20 January 2009

The Federated Farmers/Rabobank Farm Employee Remuneration Report provides good news in an otherwise weak employment market. The Report has found that in the year to August 2008, farm workers earned an average income of $41,914 (year to August 2008) - $2,000 more than the average non-farm income of $39,517 (year to June 2008).

“The 2008 Federated Farmers/Rabobank report proves average wage levels are higher on-farm. This is good news and reflects a new belief that agriculture offers a viable career option,” says Don Nicolson, Federated Farmers President.

“The average New Zealand farm worker earned more than $2,000 more than the national average income. This does not take into account a farm workers’ total package value that actually pushes their income well above the average. The latest report also reveals farm workers in the South Island generally earned more than their North Island counterparts.

“A quick check of the online job sites has just under 500 jobs listed right now and that’s only a snapshot in time. We literally need thousands of people to take up farming in order to cover retirements, people leaving the industry as well as filling the new jobs being created. Farming is a highly skilled and highly valued occupation. The Federation is moving to help meet the need for talented staff by establishing a rural jobs website to promote the many rural vacancies that exist.

“This latest employment data backs up what farmers have known for generations, farming is a great career choice. As one of the few careers that can lead to self-employment we look forward to talking up agriculture at the Government’s employment summit,” Mr Nicolson added .

The 2009 Federated Farmers/Rabobank report details remuneration rates for 13 occupational categories in the dairy, sheep, beef and arable (grain and seed) sectors. The comprehensive report, which has been supplied to all members of Federated Farmers, includes gross salary (excluding bonuses), other benefits and the total value of employment packages. It also includes the hourly rates for casual and permanent employees. The report presents data by occupation on a national basis as well as by North and South Island.

Ben Russell, General Manager Rabobank Rural New Zealand, said the survey results reflect the bank’s own observations among its clients.

“Attracting and retaining quality employees is challenging for all employers even when the economic picture isn’t so bright. The latest Federated Farmers/Rabobank report demonstrates conclusively that, relative to other occupations, farm employees are competitively rewarded,” says Mr Russell. 

“Hopefully, this message will be picked up by career advisers as well as people considering a new career. While the general economic outlook is a little cloudy at the moment there is a shortage of labour in the agricultural sector.”

“The primary sector is New Zealand’s economic engine room generating 64 per cent of the country’s export returns. Rabobank is proud to work in partnership with Federated Farmers to provide this valuable data to farm business owners,” Mr Russell concluded.

REPORT HIGHLIGHTS

• Farm workers earned an average salary of $41,914 (year to August 2008) while non-farm workers, according to Statistics New Zealand, earned on average $39,517 (year to June 2008).
• The average total package value for farm workers (with salary and other benefits) was $46,374.
• Average salaries are highest in the arable sector (up 19 percent), followed closely by dairy (up six percent) then sheep/beef (up two percent).
• In 11 out of 13 full-time job categories surveyed, workers earned more in the South Island than counterparts in the North Island. The exceptions being Sheep/Beef Farm Manager and Sheep/Beef General Farmhand.
• The highest rate of wage growth in 2008 was for managerial positions (up 20 percent) such as Dairy Farm Manager or Sheep/Beef Farm Manager, while tractor drivers saw an average wage growth of 15 percent.
• Casual skilled employees earned on average $19.99 per hour (up five percent) while unskilled casual staff earned $17.91 per hour (up 14 percent). Casual rates are highest in the North Island.
• 76 percent of farmers surveyed used Federated Farmers employment documentation for their staff.

OCCUPATIONS SURVEYED

The report

The 2008 Federated Farmers/Rabobank Farm Employee Remuneration Report was produced from a comprehensive survey of members of Federated Farmers conducted between June and August 2008. Members have received the report with the latest edition of the Federation’s Update magazine and can also access the report online in the members’ area of the Federation website, or by calling 0800 327 646. Non-members can purchase the report by visiting www.fedfarm.org.nz or by calling 0800 327 646.

For further information please contact:

Federated Farmers: Don Nicolson, President, 03 216 7405, 027 226 6331.
Rabobank Rural New Zealand: Ben Russell, 027 484 5965