Rural workers have gained an overall 6% increase in wages for 2008 - eclipsing the national average wage by more than $2000 - and stand a chance of being partially sheltered from some recession factors this year.
The 2008 Federated Farmers/Rabobank farm employee remuneration report has revealed the largest gains in several sub-categories since the survey began six years ago, Federated Farmers president Don Nicolson said when contacted yesterday.
Farm wages overall had increased 6% to $41,914 for the year to August while the national average wage for the year to June was $39,517.
For farm workers, taking into account both salary and other benefits such as housing and farm-sourced food, the overall package average is worth $46,374.
Despite sheep and beef farming profitability being "at its worst in 50 years" for 2008, those farmers had to up their rates substantially as the dairy sector "stole" workers through offering higher wages, Mr Nicolson said.
"[Sheep and beef] workers, without realising it, are getting more benefit than the farm owner in some instances," Mr Nicolson said of that sector's overall 3% rise, and 20% rise for its farm managers.
In the face of falling commodity prices world wide, and New Zealand's sinking into economic recession, Mr Nicolson did not believe 2009 would be without more rural wage increases, underpinned by a shortage of workers in the rural sector.
"Agriculture has been seen as not sexy to be in. Some categories have individuals on more than $100,000, depending on their status.
"Farmers have got to meet the [wages] market, regardless of what commodity prices are doing,"
While rising unemployment in general would "put an end to excessive, large expectations" of pay rises this year, staff would have to be retained and would expect some form of rise, he said.
Mr Nicolson noted the South Island average wage was higher than the North Island because of the southern boom in dairying, with 11 of 13 southern job categories higher than their northern counterparts.
"A quick check of the online job sites has just under 500 jobs listed right now and that's only a snapshot in time.
"We literally need thousands of people to take up farming in order to cover retirements, people leaving the industry as well as filling the new jobs being created," he said.
Casual skilled employees earned on average $19.99 per hour (up 5%) while unskilled casual staff earned $17.91 per hour (up 14%), with casual rates highest in the North Island.
Rural wages
Rise in wages*
Arable up 19%
Dairy up 6%
Sheep and beef up 2%
Sheep & beef managers up 20%
Dairy managersup 20%
Tractor driversup 15%
Unskilled casual labourup 14%
Casual skilledup 5%
*Rural wages up 6% overall (cash in hand), or up 4% with accommodation, food etc benefits factored in.
