LIC semen probe results to be made public
The result of two probes into the supply of bad sire semen to over 1100 LIC farmer customers will be made public next month.
The financial year-end is near for farmers, but there is still time for them to manage profit levels in a way that could help avoid potential high interest penalties on tax payments, says Neil McAra, managing principal - Southland, for Crowe Horwath.
"Dairy farmers in particular should be providing for increased tax liabilities," said McAra. "In certain circumstances, if you haven't paid enough tax during the year, the IRD can charge for use of money interest at a current rate of 8.4%. Decisions on whether you incur expenditure before or after year-end can be significant."
McAra notes that farmers considering expenditure on items such as repairs to drains, tracks or additional fertiliser, should consider bringing these forward to enable a deduction in the current year.
Repairs and maintenance are 100% deductible and capital items depreciable over the life of the asset, he said. And there are strict requirements around what constituted repairs and maintenance, as well as specific regimes that provided concessions for farmers that differ from the usual capital/revenue distinctions.
"It pays to understand how these distinctions work and who they apply to, particularly where different entities own the land and carry on the farming activity," he says.
McAra says that having a budget at the start of the year and updating a forecast during the year was essential in order to have a clear understanding of the ability to manage tax payments.
"At this stage in the year, farmers should have a reasonable estimate of where their year will close out, and be making the necessary tax payments based upon that," he says.
"If you are trading through a company, trust or an individual with high income levels, it is likely that you will be exposed to potential use-of-money interest penalties. You need to talk to your accountant now about ensuring you have met these obligations or have put processes in place to understand your requirements."
Budgets are not only important for managing tax payments, but to understand cash flow needs, he says, especially for dairy farmers with strengthening cash flow over the next six months.
Divine table grapes that herald the start of a brand-new industry in Hawke’s Bay have been coming off vines in Maraekakaho.
In what appears to be a casualty of the downturn in the agricultural sector, a well-known machinery brand is now in the hands of liquidators and owing creditors $6.6 million.
One of New Zealand’s deepest breeder Jersey herds – known for its enduring connection through cattle with the UK’s longest reigning monarch, Queen Elizabeth II – will host its 75th anniversary celebration sale on-farm on April 22.
Rural trader PGG Wrightson has revised its operating earnings guidance, saying trading conditions have deteriorated since the last market update in February.
It's been a bumper season for maize and other supplements in the eastern Bay of Plenty.
Leading farmers from around New Zealand connected to share environmental stories and inspiration and build relationships at the Dairy Environment Leaders (DEL) national forum in Wellington last month.
OPINION: Talking about plant-based food: “Chicken-free chicken” start-up Sunfed has had its valuation slashed to zero by major investor Blackbird…
OPINION: Synlait's financial woes won’t be going away anytime soon.