The provision of better comunication services to the rural sector has always been an issue with Federated Farmers, and now they aim to do something about it.

Past rural service businesses set up by farmers  include Ravensdown, Alliance and PPCS meat processors, insurance  company Farmers Mutual , and merchandising firms CRT and Farmlands. have all grown into successful, stand alone businesses.

Now the Feds want another try, and want to 'clip the ticket' on the way to help fund their organisation.

This foray into the telecomunications area will be a challenge however, with huge costs, and a need for an  urban clientel to balance the greater costs of a rural service.

Federated Farmers has set up a telecommunications company, FedzTel, hoping to provide broadband to rural communities reports Stuff. President Don Nicolson envisages Fedztel will partner with existing network infrastructure owners. Communications Minister Steven Joyce said that Fed Farmers and FedzTel had put in a bid to participate in the Government's $300 million rural broadband initiative.

Mr Nicolson says Fed Farmers and its members had helped establish several businesses in the rural sector, including fertilser and insurance companies, meat processor and merchandising firms, but has not retained ownership of any of them, a decision it regretted.

"We are voluntarily funded," he says. "Our board decided we would look to any business that could give us a revenue stream, and [there is] nothing better than the telecommunications sector." Mr Nicolson says FedzTel would partner or form joint ventures with other firms in the sector. We are looking to build a long-term revenue stream."

Federated Farmers was also interested in participating in the Government's $1.35 billion ultrafast broadband initiative."You can't get to rural areas without having built up some urban capacity."