17 August 2006 Farmers older and higher educated

 

 

Associate Professor Nuthall, of Lincoln University's Farm Management Group, says the average age of the farmer respondents in the latest survey was around 51 years. In 2001 it was closer to 49 years whereas in 1998 the average was 48. In contrast, the average age in 1993 was 45.

 

“There is a clear trend which can’t go on for ever,” he says.

 

“One of the difficulties of getting younger people into farm ownership is the increasing size and value of farms. In days well gone it was possible for aspiring farmers to save and eventually purchase, often with the help of State supported mortgages. Extensive financial help is now required, perhaps from family sources at discounted prices.

 

“In 1990 the NZ Rural Land Price index sat at 1188, whereas by 2002 this had moved to 2698 showing a more than doubling impact. While this index is no longer calculated, it is clear the trend has continued making an even bigger hurdle for aspiring farm owners. On top of this is the increasing size of farms as amalgamations occur to provide economic units.

 

“Perhaps it is the average age increase, or the improving education, but farmers self-rated their managerial skill at 62% in 2001. In 2005 this same figure had increased to 70%, a distinct increase. Hopefully this translates into increasing production efficiency,” says Associate Professor Nuthall.

 

“What is also very clear from the latest survey is the increasing level of formal education. In 1993 27% of the survey respondents had attended some form of tertiary education. Much the same response was received in 1998. But by 2001 33% had received tertiary education, and by 2005 this had increased to 39%.

 

“What’s more, the average final grade in their last year of study was 61% in the 2005 survey.”

 

Compared with the average for the population in general, farmers have higher education levels. Over 53% had greater than three years of secondary schooling.

 

“While formal education does not guarantee managerial success, it certainly helps,” says Associate Professor Nuthall.