Farm wages above average – survey

A farming survey highlights facts about pay in the rural sector. Photo from ODT files.
A farming survey highlights facts about pay in the rural sector. Photo from ODT files.
Competitive wages being paid in New Zealand's agricultural sector could help solve the country's unemployment problem, a report released this morning suggests.

The Federated Farmers Rabobank farm employee remuneration 2013 survey shows that pay levels for most pastoral farm positions had continued to increase.

The average farm worker was earning $5500 more than the New Zealand average annual wage and salary, the survey showed.

Federated Farmers employment spokeswoman Katie Milne warned the survey was in the field late last year, before the impact of the 2012-13 drought hit too hard.

''We need to also point out that markedly commodity price pressures have become apparent in 2013 - in the meat and fibre sectors particularly.''

However, the 2013 survey covered more than 3900 positions involving the input of 1194 employers. That made it the most comprehensive of its type, she said.

The survey showed agricultural workers earned an average salary of $46,246. That increased to $49,716 when non-wage benefits were taken into account.

''Farming is incredibly wage-competitive because the national average wage for people in paid employment was $40,716 in the June 2012 quarter. When you consider living costs in many rural areas tended to be lower than in urban areas, it was a real eye-opener,'' Ms Milne said.

Despite relatively high unemployment nationally, farmers were finding it difficult to recruit skilled and motivated staff. There was a gulf between talk in the media about unemployment and the experiences of farm employers.

''We are hopeful reforms to the benefit system may incentivise Kiwis with the right attitude to look wider and consider a farming career,'' she said.

Dairy farm wages have been in the news recently with Clutha Mayor Bryan Cadogan criticising some in the dairy industry for the way they treated some youth workers.

The survey showed that a dairy assistant earned an average $39,803, an assistant herd manager earned $46,256, a herd manager $56,061 and a farm manager earned more than $70,000.

A sheep and beef general hand earned $41,981, a sheep and beef shepherd $46,902, a head shepherd $55,526 and a stock manager earned $55,770.

Tractor drivers on arable grain farms earned up to $55,818, on average, and grains farm managers earned $66,359. Ms Milne said farm employers knew they needed to strike the right balance between containing wage growth and attracting high-quality skilled workers to not only consider farm employment but to stay. The need for career development was also important.

''Misconceptions about pastoral agriculture must be challenged and this survey is a useful tool doing just that.''

There was a growing professionalism in rural employment relationships, she said. Statistics New Zealand's recent labour productivity statistics showed productivity within agriculture had increased 3.4% each year.

Federated Farmers recommended that each year employers included a remuneration review as part of their workers' performance review. That did not guarantee a change of pay would result but that, in good will, it would be discussed.


At a glance

Primary industries employ more than 146,000 New Zealanders.

Average salary of agricultural workers, $46,246.

Average salary when non-wage benefits included, $49,716.

National average wage for people in paid employment, $40,716.


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