58 | Lincoln long wool breed ideal for Nigel Nigel and Jayne Beer run 1200-head of Lincoln breed ewes. Bernadette Cooney The comeback in wool and lamb prices is slow to arrive and the longer the wait, the less viable farming becomes, says Dipton sheep farmer Nigel Beer, forcing some between a rock and hard place. Nigel and Jayne Beer run 1200-head of Lincoln breed ewes and 25 head of Hereford breeding cattle on their Southland farm. Lincoln is one of the oldest established long wool breeds, known for its strength and quality. The farm was initially a family partnership between Neville Beer and his brothers Nigel & Geoffrey and their father, but the passing of their father in 2022 led to a dissolution of the partnership and now the brothers farm nearby but independently. Nigel manages around 240 hectares, some of which is a lease of his late father’s farm, and the remainder he owns himself. The economic downturn in sheep farming in recent years and tighter regulations on land use leading to reduced land values, has left sheep farmers like himself, hamstrung by being unable to sell up and less able to predict profitability. “Wool used to make up 60 percent of our income on the farm but the drop in prices for wool and meat is eroding our margins significantly,” says Nigel, “We’re fortunate to produce a strong and hardy wool from our Lincolns as there’s still good demand, which allows for bit of a premium, but I do know there are farmers out there that are barely getting enough income from their wool to cover shearing costs.” Where once he was getting $5 per kilogram of wool, today Nigel averages around $2.50 per kilogram. “Similarly, meat prices have dropped,” he says, “About three years ago we were selling ewes for $220. The following year it was about $130 and last year it averaged $96 per lamb. So, it is very hard to budget for the farm with such volatility.” The uncertainty about the future of sheep farming was also driving down demand for productive farms and consequently land values, says Nigel. “I’d quite like to have gotten out by now, as I’m 64 now and farming is getting harder, but the price MEAT & WOOL » Nigel and Neville Beer of land has dipped, and the buyers are just not out there.” “Anecdotally, there are at least three properties near me that haven’t sold,” says Nigel. “One is a big place neighbouring us and they put the farm up for tender and only got one tender price apparently, and that was from a forestry investment outfit.” Bureaucratic and environmental regulations make it burdensome for some farmers to adapt or Proud to provide advice and accounting service to Nigel & Jayne Beer, Neville & Trish Beer For friendly, personalised accounting and business advisory services Phone 03 218 7111 www.businessadvisors.co.nz For all your sheep shearing requirements within the Southland region, contact Andrew at: diversify farming activities says Nigel, particularly small farmers like himself who lack the resources to manage additional paperwork and compliance costs. “I have a few acres of peat swamp which is considered a regionally significant wetland. It could be broken in, but the permits required to do so are cost prohibitive, which is frustrating to say the least.” Despite these challenges, Nigel and Jayne continue to hope for a recovery in wool and meat prices as they prepare for the busy summer season.
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