File image. Photo: 123RF
Farm worker annual salaries have jumped $7480 on average in the past two years.
A just-released Federated Farmers Rabobank Salaries Report shows across all farming types, the average salary was now $71,411 - similar to a primary teacher's pay.
Between 2022 and 2024, dairy worker salaries rose 11 percent , sheep and beef 17 percent and arable 14 percent - with an average week being between 44 and 46 hours.
This does not include other benefits such as meat, firewood, phone or power allowances. Extras can add up to several thousands of dollars a year.
Federated Farmers employment spokesperson Richard McIntyre said 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.
He said the increases were even bigger for more senior roles.
The average salary for a dairy herd manager was up 19 percent to $74,185. A sheep/beef farm manager was earning an average 22 percent more than two years ago ($88,381) and the average income for an arable farm manager was up 28 percent to $101,264.
"This is 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.
"Even with tight times farmers are prepared to pay good money for good people. They see the value that it brings to their business in terms of improved farm performance and reduced costs through the likes of reduced breakages," he said.
Asked how much of an impact the the Accredited Employer Work Visa which required employers to pay at least the median wage to international workers had on pushing up wage rates, McIntyre acknowledged it had some impact.
"But it's not the role in it's entirety. It's more complicated than that. There are a lot of sectors that don't have huge numbers of migrant staff on the Accredited Employer Work Visa and certainly very few come in at a highly skilled level and those are the categories that have seen the highest wage growth," he said.
Rabobank general manager country banking Bruce Weir said while growth in on-farm salaries increased costs for farm owners, it was crucial to help attract young people into agricultural careers.
He said highlighting to secondary school students the array of career opportunities available across the agriculture sector was important.
"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 December 31 last year was around 11 percent 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."