The following press release was received from Westpac.
Westpac NZ and Lincoln University have released research that finds agile farm management will be critical in reducing emissions and adapting to climate change.
Authored by Lincoln University’s Agribusiness and Economics Research Unit on behalf of Westpac, The Westpac NZ Agribusiness Climate Change Report assesses the risks and opportunities presented by climate change, as well as the sector’s vulnerabilities and potential responses.
Westpac NZ Head of Agribusiness Tim Henshaw says the report and a series of factsheets were designed to provide Westpac customers and other farmers and growers with impartial information about the way climate change may affect their location and type of production, and how they can respond.
“Importantly, the report finds there is already a range of existing management options available to assist farmers in strengthening the physical resilience of their farming systems and meeting New Zealand’s 2030 agriculture climate targets, with only a few requiring an initial investment of capital.
“However, applying these options more widely will require uptake of best practice farm management. This may require a significant uplift in skills and training to ensure a greater number of farmers have sufficient expertise to both reduce emissions and adapt to climate change.
“Therefore upskilling at an individual level, and lifting capability across the wider sector, will be critical.”
Mr Henshaw says the report makes information relevant to farmers and growers by exploring credible case studies.
“For example, it looks at the effect of drought on a dairy farmer in Canterbury, and the impact of warming winters on kiwifruit growers in the Bay of Plenty.”
He says the optimal response to climate change will be different for every producer.
“There is no single off-the-shelf solution. I’d encourage primary producers to think about how the climate is changing in their part of the country, and what effect that will have on production. They also need to consider what expertise they have available to adapt their operations, and plan to fill that gap if it exists.”
Mr Henshaw says the report also explores the opportunities that may arise for producers that adapt quickly.
“In some cases land may become suitable for different types of production that were not previously viable.
“Other commercial opportunities may arise if individual producers or the wider New Zealand industry take a leadership position on tackling transition risks like changing consumer preferences and trade challenges.
“In another finding, the report also assesses the way de-stocking combined with improved productivity can help both reduce emissions and maintain profitability.
“Many initiatives should be regarded as ‘win-win’ as they will have side benefits such as improving soil health or biodiversity.”
Lead author of the report, Lincoln University Professor Anita Wreford, says adaptation will be crucial, but has its limitations.
“There are very useful actions farmers should consider in the short and medium terms.
“However, if temperatures rise significantly there will come a time at which current adaptations are no longer effective. That’s one of the many reasons it’s critical every effort is made to avoid as much warming as possible.”
She says there is scope for further research into the enduring effectiveness of adaptation practices under a changing climate.
“Because astute land management will be critical in responding to climate change, there is also a need to increase training of rural professionals to support farmers and growers.”
The report was produced as part of a wider body of work undertaken by Lincoln University for Westpac NZ looking at the impact of climate change on agriculture in New Zealand.
Mr Henshaw says Westpac can play a key role as a lender in helping farmers and growers prepare for a warmer future.
“Earlier this year we launched a pilot of our new Sustainable Agribusiness Loans with a small group of farming customers.
“The loan is the first of its kind to require a customer to meet all parts of the Sustainable Agriculture Finance Initiative guidance. This guidance includes practices to reduce emissions, improve long-term resilience and deliver more sustainable outcomes in terms of water, waste, pollution and ecosystems.”
Once farmers commit to meet the guidance, they have two years to achieve that goal and will be supported with discounted loan pricing.
Westpac plans to make the loan available to its agri customers in 2023.
Download the Report here.
27 Comments
This is exactly where we have to go.
Despite the fierce Bernays-originated propaganda emanating from the likes of GBH.
There is a whiff of these folk arguing for more research funding, but the main message is unequivocal, and absolutely correct. What they will, perhaps, never get to discussing, is that 'agribusiness' is impossible - in anything resembling current form - ex fossil energy. Meaning those 'loans' will be increasingly non-underwritten.
