Kellogg RT

“The nation must grow its people who are working across the food and fibre value chain.” (Grimmond et al., 2014).  The human capability required to meet the primary industry’s strategy for 2025 is a forecasted 4,700 increase in jobs associated with the arable industry (2012 to 2025).  It is therefore critical that as an arable industry we are prepared to grow, and our people are trained and skilled to meet our primary industry strategy.

The aim of this report is to research the development of a grain trading course for field reps, specifically targeting field reps in their first two years out on the road with the objective that it is used by agribusiness organisations.   Industry could use this research document to inspire further discussion and development on upskilling our people in arable.

The methodology included an exploratory literature review which concluded that there is a gap in arable training and development in New Zealand. I looked at overseas grain trading courses: two that stood out were the Grain Trade Australia (GTA) courses and the Kansas State University – International Grains Programme (IGP).  These courses are based in Australia and the midwestern State of Kansas in the USA where grain production is key to their economies.

I created a semi-structured questionnaire, and targeted grain traders from the arable industry with field rep staff and arable growers from the various cropping areas throughout the country.

As a result of the information gathered from the literature review and the grower and industry surveys, it is my recommendation that a grain trading course should be developed in New Zealand, with the following guidelines.

• A course template is created that is operated from the industry body, NZGSTA, with the intention of the course operating biennially or as required. I would recommend NZGSTA act as the facilitator alongside an education provider such as Lincoln University, to run the course. 
• The suggested course outline is for a 3-day grain trading course for field reps. Day 1, a full day, Day 2, a ½ day.  Both days are done consecutively.  Day 3, a ½ day, six months later.  Speakers with relevant experience would be brought in to present on each of the topics.
• An elected member of the NZGSTA executive committee is appointed to oversee training and development. Personnel training and development needs to be at the forefront of our industry and any course offered, should continue to evolve and remain relevant. 
• A customised in-house training option should be available, as we have seen with Ravensdown and their cropping course. This would potentially suit some of the larger companies with rep teams, as businesses can take on the base course content and adapt it to suit their individual company culture.  As with the above course template a service provider such as Lincoln University could run the course. 
• From the feedback from the grower survey, “that the link the field rep holds between the firm and the farmer is most important,” my recommendation would be that the course provider identifies good growers, that are willing to be mentors, to new field reps. One farmer assigned to one rep.  The course provider communicates with the growers before Day 3, to provide constructive feedback, that can help assist individual field reps.  This is a similar concept that Primary ITO adopts, where it gets the employer to verify on-farm training. 
• Further work needs to be done on the funding for the course. Perhaps, opportunities for industry sponsorship.  The intention is however, that the course is funded by the attendees or their employers.

The Primary Industry has long been stated as being the backbone to New Zealand’s successful economy. A reputation worldwide for a high quality of food and fibre, and good agriculture practices on luscious clean and green land. The Primary industry employs over 14% of the total population of New Zealand and has been through a rollercoaster in employment since 2002.

In 2011 the recognised seasonal employment scheme came into effect and it has allowed the food and fibre industry to grow since. Although continued growth requires a capable workforce to do the work. This was identified in 2019 by the Primary Industry Council and the Food and Fibre Working Group which has led to each establishing a vision and strategic 3 – year plan to grow the Knowledge, Employment, Education and attraction of New Zealanders into the primary Industries.

However, the impact of a global pandemic crisis has highlighted that the development of strategic labour force plans like the food and fibre skills action plan and the primary three year plan was all too late to assist with the biggest challenge the industry would face in over 20 years. COVID19 forced the New Zealand border into lockdown and restricted travel into New Zealand. With upcoming seasonal work starting, how was the primary industry get its capable workforce to achieve the level of productivity it was used to.

Immediate challenges affected the kiwifruit and dairy industry, while no one really understood the impact and implications the crisis would have going forward. Now in October 2020, summer is approaching and so is pruning and harvest season for the horticulture industry, the biggest sector of the industry that relies on seasonal overseas workers. At least 10,000 workers are still needed to harvest the crops, turning 2020 into a year of “how much crop can you harvest rather than how much crop can you grow”.

Slow but steady support from the government has helped overseas workers and immigrants stay longer in New Zealand, however the closure of the boarders is preventing the additional numbers of the workforce coming to New Zealand to help with harvesting. Some New Zealanders will turn to help, but the sector requires a capable workforce to move volumes of fruit and vegetables around the world.

The resilience of the New Zealand workforce has been tested through the duration of the COVID 19 global pandemic crisis but now New Zealand and the primary industry need to plan for the next global pandemic. A contingency plan for the next crisis, greater collaboration with the New Zealand Government and inclusion with the contingency planning and expanding the Recognised Seasonal Employment scheme so New Zealand can have a capable workforce and continue to grow the strengths of the primary industry in New Zealand.

