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

Community- critical mass

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.

Where?

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%

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

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

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

Future of tenancy? Opportunities- Incentives and controls?

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?

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.

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

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

Support and development systems-

Official advisory service

recording systems

notification procedures

compliance standards

Technical and financial support

SAC

Banks

Mentor

Skills and equipment ring

Finance?

Planning and application

Loan guarantee scheme

Support for Market Credit extension; sheep

Support for contract rearing or growing groups

Comments and questions please

Thank you