Financial Budget Manual Vol 41,vii. by Aginfo

Lincoln University FINANCIAL BUDGET MANUAL Volume 41

EDITOR: Rob Reynish Agribusiness Business Development,

Faculty of Agribusiness and Commerce P. O .Box 85084 Lincoln University Lincoln 7647 New Zealand

ISBN 978-0-86476-432-4 ISBN 978-0-86476-433-1 available on line ISSN 0113-1397 ii

PREFACE The "Financial Budget Manual Vol 41" is an invaluable reference book for farmers and growers, consultants, and students. It contains a wealth of information on farm and orchard costs and prices, the profitability of different enterprises, and income taxation. Following its successful introduction in 1969, the manual is also available to purchase as an online Ereader https://aginfo.lincoln.ac.nz/manual/financial-budget-manual-vol-40-online/ Unless stated otherwise, data contained in the Manual are current mid-2023 and are exclusive of GST. Acknowledging the current inflation rate effect in New Zealand, prices will not remain stationary so the Manual should be used as a guide only. Market movements and exchange rate changes are just two of the factors which can rapidly alter costs and prices. The availability of discounts for bulk purchases, and deferred payment arrangements, may also affect final costs for budgeting purposes. In addition, some commodity price information is becoming increasingly sensitive and remains confidential between the client and the supplier and/or buyer. It is therefore unavailable for publication in this Manual. Information quoted has been gathered from sources throughout New Zealand, but some variation may occur between regions. Trade names have been used for clarity and convenience; no preferential endorsement by the University is intended, nor is any criticism implied of any product which does not appear in the Manual. Our sincere thanks to staff at Lay Associates Ltd, who contributed updates for Section 4 on Tax. All the individuals, organisations and commercial firms who have provided information for our use. Without their co-operation, the production of the Financial Budget Manual would not be possible, and we sincerely appreciate the willingness of all those who have contributed.

Disclaimer:

This publication has been written, edited, published and is made available on the basis that Lincoln University and all other parties involved in or contributing to the publication fully exclude all liability including for negligence in respect of or arising out of the use, reliance or otherwise of this publication by any person for any purpose. This publication should not be resorted to as a substitute for professional research or advice.

For readers' information the Faculty of Agribusiness and Commerce at Lincoln University also produces a companion volume –the "Farm Technical Manual" and an annual supplement “Enterprise Analysis” . These books are also available as “online Readers” and hard copies, these essential publications provide an unbiased view of Financial and Technical information required by farmers and others involved in Primary industries. Rob Reynish

EDITOR 2023 iii

TABLE OF CONTENTS PRODUCT PRICES

MARKET PRICES .................................................................................................. 2 Impact of Exchange Rate on Product Prices ............................ 2 Exchange Rate............................................................................................ 3 SHEEP ......................................................................................................................... 4 Lamb Schedule (Export)......................................................................... 4 Lamb Price.................................................................................................... 5 Mutton and Lamb Average Price $ per head values since 2014 ............................................................................................... 6 Ewe and Lamb - Prime Stock (Local Sales) ................................... 6 Ewe and Lamb - Store and Breeding Stock ................................. 7 Wool Market Prices ................................................................................. 8 Wool Price Trends .................................................................................... 8 CATTLE ....................................................................................................................... 10 Store and Breeding Cattle Prices .................................................... 11 DAIRY PRODUCE .................................................................................................. 20 Fonterra Payout History ...................................................................... 23 Deductions for Poor Quality Milk ................................................... 23 Dairy Cattle Values .................................................................................. 24 Dairy and Dairy-Cross Calves............................................................. 25 DEER PRODUCTION ............................................................................................ 27 Venison Price Trends ............................................................................. 27 Deer Live Stock Values........................................................................... 28 Velvet

……………………………………………………………………………………………………..29

GOAT PRODUCTION ............................................................................................ 30 Introduction ............................................................................................... 30 Goat Meat Prices (Chevon) ................................................................... 30 Goat Milk ....................................................................................................... 30 iv

Goat Fibre ..................................................................................................... 31 PIG PRODUCTION ................................................................................................. 33 Pig Meat Prices .......................................................................................... 33 CAMELIDS ................................................................................................................. 33 CROPS ......................................................................................................................... 35 Wheat

……………………………………………………………………………………………………..35

Barley

……………………………………………………………………………………………………..39

Oats

……………………………………………………………………………………………………..41

Peas

……………………………………………………………………………………………………..43

Maize/Maize Silage .................................................................................. 45 Ryecorn……………………………………………………………………………………………………..47 Lentils (red) .................................................................................................. 47 Triticale ......................................................................................................... 48 Lupins ……………………………………………………………………………………………………..48 Linseed ……………………………………………………………………………………………………..49 Evening Primrose..................................................................................... 49 Borage ……………………………………………………………………………………………………..50 Oilseed Rape / Canola ............................................................................. 50 SMALL SEEDS ......................................................................................................... 51 Pasture Grasses......................................................................................... 51 Turf / Amenity Species .......................................................................... 51 Legumes......................................................................................................... 52 Forage Herbs ............................................................................................... 52 Forage Brassicas ....................................................................................... 52 FRUIT PRODUCTION ........................................................................................... 53 Fruit Prices - General ............................................................................. 53 Apples ……………………………………………………………………………………………………..53 Avocados ....................................................................................................... 54 Feijoa

……………………………………………………………………………………………………..55 v

Grapes ……………………………………………………………………………………………………..56 Kiwifruit ........................................................................................................ 57 Olives

……………………………………………………………………………………………………..58

Pears

……………………………………………………………………………………………………..58

Blueberries .................................................................................................. 58 VEGETABLE PRODUCTION .............................................................................. 59 Vegetable Prices - General .................................................................. 59 Asparagus ..................................................................................................... 59 Red Capsicum ............................................................................................. 60 Onions ……………………………………………………………………………………………………..60 Potatoes ........................................................................................................ 61 Cauliflower whole ................................................................................... 61 Broccoli per head ..................................................................................... 61 Sweetcorn per each................................................................................ 62 Carrots per Kg ........................................................................................... 62 Spring Onions per Bunch ..................................................................... 63 Tomatoes loose per Kg .......................................................................... 63 APICULTURAL PRODUCTION......................................................................... 64 Beeswax ......................................................................................................... 64 Pollen

……………………………………………………………………………………………………..65

Propolis ......................................................................................................... 65 Pollination ................................................................................................... 65 Live Bees ........................................................................................................ 66 LOGS………………………………………………………………………………………………………………….......67 Indicative Average Log Prices – September 2023 ................. 67 Forestry Forecasts Export 2018 - 2026 ........................................ 68 INPUT PRICES - GENERAL INFORMATION ............................................. 71 Input Price Movements ........................................................................ 71 Price Discounts ......................................................................................... 71 vi

Inflation Timeline in New Zealand.................................................. 72 WAGES / SALARIES / DRAWINGS .................................................................. 74 Wages and Salaries - Farm Employees.......................................... 74 Drawings ....................................................................................................... 79 ANIMAL HEALTH .................................................................................................. 81 Animal Health - Average Costs ......................................................... 81 Drenches / Vaccines / Bloat Control ............................................... 83 Dips / Sprays / Ointments / Dressings ........................................... 89 Metabolics / Antibiotics ....................................................................... 91 Animal Health Services ......................................................................... 93 Animal Health Equipment ................................................................... 96 Dog Expenses .............................................................................................. 100 Breeding Expenses .................................................................................. 102 Sire Purchases ........................................................................................... 107 Herd Testing Charges ............................................................................ 109 Dairy Shed Expenses............................................................................... 110 Calf Rearing ................................................................................................. 116 Feed and Nutrition .................................................................................. 121 Scales and Platforms .............................................................................. 138 Stock Feeding Systems and Equipment ...................................... 148 CONTRACTING CHARGES ................................................................................. 150 Hay Making .................................................................................................. 150 Silage

……………………………………………………………………………………………………..151

Cultivation / Drilling ............................................................................... 152 Heading / Harvesting.............................................................................. 153 Aerial Oversowing .................................................................................... 154 Dipping ……………………………………………………………………………………………………..154 Tailing / Dagging / Drenching ............................................................ 155 Pregnancy Diagnosis.............................................................................. 155 vii

Miscellaneous Contracting ................................................................ 156 ELECTRICITY .......................................................................................................... 157 Total Farm Electricity Costs .............................................................. 157 Regional Electricity Charges ............................................................. 158 Cost of Power Installation................................................................... 159 FERTILISER and LIME ....................................................................................... 160 Fertiliser ....................................................................................................... 161 Lime

……………………………………………………………………………………………………..177

Fertiliser Spreading / Application Costs ..................................... 178 Testing of Soil, Water, Plant and Feeds ....................................... 181 FREIGHT AND CARTAGE................................................................................... 184 Road Transport Rates ........................................................................... 184 Railway Transport Rates ..................................................................... 185 Inter-Island Ferry Freight Rates ..................................................... 185 Air Freight Rate ......................................................................................... 186 SEEDS, PLANTS AND PROPAGATION ........................................................ 187 Seeds - Pasture .......................................................................................... 187 Seeds – Forage Cultivars ...................................................................... 194 Seeds - Arable Crops ............................................................................... 197 Seeds - Process Crops ............................................................................ 197 Seeds - Turf Grasses................................................................................ 197 Coated Seed ................................................................................................. 198 Vegetable Seeds ........................................................................................ 198 Flower Seeds / Bulbs / Plants ............................................................. 201 Fruit Trees and Plants ........................................................................... 203 Planting / Propagating Expenses .................................................... 207 Growing Medium ...................................................................................... 210 WEED, PEST AND DISEASE CONTROL ....................................................... 211 Weed and Pest Control – Budget Figures ................................... 211 viii

Weed, Pest and Disease Control – General ................................. 212 Herbicides .................................................................................................... 213 Insecticides ................................................................................................. 214 Molluscicides.............................................................................................. 215 Fungicides .................................................................................................... 216 Algaecides .................................................................................................... 217 Rabbit / Rodent / Opossum Control ............................................... 217 Bird Repellents ......................................................................................... 218 Bactericides ................................................................................................ 218 Wetting, Spreading and Marking Agents ................................... 218 Growth Regulants .................................................................................... 218 Adjuvants ...................................................................................................... 219 Soil Fumigants ........................................................................................... 219 Penetrants ................................................................................................... 219 Root Forming Hormones ..................................................................... 219 Spraying Costs - Aerial and Ground ............................................... 220 SELLING, HANDLING, PROCESSING CHARGES AND LEVIES ......... 222 Stock and Station Agent Commissions ........................................ 223 Wool Selling Charges .............................................................................. 224 Wool Classing Charges........................................................................... 224 Goat Fibre Charges / Levy ..................................................................... 224 Velvet Charges ........................................................................................... 225 Livestock Levies ........................................................................................ 225 Dairy Company Shares ........................................................................... 227 Herbage Seed Levy ................................................................................... 227 Arable Crop Growers Levies ............................................................... 228 Seed Royalties ............................................................................................ 228 Horticultural Levies................................................................................ 229 Forest Growers Levy ............................................................................... 232 ix

SUNDRY CROPPING AND HORTICULTURAL EXPENSES ................. 232 Grain Drying and Testing Charges .................................................. 232 Seed Testing Fees ..................................................................................... 233 Crates and Packaging............................................................................. 234 Packing Charges - Horticultural Produce .................................. 234 Cool Storage ................................................................................................ 235 Safety Equipment ..................................................................................... 236 Protection (crop) ....................................................................................... 238 Pollination ................................................................................................... 240 Weighbridge Charges ............................................................................. 241 GPS Units....................................................................................................... 241 REPAIRS AND MAINTENANCE....................................................................... 243 Total Repairs and Maintenance per Farm/Orchard .............. 243 Farm Improvements, Plant and Machinery .............................. 244 VEHICLE EXPENSES ............................................................................................ 245 Total Vehicle Running Expenses ..................................................... 245 Tractor Running Costs ......................................................................... 246 Fuel, Oil and Grease ................................................................................. 252 Tyres and Tubes ........................................................................................ 253 Licensing / Road Charges ..................................................................... 253 Combine Harvester Running Costs ................................................ 255 Ownership and operating example ................................................ 255 PROFESSIONAL FEES ......................................................................................... 256 Accountancy Fees..................................................................................... 256 Farm Consultancy Charges ................................................................. 256 Land Transfer Fees .................................................................................. 257 Legal Fees...................................................................................................... 257 Real Estate Charges ................................................................................ 258 Valuation Charges .................................................................................... 258 x

Survey Fees .................................................................................................. 259 ADMINISTRATION EXPENSES ....................................................................... 260 Average Administration Costs ......................................................... 260 Telephone and Internet Costs........................................................... 261 Postage ……………………………………………………………………………………………………..262 Courier Charges ......................................................................................... 263 Subscriptions (Magazines/Farming Organisations) ............. 266 STANDING CHARGES .......................................................................................... 267 Insurances .................................................................................................... 267 Rates

……………………………………………………………………………………………………..269

Rent on Leased Land ............................................................................... 270 Banking Requirements and Financial links. ......................................... 276 Cost of Table Mortgages ...................................................................... 279 WATER SUPPLY, IRRIGATION AND DRAINAGE ................................... 282 Water Supply Development Costs (2023) ..................................... 282 Water Tanks................................................................................................. 283 Water Troughs ........................................................................................... 283 Pumps and Windmills ............................................................................ 284 Effluent Pumps, Sumps, Irrigators and Pond Stirrers ....... 285 Well Drilling................................................................................................. 288 Pipes, Valves and Fittings .................................................................. 289 Resource Consents, Water and Discharge Permits .............. 291 Irrigation Equipment - Pastoral and Horticultural .............. 294 Irrigation Equipment – Horticultural .......................................... 296 Irrigation Water Supply Charges ..................................................... 297 Irrigation Earthworks ........................................................................... 297 Drainage and Sub-soiling Costs ....................................................... 297 Dairy Shed Effluent Disposal ............................................................. 299 Septic Tanks ................................................................................................ 300 xi

FENCING COSTS ..................................................................................................... 301 Overview of contract fencing ............................................................ 301 Wire

……………………………………………………………………………………………………..306

Posts / Strainers / Battens / Stays ................................................... 307 Gates

……………………………………………………………………………………………………..308

Precast Cattle Deterrent ...................................................................... 309 Wire Netting ................................................................................................ 309 Fencing Tools and Equipment .......................................................... 310 Electric Fence Energisers ................................................................... 312 Insulators ..................................................................................................... 312 Electric Fence Reels and Wire ........................................................... 313 Electric Fence Cable ................................................................................ 313 Electric Fencing Accessories ............................................................. 314 Staples ……………………………………………………………………………………………………..314 MACHINERY, IMPLEMENTS and PLANT ................................................. 315 Tractors ....................................................................................................... 315 Farm Bikes, Bike Trailers and Accessories................................ 316 Mowers, Toppers and Mulchers ....................................................... 318 Hay Making Equipment ........................................................................ 320 Spray Equipment ..................................................................................... 323 Tractor Transport Trays ...................................................................... 327 Frontend Loaders / Forklifts ............................................................. 327 Trailers ……………………………………………………………………………………………………..328 Silage Wagons / Forage Harvesters ................................................ 329 Grain Crushers ........................................................................................... 329 Fertiliser and Prill Applicators ........................................................ 330 Fertiliser and Manure Spreaders and Topdressers .............. 330 Trucks and Utilities (Light Commercials).................................... 331 Cultivation Implements ....................................................................... 332 xii

Planting Implements ............................................................................. 334 Harvesting Equipment .......................................................................... 336 Farm Bulldozers........................................................................................ 336 Grader Blades / Snow Ploughs........................................................... 336 Other Farm / Orchard Equipment ................................................... 337 BUILDINGS and STRUCTURES ....................................................................... 344 Building Consent Charges ................................................................... 344 Dairy Sheds .................................................................................................. 344 Stock Underpasses .................................................................................. 345 Off Paddock Infrastructure ............................................................... 346 Deer Sheds .................................................................................................... 347 Woolsheds .................................................................................................... 348 Stockyards - Cattle .................................................................................. 349 Stockyards - Deer ..................................................................................... 351 Stockyards - Sheep .................................................................................. 352 Greenhouses, Growing Tunnels and Tunnel Houses ............ 353 Houses / Cottages ..................................................................................... 359 Garages ……………………………………………………………………………………………………..359 Implement Sheds/Haybarns/Stock Shelters/Dog Motels..359 Bridges ……………………………………………………………………………………………………..362 Grain Silos..................................................................................................... 362 Diesel Tanks ................................................................................................ 365 Killing Sheds ............................................................................................... 365 Dangerous Goods Sheds ....................................................................... 365 Building Materials ................................................................................... 365 SHELTER and FARM FORESTRY COSTS .................................................. 366 Seedling Trees ............................................................................................ 366 Forestry Establishment and Tending Costs ............................. 367 Logging and Transportation Costs, (NZ Forestry data) ....... 368 xiii

Tree Planting Equipment .................................................................... 369 Shelter / Windbreak / Shade and Weed Cloth ............................ 369 COMPUTERS............................................................................................................ 371 Farm Accounting, and farm Management software ............. 371 Guidelines for Purchasing a Farm Computer ........................... 371 General Guidelines................................................................................... 373 APPENDIX: INFLATION IN NEW ZEALAND ............................................. 374 ENTERPRISE ANALYSIS………………………………………………………………………….…….376 LIVESTOCK ………………………………………………………………………….………………….…………..379 Hill Country Beed Breeding Cow Gross Margin ….…………….……..380 Bull Beef Gross Margin………………………….…………….………………………….…...381 Dairy Cow Gross Margin……………………………………………………………………....382 Merino Gross Margin……………………………………………………………….…………….383 Deer Gross Margin - Velvet Production, Red Deer…..…….……….384 Red Deer Gross Margin………………………………………………….……………….…….385 Sheep Gross Margin ………………………………………………….………………..…..…….386 Gross Margin Analysis Sheep Dairy……………………………………….……….387 Pig Gross Margin - Farrowing - Finishing ………………………….……….388 CROPPING………………………………………………………………………….………………….……….…….389 Gross Margin Barley……………………………………………………………..………………..390 Gross Margin Analysis for Carrot Seed……………………..…………………..391 Gross Margin Analysis For Field Peas……………………………..……………..392 Gross Margin Analysis for Maize…………………………….………………………..393 Gross Margin Analysis for Oil-Seed Rape……………………………………..394 Gross Margin Analysis Perennial Ryegrass Seed……………………..395 Gross Margin Analysis for Vining Peas…………………………..……………..396 Gross Margin Analysis For Wheat…………………………………………………….397 Gross Margin Analysis For White Clover Seed…………………………...398 Gross Margin Analysis For Fodder Beet………………………….…………….399 Gross Margin Analysis For Kale …………………………………..……...……….….400 xiv

HORTICULTURE ………………………….……………………………………………………………..………..….401 Gross Margin Analysis For Avocado Orchard ………………….….….402 Cherries Orchard Gross Margin Model ………………………….………….403 Gross Margin Analysis For Hops Orchard …………………………….….404 Gross Margin Analysis For Onions …………………………………….….…….405 Gross Margin Analysis For Potatoes ………………………….…………..….406 Gross Margin Analysis For Kiwifruit Orchard ……………..…….….409 Gross Margin Analysis For Vineyard Model ………………….……….411 Marlborough Vineyard Model ……………………………….…………….……….412 Gross Margin Analysis For Pipfruit Model ………………….………….413 TAXATION………………………………………………………………………………………..……………….…417 INTRODUCTION………………………………………………..…………………………..……………….…419 Tax Legislation……………………………………………………………..……………….………419 Changes to Tax Law……………………………………………………………………..……...419 THE INCOME TAX SYSTEM …………………………………………………………….……..……425 Overview………………………………………………………………………………………..………....425 PAYE (Pay As You Earn) Tax on Personal Income………….…….…426 Resident Withholding Tax………………………………………………………………..430 Provisional Tax System………………………………………………………………………431 Returns of Income…………………………………………………………………………………441 Assessment of Tax……………………………………………………………………………..…442 Penalties………………………………………………………………………………………..………….443 CALCULATING TAXABLE INCOME OVERVIEW……………………..…..………..445 Core Provisions…………………………………………………..………………..………….……445 CALCULATION OF TAXABLE INCOME - INDIVIDUALS…………………….446 Overview……………………………………………………………..………………………………….…446 Assessable Income……………………………………………………………..……………..…447 Exempt Income…………………………………………………..……………………………...…449 Deductions for Employees………………………………………....…….………….…449 xv

Personal Tax Credits……………………………………………………………..……………..….…449 Working for Families Tax Credit…………………………………………………….….…450 CALCULATING TAXABLE INCOME - COMPANIES…………………………….…452 Imputation System……………………………………………………………..…………..……….…452 Losses……………………………………………………………..……………………………………..……….…454 Payments to Associated Persons……………………………………..……………….…454 Dividends Received by Companies are Taxable………………………….…454 Qualifying Companies (QC’s) …………………………………………………….………….…454 Look-Through Companies (LTC’s) …………………………………………………….…455 Repurchase of Shares by a Company……………………………………………….…455 CALCULATING TAXABLE INCOME - PARTNERSHIPS…..……………….…456 Overview……………………………………………………………..…………………………..…………….…456 Family Partnerships……………………………………………………………..…………..…….…456 CALCULATING TAXABLE INCOME - TRUSTS …………………………………….…457 Classification of Trusts……………………………………………………………..…………..…457 Liability for Income Tax (Complying Trusts)

……………………………457

Income Distributed to Minor Beneficiaries

…………………..…….…458

CALCULATING TAXABLE INCOME - FARMERS……………………………………459 Farm Income……………………………………………………………………………………….……….…459 Farm Expenses……………………………………………………………..…………………………….…459 Deductions for Land Improvement Expenditure (Development Expenditure) …………………………………………..……………………………………………….….…464 Depreciation…………………………………………..…………………………………………….……..…466 Income Equalisation Schemes…………………………………………………………….…470 Valuation of Trading Stock

…………………………………………………….……..…473

Farm Forestry and Timber Sales

……………………………………….……….…483

Limitation of Tax Losses from Farming

…………………………………….…484

CALCULATING TAXABLE INCOME - HORTICULTURE

……………..…485

CALCULATING TAXABLE INCOME - FISHING INDUSTRY……….…….490 xvi

Fishing Quotas ……………………………………………………………..…………………….…490 Income……………………………………………………………………………………………………….…490 Deductible expenditure…………………………………………………….………………..490 Depreciation deductions……………………………………………………………..……..491 Repairs to fishing boats……………………………………………………………..…….…491 Fishing gear……………………………………………………………..………………………………..492 Income Equalisation Scheme………………………………………………………..….493 DISPOSITIONS OF RELATIONSHIP PROPERTY………………………..………494 FRINGE BENEFIT TAX…………………………………………..……………….………………………495 General Provisions……………………………………..…………………………………….…..495 Definition of 'Fringe Benefit'……………………………………………………….…..496 Value of Fringe Benefits………………………………………………………………………497 Calculation of Fringe Benefit Tax……………………………………………….…..503 GOODS AND SERVICES TAX (GST)………….…………………………………………….……507 Overview ……………………………………………………………………………………………….…507 Returns and Payment of GST……………………………………………………….……508 Calculating Output and Input Tax…………………………………………………..509 Recording GST………………………………….………………………………….………….……….511 Tax Invoices…………………………………………………………………………………….…………512 ACCIDENT COMPENSATION LEVY………………………………………………………………514 Components of ACC Levies ………………………………………………………………..514 TAXATION APPENDICES……………………………………………..………………………………..…516 2022/2023: Due Dates for the Payment of Provisional and Terminal Tax……………………………………………………………………………..………………516 Rates of Income Tax………………………………………………………………….……………517 Land and Aquaculture Development Expenditure Depreciation Rates………………………………………………………………………………………………………………519 Values for Specified Livestock………………………………………………….………522 Livestock Taxation Examples……………………………………………………………526

xvii

Accrual Rules for Expenditure (Deductions for Prepayments) …………………………………………………………………………………………………………………………533 Economic Rates of Depreciation……………..……………………………….……534 ‘Old’ Schedule of Rates of Depreciation………………………………..……553 Amortisation Rates for Listed Horticultural Plants……….…..554 SCHEDULE TO DETERMINATION DET 05/01 …………………………………..……556 Amortisation rates for listed horticultural plants………….……556 INDEX ………………………………………………………………………………………………………………..……558

xviii

PRODUCT PRICES

MARKET PRICES Impact of Exchange Rate on Product Prices

Exchange rate movements have a significant effect on Farm gate prices. The exchange rate is influenced by four main factors. These are the Government's fiscal policy (its spending behaviour), its monetary policy (how much money the Reserve Bank permits to circulate within the economy at any given time), the interest rate level (the cost of borrowing money on the domestic money market) and the inflation rate. The following table shows the estimated movements in farmgate prices for a 10% movement in trade-weighted exchange rates for a range of commodities. This movement in exchange rates effectively gives the same result as a price change at f.o.b.*. In general, the greater the processing and handling charges between the farmgate and f.o.b. as a proportion of the f.o.b. price the greater the impact of exchange rate movements in farmgate prices. Meat and Wool production is seasonal with most sold from Late November to June. Which means that the value of the NZD during this period is crucial to farmers, Growers and exporter Companies .

* f.o.b. - Free on Board (ship or aeroplane)

Farmgate price change for 10% movement in trade-weighted exchange rate Depreciation

Appreciation

Wool

+17.7%

-14.5%

Lamb

+15.5%

-12.7%

Mutton

+17.9%

-14.7%

Beef

+15.7%

-12.9%

Note:

The figures are a window of the Exchange rate effects.

Source: Beef + Lamb New Zealand Economic Service

Exchange Rate (i) Major Currencies and TWI to $NZ (2018/22)

2017/18

USA

Aust

Japan

Euro

TWI

Jun 2018

0.64

0.51

0.94

74.5

0.58

72.47

Jun 2019

0.67

0.53

0.96

72.08

0.59

73.20

Jun 2020

0.64

0.52

0.93

68.98

0.57

71.48

Jun 2021

0.69

0.50

0.93

77.31

0.59

73.74

Jun 2022

0.62

0.51

0.90

84.89

0.59

70.39

Sept 2023

0.58

0.46

0.92

86.57

0.54

69.34

Source: Reserve Bank.

(ii) Trade weighted Index 2015 – 2023

Source: Reserve Bank NZ, NZFMA

SHEEP Lamb Schedule (Export)

Meat which is destined for export is graded by individual companies reflecting the market’s needs. The various grades are paid for according to Works' schedules, which are set every week during the killing season. Below is a schedule from a meat company for a week in Sept 2023. Weights shown are hot weights in kilograms. Weight (kg)

GR mm

Net / kg

9.0 - 13.2

3 - 15

$3.80

13.3 – 13.9

3 - 15

$4.90

14.0 - 15.9

3 – 15

$6.45

16.0 – 18.9

3 – 15

$6.45

19.0 - 22.9

3 – 15

$6.45

23.0 – 24.9

3 – 15

$6.45

25.0 – 29.9

3 – 15

$5.60

30.0 – >

3 – 15

$4.65

Inclusive wool and cartage paid.

Lamb Price All Classes Lamb $/Hd compared on a month and annual average, 2013-2023

Source: Beef + Lamb New Zealand Economic Service

Mutton Schedule (Export) The mutton schedule works in a similar manner to lamb. Below is a schedule from a meat company for a week in Sept 2023. Weight (kg)

Net $ / kg

Under 18.0

2 - 16mm

$2.80

18.0 to 20kg

2 - 16mm

$3.40

21.1to 34.9 kg

2 - 16mm

$3.00

35.0 kg +

All grades

$3.05

Schedule includes wool and cartage paid.

Mutton and Lamb Avrage Price $ per head values since 2014

Ewe and Lamb - Prime Stock (Local Sales) A large amount of meat is sold directly from farms to wholesale buyers, but the prime stock auction sales in main centres still set the local market. The current situation can be determined from the weekly reports in the newspapers or www.interest.co.nz/rural. The following information should be used as a guide only. Sales Information (three main sale centres) Prices represent ranges from the prime sales at each centre for mid winter period. (Average $ per head). Northern

Central

Canterbury

Average

Lambs

$109

$135

$146

Ewes

$110

$125

$170

Source: www.interest.co.nz/rural. PGG Wrightson, Farmers Livestock

Ewe and Lamb - Store and Breeding Stock

The following table is an indicator of where prices currently sit,and should be used as a guide only, as store and breeding sheep prices may vary markedly between districts, seasons and breeds. Sales are normally on a per kg basis. Average Prices for Store Stock (N.Z. Regions) Store Lambs & Ewes ($/head) Northern

Central

Canterbury

Average

Lambs

$78

$105

$109

Ewes

$64

$74

$89

WOOL Wool Market Prices For Crossbred and mid micron wools the current outlook remains uncertain, with industry participants reporting it is difficult to see past the weak demand from China. There is currently little evidence signalling improvement in demand for mid-micron and crossbred wool in the medium term. Despite the subdued sentiment, the indicators for strong wool types are tracking above 202223 and at the time of writing were trending upwards. The sharply lower NZD is currently providing considerable support for wool prices. Season average Wool Sales – Auction (¢/kg clean) June year

Fine

Medium

strong

Lambs

All wool

2017-18

1,696

624

271

366

369

2018-19

1,859

714

266

408

381

2019-20

1,447

725

221

230

332

2020-21

1,114

421

170

169

254

2021-22

1,225

455

179

178

271

202223

1780

1030

358

2023 % change

+5%

+10%

+3%

PGG Wrightson Wools, Wools of NZ.C P Wool.

Wool Price Trends

+6.7%

Wool Export Data July to July 2023 Year to Date

Exports Wool Exports Wool Exports Price per tonne clean Fine wool (< 24.5 microns (µ)) Medium wool (24.5 to 31.4µ) Fine crossbred wool (> 31.4 to 35.4µ) Strong wool (> 35.4µ) All wool

tonnes clean $000 FOB

$ per tonne FOB $ per tonne FOB $ per tonne FOB $ per tonne FOB $ per tonne FOB

Monthly

7,271 27,514

% Change on last Year +8.7% +3.9%

% Change on last Month +16.8% +3.0%

$11,463

-15.7%

-47.3%

$3,670

-15.1%

-16.4%

$3,740

+0.8%

+6.0%

$3,321

-6.0%

$3,784

-4.5%

+2.7% -11.8%

Trade weighted exchange rate changes for the period compared with the same period for the previous year. % % of Currency* Change Exports GBP -7.2% 7% EUR -9.2% 18% AUD +3.0% 3% USD -2.0% 73% 100% * i.e. for the year to date, wool exported to the UK was at an exchange rate 7.2 per cent weaker than for the same period in the previous year.

Source: Beef + Lamb New Zealand Economic Service, Wools of New Zealand

CATTLE

Beef Production In 2022-23, The number of beef cattle at 30 June 2023, estimated at 3.81 million, is down 2.4 per cent on the previous June. Overall expectations are for an increase in the number of beef calves born this spring by around 1.3 per cent (+11,000 head approximately)

000 head June year

Breeding cows

% change

Total

2017

980

+2.4

3620

2018

1030

+5.4

3720

2019

1100

+7.3

3890

2020

1070

-3.4

3880

2021

1070

+0.0

3960

2022

1070

-0.2

3900

2023 E

1080

+1.1

3810

Note:

Source: Beef + Lamb New Zealand Economic Service, New Zealand Meat Board

Prime Beef Schedule, indicator prices at works season ending September 195-220

220.6-245

245.5-270

270.5-295

295.5-320

Prime P2 Grade (¢/kg)

490

520

Cents/kg Live weight

330

327

340

300

195-220

2020.5-270

270.5-320

320.5-370

370.5-445

Prime M2 Grade (¢/kg)

440

490

495

520

Cents/kg Live weight

3.60

3.20

3.40

Sale yard reports

Bull Beef Schedule

Sale yards

Source: www.interest.co.nz/rural

Store and Breeding Cattle Prices

The following tables are a guide to the average prices paid for store and breeding cattle throughout the country. Average Prices for Store Stock (N.Z. Regions) winter early spring 2022 Store 2.5 Year Steers ($/hd) Northland/ Waikato/BOP

East Coast

Taranaki Manawatu

Marlborough Canterbury

Otago Southland

2010-11

987

824

888

752

1,099

2011-12

1,032

806

1,119

1,300

n.a.

2012-13

1,015

836

1,035

1,001

n.a.

2013-14

1,035

991

1,166

1,024

n.a.

2014-15

1,125

986

1,415

899

1,255

2015-16

1,245

1,155

1,388

945

n.a.

2016-17

1,296

1,149

1,445

1,758

n.a.

2017-18

1,301

1,243

1,449

n.a.

2021-22

1,255

1,600

1,307

1,436

1,384

Northland/ Waikato/BOP

East Coast

Taranaki Manawatu

Marlborough Canterbury

Otago Southland

2010-11

801

756

955

727

562

2011-12

817

840

936

834

699

2012-13

810

765

848

759

630

2013-14

797

725

890

746

761

2014-15

896

1,003

1,036

794

720

2015-16

1,059

939

1,190

1,018

1,115

2016-17

1,075

1,088

1,227

1,527

1,205

2017-18

1,086

1,139

1,219

1,510

1,153

2021-22

1,120

1,253

992

1,140

1,158

Store 1.5 Year Steers ($/hd)

Store Weaner Steers ($/hd)** these values Weaner fairs Autumn Northland/ Waikato/BOP

East Coast

Taranaki Manawatu

Marlborough Canterbury

Otago Southland

2010-11

498

534

569

597

436

2011-12

584

578

623

561

455

2012-13

542

494

525

475

381

2013-14

532

579

570

502

432

2014-15

614

590

673

533

629

2015-16

730

698

760

732

694

2016-17

726

676

929

745

653

2017-18

740

724

942

775

668

2021-22

880

1,086

950

1,045

969

Northland/ Waikato/BOP

East Coast

Taranaki Manawatu

Marlborough Canterbury

Otago Southland

2010-11

479

494

460

558

626

2011-12

525

646

485

596

442

2012-13

425

432

403

432

370

2013-14

478

459

468

446

394

2014-15

518

556

514

452

481

2015-16

596

636

626

615

657

2016-17

596

764

742

763

643

2017-18

607

777

805

781

628

2021-22

700

821

763

870

696

Store Weaner Heifers ($/hd)

Store 1.5 year Heifers ($/hd) Northland/ Waikato/BOP

East Coast

Taranaki Manawatu

Marlborough Canterbury

Otago Southland

2010-11

625

695

721

724

2011-12

702

728

724

699

2012-13

717

683

674

686

2013-14

667

593

736

880

2014-15

793

764

703

771

2015-16

892

770

930

1,015

2016-17

923

837

1,541

1,234

2017-18

941

860

1,520

1,183

2021-22

869

950

920

988

1,000

Northland/ Waikato/BOP

East Coast

Taranaki Manawatu

Marlborough Canterbury

Otago Southland

2010-11

888

676

781

711

935

2011-12

845

888

934

729

n.a.

2012-13

655

878

898

782

441

2013-14

762

896

957

651

1,000

2014-15

966

1,155

886

964

971

2015-16

895

1,165

1,325

704

1,202

2016-17

982

1,125

1,361

942

1,203

2017-18

1,018

1,240

1,536

1,200

n.a.

2021-22

1,147

1,270

1,260

1,445

1,060

Store Cows ($/hd)

Source: Beef + Lamb New Zealand Economic Service, PGW sale data.

TB Compensation Subject to certain criteria, compensation is payable to the owners of cattle classified as TB reactors. TBfree New Zealand updates its maximum values for the purposes of compensation through PGG Wrightson on a monthly basis. The following are based on current market values (average price per kg live weight) as of 1st Aug 2022. Valuers should estimate the weight within the given guidelines in consultation with the owner or use scales if they are available. Where there is a disagreement on the value the tester is to contact the national Compliance manager on 0800 482 4636.

NB HERD OWNERS RECEIVE 65% OF THE AGREED VALUE North Island Beef Weaner Steers to 1year

Beef Weaner Hfrs to 1year

Beef Hfrs to 2 Years

Beef Steers to 2yr

Beef Breeding 2yr plus (Cows)

Small - Av Wgt to 160 kg

Medium - Av Wgt 161 to 230 kg

Heavy - Av Wgt 230 kg+

$3.70

$3.60

Small - Av Wgt to 160 kg

Medium - Av Wgt 161 to 220 kg

Heavy - Av Wgt 220 kg+

$3.20

Small - Av Wgt to 250 kg

Medium - Av Wgt 300-380 kg

Heavy - Av Wgt 381 kg+

$2.90

$3.00

$3.20

Light - Av Wgt 300 – 350 kg

Small - Av Wgt 351-420 kg

Medium - Av Wgt 421-480 kg

481 kg+

$3.20

$3.30

$3.40

Small - Av Wgt 350-400 kg

Medium - Av Wgt 401-470 kg

Heavy - Av Wgt 470 kg+

$1.50

$2.30

$2.40

NB: In calf cows depending on stage of pregnancy add $50-$70 per head Beef Breeding Bulls - est avg live wgt

Ylg Bulls - Av Wgt 380 kg max value $1,200

2 Yr Old Bulls - Av Wgt 700 kg $2,000

NB: For young bulls check if insured

Aged Bulls 3yrs Av Wgt 800 kg max value $2,200

Heavy

Dairy Beef Weaner Friesian Bulls to 1yr

Non Breeding Bulls (Friesian etc) 1 to 2yr

Friesian Steers to 1 yr

R2 Friesian Steers

Dairy Cross to 1yr

Dairy Cross to 2yr

Small - Av Wgt to 120 kg

Medium - Av Wgt 121 to 180 kg

Heavy - Av Wgt 180 kg+

$3.10

$3.40

Small - Av Wgt 250-300 kg

Medium - Av Wgt 301 to 360 kg

Heavy - Av Wgt 360 kg+

$3.00

$3.10

Small - Av Wgt to 120 kg

Medium - Av Wgt 121 to 180 kg

Heavy - Av Wgt 181 kg+

$3.10

$3.40

Small - Av Wgt 200-300 kg

Medium - Av Wgt 301 to 360 kg

Heavy - Av Wgt 360 kg+

$2.20

$2.75

Small - Av Wgt to 120 kg

Medium - Av Wgt 121 to 180 kg

Heavy - Av Wgt 181 kg+

$3.00

$3.20

Small - Av Wgt 200-300 kg

Medium - Av Wgt 301 to 360 kg

Heavy - Av Wgt 360 kg+

$2.90

$3.00

NB HERD OWNERS RECEIVE 65% OF THE AGREED VALUE – South Island Small - Av Wgt Beef Weaner Steers to 1year

Beef Weaner Hfrs to 1year

Beef Hfrs to 2 Years

Beef Steers to 2yr

Beef Breeding 2yr plus (Cows)

to 160 kg

Medium - Av Wgt 161 to 230 kg

Heavy - Av Wgt 230 kg+

$3.50

Small - Av Wgt to 160 kg

Medium - Av Wgt 161 to 220 kg

Heavy - Av Wgt 220 kg+

$3.20

Small - Av Wgt to 250 kg

Medium - Av Wgt 300-380 kg

Heavy - Av Wgt 381 kg+

$3.10

Light - Av Wgt 300 – 350 kg

Small - Av Wgt 351-420 kg

Medium - Av Wgt 421-480 kg

Heavy 481 kg+

$3.20

Small - Av Wgt 350-400 kg

Medium - Av Wgt 401-470 kg

Heavy - Av Wgt 470 kg+

$2.50

NB: In calf cows depending on stage of pregnancy add $50-$70 per head Beef Breeding Bulls - estimated av live wgt

Aged Bulls 3yrs 2 Yr Old Bulls - Av Av Wgt 800 kg Wgt 700 kg max value max value $1,200 $1,800 $1,900 Ylg Bulls - Av Wgt 380 kg

NB: For young bulls check if insured

Dairy Beef Small - Av Wgt Weaner Friesian Bulls to 1yr

Non Breeding Bulls (Friesian etc) 1 to 2yr

Friesian Steers to 1 yr

R2 Friesian Steers

Dairy Cross to 1yr steers

Dairy Cross to 2yr steers

to 120 kg

Medium - Av Wgt 121 to 180 kg

$3.00

Small - Av Wgt 250-300 kg

Medium - Av Wgt 301 to 360 kg

Heavy - Av Wgt 360 kg+

$2.70

Small - Av Wgt

Heavy - Av Wgt

to 120 kg

Medium - Av Wgt 121 to 180 kg

$2.30

$2.40

$2.50

Small - Av Wgt 200-300 kg

Medium - Av Wgt 301 to 360 kg

Heavy - Av Wgt 360 kg+

$2.30

$2.50

Small - Av Wgt

Heavy - Av Wgt

to 120 kg

Medium - Av Wgt 121 to 180 kg

$2.50

$2.70

Small - Av Wgt 200-300 kg

Medium - Av Wgt 301 to 360 kg

Heavy - Av Wgt 360 kg+

$2.70

$2.80

$2.90

Heavy - Av Wgt 180 kg+ $3.20

181 kg+

Maximum Valuation Limits for Dairy TB Reactors Approved and recommended by PGG Wrightsons Ltd. The values are based on current market values and are to be based on age condition and where available BWs. When valuing males that are for fattening only, use the dairy beef valuations on the beef schedule. Where there is a disagreement over values the tester is to contact the National Compliance Manager on 0800 4 824636.

Friesian

Jersey and Other Breeds

Friesian Cross

R1 Heifer calves Spring born 17

$1,350

$700

$1,200

R1 Heifer calves Autumn born 17

$1,450

$800

$1,300

R2 Heifers 16 born unmated / PTIC

$950 / $1,800

$675 / $1,450

$950 / $1,600

R3 Heifers 15 born PTIC (1st calving)

$1,800

$1,450

$1,600

MA Cows 2>8 in milk

$2,000

$1,600

$2,000

MA Cows 9+yrs in milk

$1,300

$1,050

$1,200

Forward Contract Cows

$2,150

$1,600

$2,000

R1 Breeding Bulls

$700

$600

$500

R2 Breeding Bulls

$1,350

$1,000

$1100

Breeding Bulls R3+

$1,800

$1,400

Carry-over cows PTIC

$1,650

$1,350

$1,600

Empty carry-over cows

$1,250

$800

$1,100

Deer Values Source: OSPRI New Zealand. Dollars per kilogram of Live Weight.

Red

Waipiti X

Waipiti

$/kg LW

Weaner Hind

$3.80

$4.10

$4.20

$4.10

Weaner Stag

$4.00

$4.30

$4.40

$4.30

Yearling Hind

$3.85

$4.00

Yearling Stag

$4.00

$4.10

RSG 2yr Maiden Hind

$3.90

$4.00

RSG 2yr 1st Calving Hind

$4.10

$4.50

RSG 2yr Stag

$4.00

$4.10

Breeding Hind Empty under 4yrs

$4.00

Under 4 yrs/ over 4 yrs

$4.50/ $4.30

$4.50/$4.30

RSG 1yr Spiker Stag

$4.10

Velvet Stag 1-2yr

$900/Hd

$1,000/Hd

MA Velvet Stag

$1,100/Hd

$1,150/Hd

PTIC

Breeding Hind PTIC

Venison Red

DAIRY PRODUCE Background.

The introduction of the Dairy Industry Restructuring Act 2001 opened the way for New Zealand’s largest dairy companies, Kiwi Co-operative Dairies Ltd (Kiwi) and The New Zealand Co-operative Dairy Company Ltd (NZDG) to merge to form Fonterra Co-operative Group Ltd, and for the Dairy Board to become a company and a wholly-owned subsidiary of Fonterra. Further, the Act provided for the buyout of shares in the Dairy Board held by three smaller dairy companies, The Tatua Co-operative Dairy Company Ltd, Westland Co-operative Dairy Co Limited and New Zealand’s Premier Dairy Cooperative Limited. The Act regulated the activities of Fonterra which has facilitated the emergence of other companies such as Open Country Dairy, Synlait, Miraka, and Oceania Dairy.

Fonterra remains a co-operative, where farmer shareholders have voting rights. From 1 June 2021, Fonterra changed the way farmers are paid for their milk through the introduction of a new milk payment parameter. Farms that sustainably produce higher quality milk help to increase the value of all the milk. That is why The Co-operative Difference Payment has been introduced. Milk payment parameters are used to determine the value of a farm’s milk to the Co-operative and can result in each farm being paid slightly differently per milk solid, relative to the Co-operative average. These parameters currently include the fat and protein composition of the milk, the volume, and now achievement of Te Pūtake and Te Puku under The Co-operative Difference. The Co-operative Difference Payment is made at the end of the year in the final retro payment. Because Fonterra purchases such a large proportion of New Zealand’s total milk, there is no market price for milk that is independent of the price paid by Fonterra. As a result, since its formation in 2001, Fonterra has calculated a Farmgate Milk Price that enables total returns to be allocated between payments for milk and returns on the capital invested by Fonterra farmer shareholders and by unit holders in the Fonterra Shareholders’ Fund •

2023/24 forecast Farmgate Milk Price range reduced to NZ$6.25 - $7.75 per kgMS

• FY23 earnings guidance range of 30-45 cents per share announced

 

Final cash payout $9.22 per share backed kgMSFull year reported earnings of 95 cents per share, up from 36 cents per share . Reported profit after tax of $1.6 billion, up 170%

Fonterra currently collects around 80% of New Zealand’s milk production. Because Fonterra purchases such a large proportion of New Zealand’s total milk, there is no market price for milk that is independent of the price paid by Fonterra. As a result, since its formation in 2001, Fonterra has calculated a Farmgate Milk Price that enables total returns to be allocated between payments for milk and returns on the capital invested by Fonterra farmer shareholders and by unitholders in the Fonterra Shareholders’ Fund. Farmgate Milk Price Governance

The Fonterra Board sets the total amount to be paid by Fonterra for all milk supplied to it in New Zealand in each season. Both Fonterra’s Constitution and DIRA require Fonterra to maintain a Milk Price Manual, which sets out Fonterra’s policies and methodology for determining the Farmgate Milk Price. The Manual must reflect the Milk Price Principles set out in Fonterra’s Constitution. The Farmgate Milk Price has been calculated in accordance with the Manual since the start of the 2009 season. The Fonterra Board has established a robust governance structure to oversee the setting of the Farmgate Milk Price. A detailed description of the Farmgate Milk Price governance structure can be found in. https://www.fonterra.com/nz/en.html

2023/24 Forecast Payments. As at June 2023, the Fonterra advance rates for the 2023/24 season, corresponding to an opening Forecast Farmgate Milk Price of $6.50 per kg MS and forecast earning per share of 45-60 cents , are as follows: Payment Month June July August September October November December January February March April May

Base Advance Rate $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.10 $6.25 $6.40 $6.50 $6.65

July retro August retro Sept retro Final retro +Co-Operative Difference Payment

$6.80 $7.60 $7.60 $7.90 Add farms Payment

Forecast Farm gate

These monthly payments are paid the month following. The final retro payment is expressed as a range as it will include the total of all amounts provisioned for The Co-operative difference payments but not earned through on farm achievements. This washup contributes to the final base price. This Advance Rate Schedule is intended to be used as a guide only. The actual rates payable to individual suppliers will be based on a number of different parameters, including the fat and protein composition of the milk, volume adjustment, any deductions applied, and the farmer’s achievement of Te Pūtake and Te Puku under The Co-operative Difference. The final payout rates are subject to change at the discretion of the Fonterra Board of Directors.

Dividend In addition to the Milk Price, shareholders are eligible for any dividend payment authorised by the Fonterra Board each season. The dividend reflects the profits from the ingredients, consumer and foodservice businesses. The Dividend is paid on the basis of shares held in the Co-operative. Fonterra’s current policy is that any dividend will be paid in two instalments, the first of which (the interim dividend) is paid on shares held on the record date in early April and paid shortly after. The second instalment (the final dividend) is paid on shares held on the record date in early October and paid shortly after. The company reported September 2023:

• Full year reported earnings of 95 cents per share, up from 36 cents per share • Reported profit after tax of $1.6 billion, up 170%

• Return on Capital of 12.4%, up from 6.8%

• Final 2022/23 season Farmgate Milk Price of $8.22 per kgMS

• Full year dividend of 50 cents per share, including interim dividend of 10 cents per share

• Additional tax free 50 cents per share capital return following divestment of Soprole • Full year milk collections of 1,480 million kgMS

• Forecast 2023/34 season Farmgate Milk Price range of $6.00 - $7.50 per kgMS, with a

midpoint of$6.75

• Forecast 2023/24 earnings guidance range of 45-60 cents per share

Fonterra Payout History

Interest.co.nz, Fonterra.com

Deductions for Poor Quality Milk

Fonterra (and many other Dairy Companies) operate a demerit points scheme under which demerit points are incurred by a supplying shareholder for milk quality defects detected daily . The aim of the scheme is to ensure that supplying shareholders are held responsible for milk quality and incur milk payment deductions for poor quality milk supplied. The company can reject milk that does not meet certain standards, which are outlined in the Farmer Handbook (or terms of conditions of supply). Fonterra carries out several Raw Milk Quality Tests. For details of the testing regime, the demerit points scheme please refer to the Fonterra Farmers’ Handbook, or other dairy Companies Terms of Conditions of supply. How The Co-operative Difference Payment works Farms that sustainably produce higher quality milk help to increase the value of all our milk. That’s why The Co-operative Difference Payment has been introduced. This meant a new milk payment parameter was introduced to implement the payment. Milk payment parameters are used to determine the value of a farm’s milk to the Co-operative and can result in each farm being paid slightly differently per milk solid, relative to the Co-operative average. These parameters currently include the fat and protein composition of the milk, the volume, and now achievement of Te Pūtake ( +7c/ kg MS) and Te Puku ( +3c/kg MS) standards under The Cooperative Difference.

FONTERRA’S FORECASTS FOR SEASON ENDING 31 May 2023 The milksolids supplied by shareholding farmers in the 2022/23 season are forecast to be 1,418 million kgMS. The additional cost of winter milk (being raw milk supplied in June and July ) is forecast to be: North Island $1.71/kgMS South Island $1.85/kgMS The additional cost of organic milk for the 2022/23 season is forecast + $1.53/kgMS.

Dairy Cattle Values

Indicator prices for Winter / Spring Class

Winter/Spring

MA Cows High BW

MA Cows Ave BW

Rsg 2yr heifers

Rsg 1yr heifers

Note:

Friesian

$2,000 -$2,150

Cross Bred

$2,000 – $2,150

Jersey

$1,800 – $2,000

Friesian

$1,700 – $1,850

Cross Bred

$1,700 – $1,850

Jersey

$1,600 – $1,700

Friesian

$1,750 – $1,850

Cross Bred

$1,750 – $1,850

Jersey

$1,600 - $1700

Friesian

$700 – $950

Cross Bred

$700 – $950

Jersey

$600 – $850

Prices include a sales commission of approximately 7%. BW breeding worth) Average mixed age/breed BW = 72

Dairy and Dairy-Cross Calves Calves sold for rearing Spring 2023 Friesian bull calves sold for rearing 2012

$75.00 - $90.00

2013

$80.00 - $110.00

2014

$50.00 - $60.00

2015

$50.00 - $75.00

2016

$40.00 - $65.00

2017

$45.00 - $85.00

2018

$65.00 - $110.00

2019

$115

2020

$110

2021

$90

2022

$75

2023

$86

Bobby Calf Price at Farmgate: Indicator Schedule Weight (kg)

Price (cents per kg)

0.0 - 8.9

0.00

9.0 - 13.4

$1.30

13.5 - 18.4

$2.00

18.5 - 32.0

$2.10

If supplying cull Dairy cows, a cow calf bonus 25 – 40 c/kg is paid.

Breeding Heifers for Live Export As the Editor complies this version of the Manual, the new Government has announced the re-instatement of the livestock export by sea. .Dairy Beef Weaners indicator values

100kg Friesian bull calves 2012

$280.00 to $320.00

2013

$240.00 to $290.00

2014

$230.00 to $260.00

2015

$340.00 to $365.00

2016

$360.00 to $385.00

2017

$370.00 to $425.00

2018

$390.00 to $480.00

2019

$420 - $465

2020

$410 - $420

2021

$400 - $460

2022

$500 - $540

DEER PRODUCTION Venison Price Trends

Average Schedule Price 60 kg AP Stag. Venison Schedule prices Indicator Schedule Price for AP Grade (60 kg stag) 2013 to 2023 Prices $ per kg 2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

$6.50

$6.10

$6.25

$7.60

$9.30

$10.40

$9.20

$6.80

$7.20

$8.55

$8.95

2018

2019

2020

2021

Note: The figures are based on average weekly schedule for the year.

Deer livestock in New Zealand, llatest statistics 2021.

2015

2016

2017

Deer Live Stock Values Livestock prices vary markedly throughout the year and between districts. Apart from breeding stags, prices will be very dependent on feed availability, freezing works capacity and schedules. Adult hinds 2 year upwards are quoted as being pregnancy tested – in fawn. Livestock prices are indicative averages, which are shown below.

Red Deer

$/head 2023 Weaner hinds

154

Rising 2yr hinds

523

Mixed age hinds

546

CFA hinds*

425

Weaner stags

220

Rising 2yr stags (velvet potential)

430

MA velveting stags

850+

Breeding stags

1800+

*cast for age Weaner red deer can also be purchased on a per kilogram live weight basis. $/kg live weight 2023 Weaner hinds

3.00 to 3.75

Weaner stags

4.00 to 4.75

Wapiti and Wapiti cross $/head 2023

Weaner hinds

260

Rsg 2yr hinds

585

MA hinds

646

Weaner stags

260

Rsg 2yr stags (velvet)

754

MA velveting stags

850+

Breeding stags

4,500+

Source: PGG Wrightson.

Velvet

Due to market sensitivity about pricing schedules these are total weighted averages.

Weighted Average Farmgate Price of New Zealand Deer Velvet $/kg 2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

$95

$103

$117

$120

$100

$98

$128

$120

$128

$135

$120

Source: Net $/kg before DINZ levy, Deer Industry New Zealand

GOAT PRODUCTION Introduction

Production from goats is divided into three categories: Meat (chevon), milk and fibre. In conjunction with these, goats can be employed for weed control.

Goat Meat Prices (Chevon) The goat schedule has been remarkably stable over the years, despite exchange rate shifts, shipping cost increases and various market changes. In 2000, it was $3.30-3.80 per kg. In 2012-13, it was $3.50 for 8.1kg+ and $3.65 for 12.1 kg +. By 2016, it was still at that level – creeping to over $4 to $4.50 during 2018. During the latter part of 2019 into 2020, it increased by another $1. The industry average 11-12kg goat carcass. Schedule Price -NZD 8.83/kg for most weight ranges, which represents a guide only and is subject to change, depends on processor.

Goat Milk

Kg of Milk Solids 2013

$19.00

2014

$18.50

2015

$18 .00

2016

$18 .00

2017

$18.50

2018

$22 .00

2019

$20.20

2021

$14.14

2022

$12.90

2023

Estimate due to lack of reliable data

$6.80

Payment for milk for processing has ranged from $12.90 - $22.00 per kg (milksolids basis). Most milk is supplied to the Dairy Goat Co-operative (N.Z.) Ltd in Hamilton where it is converted to milk powder (mainly for export), UHT milk and specialized goat milk infant formula (powder). The industry is mainly concentrated in the Waikato and Taranaki. In other regions, production is limited and returns to individual producers vary widely, depending on local supply and demand. As the editor updates this section, the fledging Dairy Goat industry milk price , is in turmoil Milk payout has slumped 30% over the past three years, forcing some dairy goat farmers to sell up.

Goat Fibre Mohair Sales

The following are auction prices ($NZ per kg fleece) for mohair at September 2023,

Current

Last year

Kid

$52

$51

$55

Young Goat

$29

$30

Adult Fine

$26

$27

$29

Adult strong

$24

$25

$29

Description

Market

Source: Mohair Producers South Africa Market Report, converted to NZD

Goat Livestock Sales Typical prices are in the tables below. Most sales now are direct between buyers and sellers and negotiated directly.there is no significant data for the current season 2023 Angora $/head

2014

2016

2018

80 to 200

50 to 100

80 to 120

Kids

60-80

60 to 100

NZ Angora two-tooth

Adults

200 to 1000

200 to 1,000

Wethers

Adults

40 to 60

40 to 80

Does NZ Angora two-tooth

Adults

NZ Angora mixed age

Bucks

Angora live sales depend on fleece length, which is harvested twice a year. The fleece can be worth up to $50 each time so a sale could be $20 - $30 more if full fleeced.

Boer

2015/2016

2017/2018

$/head

Adults

200 to 750

200 to 800

Hoggets

200 to 400

Bucks 2 tooth

300 to 800

400 to 1,500

Adults

200 to 300

Hoggets

150 to 200

150 to 300

Purebred Bucks

2 tooth

200 to 300

200 to 400

Crossbred Does

Adults

100 to 150

100 to 200

Hoggets

80 to 100

80 to 150

Adults

50 to 80

50 to 100

Hoggets

40 to 60

40 to 80

Adults

40 to 60

Full Blood Does

Purebred Does

Crossbred Wethers

Feral Does

PIG PRODUCTION Pig Meat Prices

Schedule prices vary markedly during the year. Weight ranges and payments are based on "on hooks", "hot" carcass weight, cents per kg. Section 3 in this manual provides further information on pig production. Regional Schedule Prices July 2023 Auckland/Waikato

Manawatu

Canterbury

$/kg

Pork

$5.45

$5.10 - $5.35

$5.05 $5.15

Bacon

$5.15

$5.00 - $5.05

$4.85 - $4.95

Choppers

$1.60

$1.55 to 2.00

$1.60 -$2.00

Note:

Prices are quoted for the D1 schedule (45.0 to 50.0 kg weight range, up to 10 mm back fat) and the H2 schedule (65.0 to 70.0 kg carcass weight range, up to 12 mm back fat). Prices do not account for the volume or quality premiums, available from many buyers.

Source: Pork Outlook, July 2023

CAMELIDS

Section provided by Alpaca and Llama Association of New Zealand. No further information since 2014. Prices have been falling throughout the last year due to over-production of animals, changing interests of lifestylers away from cottage-spinning of the elite alpaca fibre, and the reality of the global economic crisis. The only animals that have resisted this trend have been those from longterm select breeding regimens where fine fleece (below 18 micron in diameter) has been a goal. Otherwise, nondescript alpacas can now be purchased at about $50 a wether, or $300 a fertile female for livestock pet markets. Good breeding males can still attract higher prices if associated with the aforementioned strong breeding goals. Older alpacas are now often gifted away to lifestylers with the understanding that their welfare needs will be met. The situation with llamas is similar to that of alpacas. They are regarded as valuable by only those people wanting a pleasing companion animal, as for example, those touring/trekking companies which use llamas as pack animals off the beaten track. The situation for alpacas and llamas is not likely to change in the foreseeable future.

There has been a growth in the marketing of alpacas for meat for both human and pet consumption, sometimes for figures of $25 each. The fleece market is depressed. Good clean fleece still sells at $25 per kilo weight but much fleece is essentially destroyed or sold for less if care has not been taken to keep it clean and if the fibre diameter is greater than 30 microns. Shearing costs by contractors are about $25 per animal. Fleece production and utilization is still very much a cottage industry. Notwithstanding the above, there are several elite breeders who export their female animals for figures in excess of $10,000 per animal, sums that would never be realized in the New Zealand market, which is essentially over-supplied. Surprisingly, one breeder has managed to establish a guanaco breeding herd in New Zealand (guanacos being the wild version of llamas in South America), resurrecting it from released zoo breeding stock. These exquisite animals are very rare and could command prices in the thousands of dollars.

CROPS Wheat Contract prices Milling Wheat - South Island Contracts 2022/23

Contracts delivered to Champion Flour Mills. Protein %

$ per tonne

Premium:

Milling:

Gristing:

Duchess, Conquest, Reliance, Viceroy, Crwt218

Discover, Saracen, Sensas, Crwt235

Raffles, Hanson, Sage

12.8 +

449

434

410

12.6 – 12.7

448

433

410

12.4 – 12.5

447

432

410

12.2 – 12.3

446

431

410

12.0 – 12.1

445

430

410

11.8 – 11.9

444

429

410

11.6 – 11.7

443

428

410

11.4 – 11.5

442

427

410

11.2 – 11.3

441

426

410

11.0 – 11.1

440

425

410

10.9 – 10.0%

Option to purchase at contract price

410

A storage increment of 8 cents per tonne per day is paid from 1st May in year of harvest. At the request of the Breeders of milling wheat, a royalty charge on payment weight between $3.00 and $5.50 plus GST per tonne (depending on cultivar) will be deducted by the mill and paid to the Breeder.

PGG Wrightson: Delivered to Chch Champion

Protein %

Price / tonne

Premium

12.8% +

$449

Milling

12.8% +

$434

Gristing

11% +

$410

Soft (Biscuit)

$410

Mauri anz Premium

12.5% +

$430

Milling

$420

Gristing

$410

Soft (Biscuit)

Purple Wheat - South Island Contracts The contract price for Amethyst wheat delivered to Champion Flour Mills will be $445 per tonne for the 2019 harvest. A storage increment of 8 cents per tonne per day usually offered from 1st May Soft Wheat - South Island Contracts Contract price for wheat delivered to Champion Flour Mills i $410 per tonne. A storage increment of 8 cents per tonne per day usually offered from 1st May

Feed Wheat

PGG Wrightson: Delivered

Per tonne 2005 / 2006

$240.00

2007 / 2008

$300.00

2008 /2009

$450.00

2009 / 2010

$340.00

2010 / 2011

$400.00

2011 / 2012

$400.00

2014 / 2015

$410.00

2015 / 2016

$350 - $275

2016 / 2017

$300

2017 / 2018

$300 - $400

2018 / 2019

$370

2022

$655 - $640

2023

$535 ( forward contracts)

Prices fell from $350 to $275

Seed Wheat Seed crops will usually be based on milling or biscuit wheat/barley/oats contract prices with a premium of $50 per tonne (MD) over the milling wheat/barley/oats price for 1st generation and for basic seed, if it meets specification. Royalties may be payable on grain for seed.

