| 63 Different market compared to two years ago One of the biggest changes has been the sale of a 200-hectare pine forestry plantation established during the downturn. Russel Fredric The November election is bringing regulatory reform, local government and climate policy into sharp focus for Toko Farms owners Simon and Joanna Davies. Fifteen years after buying their South Otago property near Milton, the couple are operating in a markedly different environment from just two years ago. Improved red meat schedules and stronger wool returns have lifted confidence after a prolonged downturn, although Simon says several policy decisions still have the potential to significantly affect sheep and beef farming. For Simon, one of the biggest issues is the replacement of the Resource Management Act and what it will mean for farmers. “I think seeing where the new RMA lands is critical. It will affect all primary industries. In theory it’s supposed to mean less paperwork and fewer consent-based processes, but I emphasise ‘in theory’ because we still don’t know exactly what it’s going to look like.” Freshwater farm plans remain one of the biggest unknowns. Simon says winter grazing is likely to trigger planning requirements for many southern farms, although questions remain over how those plans will be prepared, assessed and audited. Local government reform is another issue he believes farmers should be watching closely. “Watch this space closely because there could be some big implications depending on where boundaries are drawn and how the rating systems work.” There are concerns rural landowners could end RURAL PEOPLE » Toko Farms Ltd up paying substantially more through rating systems based on capital value while receiving few of the urban services those rates help fund, he says. Climate policy is another area of concern, and New Zealand needs to recognise the importance of food production. “We could start reducing stock numbers tomorrow and reduce methane, but the outcome would be a disaster for both the primary sector and, more importantly, the New Zealand economy. Whether people like it or not, New Zealand’s economy is still bedrocked on primary production.” While he acknowledges progress has been slower than some expected, Simon believes policy stability is important as New Zealand emerges from recession and the primary sector drives economic recovery. The stronger outlook is a significant turnaround from 2024, when returns were so poor the couple looked for ways to reduce debt and strengthen the business. Today, Toko Farms comprises 400 hectares of owned land and 400 hectares under lease, running about 100 Angus beef cows, 150 dairy heifers, nearly 200 dairy beef calves, 3,100 breeding ewes and 600 hoggets. The farming system keeps inputs low and prioritises profitability over production targets. One of the biggest changes has been the sale of a 200-hectare pine forestry plantation established during the downturn. The block has been subdivided and sold, allowing Simon and Joanna to retire virtually all remaining debt. “It came from that tough time a couple of years ago. I decided there was only one option left to help with our budget, and that was to reduce debt. GO FOR GOLD WITH RAMS FROM PETERS GENETICS PERFORMANCE, PRODUCTION & PRICE - THE WINNING COMBO The result is going to be a debt-free farm, and I’m absolutely delighted.” With that milestone almost achieved, Simon says the next chapter will involve employing staff, stepping back from day-to-day farming and overseeing the business rather than having a day to day handson role. “We’ve made some decisions, we’ve done some things, and the returns have dramatically improved. We’ve ticked some boxes and achieved some goals, which is really good.”
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