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\nGibbons Contracting owner Craig Gibbons says he’s had work all winter which was pretty much unheard of.
\nPhoto: ROBIN MARTIN \/ RNZ\n<\/p>\n
Farmers are beginning to spend and cash registers are ringing in rural Taranaki with the two-speed economy showing green shoots… for some.<\/p>\n
After a handful of tough years, farmers have a bumper payout for dairy, and record beef prices – but the urban areas tell a different story.<\/p>\n
In the first of two reports our Taranaki Whanganui reporter Robin Martin headed into the heartland for RNZ’s cost of living series Pinch Point. <\/p>\n
Moa Pumping and Milking in Stratford is a hive of activity when RNZ visits with farmers looking over dairy systems equipment and catching up with the gossip.<\/p>\n
Mark Dravitski farms 350 dairy cows nearby.<\/p>\n
“The payout has definitely helped us feel more secure in where we can spend money. The last four or five years we haven’t been spending, we’ve been holding onto things. Now we can look at maintaining our systems on farm or improving systems.”<\/p>\n
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Photo: RNZ\n<\/p>\n
He’d recently invested in the hi-tech stock management system Halter.<\/p>\n
“Per cow, a 350 cow farm, you’re probably looking at $50,000 per year and that’s basically a lease, you don’t own the collars or anything. So, something like that we would have never looked at two or three years ago.”<\/p>\n
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\nStratford farmer Mark Dravitski says the bumper milk payout has allowed him to invest in the high-tech stock management system Halter.
\nPhoto: ROBIN MARTIN \/ RNZ\n<\/p>\n
Across the road at farm machinery supplier Field Torque general manager Carl Hinton said it was beginning to see the affect of the dairy payout.<\/p>\n
“Mainly workshop repairs, servicing and, yes, new machines being purchased like new tractors are being purchased as well as we’ve had a few new baler-combination machines being purchased as well.<\/p>\n
“So, a bit of everything across the board, but I think it’s more a case of what they’ve put off that needs replacing and updating is now starting to flood in.”<\/p>\n
New machines didn’t come cheap.<\/p>\n
“It sometimes ranges a lot really, like a normal farmer’s tractor can be around the $100,000 mark and then you can get right up to the $300,000-$400,000 or even more recently to the $500,000 mark for these machines.”<\/p>\n
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\nGeneral manager of Stratford farm machinery supplier Field Torque, Carl Hinton, says orders are beginning to come in for tractors and bale-combination machines.
\nPhoto: ROBIN MARTIN \/ RNZ\n<\/p>\n
Gibbons Contracting owner Greg Gibbons was also noticing more work on offer.<\/p>\n
“Since the dairy payout’s come up a bit things have definitely got a bit stronger around here and we’ve still been quite busy going through these winter months which is pretty well unheard of.<\/p>\n
“A lot of like paddock contouring slash cultivating so that’s flattening and then all their track work, so things like that.”<\/p>\n
He had his eye on a new machine.<\/p>\n
“We’ve got a Fed that’s done 9500 hours, you know, and it just starts to have little breakdowns every now and again.<\/p>\n
“So, you know, if you could look at upgrading that, try and trade that in or something and get something newer. We’re talking $500,000 for the gear we’re buying, so it’s a pretty big investment.”<\/p>\n
On Stratford’s Broadway, Dimocks offers a range of whiteware, appliances, electronic goods and beds.<\/p>\n
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\nOwner of Dimocks Megan Dimock says farmers are no longer settling for the “cheapest of the cheap” when an appliance dies.
\nPhoto: ROBIN MARTIN \/ RNZ\n<\/p>\n
Owner Megan Dimock said people were beginning to loosen the purse strings.<\/p>\n
“The farmers now are doing bigger spends if they need to. Like if their fridge dies they’re not buying the cheapest of the cheap, you know, they’re not just trying to get through, you know, they are, like okay, I’ll put a little bit more into this and that kind of thing.<\/p>\n
“But it’s not fantastic yet and it will take a bit of time to get fantastic.”<\/p>\n
In the second part of Robin Martin’s story he speaks to locals, budget advisers and food banks in urban Taranaki where tough economic times continue. <\/p>\n