Milling Wheat Trends

Source: AIMI survey July 2022 NZ harvest tonnage and sales channels for milling wheat (tonnes) as estimated on July 1 each year. (Note: All categories relate to that season’s harvest, excluding carryover stock. “Sold at spot/free price and delivered” includes grain sold for feed. Historical data are from July AIMI Reports for 2012 to 2020, while 2021 and 2022 data are matched data from the current report. In 2012 “Sold at spot/free price and delivered” was zero since the question was simply “sold and delivered”, with responses reported as “Sold on pre-harvest contract and delivered”; also, there was no question on “grain sold for feed”.)

Barley Contract Prices: Malting

Malteurop New Zealand Ltd: NI = Delivered to Marton

SI = Delivered to Ashburton

N Is

Year Price / tonne at 0% moisture Price / tonne at 14% 2010/2011 $441.00 $380.00 2011/2012 $558.14 $480.00 2014/2015 n/a Aug $470 2015/2016 n/a $435 2016/2017 n/a $395 2017/2018 n/a $450 S Is Year Price / tonne at 0% moisture Price / tonne at 13% 2010/2011 $385.06 $335.00 2011/2012 $482.76 $420.00 2012/2013 n/a $420.00 2013/2014 n/a $400 -$425 2014/2015 $500 $440 - $425 2015/2016 n/a $385 2016/2017 n/a $310 2017/2018 n/a $370 2022/23 season Malteurop have changed their pricing structure depending on when contracts are signed. In the event of the company requiring the grower to store the barley, the company offers to pay to the grower an increment of 5c per tonne per day from and including 1st April through to and including 31st December. For barley with a screening percentage greater than 5% a deduction of $1 per tonne per percentage over and above 5% shall apply up to a maximum of 10% screenings. Barley delivered must conform to a varietal purity specification of 99% and a minimum germination of 95%. Maximum allowances permitted: Screenings (2.37mm 6A screen)

Skinned and broken

Growth splits

Foreign matter (chaff, straw etc)

0.5%

Foreign seeds (wild oats, wheat etc)

10 seeds per 500g of barley

Protein (Nitrogen 2.00%)

12.5%

Moisture

14.0%

Malting barley prices as a guideline only, are around $40 to $60 per tonne above feed barley prices.

Seed

Malteurop New Zealand Ltd South Island seed contract price is the same as the malting contract, plus a premium paid on the machine dressed (MD) weight as follows: Breeders to basic

$60 per tonne premium (MD)

Basic to first generation

$55 per tonne premium (MD)

1st to 2nd generation

$45 per tonne premium (MD)

Barley Price Trends 2003 to 2023 In the following reference’s the "Nominal" prices are the contract prices paid to South Growers, and Tonnages supplied.

Feed Barley

PGG Wrightson & Rural Co : Delivered 2003 2004 2005 2007 / 2008 2008 / 2009 2009 / 2010 2010 / 2011 2011 / 2012 2014 / 2015 2015 / 2016 2016 / 2017 2017 / 2018 2018 / 2019 2022 2023

Contract price per tonne $260.00 $230.00 $235.00 $300.00 $400.00 $260.00 $380.00 $380.00 $390 - $400 $320 - $250 $250 - $280 $300 - $400 $360 $620 - $640 $535 (forward contract)

Prices fell from $320 to $250

Feed Barley Sales Channels & Tonnage.

Source: AIMI NZ Survey

Oats

A South Island contract price delivered to Dunedin: Contract price per tonne 2008

$340.00

2009

$500.00

2010

$410.00

2011

$380.00

2012

$460.00

2013

$450.00

2014

$445.00

2015

$455.00

2016

$395.00

2017

$415.00

2018

$415.00

The actual price payable is determined by reference to the Quality Index, deductions being made for high screening and low kernel weight. 41

Mid Canterbury Contracts.

Cates Grain and Seed: Contract price per tonne field dressed 2010 / 2011

$430.00

2011 / 2012

$360.00

2012 / 2013

$425.00

2013 / 2014

$430.00

2014 / 2015

$460.00

2015 / 2016

$430.00

2016/2017

$380.00

2017/2018

$380.00

Feed Oats

Contract price per tonne 2007 / 2008

$330.00

2008 / 2009

$500.00

2009 / 2010

$425.00

2010 / 2011

$420.00

2011 / 2012

$420.00

2015 (White)

$435.00

2015 / 2016 (White)

$400.00

2015 (Black)

$450.00

2015 / 2016 (Black)

$400.00

2017 / 2018

$310 - $350

2018 / 2019

$330

Delivered to the buyer’s contract.

Peas

Field Peas Peas enhance soil fertility. This is the case with both peas harvested as dry seed (field peas) and those harvested as vining peas (when the seed is ready for human consumption as a freezer or vining pea). However when pea seeds are dry about 85% of the nitrogen held in the crop is removed as seed, whereas only 50% is harvested and removed from a vining pea crop. This means there are substantial, unquantified gains in soil fertility to be had when harvesting peas as vining crops. Prices offered for peas in bulk, grown under contract, delivered:

Maple Peas 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018

$850/t $700/t $700/t $600/t $650/t $650/t $650/t $650/t $600/t $650/t

Prussian / Blue Peas

White Peas

Marrowfat Peas (depending on colour)

$700/t $500/t $400/t $480/t $500/t $525/t $550/t $500/t $400/t $400/t

$600/t $600/t $550/t $600/t $650/t $650/t $650/t $525/t $525/t

Avg $1,000/t $800-$1,000/t $500-$800/t $600-850/t $600-$1,000/t $600 - $1,000/t $600 - $1,000/t $600 - $800/t $550 - $750/t

Source: Cates Grain and Seed. PGG Wrightson: Delivered Contract $/tonne 2015 / 2016 2015 Marrowfats 2017 / 2018 2018 / 2019

$1,360.00 $1,000.00 N/A $700

Field Pea Price Trends in year of Harvest

Prussian Peas Maple White Marrowfat Feed

2013 $600 $650 $500

2014 $650 $650 $525

2015 $650 $650 $550

2016 $650 $650 $500

2017 $525 $600 $400

2018 $525 $650 $400

$850

$1,000 $500

$1,000

$1,000 $500

$800

$750 $400

Garden Peas – Canterbury

$/tonne machine dressed Year of harvest

2014

2015

2016

2017

2018

Freezer varieties

$935

$960

$950

$935

Onwards

$935

$960

$950

$935

Masseys

$935

$960

$950

$935

$1,200

Alderman

Green / Blue / White Peas

PGG Wrightson: Delivered Ashburton Contract $/tonne 2005 / 2006

$250.00

2007 / 2008

$320.00

2008 / 2009

$500.00

2009 / 2010

$400.00

2010 / 2011

$400.00

2011 / 2012

$400.00

2015/2016 White / Maples / Blue

$500.00 / $600.00 / $625.00

2017 / 2018 White / Maple / Blue

$600/ $550 / $575.00

Maize/Maize Silage Maize

Grower Price per tonne at 14% moisture (net of FAR levy) $/tonne

Waikato/

Bay of Plenty

King Country

East Coast/ Gisborne

2018 harvest

$350 to $420 across North Island

2017 harvest

$320 to $380 across North Island

MANAWATU/ Wairarapa

2015/16

$370 across North Island

2014/15

$430 across North Island

2013/14

$430 across North Island

2012/13

$400 across North Island

2011/12

$410 across North Island

2010/11

$406across North Island

2009/10

$325 across North Island

2008/09

From over $400/t to no market - unsaleable

2007/08 contract

$325

2006/07 actual

$245 TO $270 ACROSS ALL REGIONS (CONTRACT PRICE)

2005/06 actual in paddock price Dryer price

$210 to $230

$275 to $280

$235 to $275

$275

$275 to $280

$275

2004/05 actual in paddock price Dryer price

Maize Silage Sale price ranges (per kg DM) in paddock

2022/23

26 c – 35c

2017/18

25c / kg DM

2016/17

20c / kg DM

2015/16

19.5c / kg DM

2014/15

25 - 26 cents / kg DM

2013/14

25 - 26 cents / kg DM

2012/13

23 CENTS / KG DM

2011/12

24 CENTS / KG DM

2010/11

21 CENTS / KG DM

2009/10

20 CENTS / KG DM

2009/10

16 - 22 CENTS / KG DM

2008/09

10 - 30 CENTS / KG DM

2007/08

20 - 40 CENTS / KG DM

2006/07

14 - 15 CENTS / KG DM

2005/06

14 - 16 cents / kg DM

2004/05

16 - 19 cents / kg DM

Note: These prices are indicators only. Prices vary between regions.

Ryecorn $/tonne delivered 2009 / 2010

$510.00

2010 / 2011

$435.00

2011 / 2012

$480.00

2012 / 2013

$460.00

2013 / 2014

$475.00

2014 / 2015

$650.00

2015 / 2016

$600.00

2016 / 2017

$520.00

2017 / 2018

$450.00

Cates Grain and Seed: Champion Flour Mills is offering $475 per tonne for ryecorn in 2019. Very few growers are signed up this year, no actual contracts on offer. A storage increment of 8 cents per tonne per day is paid from 1 May 2019.

Lentils (red) $/tonne delivered 2008 / 2009

$1,300.00

2009 / 2010

$1,300.00

2010 / 2011

$1,300.00

2011 / 2012

$1,500.00

2012 / 2013

$1,500.00

2013 / 2014

$1,400.00

2014 / 2015

$1,200.00

2015 / 2016

$1,200.00

2016 / 2017

$1,200.00

2017 / 2018

$1,200.00

Cates Grain and Seed:

Triticale $/tonne delivered 2009 / 2010

$330.00

2010 / 2011

$380.00

2011 / 2012

$390.00

2012 / 2013

$400.00

2013 / 2014

$410.00

2014 / 2015

$420.00

2015 / 2016

$410.00

2016 / 2017

$350.00

2017 / 2018

$340.00

Cates Grain and Seed:

Lupins $/tonne 2007 / 2008

$800.00 to $850.00 (field dressed)

2008 / 2009

$850.00 to $900.00 (field dressed)

2009 / 2010

$850.00 to $900.00 (field dressed)

2010 / 2011

$850.00 to $900.00 (field dressed)

2011 / 2012

$850.00 to $900.00 (field dressed)

2012 / 2013

$850.00 to $900.00 (field dressed)

2013 / 2014

None grown but price would be same

2014 / 2015

$850.00 to $900.00 (field dressed)

2015 / 2016

$850.00 to $900.00 (field dressed)

2016 / 2017

N/A

2017 / 2018

N/A

Linseed $/tonne delivered 2009 / 2010

$800.00

2010 / 2011

$800.00

2011 / 2012

$730.00

2012 / 2013

$900.00

2013 / 2014

$940.00

2014 / 2015

$1,000.00

2015 / 2016

$925.00

2016 / 2017

$850.00

2017 / 2018

$850.00

Cates Grain and Seed:

Evening Primrose $/kg 2008

No contracts were offered

2009

$4.00

2010

No contracts were offered

2011

A limited area was contracted at $4.10

2012

A limited area was contracted at $4.20

2013

A limited area was contracted at $4.20

2014

$4.20

2015

$4.20

2016

$4.20

2017/18

$4.00

Borage $ /kg 2006 / 2007

$7.20

2007 / 2008

$7.40

2009 to 2012

No contract borage has been grown

2013 / 2014

$9.50/kg MD

2014 / 2015

$9.70/kg MD

2015 / 2016

$9.50/kg MD

2017 / 2018

No contracts in the last two years

Oilseed Rape / Canola

Pure Oil NZ

Hybrid Oilseed Rape 2013 / 2014 2014 / 2015 2014 / 2015 2015 / 2016 2017 2018 2022

$/tonne dressed $700 $700 $740 for high oleic oilseed rape $700 for High Oleic Low Linolenic rapeseed $700 $680 $1,400

Hybrid Canola 2007 / 2008

$2,150

2008 / 2009

$3,150

2010 to 2012

No contracts given

2017

$700

2018

$680

2022

$1,000

SMALL SEEDS The price paid to seed growers are based on a machine dressed weight of seed with acceptable purity standards. Grower Prices due to current inflationary pressures will show significant market volatility, The following prices for 2022 are for first generation certified seed, minimum 99% purity and 90% germination. The prices given are general base grower prices, which may be supplemented in some company contracts by additional quality payments.

Pasture Grasses Ryegrasses

$/kg

Italian – All proprietary cultivars

2.20

Hybrid – All proprietary cultivars

2.50

Perennial – All proprietary diploids

2.80

Perennial – All proprietary Tetraploids

2.60

Grasslands Nui

2.50

Grasslands Ruanui

2.50

Grasslands Manawa

2.00

Grasslands Moata

1.90

Grasslands Tama

1.90

Italian

2.00

Other Grasses - Cocksfoot proprietary cultivars

5.50

Tall Fescue proprietary forage cultivars

5.50

Bromus (Prairie Grass)

4.00

Yorkshire Fog

10.00

Turf / Amenity Species $/kg Turf perennial ryegrass

3.00

Browntop proprietaries

12.00

Turf Fescues

5.50

Tur Tall Fescue

4.00

Legumes White Clover

$/kg

Proprietary White Clover

7.00

Grasslands Huia

5.00

Uncertified

6.00

Red Clover Red clover proprietary

8.00

Uncertified

7.00

Lucerne

12.00

Lotus

15.00

Forage Herbs $/kg Chicory proprietary cultivars

11.00

Plantain proprietary cultivars

4.50

Forage Brassicas $/kg Kale

4.50

Swedes

3.25

Turnips

3.00

Forage Rape

3.00

Source: PGG Wrightson Seeds.

FRUIT PRODUCTION Fruit Prices - General

The prices paid to growers for fruit vary markedly,` both within and between seasons and between districts. They are seasonal, vary daily and are very much dependent on climate and its subsequent effects on both availability and quality of fruit offered. The location of the property in relation to population centres and the amount of produce that an individual producer provides over the course of a season also influences prices received. Whether the produce is for local consumption or for export is another major influence for a range of fruit. Labour costs and availability, affect grower decisions regarding harvest. Picking costs for low value local markets may mean some fruit is not harvested. Wholesale prices paid at auction and details of contracts for process fruit, particularly that which is grown organically, is generally confidential and in many cases is negotiated with growers on an individual basis. Again, prices vary markedly with district and season.

Apples

Total varieties Hawke’s Bay - pipfruit orchard model $/export TCE

2014

2015

2016

2022/23

Weighted average return at FAS

25.45

28.75

30.60

Total varieties Nelson - pipfruit orchard model $/export TCE

2014

2015

2016

2022/23

Weighted average return at FAS

25.65

28.10

29.95

33.50

Hawke’s Bay - pipfruit orchard model FAS1 export returns $/tray carton equivalent (TCE - 18.6kg) Braeburn Cripps Pink / Pink LadyTM EnvyTM Fuji Granny Smith JazzTM

2013 22.85 27.00 33.60 25.20 22.10 24.70

2014 20.20 27.00 37.45 30.00 25.00 25.55

Pacific RoseTM Pacific QueenTM Royal Gala 1 = Free alongside ship

28.30 32.90 31.15

… 35.80 31.40

2022/23 31.78 29.62 50.50 39.54 32.50 33.22 36.46 45.10 33.04

Nelson Apple Export Returns ( $/TCE ) Braeburn Cox Orange Cripps Pink / Pink LadyTM3 EnvyTM3 Fuji3 JazzTM Royal Gala Other apples Pears

2013 23.95 23.70 25.45 32.85 23.00 25.10 24.70 29.15 29.65

2014 22.70 26.30 26.20 34.75 26.30 25.05 24.65 28.55 29.55

2022/23 31.37 34.78 31.27 47.84 31.67 31.67 32.37 38.07 N/A

Source: MPI Nelson Pipfruit Orchard Model Export FAS returns .

Avocados

Local Market

Orchard Gate returns /kg $2.82 $1.33 $2.50 $4.26 $2.25 $4.38 $3.10 $2.45 $4.64 $3.34 $3.37

2006 / 2007 2007 / 2008 2008 / 2009 2010 / 2011 2011 / 2012 2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016 2016 / 2017 2022/23

Source: New Zealand Avocado Growers Association.

Export Market

Orchard gate returns prices $/kg $5.16 $3.33 $4.15 $4.80 $3.07 $4.73 $5.96 $4.11 $6.51 $5.98 $4.18

2006 / 2007 2007 / 2008 2008 / 2009 2010 / 2011 2011 / 2012 2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016 2016 / 2017 2022/23

Source: New Zealand Avocado Growers Association.

Feijoa

Local Market Fresh fruit sales total about 500 tonnes annually. Demand for large sized premium grade fruit is increasing. This is largely due to marketing and promotional initiatives of the Feijoa Growers Association. In recent years wholesale prices (exclusive of GST) for premium grade fruit have been:Large (90+g/fruit)

$7 per kg in March and early April, falling to $4 per kg in the peak of the season, in early May.

Medium (65 to 90g)

$5 per kg in March and early April, falling to $3 per kg in the peak of the season, in early May.

Small < 65 g/fuit

Prices can be good early in the season with $3.50, but at peak around 2.00 per kg.

Prices for mediocre and poor fruit are normally much less. Export Fresh fruit sales up this year with a total about 60 tonnes annually. Most smaller sizes go to North America. Australia will take mid to larger. Prices paid to packhouses varied from $23 per tray early in the season to $18 to $20 per tray mid-season. Tray weights range from around 2.4 kg for small fruit (39 count) to a little over 3 kg for (25 count) large fruit. Processing Processed volumes are steadily increasing and last year totalled about 500 tonnes. Most of the fruit goes into blended juices and wines. Prices received by growers (at the gate prices) vary from around $1.10 to $.70 per kg depending on the processor purchasing the fruit and the willingness for the grower to supply in the lower price range.

Source: – President, NZFGA. April

Grapes 2022 Marlborough vineyard monitoring report, average prices and revenue

2020 (Reference Year) Producing Area (Ha)

Sauvignon Blanc Pinot Noir – Table Pinot Gris Chardonnay – Table Total / Average

Total Production (Tonnes)

Gross Yield (%)

Brix (o)

Grape Price ($/Tonne)

Revenue ($)

Revenue $/Ha

24.0 3.0

Yield Per Ha (Tonnes / Ha) 14.9 7.7

358 23

86% 6%

21.2 22.7

1,905 3,380

681,230 78,080

28,385 26,027

1.5 1.5

13.0 11.1

20 17

5% 4%

22.1 22.3

1,990 2,395

38,810 39,880

25,873 26,587

30.0

13.9

417

100%

2,010

838,000

27,935

Producing Area (Ha)

Total Production (Tonnes)

Gross Yield (%)

Brix (o)

Grape Price ($/Tonne)

Revenue ($)

Revenue $/Ha

24.0 3.0

Yield Per Ha (Tonnes / Ha) 10.5 3.8

252 11

90% 4%

21.8 22.8

2,035 3,495

512,820 39,840

21,368 13,280

1.5 1.5

6.4 5.6

10 8

3% 3%

22.7 22.7

2,060 2,465

19,780 20,710

13,187 13,807

30.0

9.4

281

100%

2,110

593,150

19,770

Producing Area (Ha)

Total Production (Tonnes)

Gross Yield (%)

Brix (o)

Grape Price ($/Tonne)

Revenue ($)

Revenue $/Ha

24.0 3.0

Yield Per Ha (Tonnes / Ha) 16.6 7.4

398 22

88% 5%

20.4 22.2

2,300 3,430

916,320 76,150

38,180 25,383

1.5 1.5

13.2 8.8

20 13

4% 3%

21.5 21.9

2,265 2,760

44,850 36,430

29,900 24,287

30.0

15.1

454

100%

2,365

1,073,750

35,790

2021

Sauvignon Blanc Pinot Noir – Table Pinot Gris Chardonnay – Table Total / Average

2022

Sauvignon Blanc Pinot Noir – Table Pinot Gris Chardonnay – Table Total / Average

Kiwifruit

Orchard gate Returns (per tray)

Source: Zespri annual report 2023.

Zespri Green OGR /TRAY AV YIELD/HA TOTAL HA OGR/HA AV KG/TRAY OGR/KG

$5.55 9976 6180 $55,395 3.50 $1.59

2022/23 FORECAST Zespri Zespri Organic Gold 3 green $8.04 $9.79 7017 13789 467 7486 $56,398 $134,962 3.48 3.49 $2.31 $2.80

Zespri Organic Gold 3 $11.58 13879 285 $125,909 3.50 $3.31

Zespri Red 19

Zespri Green 13

$11.58 10871 59 $41,543 3.33 $6.60

$21.99 1889 34 $38,366 3.48 $1.81

Detailed information on payout, performance, follow the below link. https://www.zespri.com/content/dam/zespri/nz/publications/Kiwiflier/kiwiflier-2023/KF444-February-2023.pdf

Olives

The wholesale price in 2017 for New Zealand Extra Virgin Olive Oil was between $8 and $15 per litre. For oil produced from the 2018 harvest is expected to be on a per litre price at between $10 and $15. A large grove has been cleared which is causing a volumetric problem for marketers of EVOO. Bottled New Zealand Extra Virgin Olive Oil in supermarkets is selling at between $28 and $34 per litre inclusive of GST. There is unlikely to be a rise in New Zealand EVOO prices in supermarkets until European producers raise their prices. Farmers Market and Boutique grove sales are still between $60 and $80 per litre. Processing and harvesting costs are excessive compared to Australia and Europe. Harvesting costs are around $5.50 per tree with a mechanical shaker. This has encouraged large groves to purchase their own harvesting machines. Processing costs are over $1.00 per kilo for small amounts reducing via a volume scale to about 45 cents per kilo for significant volumes. The small capacity of processing lines and the geographical placement of some lines is frustrating. This is somewhat compensated by the high quality of EVOO produced in New Zealand but does leave NZ EVOO as a niche product. New Zealand produced EVOO does not exceed 10% of all EVOO consumed in New Zealand and zero percent of olive oil blends etc. Very little EVOO is exported and only as branded product. The price that an olive grower could expect for selling fruit from the 2023 harvest is low, being between about $1.00 and $1.20 per kilogram of fruit. Harvest costs are an expense from that revenue. The indicative price is based on a significantly higher crop load. As olives are notorious for alternate bearing especially in groves that a not well managed.

Source: Matapiro Olives

Pears

Total Export Return for Pears Tray Carton Equivalent ($/TCE, 18kg) 2016

2017

2018

2023

$30.60

$29.45

$25.55

$27.50 Est

The non-export actual return for pears in Nelson ($/TCE) for 2014, was $2.90. The non-export budgeted return for pears in Nelson ($/TCE) for 2015 was $4.10. Source: MPI.Growers reports.

Blueberries

From a grower, prices for the 2017 season were on average: Fresh domestic berries $23/kg Frozen domestic berries $4/kg Export fresh berries $25/kg 58

VEGETABLE PRODUCTION Vegetable Prices - General

At the time of reviewing these prices there has been a lift in wholesale pricing across a wide range of vegetables, which is reflecting the highest inflationary effects that have been shown in decades.The entire Horticultural industry is facing chronic labour shortages due to border closures, disruptions to logistics and supply chains,cost of growing, fertiliser and compliance costs are effecting the prices being paid domestically and Internationally .

Export Vegetable Values and Volumes 2013 to 2022 forecast

Year to 30 June

2013

2014

2015

2016 2017 2018

2019

2022

Fresh veg (‘000 tonnes)

314

306

299

317

326

341

351

370

Export value ($ million)

225

219

215

252

250

260

265

276

Process veg (‘000 tonnes)

207

224

212

200 210

210

Export value ($ million)

375

387

373

372

387

389

Source: Situation and Outlook for Primary Industries

NB: the following listed Vegetable Prices are NZ National Wholesale.

Asparagus

Asparagus $ Per Bunch

Year

June

July

Aug Sept

2021

2022

Change.

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2.95

2.13

1.58

2.18

3.12

2.02

1.65

2.04

-7%

-5%

Source: National Wholesaler

Red Capsicum $ Per each Year

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

July

2021

2.79

1.67

1.23

0.90

0.93

0.86

0.87

1.28

0.86

2.33

3.09

2.86

2022

2.22

1.20

1.03

1.0

0.88

1.07

1.30

1.32

1.80

2.09

3.01

Change -20% -28% -17%

11%

-6%

24%

49%

21%

-10%

-3%

Onions

Brown Onions $ Kg year

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2021

0.63

0.67

0.65

0.64 0.63

0.71

0.87

1.03

0.86

0.76

0.75

0.68

2022

1.21

0.60 0.60

0.67

0.72

0.95

1.27

1.33

1.27

1.26

1.25

1.26

Change.

93%

13%

34$

46%

28%

47%

66%

68%

85%

-7%

Source: National Wholsaler.

Export indicative averages. 2011 / 2012

$150 - $250 / tonne

2012 / 2013

$400 / tonne

2013 / 2014

$350 / tonne

2014 / 2015

$600 / tonne

2015 / 2016

$600 / tonne

2017 / 2018

$500 / tonne

2022

$585 / Tonne

Potatoes Main Crop ( Agria )

Canterbury – Prices

Comments

2021/2022

$350 - $750

2nd grade to premium

2016 / 2017

$450 - $600/tonne

Early season / Main crop

2015 / 2016

$500 - $200/tonne

Early season / Main crop

2014 / 2015

$500/tonne

Whole season average

2013 / 2014

$500/tonne early season

2012 / 2013

$15.50/20kg

2011 / 2012

$12/20kg / $8/20kg

Peak / Winter

2010 / 2011

$12/20kg / $8/20kg

Peak / Winter

Cauliflower whole year

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2021

2.38

2.05 2.20

2.25

2.97 1.87

2.19

2.31

2.64

1.97

2.21

2022

3.02

2.73 2.07

2.55 2.87 2.41 2.23 3.95 4.58 3.31

2.44 3.00

Changes

27%

33%

13%

-3%

-6%

29%

71%

73%

68%

-8%

36%

Jan

May

Source: National Wholesaler.

Broccoli per head Year

June

July

Aug

Sept

Oct

Nov

Dec

Feb

Mar

Apr

2021

1.35

1.67

0.97

1.08

1.27

0.75

0.79 1.04 0.94

1.03

0.85 0.97

2022

1.30

2.17

1.33

1.40

1.87

1.11

1.09

1.99

1.77

1.57

1.10

1.14

Change:

-3%

30%

37%

30%

47%

48%

39%

92%

89%

29%

18%

Sweetcorn per each year

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2021

2.75

1.42

0.81

0.93

0.81

1.09

1.22

2022

3.22

1.51

1.00

0.99

1.00

1.01

1.60

Change:

17%

23%

24%

-8%

31%

Carrots per Kg year

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2021

0.79

0.83

0.77

0.73

0.88

1.11

1.10

0.97

0.99

0.97

0.86

0.80

2022

1.20

0.73

0.74

0.78

0.87

1.20

1.22

1.34

1.36

1.41

1.35

1.26

Change:

52%

-12 %

-3%

14%

11%

38%

45%

57%

Celery per Bunch year

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2021

1.74

1.85

1.73

1.65

1.60

2.81

2.95

1.90

1.70

1.66

1.60

1.63

2022

2.45

1.97

2.05 2.55

2.90 3.88 3.42

3.09

2.26

2.08

2.12

Change: 41%

18%

54%

82%

38%

16%

63%

26%

25%

32%

30%

Red Kumara per Kilo year

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2021

1.78

3.03 2.97

2.73

2.78

2.86

2.99

3.614

3.70

2.60

2.44

2.21

2022

1.89

1.60

1.66

1.46

1.45

1.46

1.59

2.44

2.57

2.39

2.19

-39% 47%

49%

-56%

34%

-15%

-2%

-1%

Change: 6%

1.58

-47% -39%

-51%

Spring Onions per Bunch year

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2021

1.19

1.67

1.59

1.30

.15

1.11

1.10

1.18

1.12

1.08

1.07

1.11

2022

1.67

1.50

1.64

1.71

1.68

1.57

1.43

1.54

1.52

1.48

1.49

1.48

Change: 40%

-11%

32%

46%

41%

29%

31%

35%

36%

40%

33%

Telegraph Cucumbers per Each year

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2021

4.53

2.91

3.44

2.36

2.15

1.83

1.44

1.16

1.30

2.21

2.78

1.84

2022

5.18

2.64

4.09

2.59

2.13

2.06 1.44

1.84

2.27

1.90

1.89

3.43 86%

Change: 14%

-9%

19%

10%

-1%

12%

59%

75%

-14%

32%

Tomatoes loose per Kg year

June

July

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2021

5.81

6.27 8.06 7.44 3.76

1.62

1.32

0.97 0.75

1.24

2.30

3.30

2022

3.25 7.80 9.22

9.68

5.13 2.99

2.97

3.02

2.49

1.96

2.65

30%

36%

124% 213% 125% 102%

-15%

-20%

Change -44%

25%

Aug

14%

Sept

Source: National Wholesaler

85%

1.68

APICULTURAL PRODUCTION

Honey production, price and expenses figures listed are based on a survey of a range of beekeeping enterprises, which administered by AsureQuality Limited during their annual Risk Management Programme audits and/or hive audits, and via targeted interviews. Additional data sources are used for individual expenditure items, such as industry product catalogues and price lists, and direct queries to suppliers.

The following prices include Beekeepers supply the packaging (drums or intermediate bulk containers) and cover freight costs to the buyers’ premise.

Colour/grade

$/kg (f.o.b.) 2019 / 2020

2020 / 2021

2021/2022

Light (clover type)

$2.50 - $5.50

$3.60 - $6.00

$3.00-7.00

Light amber

$2.50 - $4.50

$3.50 - $6.00

$3.00-8.00

Dark / Honeydew

$2.50 - $4.00

$3.00 - $7.00

$3.00 - $8.00

$4.50 - $130.00

$8.00 - $120.00

$5.00 - $160.00

Manuka

Source: MPI Apiculture Monitoring Programme 2022; AsureQuality Ltd.

Beeswax $/kg 2019/2020

2020 / 2021

2021/2022

Light

$7.00 - $11.00

$7.00 - $11.50

$7.00 - $12.00

Dark

N/A

$5.00-7.50

$7.00 - $8.50

Source: MPI Apiculture Monitoring Programme; AsureQuality

Pollen $/kg

Not dried nor cleaned Cleaned and dried

2019/ 2020

2020/ 2021

2021/ 2022

$16.00 to $30.00

$20.00 to $35.00

$18.00 to $32.00

$48.00-50.00

$40.00 - $50.00

$50.00 $60.00

Source: MPI Apiculture Monitoring Programme 2021 AsureQuality

Propolis 2019

Beekeepers reported receiving $545 to $190/kg raw, unprocessed product with quotes of $380/kg for pure product.

2020

Beekeepers reported receiving, unprocessed product with quotes of $360 to $390/kg for pure. .

2021

N/A .

2022

$280-300

Source: MPI Apiculture Monitoring Programme 2021 AsureQuality

Pollination

Beekeepers received the following returns from hire of their hives to orchardists for pollination of fruit crops.

$/Hive

2021/ 2022

Summer fruit crops under covers

$110.00 - $250.00

Kiwifruit:

$210-500

Pipfruit

$100-200

Avocados

$1560-220

Canola & Small seeds

$150.00 - $250.00

Prices at lower end are for hives delivered to depot sites. Higher end prices included delivery to orchard and sugar for 3 to 4 feeds to stimulate bees to collect pollen.

Canterbury: Vegetable seeds i.e. Cabbage, Cauliflower and Radish

$250 per hive

Clover

$200 per hive

Carrot

$255 + per hive

Live Bees

Shipments of live bees to Canada provides an income stream for a number of North Island beekeepers who can get their bees to Auckland airport. Canada imported 25,000 one kilogram packages of bees during 2016 and 15,000 packages from NZ. The majority of NZ queen bee exports still go to Canada. Shipments to Canada have decreased likely due to the depressed prices Canadian beekeepers are receiving for their honey. However bumblebee shipments to the Maldives doubled to 9,600 individual bees in the year to 30 June 2017.

Export

$ per kg live bees

per queen local sales

2020

$34.00

$40 - $70.00

2021

$28.00 - $50.00

$38.00 - $65.00

2022

$30.00 - $40.00

$35.00 $65.00

Comments (Beekeepers pay freight to buyers.) * Queen bee prices for 2022 includes the price of virgin queens. The production and sale of virgin queens is an emerging trend.

Source: MPI Apiculture Monitoring Programme 2021; AsureQuality

Registered Beekeeping Enterprises & Hive numbers New Zealand 2000 – 2021 ( Varroa was discovered in NZ 2000)

LOGS Indicative Average Log Prices – September 2023.

Actual prices will vary according to regional supply/demand balances, varying cost structures and grade variation. These prices should be used as a guide only and specific advice sought for individual forests.

Log Grade

$/Tonne at Mill

$/JAS M3 at Wharf

Pruned (P40)

$175 - $200

$150 - $170

Structural (S30)

$120 - $150

N/A

Strucrural (S20)

$98 - $105

N/A

Export A

N/A

$110

Export K

N/A

$101

Export KI

N/A

$94

Export KIS

N/A

$112

Pulp

$46

N/A

Source: https://nz.pfolsen.com/

Forestry Forecasts Export 2018 - 2026 Export prices NZD

$Millions

Logs and Lumber

Product

Actuals 2019 2018

Forcast

2020 2021

2022

2023 2025

2024

2026

FARM AND ORCHARD EXPENSES

Note: Before reading this section, please refer to the disclaimer in the Preface of this Manual.

INPUT PRICES - GENERAL INFORMATION Input Price Movements Sheep and Beef Farm Input Price Movements 12.0 10.0 8.0

6.0 4.0 2.0 0.0 -2.0 -4.0

e estimate

Source: Beef + Lamb New Zealand Economic Service, Statistics New Zealand

Price Discounts

As farmers and growers will be aware, it is sometimes possible to negotiate price discounts from retailers, particularly if goods are purchased in bulk. Similarly, trading societies can also offer goods at cheaper than normal retail rates to members. Discounts are commonly in the order of 5% to 10% for many farm goods excluding some items such as common agricultural chemicals. To become a member of one South Island trading society, five hundred $1 shares must be purchased and members receive rebates and dividends.

Inflation Timeline in New Zealand.

Source: Reserve Bank of New Zealand There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the Consumer Price Index (CPI) formula or the compound interest formula. Using the CPI Formula: When we have the start and end years, we can use the following Formula:

To obtain the values equivalent in buying power between 2022 and 2022, us ethe corresponding CPI values.

To obtain the Present value, plug in the CPI for today.( $126.45 as this is edited)

New Zealand Inflation Conversion Table:

WAGES / SALARIES / DRAWINGS Wages and Salaries - Farm Employees Based on Individual Employers & Federated Farmers survey 2022/23 As a guide to Gross Wages or Salaries commonly paid to farm employees, the following figures, provide a range of services in the rural sector. It is important to recognise the following: There will always be exceptions to the ranges shown. These are Salary/Wage figures only and do not include Other Benefits and so do not show the Total Package Value for each role.

Sheep & Beef

Median

Range

Shepherd General / General Hand

$52054

$33,280 - $62,400

Shepherd

$59,457

$52,680 - $64,396

Head Shepherd

$67,920

$62,000 - $75,000

Stock Manager

$75,036

$67,500 - $86,000

Manager

$80,560

$68,000 - $99,000

Operations Manager

$113,000

$86,000 - $149,500

Average stock units 9000 per farm, average number staff 8 Dairy

Median

Range

Part-Time Assistant

$24.00/hr

$18.00 - 30.00/hr

Assistant

$56,000

$49,000 - $62,000

Herd Manager

$69,000

$63,000 - 170,000

Assistant Manager / 2IC

$67,000

$40,000 - $74,000

Farm Manager

$84,800

$76,000 - 190,000

Operations Manager

$89,800

$62,000 - 230,000

Average herd size 790 cows, average number of staff per farm 7.5.

Arable

Median

Range

Assistant Machinery Operator

$48,700

$44,000 - $71,000

Machinery Operator

$68,000

$63,000 - $80,500

Farm Manager

$80,000

$71,500 - $99,000

Average Arable Farm 277 Ha, average staff including casuals 19. All amounts are assuming the person is covering their own personal expenses (power, phone etc). If the person is being provided board and lodging a deduction of up to 15% for board and 5% for lodging can be made from the minimum hourly rate. Typically, board and lodging provides meals while the employee is working (not necessarily while on scheduled time off), doing employee’s washing, providing bedding and linen. Where accommodation is provided, that accommodation may be assessed for taxation purposes according to the requirements of the Inland Revenue Department according to the formulae set out from time to time or from the best advice available. Assistant: Someone completing tasks under direct supervision and with few areas of responsibility other than within the dairy shed. For example, Nitrogen: will be applying it, may be calibrating spreader, but will not decide rate.

Herd Manager: Normally has a minimum of two years’ experience and would have sound knowledge of identifying and treating animal health problems. Would have some responsibilities such as herd health and feeding, pasture management and assessment, with guidance from the Manager or Employer. Nitrogen: will definitely be calibrating the spreader, may be deciding the rate. Assistant Manager / 2IC: Similar to the level of a Herd Manager re competency of performing day-to-day tasks. Distinguishing features: the Assistant Manager is expected to oversee the day-to-day operation of the farm in the Managers / Employers’ absence. They are likely to assist with delegation of duties to junior staff and day-to-day supervision of those staff as required.

Farm Manager: Makes the weekly decisions on farm. Responsible for the financial and physical performance of the farm. For example, Nitrogen: will be deciding rate of application, maybe deciding total annual Nitrogen use. Operations Manager: Operates to a level of working within the operating budget, often negotiating with the fertiliser company, banks, and farm supply companies. Manages all aspects regarding staff and sometimes does the GST return. Oversees several farms. For example, Nitrogen – will be deciding total amount of Nitrogen usage. Non-Cash Benefits: All figures quoted are cash salary; if any non-cash benefits are included, they are over and above these figures. Non-cash benefits can include meat and firewood in all examples. In the Sheep and Beef sector house power and telephone rental may be included. Employers need to be aware that these benefits can attract Fringe Benefit Tax. Contract/Sharemilking Positions: These positions are entirely negotiable between the parties depending on herd size and farm costs allocated within the contract. Each is a separate contract and agreements are very variable. The contract actually negotiated will reflect the remuneration required, after costs, to adequately reward the person for job size, performance, accountability and risk.

Minimum Wage Requirement: It is important that employers have an accurate record of all hours worked by employees, so they can ensure an employee’s package (wage/salary and house value) equates to at least the minimum wage. The minimum wage changes frequently so we advise employers to ensure they are aware of the current rate by going to www.employment.govt.nz/er or phoning the Ministry of Business, Innovation and Employment. Payment of time outside of ordinary hours of work All hours of work need to be paid including staff meetings and training. (any staff functions however are not deemed to be time worked) Total Remuneration for KiwiSaver Where this is applied, and the employee is on minimum wages, their KiwiSaver and the Employers contribution will need to be over and above their gross hourly wage.

Wages and Salaries - Horticultural Employees Some typical wage rates are as follows: The minimum wages have been revised in New Zealand, with effect from 1 April 2023. The adult minimum wage increases from NZ$21.20 to NZ$22.70 per hour. The starting-out and training minimum wage rates have increased from NZ$16.96 to NZ$18.16 per hour.

Field Work and Harvesting Medium

Range

Manager

$62,000

$52,000 - $139,000

Assistant Manager

$53,000

$40,000 - $70,000

Casual Staff:

Tractor Driver / Forklift Driver

$22.70 to $27.80 per hour

General Labourers

$22.70 to $25.00 per hour

Vineyards Average Base Salary Range Vineyard Manager (small to medium enterprise)

$79,030 -- $84,288

Assistant Vineyard Manager (medium to large)

$ 55,145 - $62,806

Vineyard Machinery Operator

$48,024 - $55,000

Vineyard Worker (includes casuals)

$41,621 -- $65,000

Orchard / Packhouse Workers Range General staff (packhouse staff paid towards lower end of scale, graders paid towards the higher end of scale)

$22.70 -$25.00

Supervisors/Quality Controllers

$24.00 - $30.50

Forklift drivers

$22.70 - $25.00

Tomato Glasshouse Workers (average) Range Starting rate

(NB: The minimum wages have been revised in New Zealand, with effect from 1 April 2023. The adult minimum wage increases from NZ$21.20 to NZ$22.70 per hour. The starting-out and training minimum wage rates have increased from NZ$16.96 to NZ$18.16 per hour.)

With responsibilities

$22.70 - $25.00

Supervisor (leading hand, foreman, technical)

$23.00 - $35.00

Trainee Grower

$42,500- $65,000

Assistant Manager

$60,000+ pa

Manager

$90,000+ pa

Experienced growers range from about $80,000 to in excess of $100,000. Such positions usually include vehicles, phones, often accommodation arrangements and some sort of profit or bonus incentive scheme, plus there may be overseas travel. Note with the increased cost of compliance we are also seeing roles like Health and Safety officers and regulatory compliance positions being introduced into the larger businesses. Rates for these roles vary but can range in the $60K to $90K sphere. The expectation is that wage rates will continue to rise as it becomes increasingly difficult to recruit permanent staff. Market Garden (Southland) Range Casuals - Entry level

$16.96-$18.16 per hour

Permanents - Lower end

Moderate skill level

$25 per hour

Permanents - Top end

Most skilled

$30 per hour

Drawings

Drawings or Personal expenditure for farmers and growers: Forecast 2022/23 Sheep and Beef

(per farm)

(per su)

North Island Hard Hill Country East Coast

$81,600

$12.43

North Island Hill Country Taranaki - Manawatu

$88,900

$12.17

North Island Intensive Finishing Northland, Waikato, BOP

$64,300

$25.92

South Island High Country

$115,700

$11.82

South Island Hill Country Marlborough - Canterbury

$123,700

$19.87

South Island Breeding and Finishing

$81,100

$24.14

South Island Mixed Finishing

$117,300

$30.38

South Island Intensive Finishing

$73,300

$30.29

National

$88,900

$22.36

Dairy 2022/23

(per farm)

(per cow)

(per kg MS)

National

$82,043

$198

$0.51

(per farm)

(per su)

North Island

$50,000

$19.73

South Island

$47,300

$15.07

Arable 2023 data

(per farm)

(per ha)

Average

$100,969

$326

Deer 2023 data Often farmed with Sheep and Beef, difficult to extrapolate from Sheep and Beef data

Horticulture

(per property)

(per ha)

Kiwifruit 2023 data

$54,400

$10,880

Hawkes Bay Pipfruit (wages of mgmt) 2022/23 budget

$92,000

$2,300

Nelson Pipfruit (wages of mgmt) 2023 budget

$97,200

$2,430

Viticulture

(Whole vineyard) (producing ha)

Marlborough

$70,400

Source: MPI; Beef+Lamb NZ Economic Service; DairyNZ Economic Survey.

$2,345

ANIMAL HEALTH Animal Health - Average Costs

Average animal health costs forecast for 2022/23. Sheep and Beef (Deer not separated out but often run with sheep and beef)

(per su)

North Island Hard Hill Country Class 3

$6.03

North Island Hill Country Class 4

$5.69

North Island Finishing Class 5

$5.68

South Island High Country Class 1

$6.58

South Island Hill Country Class 2

$6.53

South Island Mixed Finishing Class 8

$5.52

South Island Breeding and Finishing Class 6

$6.96

South Island Finishing Otago Class 7

$8.16

National Class 9

$6.28

Dairy 2020/21

(per cow)

(per kg MS)

Northland

$0.24

Waikato

$0.25

Bay of Plenty

$0.29

Taranaki

$0.22

Lower North Is

$0.19

West Coast - Tasman

$0.18

Marlborough - Canterbury

$0.23

Otago - Southland

$0.23

National

$102

$0.24

Source: Beef+Lamb NZ Economic Service 2022/23; DairyNZ Economic Survey 2020/21. Beeflambnz.com Dairynz.co.nz 81

Figure Proportion of Dairy Operating Expenditure 2020-21 Expenditure Feed continues to be the largest expenditure category at 27.9% in 2020-21 and has been the largest expense category since 2007-08. Labour was the second-highest operating expense for dairy farms at 20.3 percent of total operating expenditure. Maintenance and fertiliser contributed 19.5 and 8.8 percent respectively. Figure 5.3 shows the major 2020-21 expenditure categories. Changes in the total farm expenditure are affected by the farm area, herd size and milksolids produced. Therefore, it is more appropriate to consider spending per cow, hectare or kilogram of milksolids to measure the movement of expenses for individual items. Average farm working expenses (i.e. cash expenses) per kilogram of milksolids increased 2 cents.

Drenches / Vaccines / Bloat Control Drenches

Sheep Drenching Costs - Examples: (prices vary depending on retailer and quantity purchased) Tradename : Dose rate:

Cydectin oral

VetMed ComboMax oral 1ml / 10kg

Scanda Plain

1ml / 5kg

Eweguard selenised 1ml / 25kg

Cost per ml:

$0.032

$0.78

$0.04

$0.21

$0.19

Cost per $0.352 $1.71 55 kg ewe: Cattle Drenching Costs - Examples: Tradename: Scanda VetMed Plain ComboMax oral Dose rate: 1 ml / 10 kg 1ml / 10 kg

1ml / 10 kg

Outlaw Pour on

Noromectin Injection

1ml/20kg

1 ml / 50 kg

Cost per ml:

$0.04

$0.18

$0.39

Cost per 500 kg :

$1.75

$1.90

$4.48

$3.91

Drenches / Anthelmintics

Farmlands: Ivermectin based Endectocide

Price

Proabamec- Cattle pour-on

5 litre

$262.17

Invicta Injection– Cattle Antiparasitic injection 500 ml

$256.96

Pour-On Gun

$76.48

Farmlands.co.nz

VetEnt Lincoln: Vetent.co.nz

Sheep Drench Product

Dose rate 1 ml per 5 kg

Unit size 5/10/20 litre

First Drench / High Mineral Matrix Hi Mineral Switch Hi Min Iver Matrix Tape Hi Min Switch Hi Min Startect Zolvix Exodus 1% Injection Exodus LA Injection

Est Retail Price $286/$395.26/$749.12

1 ml per 5kg 1ml per 5kg 1ml per 5kg 1ml per 5kg 1ml per 5kg 1ml per 10kg 0.1ml per 5kg

5/10/20litre 5 Litre 5/10 Litre 5 Litre 5/15 Litre 1/2.5/5 Litre 500ml

$285.27/$343.16/$654.49 $186.00 $362.28 / $648.00 $186.00 $850.60 / $2326.32 $398.85/$874.38/$1589.73 $316.10

1ml per 20kg

500ml

$397.97

Cattle Drench Product Oxfen C Turbo Initial Eclipse Pour on Eprinex

Dose rate 1 ml per 20 kg 1ml per 10kg 1ml per 20kg 1ml per 10kg

Unit size 5 Litre 2.5/5L 2.5L & 5L 2.5 & 5L

Reflex Blaze Boss Lypor Boss Injection Dectomax V Inj

1ml per 20kg 1ml per 20kg 1ml per 20kg 6ml per 100kg 1ml per 35kg 1ml per 25kg

5L $237.36 5L $459.54 1L, 2.5L & 5L $96.53/$698.63/$1278.23 5L $310.79 500ml $286.58 500ml $207.49

Est Retail Price $248.48 $783.44 / $1449 $682.71 / $1262.81 $479.25/$655.49

Combination Drench for Livestock

VetEnt: Product Alliance Dectomax Inj Cattle

Dose rate 1ml per 10kg 1ml per 50kg 1ml per 50kg

Unit size 10 Litre 200ml 500ml

Est Retail Price $714.73 $269.18 $369.81

Sheep

PGG Wrightson Ltd: Product

Unit size

Retail Price $189/ $639

VetMed Combomax Oral (sheep/cattle)

1ml / 10kg

5 l / 20 l

VetMed Dualmax Pour on treatment

1ml / 10kg

$569

VetMed Abamectin Pour on (cattle)

Various

$439

VetMed Moxidectin Sel

oral sheep

$229

Cydectin Pour-on

1ml/10kg

15 l

$1,759

Scanda Plain / Sel

1ml/10kg

10 l

$379

Cydectin (cattle - fluke)

1ml/10kg

$1129

1ml / 20kg

500 ml

$439

1ml / 25kg

500ml

$389

Vaccines: Cydectin L A Vaccine & Drench: Eweguard Selenised

Pggwrightson.co.nz

A South Island Veterinary Service: (vet only products) Product

Dose rate

Unit size

Oxfen High Mineral

1 ml per 5kg

5 / 20 litre

Oxfen C

1 ml per 20 kg

5 Litre

Oxfen C High Mineral

1 ml per 20 kg

5/20 litre

Arrest High Mineral or

1 ml per 5 kg

20 litre

$293

10 litre

$436.60

Scanda Plain

Est Retail Price $240 / $712 $255 $240 / $719

Genesis High Mineral

1 ml per 5 kg

5 / 20 litre

$183 / $386

Genesis Tape High Mineral

1 ml per 5 kg

5 / 20 litre

$267 / $771

Ultramox

1 ml per 20 kg

30 ml

Matrix Hi Mineral Triple Combo

1 ml per 5kg

5 / 10 /20litre

$37.10 $337/$440/$820

A South Island Veterinary Service: (vet only products) Product Converge Ivomec Injection Ivomec Plus Injection Ivomec Eprinex Eqvalan Paste

Dose rate Cattle Sheep Cattle

1 ml per 50 kg 0.5 ml per 25kg 1 ml per 50 kg

Unit size 5/10 Litre 200 ml 500 ml 500 ml

Cattle Deer Horse

1 ml per 10 kg 1 ml per 10 kg

250ml 1 / 2.5 / 5 l

Est Retail Price $283/$498 $176 $311 $336 $70 $287/$583/$833 $21

Cattle Endectocides

A South Island Veterinary Service: Product

Dose rate

Unit size

Est Retail Price

Exodus Injection (alternative)

500ml

Abapure (alternative)

5/20litre

$335/$785

2.5 / 5 litre

$572 / $1,035

Genesis pour on

1 / 2.5 litres / 5.5 litres

$253.55 / $312.16 / $448.31

Eprinex pour on

1 / 2.5 litres / 5 litres

$175.96 / $382.05 / $482.41

$553

Genesis Ultra Pour-On

1ml per 10kg

VetEnt Lincoln:

Vetent.co.nz

Vaccines PGG Wrightson Ltd: Multine 5 in 1 Plain Multine 5 in 1 Sel Pggwrightson.co.nz

Cattle>4mths = 4ml Sheep = 2ml/sheep

250ml / 500ml 250ml / 500ml

$60 / $90 $65/ $95

Shoof International: ($7.50 delivery NZ. Can change without notice) Pink eye patches, calf x 10pack / adult x 10pack

$70

Extra glue

$30

Shoofdirect.co.nz

Vet Ent: Vetent.co.nz Rotavec Corona for Rota virus 20 doses (40ml) per dose Rotavec Corona 50doses (100ml pack) ($8.96 per dose) Salvexin - B for Salmonella –250ml pack Salvexin – B 500ml pack

$9.77 $195.39 $447.80 $205.16 $368.00

Leptoshield 250ml (125doses)

$244.65

Leptoshield 500ml (250 doses) Scabiguard for Scabby Mouth 250 doses Footvax 250ml – 250doses Ultravac 5in1 – 500ml Ultravac 7in1 – 500ml

$438.88 $84.35 $326.83 $181.92 $650.60

VetEnt Lincoln: Campyvax 100ml Campyvax 500ml Toxovax 100doses Toxovax 200doses Yersinivax Lamb Vaccine 250ml (2ml dose) Lamb Vaccine 500ml (2ml dose)

$95.68 $418.60 $269.86 $518.02 $192.34 $231.84 $310.16

Bloat Control Agmax Industries Ltd: ($35 freight fee for all orders under $250) Bloatbuster (Alcohol Ethoxylate)

20 / 100 / 200 litre

$197 / $842 /$1,457

Bloat Stop

20 / 100 / 200 litre

$215 / $896 /$1,511

Agmax.co.nz

PGG Wrightson Ltd: Bloat Control Bloatenz

200 litre

$1,651

Bloateze Plus

200 litre

$1,749

Pggwrightson.co.nz Growth Promotants

FarmSource: Rumensin Capsules

per capsule

Storenzfarmsource.co.nz 88

$26.99

Dips / Sprays / Ointments / Dressings (See also contract dipping costs, Section 2.4.7.)

A South Island Veterinary Service: Product Fleecemaster

Dose rate

Unit size

Lambs/hoggets

5 to 12 ml

5 litre

$476

Ewes/Rams

10 ml 1 ml per 5 kg

20 litre

$403

2 l per 1000 l water

5 litre

$464

10 litre

$273

Unit size

Est Retail Price

Cypercare Cyrazin Liquid

Sheep

Cyrazin Spray-on

Sheep

Est Retail Price

VetEnt Lincoln: Product

Dose rate

Maggo Zapp Encore Zapp Encore Zapp Encore Cyrex Cyrex Cyrex Clik Spray Vetent.co.nz

1 litre 1 litre 5 litre 20 litre 250ml 5 litre 10 litre 20 litre

$98.54 $106.66 $302.90 $719.50 $110.60 $761.01 $1,341.96 $1197.78

5/10 litre 1L / 1000L jetting dip 2.5L/20L 2L/10L 20L

$589/$1019

5 litre

$730

Pour-on Fly and Lice products

PGG Wrightson Ltd: Extinosad Coopers Magnum Vet Med Cyromax Zapp Encore Cyrex Fly, Maggot and Lice

Pggwrightson.co.nz

$145/$459 $189/$589 $749

VetEnt Lincoln: Disinfectants: Sterigene 1L

$96.06

Antiseptic & Disinfectant 2L Antiseptic & Disinfectant 5L Virkon S 1kg

$35.07 $65.46

Virkon S 5kg

$455.14

$61.10

Vetent.co.nz

Metabolics / Antibiotics

(See also Section for mineral supplements, licks etc.)

South Island Veterinary Service Selenium Treatment Selovin LA 500ml

$492.00

Copper / Cobalt Treatment Copacap 20g bolus $5.03each Costs per Calf: Cobalt injection (Porlaject) – 500ml

$0.82 each

Copper capsule (Copacap 10g)

$180.61

Restricted Veterinary Medicine

Please contact VetEnt Lincoln on 03 325 2808 to get prices. VetEnt Lincoln: Enerlect (electrolyte) 1kg / 3kg / 8kg

$29.48/ $63.06 / $139.19

Selovin-5 500ml (Selenium for animals) – per pk (Weight dose rate)

$50

Triple Mix (high energy drench) 1 / 20 / 60 litre / 200 lit containers

$17 / $119 / $445/ $1,263.23

Dextrose 40% 500ml Flexi Pack (Ketosis treatment)

$16.35

Vetent.co.nz

A South Island Veterinary Service advises the following: Selenium Treatment Selpour- rate depending on weight of animal

2.5 litre approx. $155

PGG Wrightson Ltd: CobalJect 1000 B12 Selenised 500ml CobalJect 2000 B12 Selenised 500ml Pggwrightson.co.nz

Dose rate lambs= 1ml /ewes= 2-2½ml hoggets = 1.5 - 2ml calves = 5ml /cows = 10-12ml lambs=½ml hoggets/ewes = 1ml calves = 2-3ml /cows = 5-6ml

Unit size 500 ml

Price $62

500 ml

$105

Antibiotics (for cattle)

A South Island Veterinary Service: Mastitis treatment for cows in milk: (generally require a course of three tubes; sold various per box) Lactating Orbenin LA (24 tubes per box) per tube $14.95 IntracillaN 1000MC (alternative)

Per tube

$12.23

Metriclean

per tube

$33.90

100ml btle

LA$129.75

Duplocillin

1ml/25kg

A South Island Veterinary Service: Dry Cow Treatment: Cepravin 200 tubes per pack, also as single tubes

approx $5.25 per tube

Sureeal

$3.40

Dryzen

$3.88

A South Island Veterinary Service Bivatop 200 injection Metri-clean Metricure syringe Intracillin 300 Flexi 200ml (alternative)

100ml Each each 200ml

$127.54 $33.91 $24.70 $116.50

Bell-Booth Ltd: Product

Pack Size

Che’garl Original

2 / 5 / 20kg

$35.50/$48.75/$149.00

Che’garl Liquide

1 / 5 / 20 litre

$15.60/$38.20/$120.00

Che’garl Seaweed Meal

100 plus litre bulk 25kg

$5.60 per litre $127.00

5 / 20 / 200 litre

$30.80 / $93.50 / $670.00

Che’garl Apple Cider Vinegar with Garlic

Price

Bell-booth.co.nz

Animal Health Services VetEnt:

If you require one of our vet services please call the clinic to get a rough cost due to it being based on time.

A Veterinary Service offers the following: Screening for post calving/uterine infections Vet or Technician Metricure Treatment for post calving/uterine infections per animal Vetent.co.nz

per animal $5.42/ min $8.13 each

A South Island Veterinary Service Farm Visit Fee Vet Hourly Fee Milk Quality Review Future Authorisation Consult Repro Consult

Min 20 mins Hourly rate Min 20 mins Min 20 mins

$110 $325 $110 $110

Min 20 mins

$110

Lepto Consult

Min 20 mins

$110

Report Fee

Min 10 mins

$54.50

Disbudding

Depending on age and if anti-flamatories are used Depending on in shed or paddock/selection of 70 or whole herd

Body Condition Scoring

$7.90 to $10.90

$0.92 to $1.90

Tail Scoring

$353

Locomotion Scoring

$265

Scanning

Depending on yes/no, aged, data, phantom, dairy/beef yards, Number of animals.

$2.20 to $3.55

Deer TB Testing: This is now industry funded, (as with cattle testing) so farmers will no longer have to pay directly. Develveting:

A South Island Veterinary Service charges: Develveting cost does not include drugs and price is dependent on number of animals and handling facilities. Charged out at a rate of approximately $27.10 per five minutes.

