Retailer expects a recession as freshwater rules affect farmers’ budgets



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The governments’ new freshwater rules will have economic implications for the entire Southland province and not just farmers, says the managing director of one of Southland’s largest retailers.

H&J Smith Managing Director Jason Smith said the new freshwater rules would lead to a significant slowdown in some retail spending.

But Environment Minister David Parker said Smith was “catastrophizing” and that people should not lose sight of the fact that the government was calling for pollution levels to be lowered.

Smith was a member of a panel that spoke at Town and Country Hui, hosted by Southland Federated Farmers and the Southland Chamber of Commerce, in Queens Park in Invercargill on Friday.

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“The new regulations cost money, and that’s money directly from farmers’ income, so it’s money that they can’t spend on vital equipment, or they have to find other ways to find that necessary equipment.

“We are concerned about the impact of new changes in the sector that is already under a lot of pressure and that is so vital for our province. Having gone through RMA and other laws, I am really concerned that the challenges are very real, they will be fought hard, and that is an expense, ” he said.

H&J Smith had operated in Southland for 120 years and noticed when farmers weren’t doing well, he said.

“There have been many, many examples over many years where we have seen the economy of the agricultural sector slowly collapse, when they say milk prices were low, sheep prices were low, wool was low. low … so we reflect that. ‘ ‘

Jason Smith of retailer H&J Smith said the new freshwater rules would have a

Robyn Edie / Stuff

Jason Smith of retailer H&J Smith said the new freshwater rules would have a

“I really am aware that any support we can give them to balance it out and show them that they are highly valued in our community, and why, which is more than what they produce and what they feel for their animals and their properties and things, is actually so integral and closely woven into our community. ”

When asked about Smith’s comments on the effect of freshwater rules on the retail sector, Environment Minister David Parker said: “This takes catastrophizing to a new level because export volumes are strong, interest rates are low, and Fonterra’s payment is high. Let us not lose sight of what is being asked: that pollution levels be reduced ”.

Smith was joined on the panel by Mark Smith from Southern Wide Real Estate, Blake Holgate from Rabobank, Suzanne Hanning from Bristol Grove Dairies, and Laura Douglas from Real Country.

More than 140 tractors were driven from all over Southland and parked in the Gala Street reservation as farmers mingled with villagers, listened to panelists and enjoyed entertainment.

Tania Goodwin, back left, with her children, from left, Hunter, Jordan and Aisla, petting Willow the lamb, held by Charlotte Hunt of Eastern Southland.

Robyn Edie / Stuff

Tania Goodwin, back left, with her children, from left, Hunter, Jordan and Aisla, petting Willow the lamb, held by Charlotte Hunt of Eastern Southland.

The theme of the day was ‘We all live off the land’ and city dwellers were expected to mingle with farmers and show that Southland is united in its vision of healthy fresh water and a healthy economy.

The new government rules would also affect those living in urban areas, said Southland Federated Farmers President Geoff Young.

“The problems we face with these new freshwater regulations are not only about the country, but about the entire community and the people are the community, so we are all in this together and we must all be the solution.

“If we are going to be hampered and have more costs from our agribusinesses, that means less money in the bottom line is set aside for discretionary spending in cities like Invercargill, so it has a flow effect.

Holding a string are dairy farmer Kevin Knight, left, and contractor Brian Hughes, both from Waimatua, among the 140 tractors that were brought to the event.

Robyn Edie / Stuff

Holding a string are dairy farmer Kevin Knight, left, and contractor Brian Hughes, both from Waimatua, among the 140 tractors that were brought to the event.

Young called on farmers to boycott the new rules in August.

Many farmers say that the rules, which include sowing paddocks in crops by November 1, limiting pugging and limiting the slope of hills that can be grazed, are unworkable and do not take into account weather conditions. .

Southland farmers have resisted the rules, although in September Agriculture Minister Damien O’Connor said the rules could be “changed.”

On Thursday, around 100 tractors were driven down Gore’s main street in protest against the freshwater rules.

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