INDEPENDENT NEWS

Arable on the Rise

Published: Wed 29 Aug 2012 09:45 AM
From the Ministry for Primary Industries
For immediate release
Arable on the Rise
Arable farming is on the rise again, on the back of good prices and consistently good profitability.
The Ministry for Primary Industries (MPI) has released an analysis of arable production and profitability as part of its annual Farm Monitoring Report series. The report is based on a model of a Canterbury cropping operation and an overview of typical financial performance, based on information gathered from a sample of growers and industry stakeholders.
MPI’s report shows arable farm profit before tax increased 136 percent on the previous poor season, to $448,700 for the year ended June 2012. This was driven in part by good yields, with wheat yields reaching 10.6 tonnes per hectare on average in Canterbury, and also cereal and seed crop prices were up.
Arable farmers are planning to restore cropping area back to more typical long-term levels. This, along with a rise in small-seed crop prices, is expected to lift revenue for this season. A large crop carryover from 2011/12 will also help with cash flow.
Forward contract prices for wheat and barley have been going up in recent months because of severe drought in the United States.
These factors should help them achieve high profit levels again in 2012/13.
For the longer term, arable farmers are cautiously optimistic as world food demand increases, while locally the opportunities for dairy support increase.
Many croppers consider that investment in irrigation, either in new systems or upgrading existing systems, is essential to maintain their business viability. The general trend has been for farmers to invest in irrigation rather than more land.
To view the full report, go to the Publications section of the MPI website, www.mpi.govt.nz
This report is one of a series of Farm Monitoring reports which are being released currently.
END

Next in Business, Science, and Tech

Major New Zealand Upgrade Programme Projects Go To Tender
By: NZTA
Reserve Bank Seeks To Preserve Benefits Of Cash
By: Reserve Bank
Double-dip recession next year, but housing rolls on
By: RNZ
Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific
By: Microsoft New Zealand
Fonterra Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production
By: Fonterra
New Zealand Remains In Top 10 For Energy Balance
By: Business NZ
Businessman Eric Watson sentenced to a four-month jail term
By: RNZ
OECD Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020
By: OECD
Spark Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities
By: Spark
Monthly Migration Remains Low
By: Statistics New Zealand
Proglacial Lakes Are Accelerating Glacier Ice Loss
By: University of Canterbury
Fonterra Sells China Farms
By: Fonterra
New Zealand Moves To Protect Cash
By: Next Payments
Zoom Your Lens Over Bright Spots Dazzling In The NZ Economy
By: Kalkine
New Zealand And Uruguay Unite On Reducing Livestock Production Emissions
By: New Zealand Government
View as: DESKTOP | MOBILE © Scoop Media