The agricultural sector has faced a raft of challenges in the past two years, but a new report shows farm employers across the dairy, sheep and beef, and arable sectors have continued to invest strongly in one of their greatest assets — their staff.
The agricultural sector has faced a raft of challenges in the past two years, but a new report shows farm employers across the dairy, sheep and beef, and arable sectors have continued to invest strongly in one of their greatest assets — their staff.
The 2024 Federated Farmers-Rabobank Farming Salaries Report released recently shows that since the last report in 2022, the average salary for a farm worker has increased by $7480 to $71,411 and the weighted average annual salary across the 13 surveyed on-farm position categories has grown by 13%.
“For some more senior roles, the increases have been significantly higher,” Federated Farmers national board member and employment spokesperson Richard McIntyre says.
“For example, the average salary for a dairy herd manager is up 19% to $74,185. A sheep/beef farm manager is earning an average 22% more than two years ago ($88,381) and the average income for an arable farm manager is up 28% to $101,264.”
Richard says the increases are impressive, especially in light of all the headwinds farmers have contended with over the past two years, which have included COVID, severe weather events, production-suffocating red tape, inflation, and roller-coaster commodity prices.
“And these upwards salary movements underline that careers in agriculture are not only satisfying but also pay-competitive,” he says.
This 2024 report is the 14th Farming Salaries report that Federated Farmers and Rabobank have produced. The report collates the results from a remuneration survey conducted by independent firm Research First in early 2024, and the findings cover data collected from 529 farm employers relating to nearly 1800 employees.
The report shows that between 2022 and 2024, weighted average salaries rose by 11% for dairy sector roles, by 17% for sheep and beef roles, and by 14% for arable roles.
Richard says the report also highlights strong growth in Total Package Values (TPV) for farm employees.
“The salary figures do not include the range of other benefits provided to farm employees, which can include things such as vehicle usage, meat, firewood, phone, and power allowances.
“For many farm employees, those extras can add up to several thousands of dollars a year. For example, the average Total Package Value for someone working in the sheep and beef sector rose to $76,296, nearly $3700 more than the salary.”
The report shows the average weekly hours worked on farms is below the International Labour Organisation’s recommended maximum standard weekly total of 48 hours. The average number of hours worked by a permanent dairy staff member was 46.3 hours. On a sheep and beef farm, it was 44.4 hours and on an arable farm 46.3 hours.
Rabobank general manager for Country Banking Bruce Weir says the low unemployment environment was one of the key factors that had driven on-farm salaries higher over the past 24 months.
“Many farm owners have found it incredibly difficult to source skilled labour over recent years, and this has played a key role in lifting wages as employers have had to pay more to attract and maintain good staff,” he says.
Bruce says while growth in on-farm salaries increased costs for farm owners, it was crucial to help attract young people into agricultural careers.
“Alongside our client councils, Rabobank is involved in a number of activities that focus on highlighting to secondary school students the array of career opportunities available across the agri sector,” he says.
“We know that remuneration is a key consideration for this group when they’re thinking about career pathways and, if we want to attract good young people into the sector, it’s vitally important that growth in salaries for on-farm roles keeps pace with, or exceeds, what is happening across the wider employment market.
“Statistics NZ data tells us that Labour Cost Index wage growth across all New Zealand sectors in the 24 months to 31 December last year was around 11%1, so it’s good to see salaries for most of the surveyed on-farm positions growing at this rate or quicker over the same period.”
Footnote
1 Average hourly earnings up 6.9%annually | Stats NZ
Labour market statistics: December 2022 quarter | Stats NZ
Images supplied, Adobe Stock
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