Big crowds are turning out at the Fieldays being held this week at Mystery Creek, near Hamilton. Photo / Sarah Ivey
The average dairy farmer might be in for a $140,000 windfall next year but, for those selling big-ticket items at Fieldays this year, sales haven't been any easier to make.
Hyundai national sales manager Tom Ruddenklau said although his company sold 22 vehicles on the first day of
Fieldays, uncertainties such as higher interest rates had made those sales harder than usual to close.
The prevailing mood among farmers spoken to by the Business Herald at the rural showcase yesterday was one of restrained optimism.
Most dairy farmers said they would use extra cash to pay off debt.
That will be good news for Reserve Bank Governor Alan Bollard, who warned this week that the inflationary impact of any increased dairy farmer spending could put further pressure on interest rates.
With a global dairy boom injecting an extra $1.5 billion to $2 billion into the rural economy over the next two years, you couldn't blame some farmers for loosening their wallets just a little at the prospect of being able to bed in some next-generation milking technology.
Waikato dairy farm manager Liam Tierney said big debts would no doubt eat up a lot of the payout, but many dairy farmers would also use the opportunity to pump funds back into their businesses.
He had come to Fieldays to get ideas about what his boss should buy next. He had already bought a new tractor and a bale-feeder.
"If farmers have a surplus, they aren't scared to spend money," he said.
Improved fortunes had also given farmers the chance to raise wages to attract good staff amid a labour shortage.
Tierney, who said the payout forecast had put his employer in a position to offer him better wages, said there was no doubt dairy farmers were out spending at Fieldays.
But one dairying couple, who did not want to be named, said paying off debts was their biggest priority, and they were not tempted to splurge on fast cars.
