Liam Dann: Two philosophies vie for farmers' approval

For the agricultural sector, this election has become bigger than any one issue, it has become a philosophical choice about the country's future path, an industry leader says.

"One party is offering a social agenda and the other is offering an economic agenda," said the farmer and corporate leader, who preferred not to be named. "From my point of view, I believe you've got to focus on the economy. Everything else cascades from there."

Faced with the real prospect of three more years of Labour Government, few primary industry leaders are prepared to stake their colours to the mast publicly. But it doesn't take a doctorate in political science to work out that their sympathies lie on the right.

Even Agriculture Minister Jim Sutton (himself a former farmer) now seems at odds with the widely held industry philosophy that economic success provides a foundation for the nation and takes priority over social and environmental policies.

In a speech to wine growers in Gisborne yesterday, Sutton spoke of his belief in the "three-legged stool" of sustainability.

"You have to have economic sustainability, environmental sustainability and social sustainability. If one is missing, or one is bigger than the others, the stool falls over."

Wrightson deputy-chairman and rural investor Craig Norgate said there was concern in rural communities about the arrogance creeping into the Labour regime.

There was a feeling that the sector was being taken for granted. Farmers were getting more and more regulations thrown at them.

"It's give-a-guy-a-break time."

The biggest issue for most farmers was compliance costs.

"Our core offering to the world market is based on a low-cost farming system and we're increasingly burdening farmers in a way that is consistent with what stuffed European agriculture."

Norgate said things like local government legislation, employment law and health and safety regulations were making life really tough.

"All that form filling makes it hard for small businessmen, which is exactly what most farmers are."

Some of Norgate's concerns are shared by Federated Farmers, a non-partisan organisation that includes tax cuts, rates reductions and reform of the Resource Management Act (RMA) in its list of key issues. National's primary sector policy statement reads rather like a Federated Farmers wish list.

Any attempts to change land access laws will be scrapped, as will plans to microchip working dogs. ACC's monopoly on workplace insurance would go. New Zealand would pull out of the Kyoto pact and the RMA would be overhauled.

In fact, scrapping Labour initiatives appears to be the backbone of National's rural policy.

For a sector, that generally has a "less is best" attitude to government, it is a strategy with appeal.

Much of Labour's strength in the sector still rests with Sutton, who is perceived to have been highly successful as Trade Minister. His successes in that arena - forging free trade agreements and pushing for subsidy and tariff reform - have helped to maintain his credibility despite the unpopularity of his party's domestic policies.

To be fair, Labour does have a list of rural initiatives which it highlights in the rural policy section of its website. The party has pledged to secure the future of the Sustainable Farming Fund - which sets aside about $9 million a year for projects which help to maintain the "social, economic and environmental viability of rural communities".

It has launched a new Ministry of Education funded programme to develop leadership among young workers in the sector. It has boosted funding for biosecurity and scientific research - two key areas.

Labour has also been buffered by the relative prosperity in the sector as farmers and exporters have cashed in on record commodity prices.

With the ongoing impact of the high dollar expected to erode farm incomes in the coming year, the Government - whichever party is running it - is likely to face an increasingly politicised agricultural sector.

A horticultural industry spokesman said the exchange rate was the one issue his growers really cared about. Sadly, it was the one area that no Government could do much to control.

Agriculture issues

* Trade deals: Labour gets a tick but momentum must be maintained.

* Tax and rates: Both must come down.

* Compliance costs: Perceived to have risen dramatically under Labour.

* Research and technology: One area where additional public spending would be welcomed.

* Environment: Reform of Resource Management Act and withdrawal from Kyoto agreement would be welcomed.