KEY POINTS:
A few years ago "sustainability" was rarely heard in common speech but these days it is used frequently, in particular around the environment.
As an industry and as individuals, farmers make a big daily commitment to meeting the challenge of delivering it.
Sustainability has been defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. That said, sustainability is not just about the environment. Social and economic sustainability are also hugely important.
Successful farming is about risk management. It is about remaining economically viable while coping with weather, exchange rates and international markets.
Successful pasture-based livestock farming means dealing with stocking rates, grazing patterns, pasture type, feed management, hay-making, silage-making, seasons, soil type, topography, weather and staff availability.
To farmers, sustainability means managing personal resources, the land and capital assets of their farming business, so that the land and business can sustain future generations.
Federated Farmers has a number of initiatives to promote sustainability.
Farmers have and will continue to spend their own money on improving the environment; money they have earned through their own efforts without being propped up by taxpayer subsidies or while hiding behind protectionist trade policies.
Farmers and researchers are making good progress on reducing the environmental impact of agriculture. But more progress is needed.
Last year the federation added to its portfolio of environmental initiatives the "10 in 10" campaign.
It has asked every member to commit to reducing their farm's environmental impact by 10 per cent over the next 10 years. For its part the federation will ensure information is readily available to help them achieve this aim.
Rates battle
To improve the environment, farmers need to remain profitable and a number of changes could help achieve this.
Local government rates are now one of the top farm working expenses. Over the past five years rates have risen at three times the rate of inflation and this trend is forecast to continue over the next 10 years. Rate increases are stressful because they are unrelated to income, and for many ratepayers compounding rate increases have become unsustainable.
The long-awaited inquiry into local government rates launched last year has been asked to give an independent assessment of local government rating and is required to report to the Government by the end of July.
The inquiry is the best chance in many years to get the cost of local government funded fairly by the whole community.
Dollar hurts
The high dollar has been hurting farmers by reducing returns and the squeeze on returns has come after three years of sustained increases in farm expenses, most notably for fuel, electricity, local government rates, labour and compliance costs. Farmers are price takers and they have little ability to pass on cost increases to the consumer.
Sheep farmers are not making a profit at present and all the economic and anecdotal evidence points to them stopping spending until returns improve. Closing chequebooks will seriously impact on rural communities.
The main reasons returns are low are flat commodity prices and a "stronger-for-longer" dollar, which is being propped up by high interest rates.
Farmers want central and local government to commit to ensuring that policies and decisions are designed to improve the economy's competitiveness and productivity.
The right policies will not only develop the economy to the benefit of all but will also give the Reserve Bank a much-needed hand by ensuring the economy can grow without generating unwanted inflationary pressures, so enabling us to enjoy lower interest rates and a more realistic exchange rate.
Time for an overhaul
The sustainable management ethic of the Resource Management Act has developed into a process and industry that seeks to micro-manage farm activities, protect every living piece of native vegetation and lock up the potential of well managed farming landscapes.
The act is failing to recognise and enable the landowners' key role in managing natural resources and conservation values on private land.
What is most important for farmers is that decision-makers have the knowledge of farming and its needs to make the right decisions to help the country's most important industry.
It is crucial urban people recognise the trade-offs they are making. Urban people are prepared to live with a view of houses, the sound of traffic and waterways buried underground in pipes and culverts. Yet they expect rural people to make a living without impacting on the environment.
The country cannot afford to ignore the economic effects if no balance is struck between the wants of the many and the justifiable requests of the well-informed few.
Regardless of what happens we will continue to rely on farmers and the farming sector will continue to lead the way in innovation, productivity and dynamism.
* Keith Kelly is a Clevedon farmer and Federated Farmers' national board member.
