It is over 20
years since FAR was formed to deliver the benefits from investment in cropping
research and extension to farmers. Throughout this time, we have regularly
considered how FAR is operating and determined if our research investments are
in the right areas and delivering the right outcomes to crop farmers. Also over
this time, there have been huge changes to our industry and FAR has changed its
focus with regard to some areas of research and extension. Early research was
nearly all on production and agronomy, but in recent years, investment in
environmental research, farm systems, biosecurity and new products has become
more important.
The demand from farmers for FAR to invest in research and extension in “right to farm” areas has required FAR to increase levy rates for the first time since 2004 (from 0.8 to 0.9% of first sale price for most grains and seeds; 0.5% to 0.6% for hybrid vegetable seeds and for maize, from 90c to $1.00 per 10,000 seeds). This increased revenue will ensure that we can maintain our investment in existing research areas while increasing investment in environment (including employing a person to focus on this area) and new crops related research and extension. FAR will not invest in policy work, this is the role of Federated Farmers and others, but we will continue to provide good quality scientific information for such organisations to utilise.
There is an ever increasing emphasis on trying to increase the value of products New Zealand grows, either by growing new crops or capturing more value from the value chain through processing. This is increasingly important as new irrigation schemes come on stream, biosecurity incursions impact on some areas, and, in the future, as climate change potentially influences the crops we grow and where we grow them. FAR is working with other groups to evaluate new crop and product options for New Zealand and some of the revenue from the increased levy rate will be used for this purpose.
Seed production has and will continue to be a significant opportunity for our growers. Unfortunately capability in seed research in New Zealand has been gradually eroded in recent years. FAR is working with industry to increase investment in seed research, extension and education through grower, company and government investment into ensuring there is the right combination of short and long term research to sustain the seed industry. The joint investment will see the development of a dedicated seed research and technology centre with expertise from all parties contributing collaboratively to research, extension and education.
FAR is constantly in contact with farmers and industry to try and ensure the right research investments are made. However, no external review of FAR had been conducted since it began. Over the last few months an External Programme Management Review has been undertaken. The review panel, made up of experienced primary industry business people, leaders and researchers, clearly indicated that FAR is doing a good job and is operating very efficiently across a range of areas. They have also identified a number of areas where FAR can improve, these include some areas of governance, management and science and extension. FAR will be working to put some of these recommendations in place over the next few months. This implementation of recommendations from the review is expected to position FAR well for the future.
Finally, FAR operates under the Commodities Levies Act and as such is required to conduct a referendum of growers every six years to ensure there is continued support for our work. The next referendum will occur in the third quarter of 2017. We encourage you to vote in this referendum.
We are very aware that it has been a mixed growing season across the country to date and encourage you to contact us to discuss any particular issues facing your farm business, or your views on our work. FAR aims to be responsive to the issues you are facing, but to do so, we need to be aware.