'We're quite excited': Fieldays farmer spending tipped to hit new highs
The southern hemisphere's largest agricultural event is a ritual for many farmers, but this year it's hoped there'll also be record spending.
Huge numbers are rolling into Fieldays in Hamilton which kicked off today, with an
estimated 100,000 people
expected to attend between Wednesday and Saturday.
With a farmgate milk price of $10, record beef prices and strong sheep meat returns - the rural sector is on the up. Combine that with the government's recent move to allow farmers to deduct 20 percent off new farm equipment from their
taxable income
, and the prediction is sales could reach new highs.
The Minister of Agriculture also announced a $4 million boost to rural wellbeing, and Prime Minister Christopher Luxon said during his visit to Fieldays that he wanted farmers to know they were "deeply loved" by the government.
That's certainly something that agricultural machinery companies are feeling, down at the Husqvarna stand there were plenty of smiles and national sales manager Steve Middleton told RNZ there had been a recent uptick in spending and mood amongst farmers.
Steve Middleton says sales are on the upward curve.
Photo:
RNZ / Marika Khabazi
"We're seeing an improvement, there's been a lot of signals in the market place in the rural sector that we're seeing signs of the times getting better and farmers are looking to spend some of the cash they've built up.
"We're definitely seeing it come through particularly in robotic auto mowers and lawn tractors - it's positive and we are on the upward curve now," he said.
Palmerston North dairy farmers Christian Allen and Anna Maley believe the 20 percent tax reduction will make a difference.
"Farm owners I think will be more willing to spend a bit more money and upgrade some gear considering it's 20 percent off you can get back.
Palmerston North dairy farmers Christian Allen and Anna Maley.
Photo:
RNZ / Marika Khabazi
"Farmers with older tractors that have done seven or eight thousand hours, it'll be more appealing to trade it in and get a new one, less hassle," he said.
A sentiment that has businesses feeling optimistic. CNH business manager John Gilbert told RNZ that sales of Case and New Holland tractors were likely to be high at this year's Fieldays.
"We're quite excited, I think there's a sense of a mood shift. Last year we sold 40 tractors at Fieldays and this year we're hoping to eclipse that.
"With the tax boost announced a few weeks ago by government that's really got people talking and we've seen evidence of that already in the market - people are buying tractors," Gilbert said.
John Gilbert is expecting this year's sales to eclipse last year's.
Photo:
RNZ / Marika Khabazi
However, that's not the case for all of the 1200 exhibitors at Fieldays. A few tents along at the All Trade Tools stand, key account manager Rodney Smith told RNZ their clients, many DIYers and tradies, were not doing as well as farmers at the moment.
"It's been tough for us out there, we're down considerably year on year. We're finding the DIY market is non existent at the moment.
"I think interest rates, mortgages - people don't have that money in their pocket to go out and spend a couple hundred dollars on something they really don't need," he said.
A cautious approach the Jowsey family is taking, they farm sheep and beef in Raglan and mum Amber said even in the good seasons, they were always careful.
"You've still got to stay within your limits but farmgate prices are pretty good so doesn't feel bad like last year... for sure," she said.
The Jowsey family from Raglan on their annual trip to Fieldays.
Photo:
RNZ / Marika Khabazi
Husband Clint Jowsey is eyeing up solar water pumps, and is relieved to see the rural economy doing well.
"I reckon it's going pretty good at the moment, it's ticking over," he said.
Whangārei farmers Julie and Bruce Paton are also looking for some Fieldays deals such as water tanks.
"We certainly feel we can spend a bit more this year. Because we're in dairy and beef, and both are up, so why wouldn't we be positive about that," they said.
Whangārei farmers Julie and Bruce Paton on their annual Fieldays trip.
Photo:
RNZ / Marika Khabazi
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