Federated Farmers tells government’s climate inquiry farmers need to ‘farm for a rainy day’

Federated Farmers says the Government climate adaptation framework needs to include policies allowing flexible land use so farmers can adapt to climate change.

In a submission to the Government’s climate inquiry on Wednesday, the farmers’ lobby group says it views managed retreat as both a public and private concern.

Paul Melville, Federated Farmers’ general manager of policy and advocacy, told Parliament's Finance and Expenditure Committee (FEC) the climate was changing and farmers will need to continue to adapt to it. 

“It is important [that] government measures enable farmers to adapt through land use flexibility, but also investment in good infrastructure and good signals around managed retreat,” he said.

“Flexible land use policies for farmers can give information on what a changing climate will bring.”

Federated Farmers doesn’t support an emergency levy and fund that has been proposed by others in the rural sector.

Melville said farmers “need to farm for a rainy day” whether facing a $3 farmgate milk price payout, 10% interest rates, or drought – or all three. 

He added that it was up to farmers to manage this risk along with a “positive relationship” with their bank. 

But changes in New Zealand’s banking sector now meant farmers were forced to sell during tough times, rather than receiving support through the “lean” years.

Under investment

The FEC was given the responsibility of determining how NZ manages the risks and expenses associated with future extreme weather events back in May by Climate Change Minister Simon Watts.

Through a climate inquiry, the FEC plans to provide recommendations and principles on a climate adaptation framework and report back to Watts on September 5th.

Federated Farmers believes managed retreat is both an issue of public and private concern. 

Melville said in some cases, public infrastructure will need to be shifted and there needs to be “long term signals” to communities.

“Rural communities have suffered in recent times from under investment in infrastructure, and again, we see it as the role of government to provide resilient infrastructure to rural communities,” he said.

“So it's just a case of drawing that distinction between managed retreat for the public good, but also making sure the signals are there for private farms, private landowners.”

Melville said water storage is also something farmers will need to adapt to in a changing climate –but if done well will also allow economic growth to occur in those communities.

FEC deputy chair and National Party MP Catherine Wedd asked Melville if he thought water storage was the only way forward for some NZ provinces to actually mitigate climate change.

“I think it's one of the many adaptation tools we need,” he replied. “Without water storage, you would see a much more abrupt adaptation than if you could have the ability to have more water storage.”

Back in June, the Government announced a six year delay to on-farm greenhouse gas emissions pricing which had been promised during last year’s election.

Farm-related emissions from agriculture, animal processors, and fertilizer companies will remain unpriced until before 2030 when the Government aims to establish a separate pricing system for the sector. 

Watts said in June the Government will allocate $400 million over the next four years to develop tools and technology to reduce on-farm emissions. This investment includes an additional $50.5 million for the New Zealand Agricultural Greenhouse Gas Research Centre.

Federated Farmers is a voluntary, member-based organisation representing farming and other rural businesses. According to the group, it currently represents 12,000 farmers across the country.