Fertiliser use on livestock farms is a good indicator of operator optimism, and the news that Southland farmers have increased their inputs in this area shows their confidence in the future.
While soils experts tell us fertiliser should be a priority in annual spending the realilty is, many farmers have to be flexible to keep cashflow issues tidy.
Years of fertiliser history have built a bank of nutrient reserves on many farms, and this is often called on when profits are low and costs need to be cut.
Tactical use of fertiliser in good returning areas can help keep the grass growing at less expense when cash reserves are low, but seasons of good prices allow the topping up of soils for optimum production.
Economists will be hoping that the boom in agricultural prices will reignite a struggling economy, but farmers will be paying back debt and topping up soils with fertiliser, first.
Fertiliser volumes coming into Southland have increased significantly in the last few months off the back of good meat and wool prices. South Port commercial manager Nigel Gear said the volume of fertiliser coming into Southland from July 1 to February 28 was about 75 per cent higher than the same period the previous year reports The Southland Times.
About 120,000 tonnes were moved through the port in the 2009-10 financial year, but that had increased by about 90,000 tonnes this financial year and a significant portion of that was moved in January and February, he said. Ravensdown Fertiliser Co-op chief executive Rodney Green said its fertiliser volumes into Southland had doubled in the last 12 months and put it down to an increase in meat and wool prices and the continued high milk price. He said maintenance levels for most farms in Southland had still not been met so expected the volume to continue to increase.
Federated Farmers spokesman David Rose said most farmers were expecting to make a loss following the devastation of the September snow storm, but the increase in product price meant many farmers were making what they had originally expected. It did not mean more fertiliser was being used in the region, but farmers were using fertiliser to "maintain grass levels that they did not expect to be able to afford".
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