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