Question for non Eu / non Uk farmers. ( Regarding Government Subsidies / Payments to farmers)

kiwi pom

Member
Location
canterbury NZ
Fonterra are responsible for their own demise, moving away from a co-operative model (dollar in dollar out ) towards a more corporate structure, with fair share value, the suits in Auckland sucked them in and will now start to bleed them dry, it really is a great pity, the set up was working well for the farmer before.

They got way off track with Theo in charge, I don't know if they are any better now. Despite that the other, supposedly better run competition pay no more for their milk and would pay considerably less if they could get away with it.
That day might be getting closer as Fonterra don't have to take any supply the others don't want anymore.
 

holwellcourtfarm

Member
Livestock Farmer
All Governments around the world "manage" food (or interfere of you see it differently) to some degree. You could argue that as, alongside water, its the only ESSENTIAL for the population they are right to. Most of them like to hide much of that manipulation. In this respect any country claiming not to subsidise agriculture is lying (with the exception of a few small city states who have no agriculture).

Even NZ "helps agriculture to compete" with marketing assistance etc. Its clear that their current government can't face not being in close control of their farmers, something seldom good for the farmers.
 

Pilatus

Member
Location
cotswolds
Worldwide I suppose agriculture could be classed as a commodity producer, especially as far as combinable crops are concerned,and traded by commodity traders, who may trade oil, iron ore etc on the same day. So I ask the unpopular question “ why should agriculture be subsidised/propped up by worldwide government subsidies to agriculture in whatever form they take”?
I appreciate that milk and other perishable agricultural production can’t be classed as a commodity, so will be marketed differently, but still governed by population “demand”.
If some countries do subsidise oil, gas, iron ore and coal production , I will have to eat humble pie ;)
 

Kiwi Pete

Member
Livestock Farmer
Governments are broke, @MX7

it's taxpayers footing the bill, not the government's money.

Same as "helping" people get their first home, it sounds great at face value, but really it doesn't make it any easier to get on the ladder

it also begs the question, if we rely on transport to get things from A to B, why isn't the transport industry double-dipped with money?
 

Pilatus

Member
Location
cotswolds
Governments are broke, @MX7

it's taxpayers footing the bill, not the government's money.

Same as "helping" people get their first home, it sounds great at face value, but really it doesn't make it any easier to get on the ladder

it also begs the question, if we rely on transport to get things from A to B, why isn't the transport industry double-dipped with money?
When I say “ Government” , I do realise that subsidy money for whatever cause, comes from taxes from us and the taxes from industry profits also excise duty on fuel etc , etc, etc.
 

Kiwi Pete

Member
Livestock Farmer
When I say “ Government” , I do realise that subsidy money for whatever cause, comes from taxes from us and the taxes from industry profits also excise duty on fuel etc , etc, etc.
I like to make that distinction because, "why" would the taxpayer see fit to control the supplies of these commodities or make the cost of producing them creep up?
You can see the gov't motive for doing so, but not so much why the taxpayer would or should.

It's not like the fishing crews get a backhander for raping the oceans, although the Aussies seem to help pay for their coal to be shipped offshore
 

holwellcourtfarm

Member
Livestock Farmer
Worldwide I suppose agriculture could be classed as a commodity producer, especially as far as combinable crops are concerned,and traded by commodity traders, who may trade oil, iron ore etc on the same day. So I ask the unpopular question “ why should agriculture be subsidised/propped up by worldwide government subsidies to agriculture in whatever form they take”?
I appreciate that milk and other perishable agricultural production can’t be classed as a commodity, so will be marketed differently, but still governed by population “demand”.
If some countries do subsidise oil, gas, iron ore and coal production , I will have to eat humble pie ;)
Oil, gas and coal are heavily subsidised as well. None of these markets are a free as they are made out to be.

Oh, and milk is very much another commodity. Unless you are talking about cleverly marketed single origin raw milk, that's a premium product.
 
Governments are broke, @MX7

it's taxpayers footing the bill, not the government's money.

Same as "helping" people get their first home, it sounds great at face value, but really it doesn't make it any easier to get on the ladder

it also begs the question, if we rely on transport to get things from A to B, why isn't the transport industry double-dipped with money?
Are governments broke???
Can you run a business like a government?
The current NZ government is a classic example throwing cash around like there is no tomorrow, pee poorly managed, no concept of debt repayment, little to no accountability from the media and living beyond its means.
Or is that their plan, to create excessive debt to be written off/bailed out by the IMF?
The question that should be being asked is what do they want in exchange.....
 

stewart

Member
Horticulture
Location
Bay of Plenty NZ
All Governments around the world "manage" food (or interfere of you see it differently) to some degree. You could argue that as, alongside water, its the only ESSENTIAL for the population they are right to. Most of them like to hide much of that manipulation. In this respect any country claiming not to subsidise agriculture is lying (with the exception of a few small city states who have no agriculture).

