Last time dairy prices were so high Fonterra etc. led farmers to believe that this was a new normal, booming demand in China was there catch phrase, and the farmers took out loans to bring in farming methods which had been marginal at lower payouts but were profitable around ’07 and ’08. Then along comes the global recession and milk payouts fall dramatically, the marginal farming methods have to go but the debt incurred remains, the Crafer farms were the most notable farmers in this category.

Of course we live in a capitalist system where if you make bad choices, such as taking on debt on the assumption that record high dairy prices are going to stay for a few years yet, then you have to pay the costs, and if you can’t pay the costs then you go the way of the Crafers. But what are the costs associated with being a struggling farmer?

Perhaps a recent speech by Judge Neil MacLean will be relevant. MacLean is  the chief coroner and recently spoke in Taranaki on the issue of rural suicide, apparently in the ‘Naki farmers are the group most at risk of dying from suicide, and, in the Radio New Zealand coverage at least, the first three reasons are; Weakness of returns, changes in the New Zealand Dollar, Pressure from banks,…”. 75 farmers killed themselves since 2007, is this the cost of capitalism in the country?

The fund already owns a farm in the area running 1100 cows on 450 hectares. It also owns nearly a two thirds of the  , 184,000ha Kaingaroa forest.

That’s a lot of land and Cactus Kate asks if there will be a public outcry of xenophobia over this foreign purchase as there has over the bid for the Crafer farms by Chinese interests?

There might be because some people oppose any foreign ownership.

Why? Because H is also for hypocrisy.

People who are quite happy to reap the rewards from investments by New Zealand companies is other countries – including farms – get upset at the idea of foreign investment and ownership of businesses and land here.

On Thursday we visited a farm which was grazing 700 cows in quarantine before they are shipped to one of Fonterra’s farms in China.

That’s our genetics and expertise going to another country. Most, probably all, of the milk the cows produce will stay there and some of the profit will come back here.

If we accept that, how can we refuse when overseas companies want to invest here providing they abide by our laws when they do so?

If we accept US investment how can we oppose Chinese investment?

That wouldn’t just be hypocrisy it would be racism.

Reports that Hong Kong listed Natural Dairy (NZ) Holdings Limited, maybe moving to buy dairy farm assets and milk powder production plants in New Zealand, is a sign that the gate on the New Zealand-China Free Trade Agreement, swings both ways. . .

. . .”While the ball’s in the Government’s court, assuming this all comes to pass, Federated Farmers wishes to meet with Natural Dairy (NZ) Holdings Limited sooner rather than later, to understand its strategic direction.

“Whatever happens, New Zealand will remain an attractive investment destination so maybe time has come for us to look at a Ministry of Food Production. 

“It may also help put a floor under farm prices given that in the three months ending February, just 205 farms were sold.  That was down from 276 farm sales in the same three month period in 2009 and 713 for the same quarter in 2008.

I’m not sure that we need another ministry, but a discussion and strategy on food production is a good idea.

The sale might also persuade would-be buyers that the bottom of the market has been reached and it’s time to get the gorse out of their pockets.

Not everyone is so open minded about the idea of Chinese investment here.

There are risks that animal welfare, hygiene and environmental standards might be compromised. But that can happen with any ownership. There are very strict rules about all of those which every owner has to adhere to and breeches of which have stiff penalties.

There are also oppportunities from the plan. If, has been mooted, at least some of the milk will be processed here and shipped as long-life milk rather than powder, that will create jobs for New Zealanders.

Some opposition is based on a blanket aversion to foreign ownership but as Lachlan McKenzie said the door swings both ways.

PGG Wrightson is 30% owned by Agria Corp which is a Chinese company and New Zealand businesses own foreign businesses.

Fonterra has dairy farms in China and Chile and NZ Farming Systems Uruguay owns farms in Uruguay.