Calf Disbudding / Dehorning: Ultra-Scan Ltd: (varying costs) 2023 prices Disbudding/dehorning (gas) – excluding local anaesthetic + team two technicians & double crates

$5.20 to $6.20 per calf

Other services we prove at Disbudding/dehorning time are: Additional Services Provided Vaccinations Deteating Tagging DNA Testing Elastration Ultra-scan.co.nz

Approximate cost per calf $2.00 $1.50 $1.50 $2.50 $1.65

Facial Eczema Tolerance Testing Fees (for rams):

AgResearch Ruakura: Ramguard

Discounts available for clients with higher numbers of rams to dose. No. of animals

Base Charge 30 kg

Surcharge $/kg over 30 kg

1 to 8

$128.50

$4.60

9 to 14

$121.50

$4.35

15 to 20

$114.50

$4.15

21 to 30

$107.50

$3.90

31 to 40

$100.50

$3.70

Surcharges: 1. $3.55/mg of sporidesmin for dose rates >0.29mg/kg weight, 2. Weights above 30 kg 94

Example 1 5 animals weighing on average 55 kg and being dosed at 0.40mg/kg weight Base charge

5 rams x $128.50

$642.50

Surcharge for weight

5 rams x 25 (Weight over 30kg) x $4.60

$575.00

Surcharge for Spdm

5 rams x 55 x 0.10 (Spdm over 0.30) x $3.55

$97.63

Total

$1,315.13

Average $ per ram

$263.00

Example 2 15 animals weighing on average 55 kg and being dosed at 0.40mg/kg weight Base charge

15 rams x $114.50

$1,717.50

Surcharge for weight

15 rams x 25 (weight over 30kg) x $4.15

$1,556.25

Surcharge for Spdm

15 rams x 55 x 0.10 (Spdm over 0.30) x $3.55

$292.88

Total

$3,566.63

Average $ per ram

$237.78

NB. Vet fees for dosing and bleeding in field are not included in these prices but Lab costs of testing for GGT are included. Bloods for GGT are collected at Day0 (Dose day) & at Day21. GGT values are forwarded to the owner’s SIL service provider by Ramguard. Ceresfarm.co.nz

Faecal Egg Counting:

Techion Group Ltd:

Laboratory Testing Service: One Test FEC Kit (includes lab test & courier bag) Five Test FEC Kit Larval Culture Fluke Culture Spore Count (Pasture or Faecal) FECPAKG2 – Online Faecal Egg Counting Unit End User Subscription (one year) Commercial Subscription/ bulk project work *All prices are GST exclusive Techion.com

$25.00 $100.00 $55.00 $25.00 $12.00 $1,750.00 $850.00 POA

Animal Health Equipment Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Drench Guns: HSW Drench-matic Genia large bore drencher Drench bottle easy drencher Plastic (manual) drencher ISL Optimiser Vaccinators: Henke Ferro-matic Intra rumen injectors Bloat: Bloat knife / sheath Trocar plastic screw Trocar - stainless Backpacks:

23ml 250ml 1.2 litre capacity

$279 $156.50 $19.90

70ml to 300ml 15ml

$83.90

5ml 300ml / 450ml

$309 $129.57 / $155.65

10cm 10mm 12 mm

$38.90 $25.95 - $29.90 $39.90

Flexipack Back Pack (complete) 5 litre

$109

$54.90

Mastitis: Mastitis Test – Draminski (electronic) Concentrate mastitis test solution

Standard / memory 1litre / 5litre 96

$699.00 / $1,095 $22.90 / $99.90

Concentrate kits

Complete

$54.90

Mastitis test paper

25 pack

$14.90

35 cm leg spacing

$69.90

Calf / hindleg / small cow / XL cow

$59.90 $79.90

Cow Hobbles: Webbing and rings

Leg Splints: BOS /Ozland ranges Rumen Magnets: 12 pack

$58.90

Bovivet introducer

70cm

$89.90

Scrotal Measuring:

Tape

$109

60 cm plastic wand

$119

Shoofdirect.co.nz

Te Pari Ltd: (Further features available for purchase) From Easy Dose Dosing Gun

$850.00

To V20 Smart Injection Gun

$1,500.00

With many variations and accessories. Tepari.com/nz/

PGG Wrightson Ltd: Calf Drencher Bovivet Mastitis Tester – Draminski Std Cpt V-Vaximate Drencher 10ml V-Vaximate Injector 10ml

$34.77 $677.39 $52.17 $35.64

Pggwrightson.co.nz

Numedic Ltd: Drenching Systems Numedic Ltd: Drenching Systems

Complete Systems: Unmetered drenching system – complete kit includes 140 litre tank, pump, filter, timer, 2 handguns, 30m of 20mm hose, 25m of 8mm hose, cable ties, cup hooks, masonry anchors and instruction booklet Deluxe metered drenching system – includes above system plus metering head with separate bloat oil injection unit, regulators, gauges, air hose, air compressor, 2 litre reservoir, and low pressure 50 litre bloat oil tank Upgrade Kits – to upgrade unmetered to deluxe metered

$3,840.0 0

$7350.00 $3,265.00

Accessories: Teat Spray 50 litre tank, regulator, gauge, hose etc (no gun)

$825.00

Teat Spray gun

$95.00

In-Line filter kit – boosts performance of older drench systems

$199.10

Numedic hand gun

$215.00

- Standard Nozzle / Hooked Nozzle

24 hour mixing timer

$35.50

Air compressor – 2.5hp

$750.00

Numedic.co.nz

Drench Gun Services Ltd: Metal Injectors: 1 ml / 2 ml Automatic Injector

$136.60

5 ml Automatic Injector

$157.09

5 ml / 10 ml Automatic Vaxmaster Injector

$159.21

25 ml / 50 ml Repeater Injector

$148.27

1 ml / 2 ml / 5 ml automatic injector with bottle attachment

$176.35

Metal Drenchers: 10 ml Lamb Drencher

$131.13

30 ml Automatic Sheep Drencher

$209.76

60 ml Cattle Drencher Automatic

$222.39

Plastic Drenchers and Injectors: 1 ml / 3 ml / 5 ml / 10 ml Plastic Injector

$30.04

12.5 ml Drencher/Injector

$108.25

25 ml / 50 ml Repeater Injector

$115.13

20 ml Plastic Repairable Drencher

$116.95

30 ml / 60 ml Plastic Repairable Drencher

$123.14

25 ml Plastic Drencher

$61.36

30 ml / 60 ml / 150 ml Plastic Non-automatic Drencher Pour-on Applicators

$127.62 / $127.62/ $197.41

30 ml XP30 X-Stream Plastic Repairable Pour-on

$66.40

60 ml Plastic Automatic Pour-on

$83.12

Accessories: Floating Hook 5 ltr Hard-sided Backpack 5 litre Collapsible Backpack

$118.08 $50.69 $33.55

Gst exclusive. For calving and lambing equipment see Section 2.3.15 (Stock Management) Drenchgun.co.nz

Dog Expenses

Dog Registration Fees These vary depending on the Local Body involved. Fees for pups depend on age. Prices include GST. Examples of some Local Body fees are:

Buller District Council Entire/Desexed - Responsible owner Entire/Desexed - working

$87.50/ 67.50 $65.50/$50.50

Bullerdc.govt.nz Christchurch City Council Urban/second and subsequent dogs Rural/

$59.00/ $41.00 $29.00/$24.00

ccc.govt.nz Gore District Council Rural Dog/Impoundment in last two years Urban dog / Urban de-sexed and fenced (or controlled property)

$25.00/+$20 $120.00/-$40/20

Goredc.govt.nz

Hastings District Council Rural Dogs – full fee Urban Dogs – full fee

$60.00 $124.00

Hastingsdc.govt.nz Kaikoura District Council Desexed Working dog (less than three) Three or more working dogs Kaikoura.govt.nz

$80.00 $60.00 $160.00

Marlborough District Council Non-working /Responsible/old dog Working dog / Property Licence – ( each additional dog Marlborough.govt.nz

$92 / $62/$46 $22 /$11

New Plymouth District Council Non select owner Select owner/ neutered

$163.50 $130 / $85

Rural First two dogs/ third and susequent

$60 ea / $30 ea

Npdc.govt.nz South Taranaki District Council 100

Rural dogs (first 2 dogs) 3rd and subsequent dogs Urban dogs / de-sexed dogs Southtaranaki.com

$68 ea / $57 ea $175/$150

Other Districts: Working/Rural Dogs (rebates are often available on desexed dogs and for second or subsequent dogs) Selwyn plus $10 admin fee $35.00 Tararua rural working $78.00 Tasman - urban/rural

$53.00/$32.00

Waimate - urban/rural Whangarei – urban/rural

$100/$33.00 $108/$69.00

101

Breeding Expenses

The average or range for each region is as follows: Dairy 2021/22 (per cow) National $55.00

(per kg MS) $0.15

Source: DairyNZ Economic Survey. Heat Detection

Livestock Improvement Corporation: LIC Bulls-i® Protrack Heat Patch $ / detector $ / detector 1-999 $2.05 $2.95 1,000 – 2,999 $1.95 $2.85 3,000 – 5,999 $1.80 $2.70 6000 - 9999 $1.55 $2.45 10,000+ $1.40 $2.30 Urgent dispatch fee of $35 and cancellation fee of $110 apply. Lic.co.nz KAMAR® Heatmount® Classic (pkts Peel ‘n Glue (pkts 20 or 80) Detectors of 25 or 100) $ / detector $ / detector 1-999 $2.65 $2.80 100 – 2,999 $2.55 $2.70 3,000 – 5,999 $2.40 $2.55 6000 – 9,999 $2.15 $2.30 10,000+ $2.00 $2.15 Urgent dispatch and cancellation fees apply.

Lic.co.nz

PGG: indicative retail pricing only Flashmate 96 pack

$929

Flashmate 24 pack

$249

Pggwrightson.co.nz

102

Artificial Breeding (Dairy Cows):

Livestock Improvement Corporation: Nominated Semen Options – AB Technician Service Insemination fees for nominated semen are $8.05 per insemination for up to and including 300 inseminations, then $7.75 from 301 to 600 inseminations, and $7.40 from 601 upwards. DIY training $899 for a five-day course. One day refresher course is $300.00. Leasing of deep freeze banks subject to availability; contact LIC rep for more information. Semen dispatch fees for LIC semen: DIY clients will be charged a dispatch fee of $33.50 per order. These fees are charged directly to the client. Transfer fee (handling fee) of $33.50 per order for semen in storage that is transferred from one participant code to another. Premier Sires AB Technician Service $/insemination

DIY Operators $/straw

Daughter proven

Forward Pck

Genomically Selected

SGL Dairy

1 to 100

$26.35

$29.35

101- 200

$25.85

$28.85

201 - 300

$25.35

$28.35

301 - 400

$24.75

$27.75

401 - 500

$24.15

$27.15

501 - 600

$23.55

$26.55

601 - 700

$22.95

$25.95

701 - 800

$22.35

$25.35

801 - 900

$21.75

$24.75

901- 1000

$21.15

$24.15

1001- 1100

$20.55

$23.55

1101 - 2000

$19.90

$22.90

103

2001 5000

$19.05

$22.05

5000 plus

$18.80

$21.80

Charges are based on one hundred inseminations (or part of) depending on the number of inseminations to Premier Sires. For example, 320 cows, Daughter Proven Premier Sires AB Technician Service inseminations you would be charged $8250 as follows: 1st 100 inseminations @ $23.65

$2635

2nd 100 inseminations @ $25.85

$2,585

3rd 100 inseminations @ $25.35

$2,535

20 inseminations @ $24.75

$495

Total: 320 inseminations

$8,250

Average cost per insemination for 320 cows: $25.78. Lic.co.nz

Cattle Embryo Transfer Fees:

Embryo Co: 1. Flush Price Per Donor Cow For 4 or more Donors in a programme For 3 Donors in a programme For 2 Donors in a Programme For 1 Donor in a programme

(Take off $50 for In-Centre Collections) $365 per donor FSH plus $ 350 per donor flush $365 per donor FSH plus $ 400 per donor flush $365 per donor FSH plus $ 450 per donor flush $365 per donor FSH plus $ 500 per donor flush

2. Fee per Embryo transferred 3. Freezing and thawing To freeze each embryo (NZ use): Surgical Transfers add $30 (on-centre only) Thawing and transfer per embryo: 1 to 9 Embryos: Above 10: Up to 15: Quick Thaw embryos: Up to 15: Above 15:

104

$ 100.00 $50.00 $120.00 Surgical transfers $100.00 $100.00 centre only) $100.00 $80.00

4. Recipients are provided for transfer of frozen embryos. This is routinely performed surgically on our centre: Currently $2200 per 60 day pregnant recipient, plus $48 per embryo transferred for synchronisation costs. Note that we do not accept frozen IVF embryos for transfer. 5. Other: The above prices do not include synchronisation drugs etc for the donor & recipient cattle, GST, travel, mileage, or, where necessary, accommodation & meals. Mileage is charged per kilometre at: $0.83 Mileage is charged at 83 cents/km. Donor cows should be examined by your vet prior to commencing the programme. If EmbryoCo does the examination a visit fee of $40 plus $10 per donor will be charged (plus mileage). Embryoco.com Bull Semen Collection:

Xcell Breeding Services Ltd. Frozen semen collection and processing: On farm unlicensed mileage at $1.00 per km plus $6.00 per straw On centre licensed 200 to 250 straws (per straw) $4.00 251 to 500 straws (per straw) $3.50 501 to 1000 straws (per straw) $3.00 1000 plus straws (per straw) POA. Grazing at $10.00 / head / day is also charged. Health testing / Diagnostics at $450 per bull. Deer Reproduction:

Xcell Breeding Services Ltd: (Travel costs are also charged) Frozen semen collection and processing:

Per straw

0 to 100 straws (per straw)

$12.00

101 to 500 straws (per straw)

$12.00

501 and over (per straw)

$12.00

Early postmortem sperm recovery from testicles (per straw)

$12.00

Elk and Red deer trans-cervical AI:

$/hind

Prices do not include synchronization or travel costs/hind. Under 10 hinds

$25 105

11 to 25

$22

26 to 50

$18

51 to 100

$14

101 plus

$12 (per hind)

Deer Reproduction Services: these are data, 2016/17 season, no current data was available. Embryo Transfer fees - These fees do not include any costs related to artificial insemination 1 to 2 donors $1,050 each 3 to 5 donors

$950 each

6 to 10 donors

$800 each

11 to 20 donors

$700 each

Recipient Fees

Drugs, programming, and surgery

Freezing embryos

- local use

$160 each $35 per embryo ($100 minimum)

- international export

$50 per embryo

Prices do not include: travel, accommodation, the additional Labour required for the programme, the consultancies relating to the setting up of the programme or any costs relating to AI. Thawing embryos

$/embryo

Less than 10 embryos

$50

11 to 15 embryos

$25

16 plus embryos

$20

Deer Pregnancy Test

$3.31 per head when over 100 are tested $3.91 for less than 100 animals

This is for rectal ultrasound scanning. Technician cost on top charged at $80/hour.

106

Sheep / Goat Reproduction: Xcell Breeding Services Ltd: Frozen semen collection and processing: On centre projects New Zealand straws only

$10.00 per straw

Export Australia straws

$12.00 per straw

Other countries

$12.00 per straw

Grazing at $7.00 per head per day is also charged. Export projects may carry special charges – apply for details. Xcell.co.nz

Sire Purchases

Sheep Rams The following are approximate values for flock rams: (Use as a guide only) Dorset Down $800 to $1,200 Corriedale $800 to $1,200 Polled Dorset $800 to $1,200 South Dorset Down $800 to $1,200 Perendale $800 to $1,400 South Suffolk $800 to $1,200 Border Leicester $700 to $1,200 Suffolk $800 to $1,200 Borderdale $600 to $1,000 Romney $800 to $1,800 Coopworth $800 to $1,400 Merino $1,000 to $2,000 Dohne

$800 to $1,500

Halfbred

$800 to $1,200

Hampshire

$800 to $1,500

Beltex/Suffolk

$800 to $1,200

Texek/Beltex

$600 to $1,100

Cheviot/Beltex

$800

107

Exotic Breeds: The following are approximate values for flock rams: Range Texel Purebred

$800 to $1,500

East Friesian Purebred

$600 to $1,000

East Friesian ½ bred

$600 to $900

Finnish Landrace ½ bred

$600 to $900

Kelso Maternal

$800 to $1,600

Kelso Ranger

$800 to $1,400

Rissington Primera

$1,100

Highlander

$1,100

Wiltshire

$1,200 to $2000

Beef Cattle Bulls – Beef bulls vary greatly in price depending on breed, qualities desired, etc. Breeding Bulls at auctions Angus Hereford Charolais Simmental Beef Shorthorn Stabilizer Murray Grey South Devon

$5,000 to $20,000 $5,000 to $15,000 $6,000 to $16,000 $5,000 to $12,000 $5,000 to $12,000 $4,000 to $8,000 $5,000 to $8,000 $5,000 to $8,000

Deer: Stags The average price ranges for velvet stags from $5,000 to $10,000 plus. Venison stags prices ranges $3,500 to $8,000. Pggwrightson.co.nz

108

Herd Testing Charges

Livestock Improvement Corporation Herd Testing fees include a service fee plus a per sample fee as detailed below Classic Test Service Fee Sample Fee st 1 herd test $460.00 $2.75 nd 2 herd test $460.00 $2.75 rd 3 herd Test $285.00 $2.75 th 4 and subsequent tests $185.00 $2.75 Single Test 1 herd test 2nd herd test 3rd herd Test 4th and subsequent tests Lic.co.nz st

Service Fee $460.00 $460.00 $285.00 $185.00

109

Sample Fee $2.55 $2.55 $2.55 $2.55

Dairy Shed Expenses

Average total dairy shed expenses Dairy shed budget figures should ideally be based on farmer estimates and past records of farm expenditure. Where such information is not available, the following figures may serve as a guide for budgeting purposes. These do not include animal health or electricity (per cow) (per kg MS) Northland $0.06 Waikato $0.05 Bay of Plenty $0.05 Taranaki $0.06 Lower North Is $0.07 West Coast - Tasman $0.06 Marlborough - Canterbury $0.04 Otago - Southland $0.04 National

$25

$0.06

Source: DairyNZ Economic Survey 20/21 Detergents and Sanitizers

Agmax Industries Ltd: ($35 freight fee for all orders under $250) Dairy hygiene products: Alkali sachets powder 100/150/250g Acid sachets powder

20 kg bag 20kg barrel 20 kg bag 20kg barrel 20 / 100 / 200 litre 20 / 100 / 200 litre 20 / 100 litre

$156.52 $165.22 $146.09 $154.78 $111.30 / $342.61/ $586.09 $133.04/ $580/$993.04 $117.39 / $440.87

Vat Cleaner

20 / 100/200 litre 5 / 20kg

$86.09 / $391.30/$686.96 $86.96 / $215.65

V-Cide Disinfectant

1kg / 2kg / 4kg

$66.96 /$125.22 / $219.13

Works acid detergent-sanitiser Maximum acid detergent-sanitiser Multiwash 900 liquid chlorinated alkali Agmax chlorine

Agmax.co.nz

110

AnQuip NZ Ltd: Topfoam LC Alk

22kg

$295.00

F10SC5L and XD5L Disinfectant 1:250

$492.00

Anquip.co.nz airy Ointments, Soaps and Teat Sprays

Agmax Industries Ltd: ($35 freight fee for all orders under $250) Teatspray products: Teatsweet (sachet packaged)

5 / 12 kg

$386.96 / $857.39

Iodine teatspray

20 / 100 / 200 litre

$329.57 /$1303.48 /$2216.52

Chlorhexidine Teatspray

20 / 100 / 200 litre

$199.13 / $781.74/$1,295.65

Titivate emollient

20 / 100 / 200 litre

$135.65 / $646.96 / $1037.39

Sorbitol emollient

20 /100 /200 litre

$122.61 / $531.30 / $833.91

Glycerine

20 / 100 / 200 litre

$152.17 /$729.57 /$1116.52

Emollient products:

Agmax.co.nz

Bell-Booth Ltd: Hygiene Products Pack Size Work Soap

500ml pump / 1 litre / 5 litre

Pit Mitt

One size

Price $10.20 / $14.50 / $62.50 $17.30

Bell-booth.co.nz

111

Dairy Shed Equipment

Agmax Industries Ltd: (+ freight) Drum pump standard

$135.65

Drum pump purchased with Agmax product Agmax.co.nz

with any 100 / 200 litre

$126.96 / $118.26

Plastic Disposable Overboot

50 per pack (25 pairs)

$26.95

Disposable Shoulder Glove

100 pcs per box

$22.50

AnQuip NZ Ltd:

Anquip.co.nz

GEA NZ (Milfos): Milfos Blower vac. pumps Milfos Milfos Milfos Milfos IC330 Milfos air tube Milfos twin tube

2,600 litre to 10,400 litre 10 series 20 series 50 series

$7,280 - $16,359 ea $7.66 ea $7.66 ea $7.66 $311 $15.74

9.5ID x 1220 MM L 7mm ID X 25M Roll $280.83

Milfos milk tube

1220mm – 20m (16mm / 19mm)

Milfos claw tube Suction tube Milfos milk pump Milk pump controllers Milk filter (each)

165mm / 190mm 22.2mm to 28.6mm 0.75 to 1.5kW Intelflow/intelcentre

$328.14/$404.12 $3.36 / $3.60 $203.20 - $264.10 $3,492 to $8,768 $6,337.30- $11,325.20 $3,556 - $8,010

GEA NZ (Milfos): cont Filter sleeve (per 100) Filter sock (per 100) Milk cooler Receiver Test buckets Jetter Washline injector

Single Bank (18 to 104 plate) Industrial Double 13,000L/hr Generic HB R3C Can Asy 600 x 13 Plastic Hyjet Rotary/Herringbone iNTELJET 2 150mm system

Gea.com/newzealand

112

$67.76 - $159.68 $85.55 - $167.75 $5,347 - $8,108 $7,496 - $11,669 $3,210 $440 $167.40/ $160.20 $2,822

PGG Wrightson: Aqua Dairy Aprons

Light Shedline to Heavy Shedline

Aqua Dairy Overtrousers

$35.64 $119

Aqua Dairy Jacket Gumboots

Red Band to Tay Muckmaster

Gloves

Milking

Dairy Floating Thermometer Pggwrightson.co.nz

Caged / Housed

$199 $85 - $190 $18.99 $20- $24

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Milking Apron / Gown Lightweight

$43.40

Teat sprayer compact

$30.34

Teat sprayers short and long Teat sprayer short / long nozzle (Viton) Airline sprayer(Compressed air teat sprayer) Teat dip cups – nonreturn Quartermilker complete Kick stop - Adjustable Shoofdirect.co.nz

1 litre

8 litre

113

$12.95 / $14.69 $24.26/ $26.00 $86.00 $11.22 $82.52 $129.56

Dairy shed wash down pumps Dairy Blaster range Model

kW 4.0 5.5 7.5 Dairy shed vat wash 3 phase VW5

Pressure

litres per minute

Price $4,039.80 $4,321.23 $4,990.26

36psi

120

$866

V W 10

1.04

30psi

135

$915

V W 15

1.09

22psi

200

$1,064

43South: ONGA Hi Flow Cast Iron Centrifugal Pumps Model 182 1 1500W 50psi Phase 183 1 2400W 59psi Phase 184 1 3800W 71psi Phase 185 3 6000W 77psi Phase Dairy Shed In-Place Cleaning Stainless Steel Centrifugal Pumps Model 1ph 1.1KW SSS2102 Model 1ph 1.5KW SSS2103 43South: Southern Cross Wash Down Model 80x50-200 11 kw 65x40-200 65x40-200

240v

$2,283.60

240v

$3,052.50

415v

$3,843.40

415v

$4,039.80

$856.50 $906.99

11 kw 7.5kw

415v

$6,066.07

415v 415v

$5,986.49 $5,187.84

Typically, ex-stock for boxed products and 1-2 working weeks for assembled products. 43south.co.nz

114

Annual Certification NZCP2: Code of Practice for the Assessment of Farm Dairies sets out the minimum procedures and performance criteria standards applicable to Farm Dairy Assessment Systems. Adoption of this code will enable Farm Dairy RMP Operators to satisfy the requirements set out in DPC2: Animal Products (Dairy) Approved Criteria for Farm Dairies and to confirm that Farm Dairy Operators are operating in accordance with the requirements of the registered Risk Management Programme (RMP) under which the farm dairy operates All farm dairies supplying milk for manufacture are required to be assessed each season against company and MPI requirements. All NZ farm dairies producing milk for export must be covered by a Risk Management Programme (RMP) approved by the Ministry for Primary Industry (MPI). This RMP will include an annual Farm Dairy Assessment. The Dairy Company normally covers annual assessment costs to ensure the dairy meets regulatory quality management requirements. For farms not meeting the required standard a revisit may be required to confirm compliance, which may be charged to the farmer,a fee could range between $450 and $750. For farms with milk quality issues, (e.g. Inhibitory substance detections, continued bacterial grading, high average Somatic Cell Count, residue grading) traceback visit costs range from $450 to $3,500 depending on the quality issue and complexity of resolution. In some of cases these milk quality traceback costs are recoverable through the Demerit Relief System. https://www.mpi.govt.nz/dmsdocument/46249/direct

115

Calf Rearing

Cost of Calf Rearing (Source Dairy Systems Group, Massey University, ) Feed Costs for Friesian (40 kg) calves over first 10 weeks of life, costs of meal are the time of editing, show a large variation, it is essential to search for the most recent price indications prefer establishing a calf reaing system. Restricted Milk and Pasture Daily gain over 10 weeks – 0.5 kg per day Live weight at 10 weeks – 75 kg Whole milk:

5 litres per day for 70 days

Pasture:

0.4 kg DM per day for 70 days

350 litres @ 53¢

$280.90

28 kg @ 20¢

$5.60 $286.50

210 litres @ 53¢

$111.30

Early Weaning Daily gain over 10 weeks – 0.75 kg per day Live weight at 10 weeks – 90 kg Whole milk:

5 litres per day for 42 days

Calf Meal (18% CP):

0.75 kg per day for 70 days

56 kg @ 75¢

$42.00

Pasture:

0.4 kg DM per day for 70 days 28 kg @ 20¢

$5.60 $158.90

Ad Lib Milk Daily gain over 10 weeks – 1.0 kg per day Live weight at 10 weeks – 110 kg Whole milk: Calf Meal (18% CP): Pasture:

8 litres per day for 42 days

336 litres @ 53¢

$178.08

0.8 kg per day for 25 days

20 kg @ 75¢

$15.00

2 kg DM per day for 28 days

56 kg @ 20¢

$11.20 $204.28

High protein meal/straw Daily gain over 10 weeks – 1.0 kg per day Live weight at 10 weeks – 100 kg Whole milk:

2 litres per day for 35 days

70 litres @ 53¢

$26.20

Milk powder:

250 g per day for 35 days

8.75 kg @ $5.00

$43.75

125 kg @ 85¢

$106.25

1 bale @ $5.00

$5.00 $192.10

High Protein Calf Meal (20% CP): Straw:

Ad lib

116

Feeding Equipment

Tokoroa Engineering Ltd: Feed Trailers Premium 4m Meal Feeder

$3,6847

Premium 6m Meal Feeder

$5104

Replacement 6m Meal Feeder -

$1500

Quick Hitch 6m Meal Feeder

$6135

Replacement 4m Meal Feeder

$880

Draw bar 4m Meal Feeder

$2845

Milk Bar Mobile (Single Axle no suspension) Milk Bar – 50 / 60 Classic 500L

$3,477.39 / *$4,018.35

Deluxe Range (Springs and levelling) Milk Bar – 40 Deluxe Single Axle 500L

$3956

Milk Bar – 50 Deluxe Tandem Axle 500L

$5996

Milk Bar – 60 Deluxe Single 500L

$4817

Milk Bar – 60 Tandem Axle 500L Milk Bar – 100 Deluxe 3 Axle 1,100L

$6325 $10108

Milk mixer 550L 2” Poly pump

$6765

Calf Trailer

$3866

Calf Trailer

$7164

117

McInnes Manufacturing Ltd: Milk Feeders Milk Bar Teat

$5.00

Milk Bar Colostrum Teat

$6.39

Milk Bar Trainer Bottle

$34.77

Milk Bar 6

$152.17

Milk Bar compartment 10 spaces

$313

Milk Bar Kart 125L no pump/battery/whisk -deluxe incl pump/battery Milk Bar teat tool

$1,996.48 $165.17

Meal – Pellet Feeders: Braden Start Nipple

$10.87

Braden Start Bottle

$52.13

Snack Bar

$60.83

Munch Trough

$113

Bird Proof Meal Bar

$347.82

Waterers and accessories: Snack Water Trough

$100.83

Calf Pen Waterer

$128.26

Float Valve

$8.65

Dispenser – Single

$868.73

Dispenser – Tandem

$1,434.78

118

Calves: Weigh Tape

Calf size to horse, imperial

$13.00

Calf Feeders

Milk Train 2-place

$59.95

Speedy Feeder

$24.95

Rail Bucket 6-place

$120.87

M1 feeder (wall / rail mounted)

$44.95

Colostrometer

Milk tester Kruuse

$89.95

Meal Start Feeder

Fill bottle for pellets/meal/grains etc

Teats

Soda bottle (calf)

$55 Each $5.70

Electric Milk Warmer

Super heat digital

$899

Milk Powder Whisk

60 cm

$45

Milk Powder Mixer Milk Powder Plunger

$60 Varieties

$49.95

Calf Feeder Tubing 30m

$55.95

Calf Feeder Tube Stop-Valve 10 pack

$10.95

Calf Feeder Milk Maid 5 Teat 25 litre

$143.48

Calfeteria 12 T 80 litre

$225.22

Calf Feeder 16 Teat compartment

$277.39

MF50s Calf Feeder 50 Teat non-compartment, 450 litre

$4,138.26

Calf Teat, Excal Fast Flow

each $2.86

Calf Pen Meal Trough 16 litre

$65.21

119

Other Calf Rearing Equipment

Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Debudders

Butane Express Pistol Set

$416.70

Express LPG

$312.35

Electric other models

$180.17

Barnes Dehorner

32cm economy / quality 42cm economy / quality

$33.00 / $129.57 $39.09 / $173.04

Debudding Paste

Hornex 20 g tube

$13.00

Calf neck bands

10 pack various colours

$8.97

Calf mothering double collar

$41.67

Calf handling rope

$10.37

Calf leads (nylon or leather)

$12.45 - $14.54

Calf collar leather

$15.93

Buckets Galvanised Bucket 11 litre

$41.67

Shoofdirect.co.nz

120

Feed and Nutrition Milk Replacers

Bell-Booth Ltd: Calf Nutrition and Probiotic Queen of Calves (Finisher)

20kg

$174.00

Rearing to go mixing system

$2,000.00

Queen of Calves (Starter)

20kg

$349.00

Bell-booth.co.nz

PGG Wrightson Ltd: Anlamb

5 / 10 / 20kg

Ancalf CMR

20kg

$65 / $90 / $125 $115

Pggwrightson.co.nz

Mineral / Nutritional Supplements

Agrifeeds trading as 4Seasons Molasses Ltd: North Island

South Island

Molasses - feedgrade

per tonne

$295

Rumol 300

per tonne

$355

$360

Rumol 600

per tonne

$385

Rumag 300

per tonne

$405

Rumag 600

per tonne

$435

Himag

per tonne

$425

$435

Calcimol

per tonne

$375

$370

Zinmol

per tonne

$440

N/A

121

Agritrade Ltd/PGG: Magnesium sulphate

500ml

$19.12

Sodium Bicarbonate

25 kg

$29.56

Calcium chloride flakes

25 kg

$22.60

Hyfat Prill

25 kg

$56.52

RumenX Calf Feed

15kg

$73.90

Magnesium chloride prills

25 kg

$23.47

Magnesium chloride flakes

25 kg

$15.00

Mono Prop Glycol

20 lit

$138.26

Grapple

5 lit / 10 lit/20 lit

$120.87 / $225.22/$399.13

Pggwrightson.co.nz

Agmax Industries Ltd: ($35 freight fee for all orders under $250) Stockfood Supplement Megastart

20 litre /100 lit /200 L 16kg

$118.26 / $377.39 / $593.04 $160.87

Agmax.co.nz

Bell-Booth Ltd: Nutrimol Nutrimol 4n1 Nutrimol Colostrum Keeper

5 litre / 20 litre / 100 litre / 200 litre

$33.50 / $88.00 / $421.00 / $725.00

Nutrimol Classic (60 minerals)

1 L / 5 L / 20 L / 100 L / 200 L

$17.80 / $64.50 / $227 / $905.00 / $1,932.00

Dosatron inline water dispensers

Caramillo Masking & Flavouring Agent

Model D3RE2

$1,576.00

Model D9WL2

$3,245.00

Model D20,000

$6,180.00

5 litre / 20 l / 200 l

$69.40 / $223.40 / $1,922.00

122

Trace Elements (drench or dose stock water)

Pack size

each

IntenSE Calcium

20 / 200 litre

$94.50 / $599.00

IntenSE Cobalt

20 / 200 litre

$195.00 / $1,540.00

IntenSE Copper

20 / 200 litre

$203.00 / $1,547.00

IntenSE Iodine

20 / 200 litre

$443.00 / $3,625.00

IntenSE Magnesium Sulphate

200 / 1,000 litre

$722.00 / $2,835.00

IntenSE Magnesium Chloride

200 / 1,000 litre

$1,006.50 / $3,837.00

IntenSE Selenium 5

20 / 200 litre

$141.50 / $965.00

IntenSE Copper Chelate

20 / 200 litre

$336.00 / $2,940.00

IntenSE Zinc Chelate

20 / 200 litre

$259.00/ $2,215.00

Cider vinegar (organic)

$84.00

Cider vinegar + garlic (organic)

$84.00

Bell-booth.co.nz

ACV Health Products: Organic products

PGG Wrightson Ltd: Summit Dairy Amaize 25kg

$19

Summit Dairy Magnesium Mix 25kg

$24.34

Cattle Young Stock Block + Rumensin 25kg

$85

Cattle Mineral Block 25kg

$75

Max Block Forage 22.5kg

$80

Pggwrightson.co.nz

123

Livestock Supplies (N.Z.) Ltd: Bentonite - Granular / Trubond (fine)

$0.69 / kg

Bicarbonate of Soda

$2.00 / kg

Calcium chloride

$1.50 / kg

Copra meal

$1.60 / kg

Dextrose

$3.60 / kg

Dicalcium phosphate

$1.40 / kg

Garlic powder

$9.50 / kg

Manganese Sulphate (feed)

$2.35 / kg

Molasses - Liquid (over 100kg costs $0.40 / kg)

$0.70 / kg

Mono Propylene Glycol

$9.00 / kg

Seaweed – Meal

$6.00 / kg

Vitamin A 500,000 iu/g

$160.00 / kg

Vitamin D3 500,000 iu/g

$160.00 / kg

Vitamin E 500 iu/gm

$92.00 / kg

Bio Start – Ruminant Calf

$36.00 / ltr

Dairy Cow Minerals Pro

2,000 doses

Lugals Iodine

per litre

Magnesium Oxide Lime Flour

$80.00 per bag $29.00 $0.80 / kg

1 kg

$0.34 / kg

124

Salt

Farmsourse: Rock Salt Aa grade

25 kg

$44.99

Agsalt Coarse / Fine

20 kg

$14.99

20 kg 20 kg 20 kg 20 kg 20 kg 20 kg 20 kg 25kg per kg 20kg 20kg 20kg 20kg 20kg

$22.00 $30.00 $26.00 $25.00 $25.00 $28.00 $30.00 $20.00 $0.55 $30.00 $29.00 $30.00 $34.00 $45.00

Livestock Supplies (N.Z.) Ltd: Cattle Salt Block Organic Salt Block High Mineral Salt Block High Country Salt Block High Mineral Lick Pro Min Lick Organic Lick Rock Salt Salt – Course Pro Min Lick + Magnesium Pro Min Lick + Iodine Young Stock Lick DCP Lick Magphos Lick Livestocksupplies.co.nz

PGG Wrightson Ltd: Product Summit Copper Cattle Salt Block 20kg Summit Magnesium Salt Block 20kg Summit Multi Mineral Salt Block 20kg

Price per unit $33 $33 $29

Pggwrightson.co.nz

125

Concentrates Meal / Crumble / Pellet / Nut Dairy and Calf Feeds

PGG Wrightson Ltd: Product (Dairy) NRM Multifeed Nuts Gusto 50/50 Calves Ready Rumen Grow Up 20% Pellets Calf Grow 16% Pellets (SI only) Reliance Calf Pellets 16% Pggwrightson.co.nz

20 kg 25 kg

Price per unit $32 $21.73

25kg 20kg 20kg 25kg

$29 $36 $19.99 $36

Dog Feeds

PGG Wrightson Ltd: Tux Energy

25 kg

$119

Pggwrightson.co.nz

Pig Rations

PGG Wrightson Ltd: NRM Big Pig Nuts

$38

Barnyard Pig Choice Pellets

$37

126

Horse Feeds

PGG Wrightson Ltd: Sweetfeed NRM

20 kg

$34

NRM Horse Coolade

20 kg

$39

NRM Mare Balancer Nuts

20 kg

$39

NRM Prepare

20 kg

$43

NRM Assett

20 kg

$43

Fisken Horse Balancer

25 kg

$45

Broodmare Mix

25 kg

$46

NRM Run Free

20 kg

$33

Advance Sport Horse

25 kg

$45

Horse Mineral + Garlic Block

15 kg

$80

Horsefeed + Mycotex Block

15 kg

$38.25

Pggwrighton.co.nz

Poultry Feeds and Premixes

PGG Wrightson Ltd: Product

Quantity kg

Chick Starter Crumble

10 / 25

Price per unit $26 / $44

Pullet Grower

$41

NRM Meatbird Crumble

$46

Barnyard Layer Mash

$35

Barnyard Layer Pellets

10 / 25

Peck n Lay Gold Pellets

$24

Peck n Lay Poultry Pellets

$35

Pggwrightson.co.nz

127

$20 / $34

Deer / Sheep / Beef / Alpaca and Goat Feeds PGG Wrightson Ltd: Product Weight/Style

Price per unit

NRM Multifeed Nuts

20 kg

$32

NRM Sheep Nuts

20kg

$31

Max Block Lamber

22.5kg

$90

Country Harvest Alpaca Pellets

25 kg

$55

Pggwrightson.co.nz Feed Grains

PGG Wrightson Ltd: Product

Quantity kg

Price per unit

Gusto Whole Wheat / Barley

$33 / $37

Kibbled Maize Feed

$31

Oats, Greenfeed White

$95

32 polyprop bag

$44

Oaten Chaff

Rabbit Feeds

PGG Wrightson Ltd: NRM Rabbit Pellets Plus Cyco

10 kg / 20kg

$27/ $43

Barnyard Rabbit Pellets

10 kg

$22

Country Harvest

25 kg

$39.12

Pggwrightson.co.nz

128

Protein Prices by Type and Region Protein Type

North Island ($ per tonne)

South Island ($ per tonne)

Meat and Bone

$1,115 to $1,130

$1,115 to $1,290

Blood Meal

$1,575 to $1,783

Fishmeal Skim Milk Blend

$1,575 to $1,770 $2,975 $3,000

Extra Soya Meal Full Fat Soya

$1,030 n/a

$1,100 n/a

Soya Oil (full refined) Tallow

$4,807 $2,278 to $2,526

Lysine (per kg)

$2,250 $2,250 to $2,278 $5.20

Methionine (per kg)

$10.00

$5.10 to $5.40

$3,646 $2,500

$2.93 to $3.15

Source: Pork Outlook, July 2023. Nzpork.co.nz Hay and Straw Price depends on area, season and quality. Listed are a few indicative prices, more specific detail refer 2022/23 prices. https://feedfinder.nz/ Type Hay:

Straw:

Baleage:

Silage

Large Round or Med Square $90 $95 $95 $50 $60 $50 $120 $90 $80

Meadow Clover Mix Lucerne Ryegrass (Italian) Barley Wheat Lucerne Meadow / Clover Cereal Barley Lucerne Rye & red Clover Rye/clover/cocksfoot Rye/clover/plaintain Barley Barley 129

600kg est

$110 $90 $78 $105 $108.004 $120.005

Grazing Fees The problem with ‘grazing’ is that it has been difficult to quantify the amount of feed (and other service such as husbandry) that is actually being sold and purchased. Consequently the cost of contract grazing-off is increasingly being compared to other feeds on a common basis, usually using kilograms of Dry Matter (kg DM), but often further calculated into Metabolisable Energy units (ME). The industry recommendation is for dairy heifers to be fully grown before herd entry (eg 90% of mature size at 22 months of age). Dairy Statistics indicate that the actual liveweight of dairy heifers at herd entry are significantly less and this impairs the productive performance of these young animals. The Dairy Support industry is endeavoring to raise awareness of the problems caused by low live weigh replacements and recently LIC has introduced MINDA Weights to help their clients to calculate and monitor live weights achieved. DairyNZ is actively assisting a broad range of interested parties to collaborate and achieve improved results across the industry. It is more important to focus on 'value for money' when purchasing 'grazing' (heifer growing) as compared to absolute price when seeking to achieve more profitable herd cows.

DairyNZ has calculated the quantity of feed that dairy replacements need to reach recommended targets. refer to their site https://www.dairynz.co.nz/animal/heifers/contract-grazing/

for

details:

For example, a typical Friesian / Jersey cross dairy replacement (mature 450kg) should consume about 3,760 kg DM to achieve its 22-month (1st June) liveweight of 405 kg. According to DairyNZ the healthier the animal when it leaves the grower, the more profitable when it comes back on farm - working on some "average costs": Indicator Grazing costs as follows: • December to May (17 months) grazing animals exiting at 515kg - $961 (or $12.48 per week) - other costs - mating Vet Fees, Vet fees $65.15 each (.85c per week): • Grazing costs for December to May (17 months) grazing animals exiting at 450kg $842 (or $10.93 per week) - other costs - mating Vet Fees, Vet fees $54.80 (.70c per week) • Grazing costs for January to May (16 months) grazing animals exiting at 425kg - $726 (or $9.94 per week) - other costs - mating Vet Fees, Vet fees $48 (.65c per week) In this instance the question is not what it costs, but rather what you get for your investment – a well based system encourages positive growth, and intelligent farmers are prepared to pay for this. The above comments relate to pre-arranged term grazing contracts. Spot or short-term grazing prices are very dependent on feed availability at the time of the quote. Depending 130

on supply and demand, may vary upward considerably in the event of droughts, flooding, severe cold periods and the like. Husbandry and management of the animals are usually included in the price at no charge, but may be negotiated separately. Farmers who are better organised tend to get better prices. Dairy Cattle Payment for grazing varies according to the class and age of livestock, the time of year, seasonal conditions and the district. DairyNZ has been campaigning for better grown replacement heifers and better winter feeding for cows. DNZ’s “Minda Weights” programme will set objective target weights on which to base feed allowances and adjust grazing rates by feed intake. When comparing grazing arrangements any additional costs of bulls, freight, animal health, weighing and management need to be identified. Indicator Rates for 2022/23 were approximately: Within season variations can be large, depending on available feed supplies, the following are guides: Calves Calves (weaning to May). North Island

May to May

Canterbury

$6.50 - $13.50 / head / week.

Heifers Yearling heifers (May to May). North Island Canterbury

$12/head/week

May to May

$14/ head /week

$13.50- $18.0 / wk flat depending on breed and target weight. In calf heifers wintered from 1 May around $25/hd/wk.

Cows (winter) Hawkes Bay

$20 to $25 / head / week

Waikato

$20.00 to $23.00 / head / week

Taranaki

$25.00 to $28.00 / head / week

Canterbury

Southland

Fell from a peak in 2015 of $25 - $28/ head / week including straw and silage down to $21 - $25/week in 2018. Standing kale and fodder beet dropped from 24c – 28c/kgDM in 2015 to 24c - 25c/kgDM in 2018. Prices depend on supply (ie season), demand (number of heifers and cows available) and on who manages the grazing (the dairy farmer or the grazier). $28.00 to $33.00 / head / week

131

Sheep and Beef (cost / head / week) Canterbury Sheep

- ewe - hoggets

- lambs Dry Cattle

- summer - winter - winter

$1.00 to $1.30 $2.00 to $2.50

- early spring - late spring -autumn/winter - weaners Apr-Mar

$1.50 to $2.20 $1.65 - $1.85/kg liveweight gain

- steers May-Oct

$2.65 - $3.00/kg liveweight gain

Wool and Shearing Expenses Regional Average Costs forecast for 2022/2023 (per su) North Island Hard Hill Country Class 3

$6.38

North Island Hill Class 4

$5.10

North Island Finishing Class 5

$3.86

South Island High Country Class 1

$9.70

South Island Hill Country Class 2

$7.31

South Is Breeding and Finishing Class 6

$6.65

South Island Mixed Finishing Class 8

$3.43

South Island Finishing Class 7

$9.77

National, All, Class 9

$6.27

Source: MPI. Beef+Lamb NZ Economic Service 2022/23

132

Shearing Rates New Zealand Shearing Contractors’ Association (NZSCA) is lifting pay rates to encourage shearers to stay in the country.( Nov 2023) Shearing of crossbred sheep, all crutching and shearing gang cooks will get a 6.91% pay increase; Merino, half breeds and quarter breeds shearing will receive a 12.38% rise; and advanced shedhands and pressers will get a 12.17% pay rise, seniors 22.81% and junior workers 20% Shearing costs, contract rates are influenced by technical requirement of the shear and the wool preparation best practice level applicable to that clip. With the increased demand, or direct wool contracts, prices will vary dependent upon the number of shedhands present. Crutching costs, a full contracting rate per head would range from: $1.10 - $1.25 for a button hole, tail crutch $1.36 - $1.50 for a full crutch eye wig $1.63 - $1.85 for full belly crutch eye wig Shearing costs per head the range of prices would be: Lambs $2.88 - $3.57 Second shear $2.99 - $3.78 Full wool crossbred $3.99 - $4.51 Merino standard prep $5.51 - $6.14 Merino - for full preparation on high value clips, extra wool handling staff would be brought in at $26.50 per hour. For a during winter shear, a specialist winter comb would have an additional cost of 13c – 21c per head. All the prices include travel and meal allowances but are exclusive of GST. Second shear is a one shearer to two shedhands ratio, whereas full wool is one to one, and merino is one to 1.4 (eg five shearers require 7 shedhands). These rates given are most likely to be exclusive of ACC levies and Health and Safety charges. Blade Shearing For full wool crossbred or merino, add 84c - $1.00 per head to the above rates.

Plant PGG Wrightson Ltd: Heiniger Evo Shearing Plant + wall bracket

$1,639.00

Pggwrightson.co.nz 133

Acto Agriculture: Lister Elite Shearing Plant with Rigid Downtube & Sensor

$2,186.96

Lister Nova 240 volt Dagging Plant with Sensor with 6' Flexible Downtube & Sensor for portable small-block shearing plus dagging and crutching in races and on trailers.

$1,353.48

Lister Pro-Grinder c/w aluminium discs

$3,150.00

Cast Iron Grinder Disc for Lister and Supershear Grinder

$552.78

Supershear Pro grind Emeries 40grit / 80 grit each

$11.13

Latex Glue for emeries 500ml

$16.00

Flat shearing combs sold in minimum packs of 5

$43.39

Supershear cutters sold in minimum packs of 5

$43.39

Electric handpieces

$718 to $709.57

Acto.co.nz Combs and Cutters

PGG Wrightson Ltd: Combs: Micro Pacer 76mm Comb Charger Heiniger Cover Comb ACE Kombat Comb 97mm short bevel Cutters: Heiniger Edge / Quattro Supershear Heiniger Handpiece 12v Pggwrightson.co.nz

Price / unit $55 $55 $34.77 $55 $8.25 / $6.95 $886.09

Electric Grinders

PGG Wrightson Ltd: Acutec c/w Aluminium disc set

$1,990.43

Heiniger grinder w/o disc

$1,520.87

Pggwrightson.co.nz

134

Emery Papers

PGG Wrightson: Heiniger Emeries fine / coarse

$11

Supergrind Emeries fine / coarse

$16

Pggwrightson.co.nz Woolpresses

ICS Manufacturing Ltd: ICS (formerly Lyco) Dominator

$18,900.00

PGG Wrightson Ltd: Kiwi Xpress 3hp 1 Phase

$27,619.00

Pggwrightson.co.nz Wool Bale/Bag Trolleys

ICS Manufacturing Ltd: (formerly Lyco) Bale/Bag Trolley

$750

Clippers and Shears Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Hand Shears 24 cm to 34 cm $24.26 to $82.52 Shear Sharpener

Burgon and Ball

$14.70

Foot Rot Shears

$15.57/$26.00

Wahl clipper Andis clipper

$320.87 AGC2 Cordless

$999.13

Shoofdirect.co.nz Trade Tested: (NB this is an online store. Always check availability & current pricing) Clipper Lifestyle Ruby C’less Spare Battery for Lifestyle Ruby C’ess Tradetested.co.nz

$417.00 $121.00

Other Woolshed Expenses

Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Tally counters

hand / electronic

$12.96 / $26

Shoofdirect.co.nz

135

Acto Agriculture: Shearing Moccasins

$58.52 to $60.78

Fulcrum Post Gauge

$116.34

Woolsweep Curve Sided Blade / Extenda Sweep

$12.26 / $68.96

Woolpack stencil 0-9

$44.87

Bale clips pack of 500 / applicator

$36 / $26.70

Pendulum Ellery / Supershear Supergrind Pendulum

$189.13 / $295.22

Comb Shaping Stone

$73.13

Acto.co.nz Fibre Testing Charges Greasy Wool Testing Prices – New Zealand Wool Testing Authority Ltd: Max. 12,000 kg greasy wool per test

Fee per 12,000 kg part

Standard Core Test Certificates

Test Method

Certificate Fee

Non - Merino Yield (incl VM), Airflow Fibre Diameter & Colour

IWTO 19/28/56

$97.50

IWTO 19/12

$100.50

Standard Core Test Certificates Merino Yield (incl VM) and Fibre Diameter (Laserscan)

Greasy Wool Length Tests ATLAS Staple Length & Strength

IWTO 30

Greasy Length After Carding- GLAC

$82.50 $350.00

Slipe Wool Package Yield +VM, Fibre Diamater (Aiflow), Colour and Conditioned Weight Upto 12,000kg

IWTO 19/28/56/33

Above 12,000kg

$137.50 $109.20 per 12,000kg or part

IWTO Combined Cert - Manual Base fee

(per Combined Cert)

$16.90

Additonal part fee

(per Certificate)

$9.30

Manual data entry -non NZWTA cert

(per External Cert)

$8.90

(per Combined Cert)

$26.80

IWTO Combined Cert - Electronic Base fee 136

Additional part fee

(per Certificate)

$5.90

Manual data entry -non NZWTA cert

(per External Cert)

$8.90

Tests in addition to Std Core Test certs Laserscan or OFDA - Fibre Diameter

IWTO 12 or 47

$30.00/$40.00

Medullation

IWTO 57 (OFDA)

$75.00

Core Bulk

NZS 87 16

$40.00

Yield (incl VM)

IWTO 19

$42.90

Colour

IWTO 56

$37.20

Fibre Diameter (Airflow, Laserscan / OFDA

IWTO 28 / 12 / 47

$37.20

Check Tests per component / test

Scoured Wool Testing Prices – New Zealand Wool Testing Authority Ltd: Max. 7,000 kg scoured wool per test

Comprehensive Scoured Wool Package (CSWP)

Test Method

Certificate Fee

Yield Fibre Diameter, Colour, Residual Grease, Conditioned Weight

IWTO 19 / 28 / 33 / 56 / 10

Up to 7,000kg

$192.80

Above 7,000kg

Add $126.50 per 7,000kg or part

Length Tests Length after Carding (per container)

NZS 8719

$274.00

Card Waste

$54.00

Re-read of carded Sliver (Almeter)

$133.00

Mean Fibre Length Report

$150.00

Mill Package (Incl Length after carding and card waste, Laserscan, Core Bulk) Up to 7,000kg

$431.80

7,001 - 21,000kg

Add $103.80 / 7t or part

Over 21 tonne

POA

Chemical Tests Alkali Solubility

IWTO -4

$252.00

Insect Resist

TWC -27

$390.00

Check Tests (per component / test) Yield and/or VM:

IWTO 19 137

$42.90

Colour

IWTO 56

$37.20

Fibre Diameter (Airflow, Laserscan or OFDA)

IWTO 28/12/47

$37.20

Residual Grease

IWTO 10

$37.20

Fee per fleece testing available on website. Nzwta.co.nz

Scales and Platforms Gallagher:

Alloy weigh platforms. 1.1m/2.2m

$986.00/$3,139.00

Frizzell Calf debudding/weighing crate Frizzell.co.nz

$2,300.00

PGG Wrightson Ltd: Walk over weighing system excl EID

$7,799.13

Walk over weighing system incl EID

$9,268.70

Pggwrightson.co.nz

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Hanging scales 10 / 25 / 50 / 100/250 kg Spring balance scales 10 / 25 / 50 kg

Economy / Quality

Each $68.69 to $112.17 Each $10.35 to $17.30

Electronic scales 25/50/100/150kg

Each $60.78 to $173.04

Shoofdirect.co.nz PGG: Tru-Test Weigh Scale and Loadbar System

$1,799.00

Tru-Test JR5000 Weigh Scale

$3,279.00

Pggwrightson.co.nz

Te Pari Ltd: Weigh Platform – alloy- value

$950.00

Tepari.com/nz

PGG: 138

Tru-Test MP600 Load Bars

$1,399.00

Tru-Test Hand Held EID StickTag Reader & Data Collector

$1,499.00/ $2,559.00

Pggwrightson.co.nz

Prattley Industries/PGG: Sheep weigh crate with 3 way draft

$2,529.00

Sheep 3 way swing gate auto draft weigh crate

$15, 689.00

Pggwrightson.co.nz

Lambing Equipment

AnQuip NZ Ltd: Heat Lamp Unit, no bulb Heat Bulb

5m cord + power saving switch PAR infra-red

$55.00 $16.95

Anquip.co.nz PGG Wrightson Ltd: Dr Hayes S/S needles 16gx 3/8” or ½”

12 pack

$7.49

Stomach Feeder lamb/kid

$7.49

Pggwrightson.co.nz

Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Lamb / kid teats

$2.52 - $3.39

Roslam Fawn Reviver (stomach feeder) complete

$28.61

Stomach feeder (lamb/kid)

$24.26

Lamb / Kid feeder kit

$6.52

139

Shoof International cont: (Excludes delivery NZ. Some exceptions. Can change without notice) Lamb feeder bottle, Non-vac, complete Milk Train 4 place Lambing rope pair 4mm nylon Lambing - twin straps packet of 10 Jorvet / Genia Ewe vaginal tape 2.5mm x 5m Vaginal tape needles Eco 20cm Vaginal suture needles 12 pack 13cm Sheep restrainer Gambrel Shepherds’ crook Kea range Ewe bearing retainer pack of 4 Macwells fostering oil 40ml Shoofdirect.co.nz

$12.95 $59.00 $17.30 $39.00 $17.30 $17.30 $43.39 $12.95 $39.00 - $60.78 $9.47 $46.00

Tailing and Marking Requisites

Electro-tek Engineering Ltd:

Tailing and Marking Requisites

Electro-tek Engineering Ltd: Ear Markers:

Sheep

All Designs

From $165

Non Standard add

$20.00 - $65.00

Cattle From $159 $20.00 - $65.00

Electro-tek.com

ICS Manufacturing Ltd: ICS (formerly Lyco) Rollamaster docking chutes Rollamaster standard model / standard with tipper Rollamaster contractor model / contractor with tipper Rollamaster Retrofit Tipper Unit

$1,115.00 / $1,815.00 $1,415.00 / $2,115.00 $795.00

140

Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Ear Markers – range of sizes

(for cattle)

$26.00 - $233.91

Elastrator rings

100 / 500 / 2000 / 5000

Castration Ring Applicator

Plastic

$13.83

Castration Ring Applicator

Economy

$22.52

$5.13 / $16.09/ $68.70 / $173.04

Farmhand POL Docking Iron

$399.13

LPG adapter POL to QCC

$26.00

California Bander

$94.78

25 pack bands

$78.17

Shoofdirect.co.nz

Te Pari Ltd: Docking Cradle / replacement sling / replacement cr

$500.00 / $48.00/ $10.00

Tepari.com/nz/ Ear Tags and Leg Bands

Allflex N.Z. Limited: Allflex plastic tag varieties Allflex electronic tag varieties Allflex electronic tag readers Allflex NAIT birth tags (excl NAIT levy)

$0.86 each $6.08 each $1,850 each $4.78ea

Pggwrightson.co.nz Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Leg Straps removable Leg Bands Quick strap Leg and tail tape Shoofdirect.co.nz

Five colours 10 pack Six colours, 5 pack 10m / 25m PE coated cloth

each $4.26 $8.61 - $21.65 $8.61 $6.00 / $12.09

Raddles and Markers

PGG Wrightson Ltd: Raddle Chalk Blue Pggwrightson.co.nz

$7.49

141

Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Cull Cow Paint (425ml) Stock Marker Raidex Shoofdirect.co.nz

$17.30 each $4.26

Mating Devices

Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Chinball mating harness Chinball ink 1L Shoofdirect.co.nz

$173.04 $60.78

PGG Wrightson Ltd: Ram Crayons Mild Blue

$6.51 each

Tail Paint Blue – 1 litre / 10 litre

$23.77 / $160.58

Matingmark Ram Harness

$55

Pggwrightson.co.nz Brands and Tattoos Shoof International: (Exludes delivery NZ. Some exceptions. Can change without notice) Stone digit - baby animal set 0-9 set $216.52 5mm Stone digit - std – 10mm 0-9 set / A-Z set $86.08 / $225.28 Stone outfit Pet set $86.08/ $225.28 Single Tattoo Digits A-Z $14.70 Single Tattoo Digits 0-9 $14.70 Tattoo Ink 28g to 140g tubes green/black $17.30 to $65.13 Freeze Branding (0 to 9 50 mm/75 mm/100mm $164.35 / $207.83/ $260 digits only set) Brandabull Complete set 50mm &75mm / 100mm $381.74 / $477.39 Shoofdirect.co.nz Hoofcutting

Electro-tek Engineering Ltd: Hoofcutter

$165.00

Electro-tek.com

142

Shoof International Ltd: (Excludes delivery NZ. Some exceptions. Can change without notice) Hoof Trimmers: Single Action

$112.17 to $251.30

Hoof Knives: Plain Pack - interchangeable blades

$51.30

Aesculap

$47.74

Genia range - left or right handed, single to double edge

$43.39 to $108.26

Hoof Snips: Alloy - plain / serrated blades

$30.39 / $34.70

Forged Steel – plain /serrated blades

$38.17 / $43.39

B&B plain /serrated

$ /63.40

Hoof Rasps: Stainless Steel

Straight

$31.21

Carbon Steel

Straight

$26.00

Carbon steel heavy

Plain or with handle

Hoof Test Plier:

33cm S/S

$37.30 / $43.39 $43.39

Shoofdirect.co.nz

De-Horning

Electro-tek Engineering Ltd: Yearling dehorners

$355.00

Manual calf dehorner

$59.00

Scully

$355.00

Keystone Dehorner

$385.00

Electro-tek.com

143

Te Pari Ltd: Te Pari calf dehorner Plastic handle / SS handle

$375.00 / $435.00

Spare LPG dehorner heads small / standard / large

$95

Tepari.com/nz/ Cow Lifters

Tokoroa Engineering (2014) Ltd: Cow Lifter

*$3,250.00

Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Daisy-Lifter

Medium term support Std / XL

$373.04 / $433.91

Hip Clamps

Standard / Vink

$277.39 / $329.57

Cow Hobble

Webbing and rings / Welfare approved

Cow Cover

Thermal Emergency for Jerseys / Friesians

$60.78 / $78.17 $303.47 / $346.96

Shoofdirect.co.nz Calving Aids

Electro-tek Engineering Ltd: Calving rope 6mm Double (190cm) / Single(160cm) loop Calving chain Double (150cm) / Single (80cm) Loop Calving chain handles – Stainless steel

$10.00 / $8.50 $30.00 / $24.00 $40.00

Electro-tek.com Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Calving chain handles Calving ropes

$26.00

7mm economy, single / double end

$16.43 / $21.65

9mm / 12mm soft flat braid dble end

$26.00 / $14.70

20mm flat braid

$17.30

Calving strap heavy duty, 25mm webbing - S/S D-rings

$12.96

Calving chains - range

$28.61 to $39.04

Calf pullers

$195.65

Calf puller straps – Farmhand

$17.30

144

Vink Calving Jack

$952.17 to $1,300.00

Obstetric lubricant - 1 litre / 5 litre / 20 litre

$12.09 / $29.48/ $120.87

Calf sling

$43.39

Shoofdirect.co.nz Calf Covers

PGG Wrightson Ltd: Calf Cover – canvas lined 2’6” Calf Cover – canvas unlined 2’9” Pggwrightson.co.nz

$79.99 $60

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Economy to Quality - small to large range

$26.04 to $286.08

Shoofdirect.co.nz

Straitline Canvas Ltd: (discounts available for high volume orders) Length wither - tail

Price per each

Animac PE Calf Covers

650 / 800mm

$9.80/$10.00

Jute Calf Covers strap/buckle

650 / 800mm

$29.60/$31.80

Canvas Calf Covers strap/buckle

650 – 800mm

$40.40- $82.00

Jute Yearling Covers strap/buckle

950 / 1,100mm

$45.80/$49.00

Canvas Yearling Covers strap/buckle

950/1,100mm

$98.00/$109.00

Jute Cow Covers strap/buckle

1,275 - 1,575mm

$65.40-$68.40

Canvas Cow Covers strap/buckle

1350 -1800mm

$129.40 - $252.00

Straitlinecanvas.co.nz

145

Bull Rings and Leads / Halters Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Bull rings – small, medium, large $14.77 to $34.34 s/steel/copper/bronze Calf weaner screw clamp

$8.61

Bull halter

heavy duty leather

$226.00

Cow halters

nylon /webbing

$47.39 to $34.70

Calf halters – lead / tether

nylon

$23.23 to $29.47

Leading ropes

cotton / vet rope

$26.00/ $30.35

Shoofdirect.co.nz Slaughter Device

Shoof International: (Exludes delivery NZ. Some exceptions. Can change without notice) Captive bolt slaughter Kit

$555.65

Shoofdirect.co.nz

Prodders

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Farhand Range shaft only Farmhand – Rechargeable cplt Kawe / FH Mk2 rechargable battery Shoofdirect.co.nz

31cm to 83 cm 57cm to 83 cm

$23.39 to $32.09 $120.87 to $159.57 $173.04 / $112.17 to $173.04

Piglet Management Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Piglet complete tail docker $152.17 Piglet tooth clipper – stainless $17.38 Piglet ear marker $129.57 Pig holder short handle / long handle $52.13 / $43.43 Pig ring applicator $43.39 Pig ring high tensile 10pk / nickel plated 10 pk $34.70 / $17.30 Shoofdirect.co.nz

AnQuip NZ Ltd Pregnancy Tester Bluetooth SV-3 Scanner Anquip.co.nz

$2,200.00

146

Dog Trainers and Equipment

K9 Control: Containment Systems from $499 to $849 Wireless Containment Systems $659.00 Boundary Wire 100m / 200m $119 to $124 Bark Control Collars $135 to $279 Remote Training Aids $319 to $949 K9control.co.nz Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Dog chains $7.74 to $28.61 Dog collars $6.00 to $30.43 Dog muzzles $8.61 to $74.70 Dog Tie Out Anchor $8.61 Dog holder MDC $365.22 Dog ute tether – chain /double end / universal $28.61 / $13.83 / $17.30 Dog whistles $1.30 to $25.13 Dog whistle ACME, ultra high pitch / silent $35.57 / $78.17 Shoofdirect.co.nz Horse Expenses Shoof International: (Excludes delivery NZ. Some exceptions. Can change without notice) Farrier Hammer Driving – Economy 12oz / Nordic 10 $39.91 / $103.48 oz Farrier Hammer - Nordic Rounding 2lb $112.17 Farrier Knife 5 Blade $30.43 Hoof Pick Nickel plated / s/s $5.13 / $6.17 Barrier Boot – Davis – 3 sizes $57.30 Horse Shoof – all sizes $43.39 Shoofdirect.co.nz Saddles and Covers

Clarke McKenzie Saddlery Ltd: Stock saddles Farm bridles Horse covers Neck Rug Halters

- Winter Various designs made to order - Webbing (leather also available)

Clarkmckenzie.co.nz

147

From $900 From $140.00 From $620.00 (canvas) approx. $220.00 (canvas) From $16

Stock Feeding Systems and Equipment PGG Wrightson Ltd:

Dog water bowl - concrete Waterers – nipple - for piglets Pggwrightson.co.nz McInnes Manufacturing Ltd: Milk Bar Lamb – Kid 1/ 3 / 7 / 10 spaces

$40 $8.25

Milk Bar Lamb / Kid 5 teat compartment

$49.95 /$59.95 / $119.95/$169.95 $122.25

Milk Bar Lamb/ Kid 10 teat compartment

$185.00

Milkbar.co.nz

Shoof International: (Excludes delivery NZ. Some exceptions. Can change without otice) Pigs: Water Bowl Stainless piglet /Push button cast iron/brass Water Nipples

$43.39/ $146.96

15mm / 20mm

$5.17 / $8.65

Lambs: Kid/Lamb Feeder Excal bottle complete

$7.78

Kid/Lamb Feeder Rail Bucket 10-place

$120.87

Poultry: Poultry Drinker

Ball type / Tankstand

$18.17 to $103.47

Poultry Feeder Plastic

1.5 to 40 kg

$10.35 to $112.17

Shoofdirect.co.nz

Hynds Rural: Precast Concrete Stock Feeding Systems (Freight not included) Product Code

Description

TRP0515LNIM

Trough Conc 515L Round ProtectedDual entry NI Trough Conc 750L Round ProtectedDual entry NI Trough Conc 1100L Round ProtectedDual entry NI Trough Conc 1500L with Lid Round Protected National Trough Conc 250L Pinnacle Oblong Protected-Dual entry Trough Conc 400L Pinnacle Oblong Protected-Dual entry

TRP0750LNIM TRP1100LNIM TRP1500N TOP0250LNIM TOP0400LNIM

Retail

148

$450.00 $500.00 $600.00 $680.00 $390.00 $440.00

Charges will apply as per published ‘Christchurch Network Delivery Guidelines’, unless otherwise agreed. Hynds.co.nz

Stronghold: Product

Description

Price

Ring Feeder RF1800

1.8 diam x 1.2 h

$599

Feeder HF1800

1.8 diam x 1.2 h

$719

Feeder HF2300

2.3m diam x 1.2m

$1,019

Oblong Feeder HF180B

2 straight & 2 curved panels

$959

Oblong Feeder HF230B

$1,359

Curved Panel HF1800XC

2 x straight & 2 curved panels 1.2m h

Curved Panel HF2300XC

2.4m L X 1.2m h

$339

Straight Extension HF1800X

2mL x 1.3m h

$239

Straight Extension HF2300X Freight extra. Stronghold.co.nz

$239

$339

149

CONTRACTING CHARGES Hay Making

Some examples of contractors' charges are as follows: In general harvesting costs usually operate about: harvesting & stacking $1365 / ha, with a further covering/wrapping cost $260 / Ha, or about $115 / Tonne Taranaki: Mower / conditioner

2.8 m

$164 per hour

3.1m

$164 per hour

Tedding / raking (6m rake) Conventional/

$119 per hour - more than 100 bales

$4.30 per bale

Full Contract Baling – includes cut, one turn only, row & bale

$21.00 per hour

Waikato: Baling

$1.80 per bale

Conventional bale Square or round

$1.80 per bale equivalent

Hawkes Bay: Mowing

$90 per ha

Raking

$60 per ha

Baling

1.2 Baleage

$17.50 per bale

1.5 Hay Bale

$20 per bale

Southland Conventional bales (for complete job – carted in etc)

$4.50 - $5.00 per bale

Truck

$150 per hour

Rotary Swather

$180 per hour

Mower conditioner

$170 per hour

150

Silage

Some examples of contractors’ charges are as follows: Hawkes Bay: Baleage - includes mowing, wrapping, baling and stacking

$48 per bale

Taranaki: Wrapped Silage: - 1.3m diameter bale – row-bale-wrap size 10

$32.25 per bale

Full Contract wrapped silage - includes cut, row, bale and wrap - size 10 bale equivalent 1.3m

$21.00 per hour

Waikato Baleage

Rounds (10+ equiv)

$34 per bale

Squares (7 equiv)

$32 per bale

Stack tractor - 200hp Loader wagon Southland: To make silage

$150 per hour 30 or more cubic metres

Depends on situation and terrain

Loader for silage

$260 per hour

$400 to $450 per ha $155 per hour

Forage Harvester (if maintaining 4-5ha/hr)

$650-$660 per hour

Mower conditioner

$170 per hour

Truck

$150 per hour

151

Cultivation / Drilling Canterbury:

One Canterbury contractor charges $98 per ha for direct drilling, $100 per ha for cultivation. Another contractor charges $175 per hectare for ploughing and $170 per hectare for a single pass cultivator.