There is something special about owning a piece of land and providing high quality nutritional produce to the world. Farmers are dedicated to their jobs and work every day to put food on people’s plates. This commitment is vital to sustain the growth of the world’s population and address continuous change, be it market, technical, disease or environmentally driven. The challenge is to grow the agricultural industry and keep entry points open, to allow the next generation to attain farm ownership.

The aim of this project is to investigate what options there are for younger farmers to grow their equity within the agricultural industry, rather than investing in external options, and enable them to get a foot in the door to farm ownership.

From my discussions with farmers, rural professionals and business owners outside the agricultural industry, there is a sense that it is harder than it has ever been to buy a farm, but it is still possible. For those people wanting farm ownership, they felt this could still be achieved through hard work, embracing opportunities and a bit of luck. Generation Y and Z have a different view to the traditional mindset about the pathway that may lead them into farm ownership. In the past, this has typically involved hard physical graft, but for Generation Y and Z, they are looking for more than just physical ownership.

Generation Z, who are being raised in a fast-paced continually changing world, want to develop skills that are transferable between industries so they are not confined to the same job for many years. For this generation, while farm ownership may limit their diversity of skills, they also want the security and stability, which can be achieved by owning a farm.

However, there are also some in Generation Z that have full autonomy in their farming role and, because they view themselves as guardians of the land for a limited time, they do not see the need for farm ownership to achieve their goals.

A significant issue that the agricultural industry is facing, is to create a vibrant industry that attracts and retains the next generation in farming. Without a diverse and exciting industry that allows progression within the farm gate, Generation Z will look to other industries that can fulfil their needs. Losing this resource will also have a direct impact on farm profitability.

From the discussions held with farmers and rural professionals, the model that appears to work best for all parties in the long term, and particularly Generation Y and Z, is equity partnerships. For Generation Y and Z it meets their desire for flexibility and provides a variety of structures and options for entry and exit. It enables a holistic approach as both parties are working towards the same goal. The advantages of equity partnerships are that they share the capital gain equitably, enables tax to be offset against capital improvements, and it is easy to change the proportion of shareholders holdings. There was also a view from rural professionals that, operational shareholders need opportunities to grow their equity in the farm. Given the cost of changing management of operational shareholders, this may be cheaper in the long term if existing managers are financially rewarded. Staff stability will enable the business to achieve higher targets because all the shareholders are aligned with common business goals. There are different ways an equity partnership can allow operational shareholders to do this, for instance rearing livestock, diversification of land use or farm profit performance-based shares. This in turn allows the next generation to grow their equity, and provide more opportunities for retiring farmers to sell their land.

New Zealand farmers are well known for their “kiwi ingenuity” and the challenge of getting into farm ownership from scratch is just another hurdle that can be overcome with creative thinking and support. In order for farms to remain in New Zealand ownership, it is important to work with young people, give them a vote of confidence, guidance and financial opportunities to pursue farm ownership in a way that is meaningful for them and allows them to meet their goals.

Historically Dairy farming was seen as an attractive career path where hard work and dedication was rewarded with the trophy of farm ownership, but that reward is all but out of the grasp of most; this amongst a plethora of other reasons has led to an ever increasing struggle to attract and retain talented individuals on farm.  With 60% of new entrants to the dairy industry leaving within the first twelve months, retention is a very real issue on our dairy farms. Research has shown engaged employees are not only less likely to leave the farm or organisation, but when employees are engaged, the organisation will be both more productive and profitable.

New Zealand is a food producing nation which prides itself on the story we have to tell, often overlooked though is that people are at the heart of that story. Improving employee engagement on farm will help dairy farmers be better employers, and ultimately better equipped to retain employees. The aim of this report is to better understand the concept of employee engagement and how it can be understood, measured, and created. Employee engagement is a concept that is not unique to any specific business type or size, therefore can be applied to any farm situation regardless of the number of employees.

Gallup is an organisation with over thirty years of research on employee engagement. Gallup is used by thousands of organisations globally with the intention of identifying areas where employee engagement is lacking and may be improved. Gallup employee engagement surveys consist of twelve questions which directly relate to twelve basic human needs.  Humans are social and phycological beings who must be understood and known as people not just as employees.

An investigation into employee engagement at FMG, has been carried out. FMG is an organisation with a highly engaged workforce and a very apparent focus on people, ranking in the 76^th percentile globally in the Gallup employee engagement survey. FMG uses the service profit chain, a model which puts people at the centre of everything, where happy employees leads to increased productivity and happy clients  and happy clients lead to increased profitability of the organisation.  Themes and learnings can be taken from this case study and practically applied to an on farm environment.

