Agsafe Weekly Rural Report

Finance: The NZ exchange rates were steady to easier over the week finishing over the 60 cent mark again against US dollar. Brent Crude rose to $73.25/barrel up from the lower range of recent weeks that were between $60 & $65/barrel.

Wool: Wool prices are steady but at a low unsustainable level. We look forward to the Governments announcement taking effect.

Beef, Sheep & Venison schedules: Meat schedules are firming across the board as demand for red meats increases internationally. The interest in beef is pushing feeder and weaner calf prices up in anticipation of even higher prices.

Dairy Prices. The Pulse Auction has indicated a slight drop in WMP, but prices remain strong with WMP over the $US4000/tonne. The $7.50 interim payment offered by Fonterra for the new season will allow the farmers the opportunity to make some good decisions.



Soil conditions are getting saturated after being dry for so long across much of the Nth Is. Damaged pastures are slow to recover. The “Green Environmental Gestapo” are looking for reasons to bring in more anti-farming regulations so watch the grazing pressures and do your best not to pug or damage the pastures. With easy access to drones, they can view even the remotest part of the farm!!.


You can hear us live on the radio on Monday morning at 7.35 am with Brian Kelly on Country Sport Breakfast – Radio NZ Gold AM. 792 AM in the Waikato & 1332 AM in Auckland.

Jim’s Weekly Rant:

This is more of a review of the weeks announcements and activities as they have been interesting. It’s mid-winter and the Fieldays are over for another year. We have a new deputy PM and the government is promoting the economic recovery through the rural sector. For once they have expressed the difference between the rural sector and others with food & fibre returning $60 billion compared with the previous governments (including John Key’s government) economic darling of tourism which is only returning only $9 billion to the NZ coffers. I have been frustrated over the years reminding politicians that the rural sector is wider than “just” dairying being their comparison with tourism. The government has also announced some new policy stuff with new support to the Rural Support Trust via the MPI and then there is the legislation to restrict farm-to-forestry conversions. The forestry conversion legislation was an election platform and now it will be legislated in October 2025 with the conversions back-dated to 4th December 2024. It is a frustration that it takes so long to get some simple legislation passed and operative. So what will the proposals mean? They will restrict conversions to exotic forests on high-to-medium versatile land which has Land use Category (LUC) of 1 to 6. It will limit the conversion of LUC 6 (medium versatility) to 15,000 ha per annum and those converting will have to apply via a ballot system. It will allow up to 25% of a farm in LUC 1 to 6 to be planted for the Emissions Trading Scheme (ETS) with areas planted registered against the title, but even the 25% limitation, it is too high. Another simple question would be - why haven’t they introduced similar legislation to limit solar farm developments on highly productive land as they are a blight on the landscape and remove land from production forever? The 20% first year depreciation is also being a hit with farmers and is likely to be a major catalyst in kick-starting many rural businesses and rural towns – a throw-back to the budgets of the 1960’s to 1980’s where a farmer/business carrot was offered!!. And now the government provided houses will have to have wool carpets which is welcomed by every sheep farmer in NZ. But will the wool carpets be cost competitive if wool prices rise to a sustainable level? I was also interested in the Labour & Greens rural policies and found the “wealth tax” on all assets over $2 million would be taxed annually at 2.5% or 1.5% for assets held in trusts, they would return agriculture to the ETS while at the same time increasing ACC levies and tax rates, but the worst would be the 33% tax on inheritances for transfers over $1 million penalizing intergenerational farms. The effect of the respective policies were reflected in the Federated Farmers commissioned poll taken at the Fieldays which showed support for the Labour and Green combined at 5% with National Act & NZ First at 81%. Perhaps some find it hard to understand the difference between a government that wants things to happen and the people rewarded, albeit a little slowly, verses a government that wants to tax businesses and families out of existence. The poll taken at the Fieldays is in contrast to the poll released on Thursday as that poll showed another swing to the left and a move back to socialism which NZ cannot afford. It is half-way to the next election and perhaps the announcements this week around agriculture are just the first shots fired in the next election cycle.