Farming - the ups and downs of climate, markets and stock values!
Once again the Government took a snap-shot at 30 April (regardless of your balance date) 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 and with a special twist this year from COVID - 19!
When you are in the herd schemes, increases in values are not taxable and decreases are not deductible.
SHEEP - With the significant disruption in the schedule and demand for sheep at 30 April, the values have decreased. To give an idea of the changes:
2018 2019 2020
Ewe hoggets 123 135 108
2th ewes 179 214 177
MA ewes 160 190 156
R 5+ ewes 142 164 128
BEEF CATTLE - Cattle values have reduced further from the April 2019 snapshot. A couple of the movements are:
2018 2019 2020
MA Cows 1,497 1355 1090
R 2 bulls/steers 1,283 1209 1035
R 1 bulls/steers 922 844 678
DAIRY - Some positive movement, mainly in the yearling heifers.
2018 2019 2020
Friesian
R1 heifers 691 685 737
Friesian
MA cows 1,529 1,513 1,525
DEER - Significant decrease in values ranging from 14% to 38%.
2018 2019 2020
R 1 hinds 380 384 236
R 1 stags 396 441 283
This is an overview of the changes. We are available to talk in more detail about how this impacts your farming figures.
