78 | Reality check for sheep & beef coming Daughters Juliette (6) and Georgia (9) with pups. Russell Fredric Tokomariro sheep farmer and former Federated Farmers Otago president Simon Davies is bracing for an economic reality check over the next 12 months. Despite agriculture not being too badly affected by the covid pandemic and sheep, beef and dairy prices being favourable, that is set to change, he says. “Our farmgate prices have carried us through very nicely, so we haven’t felt a real effect of [the pandemic] but the next 12 months, certainly for sheep and beef farmers, it’s going to be a real reality check; things will have to change. “For my situation, I’ve at least got a $120 to $130,000 hole in my budget, so I’ve already put a line through planting some more trees; I was going to plant another 20 hectares, I’ve put a line through that this year.” He has also mentally prepared to either cut or significantly reduce expenditure on fertiliser because there are other things he doesn’t have flexibility on, with maintenance also up for review. “All standing charges have to be paid and they’ve all gone up significantly, likewise with wages and living costs.” Although these economics are subject to global forces, there are other things Simon believes that farmers should not have to be dealing with when it comes to some of the Government’s controversial environmental policies, including the emissions tax and He Waka Eke Noa. However, he is not confident a change of Government would make a radical difference. “Our farmgate prices have carried us through very nicely, so we haven’t felt a real effect of [the pandemic].” MEAT & WOOL » Simon Davies • to page 79 Contact: Jason Gilder 027 452 2679 SOUTH OTAGO SHEARING Quality shearers of quality sheep PETERS GENETICS Angus & Romneys Every drop means quite a lot when it’s from Peters Genetics CLAYTON PETERS 03 204 8817 | 027 222 4421 JUSTIN WALLIS 03 976 6509 | 027 225 8330
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