Even NZ "helps agriculture to compete" with marketing assistance etc. Its clear that their current government can't face not being in close control of their farmers, something seldom good for the farmers.
Surely most countries give "marketing assistance" to different sectors, that is how the world operates, to describe this as a subsidy is pushing the definition too far, particularly in the context of this thread.
 

stewart

Member
Horticulture
Location
Bay of Plenty NZ
Worldwide I suppose agriculture could be classed as a commodity producer, especially as far as combinable crops are concerned,and traded by commodity traders, who may trade oil, iron ore etc on the same day. So I ask the unpopular question “ why should agriculture be subsidised/propped up by worldwide government subsidies to agriculture in whatever form they take”?
I appreciate that milk and other perishable agricultural production can’t be classed as a commodity, so will be marketed differently, but still governed by population “demand”.
If some countries do subsidise oil, gas, iron ore and coal production , I will have to eat humble pie ;)
The scenario you describe of agricultural commodities being traded by commodity traders is the situation you have in the UK, which is why I have often said it is such a shambles, there is no coordinated marketing and very little if any farmer ownership of the infrastructure, it does not work like that everywhere, many countries around the world both inside and outside the EU operate farmer owned cooperatives, whereby farmers have some control over their goods further up the supply chain, Friesland Campina, Arla, Fonterra, Tatua, Dairy Farmers of America et.al.
Milk products are just another commodity, New Zealand exports 95% of its dairy production in one form or another and accounts for 35% of the worlds export trade in dairy products, I no longer milk cows moving to horticulture when I emigrated, 98% of what I grow is exported, even though it is a perishable product, you just have to get out there and sell it.
 

holwellcourtfarm

Member
Livestock Farmer
Surely most countries give "marketing assistance" to different sectors, that is how the world operates, to describe this as a subsidy is pushing the definition too far, particularly in the context of this thread.
That depends on the level of assistance.

The UK DTI excelled itself at the 2019 World food fair by putting out the promotion of the UK to tender and awarding it to a nameless ecological NGO whose adopted marketing was around how we are banning Neonicotenoids to reverse the decline we've caused in our insect species. The trade stand was a giant beehive but not to promote honey!
 

Bruce Almighty

Member
Mixed Farmer
Location
Warwickshire
Are governments broke???
Can you run a business like a government?
The current NZ government is a classic example throwing cash around like there is no tomorrow, pee poorly managed, no concept of debt repayment, little to no accountability from the media and living beyond its means.
Or is that their plan, to create excessive debt to be written off/bailed out by the IMF?
The question that should be being asked is what do they want in exchange...
..

Sounds just like New Labour under Brown & Blair

I've also read that the current NZ government are making things difficult for livestock farmers.
Again just like Brown & Blair, mind out for foot & mouth & TB. Blair knew there should have been a badger cull in the early noughties.

A word of advice Kiwis, if they ever suggest farm assurance, tell them to f**k off
 

kiwi pom

Member
Location
canterbury NZ
Sounds just like New Labour under Brown & Blair

I've also read that the current NZ government are making things difficult for livestock farmers.
Again just like Brown & Blair, mind out for foot & mouth & TB. Blair knew there should have been a badger cull in the early noughties.

A word of advice Kiwis, if they ever suggest farm assurance, tell them to fudge off

Already have it to some degree. Depending on what you produce and who you supply there are hoops to jump through.
Global and NZ G.A.P being one.
Fonterra has plenty of rules for suppliers.
There's not really as much open market produce here so less need for one assurance scheme to cover everything. Individual buyers set their own standards. Each Country we export to has different rules and requirements.
Big push on H&S in recent years too.
 

stewart

Member
Horticulture
Location
Bay of Plenty NZ
Sounds just like New Labour under Brown & Blair

I've also read that the current NZ government are making things difficult for livestock farmers.
Again just like Brown & Blair, mind out for foot & mouth & TB. Blair knew there should have been a badger cull in the early noughties.

A word of advice Kiwis, if they ever suggest farm assurance, tell them to fudge off
As @kiwi pom has pointed out we already have a farm assurance scheme, this is required to sell into export markets, most countries adopt the EU scheme although some countries have different demands as well, China has stricter criteria than the EU. Please don't fall into the trap of thinking that only the UK has rules and regulations to adhere too or that you are the only ones sticking to the rules, it just isn't so, as a point of interest I can think of only a few dairy farms in the UK that would meet the rules to supply Fonterra.
 

Kiwi Pete

Member
Livestock Farmer
The scenario you describe of agricultural commodities being traded by commodity traders is the situation you have in the UK, which is why I have often said it is such a shambles, there is no coordinated marketing and very little if any farmer ownership of the infrastructure, it does not work like that everywhere, many countries around the world both inside and outside the EU operate farmer owned cooperatives, whereby farmers have some control over their goods further up the supply chain, Friesland Campina, Arla, Fonterra, Tatua, Dairy Farmers of America et.al.
Milk products are just another commodity, New Zealand exports 95% of its dairy production in one form or another and accounts for 35% of the worlds export trade in dairy products, I no longer milk cows moving to horticulture when I emigrated, 98% of what I grow is exported, even though it is a perishable product, you just have to get out there and sell it.
I just sell grass to grass farmers, a tough sell at times and very easy at others.

Hence I am kinda torn, as these rules/regs and "holding pen scenarios" affect the proper farmers they actually make our marketing job easier.

We basically use nothing but wire, time, and waterpipe and none of these inputs are on the likely-to-be-regulated list in the forseeable future; as the water entering our farm landscape is cleaned on the way through it, our farm environmental plan writes itself to an extent.
 

Farmer Roy

Member
Arable Farmer
Location
NSW, Newstralya
Many Thanks for the above,👍👍
I have quickly read through it and it is very interesting, eye opening. Nothing in life is quite what one thinks :scratchhead: :scratchhead:
From the report it does seem that those of you who farm in Australia and New Zealand have a rough deal compared to the rest of the world farmers,although you can’t do anything about it what do you think of that situation??

err, I certainly don’t think we have a “rough deal”. Exactly the opposite, in fact.

the lack of any safety net or support keeps our industries vibrant & innovative & fresh, I believe
 
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