Sight of water going out to sea sickening

In Canterbury at present you can drive to almost any of the major rivers and weep at the volumes of water cascading its way out to sea - wasted.

On the subject of water storage nothing ever gets past the chit chat and good intentions so Farmgirl is hopeful that Bill English's newly announced National Infrastructure Board might actually cut the bull in favour of getting some powerful teeth into the subject of water storage dams.

Homepaddock is right when she says the line-up on the board is impressive. (See http://homepaddock.wordpress.com/2009/05/25/rod-carr-to-chair-infrastructure-board/)

But will they deliver?

The RMA still seems like a major stumbling block in any new infrastructure issue (Central Water Plains) - a problem this Government promised to sort out but it really is time for there to be more than just promises and fancy titles.

We have the water, just not the nous to use it.

Are lamb prices going to hold?

Okay, I have a vested interest in this. Today we have almost secured 1000 Southland lambs to finish and it looks likely that we will have to pay $85 to $90 per lamb.

We have been advised that this price is not likely to drop, and that even if a short sharp cold period puts paid to growing conditions down South, there are just not the lambs in the market, so we consider ourselves lucky if indeed we do manage to secure them, despite the horrendous overdraft it will likely cause!

Alas there are plenty of grass paddocks in Canterbury - a surplus of the recent wet spell that has carved havoc through the harvest season, so competition is hot.

Alliance have advised that they expect we will get over $6 a kilogram in August for them - with some predicting, all going well, that this could hit $6.50.

So while $120 to $135 a lamb seems a good profit, there is a lot riding on the overseas markets in the next couple of months for many of us as these lambs are not on contract - as such.

And for those farmers not able to get lambs and with plenty of grazing available there is not much to be had in the dairy market.

The Otago Daily Times reports that dairy farmers down South are holding off signing contracts as the situation becomes clearer. They know that with all the extra grass around they should be able to barter downwards - as will happen in Canterbury.

It's a situation we will keep our eye on with interest.

Let's hope those in the Northern Hemisphere keep eating at home as the recession bites (even Gordon Ramsay has had to close his posh Paris restaurant as punters save their money and cook at home instead of going out), and demanding our lovely lamb for their Sunday, Monday, Tuesday, all days of the week dinner!

Mind boggling French subsidy payments

The poor French arable farmer has received some very bad news indeed this week with the announcement of a $1.6 billion dollar cut to their subsidy payments. The money is being diverted to livestock farmers to pay for upland farming and support for grass-based animal production.

Annually the arable farmers receive a mind boggling $11.5 billion in support, but the $1.6 billion decrease is still expected to cause 'pain' for many.

French agriculture minister Michel Barnier said the changes were essential to making the Common Agricultural Policy (CAP) sustainable in the long run.

In light of the current climatic hiccups in Canterbury, and the soggy cereals still to be harvested it's enough to make you hit your head against a brick wall, sell up, buy a Chateau with a 10 acre paddock of wheat and a well stocked wine cellar!