NZ Farmers Approach Retirement Age Amid Industry Revival

Farmers in New Zealand are facing a significant challenge as thousands approach retirement age. According to a Rabobank report, 17,000 farms and orchard owners will reach pensionable age in the next decade, leading to a $150 billion intergenerational transfer of wealth.

The average age of farmers in the sheep and beef sector is around 50, with many nearing retirement. However, there are signs that younger farmers are becoming more interested in taking over family farms, thanks to renewed interest in the industry's profitability.

Richard Dawkins, Federated Farmers meat and wool chairman, attributes this shift to a combination of factors, including strong demand for meat, good prices, and favorable market conditions. He notes that banks are now more willing to lend based on these conditions, making it easier for young farmers to access capital.

Dawkins also expresses concerns about the conversion of sheep and beef land into carbon forestry, which he believes is 'tragic'. He argues that this artificial subsidy created by the government's emissions trading scheme makes it challenging for the sheep and beef sector to compete. The industry's profitability has increased due to innovation and development, but Dawkins warns that the loss of productive land could have long-term consequences for New Zealand's economy.