"We're encouraged to see how many of our customers not only have a detailed plan, but also have a good idea of the costs involved in implementing their plan and how they are going to manage that cost."
Key findings:
• 94 per cent of customers said they were reasonably, or very aware, of proposed changes to environmental compliance.
• 66 per cent felt those changes would have a negative effect on business; 10 per cent said it would have a positive effect and 23 per cent felt it would have no impact.
• 71 per cent have either made a start or have a fairly detailed written environment plan. 14 per cent have a very detailed plan.
• 79 per cent said they had some idea, or pretty good understanding, of costs of making changes detailed in their plan.
• 58 per cent said they would absorb the cost into total farm expenditure; 45 per cent said costs would reduce overall farm productivity; 23 per cent would reduce spending in other areas and 15 per cent said they would require extra borrowing to cover the cost.
• Over the past five years farmers spent an average $16,000 on environmental enhancements. 71 per cent had invested in fencing waterways, 52 per cent in riparian planting, 52 per cent changes to fertiliser management, 38 per cent into irrigation practices and 35 per cent in changes to water use.
• 45 per cent were using technology to help record and monitor their environmental footprint.
• Based on an ANZ survey of 330 dairy, red meat and horticulture/cropping customers from across New Zealand in April 2018.
In the lead up to Fieldays ANZ is keen to highlight the positive work being done by people like Waikato dairy farmers John Hayward and Susan O'Regan.
Over the past nine years they have invested an average of $30,000 a year into the environmental sustainability of their farm. The couple have fenced all their waterways, planted riparian strips, created 11 wetlands and two big sediment dams. They've planted 15ha into manuka and five into pine which they've registered for carbon credits and constructed a feed-pad to use feed more effectively.
"It's been a priority for us, and we made the decision that it was going to be an investment rather than a cost," says Susan.
"For us, doing this work over the past nine years has made it a lot easier financially than if we had to catch up now," says John.
"If you can create a plan, even if it is going to take you 10 years to achieve it, that is a lot better than finding yourself in a reactive position and needing to do it all at once."
ANZ encouraged farmers to engage third party advice to help them develop their environment plans to improve the sustainability of their businesses and talk to ANZ about how the bank can support them as they put these plans into action.
ANZ has a range of actions to help farmers as they transition including environment loans and cashflow management tools.
See a video of John Hayward and Susan O’Regan from Judge Valley Dairies on their sustainable dairy farm on the Te Awamutu Courier Facebook page.
