Newsletter 12.04.15

IRD are targeting those who have been selling assets through Trade Me. Kerry Adams from DAA says there are many farmers amongst the 45,000 files handed over to the IRD by Trade Me who will be investigated for trading without paying tax. He says many of those farmers have been writing assets off their books and then selling them for cash. He says anyone doing that can expect to be targeted by IRD.

The IRD is circulating suggestions to make our tax system easier for the end user. Kerry Adams from DAA says with on line services IRD are now providing, it is an ideal time for IRD to simplify all their systems to ensure farmers and others can understand them and benefit from doing more themselves. However he did state the suggested modifications were for day to day information flow and isn’t designed to replace chartered accountants.
Watch the full interview here

The drought may have broken for most of New Zealand, but parts of North Canterbury are still in dire straits. Doug Archbold from Rural Support Trust says many farmers in the area are spending up to $5,000 a week on supplementary feed and there’s no sign of any respite. As winter looms, the soil temperatures will drop and any hope of growth will disappear.

Capital stock are being sold or sent to slaughter as the drought continues in North Canterbury.  That will obviously cause problems for farmers as they are selling at the bottom of the market and will be faced with buying replacements at the top of the market. 

Concerns about next year’s incomes for sheep and cattle farmers as they sell off capital stock to reduce costs now and they face the problem of a lack of lambs or calves in the spring. Doug Archbold from Rural Support Trust says a very large percentage of farmers in North Canterbury are selling stock to the North Island and face a massive drop in potential income nest season.
Watch the full interview here

The flow on effects of this year’s drought will be felt for years to come according to Federated farmers executive Frank Benmuhl. Frank says the loss of capital stock and the resulting loss of lambs and calves will impact badly for the sheep and beef community, and the dairy farmers are also reducing numbers as their returns drop and costs rise. He says new regulations looming about the use of nitrogen will impact heavily and farmers are advised to be very cautious when it comes to spending and increasing debt loads.
Watch the full interview here

A grass that looks very similar to a bamboo is being trialled by Lincoln University and has the experts excited. Prof Steve Wratten says the grass grows to a height of several metres making it a great shelter belt, centre pivots can roll through it with ease and it can be used as a fuel for engines or for heating if made into a pellet. 
Watch the full interview here

If you want to know more contact Rob at rob@ontheland.co.nz

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