Indicative Contract rates, regional variations are not recorded, but local contract rates need to mbe sourced: Planting maize per ha

$230 per hectare

Side dressing maize per ha

$60 per hectare

Direct drilling

$130 per hectare

Conventional drilling

$90 per hectare

Fodder Beet Planting

$230 per hectare

Bean Planting

$235 per hectare

Discing

$145 per hectare

Powerharrow

$175 per hectare

Powerharrow and sow, one pass

$195 per hectare

Direct drilling on the flat, seed only

$144 per hectare

Direct drilling on the flat, seed & fertiliser

$250 per hectare

Direct drill on hills, seed & fertiliser

$165-$220 per ha, terrain dependent

Conventional drilling

$129 per hectare

152

Heading / Harvesting https://ruralcontractors.org.nz/ RCNZ represents rural contractors providing services to farmers, councils and rural communities from https://www.bamurrayagriculture.co.nz/contact/ Kaitaia to Southland, this site hosts regional contractor details.

Cereals

$290 per ha

Draper pickup harvesting

$320 per ha

Direct heading of Clover

$320 per ha

Specialty crops eg Radish, Carrot (expect 2ha/hr) Peas / costs more if harvested in one direction

$720 per hour $300 per ha / $320 per ha

Cartage for trucks

$120 per hr

Rates per ha vary with the type and quality of crop and the tonnage expected from it (i.e. a lower price is paid for crops on light soils with low yields). Rates will also vary with cartage distance to silo. Smaller size paddocks and heavier crops are charged at a higher rate per hectare. Allowance should be made for travelling time for trucks, labour and for other expenses. A surcharge for work on hill country should also be allowed for. Mower conditioner 3m / 8m

$414.00 per hour $104.00 per hectare for the 8m

Raking

$45 per ha

Chopper Grass / Maize Loader

$720.00 per hour / $975.00 per hour $225.00 per hour

Cartage

$110.00 per hour per truck

Canterbury contractor charges $300 / ha for clover harvest and $1,450 per hour for maize harvesting for silage (includes 3 trucks, loader and forage harvester) In Waikato the average rate for heading is $397 per hectare for maize.

153

Aerial Oversowing https://southernwidehelicopters.com/ https://www.ravensdown.co.nz/services/spreading/aerowork-aerial-spreading Note that prices may go up if fuel prices increase. Southland: For aerial seeding in a fixed wing plane, costs start from approx $35 per hectare. Costs vary depending on application rates, distance to block, and size and shape of the block. Manawatu: For aerial seeding in a fixed wing plane, costs range from $95 to $140 per hectare. This is mostly for forestry oversowing, either before replanting, or for weed control for later conversion to pasture. Costs also range from $13.25 for clover seed to $64.25 per hectare for sowing down an area of new grass with an application rate of around 40kg of seed per hectare.

Dipping

Wrights Contracting, Hawarden, North Canterbury. Prices are per head plus chemical. Example of chemical used: Extinosad 10L $1048.47 Unlock Concentrate 10L $727.44 Cyromax 10L $603.54 Zinc 25kgs $75 Ewes / rams /hoggets, are $0.58 and lambs $0.54. Recommendation that the ideal time to dip is generally 14-15 days post shearing as this will help reduce the amount of chemical required Note $1.50 per km charged for travel.

154

Tailing / Dagging / Drenching

A Canterbury contractor: Travel costs are extra, plus ACC levies are 6% on top Sheep

Dagging / tup crutching using mobile crutching unit

$1.15per head

Drenching, using sheep handler one operator per unit

$138 per hour

Extra operators would be $45 per hour.

Another Canterbury contractor Lamb

Tailing – incl cost of gas, mobile yards

$1.45 per head

Calculated by 8 hours x 5 staff units at $36/hr x 1,000 lambs.

Pregnancy Diagnosis Scan Plus: Sheep

- Triplets

82 cents per ewe

- Twins

62 cents per ewe

- Wet Dry

42 cents per ewe

- Lates or earlies

10 cents per ewe

Cows

$1.99 per head

Cows

For large herd discounted to $1.79

Cows

For small herd $2.39 per head

Ultra-Scan Pregnancy Testing and Animal Services:2023 prices Cattle:

with a minimum charge of $75

$2.50 to $3.00 per head for a full herd

Heifer:

$2.50 - $3.10

Beef/Yards

$2.50 -$3.10

Rechecks

$2.35 -$2.85

Carryovers

$2.50 -$3.00

Premating

$2.50 - $3.00

155

Miscellaneous Contracting Arborists costs Qualified Utility Arborist , including project management.

$75 - 100 per hour

STMS Level 2

$59.00 per hour

Traffic Controller

$52.30 per hour

Project Management Arboriculture Consultant

$70.40 per hour $82.50 per hour

Trimlift EWP (15m reach)

$110 per hour operator

Trimlift 2 EWP (17.1m reach)

$150.00 per hour perator

Versalift EWP (20.2m reach)

$185per hour operator

Log Splitter

$65per hour operator

Brush Chipper 12” no winch / 14” incl winch

$65.40 -$95.60 per hour

Chainsaws, Fuel and Miscellaneous. Tractor with grapple and Flail Mower 4WD Utility Vehicle

$6.00 per hour each $120 per hour $2.35 per km

5 Ton Tipper Trimlift or Trimlift 2 EWP Versalift EWP

$2.55 per km $3.15 per km $3.20 per km

156

ELECTRICITY Total Farm Electricity Costs

Depending on the type of farm size and locality, typical electricity costs (including domestic) forecast for 2022/23 are as follows:w Sheep and Beef North Island Hard Hill Country Class 3 North Island Hill Country Class 4 North Island Finishing Class 5 South Island High Country Class 1 South Island Hill Country Class 2 South Island Breeding and Finishing Class 6 South Island Mixed Finishing Class 8 South Island Finishing Class 7 National Dairy 2020/2021 Northland Waikato Bay of Plenty Taranaki Lower North Is West Coast - Tasman Marlborough - Canterbury Otago - Southland National

(per su) $0.82 $1.01 $1.38 $0.73 $0.70 $0.99 $1.69 $1.09 $0.99 (per cow)

$44

Horticulture Hawkes Bay Pipfruit 2023 Nelson Pipfruit 2023

(Per kg MS) $0.16 $0.12 $0.13 $0.11 $0.14 $0.11 $0.08 $0.11 $0.11 (per ha) $377 $708

Viticulture Marlborough incl Irrigation Sauvignon Blanc 2022 Otago Pinor Noir 2019

(per producing ha) $220 $364

Source: MPI; Beef+Lamb NZ Economic Service; DairyNZ Economic Survey 2020/2021, MPI Viticulture Gross Margin Otago Report 2019 and MPI Marlborough Vineyard Monitoring Report 2022.

157

Regional Electricity Charges Orion Commercial rates: irrigation and sheds Tariff

Meridian Charge (excl GST)

Network Charge (excl GST)

Daily

Total Electricity Charge (excl GST) 180.55

Unit of Measure

per day

Anytime

13.43

6.65

20.08

cents per kWh

Controlled

14.09

5.97

20.06

cents per kWh

Controlled Night

12.78

1.95

14.73

cents per kWh

week Day

15.38

9.93

25.31

cents per kWh

Economy 24

16.10

5.97

22.07

cents per kWh

Week Night

12.78

1.95

14.73

cents per kWh

Fixed energy

0.60

29.33

29.93

cents per kWh

Fixed energy Day night

16.90

7.85

24.75

cents per kWh

Irrigation Irrigation charges differ throughout the country, so in some areas of New Zealand the above charges may apply but in others the charging structure for irrigation connections can be vastly different. As with other electricity charges these charges may change without notice and are region specific. For detailed up to date information refer to the URL links, The above table can be used for general guide, but detailed rates should be sourced from the following links. https://www.meridianenergy.co.nz/agribusiness/pricing-plans/irrigation https://www.plainspower.co.nz/pricing https://www.ena.org.nz/resources/lines-pricing-information/document/1207

158

Cost of Power Installation The average network company installation charge for 1 kilometre of power line in rural areas iranges $47,960 - $89,360 + GST (for 11,000 volt overhead lines). Price varies depending on the distance to be installed i.. If a transformer is required then allow for $8,000 to $20,000 + GST/per site, depending on power required. For an example of current, up to date pricing plans refer to, Meridian Energy https://www.meridianenergy.co.nz, dedicated agribusiness experts in electricity for farms. Wind Energy is one of the cheapest forms of new electricity generation. In NZ wind farms do not recieve subsidies https://www.windenergy.org.nz/the-cost-of-wind-energy

159

FERTILISER and LIME Sheep and Beef (Deer not separated out but often run with sheep and beef)

North Island Hard Hill Country Class 3

$14.10

North Island Hill Country Class 4

$14.86

North Island Finishing Class 5

$18.52

South Island High Country Class 1

$15.08

South Island Hill Country Class 2

$13.77

South Island Mixed Finishing Class 8

$72.86

South Island Breeding and Finishing Class 6

$21.97

South Island Finishing Class 7

$17.63

National Class 9

$18.62

(per su)

Source: Beef and Lamb NZ Economic Survey 2022/23.

Dairy 2020/21

(per cow)

(per kg MS)

Northland

$0.54

Waikato

$0.41

Bay of Plenty

$0.53

Taranaki

$0.43

Lower North Is

$0.38

West Coast - Tasman

$0.78

Marlborough - Canterbury

$0.38

Otago - Southland

$0.44

National

$185

Source: DairyNZ Economic Survey 2020/21.

160

$0.44

Fertiliser

Ballance Agri-Nutrients Ltd: These prices are indicative; are reviewed quarterly and are subject to change. Current pricing can be obtained from the Ballance Agri-Nutrients website * Price/tonne excludes through store charges for delivery of bulk fertiliser. Prices are exclusive of GST. # Limited availability from selected locations. NI North Island only product SI South Island only product . N

SustiaN 45.9 32.1 27.5

15.0

- SustaiN - SustaiN 15k - SustaiN 20K

$929.00** $1,039.00** $1,071.00**

20.0 25.0 -

14.0 9.2

- SustaiN 25K - SustaiN 30N - SustaiN 36N

$1,104.00** $754.00** $818.00**

$ per tonne

9.5

2.0

22.0 SurePhos (7.8%phosphate)

$484.00**

7.8

4.0

18.0 SurePhos(8.3% phosphate)

$515.00**

23.0 30.4 35.7

N P SurePhos 7.8 -

8.3

N SuperN 44.7

6.3

7.7

11.2

6.8

14.8

6.0

$ per tonne

1.3

- SuperN

$910.00**

9.5

0.2

18.9 SuperN6

$524.00**

8.3

0.3

16.5 SuperN11

$575.00**

7.4

0.4

14.7 SuperN15

$612.00**

161

$ per tonne

Super -

9.0

22.0 SuperN

$449.00**

8.1

5.0

9.9

19.8 SuperN 5K

$542.00**

7.7

7.5

9.4

18.7 SuperN 7K

$582.00**

7.2

10.0

8.8

17.6 SuperN 10K

$621.00**

6.3

15.0

7.7

15.4 SuperN 15K

$702.00**

4.5

25.0

5.5

11.0 SupertN25K

$862.00**

Pasturesure Blends cannot be mixed with Nrich urea or SustaiN N

$ per tonne

9.5

5.4

5.0

6.6

1.4

15.2 PastureSure 5K

$668.00**

7.6

4.9

10.0

6.0

1.3

13.9 PastureSure 10K

$727.00**

7.6

4.2

15.0

5.1

1.1

11.7 PastureSure 15K

$803.00**

9.5

4.9

16.6

15.9 PastureSure 15S

$611.00**

9.1

6.3

7.6

1.6

17.6 PastureSure Boost

$583.00**

6.0

5.9

6.0

7.1

1.5

16.5 PastureSure Balancer

$649.00**

12.1

5.7

7.0

1.5

16.2 PastureSure Impact

$612.00**

Ca 21.0 19.8 17.5 16.8 15.8 13.8

Sulphur Fertilisers N

P -

K 8.6 8.0 7.0 6.8 6.4 5.6

S 7.5 10.0 15.0

15.2 20.4 29.8 90.0 17.3 16.3 14.3

162

Sulphurgain 15S Sulphurgain 20S Sulphurgain 30S Sulphurgain 90S 15% Potash sulphur super (7K) 20% Potash sulphur super (10K) 30% Potash sulphur super (15K)

$ per tonne $489.00** $525.00** $580.00** $930.00** $642.00** $679.00** $754.00**

PhaSedN N

$ per tonne

25.3

28.5

0.1

5.7 PhaSedN

$795.00**

31.5

17.1

2.3 PhaSedN Quick Start

$822.00**

$ per tonne

Pasturemag with (SustaiN) N

6.9

5.8

7.2

4.3

14.0 Pasturemag

$549.00**

6.2

5.2

5.0

6.5

3.8

12.6 Pasturemag 5K

$626.00**

5.5

4.6

10.0

5.8

3.4

11.2 Pasturemag 10K

$698.00**

4.8

4.0

15.0

5.1

3.0

9.8 Pasturemag 15K

$770.00**

11.5

5.1

6.4

3.8

12.4 Pasturemag 12N

$596.00**

9.2

2.7

3.4

6.6 Pasturemag Hay&Silage

$893.00**

46.0

N-rich urea

$880.00**

20.5

23.0

N-rich SOA

$625.00**

N-rich

30.4

14.0

N-rich AMMO 30N

$745.00**

35.8

9.2

N-rich AMMO 36N

$798.00**

Cropzeal N

$ per tonne

13.2

12.5

0.8

- Cropzeal 15P

$1,296.00**

15.2

8.0

10.0

9.6

- Cropzeal 16N

$1,035.00**

19.1

10.0

- Cropzeal 20N

$972.00**

16.5

19.5

1.0

- Cropzeal Boron Boost

163

$1,395.00**

Phosphate Fertilisers N

$ per tonne

19.6

13.0

Triple Superphosphate

$1,295.00**

4.4

5.1

0.1

30.9

Ballance Dicalcic Pastoral

$453.00**

Potash Fertilisers -

50.0

Muriate of Potash

$1,250.00**

42.0

17.0

Sulphate of Potash

$1,650.00**

DAP Fertilisers 17.6

20.0

1.0

DAP

$1,295.00**

10.6

14.8

12.5

7.0

DAP Sulphur super

$1,034.00**

8.5

11.8

10.0

5.6

20% Potash DAP Sulphur super

$1,088.00**

Magnesium Fertilisers N P

$ per tonne

6.8

8.5

5.0

16.5 Serpentine super

$460.00**

6.1

5.0

7.7

4.5

14.9 Serpentine super 5K

$551.00**

5.8

7.5

7.2

4.3

14.0 Serpentine super 7K

$592.00**

5.4

10.0

6.8

4.0

13.2 Serpentine super 10K

$629.00**

4.8

15.0

6.0

3.5

11.6 Serpentine super 15K

$709.00**

3.4

25.0

4.3

2.5

8.3 Serpentine super 25K

$867.00**

18.0

2.5

17.0 Kieserite Granular

$832.00**

11.0

24.0 Calmag

$895.00**

164

Yara N

$ per tonne

15.0

7.0

12.5

3.0

1.2

- YaraMila Actyva S 15-7-12.5

$1,450.00**

13.0

10.5

10.0

2.0

1.0

- YaraMila 12-10-10

$1,450.00**

8.0

10.5

20.0

2.6

- YaraMila 8-11-20

$1,575.00**

12.0

5.0

1.6

2.5 YaraMila Complex

$1,525.00**

13.0

2.6

17.4

10.0

1.5

- YaraMila GrowerNZ

$1,575.00**

27.0

1.0

4.0 YaraBela CAN

$1,275.00**

15.4

18.3 YaraLiva Nitrabor

$1,225.00**

9.0

27.5

13.0

1.0

0.0 YaraRega 9-0-27.5

$1,550.00**

Pure Protamin

$2,950.00

30.0 Pure BioPhos

$745.00

Pure Organics N

Ca Mg

13.0 -

12.1

90.0

18.0

42.0

Pure Sulphurgain 90S 22.0 Pure Gypsum

17.0

$980.00 $350.00

Pure Sulphage of Potash

$1,700.00

Pure Boron 10%

$3,100.00

Pure Seleniium 1%

$7,180.00

Pure Copper 25%

$9,800.00

Pure Zinc 23%

$2,850.00

Pure Cobalt 10%

$25,450.00

6.0

Pure Manganese 32%

$2,600.00

17.2

Pure Iron 30%

$1,750.00

165

Horticulture and Arable Advantage N

$ per tonne

Mg 19.5

0.7

22.5

- Advangate SOA

$776.00

35.3

0.3

9.0

- Advangate CropAmmo

$878.00

10.3

4.3

12.9

9.0

3.2

2.2 Advantage Avogain

$1,491.00

2.3

25.1

8.0

6.3

6.9 Advantage Kiwi High K

$1,157.00

4.3

12.6

10.3

6.8

12.4 Advantage Kiwi Base

$961.00

8.2

12.6

8.0

4.4

10.7 Advantage Kiwi High P

$1,189.00

14.9

12.6

7.8

2.8

2.2 Advantage Kiwi Bud Break

$1,387.00

13.0

2.6

17.4

1.2

- Advantage Kiwi Pre Flower

$1,575.00

33.6

17.2

3.0

- Advantage Kiwi Post Flower

$1,497.00

9.5

14.7

10.1

4.4

1.4 Advantage Avogain No P

$1,421.00

Advantage Cropzeal N

$ per tonne Mg

14.8

8.4

10.0

9.4

- Advangate Cropzeal 16N

$1,094.00

18.6

10.5

11.8

- Advangate CropZEAL 20N

$1,046.00

166

NutriMax N

6.0 17.2

$ per tonne NutriMax Boron 15%

$3,170.00

NutriMax Selenium 1%

$5,330.00

NutriMax Copper 25%

$9,750.00

NutriMax Zinc 23%

$2,800.00

NutriMax Cobalt 10%

$25,400.00

NutriMax Manganese 32% NutriMax Iron 30%

$2,550.00

25 kg

$51.84

$1,700.00

Balance.co.nz

Egmont Commercial Ltd: Fertiliser Sulphate Iron Controlled release fertilisers: N P K 14

3.5

12.5

Plantacote - plus trace elements

8 month release

25kg

$211.50

2 0

4.4

12.5

Plantosan – plus trace elements

3 month release

25kg

$243.90

Egmontcommercial.co.nz

167

Livestock Supplies (N.Z.) Ltd: Fertilisers: Fertiliser (/kg)

Price

Diammonium Phosphate

$1.295

Gypsum

$0.60

Muriate potash

$1.25

Phosta K

$1.40

Sulphur 90

$0.825

Superphosphate

$0.449

Urea

$0.88

Trace Elements (/kg) Boron 48

$2.50

Ulexite Boron 15%

$2.60

Cobalt Sulphate

$32.00

Copper Sulphate Fine / Granular

$9.00

EMAG 523

$1.35

Lime Flour

$0.34

Iron Sulphate

$2.05

Organic 1 Year Selenium Chip

$7.00

Magnesium Chloride Prill

$0.43

Magnesium Sulphate

$0.50

AGSEL Selenium

$5.90

Sodium Molybdate

$100.00

Zinc Monohydrate Powder / Granular

$3.95

Livestocksupplies.co.nz

168

Ravensdown Ltd: Prices are direct prices, ex port store – Nelson, Hornby, Seadown or Ravensbourne. N

$ / tonne (bulk)

Pastoral Fertilisers 0.0

9.0

0.0

11.0

0.0

20.0

Superphosphate

$450.76

17.6

20.0

0.0

1.0

0.0

Cropmaster DAP

$1,318.78

46.0

0.0

Urea

$902.54

0.0

20.5

0.0

1.0

0.0

16.0

Triple Super

$1,106.60

0.0

6.7

0.0

8.6

5.5

15.0

Serpentine Super / Drilling Super

$451.78

10.6

14.8

0.0

12.6

0.0

6.4

DAP 13 S

$1,070.25

0.0

10.7

0.0

28.0

Sechura RPR (NI only)

$634.52

Sulphur Fortified Fertilisers 0.0

8.6

0.0

14.8

0.0

19.2

Sulphur Super 15

$492.36

0.0

8.0

0.0

20.6

0.0

18.0

Sulphur Super 20

$532.26

0.0

7.0

0.0

30.1

0.0

16.0

Sulphur Super 30

$583.76

0.0

90.0

0.0

Sulphur 90

$1,023.35

Superphosphate and Trace Elements 0.0

9.0

0.0

11.0

0.0

20.0

Molybdenum Super (500g)

$488.78

0.0

9.0

0.0

11.0

0.0

20.0

Cobalt Super 1kg -CO2SO4 =21% Co

$501.45

0.0

9.0

0.0

11.0

0.0

20.0

Copper Super 1.5kg

$519.29

0.0

9.0

0.0

11.0

0.0

20.0

Selenium Super (2kg)

$488.01

0.0

5.5

14.7

13.2

0.0

12.4

Lucerne Mix + TE

$800.83

0.0

7.0

0.0

30.1

0.0

16.0

Moly Sulphur Super 30 (300g)

$612.53

0.0

7.0

0.0

30.1

0.0

16.0

Moly Sulphur Super 30 (500g)

$621.71

169

Potassium Fertilisers 0.0

8.1

5.0

9.9

0.0

18.0

10% Potash Super

$545.56

0.0

7.7

7.5

9.4

0.0

17.0

15% Potash Super

$585.46

0.0

7.2

10.0

8.8

0.0

16.0

20% Potash Super

$625.36

0.0

6.3

15.0

7.7

0.0

14.0

30% Potash Super

$705.15

0.0

5.4

20.0

6.6

0.0

12.0

40% Potash Super

$784.95

0.0

4.5

25.0

5.5

0.0

10.0

50% Potash Super

$864.75

0.0

6.8

7.5

17.5

0.0

15.3

15% Potash Sulphur Super

$641.98

0.0

6.4

10.0

16.4

0.0

14.4

20% Potash Sulphur Super

$678.55

0.0

5.6

15.0

14.4

0.0

12.6

30% Potash Sulphur Super

$751.70

0.0

42.0

18.0

0.0

Sulphate of Potash sol (bagged)

$1,986.40

0.0

41.5

18.0

0.0

Sulphate of Potash granular

$1,826.40

0.0

50.0

0.0

Potassium Chloride

$1,248.73

Other General Fertilisers N

4.0

6.5

4.0

12.5

0.0

14.4

Dairy Pasture Boost 4

$578.53

4.0

6.1

6.0

12.1

0.0

13.6

Dairy Pasture Boost 6

$610.45

4.0

5.4

10.0

11.2

0.0

12.0

Dairy Pasture Boost 10

$674.29

4.0

5.0

12.0

10.8

0.0

11.2

Dairy Pasture Boost 12

$706.21

5.5

6.0

13.0

0.0

12.1

Ravensdown Pasture 6

$628.31

$ / tonne (bulk)

170

Cropmaster DAP based 10.6

12.0

20.0

0.6

0.0

Cropmaster 11

$1,305.76

12.3

14.0

15.0

0.7

0.0

Cropmaster 13

$1,312.77

14.8

10.0

7.4

0.0

Cropmaster 15

$1,132.77

15.4

7.0

22.5

0.4

0.0

Cropmaster 16, High K Bulk

$1,219.01

18.8

10.0

0.0

12.0

0.0

Cropmaster 20

$1,022.11

14.1

16.0

10.0

0.8

0.0

Cropmaster Brassica Mix

$1,319.77

13.6

15.4

9.5

0.8

0.0

Cropmaster Brassica + Boron

$1,346.46

Nitrogen Fertilisers

0. 0

0.0

0. 0

Urea

$902.54

45.9

0. 0

0.0

0. 0

N-Protect S

$922.16

20.0 0. 0

0. 0

23. 0

0. 0

Ammonium Sulphate granular

$695.43

6.0

6.3

0. 0

14.6

0. 0

14. 0

Nitrogen Super

$539.16

27.0

0. 0

0.0

2.4

5.3

Calcium Ammonium Nitrate (CAN)

30.4

0. 0

13.8

0. 0

Ammo 31

$793.27

35.6

0. 0

9.2

0. 0

Ammo 36

$834.70

29.9

0. 0

31.5

0. 0

Nitro S

$959.82

45.3

0. 0

0.0

0.5 0. 0

Flexi-N NBPT North Island

$983.76

171

$1,365.48

43.2

0. 0

0.0

2.4

0. 0

Flexi-N South Island

$952.28

25.7

0. 0

10. 0

9.7

0. 0

Ureammopot

$898.76

46.0 0. 0

0. 0

0.0

0. 0

Low Biuret Urea (bagged)

$1,062.54

Ammophos MAP based 10. 0

22.0

0.0

1.0

0.0

Ammo-Phos MAP

$1,350.25

7.0

15.4

15.0

0.7

0.0

Ammo-Phos/Hycrop 7-15-15

$1,334.80

8.5

18.7

7.5

0.9

0.0

Ammo-Phos/Hycrop 9-19-7

$1,350.03

Nitrophoska and Compound Fertilisers 12.0

5.2

14.1

8.0

1.2

3.8

Nitrophoska Extra North Island

$1,573.60

12.0

5.2

14.1

10.0

1.2

0.0

Cropstart 12-5-14

$1,736.04

12.0

5.2

14.1

10.0

1.2

0.0

Compound Extra

$1,824.37

9.6

4.2

13.7

9.9

2.7

3.0

Avocado Regular Mix + TE

$1,900.08* * bagged price

Ravensdown Ltd cont: Horticultural Fertilisers: (bulk) N

0.0

20.0

15.0

0.0

$ / tonne Esta Kieserite (Granular)

$877.16

Ravensdown Ltd: Fine Particle Products – check Ts and Cs that apply to fine grind product 25kg Bags Fine Grind Lime (Te Pahu) $279.19 Magnesium Oxide Fine $809.14 Prices are subject to change. Check latest pricing or order online www.ravensdown.co.nz

172

Landscape and Grower: Liquid Fertilisers Product

Price

Adler Agro Alga Nature Seaweed liquid 5L

$289.11

Landscapeandgrower.com

Nitrosol Ltd: Liquid Fertilisers – Nitrosol Liquid Suspension Biological Fertiliser. N P K S Name Quant ity 20 litre 100 litre

Price

Nitrosol Original for horticulture

$185.50

Nitrosol Original for horticulture

200 litre

$966.00

Nitrosol Original for horticulture

1000 litre

$4,620.00

Nitrosol Oceanic for pasture

$625.00

Nitrosol Oceanic for pasture

20 litre 100 litre

Nitrosol Oceanic for pasture

200 litre

$990.00

Nitrosol Oceanic for pasture

1,000 litre

$4,725.00

Nitrosol Organic (Bio-Gro cert)

200 litre

$998.00

Nitrosol Organic (Bio-Gro cert)

100 litre

$635.00

Nitrosol Organic (Bio-Gro cert)

1,000 litre

$4,777.00

$615.00

$699.00

(100% soluble, (Bio-Gro cert) 21

Nitrosol N-Boost liquid nitrogen

100 litre

$425.00

Nitrosol N-Boost liquid nitrogen

200 litre

$650.00

173

1.5

Nitrosol N-Boost liquid nitrogen

1000 litre

$2,995.00

Nitrosol MagSulphate

200 litre

$300.00

Nitrosol MagSulphate

1,000 litre

$1,421.00

Nitrosol Seaweed Flakes

2 kg foilpa ck

$58.00

20kg carton

$529.00

25kg bag

$17.50

(100% soluble; Bio-Gro cert) 1.5

Nitrosol Seaweed Flakes (100% soluble; Bio-Gro cert) Nitrosol Micro-Lime (15 micron)

98% pure calcium. Mix with water for foliar application. (Bio-Gro cert) NB: All prices are plus freight at cost. Nitrosol.co.nz

Bell-Booth Ltd: Liquid fertilisers and pasture trace elements Supacrop Soluble Foliar Fertiliser:

Pack size

Retail price

N-telligent 4 Maize (27-7-10)

20 kg

$175.00

N-telligent 4 Brassica (6-6-30)

20 kg

$214.00

N-telligent 4 Brassica (27-7-10)

20 kg

$175.00

Supacrop foliar sprays for pasture and crops: N-Telligent 4 Brassica Liquid

20 / 200 / 1,000 l

174

$157 / $1,310 / $5,535

Bell-Booth Ltd: Bio-stimulants for pasture Product

Pack size

Retail Price

Maxicrop Triple

5 l / 20 l

$65.00 / $218.00

200 l / 1,000 l N-telligent

$1,727.00 / $8,100.00

200 l

$1,510.00

Bell-booth.co.nz Slow Release Fertilisers

Landscape and Grower Supplies Ltd: AGPRO Fertiliser Tablets Mivena Horti-Cote Plus CRF

10kg

$143.66

4 Months 16-6-12 20kg

$249.48

Landscapeandgrower.com Phosphorus Availability: To give an indication of the quickly available (to plants) phosphorus content of fertilisers, a citric solubility test is required for all phosphate fertilisers in New Zealand. With some fertilisers, particularly those containing reactive phosphate rock (RPR), the amount of plant available phosphorus is greater than indicated by the citric acid test. For such fertilisers Ravensdown Ltd has provided an estimate of the potentially available phosphorus (PAP). They state that the PAP estimates take into account slowly available phosphorus, which is a better guide to the value of the fertiliser for use on pasture.

Product:

Total P

Cit.sol.P

PAP

Superphosphate 0-9-0

8.5

8.8

15% Potash Super 0-8-8

7.2

7.6

Cropmaster DAP 18-20-0

Longlife Super 0-10-0

6.8

North Carolina RPR 0-13-0

175

Sulphur Availability: The sulphur contained in fertilisers may be either quickly or slowly available (or intermediate) depending on the blend of sulphate sulphur (quick) and elemental sulphur (slow). Fertilisers with only quickly available (sulphate) sulphur include: super phosphate, long-life super, potash super mixes and ‘crop’ or ‘nitrogen’ type fertilisers based on ammonium sulphate or potassium sulphate. Fertilisers with mainly slowly available sulphur are those containing elemental sulphur such as RPR plus sulphur mixes, PAPR plus sulphur mixes and sulphur bentonite prills. Fertilisers which have a mix of both quickly available and slowly available sulphur include sulphur supers and longlife sulphur supers.

Trace Elements: As a guide the table below indicates the amount of additive (containing the trace element) which would normally be added to one tonne of fertiliser mixture, and the amount of the element which would be supplied (to one hectare) if the application rate of fertiliser was 250kg per hectare. Trace Element

Form of additive

Additive / tonne

Element / ha

Boron

Sodium borate

25kg

0.94 kg B / ha

Cobalt

Cobalt sulphate

1.5kg

0.053kg Co / ha

Copper

Copper sulphate

25kg

1.56 kg Cu / ha

Selenium

Sodium selenate prills

4kg

0.01 kg Se / ha

Molybdenum

Sodium molybdate

0.25kg

0.025kg Mo / ha

Other additives available are Ferrous Sulphate, Zinc Sulphate, Manganese Sulphate, Magnesium Oxide, and Sodium Chloride.

176

Lime

Ravensdown Ltd: Lime $ / tonne

Track Rock $ / tonne

Ex Balfour, Southland

$46.50

Ex Dipton, Southland

$35.90

$17.26

Ex Geraldine

$37.50

$16.75

Ex Ngarua, Takaka

$33.00

Ex Browns Dannevirke $26.37 Ex Greenleaf, Dargaville $26.50 Ex Ravensdown Supreme Lime, Te $36.00 Kuiti Supreme Aero Lime Ex Te Kuiti $41.62 Ex Websters, Havelock North $28.46 Ex Mata Ravensdown.co.nz Nitrosol Ltd: 2023 prices Microlime – ultra-fine lime powder ground to 10 micron. Mixed into a slurry with water

$11.17 $16.75

Microlime

25kg

$17.50

25 kg

$9.50

$12.18

Nitrosol.co.nz Egmont Commercial Ltd: Dolomite Lime Egmontcommercial.co.nz

177

Fertiliser Spreading / Application Costs Ground Spreading

Team Wealleans (Waikato / BOP) Fertiliser and Lime kg / ha

$/tonne Horticulture

$/tonne Pasture

100

$1,594.20

$204.15

150

$1,062.69

$136.14

200

$797.12

$102.05

250

$637.68

$90.51

300

$531.53

$75.80

350

$455.47

$74.51

400

$398.55

$73.23

450

$341.01

$71.94

500

$318.85

550

$289.92

600

$265.61

650

$245.19

700

$227.73

750

$212.52

800

$199.28

850

$187.49

900

$177.12

950 1000 1250 1500 2000 2500 Spread Compost Min Spread

$167.80 $159.42 $127.53 $106.18 $79.72 $63.77 $264.42 $306.53

Wealleans.co.nz

178

$70.64 $69.39 $68.12 $66.82 $65.51 $64.25 $62.93 $61.69 $60.37 $59.15 $57.81 $38.44 $37.15 $36.63 $32.60 $306.53

Canterbury:

Boag’s Contracting (Rakaia) charges a flat rate of $15.50 per hectare for cartage and spreading for rates of up to 600kg per ha. Above that, prices vary depending on the rate. Over 600kg/ha would be $22/ha carted and spread. Under 3 ha is $27/ha. Fixed Wing Spreading The cost of aerial spreading of fertilizer varies greatly and depends very much on the location, condition of the airstrip, the rate of climb required, the weather and the rate of application. Most firms prefer to quote for individual situations rather than publish fixed rates. For the aerial (fixed wing) spreading of superphosphate and lime, the following are approximate costs. Note that prices will go up with fuel prices increases. Southland: Piston powered fletcher aircraft $1,700 per hour 12 tonnes per hour

Canterbury: Superphosphate

$80 to $120 per tonne

Lime - rate 1 tonne per ha

$70 to $100 per tonne

NZ wide: Superphosphate Lime Urea (100kg/ha)

from $97.00per tonne from $75.50per tonne from $19.35per hectare

Palmerston North: Superphosphate Lime

250 kg per hectare application $79.50 to $117.30 per tonne $64.25 to $96.40 per tonne

Wairarapa: 2016 prices Superphosphate Lime

$80 to $90 per tonne $65 to $75 per tonne

179

Helicopter Helicopter spreading depends on the application rate, block size and positioning distance. Auckland Hawkes Bay

$350 per tonne at 100kg per ha H500 (or variants) / B 206B

$1,800 per hour

AS 350

$2,300 per hour

Marlborough

$300 - $350 per tonne Vineyard fertiliser

Canterbury

Approx. $240 to $300 per tonne

- lime

$120 to $300 per tonne

superphosphate

$180 to $350 per tonne

Marlborough Helicopters note that discounts may be given on large treatment areas Hawkes Bay Helicopters note that rates may increase if jet fuel prices climb again.

180

Testing of Soil, Water, Plant and Feeds

R.J.Hill Laboratories Ltd. Pasture Soil - Basic Soil profile (pH, Phosphorus, Potassium, Calcium, Magnesium, Sodium, Cation Exchange Capacity, Base Saturation, Volume Weight) + SO4-S is $86 per sample

Mixed Pasture Profile - (Nitrogen, Phosphorus, Potassium, Sulphur, Calcium, Magnesium, Sodium, Iron, Manganese, Zinc, Copper, Boron, Molybdenum, Cobalt, Selenium, Chloride, Crude Protein plus ME) is $130 per sample Feed Profile - Dry Matter, Crude Protein (CP), Ash, Acid Detergent Fibre, Neutral Detergent Fibre, Soluble Sugars, Starch, Crude Fat, Metabolisable Energy (ME), Digestibility (DOMD), includes Lignin, is $78 per sample Hill-labs.co.nz

RavensdownLtd: Soil Testing: Basic Soil Analysis

pH, Olsen Soluble P, Ca, K, Mg, Na, Lab Bulk Density, CEC, Base Saturation Basic + Sulphate Sulphur + Organic Sulphur

Pasture Soil Analysis (incl Lucerne)* Potenailly Mineralisable N (PMN) N that can be potentially released from decomposition of OM $49.00 pH and Olsen P Only Includes sample preparation fee $41.00 Mineral N (Deep Nitrogen Test)

$64.00 $85.00

Ammoniacal N, Nitrate-N, Moisture $50.00

181

Combined Plant and Feed Analysis Suites: Combined Pasture Stand Pasture and Fresh Feed Analysis Analysis Comined Silage Analysis Standard Pasture and Silage Feed Analysis

$171.00

$181.00 Combined Comprehensive Analysis Standard Pasture with separate Clover Only analysis $211.00

Plant Tissue Analysis: Cropping Analysis Basic +Sulphate/Organic Sulphur+Anaerobically Mineralisable Nitrogen Basic Plant Analysis Standard Pasture Analysis Clover/Brassica/Leg ume Analysis Comprehensive Pasture Analysis Plant Petiole Analysis Potato Petiole Analysis Urgent NitrateNitrogen Analysis

Water Testing: Domestic/Drinking Water Analysis

Microbiological/Bact eria Farm Environmental Impact

Heavy Metal Suite

Total N,P,K,S,Ca,Mg,Na,Fe,Mn,Cu,Zn, B Total N,P,K,S,Ca,Mg,Na,Fe,Mn,Cu,Zn,B,Co,Se,Mo Total N,P,K,S,Ca,Mg,Na,Fe,Mn,Cu,Zn,B,Mo

$85.00

$84.00 $124.00 $96.00

Standard pasture analysis completed on mixed pasture. Clover is separated and analysed for clover analysis Total N,P,K,S,Ca,Mg,Na,Fe,Mn,Cu,Zn,B,Nitrate-N P, K, Mg, Nitrate-N

$164.00

Same day toxicity results for early receipts

$50.00

pH,Ca,Mg,K,Na,Zn,Mn,Fe,Conductivity,Total Dissolved Solids, Alkalinity, Chloride, Hardness, Bicarbonate, Free Carbon Dioxide, B, Cu, Ammoniacal N, Nitrate/Nitrate-N Total Coliforms, E.Coli

$135.00

pH, Ammoniacal N, Nitrate/Nitrate-N, Dissolved Reactive P, Total Coliforms, E. Coli. Monitors environmental impact over time on surrounding waterways Animony, Aluminium, Arsenic, Barium, Cadmium, Chromium. Lead, Mercury, Molybldenum, Nickel, Selenium, Uranium

$89.00

182

$96.00 $58.00

$39.00

$93.00

Irrigation

pH, Ca, Mg, K , Na, Zn, Mn, Fe, Conductivity, Total Dissolved Solids, Alkanility, Chloride, Hardness, Bicorabonate, Free Carbon Dioxide, Boron, Copper, Sodium Absorption Ratio. Benchmarks against irrigation critical values to optimise crop production and determine the potential for plant injury. Assesses water quality for long term effects to soil and offers advice on reticulstion and treatment options. Farm Dairy Effluent pH, Ca, Mg, K, Na, Sodium Absorption Ratio, Total N, (FDE) Total Dissolved P, Total S. Assess the value of FDE as a fertiliser and a tool to check land application is within maxium rates recommended by Regional Councils. Trade Waste pH, CBOD, Settleable Solids, Total Suspended Solids Winery Waste pH, BOD, Ca, Mg, Na, Soldium Absorption Ratio, Total N (TKN + NO3), Total P, Total Suspended Solids, Total Discolved Solids. Shareholder prices, additional tests available on request. Ravensdown.co.nzw

183

$115.00

$119.00

$107.00 $192.00

FREIGHT AND CARTAGE Road Transport Rates

Estimated 2023 rates ($ / tonne unless otherwise stated): Indicator Transport Freight rates, as below, due to the current inflationary costs, the rates on the day will be affected by the current cost of Fuel, more often than not there is now a fuel adjusted factor added into or additional to the final cost, which at time of publishing , is approximately +19%. It is advised that before factoring in freight costs, contact the local Transport company for on the day costs. Per Indicator rates 100km trip Tonne Christchurch -Ashburton Bagged lime/fert $65.0 Lime(cart & spread) Bulk Fertiliser Wool (per bale) Bulk Grain Bulk Grass Seed Metal

$21.0 $20.0 $15.00 $28. $34 $18 /m3

Small Goods Rates Weight

per km

Up to 32 kg

$38

102 kg

$38

508 kg

$38

965 kg

$65

Stock ($ / head): category Store lambs Prime lambs Hoggets Store sheep Fat sheep Weaner cattle

Hornby-Local Christchurch - Timaru Christchurch - Ashburton Christchurch - Ashburton Christchurch - Ashburton

Min charge

Christchurch - Ashburton

Per km $2.20 $2.20 $2.20 $3.70 $3.70 $15.00

Yearlings $17.00 18 mth cattle $26.00 2 Year cattle $26.00 Prime cattle $32.00 Deer $11.39 A limited discount on the above prices could be expected for large lines. 184

Per trip

Pipfruit: Nelson Region: due to a large variation in distances to orchard/pack houses/ port, these rates are only a guide. (All rates exclude Fuel adjusted factor(currently19.0%) Orchard/ packhouse/ port

Motueka / Nelson

Pellet, high cube

$21.70

CA bin (controlled atmosphere) / Juice bin

$6.50 / $7.98

Empty CA bin to grower

$1.50-

Empty juice bin to grower

$4.00

Railway Transport Rates KiwiRail:

Rail freight rates vary according to departure and destination point, there is no specific per tonne or per km rate. Please contact local agent for an individual quote.

Inter-Island Ferry Freight Rates

Rates are around $1,200 plus GST for truck and trailer one way. Price is similar for stock. Usual truck and trailer unit is 20 metres.

185

Air Freight Rate

NZ Post Express: (Urgent Courier Service) Air Freight Rates Next Flight Metro (NFM) (Auckland, Wellington and Christchurch) $224.21 for the first 2kg, $20.37 per additional kg. Next Flight Provincial (NFP) / Next Flight Provincial Airport to Door (PAD) $285.33 for the first 2kg, $24.43 per additional kg. Additional Air Service Charges for Auckland / Wellington / Christchurch NFD / ID Next Flight Double Collection / Delivery $34.11 NFB / IB Next Flight Bullet Collection / Delivery $68.22 HG/HG Hazardous Goods Delivery / Airport to Airport $139.87 AC/AD Afterhours Collection / Delivery $65.77 PC/PD Public Holiday Collection / Delivery $131.58 ** Please note that all prices exclude GST** NZ Post Express: (Urgent Courier Service) Metro Same day services are available. See their website for zones and rates. Outside the metro areas will be a direct drive and charged at $3.81 + GST per km.Air New Zealand: International Rates quoted ex

Christchurch1and via Auckland2 These rates are guidelines only and may be subject to additional taxes and surcharges. Please seek pricing directly from Freight Forwarders or the airline. Destination

Perishable Goods

per kg rates 100kg min

Brisbane1

$1.50

Brisbane

$2.65

Melbourne1

$1.50

Melbourne

$2.65

Hong Kong

$3.40

London

$5.50

Los Angeles1

$7.18

Perth

CHC via AKL – PER (No direct CHC-PER rate Direct service AKL-PER

Perth2

$4.14 $3.14

Sydney1

$1.50

Sydney

$2.65

Tokyo

$4.75 186

SEEDS, PLANTS AND PROPAGATION Average Seed costs forecast for 2022/23.

Sheep and Beef (Deer not separated out but often run with sheep and beef)

(per su)

North Island Hard Hill Country Class 3

$1.12

North Island Hill Country Class 4

$1.36

North Island Finishing Class 5

$3.79

South Island High Country Class 1

$3.07

South Island Hill Country Class 2

$2.74

South Island Mixed Finishing Class 8

$14.44

South Island Breeding and Finishing Class 6

$5.20

South Island Finishing Otago Class 7

$2.81

National Class 9

$3.08

Beef and Lamb Economic Survey 2022/23 Seeds - Pasture Ryegrass Agricom

$/kg

Perennial Ryegrasses

Bare

Arrow

$9.20

Base - AR1

$9.25

Base – AR37

$13.06

Expo – AR1

$10.60

Expo – AR37

$10.95

Expo

$13.18

Feast II

$6.00

Governor AR1

$10.10

Legion AR37 1G Grower price

$2.70

Manawa - Lo Endo

$3.00

Marsden AR1

$6.75 187

Superstrike

$16.59

$16.71

Maxsyn NEA4 AR37

$11.45

Moata Gen 1

$3.61

Moata

$2.65

One50 - AR37

$11.60

One50 - AR1

$9.95

Platform - AR37

$11.55

Reason

$13.53

Rely- AR1

$8.90

Samson - AR37

$11.06

Samson - AR1

$8.25

Samson – Low Endo

$6.70

Shogun NEA AR37

$8.20

Trojan NEA2 AR37

$10.60

Vast Tetraploid AR37

$13.15

$17.06

$18.88

Hybrid Ryegrasses Mohaka AR1

$7.88

Mohaka AR37

$9.32

Nui Gen1

$4.16

Ohau Tetraploid - AR1

$7.75

Ohau Tetraploid - Low Endo

$6.00

Supreme Plus - AR1

$8.00

$12.48

$11.15

Annual Ryegrass Jivet 4N Annual superstrike

$7.66

Winter Star II

$4.54

https://www.agricom.co.nz/products/ryegrass

188

$7.69

Barenbrug Perennial Ryegrasses

Bare

Superstrike

Governor AR1 Diploid

$11.79

$15.24

Governor AR37 Diploid

$13.69

$17.14

Govenor LE Diploid

$9.72

Maxsyn NEA4 Diploid

$13.57

$17.02

Maxsyn LE Diploid

$9.83

Array NEQ2 Diploid

$17.02

$20.47

Array LE Diploid

$12.13

Rohan NEA2 Diploid

$10.24

$13.69

Rohan LE Diploid

$8.22

Tyson NEA4 Diploid

$10.75

$14.20

Tyson LE Diploid

$8.86

4front NEA 2 Tetraploid

$13.05

4front LE Tetraploid

$10.01

Viscount NEA4 Tetraploid

$11.85

Vicount LE Tetraploid

$9.55

Hybrid Ryegrasses

Bare

Agricote

Forge NEA

$10.87

$14.32

Forge LE

$9.03

Shogun Hybrid NEA

$9.60

$13.05

Shogun NEA12

$10.06

$13.51

Shogun LE

$8.05

189

$16.50

$15.30

Italian/Annual Ryegrass Hogan tetraploid annual

$4.83

$8.28

Tabu Plus

$7.59

$11.04

www.barenbrug.co.nz

Cropmark Barrier U2

$11.30

Ultra AR1

$11.20

Raider NEA2

$11.95

Avatar NEA

$12.15

Matrix SE

$10.55

Hybrid Ryegrasses Frenzy NEA

$9.65

Italian Ryegrass Appeal

$7.15

Vibe

$7.00

https://www.cropmarkseeds.com/

190

Barenbrug: Bag Size - 25kg

Perennial & Long Rotation

Price / kg

Endophyte

Bare

Price / kg Agricote

Trojan

NEA2 $10.93 $14.26 LE $8.34 $11.67 Alto AR1 $9.89 $13.23 AR37 $11.39 $14.72 LE $8.17 $11.33 Arrow AR1 $9.89 $13.23 LE $7.17 $11.33 Rohan NEA2 $8.80 $12.13 LE $7.25 $10.58 Bealey NEA2 $9.66 $13.00 LE $8.28 $11.62 Viscount NEA $9.95 $13.28 LE $8.51 $11.85 Hogan Tetraploid Annual $4.83 $8.28 Tabu Italian $7.59 $11.04 Shogun Hybrid NEA $9.60 $13.05 Shogun Hybrid LE $8.05 $ NB. Prices are delivered to reseller store in the South Island; please add $0.15/kg for North Island pricing. www.barenbrug.co.nz

White Clover

Barenbrug: Bag Size - 25kg

Bare $/kg

Agricote $/kg

Apex

$14.09

$13.63

Kotuku

$18.86

$16.50

Kotuku Oversow

$12.71

Ruru

$18.29

$15.87

NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. www.barenbrug.co.nz Agricote Clover is a 75% weight build up, therefore the recommended sowing rate is 4kg/ha.

191

Cropmark: Bare $/kg Demand

$15.75

Mantra

$18.35

Agricote $/kg

https://www.cropmarkseeds.com/

Red Clover Cropmark ($/kg)

Bare

Reaper

$16.85

https://www.cropmarkseeds.com/

Barenbrug: Bag Size - 25kg Morrow

Bare $/kg

Agricote $/kg

$20.53

$17.37

NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. www.barenbrug.co.nz

Cocksfoot

Cropmark: Bare $/kg Kainui

$12.10

Vision

$12.48

https://www.cropmarkseeds.com/

192

Tall Fescue PGG Wrightson Seeds proprietary ($/kg)

Superstrike

Bare

$17.00

Easton Max P

$17.00

$13.50

Hummer Max P

$17.00

$13.50

Quantum II Max P Agricom proprietary ($/kg)

Source: New Zealand Grain and Seed Trade Association.

Bromes ($/kg)

Superstrike

Bare

Pasture Brome Bareno – 25kg Bag

$7.53

NB. Prices are delivered to reseller store in the Sth Is; please add $0.15/kg for Nth Is. www.barenbrug.co.nz

Fog Grass Agricom ($/kg)

Prillcote

Superstrike

Bare

Yorkshire Fog

$20.50

Source: New Zealand Grain and Seed Trade Association.

Chicory

Barenburg: ($/kg)

Price / k

501 Chicory – 8kg Bag

$24.61

$39.56

NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. www.barenbrug.co.nz

Cropmark

Chico chicory

https://www.cropmarkseeds.com/ 193

$26.15

Plantain Cropmark ($/kg)

Bare

Oracle

$17.25

https://www.cropmarkseeds.com/

Barenburg proprietary ($/kg)

Bare

Agricote

Captain

$17.88

$21.33

Captain 10kg

$18.00

$21.45

Seeds – Forage Cultivars Forage Oats

Bare

Hattrick Greenfeed Oats – 50kg bags ($/kg)

$1.90

NB. Prices are delivered to reseller store in the South Island; please add $0.15/kg

Pioneer Maize seed $ per 80,000 seed bag. Comes with Lumigen 201 fungicide treatment. P1636 P1253 P0891 P0725 P0640 P0362 P9911 P9400 P9127 38V12 P8805 P8500 P8000 P7524 P7124

$453.90 $450.43 $449.66 $467.47 $474.01 $466.27 $472.24 $443.83 $479.98 $375.55 $455.17 $474.45 $462.06 $451.25 $454.26

www.pioneer.co.nz 194

Rape Cropmark prices $/ kg Pillar Forage

$11.85

. https://www.cropmarkseeds.com/ Barenburg: Invitation

($/kg) Agricote Brassica 1 kg

$26.11

Bare 25kg

$16.50

Pelleted 90k Seeds

$143.92

NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. www.barenbrug.co.nz Turnips PGG Wrightson Seeds proprietary prices ($/kg) Superstrike

Ultrastrike

Gaucho

Bare

Appin (1kg packs)

$23.00

$28.00

$22.00

$13.00

Barkant (1kg packs)

$27.00

$33.00

$28.00

Green Globe (1kg pack)

$20.50

$27.00

$21.00

$12.00

Green Resistant(1kg pk)

$20.50

$27.00

$21.00

$12.00

New York (1kg packs)

$21.00

$27.50

$21.50

$12.50

Rival (1kg packs)

$21.00

$27.50

$21.50

$12.50

Cropmark Marco

$14.65

https://www.cropmarkseeds.com/

195

Barenbrug: Dynamo

Agricote Brassica 1 kg / 5 kg / 25 kg ($/kg) Bare

$22.08 / $21.74 / $21.39

25 kg ($/kg)

$12.19

NB. Prices are delivered to reseller store in the South Is, add $0.15/kg for North Is pricing. www.barenbrug.co.nz

Fodder Beet:

Barenbrug: Robbos 90k Seeds per box

$448.04

www.barenbrug.co.nz

Kales: PGG Wrightson Seeds proprietary prices ($/kg) Superstrike

Ultrastrike

Gaucho

Bare

Gruner (10kg packs)

$23.00

$29.50

$23.50

$14.50

Kestrel (10kg packs)

$23.00

$29.50

$23.50

$14.50

Regal (10kg packs)

$24.00

$30.50

$24.50

Sovereign (10kg packs)

$23.00

$30.00

$24.00

$15.00

Cropmark Coleor

$17.20

Proteor

$17.20

https://www.cropmarkseeds.com/

Barenburg:

Bombardier Kale

Agricote Brassica 5kg/25kg ($/kg) Bare 25kg ($/kg)

$29.27 / $29.15 $19.21

NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. www.barenbrug.co.nz

196

Seeds - Arable Crops Cereals:

Peas:

White Oats

- uncertified

$950 / tonne

Black Oats

- uncertified

$1,000 / tonne

Discovery Wheat (milling)

- certified, Raxil treated

$1,675 / tonne

All Feed Wheats (eg. Savannah)

- Raxil treated

$1,750 / tonne

Barley – Tavern

- Raxil treated

$1,600 / tonne

Ryecorn MD Amilo

- Raxil Galmano

$1,825 / tonne

Marrowfat

$950 / tonne

White

$950 / tonne

Blue

$950 / tonne

Prussian

$950 / tonne

Maple

$950 / tonne

Seeds - Process Crops Peas

$645 / ha

Broad Beans

$490 / ha

Green Beans

$750 / ha

Charging rates are now set according to sowing rate, and equate to a set cost / ha.

Seeds - Turf Grasses Ryegrass:

$ / kg Bare $12.00

Arena Tambour

$12.00

Red

$18.00

Chewings

$18.00

Egmont

$30.00

Fescue:

Browntop:

Source: New Zealand Grain and Seed Trade Association. 197

Coated Seed

The section on seed coating has been removed as it is covered in the previous sections. Very few farmers ask for their seed to be treated.

Vegetable Seeds

Vegetable seeds vary quite markedly in price depending on cultivar and quantity ordered. In the majority of cases, the huge range in price for a particular vegetable is due to the high cost of hybrid species. The following are estimates only.

South Pacific Seeds: -Beet

$83 per 1kg

$722 per 10kg

-Chard

$76-$125 per 1kg

$624 per 10kg

-Kale

$83 per 1kg

$656 per 10kg

-Mustard

$29 to $284 per 1kg

$219 to $2,559 per 10kg

-Pak Choi

$177 per 1kg

$1,592 per 10kg

-Rocket

$105 to $277 per 1kg

$918 to $2,500 per 10kg

$22 to $242 per 100,000

$684 to $9,777 per 2 mil

-Dwarf

$119 to $189 per 5kg

$548 to $709 per 25kg

-Runner

$223 per 5kg

$1,031 per 25kg

Beetroot

$157 per 500g

$1,330 per 5kg

Broccoli

$134 to $204 per 10,000s

$1,209 to $1,836 per 100,000s

-Red

$165 to $210 per 50g

$1,471 to $1,876 per 100,000s

-Green

$127 per 50g

$1,140 per 100,000s

-Chinese

$235 per 10,000s

$2,122 per 100,000s

-Blocky Red

$105 per 1000s

$933 per 10,000s

-Bullhorn

$220 per 1000s

$1,963 per 10,000s

-Baby/bunch

$184 per 250,000s

$695 per million s

Babyleaf

Basil Beans

Cabbage

Capsicum cov

Carrot

198

$148 to $230 per 2,500s

$2,559 to $3,992 per 50,000s

Celeriac

$222 per 5,500s

$834 per 20,000s

Celery

$197 per 10,000s

$4,170 per 100,000s

$43 per 100s

$1,563 per 10,000s

Chives

$51 per 100g

$2,107 per 5kg

Coriander

$22

$171 per 5kg

Chevril

$31 per 100g

$1,249 per 5kg

Cauliflower

Chilli

-White

Var

Cucumber

-Field

$24 per 1,000 s

$208 per 10,000s

Cucumber

-Covered

$43 to $79 per 100 s

$390 to $720 per 1,000s

$28 per 100g

$1, 022per 5kg

$49 per 1,000s

$442 per 10,000s

Kale

$44 per 50g

$392 per 500g

Kohlrabi

$44 per 1,000s

$3,096 per 100,000s

-Iceberg

$303 to $347 per 10,000p

$2,754 -$3,138 per 100,000p

-Eazyleaf

$70 per 1,000s

$5,642 per 100,000s

-Multileaf

$62 per 1,000s

$4,932 per100,000s

-Cos var

$57 to $68 per 1,000s

$4,347 -$5,500 per 100,000s

Lollo

$56 per 1,000s

$4,520 per 100,000p

-Amaranthus

$64 per 500g

$1,060 per 10kg

-Basil green

$107 per 500g

$1,810 per 10kg

-Beetroot

$21 per 500g

$331 per 10kg

-Borage

$209 per 500g

$3,521 per 10kg

-Broccoli

$22 tio $46 per 500g

$363 to $781 per 10kg

-Cabbage

$32 per 500g

$531 per 10kg

-Coriander

$21 per 500g

$331 per 10kg

Dill Eggplant

Lettuce

Microgreen

-Standard

199

-Cress

$26 per 500g

$437 per 10kg

-Kale

$60 per 500g

$1,000 per 10kg

-Mustard

$21 to $83 per 500g

$219 to $1,393 per 10kg

-Orach

$134 per 500g

$2, 251 per 10kg

-Parsley

$36 per 500g

$609 per 10kg

-Parsley

$36 per 500g

$299 per 10kg

-Pea

$20 per 500g

$ 55 per 10kg

-Popcorn

$20 per 500kg

$150 per 10kg

-Radish

$21 to $27 per 500kg

$218 to $238 per 10kg

-Sunflower

$21 per 500kg

$153 per 10kg

-Swiss Chard

$48 per 500kg

$800 per 10kg

Onion

-Bunching

$56 to $65 per 500g

$2,344 to $4,701 per 10kg

hybrid

-Red

$512 per 100,000s

$10,472 per 2.5million s

$63 to $90 per 10,000s

$4,624 to $6,252 per mil s

Pak Choi Parsnip

-hybrid

$88 per 10,000s

$6,580 per mil s

Peas

-Green

$22 per 1kg

$163 per 25kg

Pumpkin

-Butternut

$135 per 1,000s

$2,900 per 25,000s

-Grey

$113 to $143 per 1,000s

$2,324 to $3,120 per 25,000s

Radish

-varieties

$30 to $34 per 10,000s

$261 to $295 per 1kg

Radish

-Daikon

$105 per 100g

$934 per 1kg

$67 per 500g

$595 per 5kg

Silver Beet Spinach

-varieties

$86 per 100,000s

$795 per mils

Squash

-varieties

$77 to $205 per 1,000s

$1,648 to $4,425 per 25,000s

$128 per 5,000s

$2,240 per 100,000s

$109 to $217 per 1,000s

$1,875 per 10,000s

Sweetcorn Tomato

-Field

200

-Covered

$209 per 100s

$344 to $1,959 per 1,000s

-Rootstock

$46 per 100s

$420 per 1,000s

Turnip

Tokyo

$22 per 25g

$350 per 500g

Watermelon

-varieties

$73 to $186 per 1,000s

$2,829 to $7,320 per 50,000s

Witlof

(indent only)

$POA

Zucchini

-varieties

$108 per 1000s

$3,375 per 25,000s

Southpacific seeds

Flower Seeds / Bulbs / Plants

Seeds and Plants: There can be a wide range in cost of flower seeds, depending on the variety of seed. The following are indicative prices only.

