Wave of dairy conversions in Canterbury sore point for arable farmers

Arable farmers worried about the sector’s future are getting testy about the surge of dairy conversions on Canterbury cropping land. Environment Canterbury has approved 64 dairy effluent consents since the start of last year where land use is changing to dairy, much of it from arable or dairy grazing property. The regional council issued 38 consents last year and 26 consents in the year to June 17 for a total of 55,000 more cows. A decision awaits for another 17 consent applications. [Missing Credit]Federated Farmers arable chairman Chris Dillon. Photo: Gerrit Doppenberg. Federated Farmers arable chairman Chris Dillon said the amount of arable land being converted into dairy was concerning. “There’s still a bit going on up there, probably limited a little bit by the availability to get sheds built from now, but there could be another run of them next year. You don’t fix your industry by half the people pulling out of it. You need critical mass and the support industry. It’s not the way forward for the industry to have the last man standing.’’ He said some of the farm sales were a result of ageing farmers selling up and not being paid for the risk they took to grow crops, as well as high dairy returns. [Missing Credit]About 55,000 more cows will join the Canterbury herd from 38 dairy effluent consents approved by Environment Canterbury last year and 26 consents in the year to June 17. Photo: Tim Cronshaw Cropping farmers are among those converting land, wanting to diversify or tired of lower profit margins, higher operating costs and having to maintain expensive equipment and infrastructure. Mr Dillon said the turnover of arable farms was among many challenges. They included a costly spring planting as fuel and fertiliser prices rise from the on-again Iranian conflict, extra freighting costs expected to absorb a small lift in grain prices, pea processing factory closures and the potential for bird flu outbreak to disrupt grain sales to poultry operations. Among new conversions is Ashmount Farm, near Chertsey, from arable and dairy support farmland by Jim and Sue Van der Poel, Will and Kim Grayling and equity manager Peter O’Connor. The nearly $43 million project has consent to milk about 1700 cows on 426 hectares with more cows aimed to be added to another 202ha of neighbouring land. The estimated cost of converting the main block is about $17,000/ha excluding new cows. Mr Dillon said arable growers were keeping grain and seed merchants posted on their position and working on small gains to strengthen the sector. Among them are developing closer markets, servicing dairying’s growing beef production by supplying calf meal as well as trading, grazing and finishing beef cattle and providing silage and straw to dairy farmers. Arable systems could be based more on livestock, horticultural and arable crops. A NZ Grain trademark showing products are made from NZ grains is picking up steam. Last year’s 38 dairy effluent consents issued by Ecan on land converted to dairying added just under 32,000 cows and 26 consents approved so far this year will increase this by 23,160 cows. The 17 applications still pending involve 16,926 cows. Another 9100 cows are within dairy effluent consents approved for dairy farms expanding their existing operations in the 18 months to June 17, with applications put in for another 5400 cows. Ecan has previously said the conversion interest is driven by market drivers including a higher milk price, agri-debt repayment and the dairy farming outlook compared with other sectors, as well as signalled changes to the national regulatory environment. Consent is no longer required for a land use change to dairy farming as the government works on reforms to resource management laws, but consenting controls remain to protect the environment with existing and new dairy farms needing consent for animal effluent discharges.

Wave of dairy conversions in Canterbury sore point for arable farmers

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