The recommendations of this report are intended to be able to be easily applied in farm to aid in improving the engagement of employees, recommendations are as follows;

• Provide development opportunities.
• Give feedback and recognition.
• Share and discuss purpose.
• Give flexibility and autonomy where possible.
• Improving employee engagement takes time.

Industries do not change when new systems are introduced, they change when people adapt to those new systems.

COVID-19. New Zealand Lockdown. We all lived through not knowing what was coming next. What does this have in common with Greenhouse Gas (GHG) emissions? Uncertainty and imposed change.

While as a nation we were unsure how long Lockdown would go for, farmers do not know what regulations will come into place and in some instances if their businesses will survive. For both COVID-19 and GHG system changes, there is no known endpoint, you cannot see the virus or gases and the science is evolving. Both are technical challenges with critical social components. And finally, both have a large amount of imposed change in a pressured timeframe.

The objective of this report is to build awareness. Awareness of what people are experiencing internally before being able to accept and embody change. Lockdown has given a global lesson in empathy. In my opinion, building a community of support, where people can lean on each other when they are struggling and celebrate with each other when they win, is crucial for achieving decreased GHG emissions.

Achieving reduced GHG emission targets is a New Zealand Inc challenge, not solely an Agricultural sector challenge. This report proposes a Team New Zealand approach to achieving national GHG emission targets.

This report explores the social aspect of a GHG induced system change from two perspectives: a psychological and an imposed change management view. The example of Lockdown is used as is a recent shared lived experience at a national level and as such, one all New Zealander’s can relate to. The report proposes increased awareness at a national level of the change farmers will have to undergo. The metaphor of Lockdown is used as all New Zealanders experienced it and as such, it is an efficient way to build empathy for those facing imposed GHG regulations and the resulting on-farm system change.

During Lockdown, uncertainty was great. The end goal of stopping the spread of COVID-19 was known, but the plan to get there could change at any time. Different numbers were reported from various sources internationally. It was confusing. There are elements of contested science including treatment methods, the effectiveness of masks and the Lockdown approach in general. And what does compliance look like? If a vaccine is successfully developed, will we maintain our autonomy, or will vaccination be mandatory?

Consider the above while thinking about farmers facing impending GHG regulations. The end goal to decrease New Zealand’s GHG emissions is known. New Zealand’s farming practices will have to change. However, the plan to achieve reduced emissions is not confirmed. And when it is, changes to that plan appear inevitable. The numbers are changing as the science evolves and this leads to confusion. There are elements of contested science including measurement and definitions. And what does compliance look like? How much autonomy will farmers retain and how much will compliance cost?

The psychological Stages of Impact experienced due to COVID-19 have been documented and are applied and compared to facing imposed regulations. The stages are information overload, concern, confusion, panic, fear and end with sadness. This conveys what farmers might experience facing impending GHG regulations.

As a nation, we experienced moving through the Imposed Change Curve; a seven-step change model. Initially there was (1) shock and (2) denial. Blame was bandied about as (3) frustration grew. Energy levels and motivation was low as we navigated the (4) depression stage. The stage where uncertainty about the future is felt the most. But as we started to (5) experiment with the new systems and developed our capability within the new rules, our confidence grew. It is (6) decided to slowly accept change until it becomes fully (7) integrated. People may not agree or like the change, but it is accepted as the way things are.

During Lockdown, there were certain events that helped with the uncertainty: The 1pm updates by the Prime Minister and senior officials with confirmed case numbers and next steps. The fact that we were all working together as a nation to reduce the spread and save lives. Friends and family who provided support through Zoom and messages. The common theme – conversation and community.

To achieve GHG emission targets, this report proposes:

1. A cohesive Team New Zealand who all understand their role in reducing emission numbers: A New Zealand Inc. approach is taken. Team New Zealand rises to the challenge, not just New Zealand farmers. Achieving GHG targets also secures trade relationships and the trust of the international consumer. In turn, the Primary Industries contribute to New Zealand’s economy and thus the prosperity of the nation. Road transport accounts for a large proportion of emissions alongside agriculture – we all need to work together to make a difference
2. A trusted face of GHG mitigation with national recognition: A national GHG representative who the general public recognises and trusts. Like Dr Ashley Bloomfield during COVID-19. This person would communicate quality information, strategies and tactical plans. This role is important for gaining momentum at a national level
3. Practices and support to build and grow resilience: Resilience is crucial for enduring times of uncertainty. Creating awareness of what the stages of imposed change feel like and providing tools to better support farmers through those stages. The sector has a mental health issue that needs support. Furthermore, adaptation at the rate that is required requires resiliency

We have a rich history in being innovative and resourceful to solve difficult problems. We have shown the world what is possible when Team New Zealand pulls together. Pulling together to achieve GHG emission targets is the right thing for us to do.