SPECIAL ALERT - Livestock Herd Scheme 2020

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.


BM Accounting Limited