Farm confidence reflects strength of primary sector

Federated Farmers' latest Farm Confidence Survey shows New Zealand farmers are in their strongest position in a decade, Agriculture and Trade Minister Todd McClay says.

"The survey confirms what we are seeing across the primary sector. Farmers are profitable, exports are strong, and rural New Zealand is getting on with the job of growing the economy," Mr McClay says.

"Farm profitability is at its highest level since the measure began with 72 per cent of farms profitable and farmers' assessment of current economic conditions the strongest it has been in nine years.

"This strength is being driven by farmers being given the freedom to get on with what they do best, producing the world-class food and fibre that international consumers demand.

"National campaigned on getting Wellington out of farming and removing the barriers that were holding our primary sector back. We have delivered.

"Food and fibre exports are forecast to reach a record $64.3 billion this year. Dairy exports are expected to hit a record $28.6 billion, while meat and wool exports are up 14 per cent to $14.1 billion.

"Farmers are also using stronger returns to build resilience. More than half expect to increase on-farm spending, while around two in five expect to reduce debt."

Mr McClay says the survey also sends a clear message about what farmers want from Government.

"Thirty per cent say continuing to cut red tape should be the Government's top priority. That is exactly what this Government has been doing. We are replacing the RMA, simplifying freshwater farm plans, reducing duplication and taking a more practical, risk-based approach to regulation.

"At the same time we are opening more doors overseas. Just this week Parliament passed the India FTA, which will remove or significantly reduce tariffs on 95 per cent of New Zealand exports once fully implemented.

"There are challenges, particularly rising input costs, and the Government will keep working closely with farmers to manage these. But the direction is clear, when Government backs farmers, cuts unnecessary red tape and opens markets overseas, rural New Zealand delivers."