Special Alert Livestock Herd Scheme 2018
Farming – always the ups and downs of climate, markets and stock values !
Once again, the government took a snap-shot at 30 April throughout New Zealand and across various markets to determine the Herd Value to be used for tax purposes (also called the NAMV – national average market value). Always a moving target! When you are in the herd schemes, changes in values up are not taxable and down are not deductible.
Sheep
With the significant increase in the schedule and demand for sheep the values have lifted by 13 – 29%.
To give an idea of the changes:
2017 2018
Ewe hoggets 109 123
2th ewes 150 179
MA ewes 131 160
R 5+ ewes 110 142
For those farmers with sheep in the herd scheme at your 2017 balance date - this will trigger non-assessable income as the opening stock is revalued.
Dairy
As expected the dairy values kept see-sawing from the high in to a low in 2016. Back up in 2017 and down again this year.
2017 2018
Friesian R1 heifers 819 691
Friesian MA cows 1,649 1,529
Beef Cattle
Cattle values have flattened after the strong increase at the April 2017 snap shot.
A couple of the movements are:
2016 2017 2018
MA Cows 1,273 1,431 1,497
R 2 bulls/steers 1,229 1,325 1,283
R 1 bulls/steers 842 986 922
Deer
Continued increase in those values.
2017 2018
R 1 hinds 303 380
R 1 stags 343 396
This is an overview of the changes. We are available to talk in more detail about how this impacts your farming figures.
Disclaimer - This publication has been carefully prepared, but it has been written in general terms only. The publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your situation.