Green Harvest Pacific Ltd: Amaranthus varieties

$10.70/g

Antirrhinum varieties

$21.40- $58.85 /1,000 seeds

Asclepias

$26.75/1000 seeds

Aster (Callistephus)

$13.91-$34.50/1,000 seeds

Calendula varieties

$16.05/g

Campanula varieties

$15/100 seed

Celosia varieties

$16.05-$101.65/1,000 seeds

Centaurea

$21.40/1,000 seeds

Cynara cardunculus

$5.35/g

Delphinium varieties

$2.50 -$7.50 / g

Delphinium belladonna

$10.70-$342.40/1,000 seeds

Dianthus varieties

$74.90/1,000 seeds

Echinacea (White, green cone)

$3.21-$10.70/g

Echinops

$16.05/1,000 seeds 201

Eryngium

$16.05/1,000 seeds g

Eucalyptus

$192.60/1000 seeds

Helianthus (Sunflowers) varieties

$64.20/1,000 seeds

Hibiscus sabdariffa

$128.40/1,000 seeds

Kale

$60.99-$94.30 /1,000 seeds

Lisianthus

$50.29 to $96.00/ 1,000 seeds

Matricaria (Tanacetum)

$6.37/40 seeds g

Molucella laevis

$10.70/1,000 seeds

Stock (Matthiola) varieties

$19.2 to $71.69 / 1,000 seeds

Zinnia

$22.26-$81.80/ 1,000 seeds

Bulbs:

Green Harvest Pacific Ltd: Anemone varieties

$0.45 each

Ranunculus varieties

$0.68 each

Green Harvest Pacific

202

Fruit Trees and Plants Fruit Trees:

Southern Woods: Grade

Price ea

Apples

Bare Rooted to 10L PB18

$38.26 - $60.70

Apricots

Bare Rooted to 10L PB18

$43.48 - $60.70

Cherries

Bare Rooted to 6L pot / 10L PB18

Feijoas

Bare Rooted to 3L / 10L PB18

$13.04 -$31.30

Figs

Bare Rooted to 3L / 10L PB18

$25.22 - $60.70

Nectarines

Bare Rooted to 10L PB18

$43.48 -$60.70

Peaches

Bare Rooted to 10L PB18

$43.48-$56.52/$60.70

Pears

Bare Rooted to 10L PB18

$30.43-$43.48/$60.70

Plums

Bare Rooted to 10L PB18

$43.48 - $60.70

$43.48-$56.52/$60.70

Reduced if bought in bulk, five or more.

Tharfield Nursery Ltd (Katikati): Avocado varieties PB5s

$25.70

Banana Misi luki 3.3L

$12.32

Casimiroa varieties PB5s

$25.57

Feijoa varieties 3l

$13.73

Fig varieties 3l

$10.24

Guava varieties 3ls

$9.06

Loquat PB5s

$21.43

Mountain Pawpaw 3l

$11.47

Pepino 1.9l

$7.73

www.southernwoods.co.nz

203

Citrus:

Southern Woods: Grade

Price ea

Grapefruit / Kumquat

4.7L

$34.78

Lemon - Lemonade

4.7L

$32.17

Lemon - Meyer

3L - 4.7L

Lime vars

3L -4.7L -20L

Mandarin

4.7L

$34.78

Orange

4.7L

$34.78

$24.35-$34.78 $24.30-$34.78 -$195.65

www.southernwoods.co.nz

Nut Trees:

Southern Woods: Grade

Price ea

Almonds

Bare Rooted to 10L/12L

$38.26/$60.70

Hazelnuts

Bare Rooted to 6L/10L

$26.09/$34.78/$60.70

Walnuts

Bare Rooted to 10L/

$86.96/$52.17

www.southernwoods.co.nz

Tharfield Nursery Ltd: (Katikati) Pine Nut 3l

$11.70

www.tharfield.co.nz

204

Olives:

Southern Woods: Grade

100 + ea

Frantoio

3.5L -12L

$29.57-$52.17 ea

$23.65

Koroneiki

3.5L -12L

$21.74-$52.17 ea

Leccino

3.5L -14L

$29.57-$60.70 ea

Manzanillo

3.5L -12L

$21.74 -$52.17ea

www.southernwoods.co.nz

Elliotts Wholesale Nursery: Frantoio / Arbequina/ Leccino

$17.39 each

Plant sales through CJ’s Drive Thru Plant Farm

Tharfield Nursery Ltd: (Katikati) Ascolano, Frantoio, J5, Leccino, Picual varieties 1.9l

$11.58

www.elliots.co.nz Vines:

Southern Woods: Grade Grapes Green seedless

Price ea $21.74

www.southernwoods.co.nz

Tharfield Nursery Ltd: (Katikati) Grape Albany Surprise, Candice seedless, Schuyler, Niagara 3l

$9.06

Passionfruit varieties IL, 1.9L

$4.75-$6.98

Tamarillo varieties 1.9l

$6.34-$8.25

www.tharfield.co.nz

205

Berryfruit:

Tharfield NurseryLtd: (Katikati) Variety

Price

Blackberry

Black Satin 3l

$12.09

Blackcurrant

Magnus 3l

$9.46

Blueberry

Blue Dawn, Blue Magic 3l

$12.72

Boysenberry

$12.09

Cape Gooseberry

1.9 l

$7.38

Cranberry

Bergman, Crowley 1.9 l

$11.23

Hybridberry

$12.09

Loganberry

Waimate 3 l

$12.09

Raspberry

$11.98

www.tharfield.co.nz

Southern Woods: Boysenberries

3L pot

$23.48 each

Blackberries

2.5L/3L pot

$21.74 - $24.30 each

Raspberries

2.5L

$21.74 - $24.35 each

Gooseberries

$21.74 each

Cranberry (True Cranberry & NZ Cranberry) 1L/2.5L

$7.83 - $13.04each

Currant (Black & Red)

$21.74 - $24.35each

Blueberries

2.5L/4L 3L

$21.74 - $24.35 each

www.southernwoods.co.nz

206

Planting / Propagating Expenses Daltons Ltd – Matamata: *Capillary Base Standard planters P140PWTLX*

Total 1.5 to 14.5 litre – pack size 456 to 21

$24.00- $180.20

8.5 to 18.3 cm – pack size 576 to 36

$46.00- $121.00

Square pots P85SJ – P183S Plant labels LB12504 - 1000

125mm, pack size ̴ 1000

$71.50

Plant Support SIMCLIPRING1325

13mm to 25mm – pack size 1,000

$16.94- $37.30

5.5 / 7 cm – pack size 1,575 - 2300

$75.00 & $187.95

Propagation Tubes PSA-T55 - PSAT70 & GC – T70SBK Seedling Trays GC-TRS349X

Suits all punnets 350x295x60

$35.00

4 cell to 8 cell – pack size 516

$142.50 & $153.00

PSA-FERTTRAT

50 cell T500 & T501, 42 & 40

$280.00 - $286.00

PSA-FERT

Fertilpot 4.5, 5, 6 & 7cm– pk size 3000-1,280

$268.50- $384.00

Punnets CH4 to CH6 Propagation Trays

www.daltons.co.nz

207

Primehort: Bamboo Canes Size

Bale Qty

1 – 4 Bales

500

$58.30

90cm (8-10) / (10-12)

500 / 250

$81.15 / $60.40

$65.30 / $48.55

120cm (8-10) / (10-12)

500 / 250

$123.65 / $86.25

$99.50 / $59.45

150cm (10-12)(12-14) / (14-16)

250/200 / 150

$94.20 / $106.20/$82.10

$75.75/ $85.40/$66.05

180 (14-16)(16 -18) / (26 – 32)

150/100 / 30

$99.65 / $83.60/$86.20

$80.15 / $67.25/$69.85

240 (18-20) / (20 - 22)

150/50 / 50

$132.80/$56.00/ $58.85

$106.85/$45.05/ $58.05

$77.60

60cm (8-10)

300 (22-24)

5 – 14 Bales $46.90

$62.85

www.primehort.co.nz

Egmont Commercial: Rigid propogation pad 28cm2 producing 12w Planter bags

Computer labels (unprinted)

$34.44

PB 0.75 to PB 6.5

$32.00 -$98.50/1000

PB 8 to PB 40

$112.00 -$303.20/ 800

PB 60 / PB 95

$66.00 / $145/ 100

White or coloured

$103 per 1,000

www.egmontcommercial.co.nz

Flight Plastics Ltd: Carton

6 Cell Punnet

$0.17 per tray

Cell trays

16ml sq. cell 198

$4.84 per tray

www.flightplastics.co.nz

208

Cosio Industries Ltd: Planter bags

Price / 100

PB ¾ to PB2

$5.31 to $7.97

PB3 to PB6.5

$8.55 to $15.71

PB8 to PB 12

$23.56 to $31.50

PB18 to PB28

$35.70 to $43.08

PB40 to PB95

$61.95 to $199.50

Cosio.co.nz

Transplant Systems Ltd: (prices ex-Auckland) Transplant Systems seedling trays

24-256 cells/ tray

$7.72 - $10.50 / tray

Bumnong

50-288 plug tray

$1.50- $2.00 each

Water absorbent polymers

20 kg bag

$250.00

1 kg pack

$12.47

49 -68mm

$1329 - $479

Transplant Systems planting tubes Kidney-shaped plant holder with harness

$185.00

Dosmatic proportional injector – range of flow rates

From $1370.00

www.transplantsystems.co.nz

209

Growing Medium

Canterbury Landscape Supplies: ex yard. Freight not included Mulch

Price per cubic metre

Arbor Mulch

$36.52

Bark Preium Chip

$91.30

Premium Nuggets

$91.30

Playground Chip/Bark

$78.26/$196.57

Hort Gro Composted Bark

$83.48

Super Cover

$75.65

Black Mulch

$91.30

Chunky Nuggets -50mm+

$91.30

Black Bark

$91.30

Compost/Medium Bio-Blend

$78.26

Garden Gro (Organic Compost)

$73.04

Garden Soil Blend

$73.04

Turf Mix

$83.48

Screened Soil

$52.17

Manured Sawdust

$25.22

Canterbury Landscape Supplies

Egmont Commercial Ltd: Vermiculite medium

6kg bag

$56.02

Perlite Propagating Media

6kg bag

$47.00

www.egmontcommercial.co.nz

210

WEED, PEST AND DISEASE CONTROL Weed and Pest Control – Budget Figures

Depending on farm type, location and other factors, typical weed and pest control costs forecast for 2022/2023 are: Sheep and Beef

(per su)

North Island Hard Hill Country Class 3

$2.70

North Island Hill Country Class 4

$2.32

North Island Intensive Finishing Class 5

$2.39

South Island High Country Class 1

$5.57

South Island Hill Country Class 2

$3.71

South Island Breeding & Finishing Class 6

$7.23

South Island Finishing Class 7

$4.01

South Island Mixed Finishing

$42.10

National

$5.26

Dairy 2021/2022

(per kg MS)

Northland

$0.05

Waikato

$0.03

Bay of Plenty

$0.02

Taranaki

$0.02

Lower North Island

$0.03

West Coast-Tasman

$0.04

Marlborough-Canterbury

$0.02

Otago-Southland

$0.02

National

$0.01

211

Viticulture

(per producing ha)

Marlborough 2022

$1,365

Otago 2019

$522

Source: MPI; Beef+Lamb NZ Economic Service 2022/2023; MPI NZ Vineyard Benchmarking Report 2019 and MPI Marlborough Monitoring Vineyard Report 2022; DairyNZ Economic Survey 2021/2022

For further examples see Section 3, Gross Margins. See individual items in this section for accurate budgeting.

Weed, Pest and Disease Control – General

Some herbicides, fungicides, and insecticides are produced by more than one chemical company and come in a range of strengths. Hence the trade names shown are to serve only as examples of the chemical concerned. No preferential endorsement by Lincoln University is implied, nor is any criticism implied of any chemical that does not appear in this Manual. The following coding has been employed to distinguish between the various Agrochemical companies: CO

Corteva

PGG

PGG Wrightson

O NU Nufarm

212

Orion

Herbicides

For detailed information on products, active ingredients, application and dilution rates and suitability of various chemicals for individual situations, farmers should consult their consultant/farm advisor, local chemical company representative or refer to publications such as the https://www.agrimedia.co.nz/Publications/New-Zealand-NovachemAgrichemical-Manual

Trade Name

Active Ingredient (%)

Unit Size

Retail Price

Associate 600WDG

metasulfuron-methyl (60)

PGG

500g / 2 kg

Atraflow

atrazine (50)

Orion

20 litre

$175.00

Banvine

2,4-D (20)

PGG

1 / 5 litre

$115.00 / $399.00

Gallant Ultra

haloxyfop-P (52)

1 / 5 litre

$430/$1,520.00

Goal Advanced

480g/L oxyfluorfen

1/ 10 litre

$509.00/$683.00

Grazon

trichlopyr (60)

1 / 5/20 litre

Kerb 500F

propryzamide (50)

20 litre

Maestro

MCPA (75)

MCPA

1/20 litre

Paradigm

200g/kg halauxifenmethyl

500g

$1,275.00

Pasture-Kleen Xtra

680g/l 2,4D ester

20 litre

$320.00

Preside

800g/kg flumetsulam

1 / 5 litre

$130.00 / $250.00

Radiate

picloram (15) clopyralid(22.5)

1 / 5 litre

$209.00/$750.00

Rexade Go-Dri

50g/kg halauxifen

2 kg

$79.99 / $169.00

$190/$660/$830.00 $1,980.00 $299.00/$450.00

$750.00

+ 150g/kg pyroxsulam Starane Xtra

333g/l fluoxypyr

5 / 20 litre

$450.00 /$1,150.00

Tordon BrushKiller

picloram (10), triclopyr (30), aminopyralid (0.8)

1/5/ 20 litre

$215.00/ $650.00/$890.00

Tordon 2G

picloram (2)

5 / 20 kg

$220.00 /$575.00

213

Tordon PastureBoss

30g/l aminopyralid

Trimec

mecoprop (60), MCPA (15), dicamba (1.87)

Versatil PowerFlo

clopyralid (30)

+ 200g/l triclopyr

1/5/

$180.00 /$520.00

20 litre

$1310.00

Rural Co

20 litre

$650.70

1/5 / 10 litre

$315.00/$820.00/ $1,569.00

Insecticides

For detailed information on products, active ingredients and application and dilution rates, and for suitability of various chemicals for individual situations, farmers should consult their local Chemical company representative or refer to publications such as the https://www.agrimedia.co.nz/Publications/New-Zealand-Novachem-Agrichemical-Manual

Trade Name

Active Ingredient (%)

Code

Unit Size

Price

Actellic Dust

pirimiphos-methyl (20)

10 kg

$175.00

Actellic

pirimiphos-methyl (50)

1 litre

$95.00

Chlorpyrifos 500EC

chlorpyrifos (50)

Farm

20 litre

$454.99

Diazinon 800 EC

diazinon (80)

20 litre

$425.00

Dimilin 2L

diflubenzuron (24)

Spray

5 litre

$454.30

source

shop Entrust Naturalyte

240g/l spinosad

1 litre

$1,077.39

Exterm-An-Ant

Boric acid(8) Sodium borate(5.6)

Farmlands

100ml

$14.50

Fenamite Miticide

50g/l fenpyroximate

1 litre

$381.74

Gesapon 20G

diazinon (20)

22 kg

$416.52

Karate Zeon

lambda-cyhalothrin (25)

1 litre

$390.43

Lannate

methomyl (20)

5 litre

$294.78

214

Lorsban 50EC DOW

Farmsource

20 litre

$372.00

Lorsban 750WG

chlorpyrifos (75)

3 kg

$416.52

Mavrik ADAMA

taufluvalinate (24)

Rural

1 litre

$199.70

25 kg

$339.99

Co Mesurol Pro

methiocarb (2)

Farm source

NO Ant Gel

Boric acid (5)

PGG

60g

$15.99

Orthene

acephate (94.5 – 99.1)

UPL

1 kg

$112.17

Pirimor

pirimicarb (50)

1 kg

$78.25

Silo Smoke

permethrin (13.5) potassium chlorate (12.7)

UPL

31g

$49.99

100g

$69.56

Sparta

120g/kg spinetoram

Rural Co

5 litre

$1,829.00

Success Naturalyte

120g/l spinosad

1/5 litre

$265.22/$1,042.61

Transform

240g/l sulfoxaflor

1/5 litre

$381.74/$1,712.17

Molluscicides Primehort:

Trade Name

Active Ingredient (%)

Code

Unit Size

Slug Out

metaldehyde (18)

10 kg

www.primehort.co.nz

215

Price $95.00

Fungicides Trade Name

Active Ingredient (%)

Code

Unit Size

Price

Acanto

picoxystrobliurin (25)

PGG

5 litre

$POA

Acrobat MZ

dimethomorph (9) mancozeb (60)

10 kg

$346.96

Aliette WG

fosetyl-aluminium (80)

1 kg

$103.48

Amistar 250 SC

azoxystrobin (25)

PGG

20 litre

$1,479.00

Cereous

triadimenol (25)

5 litre

$190.43

Curzate

600 g/l cyanoacetamide-oxime

1 kg

$169.57

Folicur 430SC

terbuconazole (43)

Rural CO

10 litre

$640.80

Kocide

cupric hydroxide (30)

10 litre bag

$346.96

Monceren DS

pencycuron (12.5)

1 kg

$47.82

Monceren IM DS

pencycuron (12.5) imazall (0.6)

1 kg

$52.17

Octave

prochloraz (46.2)

1 kg

$173.04

5 kg

$181.74

Ridomil Gold MZWG

metalaxyl-M (4), mancozeb (64)

Rovral Flo

iprodione (25)

5 litre

$216.52

Scala

pyrimethanil (40)

10 litre

$407.82

Score 250 EC

difenoconazole (25),

5 litre

$329.57

2-pyrrolidinone, 1-methyl (12) Sportak EW

prochloraz (45)

5 litre

$190.43

Sumisclex 500SC

Procymidane (50)

Rural Co

10 litre

$1,193.60

Topas 200 EW

penconazole (20)

1 litre

$155.65

Topsin M-4A

thiophanate methyl (40)

5 litre

$164.34

Vitaflo 200

carboxin (20) thiram (20)

Rural Co

20 litre

$961.40

Zorvec Enicade

100g/l oxathiapiprolin

5 litre

$1,050.00

216

Algaecides

PGG Wrightson Ltd: Trough Tablets

Copper & Zinc Sulphate

$21.73

Rabbit / Rodent / Opossum Control

Farmlands (Pest Off): Possum Control:

Pack Size

Unit Price

Possum bait

10kg

$82.17

Possum bait without bait station

3kg

$49.13

Rodent Control: Rodent pellets

350g /3kg

Rodent bait station without bait

$13.00 / $53.87 $30.87

Rodent Blocks

500g /3kg/6.5kg

Mouse trap(pr)/mouse bait station

2 packet

$20.83/$74.74/$148.26 $8.91

www.farmlands.co.nz

PGG Wrightson Ltd: Trade Name

Pack size

Pindone Rabbit Pellets

2kg/10kg/25kg

Pindone Possum and Rat Pellets

2 / 10kg

Rodent Blocks Rodenticide

3kg

$89.99

Rabbit Bait Stations

Large

$37.99

Rodent Bait Station Generation

Medium/Large

Good Nature Smart Trap Kit Possum / Cat Cage Acto

Unit price $59.99/$169.99/$289.00 $64.99 / $159.00

$37.99/$54.99 $199.00

1 door

www.pggwrightson.co.nz

217

$125.00

Bird Repellents

Sprayshop:

The Birds Repellent Gel 300g

$23.59

Pestoff treated wheat 1.5kg / 4kg

$54.48/$119.91

Pestoff bird control paste 500g

$62.35

EcoBird Methyl Antranilate

$452.55

www.sprayshop.co.nz

Bactericides Sprayshop: Key Streptomycin

streptomycin (17)

1.2 kg

$216.52

www.sprayshop.co.nz

Wetting, Spreading and Marking Agents PGG Wrightson Ltd: Actiwett

1/5/15 litre

$54.99/$229.00/$559.00

Trakka Red

1/5 litre

$105.00/$389.00

Latron-B

5 litre

$155.00

Nu Film 17

4 litre

$259.00

chlomequat (75) trinexapac-ethyl mepiquat chloride

B S

www.pggwrightson.co.nz

Growth Regulants

PGG Wrightson Ltd: Cycocel Trexel Terpal

218

10 litre 5 litre 10 litre

$115.00 $659.00 $669.00

Adjuvants SprayShop: Spraysmart Result Spray Oil www.sprayshop.co.nz

5/20/200 litre

$65.00/179.00/POA

9.46/56.76 litre

$169.00 / $759.00

PGG Wrightson Ltd: JMS Organic Oil

SprayShop: BB7 Adjuvant

10Litre

$299.58

www.sprayshop.co.nz

Soil Fumigants PGG Wrightson Ltd: Basamid Granules

dazomet (99)

20 kg

$486.08

Penetrants

PGG Wrightson Ltd: Li-1000

1/5 litre

$49.99/$189.00

MAX –Spred Low Foam

20L

Slikka Penetrant

5 litre

$54.99/$209.00

1litre

$39.00

Indole butyric acid

500g

$21.99

gammaindolylbutyric

200 mls / 1litre

$709.00

www.pggwrightson.co.nz

SprayShop: Pennitr8 www.sprayshop.co.nz

Root Forming Hormones Egmont Commercial Ltd: Rootex -P

Primehort: Liba 10,000

219

$55.00 / $195.00

SprayShop: Liba 10,000

gammaindolylbutyric

200 mls

$53.13

www.egmontcommercial.co.nz

Spraying Costs - Aerial and Ground Aerial Spraying by Helicopter and Fixed Wing Each job is taken on its merits, as there are so many variables to consider. These include distance to and from airstrip, climb to treatment area, size and shape of treatment area (small difficult blocks cost more), and general terrain such as obstacle avoidance – trees, buildings and hills. Canterbury: (helicopter) Pasture and crop spraying

$35 to $85 / ha

Brushweed spraying

$100 to $350 / ha

Marlborough: (note prices don’t include chemical) Gorse

$240 to $350 / ha

Pasture weed / bracken / matagouri spraying

$80 to $140 / ha

Vineyard insecticide or fungicide spraying

$55 to $100 / ha

Marlborough Helicopters note that discounts may be given on large treatment areas. Also final price is determined by the application rate required and the total area to be treated

Auckland:( helicopter) Pasture thistle spraying, 60lts water

$40 to $50 / ha

Prices vary from job to job depending on where it is and size of property. Hawkes Bay: Generally the cost works out at around $57.50 / 100 litres of water applied

220

Ground spraying (crops) Rates vary depending on chemical used, application rate and crop being sprayed. Canterbury: Boom spraying - Pastoral

$28 to $32 per ha

Crop Spraying

$23 to $28 per ha

Liquid Fertilisers

$28 to $32 per ha

Specialist crops

$23 to $28 per ha

Process Potatoes

$23 to $28 per ha

Seed Potatoes

$28 per ha

221

SELLING, HANDLING, PROCESSING CHARGES AND LEVIES Yard Fees

These are usually charged on a per head basis and vary between stock and station agents.

Canterbury Vendor

Purchaser

Sheep and lambs

$0.70

$0.30

Prime cattle

$7.00

$3.00

Store cattle

$6.00

$3.00

Prime pigs

$3.00

$1.50

Store pigs

$1.65

$1.00

Bobby calves

$2.75

$1.75

Dairy cattle

$6.00

$3.00

Deer

$6.00

$3.00

Central and Lower North Island: Feilding vendor / purchaser

Sale Yards Sheep

$0.50 for both

Cattle

$3.75 for both

Calves

$3.75 for both

Pigs

222

Stock and Station Agent Commissions Commissions on Stock and Plant Sold Through a Stock and Station Agent

Canterbury: Sale Yards Sheep Prime/Store Cattle

Clearing Sales 6% 6%

Percent Commission

Sheep Store Cattle

6% 6%

Vealers 6% Dairy Cows 6% Bulls Stud 9% Horses 6% Dairy Cattle 6% Stud Sheep/Cattle 6% Pigs 10% Pigs 10% Deer 6% Dogs 6% Goats 6% Plant and Machinery 10% Bobby Calves 10% Deer 6% Stud Deer 9% The above commission rates are for auction sales only and these rates can change. Most rates for private selling are slightly higher. The rates for plant and machinery are a guide only as it depends on the quality of the items and the value. High value can be negotiable.

The schedule below outlines the maximum rates which will apply to auction and private sales. Central North Island: Sale Yards Sheep Cattle Bobby Calves Bulls Stud Deer - weaners Deer - breeding Deer - stud Sundry Plant and Machinery Auctions

Percent Commission 6% 6% 6% 9% 6% 6% 9% 10 - 12.5%

223

Wool Selling Charges Brokers’ Charges

15.0 to 25.0 cents per kg

Greasy Wool Testing –

$83.10 to $85.85 per test per lot

Yield, Mean Fibre Diameter and Colour Brokers’ charges cover receiving, warehousing, weighing, lotting, cataloguing and advertising. Reclassing, binning and inter-lotting are not included. The fee quoted here is an average for the whole country and is likely to vary between companies depending on the services provided and the quality of those services. The greasy wool testing fee should be regarded as a guide only, and may vary depending on the wool breed type, wool testing laboratory, and test method employed. Fees assisting R&D and/or wool promotional activities, may also apply depending upon the selling broker.

Wool Classing Charges Per Hour

Per Head

Cross Bred

$37.80 - $44.10

28c – 44c

Mid Micron and Fine Wool

$43.57 - $59.85

44c – 73c

Goat Fibre Charges / Levy

Mohair Pacific’s classing and handling charges are as follows. Levies are included. All fibres attract the following in-store charges: Classing

55 cents per minute Max charge 1kg/minute over 20kg

Warehouse Fee

30 cents per kg

Marketing

5% on net sold

Mohair New Zealand (Inc) currently has a voluntary levy in place to fund promotion of; education within, research and development of the angora goat / mohair industry. The levy is set at 2% (up to a maximum of $200 plus GST per producer per annum) of the value of mohair sold on their behalf by the two participating warehouses.

224

Velvet Charges The PGG Wrightson Velvet charges for collection, grading, storage and sale costs are: A handling fee of $5.25 per kg & commission of 3.95%.

Livestock Levies

All levy rates shown below are GST exclusive. These are the rates of levy at which the Ministry for Primary Industries will invoice the licensees / operators of abattoirs, meat export slaughterhouses and other premises where livestock are slaughtered for the purposes of human consumption. Note: The TBfree levy applied from 1st of October 2022. Current Levies per head: Bovine - TB Cattle Levy

Adult cattle Beef/Dairy

$5.50/$10.50

Beef + Lamb NZ Ltd TOTAL LEVIES

$5.20 Beef/Dairy

$10.70/$15.70

Levies per head:

Lambs

Sheep

Goats

Beef + Lamb NZ Ltd

$0.75

$3.50

$0.75

$3.50

NZ Pork Industry Board TOTAL LEVIES Note:

Pigs

Adult cattle includes heifers, steers, cows and bulls. Sheep includes hoggets and rams, and other adult sheep.

1. The Beef + Lamb New Zealand Ltd levy is imposed on meat from livestock slaughtered. Accordingly, the B+LNZ levy does not apply to any animal slaughtered where the carcass is entirely unfit for human consumption. That is, the levy does not apply to any animal slaughtered that is wholly condemned for any reason following slaughter up to the point of scales. See also Section 1.8.1 2. The Bovine TB-cattle levy applies only to slaughtered cattle, the carcasses of which are or exceed 40kg dressed weight at scales. As carcasses wholly condemned prior to scales are not weighed (nor arguably completely dressed), the TBfree levy does not apply to any cattle slaughtered that is wholly condemned up to the point of scales. 3. The Pork Industry Board levy applies to all pigs slaughtered, notwithstanding that there may be carcasses wholly condemned as unfit for human consumption. 225

NAIT Levies National Animal Identification and Tracing (NAIT) Scheme As of 1st July 2022 these levies apply The cattle tag levy for 2022 will be $0.97 (excl GST) per tag payable at point of purchase as part of the overall cost of the tag. The slaughter levy for 2022 will be $1.49 per head (excl GST) per tag to be administered by meat processors. The impractical to tag levy for cattle is $13 (excl GST) per head. The impractical to tag levy for deer $13 per animal (excl GST) The impractical to tag levy: Recognises that tag costs and tag levies have not been paid if animals are untagged Covers the NAIT Ltd costs associated with manually processing an untagged animal Acts as an incentive to tag animals wherever practical. The impractical to tag levy was put forward in response to feedback from the sector, and recognises that some animals are just too dangerous to tag. This is a transitional measure and farmers must tag their animals wherever feasible to meet their NAIT obligations. Deer Industry New Zealand Levies Levies effective from 1 October 2022 – 30 September 2023: Velvet (per kg)

Venison (per kg)

Fallow

Other

Fallow

Other

Deer Industry NZ

$0.40

$2.90

$0.095

$0.205

TBfree

$0.39

$0.045

NAIT

$0.08

$0.01

Total

$0.87

$3.02

$0.145

$0.260

The venison levy is paid on all farmed deer going through Deer Slaughter Premises. (Hot, clean carcass weight after removal of condemned parts). A nil levy is charged on all condemned animals, and the levy is waived for animals that are TB reactor positive. Velvet levy is collected on a frozen weight basis, received at a packing house for processing or packing.

226

Dairy Company Shares All farmers who wish to supply milk to a co-operative dairy company need to become a Supplying Shareholder. For Fonterra S uppliers under the Flesible Shareholding capital structure introduced in March 2023, farmers who supply Fonterra need to hold a minimum of one share for every three kg/MS. This means purchase of shares in the company before milk can be sold. Units of the Fonterra Shareholder Fund are publicly listed on the NZ stock exchange. In July 2022 they were trading at $3.46. For Tatua suppliers, ten 50 cents shares must be owned for each kg of qualifying milk solids. On top of that, each supplier must own 1 Milk Supply Entity (MSE) per kg of qualifying milk solids. These are market driven for price and are tradeable between farmers who supply to Tatua .

Herbage Seed Levy The Commodity Levies (Non-Proprietary and Uncertified Herbage Seeds) Order 2020 gives provision for an annually adjusted variable rate on Non-Proprietary and Uncertified Herbage Seed (NPC) varieties. All growers of NPC varieties must pay a levy to the Herbage Seedgrowers Subsection of Federated Farmers which in turn is passed onto Grasslanz to cover the cost of maintaining the publicly owned cultivars. NPC levies c/per kg

FAR Rate

Grasslands Pawera

0.094

0.9%

Uncertified Red

0.028

0.9%

Grasslands Huia

0.030

0.9%

Uncertified White Clover

0.023

0.8%

Grasslands Manawa

0.032

0.9%

Grasslands Moata

0.031

0.9%

Grasslands Nui

0.008

0.9%

Grasslands Ruanui

0.037

0.9%

Grasslands Tama

0.031

0.9%

Uncertified Ryegrass

0.009

0.9%

Cultivar Red Clover

White Clover

All Proprietary Ryegrass

227

Arable Crop Growers Levies

United Wheatgrowers (NZ) Ltd: Wheat insurance levy - $3.75 per tonne, on wheat only. (Valid from 1st February 2023 to 1st February 2024).

Foundation for Arable Research Pursuant to section 4 of the Commodity Levies (Arable crops) Order 2018 a levy is payable by the producers of any arable commodity grown in New Zealand. Foundation for Arable Research Incorporated has determined the levy for 1 January 2023 to 31 December 2023 to be: Herbage and amenity seed 0.9% of sale value All other grain and seed crops (cereals, pulses etc) 0.9% of sale value Open pollinated vegetable seed crops 0.9% of sale value Hybrid vegetable seed crops 0.6% of sale value Onion seed crops zero rated

Cereal Silage Levy Pursuant to section 4 of the Commodity Levies (Cereal Silage) Order 2018 a levy has been imposed on and shall be payable by, the producers of any cereal silage commodity grown in New Zealand. Foundation for Arable Research Incorporated has determined the levy rates for 1 January 2023 to 31 December 2023 will be $10.00 per ha harvested. Maize Levy Pursuant to section 4 of the Commodity Levies (Maize) Order 2018, a levy has been imposed on, and shall be payable by, the growers of any maize seed sold for sowing. In accordance with section 11 of the order, the Foundation for Arable Research Incorporated has determined the rate of the levy for July 2023 to June 2024 to be: Maize – $1.00 per 10,000 seeds. It is compulsory for growers to pay the levy on all grain and seed grown (except maize), at the time that it is sold or used on farm (eg fed to stock, whole or processed).

Seed Royalties

Wheat seed for grain production (feed or milling) usually carries an end point royalty which varies between $2.00- $5.50 per tonne depending on the cultivars from End Point Royalties (NZGSTA). Cereal seed for forage (barley, triticale and oats) carry a royalty on seed ranging from $65 to $100 per tonne, and feed barley cultivars a royalty on seed of $100 per tonne. Potato cultivar royalties range from $50 to $80 per tonne of seed, depending on the cultivars. Peas $2.50 to $5.00 and triticale $3.50 and Lentils $7.00

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Horticultural Levies Berryfruit

Blackcurrants: This is levied at a maximum of 4 cents per kg on all blackcurrants produced in New Zealand, under the Commodity Levies (Blackcurrants) Order 2019. Blueberries: These levies apply to all fruit, local market and export. However they are no longer compulsory, but if growers wish to be part of Blueberries NZ Inc and receive the advantages of new varieties, the levies need to be paid. Levies are: 10 cents per kg for the first 30,000 kg 7.5 cents per kg for the next 50,000 kg 5 cents per kg for the next 100,000 kg 3.5 cents per kg for the next 200,000 kg 2 cents per kg over 380,000 kg It is capped at $20,000 per grower.

Boysenberries: Boysenberries New Zealand charge 14c per $100 on their returns to grower. There are no separate levies at this stage for strawberries, blackberries, raspberries or other berryfruit. Citrus The New Zealand Citrus Growers Inc. imposes a compulsory levy on all citrus fruit under the Comodity Levies (Citrus Fruit) Order 2019. The levy rates for the year 01 April 2023 to 31 March 2024 are: Fresh Mandarins

1c / kg

Fresh Lemons, limes, & grapefruit

1c / kg

Fresh Oranges & tangelos

1c / kg

All citrus fruit intended for processing

0.3c / kg

Biosecurity Levy from 01/04/2000

0.5c/kg

Note: There is a compulsory levy order in place for all citrus fruit sold. It is a legal requirement that this levy be paid. These levies fund essential research and development work. The HORTNZ levy is separate and paid in addition to the citrus levy.

229

Summerfruit

Levy on:

Local Market

Nectarines Apricots Peaches Plums Cherries Sold for processing (excludes Heinz Watties Ltd). Biosecurity Levy

1.5% 1.5% 1.5% 1.5% 0.75% 0.5% 0.05%

Summerfruit NZ is a recognised product group under the Horticultural Export Authority (HEA). Any export of summerfruit comes under the auspices of HEA, while the export programme is administered by Summerfruit NZ. Commodities levies (Summerfruit) Order 2020 came into force on 18th of August 2020. Cherry exports represent 71% of tariffs on summerfruit, largely due to a 0.8% tariff into Japan which will phase down to zero in 2023 under CPTPP, and a 30% tariff into India. Exports into India represent only 0.02% of FOB value but contributes 25% of the tariff costs for cherries. There are no tariffs on cherries into the major markets of Taiwan and China. EU tariffs on New Zealand summerfruit are high compared to those imposed on other Southern Hemisphere exporting countries. For example, New Zealand apricots are subject to a 20% tariff while apricots from Chile and South Africa are not subject to any tariff. Tariffs on exports to the EU will be eliminated when the New Zealand-EU FTA enters into force, which is expected in 2024. The cost of tariffs across all crops equates to an average of $95 for each of the 250 growers. Other Fruits

Feijoas

Local market grower

Export market grower

3.0% at first point of sale

Persimmons

7c per kg

Pipfruit NZ has a levy for apples and pears set annually at NZAPI’s AGM with a maximum levy of 1.5c per kg. The levy from the 1st of November 2019 is 1.25c per kg. Biosecurity (Response) Levy under the Order 2020, set the initial levy from 10th of August 2020 at $50 per planted ha per annum. This is invoiced by NZAPI to growers based on registration data. 230

Avocado Industry Council: NZ Avocado Grower’s Association Inc. operates under the Commodity Levies (Avocados) Order 2019, under the Commodity Levies Act. Growers vote annually for the rate of the commodity levey for the following season. Every six years, growers vote on the implementation of the Order, to set the maximum levies that can be charged for the following six years within this legislative framework. The maximum levy for fresh fruit sold in NZ is set at 3% of value at first point of sale, the maximum levy for export fruit is set at 35 cents per export tray, 20 cents to be used for promotions and market development and 15 cents for industry systems. Under the Commodity Levies Order 2019, the maximum levy for avocados exported from NZ is 35c per 5.5kg equivalent. Orchard Levies

Horticulture New Zealand: Orchard Fruit Commodity levies apply to all fruit grown in orchard type conditions except berryfruits, e.g. kiwifruit, pip and stonefruit. The levy rate is 0.14% of the gross sales value of all orchard fruit. Vegetables Vegetables. Including vegetables listed on HORTNZ website and their hybrids grown for commercial purposes except where that vegetable is graded out of a fresh export or fresh domestic line and sent for processing. The HortNZ levy rate for vegetables, is 0.14% (14c per $100 of sales). The Commodity Levies (Vegetable and Fruit) Order 2019 imposes levies for vegetables and for Process Vegetables NZ. These fund HortNZ and the product group Process Vegetables activities. The Commodity Levies (Fresh Vegetables) Order 2019 came into effect on 1 April 2019 and is valid for six years. The maximum rate of the levy is 0.30% of the price received at the first point of sale, for fresh vegetables sold domestically; and 0.20% of the price received by the grower after deduction of all offshore costs (including international freight) for fresh vegetables exported. The maximum rate of levy is exclusive of GST. (Vegetables NZ Inc.) VNZI, manages many activities on behalf of growers including: • • • • • • •

Research and Development Biosecurity and GIA negotiations EPA Agricultural Reassessment NZ GAP VNZ Vegetable Promotions Liaison with growers, other industry partners and government agencies Supporting RMA activities and provision of research information

231

Forest Growers Levy The Forest Growers Levy came into force on 1 January 2014 and was set for six years. Forest growers voted to renew the levy for another six years from late 2019 to 2025. The levy proposal included increasing the maximum levy rate by 3 cents from 30 cents to 33 cents per tonne. The board of the Forest Growers Levy Trust also provided to reduce the lowest levy rate option from 27 cents to 24 cents. The levy rate is 33c per tonne. Each year the Work Programme will be reviewed and a budget for the next year approved. The levy struck for that period may be more or less than the previous year’s levy, but it may not exceed the maximum levy amount of 33c per tonne.

SUNDRY CROPPING AND HORTICULTURAL EXPENSES Grain Drying and Testing Charges

Wilsons Bulk Transport Ltd: Wheat/Barley/Oats: Drying Testing Full milling test Standard test Falling number only Kernal weight only Screenings only Black point only Moisture (NIR) only Protein (NIR) only Test weight only Drying Cereals Peas Grass Buck Wheat Brassica/Linseed/Kale Maize

Price / test $39.85 $28.35 $17.85 $8.40 $6.30 $8.90 $6.85 $7.90 $4.75 Price / tonne $43.00 for first 2% then $7.00 per tonne for every 1% thereafter $43.00 per tonne for first 2% then $7.00 per tonne for every 1% thereafter $63.50 per tonne for first 2% then $12.50 per tonne for every % thereafter $63.50 per tonne for first 2% then $12.50 per tonne for every 1% thereafter $63.50 per tonne for first 2% then $12.50 per tonne for every 1% thereafter $63.00 per tonne for first 2% then $12.50 per tonne for every 1% thereafter

232

Storage Charges

Wilsons Bulk Transport Ltd: Standard storage charges are $0.11 / t / day. Bulk handling into and out of storage, $5.00 per tonne. Individual silage storage lease P.O.A.

Seed Testing Fees

Kimihia Research Centre Laboratory:

Test Type Germination

$34

Fluorescence

$28

Germination and Fluorescence ordered together

$42

Seedborne Endophyte (seed squash) (50 seeds)

$46

Viable Endophyte (glasshouse growout) (50 seedlings)

$60

Developing of ELISA sheets (only part of viable endophyte test method) Developing and analysis of ELISA sheets

$20

Purity & OSD (Bulk Search)

$55

Tetrazolium Test (100 seeds)

$41

Rhizobia Enumeration

$64

Viable Nematode Count

$95

TSW Thousand Seed Weight (aka KWT Kernal Weight)

TWT Test Weight

Moisture

Moisture and Test Weight ordered tog. (generated by same machine) Screenings

Protein

$12

Falling Number

$14

Protein & Falling Number ordered tog. (both tests on 1 ground sample) Vigour

$17 $40

Grain Bulk Search

$20

$32

Price per sample CPT Wheat

$36.00

CPT Barley

$31.00

233

Crates and Packaging Punnets Flight Plastics Ltd: Punnets

T2189

152 x 108 x 63mm

$151.46 per thousand

Punnets

T2346

6 cavity punnet

$165.15 per thousand

Plus Freight. www.flightplastics.co.nz Kiwifruit Tray Component Prices – cost per tray

Zespri International Ltd.: Pack

$0.563

Pallet

$0.089

Pallet Cap & dust cover

$0.016

Polyliner

$0.021

Straps Seals

$0.003 $0.001

EAN label

$0.002

Glue and assembly

$0.026

Corner boards

$0.015

Packing Charges - Horticultural Produce Apples and Pears

South Island contract packing charges for 2018 are $78.50 for apples and $130 for pears waimea bin equivalent.

$ per TCE gross

$ per TCE export

Hawkes Bay

$2.80

$4.47

Nelson

$2.86

$4.11

Avocado (There may be other charges or rebates applicable) Export avocados

$4.65 per TE

Local market avocados

$6.27 per crate

234

Kiwifruit (Note: These are average costs, which vary by pack type.)

Seeka Kiwifruit Industries: Hayward CK (Green) incl reject charges GA (new Gold) incl reject charges NB: Gold has been phased out and replaced by GA

Pack and packaging $1.38 (10% reject) per TE $2.01 (5% reject) per TE

Cool Storage

Cool Storage One Canterbury company charges the following: Blast Freezing (Fresh fruit, vegetables, meat, fish, etc) Depending on volume and sorting requirements, up to 10 cents per kg.

Storage (Depending on volume involved and occupancy period) -

Chilled - up to $20.00 per tonne per calendar month or part thereof.

Frozen Fresh Fruit - $25.00 per tonne per calendar month or part thereof.

Vegetables - up to $20.00 per tonne per calendar month or part thereof.

Meat – up to $28.00 per tonne per calendar month or part thereof.

Fish – up to $22.00 per tonne per calendar month or part thereof.

Sorting/Picking Charges -

charged at 25 cents per carton.

These are extra, depending on requirements.

235

Safety Equipment

Croplands Equipment Ltd: (Freight charges may apply) Tray Mount, 600 L 30mx20mm hose, 3m suction kit & filter

$4,851.00

Levin Sawmakers Ltd: Arborist chainsaw trousers Chainsaw chaps Protector safety hard hat with peltor visor & Class 5+ muffs Protector safety vented hard hat Gloves Safety - Go-Specs II Camo clear or grey Glasses Gumboot

Forestry Chainsaw – Lace Up / Spiked

From $226.09 - $423.48 $248.70-$395.65 $477.39 $136.52-$173.96 $6.09 -$17.30 $8.00 - $82.52 $178.26 / $206.96

Trade Tested: (NB this is an online store. Always check availability & current pricing) Protector Earmuff bluetooth Red band Gumboots women/youth Skellerup Perth Gumboots

$86.09 $73.83 $78.17

N.Z. Safety Limited: - Fire Extinguisher 1kg – 9kg Fire extinguishers Dry Powder

$33.83- $169.91

N.Z. Safety Limited: Overalls -

Cotton range

$70.90

Overalls –Hard Yakka Pollycotton

$64.40 to $185.00

Waterproof clothing, heavy duty - Jacket

$82.84

- Trousers

$35.50

- Rainset

$72.88

Tyvek coverall

$9.90

Ear Muffs

$20.01 / $31.83

Gumboots – Bata and Skellerup range

$54.90 to $225.90

Dust masks Pack 10 Prosafe / Moldex x 20 / Airwave x 10 - Spray kits for pesticides / paint etc

236

$28.90 / $49.90 / $55.00 $539.00 $2,799.00 $73.90/ $486.90

- Portable powered air units no mask/filters / CF22 Filter - Respirator kit – organic vapours / Spraying kit - Promask Full face respirator - Face Shield Hand Protection 500ml/3.78l/20l Eye Protection – goggles

$587.90 $27.90 – 128.90

$5.90/92.40/$461.40 $10.40 to $83.90

Leedsafe: Fire extinguishers (63014, 63011)

1.5kg 2.5kg

Robuck Safety Spectacle Robuck Blackhawk Safety Boot Robuck Polycotton Overall Robuck Gloves Peltor earmuff Safety vest UniSafe hard hat Basic first aid kit Respirator starter kit Please note that these prices are available online only

$86.50 $84.99 $6.08 $86.87 $95.64 $5.21 - $66.99 $84.34 $13.03 -$39.99 $13.99 $23.47 $130.43

Head/Helmet lamps

NZ Safety: (prices include NZ delivery). Headlamp Core Rechargeable

$478.40

Headlamp Vision Recharge

$92.90

237

Protection (crop)

Electro-tek Engineering Ltd: Scarecrow Gun Zon Mark 4 Zon EL08 Electronic Tripod to extend range

- Gun only / - Timer only - Multi shot

$650.00 / $159.00 $1,060.00 From $198.00

Micronet

Crop and frost protection, 2m x 10m / 2m x 50m roll

$69.99 / $229.00

Frostguard frost protection fabric

1.2m x100m

$94.99

2.1m x100m

$149.00

PGG Wrightson:

Biobird 30gm2 Canopy netting - bird protection Insect Screen

4m x 50m 5m x300m / 15m x 300m 10m/50m

$139.00 $789.00 / $2,349.00 $84.99 / $489.00

Frost Protection

New Zealand Frost Fans Ltd: FrostBoss Frost Fans Powered by John Deere or Perkins engines

Price incl orchard mapping, engine & cabinet, concrete foundations, tower, gear boxes, blades, installation of complete frost fan, client training, backup service / support

FrostBoss C49 frost fan

Auto start

Approx $62,500.00

FrostBoss C59 frost fan

Auto start

Approx $67,500.00

Price does not include any local building or resource consents. Tarpaulins, Silage / Hay Covers and Wraps

Straitline Canvas Ltd: Trucks:-

-Nylon PVC tarpaulin $22.50 / m2 -CS12 canvas tarpaulin $42.00 / m2 NB for larger freight tarpaulins (>6m wide) shortening lugs need to be added at $9/m2 extra.

Tarpaulin Makers (B.O.P): All tarps have reinforcing and eyelets around the perimeter Ripstop PVC

Size 6m x 6m 7.4m x 7.4m 6m x 10m

$612.00 $930.92 $1020.00 238

Manufactured in 700gsm Ripstop PVC. Pextra

Size

3.6m x 3.6m $171.96 7.2m x 3.6m $298.08 7.2m x 7.2m $596.16 Manufactured in 285gsm Maxlite material which is a high grade PE blended coated fabric

Farm Source: Silage covers:

18m x 50m (heavy Agtuff)

$970

15m x 30m

$483

18m x 300m (B/W 150um) Balewrap Balenet

1.23m x 3,000m 750mm x 1,500m green

Agtuff 12m x 300m / 18m x 300m (Bulk Rolls)

$563 $273 $2,670.00 / $4,441.00

Silage tape 96mm

$18.00

Hay Tarpaulin 500 gsm 10 x 6 m Hay Tarpaulin

$4,260.00

$825

500gsam 12 x 9 m

$1,350

Silage Inoculant

Pioneer: Pioneer pasture specific silage inoculant: Pioneer maize specific silage inoculant: Pioneer 11CFT Maize 250t bottle Pioneer 11H50 Lucerne

250 tonne bottle $2,019.99

250t bottle

50 wet tonnes

$314.99

Pioneer Multi Crop 1174

40g bottle

50wt

$131.90

Pioneer Multi Crop 1174

200g bottle

250wt

$659.50

Farmsource 2023.

Pioneer2023.

239

Pollination Hive Hire

Canterbury: Vegetable seeds i.e. Cabbage, Cauliflower & Radish

$250 per hive

Clover

$200 per hive

Carrot

$255 per hive

Returns for pollination services provided by honey bees

$ per hive 2021/22

Pipfruit, stonefruit, berries

$100 to $200

Kiwifruit: Hawkes Bay

$150 to $250

Auckland

$150 to $225

Bay of Plenty

$165 to $245

Nelson

$150 to $190

Avocados Northland and BOP

$150 to $200

Summerfruit Otago and Hawkes Bay

$110 to $200

Crops under cover (mainly cherries)

$200 to $250

Canola & small seeds (carrots)

$200 to $250

Source: MPI / AsureQuality 2022 Apiculture Monitoring Report. Hive Purchase Perfect condition hive, includes 2 brood boxes, floor lid and 1 honey super, no bees, assembled and paraffin waxed. $200 to $300 Reasonable condition hive, includes 2 brood boxes and 1-4 honey boxes with bees (including valuations as part of business sale) $100 to $600 Reasonable condition single brood nest hive (no supers) $100 to $300

240

4 - 5 frame nucleus, new hives includes nuclei box $80.00 to $250 Bumble Bees Zonda Beneficials: per hive (freight will be advised at the time of ordering). Home garden hive $90.20 Medium hive $159.50 750 to 1100sqm Large hive $170, 1100 to 1500sqm Outdoor large $156.20 Sticky traps for insects: Yellow Large – Silverlure $39.93 Pack 10/12 pieces Yellow Small – Silverlure $ 13.31 Pack 10/12 pieces Blue Large – Silverlure $36.30 Pack 10/12 pieces Blue Small – SilverLure $12.10 Pack 10/12 pieces These are all excluding GST, also the Hive prices are excluding.

Weighbridge Charges

Tailored Energy Solutions Ltd: Public weighbridge Single weigh (truck or trailer): $20.00 + Gst Double weigh (Truck & Trailer): $35.00 + Gst

Parkside Quarries Ltd: (Oamaru Stone) Certified weighbridge available at $7.50 per weigh for outside products eg logs, barley etc.

GPS Units Tabula:

TML TotalVision Essentials

In-Cab tablet providing live tracking and Tabula Online job management for agriculture contractors.

$179 p/m

TML TotalVision Professional

In-Cab tablet providing full vehicle guidance for tasks including spraying and spreading, live tracking and Tabula Online job management for agriculture contractors. Controller support also included

$329p/m

TML FarmVision

In-Cab tablet providing full vehicle guidance for tasks including spraying, spreading, and irrigation shifts. Paired with Tabula Online for proof of placement and application records.

$6,000

TML Rugged

TML Farmvision unit with a weather proof rugged case for mounting on quad bikes etc.

$7,500

241

$3,948 p/a

TMi30 Irrigator

Travelling Irrigator Monitor, for auto shutdown of effluent irrigators, and mapping of applications

Tabula Online

Tabula Online mapping and job management annual fee

$600 p/a

GC-1 Spread Controller Kit

Tabula Ground spread controller kit, fully integrated with TML Professional and FarmVision solutions. Features include one touch bout reduce, variable rate prescription, and full spinner and floor control

$50 p/m (TML Pro)

Tabula Ground spread controller kit, fully integrated with TML Professional and FarmVision solutions. Features include variable rate prescription, support of up to five switches for section control, and job management

$50 p/m (TML Pro)

GC-1 Spray Controller Kit

$6,000

$2,500 (FarmVision)

AirVision TML-A Kit

In-cockpit tablet solution, integrated with Tabula Online, providing GPS navigation, rate control, placement guidance, and proof of placement and application reporting. Includes AirVision full kit including tablet, lightbar, and junction box

$17,000

AirVision TML-A Upgrade

In-cockpit tablet solution, integrated with Tabula Online, providing GPS navigation, rate control, placement guidance, and proof of placement and application reporting. Includes AirVision tablet only

$7,000

Tabula Online

Tabula Online mapping and job management annual fee

$1,800 p/a

LBI Lightbar

LBI Internal Lightbar

$2,500

AC-1 Spray Controller Kit

Tabula Aviation spray controller, fully integrated with AirVision solutions. Provided with either an Arag or Turbines Inc flowmeter.

$6,000

AC-1 Spray Controller Upgrade

Tabula Aviation spray controller, fully integrated with AirVision solutions. Includes either 2-pin or 3-pin flowmeter wiring loom and power/comms loom

$2,500

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REPAIRS AND MAINTENANCE Expenditure on repairs and maintenance varies widely between farm types, districts and seasons. Farm profitability or otherwise is very often a major factor. The data below should be used as a guide only.

Total Repairs and Maintenance per Farm/Orchard Forecast for 2022/2023 Sheep and Beef

(per su)

North Island Hard Hill Country Class 3

$10.80

North Island Hill Country Class 4

$11.16

North Island Intensive Finishing

$12.39

South Island High Country Class 1

$6.81

South Island Hill County Class 2

$7.18

South Island Breeding and Finishing Class 6

$8.75

South Island Intensive Finishing Class 7

$11.23

South Island Mixed Finishing

$18.44

National

$10.31

Dairy 2021/22 National

(per cow)

(per kg MS)

$173

$0.41

Deer 2014 data but as often farmed with Sheep and Beef, it could be extrapolated from Sheep and Beef recent data above

(per su)

North Island

$5.33

South Island

$5.80

Arable 2017 data

(per ha)

Canterbury

$174

Horticulture

(per ha)

Kiwifruit 2014 data

$1,600

243

Hawkes Bay Pipfruit 2015 budget

$1,250

Nelson Pipfruit 2015 budget

$1,375

Viticulture

(per producing ha)

Marlborough 2022

$1,300

Otago 2019

$774

Source: MPI; Beef+Lamb NZ Economic Service 2022/2023; DairyNZ Economic Survey 2021/2022; MPI Vineyard Monitoring Report 2022 and Viticulture Gross Margin Report 2019.

Farm Improvements, Plant and Machinery Where precise information is unavailable, expenditure on repairs and maintenance of farm improvements and plant may be estimated by using the following rates: % capital value per annum. Dwellings Farm buildings Piggeries Water supply Implements and plant Roads, tracks & culverts Yards and dip Fences

1 to 3% 1 to 3% 2 to 5% Up to 5% 5 to 15% 1 to 5% 2.5 to 5% 1%

depending upon the age of the building

depending on water type depending upon use depending on locality

244

VEHICLE EXPENSES Total Vehicle Running Expenses

The following figures can be used as estimates for budgeting purposes where details are not available for the farm or orchard. Depending on the locality and type of property, typical total vehicle running expenses (including, oil, repairs and maintenance, registration etc) but excluding fuel costs on all farm vehicles including private car use, are as follows: Forecast 2022/023 Sheep and Beef

(per su)

North Island Hard Hill Country Class 3

$2.89

North Island Hill Country Class 4

$3.37

North Island Intensive Finishing Class 5

$5.22

South Island High Country Class 1

$3.19

South Island Hill Country Class 2

$3.19

South Island Breeding and Finishing Class 6

$4.91

South Island Intensive Finishing Class 7

$4.27

South Island Mixed Finishing

$16.16

National

$4.23

Dairy (Includes fuel) 2021/22 National

(per cow)

(per kg MS)

$71

$0.17

Deer 2014 data but as often farmed with Sheep and Beef, it could be extrapolated from Sheep and Beef recent data above (per su) North Island

$2.21

South Island

$2.91

Arable 2017 data

(per ha)

Canterbury

$178

245

Horticulture

(per ha)

Kiwifruit (including fuel) 2014 data

$1,700

Hawkes Bay Pipfruit 2015 budget

$400

Nelson Pipfruit 2015 budget

$600

Viticulture

(per producing ha)

Marlborough 2022

$90

Otago 2019

$574

Source: MPI; Beef+Lamb NZ Economic Service 2022/2023; DairyNZ Economic Survey 2021/2022; MPI Viticulture Gross Margin Report 2019 and MPI Marlborough Vineyard Monitoring Report 2022.

Tractor Running Costs A useful calculation to determine the fuel requirements of a tractor is 0.2 litres per kilowatt hour but fuel usage varies widely depending on implement being used. Guide to Tractor Fuel Requirements for Individual Field Operations. Operation

(Approx) Fuel Consumption litre/ha

Subsoiling Ploughing Heavy cultivation Light cultivation Rotary cultivation Fertiliser distribution Grain drilling Rolling Mowing, tedding, baling Forage harvesting Spraying

15 21 13 8 13 3 4 4 3 15 1

Source: "Choosing and Using Farm Machines", B. Whitney, 1988. Note these data should be compared with – http://tractortestlab.unl.edu/ Nebraska Tractor Test Laboratory, based at East Campus of the University of Nebraska, Lincoln, USA. Guide for fuel consumption under minimum cultivation and normal cultivation conditions.

246

(This guide is based on 0.2 and 0.3 litres per kW hour and may differ significantly from your own tractor) Tractor Power HP

Minimum Cultivation

(0.2 l per kW hr)

Normal Cultivation

(0.3 l per kW hr)

11.5

2.3 l / hr

3.5 l / hr

22.0

4.4 l / hr

6.6 l / hr

30.0

6.0 l / hr

9.0 l / hr

37.0

7.4 l / hr

11.1 l / hr

48.0

9.6 l / hr

14.4 l / hr

55.7

11.1 l / hr

16.7 l / hr

60.0

12.0 l / hr

18.0 l / hr

103

77.2

15.4 l / hr

23.2 l / hr

160

119.0

23.8 l / hr

35.7 l / hr

200

149.1

29.8 l / hr

44.7 l / hr

235

175.2

35.0l / hr

52.6 l / hr

290

216.3

43.3 l / hr

64.9 l / hr

Total Tractor Running Costs – the following examples are based on a self use calculator, Iowa State university research Ag Decision publications. This is available https://aginfo.lincoln.ac.nz

247

1) 78.3 kW (105 HP) 4WD Tractor Ownership & operating costs per: Tractor purchase

$160,000

Est value at end of depreciated value end of ownership

$61496

Interest

%7.50

Price of diesel in calculations

$2.85

Ownership costs

$ per year

Interest & depreciation

$25,598

Insurance

$1,107

Total ownership costs

$26,706

Operating costs

$ per year

- Repairs

$2,938

Fuel & Lubrication

$8,828

Labour

$16,674

Total operating costs

$28,439

Total ownership & operating costs

$55,145

248

2) 182.7 kW (245 HP) 4WD Tractor

Ownership & operating costs per: Tractor purchase

$236,000

Est value at end of depreciated value end of ownership

$90,706

Interest

%7.50

Price of diesel in calculations

$2.85

Ownership costs

$ per year

Interest & depreciation

$37,757

Insurance

$1,634

Total ownership costs

$39,391

Operating costs

$ per year

- Repairs

$4,333

Fuel & Lubrication

$8,828

Labour

$16,674

Total operating costs

$28,439

Total ownership & operating costs

$69,225

249

Vehicle Running Costs 2023 The following table is based on average annual costs and values, at the time of editing, and include average pricing. As such this table should only be used for indicative interpretation, if more specific detail is required then, first use the following URL Links, followed by current market updates. IRD

https://www.ird.govt.nz/search#q=vehicle%20rtunning%20costs&t=All

NZ Automobile Association https://www.aa.co.nz/searchresults/?query=running+costs+of+vehicles Average distance travelled

14,000 km per year,

medium sized vehicle

2001 – 3000 cc.

the data for the electric vehicles is limited to the number of vehicles available, a large cost component is the increase in interest rates, for all vehicles. The fuel costs are an average at the time of editing . Depreciation

0 – 3years

The costs include.

1) Fixed costs (registration, warrant of Fitness, depreciation & Int). 2) operating costs, (fuel & maintenance) Petrol

Diesel

Hybrid

Electric

Av cost value of Vehicle

$60,000

$80,000

$52,000

$80,000

Value 3rd year

$45,000

$68,000

$68,000 $36,000

Compliance, (wof,Insc,Lic)

$1517

$1,805

$1,618

$2,097

Depreciation + Int year 3

$5499

$6,817

$5,993

$7,343

TOTAL FIXED COSTS

$7,016

$8622

$7,611

$9,440

Litres used / 100km

7.70

8.22

4.36

15.68 kWh/100km

Annual cost

$2906

$2940

$1,600

$505 $0.23/kWh

Road User Charge

$1064

Oil & Tyres

$790

$830

$600

$693

Repairs & Main

$770

$691

$525

$340

TOTAL OPERATING COSTS

$4466

$5525

$2,725

$1,538

250

TOTAL RUNNING COSTS

$11,482

$14,147

$10,336

$10,978

Per Km

$0.82

$1.02

$0.72

$0.78

Increase from 2022

11%

22.33%

24%

IRD Rates: Rates for the 2022-2023 income year The Tier 1 rate is a combination of your vehicle's fixed and running costs. Use it for the business portion of the first 14,000 kilometres travelled by the vehicle in a year. This includes private use travel. The Tier 2 rate is for running costs only. Use it for the business portion of any travel over 14,000 kilometres in a year.

Vehicle type

Tier 1 rate per km

Tier 2 rate per km

Petrol or diesel

$0.95

$0.34

Petrol hybrid

$0.95

$0.20

Electric

$0.95

$0.11

251

Fuel, Oil and Grease Petrol – Oct 2023 Unleaded

(91 octane)

$3.01 per litre

Unleaded

(95 octane)

$3.16 per litre

Diesel – Oct 2023

$2.34 per litre

Note: Petrol and diesel prices are bulk delivered to farm. Prices are for deliveries to Zone 1 (0 to 50km from nearest bulk terminal.) Deliveries beyond Zone 1 are subject to additional freight charges.

