KEY POINTS:
A big stand of pine trees planted by new Federated Farmers president Don Nicolson on his Waimatua sheep farm about a quarter of a century ago is nearly ready to harvest.
On the surface farming may appear fundamentally the same as when Nicolson planted his pines but during
their slow growth the landscape has undergone radical changes.
Agriculture was rocked by the removal of tariffs and subsidies in New Zealand in the 1980s, the dairy industry consolidated, co-operative giant Fonterra was formed and the dairy sector enjoyed a global boom, wine producers are targeting $1 billion of exports by 2010 and the iconic Kiwi sheep is in retreat.
The 2007 agricultural production census by Statistics New Zealand shows the national sheep flock was 38.5 million animals in 2007, down from a high of 70.3 million in 1982.
But farming survived and through innovation, efficiency and productivity gains it bounced back healthier and stronger than it had been for years.
It is still the basis of the economy, Nicolson says.
"The flow through is not often recognised in this economy from the base work that food producers give to this country."
"New Zealanders should be proud of the productivity growth in agriculture," Nicolson says. "It's a hugely understated story."
Nicolson is Invercargill born and bred and still runs the Waimatua sheep farm _ with its 24ha of pines _ his father bought in 1946.
His life as a farmer gives him first-hand experience of the latest sector facing drastic change _ meat.
The 212ha farm runs about 2000 sheep and made a profit of only $2500 last year, Nicolson says.
Alternatively he could simply lease it out to a dairy farmer and make $200,000 plus. It is an option he is likely to take as he takes up his new role as president of Federated Farmers.
"I've tried to make sheep farming my life," he says. "I've given it 26 years ... I've resisted all other options long enough and logic tells me, at $2500 last year, I can't continue using land for a use that is not profitable any longer."
He is not alone. More than 200 sheep farms are likely to convert to dairying during the next two years in Southland and South Otago, he says.
Sheep farmers are demanding change but a number of industry initiatives have failed, with the latest attempt launched last week.
Listed rural services company PGG Wrightson has agreed to buy 50 per cent of co-operative meat processor Silver Fern Farms for $220 million in a deal promoted as a platform for rationalisation and integration of the meat industry.
Nicolson's personal view is that the move by PGG Wrightson could be a catalyst for other discussions, bids, mergers or acquisitions.
"But one thing I do know is that farmers are quite reluctant to give away ownership of business," he says.
Silver Fern Farms needs 75 per cent support from shareholders at a vote expected in September.
"My gut feeling is they will struggle but it's about the sales pitch in the next few months, I'd imagine."
All of Nicolson's working life has been linked to farming in one guise or another. After leaving school he spent a year building walk-in freezers before joining the laboratory at the Ocean Beach Freezing Works in 1975.
"I was aware that we'd gone through an agricultural revolution, industrial revolutions and science had led the way on just about everything really, in terms of farming."
In 1977 he started work for the Ministry of Agriculture and Forestry as a livestock testing officer but on a trip to the National Agricultural Fieldays Nicolson saw a mobile saw mill and a way to make some money.
"We all had the ethic," he says. "Work hard, earn lots."
Nicolson ran his saw milling operation from 1979 to 1982 but still did some part-time shearing.
"I liked getting the sweat running off the end of my nose," he says.
Then his father, who was about 65 years old, made a comment to a friend about him taking over the family farm.
"While I always wanted to be a farmer I never saw the way into my home farm as that next progression."
Nicolson never earned the sort of money he did with his mobile mill but did not regret his new profession.
"I did initially after the 1985 reforms [that removed subsidies]," he says. "I sort of started seeing that gee, I was living in a false sense of security."
He had never thought about how subsidies affected the bottom line and was not ready for the impact of the removal.
"I never thought about it clearly for a couple of years," he says. "I was more worried about surviving."
During the 1990s farming was referred to as a sunset industry _ a term which should have been nipped in the bud, he says.
"From where I sit it was absolutely amazing that as the basis of all trade and wellbeing for this country the biggest chunk of the economy was being told it was no good."
The challenges facing the sector today include the Government's emissions trading scheme, the food miles debate and what Nicolson calls "the freedom to farm".
He says his ethic is that people need to challenge anyone that comes to their property without invitation.
"The reason I'm in the federation is I see the taking of property to an extent that is unfair," he says. "My production is feeding so many outside the farm gate through the privilege of statute."
If farmland was needed for an airport or roading, the Public Works Act would compensate farmers but the Resource Management Act does not have any such clause, he says.
"If the public of New Zealand really want to have a say in an environmental sense it's vital that they learn that compensation has to be paid because otherwise there's a taking of property."
Meanwhile Nicolson says data presented by the Ministry of Agriculture and Forestry in April shows some farmers could not survive the Government's proposed emissions trading scheme.
"The New Zealand farmers have always said they want to be using the land as [efficiently] as they can," he says. "Why would a country want to impose upon itself taxes or charges that put it out of business?"
Animals belching methane was inefficient, he adds.
"Without that pressure we're doing it [making improvements] anyway and there is currently no new tools, no silver bullets in the tool box."
It is sad the New Zealand system of food production and transportation to market has to be defended in the food miles debate, he says.
"I think over time we will move through all this stuff and people will just value the food they can access at a reasonable price.
I think the food producers in this country and the world are starting to be recognised properly.
Obviously international food security is a big, big issue with a growing population."
As much as the agricultural landscape has changed in the last quarter century there will be plenty to keep Nicolson busy as he takes on the top job at Federated Farmers _ a role he never set out to get.
"It's not an ego thing," he says. "It's about doing a job that my forefathers have done, it's about doing a job for an industry that is the backbone of the New Zealand economy."
But a life consumed by Federated Farmers comes at a price and Nicolson travels to Wellington every week for three or four days.
"My family sometimes suffer ... [but] I think they see that I'm doing what I need to do in my life."
Don Nicolson
*Born: February 11, 1957, Invercargill.
*Home: Waimatua, near Invercargill.
*Waimatua Primary School.
*Southland Technical College.
*1975 Ocean Beach Freezing Works.
*1977 Ministry of Agriculture and Forestry.
*1979 Set up a mobile saw milling company.
*1982 Took over the family farm in Waimatua.
*1996 Chairman Southland Federated Farmers Transport and Fertiliser Committee.
*1999 Trustee Southland Electric Power Supply Consumer Trust.
*2002 President Southland Federated Farmers.
*2003 Federated Farmers national board member.
*2004 Chairman Local Government Forum.
*2005 Vice-president Federated Farmers.
*2008 Elected president Federated Farmers.
