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.

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

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

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.