Container size Wholesale (delivered)

Oil Superfleet Supreme SAE 15W

200 litre

$1,827.00

18 litre

$228.00

Universal Tractor Transmission Fluid

18 litre

$261.00

Two stroke oil

18 litre

$208.00

200 litre

$1560.00

18 litre

$252.00

18 litre

$255.00

16kg

$354.00

0.450 g ea

$31.40

Hydraulic fluid 46

Antifreeze Grease Heavy duty grease Multi-purpose grease cartridges

252

Tyres and Tubes

Bridgestone New Zealand Ltd: Price range Radial tractor tyres: 85 series 280/85R20 to 520/85R38 Firestone Performer 85

$845 to $3,675

70 series 320/70R24 to 580/70R38 Firestone Performer 70

$1,107 to $3,860

65 Series 440/65R24 to 650/65R42 Firestone Maxi Traction 65

$1,620 to $5,150

Bias ply tractor tyres: 8.3- 24 to 12.4- 36 Bridgestone Farm service Lug

$416 to $1,095

Construction tyres:

$815 to $1,540

10-16.5 to 12-16.5 Firestone Duraforce Forestry tyres: $34,199 to $17,650

18.4-26 to 35.5-32 Firestone Forestry Special Tubes: 400-12 to 18.4-46 Tractor and Forestry tubes:

$17 to $411

Licensing / Road Charges

Re- Licensing Fees - (12 months) as at 1 Jul 2018 (including GST)

Type

Usage

Petrol

Diesel

Private Car/Van

Pvt Passenger Usage – 3,500kg

$103.68

$172.50

up to 3,500kg

$32.48

Trailer Motorbike

61 – 600cc incl

$394.21-$519.867

6-month licences are available and are usually approximately 50% of the 12 month fees.

253

Common Vehicle Transaction Fees Registration Fees: Type

Usage

Petrol

Private Car/Van

Pvt Passenger Usage to 4001cc plus

$206.57-$388.27

Trailer Motorbike

up to 3,500kg 61 – 600cc incl

Diesel $172.50$457.09

$32.48 $394.21-$519.867

6-month registrations are available and are usually 75% of the 12 month fees. Electric Car $227.27 for 12 months. Motor vehicle license online / through an agent: $4.11 / $7.20 Put your vehicle registration on hold $10.40 or $5.50 through an agent. Change of registered person $9.00 Registration MR2A and MR2B $7.39 Cancellation of Registration $9.10

Road User Charges (RUC) (effective since 1 July 2015) Prices from 1st of July 2023. The cost of using New Zealand roads is recovered from road users via levies included in the price of some fuels or via Road User Charges (RUC). A vehicle subject to RUC is any vehicle that is powered by a fuel not taxed at source or has a manufacturer’s gross laden weight of more than 3.5 tonnes (3500kg). Where the manufacturer’s gross laden weight is more than 3.5 tonnes (3500kg) an approved hubodometer must be fitted to a non-lifting axle on the left-hand side of the vehicle. A current RUC licence label must be displayed while operating the vehicle on public roads. Fuels taxed at source are petrol, compressed natural gas (CNG) and liquified petroleum gas (LPG).

254

RUC Description Type 1

Powered vehicles with 2 axles (except type 2 vehicles or type 299)

Powered vehicles with 1 single-tyred spaced axle & 1 twin-tyred spaced axle

Weight Band

$ / 1,000km

Not more than 3.5 tonnes

$76.00

More than 3.5 -not more than 6t

$82.00

Weight of more than 6 t, less than 9t

$167.00

More than 9 tonnes

$352.00

Not more than 6 tonnes

$80.00

More than 6 tonnes - not more than 9t

$126.00

More than 9 tonnes - not more than 12t

$172.00

Any RUC weight more than 12t

$315.00

A transaction fee applies to each licence sale irrespective of the type of licence purchased. The transaction fees for these services (GST inclusive) are as follows: Online at www.nzta.govt.nz/online $4.80 per licence Counter sales $7.80 per licence

Combine Harvester Running Costs Ownership and operating example The following table is an example of ownership and usage costs, the working calculator is available to work out your own costs on https://aginfo.lincoln.ac.nz/ Scenario: 353 kW (473 HP) Header Harvester -: Replaced after 3,000 hours (15 years) 200 hours per year Initial Cost $850,000; Residual Value $182,000

255

Ownership costs per annum:

per Ha

Capital recovery,Deprication,Insc

$94,491

$33.75

R&M

$17,100

$6.11

Fuel & Lube

$13,556

$4.84

Labour

$5,720

$2.04

Total operating

$36,376

$12.99

Total costs

$130,867

$46.74

PROFESSIONAL FEES Accountancy Fees Accountants base their fees on input of time taken in compiling financial statements, tax returns and other services. Some of the reasons why fees vary considerably (time being one of the most important factors) There is no flat fee, a range of factors that will influence charge rates, are: • • • •

•

accuracy of the presentation of farm records presented, form of ownership – individual, company or partnership, and if there is a trust involved, advice on management, financial advice, trial balances, farm comparison analysis (farm surveys), administration undertaken by the accountant, ie GST & PAYE returns, budgetary control, receiver/payee of all income/expenditure, budget/cashflow , management reporting. degree of software support and training involved in setting up and supporting the farmer’s financial systems,

The accuracy, detail and consistency of information provided, is far more important than the method of presentation.

Farm Consultancy Charges There is no set fee Charge out rates, usually on aaplication and discussion, but they can range between $150 to $350 per hour with difficult and litigious projects at > $400 per hour. Travelling expenses can range between , up to $2.50 per km. 256

Land Transfer Fees

Land Information New Zealand charges this fee on all land transactions, such as transfers, mortgages, discharges and related documents. Registration of any paper instrument (transfer, mortgage, discharges and withdrawals) is $180.00 over the counter + $25 counter fee per instrument but $90.00 if electronic. A Title search copy costs $25.00 manually and $6 electronically. A New Title fee is $145 (new computer registers -manual and electronic). All fees are GST incl. “Source: Land Information New Zealand (LINZ) and licensed by LINZ for re-use under the Creative Commons Attribution 4.0 International Licence"

Legal Fees Fees take into account the nature of the job and expenses incurred by the solicitor or law firm. In general they are based on an hourly rates (in the region of $250 to $480 . Anyone seeking a solicitor's help or advice should carefully read the formal engagement letter. Lawyers are also required to charge in accordance with Law Society costing guidelines.

Property Purchase Fees charged vary widely depending on circumstances and how much work is involved. They are generally around $1,000 to $2,000.00 for the average residential property sale/purchase situation, depending on whether finance is required. Lawyers should be able to provide accurate quotes or estimates for residential purchases. Sales and Purchases of farms of whatever type are more difficult to accurately quote, due to the larger number of variables involved. They will generally range between $3000 to $25,000 but sometimes significantly more. Where the vendor is registered for GST and there is a dwelling house on the property, there is deemed to be two supplies – exempt supply (dwelling and curtilage) and a taxable supply (balance of property). The two must be arrived at by an apportionment along IRD guidelines and definitions. This can be completed by a registered valuer or by Darrochs at a cost of approximately $300. An example of where a dwelling and curtilage is required is where a residential use is combined with commercial/industrial use, as in many lifestyle blocks and farms. The GST legislation was changed recently to enable most transactions to be zero rated where both the vendor and purchaser are registered for GST.

257

Real Estate Charges

There is no scale or recommended fee relating to any real estate transaction. However, most agents work on a commission basis. The most common fee structures : Farm Sales: $375 base fee plus 3.75% of the sale price to $350,000 and then 2% thereafter, plus G.S.T, based on the client not paying any advertising costs. Auction Sales (Sales other than mortgagee sales): In general these are levied at the same rate as residential sales. The auctioneer may, in addition and with the vendor's authority, charge to the vendor all auction advertising, flagging, other promotional costs and disbursements. In addition, an auctioneer may levy an offering fee if the property is not sold at auction or, alternatively, seek a term of sole agency after the auction sale to enable a sale to be concluded.

Valuation Charges

One Canterbury valuer’s typical charges are: High Country run

$12,500

Dairy farm small unit

$5,500

Dairy farm large unit

$8,000

Sheep farm small unit

$4,500

Sheep farm large unit

$8,000

Life style blocks

$1,250 to $2,500

Residential Rural townships

$956 to $1,217

Residential Christchurch Charges exclude travel and disbursements.

$739 to $956

Hourly rate

$200 to $300

Excludes GST.

258

Survey Fees

Aurecon NZ Limited: Subdivision of a rural property requires a Resource Consent (Subdivision) application to Council in terms of the District Plan. In conjunction with the Subdivision Consent application additional applications may also be required for Land Use matters, such as Earthworks, Stormwater Discharge, National Environmental Standards (NES), Geotechnical assessment etc. After Subdivision Consent has been granted and the subdivision conditions accepted, a legal Land Transfer Survey is completed so that new Certificates of Titles can be issued. The subdivision consent may include condition reading access, servicing, etc. Survey consultants’ fees for typical subdivisions are charged on a time and expense basis and will vary depending on the location, size and complexity of the property being subdivided. Detailed estimates would be provided, however as a guide the following survey fees are anticipated. Costs to comply with any subdivision consent conditions, such as the provision of access and services, would be additional to the Survey fees. Also there would be additional fees for the Land Use matters, Earthworks, Stormwater Discharge, National Environmental Standards (NES), Geotechnical assessment etc. Fees do not include GST. Survey Fees:Smaller subdivision - typically 2 to 3 lots

$10,000 to $15,000

Medium size subdivision - typically 3 to 10 lots

$15,000 to $50,000

Large subdivisions

from $50,000

Council processing fees

$2,000 to $5,000

Council Development Contributions (costs per allotment as assessed by Council)

Land Information New Zealand Cadastral Survey Fees - electronic Cross Lease CSD – Base fee (no parcel fees apply) - $230. Unit Titles CSD – Base fee with no survey information / with information - $310 / $850 Issuing appellations by endorsement have a base fee of $100 plus $22 for additional parcels. In addition there are solicitor’s fees and costs of complying with Council’s subdivision conditions (eg water supply, access etc). All fees are GST incl. “Source: Land Information New Zealand (LINZ) and licensed by LINZ for re-use under the Creative Commons Attribution 4.0 International Licence"

259

ADMINISTRATION EXPENSES Average Administration Costs

Total annual administration expenses vary widely between farms and orchards. Forecast 2022/23 Sheep and Beef

(per su)

North Island Hard Hill Class 3

$4.22

North Island Hill Country Class 4

$3.36

North Island Intensive Finishing Class 5

$4.87

South Island High Country Class 1

$2.53

South Island Hill Country Class 2

$2.68

South Island Mixed Finishing Class 8

$7.84

South Island Finishing Breeding Class 6

$3.73

South Island Finishing Class 7

$4.53

National

$3.79

Dairy 2021/22 National

(per cow)

(per kg MS)

$60

$0.14

Deer 2014 Data but as often farmed with Sheep and Beef, it could be extrapolated from Sheep and Beef recent data above (per su) North Island

$10.57

South Island

$9.75

Arable 2017 data

(per ha)

Canterbury

$72

Horticulture

(per ha)

Kiwifruit 2014 data

$3,840

Hawkes Bay Pipfruit

$1,655

Nelson Pipfruit

$2,625

Viticulture

(per producing ha)

Marlborough 2022

$365

MPI; Beef+Lamb NZ Economic Service 2022/23; DairyNZ Economic Survey 2020/2021; MPI Marlborough Vineyard Monitoring Report 2022. 260

Telephone and Internet Costs

Spark: (Subject to change, Ts & Cs apply) Charges: incl NZ & Aus calling Ultra Fast Fibre Broadband

Data

Monthly cost

Fibre Plus

Unlimited

$90.00

Fibre MAX Plus

Unlimited

$105.00

Wireless Broadband Basic

40GB

$45.00

Wireless Everyday

60GB / 120GB

Wireless with Unlimited Calling

Everyday/Max/Max Plus

$65.00/ $55.00 $60.00/$80.00/$85.00

Amuri: (Subject to change)

Broadband and Wireless charges: Plan

Data

Monthly cost

Fibre RF Starter

65GB

From $65.00

Fibre RF Go Unlimited

From $85.00

Fibre RF Max Unlimited

From $115.00

Wireless AW Ready

60GB

From $59.00

Wireless AW Set

300GB

From $89.00

Wireless AW Unlimited

From $129.00

Wireless AW Max

From $149.00

4G Urban Unlimited

From $69.00

4G Rural Capped

200GB

From $89.00

4G Rural Unlimited

From $129.00

Set up fees from $199.00

261

Postage

New Zealand Post Domestic Rates: (Prices are GST inclusive)

Standard Post

Medium

Large

Oversize

$2.00

$3.30

$4.60

Bags and Boxes: (New Zealand Post) July 2023 (Prices are GST inclusive) Domestic. Product Bags

Postage

Product Boxes

Postage

Size XS 135x240mm

$1.00

Size 1 235x165x70mm

$2.00

Size S 190x280mm

$1.00

Size 2 250x185x170mm

$4.00

Size S Bubble210x280mm

$2.00

Size 3 350x265x200mm

$4.50

Size M 257x325mm

$1.00

Size 4 318x216x507mm

$6.50

Size L 280x380mm

$1.00

Size 5 418x286x540mm

$8.50

Size L Bubble 300x380mm

$3.00

Size XL 515x750mm

$2.00

Size XXL 515x75mm

$8.00

Bags can be purchased in bulk in 10 and 20s. Calculating parcel prices can be done using the NZPOST online tool based on location, size, weight and value Tickets for Small Parcels, Tracked Service. Pre-paid Tickets Postage Each

Prepaid Tickets

Postage Each

XS Courier Ticket tup 3kg $6.80 XS Economy up to 3kg S Courier Ticket up to 3kg $8.00 S Economy up to 3kg M Courier Ticket up to 3kg M Economy up to 3kg $10.00 L Courier Ticket up to 3kg L Economy up to 3kg $11.00 XL Courier Ticket up to 3kg XL Economy up to 3kg $15.00 A rural charge of $5.50 applies.Tracked and Courier & Signature for parcels

262

$4.80 $6.00 $8.00 $9.00 $13.00

Nationwide

Rural Surcharge

To the Value Of

(price up to 3kg) Economy Up to 3 working days

$4.80 to $13.00

$5.50

$250.00

Courier Next working day

$6.80 - $15.00

$5.50

$2,000.00

Nationwide

Rural Surcharge

To the Value Of

(price up to 25kg) Economy Up to 3 working days

$22.00 to $110.00

$5.50

$2,000.00

Courier Next working day

$7.50 - $185.00

$5.50

$2,000.00

Add-ons, signature on delivery $3.00 and Saturday delivery $6.00 for Courier services. Oversize parcels, call to enquire.

Courier Charges

New Zealand Couriers: Parcel Solutions excluding variable fuel factor, RUC and Temporary Service Continuity (TSCS) Ticket Type

1 ticket per greater of

Base Price per Ticket

Local

0.1 m3 / 25kg

$11.50

Outer Area

0.025m3 / 15kg

$12.00

Shorthaul

0.025m3 / 15kg

$15.00

Longhaul

0.025m3 / 5kg

$21.00

Inter -Island

0.025m3 / 5kg

$38.00

Saturday Delivery

Per item

$8.00

Rural Delivery Non-urban

1 ticket per 0.075m3 / 15kg

$8.00

Residential Delivery

Per item

$3.50

Maximum weight is 25kg, (Heavy item stickers to be applied for +20kg). Refer to Ticket Calculator for a more accurate representation of how many tickets are to be used.

263

Express Packs: Pack Type

Size

Price Each

E11

DLE 225x115mm

$12.00

E20

A5 260x190mm

$12.00

E25b

A5+ 280x210mm

$13.50

E40

A4 325x235mm

$14.00

E50

Foolscap 390mmx280mm

$17.50

E60

A3 415mmx360mm

$19.00

A3+ 440mmx450mm

$29.00

E10 (Green)

DLE 225mmx115mm

$12.00

Dp (Green)

A4+ 379x260mm

$13.50

Maximum weight is 15kg.

Post Haste Couriers: All prices are incl of GST & VAF and RUC. National Rates Ticket Type Description

Weight

Rate

Localink – Overnight delivery

5kg to 25kg / 0.025m3/0.125m3

$4.77 to $9.54

Outer Area –Overnight delivery

5kg to 25kg / 0.025m3/0.125m3

$7.02 to $14.04

Regionalink – Overnight delivery

5kg to 25kg / 0.025m3/0.125m3

$13.48 to $26.95

Within Island – Overnight delivery within the island

5kg to 25kg / 0.025m3/0.125m3

$16.98 to $84.90

Inter – Island Economy – 48 –hour road service

5kg to 25kg / 0.025m3/0.125m3

$21.05 to $105.28

264

Inter – Island- Overnight delivery

5kg to 25kg / 0.025m3/0.125m3

$30.41 to $152.06

Inter – Island from Auckland- Overnight delivery

5kg to 25kg / 0.025m3/0.125m3

$40.93 to $204.64

Rural Delivery – Additional to base ticket for rural delivery addresses

5kg to 25kg / 0.025m3/0.125m3

$9.36

Residential Delivery – Additional to base ticket

$3.75

Saturday Delivery

$9.36

An additional $40.93 inter-island overnight charge is required from Auckland to Waiheke Island and Great Barrier Island and Wellington to the Chatham Islands. An additional $9.36 rural delivery charge is required from Invercargill to Stewart Island.

Express Pack Envelope One price nationwide (excluding rural / non-urban and Saturday deliveries where additional ticket charges apply). Pre-Paid Express Packs have a generous weight allowance, though discretion should be used and items must not extrude from packs. (Recommended 15kg) Free signature on delivery, tick option. All prices are incl of GST & FAF/RUC. Express Pack Satchels Description

Size

Xtra Large

A2 450 x 450 mm

$23.00

Large

A3 360 x 415mm

$15.00

Medium

Foolscap 280 x 390mm

$10.00

Priority Despatch

A4 225 x 325mm

$9.00

Small

A5 210 x 260mm

$7.00

265

Rate

Subscriptions (Magazines/Farming Organisations) Some examples are: Magazines “Winegrower” “Dairy Exporter” “Lifestyle Block” “NZ Grower” “The Orchardist” “The NZ Farmers Weekly” “Countrywide” “NZ Rural Contractor” “NZ Dairy Exporter” “Organic NZ” “Rural News”

$120.00 per year $129.00 per year $45.00 per year $165.00 per year $165.00 per year $199.00 per year $129.99 per year $78.00 per year $129.00 per year $55.00per year $120.00 per year

Organisations

NZ Young Farmers, GST Exl.: NZYF Full Year Membership 12 months from date of registration TeenAg School Membership

$70.00 Free

Federated Farmers: Large Farm

$2,140.00

Contractor or Sharemilker/Farm Owner or Lessor

$779.00

Farm Manager/Rural Contractor/Rural Professional

$499.00

Lifestyle Block

$213.00

Non-Farming

$213.00

Farm Employee/Retired/Supporter

$112.00

Young Farmers/Dairy Trainee

Free for NZYFC & DTOTY members

266

STANDING CHARGES Insurances

Farmers’ Mutual Group (FMG) Insurance is a tool used to transfer risk from you or your business to another party, the insurer. The products or covers which are needed and the insurer’s terms and premium (price) you will pay are variable and depend on many factors, such as location, claims history, business type, and other risk factors relevant to the cover. FMG have prepared a case study to provide a view on common types of insurance and associated premiums. For information on what each policy covers, visit fmg.co.nz. There are also several ways to reduce premiums, such as voluntary excesses to match a client’s capacity to take on more risk and a good claims history based on good risk management practices. Voluntary excesses can decrease premiums up to 30% for the higher excesses. Different policies have different standard excesses and may be subject to additional age or license related excesses. Imposed excesses may also be put in place by insurers for situations that are of higher risk. Case study An example package is included below for a dairy farm owner that is based in the Southland region. It is important to note that this is a summary of policies that may be relevant, however each farming operation is different and will require policies that are specific to their situation. An example of a comprehensive farm insurance package (inclusive of GST and other levies): Item

Basis of settlement

Sum Insured (incl GST)

Standard Excess

Premium

House

Replacement, capped at the sum insured for natural disaster

$977,500

$400

$2,267.25

Worker’s Accommodation

Replacement, capped at the sum insured for natural disaster

$575,000

$550

$1,858.81

Calf Shed

Full Replacement

$500

$1,159.89

Dairy Shed

Full Replacement

$500

$2,987.12

267

Implement & Machinery Shed

Full Replacement

$500

$571.18

Unspecified Farm Buildings

Present Day Value

$11,500

$500

$304.55

Wintering Barn

Full Replacement

$500

$2,616.19

Household Contents

Nominated Replacement Value

$230,000

$300

$876.13

Farm Contents

Nominated Replacement Value

$57,500

$300

$667.96

Milk

Present Day Value

$17,077

$300

$2,114.48

$1,426,000

$3,044.62

$500

$407.23

Business Interruption 2015 Can-Am Quad 500

Present Day Value $17,250

2018 Mazda CX-5

Present Day Value

$69,000

$500

$922.73

2018 Toyota Hilux

Present Day Value

$57500

$500

$907.63

2020 Valley Centre Pivot

Nominated Replacement Value

$172,500

$2,500

$1,970.34

2012 John Deere 2038R Compact Utility Tractor

Present Day Value

$115,000

$500

$1,518.15

2015 John Deere H240 FEL

Present Day Value

$172,500

$500

$1,987.33

Unspecified Farm Vehicles

Present Day Value

$23,000

$500

$495.06

Dairy Cows

Fair Market Value

$230,000

$1,000

$301.54

General Liability

$2,000,000

$250

$321.56

Dairy Milk Contamination Liability

$500,000

$750

$369.84

Employer’s Liability

$100,000

$350

$81.38

Statutory Liability

$1,000,000

$250

$436.40

Total Annual Premium (including Govt Levies & GST) $28,187.37.

268

The premium and excess amounts shown on the above table are for illustrative purposes only and should represent a guide only . Additionally, there is no provision made for life and health covers which we would ordinarily discuss with clients due to the hugely individual nature of these covers and premiums. Any insurance proposal would be based on a full fact find and needs analysis for an individual client’s situation and risk profile. Premiums are calculated assuming an annual payment method of the policy. Premiums assume standard loss records – premiums may be loaded for poorly performing accounts. Premiums include all relevant government levies and GST.

Rates In New Zealand rates are charged by District and Regional Councils. District Councils administer the local district plan while Regional Councils deal with region wide issues and administer the regional plan. The main classes of rates are as follows: General rates set by both District and Regional Councils. Uniform Annual Charges set by Regional and District Councils on all rateable property. Targeted Rates set by District and Regional Councils, categories dependent on whether District or Regional Council. Special rates for repayment of loans for various purposes, eg water treatment works, raised by any local body. Water supply charges where stock water is supplied by a local body, e.g. water races, district water schemes. Pest Destruction (weed/plant/animal) rates set by the Regional Council where applicable. Flood protection and drainage rates set by the Regional Council where applicable. Rates can be set on capital, land value or annual value system. Water and pest destruction rates may be assessed on either per hectare, capital value or land value basis. How are rates calculated on land? The rates bill is based on the rating valuation on your property. Your local council works out your rates bill based on a rating valuation, and this is done once every three years. It considers the market value of the land and the buildings, including any improvements to these (from building consent applications) Total rates are approximate only and reflect the district wide rates not specific community rates. This excludes water supply, flood protection, drainage, region specific animal and plant rates eg Bovine TB, sewage disposal, and specific services eg libraries and reserves. Rates are reflected as a cents per dollar of Capital Value or Land Value or alternatively by the area of the property. Some District Councils charge a uniform annual charge. Rates include GST. 269

The following Table is an example of district and regional council rates.

Canterbury

Regional Council

Based CV $3,000,000 Selwyn district

General rate

Total

$0.0158989 $1,200

$5,157

$6,357

Targeted Rates can include water schemes, swimming pools, roading development and many other issues.

Rent on Leased Land Pastoral/Arable Land

Rents are set by comparison with other leases in the district, often analysed per hectare or per stock unit. They can be checked by assessing the cash returns from farming the property and also by looking at the return on capital. Rules of thumb have been 50% to 70% of EBIT (Gross income less farm working expenses) or 2.5%-4% of the capital value paid in rent. Both methods evolve over time with changes in the market. Generally, the lessee (tenant) will pay for rates and insurance, plus all farm working expenses. The lessor may agree to pay for rates and water charges, or to maintain shelter and fencing in which case the cash rent payment will be higher. The intention is that the property should be returned in the same condition as at the start of the lease. The lessor (land owner) may need to budget up to 10% of the rent for expenditure on improvements such as shelter trees, new fencing, tracks and water supply which are not the responsibility of the lessee. This will maintain the value of the asset. The term of the lease before a rent review can vary from one year to over five. Rent for a long term lease may be higher as the lessee has time to develop a profitable farm system. Rent for short term paddock leases for specialist crops such as potatoes will be significantly higher. Where development work such as irrigation is planned during the term of the lease it must be clearly spelled out in the agreement who is responsible for which improvements and if any compensation is required either for disruption to the lessee’s farming operations or for contributions by the lessee. A standard lease agreement is available from Federated Farmers and can be fine-tuned with conditions relevant to the farm. Alternatively many solicitors have a standard agreement. Farm consultants can advise on farming practice under a lease. Rents are often set privately by negotiation with the farm not publicly advertised. Where a farm is advertised for public tender the lessor should strike a balance between achieving the highest rent and securing a tenant who will look after the asset. The rent paid for similar farms may vary significantly depending on the conditions of the lease and the relationship between the lessor and lessee. 270

Rents for irrigated properties need careful consideration. Irrigation designs range from wild-flood to efficient centre-pivots with significantly different productivity. Farmers contribute different levels of equity to irrigation schemes. Accordingly, the annual scheme charges for water, operating expenses plus interest and principal can vary between $91 and $1,471/ha or 2c – 43c/m3 (Irrigation NZ survey 2016). On farms with a private irrigation consent the reliability of water and pumping costs can vary significantly. When comparing rents between irrigated farms the total cost to the lessee of rent and irrigation is the important figure not simply the land rent. Additionally, rents need to take into account, the allowable and consentable use, with National Environmental standards often restricting use of the property to any prior use. Change in use of intensity (example, changing from a sheep finishing system to dairy wintering) will require a resource consent for change in land use. Rental agreements also need to account for environmental management costs, which are mostly borne by the lessee.

Canterbury:

The lease market has been very strong in the 2022 / 23 season, with demand particularly strong for properties capable of dairy support capability under NES regulations or with summer safe rainfall contours. Properties with good development or close to established dairy areas have been well leased, with most leases benchmark levels relevant to their resource base. Generally steady increase in market lease rates overall Supply for lease properties has been constrained, with limited lease availability and strong competition for leases that do present to market. The majority of leases tend to be undertaken by lessees with existing property in the area and stand alone leases are less prevalent. Farms suitable for intensive dairy support or arable cropping will fetch a premium over properties with limitations such as steeper contour or heavy wet soils. Rents vary by district with Mid Canterbury generally higher than Central and South Canterbury.

Pastoral Land The pastoral lease market across Canterbury has seen some moderate increase in benchmarks in recent seasons, as availability of properties suitable for lease has decreased. The following comments are relative to the pastoral lease market currently. - Lower market lease supply availability relative to increasing demand for lease properties. A competitive lease market with a number of prospective lessees for quality properties or properties that afford an economic scale with good core resources. - Lease rates for agricultural properties in North Canterbury can fluctuate based on factors like land productivity, infrastructure quality, location, and market demand. These rates are usually negotiated between the property owner (lessor) and the lessee. Currently, lease rates are highly aligned with practical and regulatory requirements, which 271

influence use and intensity which drive returns and potential lease rates. Properties with a suitability for dairy support or finishing have achieved higher lease rates and benchmarks. - Changes in market conditions, such as shifts in commodity prices, climatic conditions, government policies, and global trade agreements, can impact the farm lease market in North Canterbury. These factors can affect the profitability and viability of farming operations, consequently influencing lease rates and demand and influencing market dynamics. - Properties that have been offered to the market in the last two seasons have seen strong demand. However, the lease rates offered have been highly constrained to the potential profitability of the properties. As the lessee has no interest in the potential capital gains associated with the property, the lease proposition has to allow a level of profitability that will allow the lease to be sustained. Stronger lease have been achieved where it is subsidised from a localised farming operation, however, most leases remain range bound. - The identified and quoted lease rates regularly include improvements such as dwellings and farm buildings, particularly where leases are of a stand alone economic scale and require these improvements to function effectively. Properties that have limited or no structural improvements tend to infer lower benchmarks, with lessees factoring these requirements into their lease offers. - Leases that are smaller, either on a scale basis or on a productivity basis, tend to have localised markets, with leases transacting to adjoining or nearby owners. In these scenarios, there may be limited potential lessees and while suitable as addition units, these lease propositions tend to be moderated to the direct economic benefit of a smaller group of lessees.

The following table details the lease ranges over the last three seasons for pastoral properties in the Canterbury region. Description

Min

Max

Average

Pastoral - Per Ha

$118

$482

$290

Pastoral - Per Su

$22.73

$41.67

$28.03

Pastoral - % ROA

1.09%

2.60%

2.04%

272

Dairy, Dairy Support and Arable Lower irrigated lease rates typically represent a sheep and beef grazing / finishing land use, poorer quality soils, or land with no winter grazing / dairy support potential. Higher irrigated lease rates represent more productive soil types, higher rainfall blocks, and land with dairy support / winter grazing capability. Market leases struck over the past 12 months have been strong, reflecting an increase on previously observed value ranges. This appears to be representative of stronger cash flows from pastoral farming; increased demand from the dairy grazing markets; and participants looking to expand their operations via a lease scenario as opposed to a purchasing option. Benchmarks for irrigated lease land suitable for dairy platform (effective area) have ranged from $1,900 / ha to $2,500 / ha including cost of water resources. The majority of these leases have been in the $2,150 - $2,300 / ha range. We have adopted a rate of $2,220 / effective ha including water costs. Lease for intensive dairy support sit below this level with most arable leases being $1,100 - $1,.500 / ha, based around use intensity and profitability. The following table details the range and averages for irrigated and dryland finishing / support leases in Canterbury over the last two seasons (excluding g irrigation water charges). Description

Dryland Leases (Finishing / Support) Min

Max

$ / Ha

$538

$1,200

$ / Eff. Ha

$665

% of MV $ / KgDm (Utilisable)

Average

Irrigated Leases Min

Max

Average

$837

$875

$2,083

$1,492

$1,245

$921

$875

$2,117

$1,546

2.42%

3.56%

3.11%

1.87%

4.71%

3.58%

$0.09

$0.13

$0.12

$0.06

$0.15

$0.11

Paddock Lease Potato lease - $2,200 to $3,000/ha plus $1.50 to $2.00 per mm of irrigation water applied. Larger areas of cultivatable and irrigable land are in the range of $500 to $1,000 per hectare per year depending on the quality of irrigation.

273

Southland: Dairy milking only

$1,000 - $1,350 per hectare

Dairy run-off blocks

$650 to $900 per hectare

Sheep and Beef.

$35 per stock unit

Cropping

$1,000 to $1,250 per hectare

Waikato: Dairy support ranges from rolling hills suitable for grazing only, up to blocks where feed is cut and carried back to the dairy unit. Rentals from $700 to $1,200 per ha. Grazing blocks $700 to $1,000 per ha and with blocks growing maize and grass silage $1,000 to $1,300 per ha. Dairy milking rentals are in the range of $900 to $1,500 per ha. Dry stock farms: Ranges from traditional sheep and cattle with limited finishing ability up to beef production units. Hill $150 to $300. Easy $300 to $750. Cropping Rentals: For maize land $900 to $1,300. Vegetable Field Crops: $1,700 to $2,200 per ha. (Premiums paid by some specialist growers). This use is set to require a Resource Consent in the future. Taranaki: Dairy Farms (generally without Fonterra shareholding)

$1,350 to $1,650 / ha

Lease land for replacement dairy stock, or milking platform extension

$1,350 to $1,550 / ha

Cropping

$1,450 to $1,750 / ha

Dry stock - flat - hard hill depending on the quality

$350 to $600 / ha

Revised rents are around the $1,400/ha but fixed rents don’t change in a downturn and may continue to run for 3-5 years. So are not always linked directly to farm land values.

274

Hawkes Bay: Cropping Land Hastings $1,800 to $2,200 per ha often less than 12 months Lesser quality cropping flats $1,000 per ha Long term (15 years or longer) orchard leases bareland $3,500 to $4,500 per ha Grazing Land Total Occupancy Basis Land Only Per Annum (includes rates/insurance) – any use of buildings can be extra Easy Contour $350-$500 per ha Med Hill $250-$350per ha Medium Steep $200-$300 per ha Steep Hill $150-$200 per ha Crown Pastrol Land The Crown Pastoral Land (Rent for Pastoral Leases) Amendment Act 2012 was passed by Parliament on 2 May 2012. This bill amended the section of the Crown Pastoral Land Act 1998 that dealt with the rent setting mechanism, changing it from a valuation based method to a carrying capacity and economic return method. The Commissioner of Crown Lands (CCL), an independent statutory officer who is employed by LINZ, leases most of this land out on a long-term basis for pastoral farming. Pastoral leases run for 33 years and lessees have an ongoing right of renewal. Lessees also have the right of exclusive possession and quiet enjoyment. Anyone wishing to access pastoral lease land, or travel over it to reach other land, must have the permission of the leaseholder before doing so. Pastoral leases are working farms with several hazards, and are where a number of lessees live. For these reasons, lessees make the final decision about who is allowed on their lease at any time. The terms of the leases give lessees the right to graze the land but, as the landowner, the CCL has the final say on any other uses of the land. If lessees want to undertake other work on this land, such as clearing scrub, creating tracks or cultivating the land, they require the consent of the CCL. Pastoral leases can be sold by the current leaseholder and their ownership transferred with the consent of the CCL. Tenure review ended on 18 May 2022 when the Crown Pastoral Land Reform Act came into effect, except for those reviews at the substantive proposal put stage. Tenure review was a voluntary process that gave lessees an opportunity to buy land capable of economic use, while land with conservation values was protected and restored to full Crown ownership as conservation land. More information about leaseholders rights and responsibilities can be found in Guide for pastoral leaseholders. https://www.linz.govt.nz/our-work/crown-propertymanagement/types-crown-property/crown-pastoral-land

275

Banking Requirements and Financial links Lenders for business loans typically charge their clients a rate made up of three sections. The firstly is the base rate, one that reflects the overall market costs of the funding and treasury management. The second part is client-specific. It takes into account the balance between the security involved, the track record of the borrower, and the specific nature of the funding requirements, among other things. This second part is usually referred to as the "margin" or "margin over base" and is essentially an assessment by the lender of how "risky" that specific loan is. You can find the total actual rate your bank charges you on your latest bank statement. An important aspect of business borrowing is the form of security required - property or business assets. The third part is a monthly fee that most banks charge for the overall overdraft facility. This is not on your bank statement. This fee has various names. We have shown it below and labelled it "Overdraft Management fee"; it applies to the value of the whole overdraft facility whether you use it or not. The rates listed below are the annual equivalents, as at July 2023.

Type

Lenders Mgmt Margin fee % % pa flat

Total % pa

Institution

Product

ANZ

Corporate On Indicator Variable application rate

7.68

Business Bank Indicator rate

On application

13.70

Business On Variable Overdraft application

15.70

1 to 5

1.44

17.89 21.89

Agri Current account

11.90

Variable

Security

Base rate % pa

On application

276

Business On Lending Variable application Base Rate

13.77

1 to 5

1.44

16.21 20.21

Rural base rate

On application

11.01

1.00

Corporate On Indicator Variable application rate

8.18

1.00

BNZ

Business On Variable Overdraft application

12.15

1 to 5

1.80

14.30 18.30

Cash Flow Funding

CFF Business Variable Overdraft assets

10.50

0.00

10.50

Fuelled

Invoice funding via Xero

Flexible Unsecured

15.00

0.00

12.0048.00

27.0063.00

Heartland

Business Funding

Variable

On application

10.00

1 to 5

1.44

12.44 16.44

Kiwibank

Business On Overdraft Variable application Rate

7.50

1 to 5

1.20

9.70 13.70

Business Home Equity Rate

Variable

On application

6.15

Zip Business

Business Loan, P&I

Variable Unsecured

6.040.0

0.00

2.003.00

8.043.0

Westpac

Overdraft more On Variable than application $5,000

13.95

1-5

1.20

16.1520.15

ASB

Variable

Reference: https://www.interest.co.nz/borrowing/business-base-rates

277

Rural Business Finance links to the major Agribusiness institutes in New Zealand. BNZ Agribusiness: https://www.bnz.co.nz/business-banking/partners/agribusiness ASB Rural Banking: https://www.asb.co.nz/rural Westpac agribusiness: https://www.westpac.co.nz/agribusiness Rabobank Agribusiness: https://www.rabobank.co.nz/banking/ ANZ Agribusiness: https://www.anz.co.nz/institutional/relationships/agribusiness/ Heartland Rural & Livestock Finance: https://www.heartland.co.nz/rural-loans Some links that provide service and advise for Rural agribusiness banking. NZAB Figured Lending:

https://www.nzab.co.nz/ https://www.figured.com/en-nz/agri-banks

There is a wide range of other independent organisations that can help farmers with advice and expertise in dealing with difficult financial conditions. Some of these include: •

Rural Support Trusts – 0800 RURAL HELP

•

Federated Farmers – 0800 FARMING

•

Dairy NZ – 0800 4 DAIRYNZ

•

Beef & Lamb NZ – 0800 BEEFLAMB

•

Ministry for Primary Industries – 0800 00 8333

•

Depression Helpline – 0800 111 757

There are many other organisations that have resources to help farmers through hard times. Farmers should speak to their rural banker or one of the organisations above for more information. The key to securing the best funding solution is through a bank that has a thorough understanding of individual farmer’s needs and situation. Other Institutions Under certain circumstances several other institutions will lend money for land, stock and plant purchase, development, or other agricultural and related projects. These include Building Societies, Life Insurance Companies, and solicitors. Interest rates and terms are usually negotiated for individual situations.

278

Stock and Station Agencies The finance departments of most Stock and Station Agencies have both seasonal and term lending facilities available. Loan facilities are offered to all new and existing farmers.

Cost of Table Mortgages

The listed Table is an example of a Table mortgage, (Interest + principal repayments) Monthly Payments The monthly payment (interest and principal combined) per $1,000 borrowed on a table mortgage, is set out below Repayments of Principal and Interest Per $1,000 Borrowed Terms of Loan: 5

Interest Rate

$ / mth

$/ mth

$ / mth

19.33

11.10

8.44

7.16

6.44

6.5%

19.57

11.35

8.71

7.46

6.75

19.80

11.61

8.99

7.75

7.07

7.5%

20.04

11.87

9.27

8.06

7.39

20.28

12.13

9.56

8.36

7.72

8.5%

20.52

12.40

9.85

8.68

8.05

20.76

12.67

10.14

9.00

8.39

9.5%

21.00

12.94

10.44

9.32

8.74

10%

21.25

13.22

10.75

9.65

9.09

10.5%

21.49

13.49

11.05

9.98

9.44

11%

21.75

13.77

11.37

10.3

9.80

11.5%

22.00

14.06

11.68

10.66

10.16

12%

22.24

14.35

12.00

11.01

10.53

12.5%

22.50

14.64

12.33

11.36

10.90

13%

22.75

14.93

12.65

11.72

11.28

279

13.5%

23.01

15.23

12.98

12.07

11.66

14%

23.27

15.53

13.32

12.44

12.04

14.5%

23.53

15.83

13.66

12.80

12.42

15%

23.79

16.13

14.00

13.17

12.81

15.5%

24.05

16.44

14.34

13.54

13.20

16%

24.32

16.75

14.69

13.91

13.59

16.5%

24.58

17.06

15.04

14.28

13.98

17%

24.85

17.38

15.39

14.67

14.38

17.5%

25.12

17.70

15.75

15.05

14.78

18%

25.39

18.02

16.10

15.43

15.17

18.5%

25.67

18.34

16.47

15.82

15.57

19%

25.94

18.67

16.83

16.21

15.98

Annual Payments (Annual Payments on Amortised Loans). The annual payment (interest and principal combined) per $1,000 borrowed on a table mortgage, is set out below:

Repayments of Principal and Interest Per $1,000 Borrowed Terms of Loan: 5

$ / annum

237.40

135.87

102.96

87.18

78.23

6.5%

240.64

139.11

106.36

90.76

81.99

243.89

142.38

109.79

94.39

85.81

7.5%

247.17

145.69

113.29

98.10

89.72

250.46

149.03

116.83

101.85

93.68

8.5%

253.77

152.41

120.43

105.68

97.72

257.09

155.82

124.06

109.55

101.81

Interest Rate

280

9.5%

260.44

159.27

127.75

113.48

105.96

10%

263.80

162.75

131.47

117.46

110.17

10.5%

267.18

166.26

135.25

121.49

114.43

11%

270.57

169.80

139.07

125.58

118.74

11.5%

273.98

173.38

142.92

129.70

123.10

12%

277.41

176.98

146.82

133.88

127.50

12.5%

280.85

180.62

150.76

138.10

131.94

13%

284.31

184.29

154.74

142.35

136.43

13.5%

287.79

187.99

157.76

146.65

140.95

14%

291.28

191.71

162.81

150.99

145.50

14.5%

294.79

195.47

166.90

155.36

150.08

15%

298.32

199.25

171.02

159.76

154.70

15.5%

301.85

203.06

175.17

164.20

159.34

16%

305.41

206.90

179.36

168.67

164.01

16.5%

308.98

210.77

183.57

173.16

168.71

17%

312.56

214.66

187.82

177.69

173.42

17.5%

316.16

218.57

192.10

182.24

178.16

18%

319.78

222.51

196.40

186.82

182.92

18.5%

323.41

226.48

200.73

191.42

187.69

19%

327.05

230.47

205.09

196.05

192.49

281

WATER SUPPLY, IRRIGATION AND DRAINAGE Average Irrigation costs forecast for 2022/23.

Sheep and Beef (Deer not separated out but often run (per su) with sheep and beef) North Island Hard Hill Country Class 3 $0.00 North Island Hill Country Class 4 $0.01 North Island Finishing Class 5 $0.11 South Island High Country Class 1 $1.87 South Island Hill Country Class 2 $1.46 South Island Mixed Finishing Class 8 $5.52 South Island Breeding and Finishing Class 6 $4.37 South Island Finishing Class 7 $0.00 National Class 9 $1.88 Dairy 2022/23 (per cow) (per kg MS) National $116 $0.09 Beef and Lamb Economic Survey 2022/2023, Dairy NZ Economic Survey 2021/2022

Some manufacturers continue to express capacity in gallons and pump pressure in gallons per hour (gph). The conversion figure to obtain the metric rate is 1 (imperial) gallon = 4.546 litres. Water Supply Development Costs (2023) Type Typical Cost Cost Range Surface (direct) pumping systems $1,500/ha $1,500 to $1,600 / ha Wells (submersible pumps) $4,100/ha $4,000 to $4,200 / ha On-Farm Irrigation Development Capital Costs (2018). Typical System type

Range

Rotary boom Fixed boom Centre-pivot Lateral move K Line Long lateral Guns Set sprinklers Renovating borders

$3,800 - $4,000/ha $4,100 - $4,300/ha $4,700 - $4,900/ha $4,800 - $5,000/ha $2,700 - $2,800/ha $2,700 - $2,800/ha $3,800 - $4,000/ha $15,000 - $15,800/ha $5,500 - $5,800/ha

$3,900/ha $4,200/ha $4,800/ha $4,900/ha $2,700/ha $2,700/ha $3,900/ha $15,000/ha $5,600/ha

Source: Aqualinc Research Ltd and Rainer Irrigation Ltd

282

Water Tanks Plastic Water Tanks

Farm Source. Volume (l)

Height (m)

Width (m)

NI Price std colours*

30,000

3.1

3.7

$4,000

25,000

3.0

3.5

$3.300

15,000

2.6

2.9

$2,260

10,000

2.6

2.5

$2,650

5,000

2.3

1.9

$1,600

1,000

2.0

0.87

$800

Water Troughs Farm Source: and PGGWrightson, Precast Concrete Water Troughs (Freight not included) Product Cattle

Double fence Deer RXP Sheep Pig

Description Trough Round protected 1500L Trough Round un-protected 1800L Trough Round Protected 515L Trough Round Protected 1100L Mount water trough 40L trough protected 750L Round trough protected 500L Oblong trough Large trough Indoor rail trough 12L

Retail Price $898 $832 $600 $820 $250 $689 $435 $418 $500 $119

Plastic Troughs Size c/w ball valve RXP Porta trough 180L

$439.0

283

Pumps and Windmills Pumps

Bertolini (Diaphragm Pumps)

No of Diaphrams 3 3 3 3 3 4 Grundfos Pumps

Maximum continuous working pressure

litres per minute

Price

40 Bar 40 Bar 40 Bar 15 Bar 15 Bar 50 Bar

34 40 54 70 126 150

$3955 $3,460 $4,338 $4,059 $4,865 $4,234

High Pressure Multi Stage – Farm & Domestic Reticulation 3 phase, Pump + Motor

Rates

Head

Flow, litres/min

Price

CMB-SP 3-47

2900rpm

34.9m

3 m3/h

$1,521

CMBE 1-44

3776 rpm

28.7m

2.4m3/h

$3,213

CMBE 3-62

3780 rpm

45.2 m

4.20m3/H

$5,417

CMBE 5-62

3868 rpm

47.8 m

6m3/h

$2,992

Submersible drainage Pumps, with 0.4 kw 240V motor, incl float for auto operation. Unilift

2770rpm

3.89 l/s

$1,547

Unilift AP 12.40

2785 rpm

$1,646

Unilift AP 12.50

2760rpm

$2,254

Drainage submersible Waste Pumps Trevoli BCV-400A

400W

300l/min

$822

Trevoli MG1100A

1100W

620l/min

$1,045

0.55kw/0.7HP

140l/mn

$1,626

Trevoli GC-07A Grinder

284

Pressure Tanks Tank

Capacity (litres)

Maximum working pressure

Price

Grundphos

10 bar

$185

Grundphos

10 bar

$591

Windmills Ferguson Windmills Company: 1.8m complete windmill (incl. fan, standard mast, pump and accessories)

$3,500.00

Extension mast and accessories

$702

Freight free to nearest national carrier depot.

Effluent Pumps, Sumps, Irrigators and Pond Stirrers Ecostream Irrigation:

Farm Dairy Effluent Equipment Stone Traps & Effluent Sumps Stone Trap 3,450 x 2,450 x 900 mm

$1,750

Stone Trap 4,500 x 2,950 x 1,200 mm

$3,250

Effluent Sump 25,000 litre includes sump, conical internal base, pontoon & discharge pipework & sump pump switch (excludes installation)

$11,000

Ecostream Pontoons for Storage Ponds Pontoon 4 Drum c/w 8.0m Discharge Pipe (for Pump only)

$3,300

Pontoon 6 Drum c/w 8.0m Discharge Pipe (for Pump & Stirrer)

$4,000

Pontoon 8 Drum c/w 8.0m Discharge Pipe (for Pump & Stirrer)

$5,000

Pumps & Stirrers Electric Effluent Pump & Motor 10 hp 2,800 rpm

$4,750

Electric Effluent Pump & Motor 15 hp 2,800 rpm

$6,050

Electric Effluent Pump & Motor 20 hp 2,800 rpm

$6,650

Ecostream PTO Trailer Pump 285

$6,800 285

Ecostream PTO Trailer Pump 380

$7,700

Electric Pond Stirrer 10 hp

$6,500

Electric Sump Stirrer 5 hp

$6,850

Electric Sump Stirrer 10 hp

$8,200

Tractor Pond Stirrer 4.5m long

$6,200

Tractor Pond Stirrer 6.0m long

$7,600

Ecostream Sump Pump Switch 1,000

$540

Ecostream Sump Pump Switch 2,000

$1,020

All prices exclude GST & Freight

Source: Grant Titchiner, Ecostream Irrigation May 2018

Numedic Ltd: Pumps – New Generation Grease Model Motor Size (3 phase and 2800 rpm)

Motor and pump price

5.5 kW

$5,600.00

7.5 kW

$5,800.00

11 kW

$7325.00

15 kW

$7945.00

18.5 kW

$8550.00

Effluent Pump price includes motor cover, mounting bracket, lifting bracket, 50mm nonreturn valve and galvanised pipe fittings. Chopper pumps in the above sizes add $555.00

Numedic Ltd: 1.5kW Stirrer for use in effluent sumps

$4330.00

5.5kW Stirrer for use in small effluent ponds

$5107.00

7.5kW Maxi Stirrer for use in larger effluent ponds

286

$.8000.00

Dairy Shed Effluent Disposal Equipment

Ecostream Irrigation: Effluent Mainlines MDPE Pipe 75 mm dia. 8 bar

$9.50/m

MDPE Pipe 90 mm dia. 8 bar

$9.50/m

MDPE Pipe 110 mm dia. 8 bar

$16.85/m

PVC Pipe 65 mm dia. 6 bar

$5.90/m

PVC Pipe 80 mm dia. 6 bar

$7.55/m

PVC Pipe 80 mm dia 8 bar

$9.60/m

Ecostream Effluent Hydrants. Fits all common pipe sizes and types. PVC Rubber Ring Joint, MDPE Hose Tail or BSPT Fittings Effluent Hydrant 1 way (end of pipeline)

$145

Effluent Hydrant 2 way (connection within a pipeline)

$400

Effluent Hydrant 3 way (tee in a pipeline)

$550

Effluent Hydrant 4 way (cross in a pipeline)

$650

Hydrant Take Off c/w camlock

$150

Ecostream Effluent Irrigators Travelling Irrigator - low pressure, continuous drive (many optional extras available at an additional cost)

$5,000

Stationary Irrigator – for steeper contours and smaller herds

$1,600

Rain Gun on Skid

$3,000

Travelling Irrigator Draghose 57 mm x 50 m c/w camlock couplings and hose clamps (typical effluent system uses 3 or 4 sections) All prices exclude GST & Freight

287

$390

Well Drilling

McMillan Drilling Ltd: Price for drilling wells

Price per metre

6 inch (150mm)

$254.00

1. Mobilisation/Demobilisation – this is dependant on the travel distance to and from the site. 2. The Drill rate is $254 per meter – so this cost depends on the depth needed to drill and this is very different for different areas. 3. Compressing – Currently there is no charge for this. 4. Fuel Surcharge – there is currently a 3% of the net cost added to all Estimates. 8 inch (200mm)

$317.50

1. Mobilisation/Demobilisation – this is dependant on the travel distance to and from the site. 2. The Drill rate is $317.50 per meter – so this cost depends on the depth needed to drill and this is very different for different areas. 3. Compressing – Currently there is no charge for this. 4. Developing – this is an estimate of time required to develop but the rate is $254 per hour 5. Test Pumping – again this is an estimate of time required to Test pump but the rate is $254 per hour 6. Fuel Surcharge – there is currently a 3% of the net cost added to all Estimates. 7. Well depths exceeding 100 mbgl a surcharge 5% applies Price for screens & other essential compliance.

Price per metre

6 inch (150mm) / 8 inch (200mm)

$575 / $728

Chemical water test

$297

Bacterial Test

$48

Sealing water head

$150

288

Pipes, Valves and Fittings

Hansen Products:

Polythene Pipe Fittings:

Straight coupling (HS)

25mm

$10.26

Reducing straight coupling (HRS)

25 - 20mm

$8.76

Long straight coupling (HLS)

25mm

$9.82

Elbows /Bends (male)

25mm

$17.45

Elbows/ Bend (female)

25mm

$18.30

Tees (HT)

25mm

$15.23

Reducing tees (HRT)

15-25mm -

$15.32

Female tees (HFT)

25mm

$18.77

Caps (HCP)

15mm to 100mm

$1.36 to $24.34

Threaded Tees (HTT)

15mm to 100mm

$2.97 to $105.57

Hansen Products:

Medium density red line pipe Diameter (mm)

rolls

Pressure bar

25mm

200m

12.5

$619

32mm

100m

9.0

$293

PVC Pressure Pipe Size 15 mm 32mm 40mm

length 6m x 10 lengths 6m x 10 lengths 6m x 10 Lengths

$187 $290 $400

Alkathene Low Density Alkathlene Pipe size 25m 1m 25mm 25m 25mm 100m

$4.37 $107 $332

289

Horticultural Lateral Tube. Size 13mm 13mm 13mm

400m 50m 100m

$320 $62 $8080

Galvanised steel pipe fittings:

15 mm

20 mm

40 mm

Tee

-$7.67

$10.62

$41.0

M & F Bend

$5.42

$7.14

$28.58

Mall threaded joiner

$1.21

$2.06

$6.37

$4.09

$2.05

$4.37

- banded reducing

20mm

15mm

$2.19

-25mm

20mm

$3.22

40mm

25mm

$5.41

20mm

40mm

Galvanised malleable fittings:

Water Valves – floats

Water

Float

Level

Float

Level

Indicator

$202 $400

Trough valve – Megaflow Side and bottom entry

$31.06

Topaz Megaflow top, side or bottom entry

$65.50

Tank water level indicator

$152.88

290

Resource Consents, Water and Discharge Permits Consent Application Deposits from two North Island Regional Councils (GST incl) Costs of initial Deposits Non-notified application, farm dairy discharge

$799.25

Non-notified consent other

$1,196

Notified consents (limited and public)

$8,050

Consent renewal, change or review Non-notified consent

$1,196

Notified (limited and public)

$8,050

Extension of a consent lapsed due to nonexercise

$517.50

Certificate of compliance

$1,196

Transfer of consent

$103.50

Fixed Initial Deposit Certificate of compliance & Existing use cert. Transfer of consent

$495.00 ea $85.00

Consent Descriptions

Minimum Estimated Initial Deposit

291

New Nonnotified Coastal permits (excl moorings), land use, water and discharge permits

Notified & Lmtd

$3,296.00

Coastal permits (excl moorings, bore drilling) water, discharge, incl dairy effluent, domestic on-site wastewater

$879.00

Moorings

$604.00

$1,648.50

Bore Drilling Permits

$361.50

n/a

Plus per additional bore

$37.50

n/a

Domestic On-site Wastewater Discharge(Replacement non-notified)

$550.00

n/a

Transfer existing water permit between sites within catchment

$482.50

$769.50

Change/cancellation consent conditions

$494.50

$1,153.00

Other Deposit Charges

Resource Consent Deposits for West Coast (West Coast Regional Council) (GST incl) Humping and hollowing of farm land

$950.00

River protection works

$700.00

Gravel extraction

$520.00

Discharge Permits for dairy effluent discharges

$700.00

Dairy effluent inspection

$300.00

(+ any non-compliance fees)

292

Consent Applications Charges from Hawkes Bay Regional Council: GST incl Fixed Charges payable for processing Resource Consent Applications Item Certificate of Compliance - Bore Sealing - Other

Initial fixed fee

Additional Charge

No charge

N/A

$1,500

Onsite domestic waste water, permitted activity

$250

actual+ reasonable

Issuing notice for permitted activity

$1,500

actual+ reasonable

Land use application for bore permit

$500

actual+ reasonable

-where 3+ bores, same site & purpose

$1,000

Other consent applications

$2,000

Changes or cancellations of consent conditions

$750

actual + reasonable

Review conditions as per RMA

$1,500

actual + reasonable

Transfer of a consent to another site

$750

actual + reasonable

Extensions to lapsed dates

$1,000

actual + reasonable

Transfer consent (1 only) to another site

$120

actual + reasonable

Transfer of consent (2 or more)

$150

actual + reasonable

293

Irrigation Equipment - Pastoral and Horticultural Low Pressure Systems

Ecostream Irrigation: Irrigation Equipment – Pastoral & Horticultural Ecostream Irrigators Travelling Irrigator - low pressure, continuous drive

$5,350

(optional extras available) Raingun on Skid

$3,210

All prices exclude GST & Freight

Source: Grant Titchiner, Ecostream Irrigation, Travelling Irrigators

Rainer Irrigation Ltd:

Briggs Model 200 Roto Rainer and Hose Trailer (Standard)

$56,000.00

Briggs Model 250 Roto Rainer and Hose Trailer (Standard)

$62,390.00

Briggs Model 250 Linear Rain Turbine Drive and Hose Trailer (Std)

$76,490.00

Briggs Model 125 Roto Rainer and Hose Trailer (Standard)

$49,590.00

Briggs Model 100 Roto Rainer and Hose Trailer (Standard)

$37,590.00

Briggs Model 25 Trailer

$6,700.00

Ocmis Hard Hose Irrigator R2/1 90mm x 300m / R3/1 110mm x 300m

$29,900 / $35,500

R4/1 110mm x 450m / VR6 125mm x 400m

$48,500 $53,000

294

Centre Pivots

PGG Wrightson Water: Centre Pivot Length

Price

400m

$160,000 Installed costs up to $420 per metre

There is no straight forward formula, as every situation is unique Components for Irrigator Fence Crossing Systems

Gallagher: indicative retail pricing only Spring Double Loop

$41.00

Pivot Pipe (10 pack)

$106.00

Anchor Rope D Shackle (10 pack)

$60.00

Anchor Post Y post (10 pack)

$68.00

Clip Wire Anchor (20 pack)

$28.00

Components for Water Monitoring System (Gallagher) 1 Tank Kit – Wall Mount

$753.00

1 Tank level kit

$466.00

Pump Controller

$371.38

295

Irrigation Equipment – Horticultural Daltons Ltd – Matamata: Aluminium watering nozzle

$27.23

Misting nozzle

$25.22

Seedling nozzle

$28.50

Egmont Commercial Ltd: Dutch water spikes

$0.40

Whisker micro tube - 1.27mm bore size. 200m coil

$73.00

Watering wand

$98.00

Lateral tube 13mm -per 50m coil

$61.00

Sprinkler tube PVC 4mm internal diameter - 50m roll

$41.00

Elbow barbed fitting 13mm

$0.42

Joiner barbed -13mm

$0.23

Tee barbed -13mm 25mm

$0.57 / $0.76

Cray Clip -13mm

$0.18

Quick action shut off valve- 13mm

$4.52

End Plug -13mm

$0.21

Inline Filter 13mm

$3.51

Increasing Tee 13 mm

$1.01

Reducing Tee 13mm

$0.73

Reduce Joiner 16-13mm

$0.64

296

Irrigation Water Supply Charges Farm Charges Charges for irrigation vary depending on the length of time the scheme has been in operation, the size of the scheme, the source of water and the number of farmers participating in the scheme. 2023 Irrigation NZ conducted a survey on the cost of water, in NZD per Ha, and per cubic metre ($/m3). From 2016 $870 /ha/an and $0.15/m3 to 2022 $1,180 / ha/an and $0.21/m3 The capital outlay for pivot irrigators or vineyard drip systems typically ranges from $4,000 to $5,000 per hectare, while other precision control systems, such as fixed grids, can cost as much as $15,000 to $20,000 per hectare. Operating costs for on-farm pumping and labour can range from $2,000 to $6,000 per hectare depending on the scale and topography. Water supply to the farm gate can be expensive, with shareholding schemes requiring capital and operating costs, resulting in outlays of $5,000 to $10,000 per Hectare followed by annual chaRGES OF $700 - $1,500 per Ha. For more detailed updates.

https://www.irrigationnz.co.nz/

Irrigation Earthworks

Storage ponds for irrigation systems Earthmoving to create a pond 5ha x 2.5m deep (125,000m3) Prices range from - $3.50 - $8.00 / m3. ($437,500 to $1,000,000)

Drainage and Sub-soiling Costs The cost of intensive pipe/tile and mole drainage depends on a very large number of variables. Blackley Group of Manawatu quoted typical flatland costs for intensive (10 to 20mm drainage coefficient) systems: 110mm Nexus smooth bore pipes discharging into open drains. Metal backfill. 40m spacings

$6,850/ha

110mm Nexus smooth bore pipes discharging into open drains. Turf backfill. 40m spacings

$5475/ha

160mm mainlines where no open drains present approx

$2,800/ha

Mole ploughing after drainage pipes laid

$300/ha 297

FarmBoss Culvert Pipe (lengths) Polypropylene, Twin wall, Smooth Bore, Corrugated Pipe (5m)

110mm

$150.0

Polypropylene, Twin wall, Smooth Bore, Corrugated Pipe (5m)

200mm

$280.0

Polypropylene, Twin wall, Smooth Bore, Corrugated Pipe (6m)

400mm

$848.0

Polypropylene, Twin wall, Smooth Bore, Corrugated Pipe (6m)

500mm

$1,300

Nexus Novaflow - land drainage system. Nexus Novacoil - unpunched, slotted / unslotted.

Pipe low drainage slotted nexus

Pipe low drainage unslotted coil

Diameter

Length

Price

110mm

30m

$485

110mm

100m

$1,707

110mm

30m

$517

110mm

100m

$1,307

Nexus Hi-Way Drain, Heavy Duty Diameter

Length

Price

Pipe corrugated high density polyethelene

300mm

$668

Pipe culvert twin walled polyethelene nexus

401201mm

$1,779

Concrete Culvert Pipes

Precast Rural, farm grade 2.5m lengths Price range: 300mm 450mm 600mm 1760mm

$329 $553 $920 $2,300

298

Dairy Shed Effluent Disposal Ecostream Irrigation:

Typical Farm Dairy Effluent System for a 300 cow Farm Effluent & Storm Water Diverter 3 Way (manual) Wet Weather Pond including liner (excl. retired land & fencing) Stone Trap & associated pipe and fittings Sump 25,000 c/w pontoon assembly Electric Effluent Pump 15 hp Sump Pump Switch 2,000 Pump Cable 50 m Electric Pump Controller Electrician Effluent Mainline 800m x 90 dia. MDPE Pipe Effluent Hydrants Irrigator Draghose 200 m Travelling Irrigator Installation Costs Total Annual Operating Costs Storage pond pumping, repairs & maintenance Labour for shifting irrigator Electricity Pump & Irrigator repairs and maintenance Depreciation 10 to 20+ year life

$920 $55,000 $2,870 $12,000 $6950 $1,120 $1,700 $4,700 $3,700 $8,740 $7,900 $1,800 $6,200 $21,400 $135,000

$5,000 $3,200 $1,500 $2,700 $7,300 Total $19,700 The annual nutrient value of fresh dairy effluent from 300 cows is approximately $8,100 All prices exclude GST & Freight System based on the following assumptions ** Effluent pumped from a sump to a travelling irrigator ** Irrigation area of 18 ha of flat land ** Wet weather storage pond 1,500 m³ capacity ** Storage pond emptied by a contractor

Source: Grant Titchiner, Ecostream Irrigation

299

Modular Precast Concrete Panel Effluent Ponds

Hynds Rural: (Freight not included) Hyponds

Modular Pre-cast concrete Effluent Storage ponds 40,000 140,000 litres capacity

$10,500

Megaponds Modular Pre4cast Concrete Effluent Storage ponds 250,000 to 4 million litres capacity.

