Early Bird I Thursday June 13th 2024

Finance Minister requests an inquiry into the banking sector, farmers told not to miss out on food and fibre opportunities, and thousands flock to the 56th annual Fieldays at Mystery Creek.  Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather! Finance Minister requests an inquiry into the banking sector Finance Minister Nicola Willis has responded to Federated Farmers' call for an inquiry into rural banking.  Willis has written to the chairs of the finance and expenditure and primary production committees, requesting a select committee inquiry into banking competition, with the finance and expenditure committee leading and the primary production committee focusing on rural banking. Federated Farmers presented their concerns to Parliament’s primary production select committee last month, urging for an inquiry into the issue. MPs on the committee were frustrated by the limited time available to hear the evidence regarding rural banking challenges. Last week, banks appeared before the primary production select committee, where they claimed to be "trusted advisers" of farmers. However, chairperson Mark Cameron expressed dissatisfaction with the bank lobbyists' responses. This new inquiry is separate from the Commerce Commission’s market study into retail banking, which was ordered by the previous government and excluded rural and business banking, a point of contention for some economists like Cameron Bagrie. Willis's requested inquiry will cover broader aspects, allowing business owners to present evidence while keeping rural banking as a key focus. Willis expects the inquiry to involve submissions from banks operating in New Zealand, with chairpersons and chief executives available for questioning. The primary production committee, comprising MPs with farming experience, will play a significant role. Opposition criticise government's decision to exclude agriculture from ETS Labour agriculture spokesperson Jo Luxton has criticised the government for risking market access for agricultural exports with its latest decision on the Emissions Trading Scheme (ETS). The coalition government confirmed that agriculture will remain excluded from the ETS, and it is dismantling the sector-led group He Waka Eke Noa, replacing it with a new Pastoral Sector Group to address biogenic methane. The government plans to amend the Climate Change Response Act to exclude agriculture, animal processors, and fertiliser companies from the ETS by 2025. This decision has been welcomed by Federated Farmers, Beef + Lamb NZ, and DairyNZ, but has faced criticism from Labour and the Greens. Labour argues that the government is delaying climate action, which will eventually become more costly and damaging to the farming sector and broader economy. Green Party co-leader Chlöe Swarbrick also criticised the government, accusing it of delaying necessary climate action by removing agricultural emissions from the ETS.  The ACT party has praised the government's decision, recognizing farmers as vital to the economy and advocating for a balanced approach to emissions without harming rural productivity. The government has indicated plans to introduce a fair and practical pricing system by 2030, with the agricultural sector seeking clarity on targets, timeframes, and incentives for effective emissions reduction. Farmers told not to miss out on food and fibre opportunities New Zealand's food and fibre sectors are being told that "massive" opportunities lie ahead, provided farmers remain engaged, according to a new report. Consultancy firm KPMG released its "Today’s Potential, Tomorrow’s Possibilities" report for 2024 at Fieldays, revealing both the highlights and challenges for these sectors, which earned $57.4 billion in exports in the year to June. Over 150 industry leaders in food and fibre fields contributed their perspectives, identifying key priorities for the upcoming year. Top priorities included maintaining world-class biosecurity, acting on gene editing discussions, and signing high-quality trade agreements. Concerns about staff morale due to financial pressures were noted, but there was also optimism about the future of individual businesses. KPMG's global head of agribusiness, Ian Proudfoot, emphasized the significant opportunities available, provided the sectors can adapt swiftly. He highlighted the importance of understanding and responding to global volatility, which poses significant challenges but also opportunities in decarbonisation and bio-based economic models. The report also recognized the Coalition Government's efforts in promoting gene editing and biological technologies, cutting red tape for resource consents like water storage, and strengthening international trade relationships. However, it raised concerns about government funding cuts to scientific research, the absence of a national food strategy, growing mental health issues, and the need for more bio-economic solutions amid accelerated disruptions to global food systems. The report also advised industry leaders to adapt their leadership styles to meet the needs and expectations of a new generation of employees, ensuring the sectors' continued growth and success. Thousands flock to the 56th annual Fieldays at Mystery Creek The New Zealand Fieldays, the largest agricultural event in the Southern Hemisphere, has kicked off with a strong focus on politics, new equipment, and the ever-popular tractor pull contest. Despite concerns about a potentially smaller turnout due to economic constraints, thousands have flocked to the 56th annual event, demonstrating the resilience and enthusiasm of the agricultural community. Prime Minister Christopher Luxon and Agriculture Minister Todd McClay have made appearances, with Luxon addressing industry leaders about the government's efforts to curb inflation and interest rates, which he believes will benefit the entire economy and the food and fibre sector. Luxon emphasised the government's ambition to double the number and value of exports over the next decade and criticised the previous government's regulatory approach, which he claimed hindered the sector's growth. Political parties are taking advantage of Fieldays to connect with rural communities. National, ACT, and New Zealand First all have prominent presences at the event, with Labour leader Chris Hipkins scheduled to visit stalls and speak at the new Advocacy Hub on Friday. The National Party is using the event to launch the 'Rural Nats' group, a special interest group aimed at addressing rural issues and developing agriculture policy. National MPs from five regions, including Barbara Kuriger, Mike Butterick, and Miles Anderson, will lead the Rural Nats in their respective areas. OSPRI to take control of M bovis Control of Mycoplasma bovis (M. bovis) in New Zealand is set to transition to a national pest management plan by the end of this year, as announced by Biosecurity Minister Andrew Hoggard.  Responsibility for M. bovis management will shift from MPI to OSPRI. Currently, there are no infected farms, and the focus remains on national surveillance of cattle. The transition to a national pest management plan represents a significant step forward and will equip OSPRI with the necessary tools to build on the success achieved so far. The minister provided data on the costs and extent of the M. bovis infection, revealing that 282 confirmed properties have been cleared, eight farms are under notice of direction, and twenty-five farms are under active surveillance.  $286.1 million has been paid in compensation, and 2961 claims have been processed. See omnystudio.com/listener for privacy information.