist with mating managementdecisions.

5. If BCS (body condition score) islow in the identified non-cyclers, runthese in a separate mob, and eitherpreferentially feed, or milk OAD (once aday) until they hold to a mating.

6. Mate yearlings one week earlierthan the herds PSM.

7. At PSM run bulls (ratio of 1:25) inwith the non-cycling herd.

8. Complete correct length of AB toensure you have enough replacements.Then bulls go in main herd at a ratio ofat least 1:25.

9. Rotate bulls at least every thirdday. Have at least 50% of bull numbersas a reserve team to provide rest and tocover injuries.

10. Remove bulls after a total of 12weeks of mating. With correct matingmanagement plan/implementation youshould be reducing your mating periodeach year so that your calving spread isshortened allowing a gap betweencalving and mating.

Once you have your planformulated, make sure that everyonewho needs to know, does know,especially new staff.

Continued page 23.


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Managing mastitisBy Steve Cranefi eld — veterinarian in theTe Awamutu fi rm VetEntTe Awamutu.

Fortunately the spring has beenvery good so far. Yet again dairycows have shown us just how

tough they are.Despite some very light condition

cows out there they are calving withouttrouble and there is sufficient grassgrowth to keep them on their feet. Thislight condition will impact on repro-ductive performance but at least wehaven’t lost too many cows!

There has been a significant amountof mastitis this year reflected in clinicalcases treated and high somatic cellcounts.

Over the years there have beenmany excellent attempts to look at all ofthe factors that go towards reducingmastitis (such as the SAMM plan) yetour rates of mastitis and somatic cellcounts continue to rise. This is becausemastitis is a multifactorial disease,

which means it results from manyfactors interacting, including the cow,the environment, the milking machinesand the farmer.

All too often we hear advice on oneaspect of mastitis control that will be themagic bullet and surprise, surprise it’snot. Every farm has different cows,different people, different milkingmachines and different bugs so whilethe latest and greatest idea may workon one farm it often doesn’t on the rest.

A classic example is the farmer that‘never teatsprays and doesn’t get mas-titis’. His success has nothing to do with‘not teatspraying’.

Trial after trial shows that effectiveteat spraying will reduce infection ratesby at least 50% so it has a big impact onBMSCC counts. What it tells us is thaton his farm all of the other factors thatgo toward reducing mastitis are wellmanaged. The picture is also compli-cated by the fact that all farmers havedifferent ideals of what bulk milksomatic cell count they are happy with.Some are content with a cell count of300,000 while others stress if it goesover 100,000.

This is why mastitis managementneeds to be on a farm by farm basis. Itstarts with the history of what has beenhappening on your farm with mastitis inthe past and present, what type of drycow therapy has been used, and if milkcultures have been taken and thereforewhat bacteria we are dealing with.

Most mastitis results from themilking machines so a milking time visit

is the best time to assess the factors thatcontribute to mastitis.

There are many areas to consider,including;• Milking technique: how the cups areput on and taken off, and how long ittakes for the cows to be milked out andthen the cups removed.• The cow: The way the cows flow intoand out of the shed, how well the cowsare milk out and their teat condition tellsus how the cow and the milkingmachine are interacting.• Milking machine; Dynamicmeasurements are taken when themachines are actively milking the cows.This a defining difference to that of yourannual milking machine test and itallows your vet and milking machinetechnician to work together to solveyour mastitis problems. Other factorsassessed are the operating vacuum,pulsation, pipework, right down to theclusters and rubberware.• Teatspraying: This is single mostimportant factor to prevent spread ofmastitis. Spraying technique, type ofteat spraying unit and type of teat sprayand concentration are all assessed.

Mastitis is the number one animalhealth cost on most farms so goodadvice is an excellent investment toreduce the costs in tough economictimes.

Beware of bloat. There is a lot ofclover around and grass is growingrapidly so be prepared by having bloatoil on hand, training staff on the signs ofbloat and keeping your eyes open!

Good practices for mid-spring on the farmFrom page 22.

Take the time to ensure thateveryone has the skills to identifycycling cows and how your matingsystem works — don’t assume any-thing. Get staff to a training day ifnecessary.

One of the biggest causes for poorsubmission rates is that not enougheffort or time is put into observing

bulling cows. Observe cows at leastthree times each day in the paddock.Heat detection needs to happen in thepaddock, it should not just occur at thecowshed. Observe cows before lettingthem out of the paddock twice a day,and when shutting them in the paddocktwice a day. This way you will get atleast another 5% submitted whose tailpaint has not been affected.

FarmWise is running a series ofMating Management field days inSeptember. I will be running one atNoldy and Bev Rust’s farm in Te Pahuon the Wednesday, September 16starting at 10:30am. This will finish at1pm with a BBQ to follow.

If you would like to attend, pleaseRSVP to either [email protected] or027 278 5214.


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Documents

BUSHY DOWNSBUSHY DOWNS HEREFORDS...2009/09/15 · Hauturu possums T rapping, ground-based bait stations and aeri-ally applied baits have all been used in a highly successful possum