$poa

Precast / sundry components only; does not include excavation or concrete floor. Hytank One piece Pre-Cast concrete Effluent Storage Tank with flange base 22,500 litres capacity ( Lid available as an extra) $5300. Stone Trap

Hynds Rural: (Freight not included) ST4000

Modular drive-in Stone Trap W:3000mmx D:4000mm

ST4000S

$3133

A precast / sundry component only; does not include excavation or concrete floor.

Septic Tanks Concrete

Hynds Rural: (Freight not included) Standard Precast Septic tanks 4500L (Pumps extra)

$6,086

Plastic

PVC Devan Septic 2100 litre without filter

$3,899

Devan Septic 5,700 litre with filter

$8,999

Devan.co.nz

300

FENCING COSTS Overview of contract fencing Overview of Fencing supplied by: Central Fencing. 027 383 0000 www.centalfencing.co.nz Charlot e@centralfencing.co.nz 1640 Springs Road, RD4, Christchurch

The fences specifications priced are what should be considered for the most common fences. How far the site/farm is from the contractor’s yard will impact the cost of the fencing. No travel costs have been allowed for in the following scenario pricing. There is legislation for boundary fence requirements, that every one owning land should be aware of. Refer to Farm Technical Manual https://aginfo.lincoln.ac.nz/manual/farmtechnical-manual-vol-24-online/, and https://www.legislation.govt.nz/act/public/1978/0050/latest/whole.html

1. Sheep Netting Fence with Top Hot Wire & 2.4m Angle Stay Assemblies • • • • • •

2.4m x 175mm for all termination strainers and corner strainers All termination strainer assemblies will be angle stays. The intermediate posts will be 1.8m x 150mm and will be installed at no more than 5m apart and driven down to a final height of 1150mm. The netting will be A8-900-300 high sheep netting, with an additional HT wire run through the top staple for added durability from stock pressure. Every wire of the netting will be stapled. The top hot wire will be 2.5mm HT wire and installed on the posts with wood post insulators.

301

Flat Land Only strainer posts tied down - no tie downs on intermediate posts Rate per m +GST Per 100m (including termination strainers at each end) $22.47 Per angle change within the fence $198.15 Per 14 foot gate (strainer assemblies not included) $272.34 Strainer assemblies required to support gate (Note: only one extra needed if installed at the end of the fenceline) $198.15

Rolling Hill Country Strainer posts tied down & 15% of the intermediate posts tied down Rate per m +GST Per 100m (including termination strainers at each end) $23.68 Per angle change within the fence $198.15 Per 14 foot gate (strainer assemblies not included) $272.34 Strainer assemblies required to support gate (Note: only one extra needed if installed at the end of the fenceline)

$198.15

Hill Country Strainer posts tied down & 35% of the intermediate posts tied down Rate per m +GST Per 100m (including termination strainers at each end) $25.97 Per angle change within the fence $198.15 Per 14 foot gate (strainer assemblies not included) $272.34 Strainer assemblies required to support gate (Note: only one extra needed if installed at the end of the fenceline)

$198.15

Meters

Total 100 0 1

$2,247.00 $0.00 $272.34

1 Total +GST

$198.15 $2,717.49

Meters

Total 100 0 1

$2,368.00 $0.00 $272.34

1 Total +GST

$198.15 $2,838.49

Meters

Total 100 0 1

$2,597.00 $0.00 $272.34

1 Total +GST

$198.15 $3,067.49

Price per meter based on 100m in a straight line: Note the above pricing is based on connecting to an existing electric fence – no allowance has been made for an energizer or under gate cables to complete the electric reticulation.

302

2. 8 Wire Fence - with battens between posts & a top barbed wire • 2.7m x 175mm for all termination strainers • All termination strainer assemblies will be angle stays • The intermediate posts will be 1.8m x 150mm and will be installed at no more than 5m apart and driven down to a final height of 1150mm • The top wire will be 2.5mm mild steel barbed wire • The remaining 7 wires will be 2.5mm HT wire • The wires will be spaced to match the hole spacings of a standard 8 wire waratah or lightning dropper • Three 50x40mm H4 battens will be installed evenly between posts • The battens will have two opposing staples per wire (16 staples per batten) Flat Land Only strainer posts tied down - no tie downs on intermediate posts Rate per m +GST Per 100m (including termination strainers at each end) $42.52 Per angle change within the fence $198.15 Per 14 foot gate (strainer assemblies not included) $272.34 Strainer assemblies required to support gate (Note: only one extra needed if installed at the end of the fenceline)

Meters 100 0 1

$4,252.00 $0.00 $272.34

$198.15

Total +GST

$4,722.49

Meters

Total

$198.15

Rolling Hill Country Strainer posts tied down & 15% of the intermediate posts tied down Rate per m +GST Per 100m (including termination strainers at each end) $43.73 Per angle change within the fence $198.15 Per 14 foot gate (strainer assemblies not included) $272.34 Strainer assemblies required to support gate (Note: only one extra needed if installed at the end of the fenceline)

$198.15

303

Total

100 0 1

$4,373.00 $0.00 $272.34

$198.15

Total +GST

$4,843.49

Hill Country Strainer posts tied down & 35% of the intermediate posts tied down Rate per m +GST Per 100m (including termination strainers at each end) $46.02 Per angle change within the fence $198.15 Per 14 foot gate (strainer assemblies not included) $272.34 Strainer assemblies required to support gate (Note: only one extra needed if installed at the end of the fenceline)

Meters

Total 100 0 1

$4,602.00 $0.00 $272.34

$198.15

Total +GST

$5,072.49

$198.15

Price per meter based on 100m in a straight line: For any 14-foot gates you wish to install within the line add $470.49 if installed at the end of the fence or $668.64 if you wish to put the gate in the middle of the fence line where two additional termination assemblies will be required

3. Deer Fences • • • • • •

3.6m x 175mm for all termination strainers All termination strainer assemblies will be box stays The intermediate posts will be 2.7m x 150mm and will be installed at no more than 5m apart and driven down to a final height of 2000mm The netting will be A13-1900-300 The bottom wire will be 2.5mm HT Every wire of the netting will be stapled. Flat Land Only strainer posts tied down - no tie downs on intermediate posts Rate per m +GST Per 100m (including termination strainers at each end) $33.14 Per angle change within the fence $300.63 Per 14 foot deer gate (strainer assemblies not included) $410.34 Strainer assemblies (box stay) required to support gate (Note: only one extra needed if installed at the end of the fenceline) $452.83

304

Meters 100 0 1

Total $3,314.00 $0.00 $410.34

$452.83

Total +GST

$4,177.17

Rolling Hill Country Strainer posts tied down & 15% of the intermediate posts tied down Rate per m +GST Per 100m (including termination strainers at each end) $34.06 Per angle change within the fence $300.63 Per 14 foot gate way (strainer assemblies not included) $410.34 Strainer assemblies (box stay) required to support gate (Note: only one extra needed if installed at the end of the fenceline) $452.83

Hill Country Strainer posts tied down & 35% of the intermediate posts tied down Rate per m +GST Per 100m (including termination strainers at each end) $35.05 Per angle change within the fence $300.63 Per 14 foot gate way (strainer assemblies not included) $410.34 Strainer assemblies (box stay) required to support gate (Note: only one extra needed if installed at the end of the fenceline) $452.83

Meters 100 0 1

Total $3,406.00 $0.00 $410.34

$452.83

Total +GST

$4,269.17

Meters 100 0 1

Total $3,505.00 $0.00 $410.34

$452.83

Total +GST

$4,368.17

Price per meter based on 100m in a straight line: If the gate is in the middle of the fence line, two additional termination assemblies will be required. Some gate ways may also require rails beside them depending on their position within the fence line – this is not included for in the price above.

305

4. Two Wire Electric Fences ( Dairy). • • • • •

2.4m x 175mm for all termination strainers No stays The intermediate posts will be 1.8m x 150mm and will be installed at no more than 15m apart and driven down to a final height of 1150mm Both wires will be 2.5mm HT wire and installed on the posts with wood post insulators. The top wire will be installed 75mm from the top of the posts, the second wire will be installed 500mm from the top of the post.

Flat Land Only strainer posts tied down - no tie downs on intermediate posts Rate per m +GST Per 100m (including termination strainers at each end) $16.43

Meters

Total 100

$1,643.00

Total +GST

$1,643.00

Notes: Pricing based on all posts being able to be driven by a machine mounted post-driver Clear access and accessibility to the fence line No allowance has been made for electric reticulation Due to the low tension on the fence any minor angle changes won't require stays or tie downs. Gates are likely to be made from tape or bungees - these have not been included in the price.

Wire

A Company: Barbed wire standard 2.5mm, Reverse twist 1.6mm HTR

75mm 150mm 150mm

25kg coil 25kg coil

$189.95 $189.95 $244.99

Lacing wire

1.6mm

5kg

$63.50

PGG Wrightson Ltd: Wire Soft: Hispan: (high tensile steel)

4.00 mm x 253m 2.50 mm x 650m

306

$ / 25kg coil $209.00 $125.00

Posts / Strainers / Battens / Stays

A supplier:

Pointed Intermediate Round Wood Half-Round Deer Halves Full Rounds

Quarter Rounds Sheep Super Posts (rounded ¼ rounds) Deer Rounds Deer Quarter Rounds Deer Super Posts (rounded ¼ rounds) Strainers – Sheep

Deer

Droppers/Battens –

1.8m x 150 1.8m x 175 2.7m x 150 2.7m x 175 1.8m x 80 1.8m x 100 1.8m x 125 1.8m x 150 1.8m x 100 1.8m x 125 1.8m x 100 1.8m x 125 2.7m x 125 2.7m x 150 2.7m x 125 2.7m x 100 2.7m x 125

$13.00 $14.35 $18.50 $21.95 $7.92 $9.68 $18.29 $20.69 $8.95 $11.30 $9.65 $11.90 $34.40 $37.40 $19.90 $19.20 $19.70

2.1m x 150 2.1m x 175 2.1m x 200

$27.60 $29.20 $33.85

3.0m x 150 3.0m x 175

$45.45 $53.85

3.3m x 150

$49.10

3.3m x 175

$56.50

3.3m x 200

$71.05

1.07m x 50 x 40 1.17m x 50 x 40

$2.26 $2.59

Placemakers: 100 x 75mm 100 x 100mm 125 x 75mm

1.8 / 2.4 / 2.7m 1.8/ 2.4 / 2.7 / 3m 1.8 / 2.4 / 2.7 / 3m

$10.81 / $14.43 / $14.68 each $16.61 / $18.18 /$22.11 / $23.24 each $12.01 / $15.70 / $17.54 / $19.12 each

Fencing standards Imports 1.5m / 1.65m / 1.8m

307

$4.50 / $5.00 / $5.30

Gates

Electric Spring / Tape Gates

Gallagher: indicative retail pricing only Insulated Handle G60630

$3.78

Soft Touch Handle

$13.00

Kitset for Gate (tape not included)

$36.00

Spring for gate kit (galvanised / white)

$19.00

Gate, tape complete with handle and insulator

$40.00

Gate, bungy kit complete w handle & insulator (3.5m - 11m) Gate anchor three way 5 pack

$25.70/$29.23 $22.31

Beattie Insulators: Spring gate kit - white - 5 m / 6.5 m

$15.87 / $17.76

Tape gate kit - 5m

$21.00

Unbreakable gate handle

$5.54

Bungy gate kit (3.5 - 6 metre stretch)

$20.82

Gate tape (white only)

25mm power horse tape x 100m (10 wires)

$46.42

40mm power horse tape x 100m (15 wires)

$64.02

Steel Gates

PGG Wrightson Ltd: Farmgates: Economy Deer gates: 1.55m high 1.90m high

3.05m to 4.27m 3.05m to 4.27m 3.05m to 4.27m

$164.35 to $110.43 $251.30 to $355.65 $277.39 to $251.30

A supplier: Farmgates Economy Cattle Stock Master Deer - 1.9m

3.05m to 4.25m 3.05m to 4.25m 3.66m to 4.25m 3.05 to 4.25m 308

Price $181.99 to $224.99 $214.99 to $264.99 $225.22 to $255.65 $158.25 to $267.82

Precast Cattle Deterrent

Precast Cattle Deterrent and Cattle Stops with Galvanised Pipe tubes

Kiwi Cattlestop: (Freight not included) Product Code

Description

Retail

Maxi

Cattle Deterrent – 4400mm x 2400mm

$6495

Standard

Cattle Deterrent – 3450mm x 2400mm

$4,,995

Public road

Heavy duty Cattle Stop-

$POA

Bridge

Heavy duty Cattle Stop-4400 x 2400

$POA

Wire Netting PGG Wrightson Ltd: (100m rolls) 8 line 900 mm high, 300 mm spacings

$315

8 line 900 mm high, 150mm spacings

$547

Tightlock Deer (100m rolls) 16 line 1900mm high, 240mm spacings

$607.83

13 line 1900mm high, 150 / 300mm spacings

$520.87 / $364.35

11 line 1550mm high, 150 / 300mm spacings

$538.26 / $399.13

Fencing solutions: High Tensile 2.5mm Boundary Fence: Stay tight 100m

13 – 1900 - 150

$519

13 - 1900 - 300

$365

16-1900 – 300

$479

17-1900 – 300

$438/

309

Fencing Tools and Equipment Straining Equipment

PGG Wrightson Ltd: Hayes wire strainers: Hayes permanent 302 Wire strainer handle Wire strainer chain grab H300

Price per item $4.19 $28.0 $229.0

Fencing Tools Gudgeon Guide Pack

$300.00

Pliers, ezepull Wire twisting tool

$470.0 $9.69

Post rammer pipe complete

$90.0

Short handle spade

$259.0

AHM spade, long handle

$105.0

Shovel #2 Atlas D Handle, Sq Mouth

$94.0

AHM Crowbar 1.75m x 32mm

$117.36

Sledge Hammer

$85.0

Gudgeons lock thru post

16mm x 200mm

Gudgeons lock thru post

20mm x 275mm / 350mm

Spring Latch & Staple or Spring Ring Latch & Staple Spring Latch & Staple + 1m Chain Joint Clamps – range of sizes & styles

$16.51 $16.51 / $18.25 $11.0 $19.99 $1.73 to $6.25

310

Post Drivers Hydraulic Post Drivers All prices subject to change Freestanding, leg, 3.8m mast 150 x 75 UB beam (205kg) 3 bank valve, manual adjustment Freestanding adjustable leg, 227kg hammer-4m mast, 180UB beam, 3 bank valve, Hyd angle adjustment

$22,850

Field master

4.5m heavy duty Tri-Beam mast with hydraulic fold, 230kg block, 5 bank valve with hydraulic top link and angle adjustment rams & Hydra side shift, 600mm, counter balance weight and open tool box

$18,995

Kidd

Rear mounted 3pt linkage post driver. 120 hydraulic slew to operate either side of the tractor or anywhere in between

$11,990

Pro mule 4.5 Pro-Tek

Rear Mounted

$10,950

Protech P400STM

400kg driving weight - 3.2m Hardox Telemast c/w 1m extension to 4.2m - Domex 800mm extendable Teleboom - Hydraulic 120 degree Teleboom slew - 4 way 35 degree hydraulic mast crowd - Hydraulic independent front legs c/w large feet - Hydraulic mast leg - Full external multi section remote lever control valve

$37,990

Protech Evois

self-propelled tracked post driver that can be easily operated by one man and intended as a large farmer or contractors machine. As the EVO1S can be trailered and towed behind a ute it is easy to travel in comfort between jobs and have all the equipment on hand even for the biggest jobs. This tracked unit performs well on wet and steep applications and enables contractors to fence where conventional tractor/driver combinations cannot reach.

$165,000

Post Hole Borer

Outdoor Power Equipment: 159 cc– Posthole Borer, two man man unit, Power Head only. Augers available 100, 150, 200 & 250mm 52 cc one man post hole borer single auger 200mm $600-850. 311

$1,099.

Electric Fence Energisers

Gallagher: indicative retail pricing only Mains Energisers

M12,000i

$5,042

M5800i

$1672

MB2800i

$2,186

MB1800i

$1,638

Powerplus M300

$455.12

Powerplus M600

$640.33

M1000i

$1,100

Battery Powered

B200 – suitable for 10 hectares

$480

Solar Powered

S20Portable – suitable for 1.2Ha

$350

S40 Portable – suitable for 2Ha

$726

Insulators

Gallagher: indicative retail pricing only Plastic: High Strain Insulator White – 25pk

$75

Wood post Claw Long Life Brown – 25pk Pinlock wooden post – 25pk

$14.88 $25.50

Wood post Insulator 40mm tape – 25pk Offsets – pigtail offset 175mm – 5pk

$45.03 $17.50

Wooden post insulators 25pk Wooden post insulator offset pinlock 300mm 50pk Waratah or Y Post pinlock insulators 150pk Pig tail offset top 250mm 5 pk Earth rod & clamp 3 pk Strainer / corner insulators 25pk Wire Outriggers short 5pk Pigtail outriggers 400mm 5 pk

$50.50 $276 $152 $20 $189 $75 $33 $22

312

Electric Fence Reels and Wire Gallagher: indicative retail pricing only Reel Geared only

$110

Reel Geared Quad Set 500m Turbo Braid

$850

Reel Geared triple 500m polywire

$500

Reel stand (1 to 3 reels)

$81

Lead, connector for single reel

$14

Lead, connector for multi reels

$29

Wire and Tape: Wire Lead Out High Conductive 1000m

$692.29

Polywire - Ultra white, 6 strand, 500m

$55

Turbo Wire - white XL, 400m

$167

Polytape - white, 5 strand, 200m

$86

Turbo tape - white, 200m

$309

Bungy cord 50m

$280

Euro Smart Fence Portable 50m with standards

$435

4 wire smart fence 100m

$534

Electric Fence Cable

Gallagher: indicative retail pricing only 2.5mm undergate double insulated cable (50m) Warning sign yellow

$86 $8.25

313

Electric Fencing Accessories

Gallagher products : indicative retail pricing only Testers -

Batteries -

Fault Finder Digital volt meter Live Fence Indicator Multi mains & solar

$68 $204 $40.98 $1040

Earthing Equipment:

Low loss Galvanised joint clamp 10 pack Screw in tie down (galvanised) 5 pack Screw in tie down handle Earthing stake, galvanised 2.1m 3 pk Cut out switch Clamp L shape 10 pk

$459 $17.23 $50.08 $108.17 $188 $23 $26.50

Staples Barbed staples galv

40 x 3.15 (25 kg box)

314

$223

MACHINERY, IMPLEMENTS and PLANT Many manufacturers and importers of farm and horticultural machinery do not have fixed price lists. In many instances, especially for larger models, machinery will be imported only when specifically ordered by a client, and the price will be negotiated on an individual basis. Trade-in provisions and financing arrangements, also negotiated on an individual basis, may alter final prices considerably, as will fluctuations in exchange rates.

Tractors As most manufacturers express tractor power in horsepower (hp) rather than kW, that description has been used in this manual. 1 hp = .7457 kW, ie a 100 hp tractor = 74.6 kW tractor. Readers also need to be aware that tractor power may be expressed as maximum PTO power or as engine power usually to DIN 70020 standard. For further explanation see the companion volume; Farm Technical Manual. The range is large, we do not attempt to critique and supply an extensive range, but indicative examples only.

Drummond & Etheridge Ltd - John Deere tractors: Model

4WD

Series 40 to 100 hp

$45,000 to $115,000

Series > 100 to 150 hp

$105,000 to $212,000

Series > 150 to 300 hp

$260,000 to $460,000

Series >300 to 400 hp

$465,000 to $550,000

New Holland: (C.B. Norwood) Utility and Special Tractors: T4F Series

0-40 hp

$20,000

T4N Series

75 to 100 hp

$58,918 to $95,000

Series - 4WD

100 to 150 hp

$95,746 to $147,925

Series

> 300hp

$280,675 to $ 385,657

315

Farm Bikes, Bike Trailers and Accessories Honda ATV

TRX520FA6 auto 520cc TRX500FM1 man 500cc TRX420FM2 man 420cc

Motor Cycles: CRF110 CRF150L CRF250F CRF450R

Power Steering Rigid beam rear axle, manual Rigid beam rear axle,pwr steer

2 wheeler 2 wheeler 2 wheeler 2 wheeler

110cc LAMS 150cc LAMS 250cc Trail bike 450cc

$21,787 $22,592 $18,049

$4,778 $8,995 $14,995 $14,195

Yamaha ATV/UTVs: Grizzly 90 Viking 700 EPS Viking 700 SE Wolverine 850 Wolverine RMax 10001XT-R

4x 4 4x4 4x4 4x4 4x4

$5,249 $26,899 $28,109 $32,119 $40,849

Suzuki New Zealand: Model

Engine

Capacity

Price

DR200SE

4 Stroke

200 cc

$6,990

DR -Z125

4 Stroke

125 cc

$4,399

DR-Z250

4 Stroke

250 cc

$13,999

316

Suzuki New Zealand ATV

Drive

Capacity Transmission

Price

King Quad LT

4WD

500 cc

5-Speed/Reverse

$19,495

LT-A750

4WD

750 cc

5-Speed, Multi Range

$20,500

Farm ATV Trailers and Stock Crates

Smith Attachments Ltd: (6 standard models available, also made to order. Prices subject to change) 2150 x 1250 mm

- Trailer - Mesh or Ply Deck - Stock Crate - Door: Swing or Sliding

From $1,440 From $766

1700 x 2400 mm

- Trailer - Deck: Mesh + crate

From $6,595

1900 x 1890 mm

- Trailer - Deck: Mesh + crate

From $1,738

2400 x 1200mm

- Calf Trailer - Deck: Mesh

From $2,980

- Stock Crate - Door Swing or Sliding

From $1,081

All trailers have ATV 4-ply tyres on 4-stud hubs with Taper Roller bearings, ball coupling, hot-dip galvanised steel construction

Farm Bike Accessories ATV 4 Wheeler accessories Prices subject to change Bullbar Kits

From $685

Mudflap Kits

From $300

317

Mowers, Toppers and Mulchers

Farmgard Ltd: (most product may be indent only) EKRS range

Up to 100hp Rotor

50mm diam. Mulching

$16,685

AF 180 range

Light Vine yard mulcher up to 50 mm mulching

$17,720

TFB/M 200

Up to 110hp Rotor 120mm, rakes, rear roller+scraper

$26,215

Swingarm

To suit above machines. Inter-row mower.

$7,645

ECOLOGY

Mulcher mounted inter-row weeder, suit above

$7,660

Eco Sprint

rear mt offset flail mower/mulcher. Up to100hp

$30,420 to $39,635

TBM range

Extra heavy duty offset mulcher. Up to 110hp

$24,410

TBM super 300

PTO heavy duty forestry/scrub mulcher. Up to 150hp

$41,310

Land -P

Double drive version. 150-300hp

$POA

Trimax: Flail Mowers

Cutting width

Standard

Ezeemow (orchard and parks)

1.83 m

Warlord

1.44m to 2.34m

$11,990 to $14,770

FlailDek FX (Parks)

1.35m to 1.83 m

$8,790 to $10,050

Pegasus Classic (wide area)

4.93m to 6.1 m

$59,990 to $61,990

Snake (Golf, Sports, fine turf)

3.2m

$39,250

Stealth wing roller mower

3.42m

$24,590 to $25,990

Procut (orchard and parks)

1.74 to 2.89m dble roller

$10,200 to $14,860

Pasture topper mower

2.37m to 2.82m

$10,360 - $11,360

Striker (compact tractor compatible, lifestyle, sports grounds, education)

1.46 to 1.94m

$8,220 to $9,220

$7,080

Rotary Mowers

318

farmshop: KDT ActiveMow R 300 3.0 m rear disc mounted hay mower KDT ActiveMow R 260 2.6 m rear disc mounted hay mower KDT ActiveMow R 220 2.2 m rear disc mounted hay mower XT central suspension Rear mowers 3.4 m XT 390 central suspension Rear mowers 3.9 m

$27,850 $22,850 $22,550 $46,550 $48,208

Disc Mowers KDF 260 KDF 390

$29,000 $53,853

Front mounted 2.6 m 3.9m

Mowers Contractor

Mega cut KDD861 KDD941

8.6 m 9.4m

$74,900 $ 80,000

Tractor Reverse Capability Giga cut -R 861 S Giga cut R 941 incl Mower Conditioner m KDD 861 ST KDD 941 STH

8.60 m 9.40

$99,594 $113,594

8.60 m 9.40

$155,000 $171,000

319

Hay Making Equipment Hay Rakes and Tedders

Farmshop.co.nz Z 470

4.70 m

PTO driven 13 , 4 tines /arm

$27,500

Z2-840

8.4m

PTO driven

$70,500

CLAAS: (Landpower NZ Ltd) Volto 55

5.2 m

Hitch mounted tedder

$15,000

Volto 700

6.8 m

Hitch mounted tedder

$25,000

Volto 900

8.8 m

Hitch mounted tedder

$35,000

Volto 1100

10.7 m

Trailing tedder

$51,000

Farmgard Ltd: (some product may be indent only) R+ 760 Heavy duty centre swath rake - 6.8-7.6m

$37,715

R+ 820 - 7.4 - 8.2m

$41,580

Tulloch: Krone Swadro rotary rakes 3.8m to 4.2m (single rotor 3ptl) Krone Swadro 11m – 13,5m, 4 rotor centre delivery rake Krone Tedders 4.6m to 15.2m mounted to sep running gear

$16,250 to $20,680 $140,300 $15,850 to $92,190

Big Balers – Round

Drummond & Etheridge (John Deere): 960 Baler 990 Baler C441R Baler / Wrapper combo

$98,000 $120,000 $150,000

CLAAS: (Landpower NZ Ltd) R 455 UW

Rollant Uni Wrap

$185,000

R 455RC

Rollant 455 Rotocut

$110,000

V485RCP

Variant Rotocut Cut Baler

$95,000

320

Tulloch: KRONE Fortima V1500 MC net tying

$75,100

KRONE Comprima CF 155 XC baler/wrapper

$169,500

New Holland: (C.B. Norwood) Roll-belt balers – RB Series

from $76,700

Big Balers – Square

New Holland: (C.B. Norwood) BB Series

from $222,800

CLAAS: (Landpower NZ Ltd) Quadrant 5300

Rotocut large square baler

$315,000

Conventional Balers

Claas: (Landpower N.Z. Ltd.) M65Markant - Conventional Baler 65

$46,000

New Holland: (C.B. Norwood) B5060 Conventional Baler

$39,900

Bale Wrappers

Another company: 2016 prices McHale 995 LM

Small Square Bale Wrapper

$13,750

Baling Twine

Agpac Ltd: 2 ball pack varying lengths

$107.00 to $130.00

Fruitfed Supplies: (Donaghys products) No:16 Twine (1ply) No:32 Twine (2ply)

$27.82 per ball $29.56 per ball

321

Hay Handling Equipment

Farmshop.co.nz farmMax Smart grabs 17-FMaxsoft

$2,995

Smart Grabs 17-FMaxgrasqu square grabs

$3,995

Double bale grab Bale cutter & Catcher

$9,995 $9,500

load 1500kg load 400kg

Hustler soft hands Hustler scoopmax bucket grab Hustler Grabmax silage Grab MaILLEUX Log Grab Fliegl soft hands Bale grab Rata heavy duty Bale Grab Rata power cvlaw Silage ProdighGrass forks Pearson silage fork Prodig Mega Bite silage grab Duncan Bale Fork

$3800.00 $6,590 $4,500 $5,747 $2,990 $4,170 $12,000 $7,000 $3,380 $17,480 $795

Balefeeders Hustler X5000 trailed Sidewinder 2 bale feeder Giltrap DML G2 Hustler Chainless 2000 3PTL Hustler Chainless 4000 Trailed 2 bale Hustler Chainless TX205 Trailed round & square Mcintosh Multi Bale 4 Mcintosh Multi Bale double Trailed Agmech 6 bale multi feeder

322

$21,275 $7,650 $9,500 $6,250 $16,,320 $28,750 $37,000 $23,600 $29,700

Spray Equipment

Croplands Equipment Ltd : ATV Mounted 100L sprayers, c/w 6m hose, spray lance-adj nozzle, 12v on demand,

15 L/min pump

$799.00

15lit/min c/w pressure adjustment regulator, pre-plumbed

$1,125.00

for boom Boomless Pressure Nozzles for ATVs: XTBOOMKIT 2 XT nozzles approx 6m spray width BoomJet

Boomless nozzle. Difficult access/ liquidfert appln

$379.00 $602.50

Trailed sprayers, 300litre c/w 10mx10mm hose, spray lance,12 v pump, regulator kit Trailer, hitch & tank pump, boom no gun $7734. Croplands Trailpak honda pump & hose

$8,705

20 litre/min 4m boom / 20 litre/min 6m boom

$4,630.00

AR252 Honda pump fitted, 20x10mm hose, XT Boomkit

$3,795.00

30m hose, steel reel+RL10 lance / RetraSpray remote control

$8,995.00

Tray mounted sprayers: 200litre AR pump, Retraspray reel / c/w twin reels Croplands Traypak 600L twin hose reels

$6,444.00 $17,761

Accessories Hose Reels: light duty Swivel base & reel lock hose capacity 30m / 20m hose fitted + RL10 gun Double sidsed Foam Marker

$225.00 / $439.00

$3,047

Guns & Lances: Swissmex to Spot Spray pistol type gun 40bar Hoses: 20mm clear vinyl to 32mm 20bar for pesticide & herbicide Water blaster– Honda Petrol Powered AES Petrol powered ,15 litres per minute, 4000psi

323

$72 .00 to $139.00 $6.50 / $27.45

$3,990

Spraying Accessories Spray Booms 4.5, 6 & 8 m complete with nozzles Hose Reels 100 mm and 150 mm Spray Hose 10 mm ID Spray Guns

$895 to $1,350 $275 to $295 $2.95 per m $135

Three point linkage Pasture Pack – Field Sprayer Croplands 300L linkage sprayer

$10,389

Croplands Agripak 800L

$5,969

Optional Factory Fitted Extras TeeJet Computer ctrl, 3 section

$3,995

Hydraulic boom lift / c/w boom suspension

$4,650

Bertolini foam marker

$1,695

GPS Guidance options

From $2,695

Handgun Sprayers / Wet Booms

AES Waterblasters (Ag Equipment Specialists Ltd): Hurricane spray pack, including 250/600 litre spray tank, tractor driven, 20 to 75 litres per minute, hose and gun

$2,550 to $3,850

C-DAX Ltd.: ATV Mounted, Deck Mounted and Trailed Sprayers ATV Mounted sprayers, complete with 10m of 8.5mm hose, handgun, on/off switch, 12 volt pump, wiring loom, tie-down straps and hose clips. SprayRider front mount 50l / rear mount 50l / 80l boom compatible $795 Rear Mount 35l spot sprayer

$795

Pressure Nozzle Booms for ATVs: Hose reel + gun

$1,139

Croplands croppak 100L 12V

sprayer

$939

ATV boom mounting

kits

$66 to $246

324

CDA Booms for ATVs: Low volume Controlled Droplet Application boom Two to three CDA atomiser boom 3.6m to 5.4 coverage

$1,526 to $2,595

Croplands shroud booms single sided

$979

Weed Wiper: ATV trailed ‘Eliminator’ with electronic control 2.35m coverage

$2,100

ATV trailed Winged Eliminator with electronic Control 4.3m coverage

$2,990

UTV/Ute trailed Eliminator + with electronic Control 6m coverage

$6,595

Optional on board 50 Litre tank with 12 volt pump

$695

InEx weed wiper 1.95m cover includes 50 l tank, pump and controller

$1,995

Deck or trailed sprayers, include 10m hose and gun, spot spray. 12 volt pump: SO200 spot sprayers – 200 litre, deck/trailed, 12 volt

$1,195to $2,395

SO500 litre spot sprayer, deck/trailed

$2,195 to $3,695

Engine driven deck or trailed sprayers: InEx 400 litre Engine driven units Trailed and Flatdeck

$4,224 to $5,720

Accessories Hose Reels, bare. 25m to 100m, manual wind Hose 580 psi

- 8.5 mm / 10mm / 13 mm

Spray guns, lance style/pistol style

$265 to $395 $2.39 / $3.41 / $5.76 per m $55.00 to $195.00

Foam markers, single foam / double foam

$1,160 / $1,725

325

Tractor Mounted Sprayers

C-Dax Ltd: Goldline 600l, PTO Driven pump, manual pressure control, 6m boom, hose reel kit

$6,439

Goldline 800l, PTO Driven pump, manual pressure control, 6m boom, hose reel kit

$6,764

Goldline 1000l, PTO driven pump, manual pressure control, 6m boom, hose reel kit

$6,944

Goldline 1000 l, High Spec, PTO driven pump, Electric in cab control, 12m hydraulic fold boom c/w suspension, hose reel kit, 50l foam marker, chemical rinse system, chemical induction, inspection step InEx 600 l PTO driven pump, manual pressure control 50m Hose Reel kit with handgun InEx 600 l PTO driven pump, manual pressure control, 6/8m boom InEx 1000 l PTO driven pump, manual pressure control 50m Hose Reel kit with handgun InEx 1000 l PTO driven pump, manual pressure control 6/8m boom Please note freight charge will apply

$16,768

$3573 $3,919 to $4,369 $5196 $5,542 to $5,995

Knapsack Sprayers

Croplands Equipment Ltd: 15 litre knapsack sprayer

$299.00

Piston pump c/w safety chamber & gauge on lance

5 litre

$179.00

Kanters Engineering & Machinery Ltd.: KEM Low volume mist sprayer - fully automatic

$4,250

Hand Held Sprayers

Croplands Equipment Ltd: Compression sprayers

2 litre / 7 litre

326

$39.00 / $1656.00

Tractor Transport Trays Tray only

Complete

Speedy Hitch Transport Tray 3ptl 1.5m + towbar

$1,645

Speedy Hitch Transport Tray 3ptl 2.0m + towbar

$3175

JBL carry tray 1.8m

$1,056

Frontend Loaders / Forklifts J.C.B Loadalls (telescopic handlers) 538 - 60 4WD Fasttrac 42250 4WD

$158,000 $315,000

Standard Buckets, rounded shell, Euro hitch only MDE Loader High tip 2.75 m wide

$41,285

Std Buckets for Front End Loaders – Euro hitch 1.5 m bucket Euro hitch 2.0 m bucket Bison 1.80 m root Rake grapple

$2,295 $2,895 $8,295

General Purpose Buckets Wide Euro hitch John Deere

$3,595 $9,995

4 in 1 Bucket sierra 1.52m 4 in 1 Bucket 1.85 wide

327

Forklifts / other attachments Height

Lift capacity

3-point Frontlinkage mounted

Novaquip

1.50 m

700 kg

$1,950

John Deere

2.40 m

1,000 kg

$1495

pellet

Euro Hitch

1,250 kg

$3295

Grapple

Sierra

1,250 kg

$1195

Sierra

1.2m

2,500 kg

Sierra

1.5 m

1,500 kg

$1500 $2343

1.65 m

John deers

$4895

Stone fork Stone burier

0.960 m

1,000 kg

$5647

Log fork grab

1.67 m

1,250 kg

$3595

4 in 1 bucket

3.00 m

1,250 kg

$3695

grapple

All forklifts fitted with adjustable forks. Other lift heights available on request. 3 point linkage includes pins, hose and couplers; no valve or tilt ram. The front mounted includes a subframe, bolts, tilt ram/s, valve, hoses; add $400/ valve slice for cab tractors. Options available: Bin tipper – tips 150 degrees, 1,250 kg $4,200 1,500 kg capacity $4,500 Bucket attachment –wide, crowd action. No brackets, hoses nor valve 1,430mm 700kg

3 pt linkage $1039

Trailers

FMC ( Farm Machinery Canterbury) specifications

Price

6 tonne tip trailer 3.65 x 2.3 deck – tandem

$21,00

8 tonne tip trailer 4.00 x 2.4 – tandem

$24,000

10 tonne dumping trailer 4.8 x 2.4 – tandem

$28,650

Heavy duty farm 15 Tonne tip trailer– all wheel braking tandems

$45,450

328

Silage Wagons / Forage Harvesters Silage Wagons Kombi feeder

rounds & squares, plus side opening for Beet 4 bale

$52,200

6 bale

$57,600

Robertson Super

Comby

$24,700

Hustler Combi

14.2 m3

$87,500

Gilltrap RF 13

13 m3

$72,,150

Optional Extras

Large heavy duty extension

$10,900

200m chain& Slat conveyor

$3,910 Brakes upgrade air.

$5.980

Mixer Wagons

Farmgard Ltd: Diet Feeders / Mixer wagons Peecon 12m3 Feraboli over mix Kuhn 18.2 CS BVL-Mix

18 m3 24 m3

Twin auger mixer wagon Twin auger mixer wagon

$75,000 $65,665 $105,500 $35,500

Forage Harvesters

Drummond and Etheridge: CLAAS 870 - 990

$900,000 to $1,000,000

Grain Crushers Grain mill 2500kg/hr Electrical costs extra

$6,500 ex factory

329

Fertiliser and Prill Applicators C-Dax Ltd:

C-DIT 300 litre capacity, 12v spreader, spinner disc, 24m spread

$3,640

400 Litre smart control Hand-Held Electronic Applicator for dry granules – fertiliser model

$6276 $3,135.00

For very fine grained materials – herbicide model

$2,990.00

Croplands Equipment Ltd: Granular applicator. 10 litre capacity up to 5m spread

$120.00

Fertiliser and Manure Spreaders and Topdressers Direct.co.nz:

Fertiliser Spreader, tractor mounted, PTO 200L ATV Trailed Fertiliser Spreader, 340L, Farmshop Fertiliser Spreaders: Trailed 6 ton Spreader Trailed 5 ton Spreader Sam Spreader 6 ton tandem axle $60,000 Dexwal PTO 500L Dexwal powdered & Granular spreader 600kg

$1,395 $1,640

$31,000 $29,000

$1,400

$3,500

Farngard Ltd: Slurry Spreader 9,000 litre tank, single axles

$63,800

Slurry Spreader 11,00 litre tank, recessed axles

$104,250

Muck side Spreader 6.8 m3 tank, single axles

$39,150

Multi Spreader 9 m3 tank, single axle

$98,250

K-two Duo 900

$48,900

Bunning Lowlander MK4

$86,830

330

Fertiliser Spreaders Giltrap Spreader Orchard Model

$42,170

Giltrap Spreader 2501 3tonne

$73,550

SAM Spreader 3.75 tonne

$15,000

Giltrap Spreader 5001 6 tonne

$69,000

CUB 4000 Spreader 4 tonne

$14,900

Trucks and Utilities (Light Commercials) Toyota:

Hilux – 2WD: Double cab SR turbo diesel Double cab SR5 turbo diesel Hi-Lux – 4WD: Double Cab GR Sport Dble cab SR turbo diesel Land Cruiser Prado: 2.8 turbo diesel GX SUV 2.8 turbo diesel VX SUV 4.5 turbo diesel VX limited SUV Prices subject to change and ORC not included.

cab /chassis -

ute $43,390 $48,390 $76,490 $51,390 $79,190$88,490$100,790

Blackwell Motors Ltd: Ute

Price EXCL ORC

Mazda BT50 GLX 2WD Double cab

$56,990

Mazda BT50 GLX 2WD Double cab low emission 1.9 Turbo Mazda BT50 GLX 4WD Double cab wellside Ford Ranger PX3 4WD D cab

$48,749 $60,190 $47,990

Ford Ranger XLT 2 WD S Cab Flat deck

$49,769

VW Amarok 4WD D Cab TDI VW Amarok 4WD D Cab V6 D ORC = On road costs

$67,000 $91,000

331

Truck Attachments

Lyndon Engineering & Harrows: Flat Deck 7000mm (l) x 2100 (w) x 2000mm head board & lashing points 3mm plate Truck Bins 6000mm (l) x 2100mm (w) x 800mm (h) with lashing points 6mm floor 3mm sides

$20,500 $18,500

(Includes design, fabrication, certification, primer – Installation additional, subject to inspection)

Cultivation Implements Ploughs

K-Line Fleximulch

3.5m speed disc

$39,900

K-line speedTiller

2962P 6m power folding

$119,000

Hooper

HD Tandem disc

$19,950

Kverneland

8 Furrow plough revers,

$85,665 to $114,000

Rippers and Subsoilers Farmgard Ltd: (some product indent only) ALCE-M Medium duty ripper/subsoilers - 550mm depth, 150 - 250hp tractors ALCE-P range Heavy duty ripper/subsoiler - 650mm depth, 200 350hp tractors

$29,410 $35,005 to $45,165

Rippers / Aerators (3 point linkage) Lyndon Ripper 1800mm –double row tynes

$2750

Nova Ripper 2400mm – single row tynes /pipe

$1695

Lyndon Ripper 3000mm –double row tynes

$3500

Cultivators

FMC Farm Machinery Canterbury Ltd: 8.0m folding hydr Cultivator

$55,749

NB: These are guidelines only as all equipment is made to individual specifications with optional add-ons available.

332

Rotary Hoes

Farmgard Ltd: (some product may be indent only) STS0066 Light duty rotary hoe 1.7m

STH065 Del Morino

Medium duty, 1.65 m < 50Hp

Sierra

2.1m < 120Hp

$3,700 $5,420 $5560 $8,156

Power Harrows Landmax

$6,250

Vigolo

3.0m power harrow

$33,000

Vigolo

5.0 folding Rotary cultivator 380 Hp

$77,500

Harrows 6m width – folding chain

$8,035

ATV combo harrows

$950

Hooper 10 x 6

$2,460

Redback

1.5 m T & C

$1,130

Ritchie

2.2m mounted chain

$2,960

Horse training track harrows - blade type harrows that cut into hard tracks Bolt on 320x70x12, 2 leaf and bar / 3 leaf and bar $2,820 / $4,205 Rollers : Cambridge Roller

3.1 m - standard rings c/w with hyd.

$19,850

IKON

6.5HD roller heavy duty

$56,678

Scimitar

3.0 m

$6,250

333

Rubber-Tyred Rollers

Taege Engineering Ltd: (freight to be arranged) Taege Tyre Rollers – Designed with two rows of inflated tyres with rocking movement for contour following: 3.000m Fixed Beam (5 wheel sets)

$6,715

3.6 – 4.0m Fixed Beam (6 wheel sets)

$10,795

3.0m - 4.3m Folding Beam Upgrade

$3,888

New 6.2m hydraulic folding beam (11 wheel sets)

$25,990

NB: These are guidelines only as all equipment is made to individual specifications with optional add-ons available. Implement Hitches 3 Pt Linkage Quick Hitch, rated up to 18,000kg GVM

$2,475

Rata Industries: Draw Bar Hitch 3 pt linkage Novaquip

3 linkage towbar

$390

3PLDH3

cat 3 linkage 38mm hook only

$1,890

3PLDH/BF

cat 2 linkage tow hitch / bale fork combo

$2,350

Novaquip

Tow ball attachment

$395

Planting Implements Precision Drills and Seed Boxes

NB: These are guidelines only as all equipment is made to individual specifications with many add-ons available

Moore Uni 3m Disc 700L hopper

$110,000

Aguirre DS-R 300 air seeder Disc Drill 2000 L hopper

$58,930

Taege 300 3m double box drill 500L hopper

$53,900

Aiotchison 3018C seed hopper 364 mL large 18 concave discs

$26,595

Krunmenacher EPS5 200L air

seeder

$11,510

Austinj Air seeder

4m 500 l hopper

$22,,600

Taege Trailing direct

3m 200L double hopper

$67,000

Moore Unidrill

Single discs 90 mm rows

$89,000

Vredo DZ5

Super compact 1.40m 235L hopper

$72,000

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Transplanters and Potting Machines

Transplant Systems Ltd: (prices ex-Auckland) Sfoggia transplanters

2 row

Optional extras

- Water unit per row

$441

- Fertiliser per row

$577

Sfoggia Vegetable Seeder

$12,285

3 row

$2,100

Tray fillers

from $24,000

Potting machines

from $26,000

Nursery seedling Transplanter

from $55,000

Cell Tray Seeders

Transplant Systems Ltd: (prices ex-Auckland) Seeders

Nozzle bar

from $8,500

Seeders

Drum (high speed)

from $37,000

Sundry seed Planters Implements direct Garlic auto 4 rows $8,000 Grimme Potato GL32B 2 row cup planter Zagrada Potato 2 row planter $4,895 Bed Formers Farmgard Ltd: Rotary hoe or Reverse Rotation vegetable bed former up to 80hp Med duty Reverse Rotation stone burier. Ideal seedbed formation <100hp

335

$45,500

$29,965 -$34,140 $21,100 - $30,150

Harvesting Equipment

Lifters, Diggers and Harvesters

Grimme : potato harvester (Landpower NZ Ltd) Harvestor 1 row PTO 3pt linkage

$3,800

GT1705

$230,000

Revo Piuma 4WD height adj, optional crop picking

$115,000

Windrowers

Grimme: Landpower NZ Ltd: Grimme Combi star CS150/CS170.S

$130,000 / $160,000

Grain Augers MKX2 westfield Farm chief

With poly spout 200mm 10.9 m reach

$31,470 $29,900

Farm Bulldozers Machine Case 850

Operating weight (kg) 9700

Komatsu DF65PX

18000

D5KVEW

9408

kW/hp

Price

102

$489,000

$360,000 $660,000

Grader Blades / Snow Ploughs AGG -up to 40hp

1.6m wide 120kg- 3 way adjustment

$1,145

NB 120-240

2.4m wide 280kg – 3 way adjustment

$8,660

Bison NVHL Contractor 300

3.0m wide 600kg – hydr 3 way

$13,000

Snow Plough Rata Hydraulic angle and V blade SP300-10V

3.0m x 1.0 high 336

$6,030

Other Farm / Orchard Equipment Fruit Bin Carriers & lifting platform

Transtak Engineering & Equipment:2023 Fruit Bin Trailers Transtak 750ATV 800kg 2-bin

$12,450

BCT 1500L 3-4 bin 1500kg

$20,,280

BCT 3500NS 6 bin; stack, tilt, side shift

$37,570

BCT 7000N 12-bin; stack 7000kg

$79,300

Orhard working platform, Kubota 26 hp, load 1600kg, height raised 3.0m $94,600 Waterblasters / Sprayers / Misters / Blowers Fosters Outdoor Power Equipment: High Pressures Cleaners RB 600 2800 psi 11.3 l/min 15m hose RB 800 3800 psi 15.1 l/m RE 90 E 1450 psi l/m BA Marborough 2000L Bertolini pump trailed 150L pm,

$2,160 $3,155 $345

$35,000

Tornado-Petrol Powered 1,750 to 5,000 psi, 11 to 40 l/min,

$1,550 to $9,350

5-24hp Honda engine Electro-blast electric 1,400 to 5,000 psi, 9 to 30 l/min (1/3phase)

$1,650 to $9,890

Steam Cleaners (Hot/Cold Water Blasters) Comet 107 KPI

$4,710

Kranzle KTH11165 2390 PSI

$12,930

Misters and Blowers 200L deck sprayer

60m hose Honda GX 160 engine

BHX2500V

Handheld 24.5cc Four stroke with Vac attachment

$390.43

RBL250

Handheld 24.5cc 2 stroke

$373.04

337

$5,520

Chainsaws

Fosters Outdoor Power Equipment Ltd: Stihl:

Bar length

Price

30.1cc

35 cm (14”)

$345

31.8

40 cm (16”)

$475

31.8 E MSA 60

35cm (14”)

Battery not included $355

40.6

40cm (16”)

$1,065

45.4

45 cm (18”)

$1,085

50cm (20”)

$1,865

Log Lifter

Te Pari Ltd: Davis Starlifter

$400.00

Te Pari Brushcutters / Trimmers

Makita Outdoor Power Equipment: Makita E FDur368L Line trimmer ER2650LH Line trimmer EM3400U Brush cutter - Pro Oleo-Mac BC 300 BC 300T BC 755 master

Power rating .36V charger incl & Batt 25.4cc, Curved shaft, 4 stroke 34cc 1.15kw Straight shaft Bull handle Petrol driven 1.5 Hp 1.5 Hp 2.8 Hp

Price $967 $433.91 $1,799

$850 $1199 $1,849

Fosters Outdoor Power Equipment Ltd: Stihl FS38 to FR450

Petrol 27.2CC TO 44.3CC

338

$170 to $1,561

Rising Plate Meters / Pasture Meters / pH Meters Jenquip folding plate pasture meter incl software

$1,035

Jenquip EC20 bluetooth

$1,380

Tru-test Electronic Blue tooth EC20

$1,543

G1000 Neo Bluetooth

$1,350

Jenquip

C-Dax Ltd: Pasture Meter Tier Two with auto lift kit (c/w Console smart software)

$10,919

Pasutre Meter Sensor Manual Lift

$6,568

C-DIT 1300 3PL + APP

$13,567

Farmlands

Hay / Silage /Crop Storage Thermometer Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Hay/Silage/Crop in storage temperature measure Draminski

$899

Rain Gauges Rain gauge small / large, manual to digital

$17.91 to $139

Shoofinternational Measuring Wheels Stirling Measuring Wheel 2 counter re-set R & S Trade Centre

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$239

Portable Generators and Welders

Proline Welding Supplies: ARC: Inverter Weldtech 140A

WT140ARC

Strata 160/200A

EziArc160/EziArc200

$495.00 / $649.00

Strata 160/200A Pro-Series

AdvanceArc160/AdvanceArc200

$665.00 / $815.00

Telwin 180A Pro-Series

Technology 238

$1,295.00

MIG: Portable Type Weldtech 160A

WT160MP 160A Mig/Arc

$495.00

Weldtech 200A

WT200MP 200A Mig/Arc

$895.00

Strata Pro-Series 200A

EziMig200 Mig/Arc

$1,795.00

Strata Pro-Series 200A

AdvanceMig200 Mig/Arc Synergic

$2,055.00

Strata Pro-Series 250A

AdvanceMig250 Mig/Arc Synergic

$2,575.00

Lincoln Pro-Series 200A

Speedtec 200c Mig/Arc Synergic

$2,575.00

MIG: Workshop Type Weldtech 200A

WT205MIG Mig/Arc

$1,395.00

Strata Pro-Series 200A

XM205PRO Mig/Arc

$1,955.00

Lincoln Pro-Series 200A

Speedtec 215c Mig/Arc Synergic

$2,795.00

Unimig Pro-Series 255A

255K Transformer Mig

$2,995.00

Gas set: Oxy LPG / Oxy Acetylene

Uni-Flame Cutting/Welding Kit

Harris Pro-Series LPG/AC

825 Cutting/Welding Kit

$726.00

Harris Pro-Series LPG/AC

825 Cutting/Welding/ Gouging/Heating

$982.00

Plasma cutter: Weldtech 40A

WT40DC

$795.00

Strata Pro-Series 40A

EziCut40/AdvanceCut40

Hypertherm ProSeries 30A

Powermax PMX30AIR 340

$295.00

$449.00 / $429.00

$1,495.00/$1,795.00 $3,199.00

Welder/Generator GT Power 200A Arc

GT200W 200A DC / 5kva AC

$2,595.00

Telwin 230A Inverter

Motoinverter 254 230ADC /3kvaAC CT230 210A DC /6kva AC /3-Phase

$4,995.00

Mosa 210A Diesel

$9,600.00

Above machines are priced as packages & include leads/torches.

Generators/inverters

Honda EU 22i

Digital Inverter Generator with remote and LCD, electric start.

$2,898

Anderson

5 kw Diesel Silent Generator

$3,151

Anderson

7.5kw Diesel Generator

$3,588

Genmac

G100PS Perkins Diesel 110kVA

$47,138

ARC Welder Inverter Strata

$565

ARC Welder Power Stick 200w III

$856

MIG Welder Cigweld 185

$999

MIG Welding Promax 250DP 250A Pulse MIG Cigweld Handy

$2,295 $549

Small Engines

Honda 6kW, (8HP) @3600rpm, 25mm straight shaft, recoil, 2:1 reduction

$1,833

Pruning Equipment : Pruning knife P20 Bahco

$67

Grafting knife P11 Bahco

$74

Pneumatic shears

$502

Star 30F

341

Pneumatic loppers F 6 Star 50

$1,208

Electric Chainsaw T-Fox

$1,955

Ceramic sharpening stone

$37.70

Interchangeable loppers straight/curved blade var. handle options

from $195.00

Pruning Saws: Nishigaki

5 M tele scope

From $350

Nishigaki Nishigaki

Tele scope Lond reach lopper Tele fruit picker 1.26 – 2.0 m

$255 $195

Nishigaki

N-154 long reach loppers

$180

Extension Pole Saws motorised : Stihl. GTA

26 garden

$145

Batt pole chainsaw HTA 50

$495

Batt pole chainsaw HTA 50 with batt + charger

$765

135 Batt pole chainsaw with Batt+ cxharger

$1827

HT 1235 Petrol Ppole Chain saw

$2,115

Shaft extension 50 cm

$91

Loppers: Kiwi

for branches up to 45 mm diameter

$165

Prun-off

for branches up to 65 mm diameter

$175

Rami Lopper

for branches up to 85 mm diameter

$210

Orchard Ladders

Transtak Engineering & Equipment: Orchard Ladders

1.2m / 1.5m / 1.8m / 2.1m / 2.4m 2.7m / 3m / 3.3m / 3.6m

$310 / $327/ $334 / $368/ $396 $427 / $473 / $516 / $544

342

Transak Ltd: Work stools 600mm – 850mm Arborist 180k rated

$335-$431

3.6m

$934

Tall Orchard 4.5 m

$848

Transtak.co.nz Log Splitters

Giltrap Engineering: Hyundai Woodsplitter – 25 T

$2,699

Log splitters –trailed models Topmaq 42 Ton , log lift 15 Ton Trailed Unit Complete 25 Ton Honda GX200

$3,395 $1,549 $4,184

343

BUILDINGS and STRUCTURES Building Consent Charges

The Department of Building and Housing Levy: The rate of building levy payable under section 53 of the Act is $1.97 for every $1,000 (or part of $1,000) of the estimated value of the building work for which a building consent is issued. Building Levy Order 2005.

The Building Research Authority Levy: This levy is also chargeable on building consents for building work with an estimated value of greater than $20,000 at $1.00 per $1,000 building work. It funds research projects carried out by BRANZ (the Building Research Association of New Zealand).

Dairy Sheds

The cost of building dairy sheds varies considerably depending on the type, size & design of shed, materials used, building site (greenfield site or conversion of existing shed) and access to electricity and water etc. Round and rectangular holding yards are similarly priced, depending on backing gate requirements. If the consideration is replacing or building a new shed then dairynz has an excellent site to assist with this planning process. https://www.dairynz.co.nz/milking/ The dairy shed calculator tool is an excellent calculator is assessing the size and type of dairy required. The milking performance calculator allows you to estimate herd milking duration and labour requirements, number of clusters, milking strategy and work routine. The cost of building dairy sheds varies considerably depending on the type, size & design of shed, materials used, building site (greenfield site or conversion of existing shed) and access to electricity and water etc. Round and rectangular holding yards are similarly priced, depending on backing gate requirements. Over the last year we have seen a significant increase in costs due to Council Compliances, a large increase in Steel and Reinforcing Materials, labour costs and the increasing costs relating to Health & Safety Compliance. Complete Sheds: (including equipment) Current updated costings for herringbone and Rotary dairies, including: site works, building, platform, milking plant, refrigeration, yards, basic effluent system and associated works appear to range from $20,300 - $ 26,000 per bail. BUT, the location, size of the herd, specific requirements are all factors which effect the price per bail, it is essential that specific costing estimates are researched, there are many companies that provide this information. 344

An example of a Rotary Milking System project costings: Average Project Costs: ($,000) Platform Size (Bails) 44

Building:

340 - 370

380 - 420

460 - 480

540 - 580

Electrical

40 - 50

60 - 80

80 - 100

Plumbing

30 - 35

35 - 40

45 - 50

50 - 60

Plant & Platform

325 - 350

Drafting gate

350 - 380 355 - 400 430 - 480 Top price is with Automatic Cluster Removers 35 35 35

450 - 480 35

Total

770 - 840

840 - 925

845 - 945

1,030- 1,125

1,155 - 1,255

Per bail

$17,500-$19,090

$16,800$18,500

$15,648$17,500

$17,166$18,750

$16,500$17,928

Building costs include yard, concrete and pipe work. Site preparation, access, water and power supply to site and effluent disposal from site are not included.

Stock Underpasses

Refer to the National Land Transport Program regulations.

https://www.nzta.govt.nz/planning-and-investment/national-land-transportprogramme/about-the-nltp/ NB: the formula for cost sharing for stock crosses and underpasses, on this site. Subsidies are available depending on the councils of about $100,000 for the building of each underpass.Subsidies varied slightly depending on how much traffic used the road but was usually about a quarter of the full cost of the underpass Construction costs vary widely depending on length and width of the underpass and the type of road that the underpass is travelling beneath. The price for building a 20 to 30metre underpass is in the region of $450,000. However, the prices for State Highway underpasses are much higher. This would be more in the range of $560,000 - $1,000,000.

Indicative boxed specifications for minor used or on farm roads Box Culverts/ Under pass systems.

1m to 5m wide x 1m - 2m high

$6 - $10,000 per individual Box unit.

Box Precast / sundry components only, does not include wingwalls, kerbs or excavation.

345

Off Paddock Infrastructure

Feed Pads / Wintering Pads and Barns / Stand-off Pads There are options of covered and uncovered standoff pads, herd homes and wintering barns. Feedpad Standoffshelters examples only. 100 cow clear roofed Standoffshelter @ 8 m2 per cow = 800 m2 = $80,000 built 200 cow clear roofed Standoffshelter @ 8 m2 per cow = 1,600 m2 = $139,000 built 300 cow clear roofed Standoffshelter @ 8 m2 per cow = 2,400 m2 = $193,000 built 400 cow clear roofed Standoffshelter @ 8 m2 per cow = 3,200 m2 = $241,500 built

There are a range of options of covered and uncovered off-paddock facilities available to the dairy industry. Uncovered options include feed pads, stand-off pads and wintering pads. Housed options include free-stall barns, loose housed barns with bedding material and loose housed barns with concrete slatted floors. There is considerable variation in the costs for the different off-paddock facilities depending on the building specifications and additional features included as well as intended use (hours/day, non-lactating versus lactating animals). Free-stall barn price is influenced heavily by the price of steel and concrete and also by the type of manure management system that is included. Prices range from $2,000 to $4,000 per cow for the barn while additional associated infrastructure (effluent systems, machinery, concrete surrounds etc) typically adds a further 30% or ($600 - $1,200/cow). The price per cow for a loose housed barn with concrete slats will depend on the purpose of the shelter. If being used for duration controlled grazing during inclement weather or to feed supplement but still have cows grazing most of the day the cost is around $1,700 $2,000 per cow. However if used for wintering then the costs can be as high as $3,000 per cow as fewer cows can be housed when it is used 24/7 (full time). Associated infrastructure costs add a further 20-30%. Loose housed barns with bedding material can be constructed for $1,000 - $1,500 per cow plus the effluent management system. These systems have large on-going operating costs for the bedding material (purchase, placement, removal and spreading). The cost of uncovered wintering pads will be dependent on the feeding system used. With self-feed silage on a concrete pad the cost is around $1,000 per cow, however if feeding daily on a feed race the cost will be lower as less concrete will be required. Stand-off and feed pad costs will be dependent on the design and space allowance per cow.

346

Deer Sheds

The shed and yarding system on a deer farm must be designed and constructed to provide a safe and practical work environment for both animals and the operator. Deer are inherently flighty animals especially when stressed, and can become unpredictable when handled. It is therefore important that sheds, yards, and races are designed to eliminate the chance of injuries. A great set-up will provide an efficient flow of deer from their paddock, through the race, yards and shed, allow them to undergo their various treatments and be back out grazing in the paddock in as little time as possible, without a fresh carpet of deer hair shed onto the floor Refer to detailed requirements https://www.deernz.org/deer-hub/handling-andwelfare/handling/shed-design/ An example of a shed design. Deernz.org.

Indicative costings Deer Complex: Sheds, price includes stamped concrete floor, nova-lite panels in roof, spouting and downpipes, walls clad

347

$41,823 - $75,000

Woolsheds

Calder Stewart Industries Ltd: Woolsheds - $1,000 to $1,050 per m2 A basic 3 stand level shearing board woolshed with the floor approximately 2.4 metres above ground level, costs between $1,000 and $1,050 per square metre to erect.The floor area for such a shed is 126m2 A basic 4-stand shed as above would have a floor area of 167m2 and the cost per square metre would be about the same. Raised Board Sheds Add a premium of 5% for a raised shearing board shed. Plus add the following "Extra Values" to 3 or 4 stand sheds to determine the overall costs of woolsheds. Freight $4,000 average Electrical $10,000 Internal painting &floor sanding/varnishing $5,000 Accommodation & builders travel $5,000 for sheds over 100km from Napier. Covered Yards Basic covered yards excluding sheep yards and gates vary between $160 and $190 per square metre.

