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New Generation

New Generation. September 12th 2012. A New generation in farming?. Why? Who? Where? How? Breaking through Barriers?. Why?. Age profile Energy and innovation; food security, climate change Economic activity rural economy;New businesses? 1998- 21700 2004- 19500

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New Generation

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  1. New Generation September 12th 2012

  2. A New generation in farming? • Why? • Who? • Where? • How? • Breaking through Barriers?

  3. Why? • Age profile • Energy and innovation; food security, climate change • Economic activity rural economy;New businesses? 1998- 21700 2004- 19500 • Community- critical mass

  4. Who? Getting definition right? • New entrant - below 40, new business, fresh to industry/ no benefit of succession • Working in agriculture as employee; opportunity to go it alone- over 40? • Succession on tenanted unit;but sfp goes for pension; family share pay out.

  5. 2005 91 Act T; 7470 91 Act P; 7172 SLDT; 285 LDT; 99 grazing/share farm? 2011 down- 10%; 6743 down- 16%; 6048 up - 499 up - 301 91 Act- 94.9% down to - 87.1% Where?

  6. Short term devices? Incentives or controls • Access but cost?-value to existing businesses? • Stewardship, investment, infrastructure at risk? • Fails to fit with SRDP 5 year contracts • Transparent area payment and active farmer

  7. Traditional tenancies- a second step in the ladder for new entrants? • when no succession managed transfer? Collaboration estate/tenant/ government • Retirement package [SRDP]incentive • Approved new tenant LDT-with development support way-go- new tenant buy improvements

  8. Share farming? • The NZ experience • Option for planned retirement? • Option to build capital or stock assets • Option to access secure land resources- a base to grow • Synergy of partners

  9. Incentives maintaining building asset value VCOP; Land Use Assurance Audit Tax and SRDP Incentives Controls SFP/ANC activity gateway Land Reform? CC- Land use C.? Tax penalties? Future of tenancy? Opportunities- Incentives and controls?

  10. Making support systems work for new businesses • Full area payment from day one for all active farmers with no sfp • On-going national reserve - 7% top slice of budget? • LFASS- Change eligibility to live standard- eligible activity; stocking within appropriate G Cat. Triggers payment.

  11. New SRDP- new support pathway, new definition? • Design middle band support system with wide access - simple application process • Prioritise new businesses- enhance rates [support for infrastructure] • Allow match funding in kind • Design contracts to fit tenure

  12. Is beef production an option? • Support market/bank credit for new businesses- guarantee approved plan • SBCS - Enhance payment profile for new businesses [7 years] • SRDP develop beef starter package-fund infrastructure, recording, genetics • Support development of contract rearing or finishing groups

  13. Official advisory service recording systems notification procedures compliance standards Technical and financial support SAC Banks Mentor Skills and equipment ring Support and development systems-

  14. Finance? • Planning and application • Loan guarantee scheme • Support for Market Credit extension; sheep • Support for contract rearing or growing groups

  15. Comments and questions please Thank you

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