Don't worry pdk, just heard of more farms locally going into trees. Carbon farming is fast becoming the only game in town for sheep and beef and probably for many marginal dairy as well.
...what flavour are these trees ? ... 'cos there'll be nothing else to eat ...
Does carbon farming reduce emissions ... or just shift the problem around ?
Yep happening in Holland too, there will be lots of trees but no food to eat! https://www.telegraph.co.uk/world-news/2022/11/28/netherlands-close-300…
There will be plenty of food. It'll just be grown in a huge warehouse. Apparently.
https://www.rnz.co.nz/news/world/479132/lab-grown-chicken-safe-to-eat-say-us-regulators
and
Brave new world.
YOU will own nothing and be happy, WE will own everything and be even happier!
so plant enough trees to qualify for ETs , and continue to graze. Best of both worlds.
there is still less farmland in forest conversion than there was forest to farmland conversion 20 - 30 years ago . The sky is not falling .
More likely get worst of both worlds. Poor quality stock and poor quality trees.
not in my experience . admittedly limited , but the cows love fodder , especially in summer, and its got zinc and other minerals in it . Grass grows better in the shade in summer too.
Your 'admittedly limited' experience is showing.
Plant some italian alders , and see for yourself.
Planting some of these ornamental trees in large areas of pasture can be a total waste of time. Grass grub beetles love the leaves and will strip a young tree overnight. Currently we are battling with plantings. Its devastating. I see my young cherry got done over a few nights ago. Totally stripped. Minor compared to the shelter trees though. Ah well.
Trees also suck a considerable amount of moisture from the ground. The further you get from a tree, the better the pasture is. Trees have a place and a purpose, but growing more pasture is not one of them.
That's why the Italian alder is good, it's roots go straight down. A big totara will suck a paddock dry.
Oh , the grass grub beetle devestated my fruit trees , but didnt touch the alders. at least not I noticed , and they are now 15 years old , seem to be the hardiest of all the trees ive planted. Roots go straight down , and they fix nitrogen . cows eat the leaves and young branches , but leave the old bark in most cases.
Good to know Solardb. Will have to give some a go. Why they pick out a tree and strip I dont know. Finding answers generally just fits the backyard/section or orchard scenario. We originally wanted willow but they are now infested with those things that bring the wasps. Watertraps can work, they do a good job of drowning themselves. But thats not a solution over acres of pasture.
Actually, thinking back, I had goats in those days, so would have blamed damage to the shelterbelts on them. Didn't think of the beetles as a culprit, even though I could see them eating my fruit trees.
The predicted warming for this century is predicted to be about the difference between farming in Southland v farming in Waikato. Both are highly productive regions and I have no doubt farmers will find the adaptation easy. The main risks are the non market driven, govt anti farming regulations.
... to my mind the greatest adaptation our farmers will need is to keep up with innovative new methods of food production : vertical farming , factory farming & the like ... food production without massive quantities of fossil fuel inputs is the goal ...
GBH- where is the energy input, to replace the fossil energy?
Food is energy - so the question of all labs (and vertical planes) is how much and where from?
The question is, if Southland becomes Waikato, what does Waikato become? Cairns, or maybe Alice springs?
Yum , bananas pineapples , rice. all locally grown.
Sugar cane, carried to the mills on steam hauled trains running on 2 foot gauge tracks, like Mossman of yore. Choo-choo.....
Big late frost this year in the upper north. Places like Te Kuiti, BOP, Hamilton. Kiwifruit and blueberries hit hard. I bet the bananas werent happy either.
heyre growing bananas in Whitianga , Wouldnt try it much south of there , unless it is in a frost free microclimate.
It's a great question, Brisbane might be a better answer though. I'd like to see more real world discussion like this, farming systems can be very productive at any latitude. Most of the worlds food comes from much warmer places than NZ.
WJ - you miss the point; the Waikato will then be like Norther Queensland.
Logic is a funny thing - so many people only address one variable at a time, eh?
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