348

Stockyards - Cattle Stronghold:

Cattle Yard 136 including crush and force pen

$39,999

Cattle Yard 171 including crush and loading ramp

$36,999

Calf Pens 2x4x4m to 10x2x2m

$3,399/$7,099

Cattle yard 10 head to 30 head portable

$5,299/$8,699

Cattle yard 10 head to 86 head permanent

$6,599/ $29,999

Cattle yard 97 head

$29,999

https://www.stronghold.co.nz/ Cattle Equipment

Te Pari Ltd: Cattleyard Gates 600mm to 3600mm x 1320mm h 5 rail, 1400mm and 1580mm high 6 rail

$360.00 to $770.00

Slam latches left or right – Heavy duty /extra striker plate

$99.00/$18.50

Slam latch economy type

$37.50

360° Pole Kits 2.5m wide, 1580mm h 6 rail

$1190.00

Sliding gate / post or rail brackets extra

$950.00

Sliding gate top handle for cat walk -locking

$250.00

Anti backing ratchet

$650.00

Post Extender Bracket

$75.00

Catwalk Brace

$80.00

Drafting Race

Te Pari Ltd: 3 Way Draft Module Standard

$5,500.00

349

Loading Races

Te Pari Ltd: Cattlemaster Stepped loading ramp - catwalk

$6,000.00

Cattlemaster - Dual height

$26,500.00

Headbails

Te Pari Ltd: (Further features available for purchase) Cattlemaster lifestyle series – Vario Cattlemaster utility series - Auto Cattlemaster -Vario Multio Purpose Handler Cattle Head Bail C1000 LH & RH operated Cattle Head Bail Auto operated

$1,250.00 $2,700.00 $8,500.00 $3,500.00 $2,700.00

See also Section 2.3.15 Stock Management. Cattle Crushes Te Pari Ltd: (Further features available for purchase) Lenta Lenta MS1 tepari.com

$12,000 $9,750

Stronghold: Vetless Crush Squeeze Crush https://www.stronghold.co.nz/

$6,999 $12,999

350

Stockyards - Deer Kelvin Kimber : Outer Yards, various plans available Plans D, E and F - 40 m yard walls, 3.6m, 3 x 3m, 1.8m gates, loading ramp

$25,000

Complete Yards with 500 head capacity (9m x 7.5m) would cost in the region of $50,000 to $75,000 depending on specs (includes some holding pens outside the shed). Gates

Gate catches

1.2m wide 2.2m high

$420

2.4m wide 2.2m high

$710

3.6m wide 2.2m high

$987

12mm pin frame catch

$29

12mm pin, spring & flat/16mm pin, spring & flat

$13.83/$11.04

Loading Race

Kelvin Kimber: Loading Race Loading ramp, free standing

$3,900

Deer Crushes

Kelvin Kimber: Hydraulic crush Crush, side loading, padded, manual operation Hydraulically controlled deer crush Standard Model

$27,000.00 $7,400

from $24,995.00

351

Stockyards - Sheep

Stronghold: Price varies markedly, depending mainly on capacity. Sheep Yards 73 head permanent Sheep Yards 180 head permanent Sheep Yards 483 head permanent https://www.stronghold.co.nz/

$6,799 $13,499 $15,299

Sheep Handlers Sheep Handler – Fully Automatic,

From $17,995

Technipharm Stronghold: Standard Sheep Handler https://www.stronghold.co.nz/

$2,099

Loading Ramps Stronghold: (freight additional) Sheep Cattle Heavy duty with catwalk Cattle - Heavy duty with catwalk and loading platform https://www.stronghold.co.nz/

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$735 $5,999 $9,250

Greenhouses, Growing Tunnels and Tunnel Houses Redpath Pacific Ltd: Commercial:

Crop King curved rafter truss house. Double ridge ventilation 30% roof area, twinskin covers, up to 2.7m stud height, crop support, doors, 180 micron Duratough 4 year life minimum greenhouse film 6 metres wide,21m long apex H 2.7m

- kitset

Propagation Greenhouse: Semi-commercial, Sizes 2.36 x 3 m 2.36 x 4.5 m 2.36 x 10.5 m roof vents 2.35 x 10 m timber based frame

$9,196

$1,349 $1,400 $2,249 $3,045

Harford Maxi Span, twin vents, 9.2 metre span, 2.1 metre column, unpainted, one set double sliding doors, motorised vents but no controller: 48 metres long From $33,711 Harford: Super Maxi Span, twin vents, 12.5 metre span, 3.0 metre column, unpainted, one set double sliding doors, motorised vents but no controller:

60 metres long

From $59,334

Budget Span

from $48 per m²

Crop topper

from $31 per m²

Sliding doors

$909.00 per set

Wind and temperature controllers

$1,470 to $6,800

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Redpath Pacific Limited: Lo-Tunnel Cloche Frames Frame width

Frame height

0.55 1.0 Rods Fibre Gl

0.55 m 1.0 1.2m x 4.5mm dia 3.6 m x 13mm dia

Keri-Tough Cloche Plastic Price per pack $40 $25 $3.80 / ea

Roll width

2m 3m 4m

50 50 50

$13 /ea

2 – 8m wide cut

Roll length 10 m 7m 5m

Price per roll

t to length

$2.20/sqm

$40 $40 $40

Gardner size tunnel houses 2.36m x 3 m length

$999

2.36m x 6m length

$1499

2.36m x 10.5m length

$2199

2.36m x 21m length

$4398

2.36m x 24m length

$4890

Greenhouse Film Price per roll Agpac Heavy Duty Polythene 125 micron 100m

$159

Agpac Polythene black 125 micron 4m x 50m

$138

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Cosio Industries Ltd: Building and Agricultural Polythene Width Length Black 1 to 4m 50 to 100m 1 to 5m 50 to 100m 2 to 4m 25 to 50m Clear 2 to 4m 50 to 100m 1 to 4m 50 to 100m 1 to 5m 50 to 100m 2 to 4m 25 to 50m Polygro clear per m

Gauge 80µ 125µ 250µ 50µ 80µ 125µ 250µ

$55.00 to $110.00 $74.00 to $230.00 $105.00 to $210.00 $92.50 $78.00 to $156.00 $118.25 to $315.00 $225.00 to $450.00

200µ

2/4/6m wide

$6.90/$13.80/$20.70

200µ

8/10/12m wide

$27.60/$34.50/$41.40

Polygro Reinforced Film 2m / 2.4m x 50m roll, clear Greenhouse Film Lock Single Base 4m length / Twin Base 4m length

$285.27 / $336.62 $28.50 / $67.00

Steeltight screws 12 x 20 per 100 each

$21.00

Timbertech screws 12 x 25 per 100 each

$28.00

Ducting- layflat polythene tube, clear, varying sizes

$98.00 to $243.00

Frametape - film protection adhesive 30mm/50mm/110mm

$25.00 to $95.00

Greenhouse repair tapes- clear UV stable tape

$14.18/ $26.99

25m x 48mm / 96mm 400mm x 25m / 50mm x 25m

$101.54 / $43.58

Mulch film, black, 30µ, 500m x 900 / 1,200 / 1,800mm

$138.00 to $425.00

Cloche film/row covers, clear 50µ,

$270.00 to $450.00

500m x 1,200 to 2,000mm Cosio.co.nz

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Glasshouse Heating / Controllers

RCR Energy Products International: Indirect Air Heaters (Flued): Greenhouse heaters. Aquatherm Clever AH series have a size range of 100kW to 1500 kW with the option of natural gas or diesel oil as fuel. Hot Water Air Heaters: Aquatherm Clever SB series fan coil units from 100 l/s air to1500 l/s (3kW to 60 kW heating). Aquatherm Clever MC series air handling units from 300 l/s air to 20,000 litres per second (12kW to 800kW).

$16,000 to $52,000

$2000 to $5,500 $4,000 to $50,000

Greenhouse Radiators: Econorad series radiators, with additional special coating $200 to $3,500 for protection, size range from 140 to 770mm height x 500 to 4,000mm long. (Freight not included. Prices may fluctuate depending on exchange rate.)

Exal Industries Ltd: Exal Heating Cable Suit Area m2

Length Metres

1.1 1.7 4.4 5.0 5.6 6.6

20 30 80 90 100 120

Power

Price

200 watt 300 watt 800 watt 900 watt 1,000 watt 1,200 watt

$283.00 $318.00 $514.00 $535.00 $555.00 $654.00

Glasshouse thermostats: ETP 0 - 40 std ETP 0 - 40 phase interrupt ETP 0 - 40 3 stage Aspirator box S/S c/w fan, guards, hooks ETP 0-40 Internal Module

$105.00 $125.00 $144.00 $240.00 $68.00

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Stainless Steel Electric Fan Heaters 3,000 series

7.5kW

$2,450

3,000 series

10kW / 15kW

$2,600 / $2,750

4,000 series

20kW / 30kW

$3,940 / $4,260

Redpath Pacific Ltd: Environment Controllers

from $4,900

RCR Energy Products International: Greenhouse Hot Water Boilers: Aquatherm Ygnis AY and EM series boilers have a range of 100kW to 4,000kW with option of diesel oil, natural gas, $12,000 to 150,000 TLP gas or LPG DeDietrich small, wall-hung boilers in LPG, natural gas, diesel, 30-100kW. $2000 to $7,500 DeDietrich floor mount boilers in LPG, natural gas, diesel, 100-1500kW. $10,000 to $70,000 (Freight not included. Prices may fluctuate depending on exchange rate.) Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Min-Max outdoor mercury thermometer Soil Temperature Thermometers Infrared – Surface temperature (not for animals)

$19.96 $17.35 to $26.04 $129.57

Thermometer – propagating / soil

$13.00 / $14.40

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Glasshouse Ventilation

Exal Industries Ltd: Euroemme Extractor Fans

Product ED 24 3PH / 1PH ED 30 3PH / 1PH EM 36 3PH / 1 PH Vortex Circulation Fan Evaporative EV 1,200 Cooling Units EV 1,800 EV 2,400 EV 3,000 Celdek Pad 1000mm x 600mm x 100mm Automatic EL 1,200 Louvres EL 1,800 Louvre motor / louvre per m / pivot & pin

Price $1,120 / $1,200 $1,300 / $1,380 $1,475 / $1,560 $385 $840 $980 $1,125 $1,385 $100 $1,100 $1,350 $490 / $24 / $1.70

Kanters Engineering & Machinery Ltd: Greenhouse Circulation Fans Fan and Stand Combination (mostly custom ordered)

$390 $655

Glasshouse Watering

Cosio Industries Ltd: Aquafelt capillary watering mat Reinforced, white, 1,050mm x 25m rolls / 2,100mm x 25m rolls Cosio.co.nz

$285.00 / $570.00

Richard Anderson Greenhouses Ltd: Misting equipment Minimist II system – complete 24v DC Misting nozzles Sense leaf Growfast digital thermostat Growfast Minicable 150 watt Andersons

$467.00 $7.00 $71.00 $125.00 $91.00

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Houses / Cottages

Cottage Company Canterbury: Up to 50k delivered. One bedroom

$199,000 to $263,000

Two bedroom

$259,000 to $298,000

https://www.cottageco.co.nz/instant-quote/

Garages

Durobuilt Industries Ltd: All Steel: Zincalume cladding 6m x 4m / 6m / 9m

from $6,674 / $8,276 / $10,132

7.2m x 6m / 9m / 12m

from $9,838 / $13,182 / $17,305

6m x 3.6m steel carport

from $1,942

6m x 5.4m steel carport

from $2,515

9m x 6.3m steel carport

from $3,981

Implement Sheds / Haybarns / Stock Shelters / Dog Motels Goldpine:

Small Block Implement Sheds - 3m wide bays, 3m stud, open one side. Coloursteel additional cost. 5m x 4m 1 bay roof only 4m x 6m 2 bays 3.6m x 6m 3 bay gable 3.6m x 6m 4 bays lean-to 4.5m x 9 m 4 bays lean-to Includes spouting and flashings. Lifestye Barns 3.5m x 7m 3 bays / extra bay 4.5m x 9m 3 bays / extra bay Includes roller door, PA door, spouting and flashings. Goldpine.co.nz

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from $4,297 from $10,497 from $13,977 from $15,897 from $24,997

from $28,297 from $37,797

Haybarns / Packing Sheds / Calf Sheds

Durobuilt Industries Ltd: All steel, 4m bays 17m x 15m

4 bays / extra bay

from $47,432 / $8,121

17m x 18m

4 bays / extra bay

from $55,238 / $9,505

17m x 21m

4 bays / extra bay

from $60,483 / $10,243

Calder Stewart Industries Ltd: Indicative prices ($/m2) for erected farm buildings Covered Yards $250 to $300/m2 Implement Sheds $350 to $400/m2 Haybarns $300 to $350/m2 Farm Workshops $450 to $550/m2 Storage Buildings $450 to $550/m2 Calf Sheds $300 to $350/m2 Wintering Sheds (Roof Only) $250 to $300/m2 Prices may vary depending on location, size, number of walls, floors, windows and general layout etc. Calf Rearing Shelters – 2.2m stud, open one side 6m / 9m x 6m

from $8,000 / $9,500

Calderstewart.co.nz Trade Tested: (NB this is an online store. Always check availability & current pricing)

Heavy Duty Temporary Shelter 6m x 6m x 3.7H. Removable gates.

$5,399

Canterbury Landscape Supplies: ex yard. Prices don’t include freight $/m3 Untreated Sawdust Untreated Shavings Tree Grindings / Canterbury Bark Canterburylandscapesupplies.co.nz

$30.00 $30.00 $42.00

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Dog Motels

Aabaas Industries: (Prices are ex Christchurch factory and exclude GST) Motel (kennel + run) Small $525 Medium $705 Large $770 Extra large $845 Double Small $1,025 Doulbe Medium $1,400 Double Large $1,525 Double Extra $1,690 Large Triple Small $1,555 Triple Medium $2,105 Triple Large $2,295 Triple Extra $2,555 Large www.aabaasindustries.co.nz

Kennel

Run

$285 $385 $430 $470 Kennel $ x 2 Kennel $ x 2 Kennel $ x 2 Kennel $ x 2

$240 $320 $340 $375 $485 $640 $680 $750

Kennel $ x 3 Kennel $ x 3 Kennel $ x 3 Kennel $ x 3

$720 $960 $1,020 $1,125

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Bridges

Hynds Rural: Landspan Bridge Systems (Beams 16 m lengths $65,000 and Abutments) Deck Slab Bridge ( Decks and 4.5m wide (Single or Double slab) $21,000 Abutments Precast / sundry components only, does not include excavation, wing walls or special abutments. Stahlton Engineered Concrete: (prices exclude handrails and abutments) Pivot Irrigator Bridge slabs 1.2m wide For 3.5 ton loading only Up to 8m span 200mm thick $120 per linear metre 10m to 13m span 300mm thick $140 per linear metre 16m to 19m span 400mm thick $155 per linear metre Double TT Bridge Slabs 3.6m wide Rating Maximum span HNHO 72 12m Class 1 14.0m 20.0m V –7 tonne 9m span / 10m span / 12m span $12,946 / $13,870 / $15,970 14m span / 16m span $17,860 / $20,076 18m span / 20m span $20,018 / $23,940 Please note these prices are based on current market rate and will be subject to fluctuation. Access Crossings (Culverts): 300mm diameter pipe - supply and install $220/m Headwalls if required – each unit $2,350 Plus fee to deliver equipment to site.

Grain Silos A sample of suppliers currently listed in New Zealand, that supply silos, http://smartsilo.co.nz/ https://jpmarshall.co.nz/ https://dancosgrove.kiwi.nz/cosgrove-silos/ https://www.pmr.co.nz/products/grain-silos the tables list some technical specifications and associated costings, for up to date costings and specification contact the suppliers.

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Dan Cosgrove Ltd: Farm Sized Silos Model

Diam (m)

Overall height (m)

tonnes Wheat

Barley

Capaci ty m3

Wholesale price

15/4

4.58

4.59

$5,938

21/5

6.40

5.93

123

103

152

$10,318

21/6

6.40

6.74

144

121

178

$11,164

21/7

6.40

7.55

165

139

204

$12,123

24/9

7.32

9.45

274

232

338

$15,675

All prices are ex Timaru factory. All silos are supplied complete with walk-in doorways, external wall ladder and dyna bolts. Safety cage is included. Silo ladder fits down to 1.6m from silo base.

Transportable Silos

Dan Cosgrove Ltd: 300 Cone Base Height under valve 0.5m. Auger length 45’ Model

Diam (m)

Overall ht (m)

Wheat (t)

Barley (t)

Price

CB12/3

3.66

4.93

$8,000

CB12/4

3.66

5.74

$8,400

CB12/5

3.66

6.55

$8,950

CB12/6

3.66

7.36

$9,600

Silos come complete with external wall ladder.

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High Legged Transportable Silos

Dan Cosgrove Ltd: Five legs, 300 Cone Base Height under valve 1.4m, Auger length 45’. 450 Cone Base Height under valve 0.6m with valve, 0.85m without. 600 Height under valve 0.68m Model

Diam (m)

Overall Ht (m)

Wheat (t)

Barley (t)

Price

HL12/3

3.66

5.930

$8,750

HL12/5- 450

3.66

7.550

$10,920

HL12/3-600

3.66

6.800

$11,984

HL12/4-600

3.66

7.400

$12,656

HL12/5-600

3.66

8.500

$13,767

Prices include free transport up to 100 kilometres from Timaru and $3.30 per km plus GST thereafter. c/w external wall ladder.

Feed Silos Kit-Set Feed Silos

Dan Cosgrove Ltd: All prices ex Timaru factory (kitset price - erection and transport extra). Tonnes Wheat

Tonnes Barley

Cubic metres

Overall Height

1.83 diameter with 600 centre draw hopper to 450 mm opening 3.32 2.81 4.1 3.280 5.05 4.07 6.24 4.090 6.78 5.46 8.37 4.913 Factory erection cost $800 2.74 diameter with 450 centre draw hopper to 150 mm opening 6.92 5.90 9.03 4.299

Price $3,078 $3,251 $3,424

$4,220

10.59

9.03

13.82

5.113

$4.521

14.26 17.93

12.16 15.29

18.62 23.42

5.927 6.741

$4,721 $4,937

2.74 diameter with 600 centre draw hopper to 450 mm opening 8.41 7.17 10.98 4.187

$4,167

12.08

10.30

15.77

5.000

$4,497

15.75 20.84

13.43 17.68

20.57 25.37

5.815 6.629

$4,697 $4,881

Factory completion cost + $1000

Factory completion cost + $1,100 364

Diesel Tanks Price varies with each application depending on the fittings and containment required, plus location and transport. 900 litre stationary Promax tanks

$2,113

1,000 litre portable basic tank with pump

$2,000

1100 Litre Aluminium split petrol/ Diesel with pumps

$9,980

Killing Sheds Pre-cast Concrete

Hynds Rural: Fly screen water fittings, rails

2.67 dia x 2.4 height $ 6,374

Dangerous Goods Sheds Hynds Rural:

2.6 Dia x 2.5 H

Dangerous Goods Shed

Weight 5300 kg$6,957

Building Materials Roofing

Placemakers:

Corrugated Zincalume .40 1.9m / 2.5m Sunclear Corr Roofing 3600 x 860mm Marley Stormcloud spouting MS 5m Marley Stormcloud spouting Joiner MS5 Marley 80mm RP80 round downpipe-3m

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$299per sheet $50 per sheet $90 per length $4.88 each $38 per length

Cement Products Builders mix Builders mix cement aggregate Concrete fix Repair Masonry Mortar Reinforcing mesh

Ready mix 800kg bag 25kg bag 20kg 0.7mm, ½ m3 1 Litre 10 Litre 20kg 4.68m x 2.95m

$249 $9.99 $15.99 $145 $72 $89 $12.94 $125

Cement Shingle Products

Canterbury Landscape Supplies:

$/m3

Small River Stones (20 / 40ml) Top Course AP 20 / Crusher Dust 10mm chip / 19mm premix Washed plasters Sand Lime Chip 20mm / Amuri lime chip Mt Hutt 50 mm

$84 $84 $90 $135 $165 $90

SHELTER and FARM FORESTRY COSTS Seedling Trees Southern Woods: Acacia floribunda Acacia pravissima Austroderia toe toe Chamaecytisus palmensis Cupressus x lusitancia Cupressus torulosa Photinia Pittosporum tenuifolium Populus euramericana Salix – matsudana

Grade cm

Ea /100 +

25-60 / 4.5L 40-95 Root trainer 20-30 1L - 2.5L 1L - 2.5L 1L - 2.5L - 2.5L Bare rooted Bare rooted

$5.50 / $4.40 $5.50/$4.40 $5.50/ $4.40 $5.50/$4.40 $5.50/ $4.40 $5.50/ $4.40 $4.86 -$11.74 $15.00 /$12.00 $9.20/$7.20 $4.65/$2.55

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1,000 + $3.85 $3.85 $3.85 $4.40 $3.85 $3.85 $4.44 - $11.74 $10.50 $6.30 -

Appletons Tree Nursery:

Note: Quotes will be given on large orders. Orders in multiples of 10 Prices 50+ Ea $7.85 $6.60 $6.60 $5.05

Prices 1,000 Ea $3.50 $3.55 $2.65

Seedlings

Price per 10

Price per 50+

OP Plus GF pinaster Pinus koraiensis Pinus sylvestris

$3.70 $6.60 $6.60 $6.60

Italian Alder (Alnus cordata) varying heights Douglas Fir 2yr old Seedlings Quercus (Oak) species in varying heights Poplulus crow’s nest Pinus radiata

$0.95 $3.55 $3.55 $3.55

Forestry Establishment and Tending Costs

The following figures have been kindly updated by Forest Management Ltd. Readers should note that costs vary markedly according to region and locality, size of woodlot, slope, access and vegetation etc. It is recommended that farmers seek advice from qualified persons before incurring any significant expenditure on forestry project work. Likely costs for forest operations average data from NZ Forest service, twenty-three surveys were returned. Surveys related to: Northland (5), Canterbury (5), Nelson (1), Auckland (2), Waikato (1), West Coast (1), Wellington (1), Bay of Plenty (1), Hawke’s Bay (2), Tasman (1), Top of the South (1), NZ wide (1), South Island (1). Establishment Spot spraying before or after planting easy hill Hand - plant radiata (bare rooted)- easy Hill Fencing costs 8 wire post & batten Netting earth Works preparation for fencing Average cost delivery to site x nursey

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$667/ Ha $7,044/Ha $26.7/m $21.7/m $860/day $2.26/ km

Nutrition Hand fertilising (phosphate)

30 to 45 cents per tree

Aerial fertilising (phosphate) by helicopter

$450 to $560 per hectare

Aerial fertilising (nitrogen) by helicopter

$410 to $550 per hectare

Oversowing (grass/legumes) plus fertiliser by helicopter

$410 to $550 per hectare

Boron fertilising/Ulexite @ 60kg/ha for 10-20ha

$148 to $188 per ha applied

Tending Pruning

- per crown removed

$0.50/m

Current

Log prices indicate advantage

First

Lift cost

$1100/Ha

Second

Lift costs

$1000 /Ha

Third

High lift costs

$800/Ha

Plant/ pest

Control woody & vine weeds

$104/Ha,

general costs after lockdown

$300/Ha

to unpruned range $60 - $100/m3

NB: combined Pruning costs decrease by on average 20%, Pruned log Price increase by 20%.

Logging and Transportation Costs, (NZ Forestry data) Task Logging

Price - Ground based logging

$35-$45/m3

- Cable logging

$55 -$60/m3

Roading

- Range from

$5-$10 /m3

Log transport, averages

$25-$35/m3

For small holdings less than 100 ha expect to add up to 100% to these costs. The range of conditions are so variable, that people are advised to get a direct quote or advice in their region.

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Tree Planting Equipment Levin Sawmakers Ltd:

Planting Spades - length 960mm, blade length 300mm,

$135

Planting Frame with Harness, Waist Pad + Belt complete

$392

Forestry Ladders,

Forestry Ladders with bolt on / weld on top

Plain

1.2m

$293

2.4m

$388

3.6m

$521

4.5m

$633

Shelter / Windbreak / Shade and Weed Cloth Cosio Industries Ltd:

Shadecloth 25-30%

Green/White, 2 - 4 x 50m

$155.00 / 310.00

Shadecloth 50-60%

Green/White/Black 2 - 4 x 50m

$298 / $596.16

Shadecloth 70-80%

Green/White/Black 2 - 4 x 50m

$351.90 /$703.80

Shadecloth 85-90%

Green/Beige 1.83 x 50m

Weedmat woven

Black, UV stabilised, 0.91-4.5mx50m

$55.00 $270.45

Geocil non-woven

Black, weed control,1m- 2m x 50m

$49.56 to$99.12

$336.38

Ground staples galv for weed control fabrics, 130/230 mm per 200

$20.80 / $36.40

Plastic pins for weed control fabrics, 170mm per 50/500

$12.00 / $95.00

Windbreak Ultra Pro XS

$206.50 /755.73

green/black, 1m to 3.66mx100m

Polyclips - windbreak and shadecloth fastening pkt 50/box 500 Cosio.co.nz

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$13.50 / $110.00

Landscape and Grower Supplies Ltd: Bamboo stakes bale

2.4 / 1.8m / 1.5m / 1.2m

Knitted Windbreak Knitted Shadecloth 30% Knitted Shadecloth 50% Tree tie webbing

1.8m / 3.66m x 50m 3.66m x 50m 1.83m x 50m x 100m

Landscape and Grower Supplies Ltd: Pine stakes: 1200 x 25mm x 25mm 2400 x 40mm x 40mm

$186.63/$153.97/$10 8.48/$76.99 $272.63 / $485.48 $893.65 $341.70 $46.75

$3.42 $10.91

https://www.landscapeandgrower.com/

Advance Landscapes: KBC SquareGuard Tree shelter 300mm 50 pack 450mm 50 pack 600mm 50 pack 750mm 50 pack

$64.00 $90.00 $106.00 $119.50

Weed Matting – Ecocoir mulch mats and Eci jute mulch rolls. Eco Jute roll

750gsm

2m x 30m

$379.00

Eco Jute roll

550gsm

2m x 30m

$269.80

Matt 200mm2 Matt 250mm2

50 mats 50 mats

Weedmat Polymat Wedmat Terrafet

$45.00 $34.50

1m x 50m 2m x 50m / 4m x 50m

Advancelandscape.co.nz

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$69.00 $432.90/ $845.81

COMPUTERS Farm Accounting, and farm Management software Guidelines for Purchasing a Farm Computer

Before buying a computer for their farming business, farmers should consider several guidelines to ensure they make the right choice. Here are some important factors to consider. 1. Purpose and Usage: Determine the specific tasks the computer will be used for. For farming businesses, common uses might include record-keeping, financial management, farm planning software, communication, and accessing agricultural resources online. 2. Operating System: Choose between Windows, macOS, or Linux based on software compatibility, personal familiarity, and the availability of agricultural applications for the chosen OS. 3. Processing Power: Consider the computer's processor (CPU) and RAM to handle the required tasks efficiently. Faster processors and ample RAM are beneficial for running multiple applications simultaneously and handling complex software. 4. Storage: Choose between traditional hard disk drives (HDD) and solid-state drives (SSD). SSDs are faster and more reliable, while HDDs are more cost-effective for larger storage capacities. 5. Durability: Since farming environments can be dusty, humid, and subject to physical stress, consider rugged or durable laptops or desktops that can withstand harsh conditions. 6. Connectivity: Ensure the computer has sufficient and up-to-date ports for connecting peripherals like printers, scanners, external hard drives, and agricultural equipment. 7. Software Compatibility: Check that the computer can run the necessary farming applications and software that you plan to use. Some specialized farm management software might have specific hardware requirements. 8. Display and Graphics: For detailed agricultural planning and data visualization, a high-resolution display and decent graphics capabilities can be advantageous. 9. Power Supply: In rural areas with unreliable power supply, consider investing in an uninterruptible power supply (UPS) to prevent data loss and equipment damage due to power fluctuations. 10. Budget: Set a budget and try to find the best computer that meets your requirements within that range. Balance cost with performance and durability.

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11. Warranty and Support: Look for computers with a good warranty and after-sales support to address any technical issues that may arise. 12. Portability: If the farmer needs to work on the go or in different locations on the farm, they might prefer a laptop for its portability. 13. Security: Consider investing in security features like fingerprint scanners or built-in encryption to protect sensitive data. 14. Reviews and Recommendations: Research online reviews and seek recommendations from other farmers or agricultural professionals who have experience with specific computer models. By carefully considering these guidelines, make an informed decision when purchasing a computer that suits the farming business needs and enhances productivity on the farm

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General Guidelines

NZ Farm accoun�ng and Management so�ware.

Accoun�ng so�ware is a founda�onal technology for many companies, and as a business grows having a powerful, effec�ve accoun�ng solu�on becomes increasingly cri�cal. Most accoun�ng so�ware packages offer the same basic features necessary for managing finances: accounts receivable, accounts payable, general ledger, billing and invoicing, purchase and sales orders, and repor�ng. Beyond basic func�onality, the top accoun�ng solu�ons offer addi�onal features to give users more power, flexibility and customiza�on. O�en�mes, accoun�ng solu�ons are closely integrated with other key so�ware solu�ons. Good financial plans are the backbone of successful farming businesses. Succession planning, expansion, diversifica�on or just managing through the vola�lity of commodity prices can all be planned, The following URL links are listed for a guide only, as an assistance in searching, but not as preferred so�ware packages, this is an indica�ve sample, but not a complete range on offer, Many accountants offer their own so�ware that fits their recording and processing business. htp s://www.farmfocus.co.nz/ htp s://www.myob.com/nz/small-business/industry/agriculture htp s://www.advancedaccoun�ng.co.nz/farm-accoun�ng htp s://www.bwr.co.nz/gotw-figured-farm-accoun�ng-so�ware htp s://www.xero.com/nz/ htp s://www.bwr.co.nz/gotw-figured-farm-accoun�ng-so�ware htp s://www.wkstrawbridge.co.nz/business-so�ware/figured/ A selec�on of Farm Management so�ware on the Market. htp s://www.wkstrawbridge.co.nz/business-so�ware/figured/ htp s://www.farmfocus.co.nz/ htp s://info.onside.co.nz/farm-management-so�ware htp s://www.agrimac.co.nz/ htp s://resolu�onapp.co.nz/ htp s://farmiq.co.nz/ htp s://www.figured.com/en-nz/

373

APPENDIX: INFLATION IN NEW ZEALAND What is infla�on. Infla�on in New Zealand is the rate at which the general price level of goods and services rises, resul�ng in a decrease in the purchasing power of money. The Reserve Bank of New Zealand (RBNZ) is responsible for se�ng monetary policy and targe�ng infla�on to keep it within a specific range Infla�on is the rise in price levels in an economy. 2 percent infla�on means 100 New Zealand dollars will be worth 98 dollars in one year. While the precise infla�on target varies, most economists agree that infla�on between 2 to 3 percent is op�mal for an economy. High infla�on can lead to higher unemployment because firms would rather wait and higher workers at the same price using future dollars, making the labour rela�vely cheaper. However, it affects the trade balance because of the rela�vely higher purchasing power of foreign currencies. Other risks of infla�on and defla�on Infla�on helps a country with higher na�onal debt when the debt is in the local currency, because the country can repay with the future dollars which are rela�vely cheaper. Defla�on, then, helps when debts are in a foreign currency. The main problem with defla�on is that investors prefer to hold their money, wai�ng to invest un�l it is worth more. This is par�cularly true of countries like New Zealand, where the lion’s share of employment is in the services sector.

ht ps://www.sta�sta.com/sta�s�cs/375265/inﬂa�on-rate-in-new-zealand/#sta�s�cContainer

374

Refer to this link to update the current inﬂa�on rate. htp s://stats.govt.nz/news/annual-inﬂa�on-6-7-percent/

375

Livestock, Cropping and Horticulture Introducing Enterprise Analysis

Introduction Enterprise Analysis is a means to an end, not an end in itself, it provides a valuable framework for identifying the main drivers in an Agribusiness Enterprises. A statement on a producers projected financial position, along with an operating profit statement, will give a full picture of forecast liquidity, profitability, and wealth creation. Enterprise analysis starts with inputs and outputs. Outputs or Income are based on current Market conditions at time of publication. The inputs or costs are variable costs directly associated with the enterprise being analysed. No account is taken of “fixed” or overhead costs, such as, land costs, depreciation, or finance charges. Enterprise Analysis will vary considerably between individual businesses, due to differing land quality, climate, production systems, yields, prices, and managerial abilities. The tools to analyse and manage agri-business enterprises are rapidly changing. There is not a standard template, but this publication critiques a range of land use options, and hence provides the first step in Financial Analysis. Many software-based tools and systems are available, and it is difficult to recommend the best one for individual business as the range is challenging to evaluate. Partial budgeting approach may be adopted with livestock enterprises, including estimates of interest and feed costs to provide a more accurate indication of actual returns. The interest cost takes account of the high capital requirements of some enterprises, and the fact that in many instances borrowed capital is involved. Feed costs can be ignored where there is no change in the supplementary feed required to change from one stock enterprise to another. Where there is a change however, all additional supplementary feed costs, should be included. Agribusiness Market update Links: https://aginfo.lincoln.ac.nz/ Agri Focus | Bi-monthly overview of developments in the rural sector | ANZ ASB Business News - Economic updates | ASB Business Hub https://www.rabobank.co.nz/knowledge/agribusiness-monthly/ https://www.bnz.co.nz/research A range of budget tools are provided by DairyNZ. https://www.dairynz.co.nz/business/budgeting/budgeting-tools/ http://www.dairynz.co.nz/people/employee-turnover-cost-calculator/ http://www.dairynz.co.nz/media/502536/quick_cash_budget_guide.pdf A more detailed annual budget with cash flow is available. http://www.dairynz.co.nz/farm/financial/budgets/annual-cash-budgets Losing staff, high staff turnover? The calculator helps you understand how expensive that process really is. DairyNZ provide further useful tools and suggestions to improve staff retention.

377

Beef and Lambs website also carries useful tools for the industry. https://beeflambnz.com/data-tools DeerNZ provides a comprehensive hub of information to assist with all aspects of farming, environmental profitability objectives. https://www.deernz.org/deerhub https://www.deernz.org/deerhub The NZ Ministry of Primary Industries (MPI) monitoring reports are essential information for anyone seeking to understand New Zealand’s agricultural enterprises. https://www.mpi.govt.nz/news-and-resources/open-data-and-forecasting/agriculture/ The Lincoln University Dairy Farm and the Southland Demonstration farm are both run as commercial demonstrations of best practice. Each year they generate a comprehensive budget and financial records that provide an excellent starting place to generate whole farm budgets. https://www.ludf.org.nz/

Acknowledgements: Foundation for Arable Research (FAR) NZ Winegrowers for the Viticulture Bench marking analysis NZ Potato Federation & NZ Onion Growers NZ Hop Cooperative Deer NZ PGG Wrightson livestock & Velvet marketing agents Farm consultants & Farmer inputs

Contact: Rob Reynish Business Development Manager E: aginfo@lincoln.ac.nz W: http://aginfo.lincoln.ac.nz Ph: 03 423 0233 M: +64 2753565898

378

HILL COUNTRY BEEF BREEDING COW GROSS MARGIN LAND USE CLASSIFICATION 2,3 & 4 100 Breeding Cow herd Selling Steers & Heifers at 18 months of age

CAPITAL STOCK WINTERED:

NO.

Breeding Cows

$1,200

$98,400

492

IC RSG 2yr Heifers

$1,070

$19,303

108

RSG 1yr Heifers

$663

$28,520

3.5

151

RSG 1yr Steers

$886

$38,113

172

$3,000

$9,000

5.5

189.0744

$6,819

$193,336

Breeding Bulls

VALUE

INVESTMENT IN BEEF PER STOCK UNIT

TOTAL

TOTAL SU

17 939

$206

PRODUCTION PARAMETERS Calves Weaned

86%

Death Rate

Replacement Heifers

22%

Pure Bred Cows Mated to the Same Breed Bulls or Different Breed Bulls Steers and Heifers are Sold as Forward Stores on the Farm INCOME: 18 Month Steers

$1,265

$52,784

18 Month Heifers

$1,020

$24,160

Cull Cows

$1,120

$16,843

Cull Bulls

$985

TOTAL INCOME

Av store Price/Hd $1,176

$94,773

EXPENDITURE Bull Purchases

$6,500

Drench, Supplements

100

$14.95

$1,496

Pregnancy Testing

100

$9.02

$902

Animal Health

Levies -

AHB, M&LNZ, NAIT adjusted for in the prices received

TOTAL DIRECT COSTS

8898

Total Gross Margin (before interest)

$85,875

Gross Margin per Dollar Invested in Cattle

$206

Gross Margin per Stock Unit

$91.42

INTREST COSTS Interest on Capital Stock Value:

7.50%

Return per Stock Unit (after interest)

$85

380

BULL BEEF GROSS MARGIN Dairy cross Bulls purchased as 100 kg weaners as early as possible in Spring sold at 19 to 24 months of age, (70% killed at 20 months)

Buy each Spring:

100 calves

weighing:

100 kg

STOCK WINTERED:

NO.

VALUE

TOTAL

Rsg 1 yr Friesian Bulls

$850

$83,300

3.6

Rsg 2 yr Friesian Bulls

$1,070

$31,458

Total Stock Wintered

127

TOTAL SU

$114,758

DOLLAR INVESTMENT IN BEEF PER STOCK

353 176 529

$217

PRODUCTION PARAMETERS Death Rate

2 %

SALES

NO. LESS

Sold at 19-21 months, Between March and May

70.00 %

Residual Sold at About Two Years Old in Oct/Nov

30.00 %

Sell Majority at 19 to 21 Months of Age Between March and May, Retain Balance Until Oct/Nov (Sell at 24 Months of Age).

Total to sell

INCOME Bulls 19-24 Months, Slaughtered as They Reach Target Weight

No.

Carcase Wt at Sale

275 kg

5.10 /kg

$ 134,640

TOTAL INCOME

$134,640

EXPENDITURE Weaner Bulls (100 kg)

100

$3.56 / kg

Anthelminitics (4x)

400

$2.36 / dose

$35,600

Pour On

100

Cobalt Injection

100

$0.81 / dose

$81

Copper Bullet

100

$3.00 / dose

$300

Five in One Vacc (2x)

Animal Health $944

$1.46 / head

$146

200

$1.47 / head

$294

Weaners to Farm

100

$10.25 / head

$1,025

Finished Bulls to Works

$32.50 / head

$3,120

Levies - AHB, M&WNZ

$18.00 / head

$1,765

Transport Allowance $4,145 $1,728

TOTAL DIRECT COSTS

$43,238

Total Gross Margin (Before Interest)

$91,402

Gross Margin per Dollar Invested in Cattle

$0.80

Gross Margin per Stock Unit

$173

INTEREST COSTS Interest on Capital Stock Value:

$114,758

5.00%

$5,738

Return per Stock Unit (After Interest)

$161.87

GROSS MARGIN Per Stock Unit at various Weaner and Bull Prices Bull Schedule $/kg $4.50 Weaner Price $/kg

381

$5.10

$6.75

$2.90

$155

$185

$268

$3.56

$143

$173

$255

$3.85

$137

$167

$250

DAIRY COW GROSS MARGIN Owner Operator South Island over 30% Irrigated area 'peak milking Cows: 730 Effective Milking area Ha: 230

Cows per Ha: 3.17

CAPTIAL STOCK WINTERED

NO.

Milking Cows

570

VALUE $1,900

$1,083,000

TOTAL

In Calf Milking Heifers

160

$1,750

$280,000

RSG 1 Year Heifers

160

$925

INVESTMENT IN DAIRY STOCK

890

$148,000 $1,511,000

PRODUCTION PARAMETERS Calving %

90% Surplus Calves Sold Within Two Weeks

Death Rate

Replacement Heifers

22%

Kg Milk Solids per Cow

450

Kg Milk Solids per Ha

1428

Stocking Rate Cows/Ha

3.17

Total Milk Solids kg

328,500

INCOME:

KG MILK SOLIDS $/Kg Milk Solids

Net Milk Sales

328,500

$6.50

$2,135,250

Milk Sales per Cow

$2,925

Milk Sales per Ha

$9,284

Net Dairy Livestock Sales

$200

$146,000

TOTAL INCOME

$2,281,250

EXPENDITURE

per ha

TOTAL

Breeding & Herd Improvement

$210

Animal Health

$310

Dairy Shed

$80

$18,400

$650

$149,500

Eletricity ( Shed + Irrigation )

$9,918 per Ha

$48,300 $71,300

Vehicle + Fuel

$199

$45,770

Repairs + Maintenance

$428

$98,440

Feed Expenses Supplements (Grown/Purchased)

$80

$18,400

Grazing Run Off

$1,600

$368,000

Fertiliser + Regrassing

$1,580

$363,400

Labour Wages 3 FTE

$1,150

Labour Adjustment Management

$283

TOTAL DIRECT COSTS

$264,500 $65,090 $1,511,100

GROSS MARGIN per Ha (Before Interest)

$6,570 per Ha $3,348 per Ha

INTEREST COSTS Interest on Capital Stock Value:

7.50%

$113,325

Return per ha Livestock Only (After Interest)

$2,856

GROSS MARGIN SENSITIVITY PER HA Production per Cow VS Milk Solids $/ kg $5.50

$6.00

$6.50

$9.00

$9.50

385

786

1,397

2,008

5,062

5,673

400

1,047

1,682

2,317

5,491

6,126

450

1,920

2,634

3,348

6,919

7,633

460

2,095

2,825

3,555

7,205

7,935

480

2,444

3,206

3,967

7,776

8,538

EFFECT OF MILK PAYOUT ON PROFITABILITY PER HA Payout MS Change -15%

-10%

-5%

Milk Solid $/kg

$5.85

$6.18

$6.50

Gross Margin per ha

$2,434

$2,863

$3,181

$3,348

Farm Operating Exp %

96%

81%

71%

382

10%

$6.83

$7.15

15% $7.48

$3,516

$3,867 $4,448 51% 61%

36%

MERINO GROSS MARGIN Ewe Flock Breeding Own Replacements

CAPITAL STOCK WINTERED

NO.

TOTAL

TOTAL SU

Breeding Ewes

1100 @

$137

$150,700

1100

2 th Ewes

165 @

$145

$23,925

165

Hoggets

206 @

$100

$20,625

0.85

13 @

$800

$10,120

1.1

Rams TOTALS

1483.9

205370

Dollar Investment in Sheep per Stock Unit

175 14 1454.23

$141.22

PRODUCTION PARAMETERS Ewe to Ram Ratio

100

Ewe Replacement Rate (2th vs MA Ewes)

15 %

% of Hoggets That Are Culled

20 %

Ram Culling

25 %

Wool Bale

Lambing % Ewes

95 % (Survival to Sale)

190 kg/Bale

No. Dead Resulting fr Mortality % Death Rate (Ewes/Hoggets)

4 %

Ewes/2Th

Lamb Kill Carcass Weight

17 kg

Hgts

PRODUCTIVITY

KG % SHORN TOTAL WEIGHT OF WOOL

Wool Clip (kg/Ewe)

4.2

Wool Clip (kg/Hogget)

3.1

614

Lambs Shorn Total Wool Weight

5,100

5,714 kg Wool

Lamb Price/kg ($/kg Carcass Weight)

6.50

INCOME (REVENUE PER HEAD NET OF FREIGHT AND LEVIES, WOOL NET OF SELLING CHARGE) Ewe and 2Th Lambs Sold

947 @

Hogget's Lambs Cfa Ewes Ewe Wool 20 m av

$104,691

Income Ratios

$104,691

51%

$110.50 Lmbs

$8,008

$70 Ewe

$93,231

45%

$16.32 Wool

5100 @

$15.15

$77,272

614 @

$26.00

$15,959

$16.32

$93,231

TOTAL INCOME

$205,930

EXPENDITURE Shearing Sheep

1,214 @

$450 per 100

$5,465

Hoggets

198 @

$450 per 100

$891

0 @

$400 per 100

$76.00 per 100

$1,073

Lambs Total Shorn

1,412

Wool Shed Expenses, Packs

$7,429 Animal Health /SU

$85.00 $70.00

5,714 @

Hogget Wool 16.5 m av Wool (kg) Average

$110.50

0 @ 114 @

1,454 @

$7.85

$11,416

3 @

$1,450

$4,586

Drenching & Vaccinating Dipping/Foot Treatment Ram Purchase TOTAL DIRECT COSTS

$23,431

TOTAL GROSS MARGIN (before interest)

$182,500

Gross Margin per Dollar Invested in Sheep

$0.89

Gross Margin per Stock Unit

$125.50

INTEREST COSTS Interest on Capital Stock Value:

$205,370 @

7.50%

Return per Stock Unit (After Interest)

$15,403 $115

GROSS MARGIN PER STOCK UNIT SENSITIVITY Lamb Price VS Lambing % Lambing Percentage 85

Ave Lamb

$110

$120

$127

$151

Price

$140

$141

$151

$182

125

$/hd Net

$150

$148

$159

$192

$10.00

LAMB PRICE VS WOOL PRICE Average Wool Price $/kg (net) $16.00

$25.60

Ave. Lamb

$100

$94

$117

$155

Price

$110

$100

$124

$162

$/Head (net)

$135

$117

$140

$178

383

DEER GROSS MARGIN - VELVET PRODUCTION, RED DEER CAPITAL STOCK WINTERED DESIRED TOTAL FLOCK

400

NO.

TOTAL

TOTAL SU

Spikers

65 @

$220

$14,194

1.7

110

Rsg 2 yr Stags

59 @

$427

$25,345

2.3

136.5

57 @

$450

$25,548

3.0

M.A. Stags

219 @

$1,800

$394,839

3.0

TOTAL

Rsg 3 yr Stags

400

$459,925

Dollar Investment in Deer per Stock Unit

170 658 1,075

$428.00

PRODUCTION PARAMETERS

VALUE/KG

Cull Percentage, on M.A. Stags

15 %

Death Rate.

3 %

Velvet Yields, Ranges and Prices are Extremely Variable. The Following Yield Assumptions have been made for this Gross Margin. Spiker

0.8 kg

Spiker Grade

$138

2 yr

2.6 kg

Korean Grades

$124

3 yr

3.3 kg

Korean Grades

$122

M.A. Stags

5 kg

Korean Grades

Percent Second Cut Velvet

25 %

(Third Cut is Built into the Percent Second Cut Rate)

$118

Days During Year When Supplementary Feeding Needed

100 days

INCOME: (NET OF COMMISSIONS AND LEVIES) Velvet Price - Average -

$ 120 /kg

all grades

Velvet Yields Plus the % Second Cut, with No Second Cut from Spikers Spiker

63 @

50 kg

$6,909

2 yr Stags

58 @

2.6 kg

187 kg

$23,202

3 yr Stags

55 @

0.8 kg 3.3 kg

227 kg

$27,714

M.A. Stags

213 @

5 kg

1330 kg

$156,921

Total Velvet Sold

1794 kg

Average Weight of Velvet / Stag

4.62 kg/stag

Cull Stags Sold

32 @

120 kg

8.85 /kg CW

TOTAL INCOME

Income Ratios $214,747

86.37% Velvet

$33,895

15.78% Meat

$248,642

DEER GROSS MARGIN - VELVET PRODUCTION, RED DEER EXPENDITURE Weaner Stags

65 @

$190

$12,258

Velveting by Accredited Farmer Velvet Assessment Costs - One Off Fee 1st Cut

$200.00

388 @

$9.50

97 @

$7.50

2nd Cut Animal Health

388 @

Supplements

60 Days/yr Feeding

$3,686 $728

$16 /hd

$6,111

$10,725

kg DM/Head/Day

Barley

46 c/kg DM

Baleage

30 c/kg DM

Kale

25 c/kg DM

$50,000

$0 $50,000

TOTAL DIRECT COSTS

$72,983

TOTAL GROSS MARGIN (Before Interest)

$175,659

Gross Margin per Dollar Invested in Deer

$67.92

$0.38

Gross Margin per Stock Unit

$163.47

INTEREST COSTS Interest on Capital Stock Value:

$459,925

Return per Stock Unit (After Interest)

Velvet Prices VS Meat Value ($/kg). Value of Carcass - $/kg 4.00 $/kg

$34,494 $131.37

GROSS MARGIN SENSITIVITY PER STOCK UNIT

Average Velvet Price

% interest

8.85

9.25

$115

$138

$156

$157

$120

$147

$164

$165

$130

$163

$181

$182

384

RED DEER GROSS MARGIN SELLING HYBRID WEANER STAGS AND SURPLUS WEANER HINDS ** Pregnancy Tested in Fawn ( PTF) CAPITAL STOCK WINTERED

NO.

TOTAL

SU TOTAL SU

VALUE PER KG LWGHT

6 Month Hinds av Lwght

$150

$3,713

1.5

$3.00 Red

$3.75 Hybrid

18 Month Hinds av Lwght

$523

$12,543.92

$5.50 Red (PTF)**

$6.00 Hybrid

M.A. Hinds av Lwght

115

165

$546

$90,131

2.2

363

$4.75 Red (PTF)**

$5.00 Hybrid ( PTF)**

Breeding Stags

$6,000

$28,351

3.5

16.5

TOTALS

218

$134,739

Dollar Investment in Deer per Stock Unit

465

$289.96

PRODUCTION PARAMETERS Stag Ratio

Fawning - Survival to Sale

85 %

Death Rate.

3 %

Rising 2 year Hinds Entering Herd Each Year

15 % of MA Hinds

Days During Year When Supplementary Feeding Needed

100

Surplus Weaner Hinds and Stags Sold on the Farm All Breeding Stock TB Tested Every Second Year INCOME: (NET OF COMMISSIONS AND LEVIES) Breeding Hinds Production

161

Weaner Stags (55 kg LW)

$4.00 /kg Lwght

$17,672

Weaner Hinds (50 kg LW)

$3.75 /kg Lwght

$10,838

Works Hind (100 kg LW)

100

$4.25 /kg

$10,519

Works Stag (85 kg CW)

$8.85 /kg

$752

Velvet (4 kg/hd)

$120.00 / kg

$39,781 $2,268

TOTAL INCOME

$42,049

EXPENDITURE Sire Stag Animal Health

218

Annual Vet Inspect

$8,000

$7.50

$1,639

$200.00

Velvet Removal

$9.50

$45

Freight Selling Stock to Works

$0.00

TB Test (some areas, once/2yr)

218

$4.00

$873.93

Supplements

60 Days/yr Feeding

Barley

46 c/kg DM

Baleage

30 c/kg DM

Kale

25 c/kg DM

3 $16,386

kg DM/head/day

$16,386

TOTAL DIRECT COSTS

$26,944

TOTAL GROSS MARGIN (BEFORE INTEREST)

$15,105

Gross Margin per Dollar Invested in Deer

$0.11

Gross Margin per Stock Unit

$32.51

INTEREST COSTS Interest on Capital Stock Value:

$134,739

$7.50

Return per Stock Unit (After Interest)

% Interest

$10,105.41 $10.76

GROSS MARGIN SENSITIVITY Live Weight VS Store Price Live Weight Kg 45 Live Weight Store Price

$2.80

$18

$22

$27

$3.25

$22

$27

$31

$4.50

$34

$39

$43

Animal health expenses have been estimated on a per stock unit (SU) basis, given a ‘normal’ animal health programme. There is a wide range of costs that contribute to this expenditure including scanning, drenching, vaccinating, dipping, tailing, tags and vet expenses. Accurate gross margins can only be calculated if specific programmes are costed out. Care is required when costs per head and per SU are used in gross margins. As performance increases per head, the SU conversion may alter and introduce some anomalies if not adjusted accordingly. Refer to the Technical Manual section SU relativity, ( section Stock unit Measure 1.11)

385

SHEEP GROSS MARGIN Crossbred Ewe Flock Breeding Own Replacements CAPITAL STOCK WINTERED NO. Breeding Ewes (MA 68kg lw) 1100 2 th Ewes Approx 62kg to Ram 275 Hoggets 344 Rams 14 TOTALS 1,733 Dollar Investment in Sheep per Stock Unit

@ @ @ @

TOTAL $154,000 $48,125 $42,969 $11,000 $256,094 $112.81

$140 $175 $125 $800

SU 1.35 1.3 1.2 1.1

PRODUCTION PARAMETERS Ewe to Ram Ratio Ewe Replacement Rate (2th vs MA Ewes) % of Hoggets That are Culled Ram Replacement % Lambing % Ewes Lambing % Hoggets Death Rate (Ewes/Hoggets) Lamb Kill Carcass Weight

100 25 % Wool Bale 190 kg/Bale 20 % 35 % 155 % (Survival to Sale) 95 % No. Dead Resulting fr Mortality % 4 % Ewes/2Th 55 18 kg Hgts 14

PRODUCTIVITY Wool Clip (kg/Ewe) KG/Hogget & % Shorn KG/lamb & % of Lambs Shorn Total Wool Weight Lamb Price/kg ($/kg Carcass Weight)

KG SHORN TOTAL WT OF WOOL 5 96 3 96 6,600 1.2 50990 1,416 9,006 kg Wool 7.15

INCOME: (REVENUE PER HEAD OF FREIGHT AND LEVIES, WOOL NET OF SELLING CHARGES) Ewe and 2Th Lambs Sold 1702.3 @ $130.00 $221,293 Hogget's Lambs 314 @ $115.00 $36,053 Cfa Ewes 220 @ $85.00 $18,700 Wool (kg) 9005.7 @ $3.06 /kg $27,557 TOTAL INCOME EXPENDITURE Shearing Sheep Hoggets Lambs Total Shorn Wool Shed Expenses, Packs

@ @ @

1,320 330 1,180 2,830

Animal Health /SUnit Cartage Wool - Bales Ram Purchase TOTAL DIRECT COSTS

$425 per 100 $425 per 100 $400 per 100

$5,610 $1,403 $4,719

$73.00 per 100

$2,066 Total

$7.25

$13,797 $16,458

47 5

@ @

$13.65 $850

$647 $4,091 $34,993

INTEREST COSTS Interest on Capital Stock Value:

$268,609 $1.05 $118.32

$256,094 @

7.50%

GROSS MARGIN SENSITIVITY PER STOCK UNIT Lamb , Lambing % & Wool Prices Average Wool Price $/kg (net) $1.90 $3.00 $7.00 $100 $91 $96 $111 Ave. Lamb Price $/per $130 $114 $118 $134 Head (net) $180 $151 $156 $171

Head (net)

$303,602

2,270

TOTAL GROSS MARGIN (BEFORE INTEREST) Gross Margin per Dollar Invested in Sheep Gross Margin per Stock Unit

Ave. Lamb Price $/per

TOTAL SU 1485 358 413 15 2,270

$100 $130 $180

Lambing Percentage 120 155 $73 $88 $93 $115 $128 $160

165 $92 $121 $168

386

$19,207 $110

GROSS MARGIN ANALYSIS SHEEP DAIRY Scenario: Milking flock of 900, on 60 Ha of partially irrigated land,the milking stock includes Hgts, 2ths and mixed age, the lambs are supplementary fed, usually range from 35 - 48 days to weaning, including provision for colostrum from the dam. Stocking rate for this scenario 15 per Ha, the milk contribution for the different age groups, are on a adjusted basis to allow for maturity. milking ewes for 200 days, supplements daily ration of between 0.5 -1.5kg/head / day. CAPITAL STOCK WINTERED Mixed Age Milking Ewes Lambing % 185% S/S Lamb Carcass Weights kg Replacements Total Milking Stock Farm 60Ha

750

Wool CFA

6 year olds 18.00 net schedule

2.25 Kg / Head 20% replacement rate $6.50

150 900

TOTAL MILK PRODUCTION Milk Yield per Milking Stock, (Litre) per Annum

PER MILKING EWE 261

TOTAL FARM 234,900L

Milk solids @ INCOME

17.0% MILK

Lambs Wool Surplus Stock TOTAL INCOME PER EWE EXPENDITURE Operating Expenditure Average 1 kg / day Forage

Kg MS/ewe

$3.28 $19.29

886 886 157 3 14 1,059

797,040

125 45

112500 40500

110 14 16 13 63

99000 12255 14175 12060 57000 0 95000 442,490

LITRE MS / kg $95 $1.20

$70

Feed costs** Concentrates 0.5-1.5kg/day

Artificially Reared Lamb Costs Irrigation $2.15 95mm Animal Health Shearing/Crutching Fertiliser,Lime,Regrass, Weed $950/ha Wages of Management Dairy Assistant plus Casual Contract TOTAL VARIABLE COSTS GROSS MARGINS Gross Margins

per Ewe Hectare

Litres / Ewe/ Year

141,075 2,430 914 941,459

106 541

$518.23 Stocking Rate

$7,773.43

Gross Margin Sensitivity per Ha, Price per Litre VS Increasing Production per Ewe. $ / Litre $2.00 $3.28 $3.85 $4.20 200 $489 $4,329 $6,039 $7,089 240 $1,689 $6,297 $8,349 $9,609 260 $2,289 $7,281 $9,504 $10,869 350 $4,989 $11,709 $14,702 $16,539 400 $6,489 $14,169 $17,589 $19,689

387

51%

$498,969

PIG GROSS MARGIN - FARROWING - FINISHING CAPITAL STOCK Sows

400

$650.00

Boars*

$2,250.00

$278,000

*(in Combination with Artificial Insemination) Gross Margin per Sow PRODUCTION PARAMETERS

Schedule Prices VS Feed Costs

Weaners Sold per Sow per Year

Finishing Schedule Prices

Sow Replacement Rate

45%

Boar Replacement Rate

50%

$650

-$718

$1,215

$1,698

$2,504

Meal Cost as a Percentage of Income

69%

$720

-$828

$1,105

$1,588

$2,394

2.30

$830

-$1,001

$932

6.07

$900

-$1,112

$821

Litters per Sow per Year Feed per Sow perYear (Tonnes) Mortality Sows

5.00%

Mortality Rate Growers - Finishers

3.00%

$3.50

Prime Pig Meat

72.2 kg.

$4.70 kg.

Chopper

140 kg.

$2.00 kg.

Feed Used to Pigmeat Sold (FCR)

$5.00

$1,415 $1,305

$5.50

$2,220 $2,110

0.00

INCOME

Effect of Direct Costs Changes on Gross Margin

Prime Sales

8924

$339

Cull Stock

184

$280

9108

$338.14

TOTAL INCOME

$3,028,270 $51,408 $3,079,678 $7,699.20

per Sow

EXPENDITURE Replacement Breeding Stock (Delivered) Gilts

180

$650 each

$117,000

Boars

$2,150 each

$11,288

Purchased Feed - On Farm $/Tonne Dry Sow

Tonnes

$720

349

Lact Sow

$855

196

Creep

$1,170

$21,528

Weaner

$900

329

$296,408

Grower

$830

630

$523,048

Finisher

$790

904 Total

2,427

AI Costs

1799

$25.00 per sow

Animal Health

$250,921 $167,848

$714,294 Feed Costs $1,974,048 $44,975

$133.00 per sow

$53,200

R&M

$150.00 per sow

$60,000

Electricity

$400.00 per sow

$160,000

Labour

5 staff

73%

$813

Average Feed Price per Tonne

$700.00 per sow

$280,000

Vehicles

$100.00 per sow

$40,000

Manure Management

$100.00 per sow

$40,000

Admin, Insurance, Rates, Legal .

$137.00 per sow

$54,800 Direct Costs

TOTAL DIRECT COSTS

$6,767.56

$2,707,023

Total Gross Margin (Before Interest)

$372,655

Gross Margin per Sow

$932

INTEREST COSTS: Interest on Capital Stock Value

$4.70

$278,000

7.50%

$5,373

Return per Sow After Interest

$918

388

88%

-10%

-5%

budget

10%

$643,358

$508,007

$372,655

$237,304

$101,953

GROSS MARGIN BARLEY Crop

SY transformer

Start Date

14/09/2022

Sowing Area

1.00 ha

End Date

8/02/2023

INCOME

YIELD T/HA

PRICE PER TONNE

PER HA

Grain Harvest

9.5

$520.00

$4,940.00

Forage Harvest

1.8

$116.00

$208.80

OPERATION

COST PER HA

Cultivation - Heavy Cultivation

$100.00

Cultivation - Light Cultivation

$40.00

Sowing - Disc Seeder

$125.00

Fertiliser Application - Spreader Topdressing Spraying - Boomspray (Self Propelled)

$30.00 Three Applications

$80.44

Fertiliser Application - Spreader Topdressing

$19.31

Grain Harvest-Conventional Harvester

$390.00

Forage Harvest-Large Square Baler

$160.00

TOTAL

$944.75

INPUT

PRODUCT

RATE / HA

UNIT

COST PER UNIT

COST PER HA

Fertiliser

$483.00

Seed

$221.25

Herbicide

$122.21

Insecticide

$15.00

Irrigation

Several Applications

40 mm/ha

$2.20

Fungicide

$430.00 $103.01

Growth Regulator

$36.10

TOTAL

$1,410.57

TOTAL INCOME COST OF PRODUCTION GROSS MARGIN

$5,148.80 $2,355.32 $2,793.48

SUMMARY OF KEY OPERATIONAL PARAMETERS Operational

$99.45

Inputs

$148.48

Model

$247.93

45.75%

YIELD VS PRICE SENSITIVITY Price / T 7.00

$350

$450

$520

$650

$750

$303

$1,003

$1,493

$2,403

$3,103

8.50

$828

$1,678

$2,273

$3,378

$4,228

9.50

$1,178

$2,128

$2,793

$4,028

$4,978

10.00

$1,353

$2,353

$3,053

$4,353

$5,353

11.50

$1,878

$3,028

$3,833

$5,328

$6,478

390

GROSS MARGIN ANALYSIS FOR CARROT SEED Crop

Carrot

Start Date

28/01/2022

Sowing Area

1.00 ha

End Date

28/03/2023

INCOME

YIELD

Grain Harvest

250.00 kg/Ha

PRICE

PER HA

Forage Harvest

0.00 t/ha

$0.00 /t

$0.00

Grazing

0.00 lwt kg/ha

$0.00 /lwt kg

$0.00

$42 /kg

$10,500.00

OPERATION

COST PER HA

Cultivation ( 5 Times)

$386.00

Sowing

$237.00

Spraying ( 12 Times )

$313.00

Fertiliser Application

$38.00

Cutting

$138.00

Windrowing

$130.00

Grain Harvest

$390.00

TOTAL

$1,632.00

INPUT

PRODUCT

RATE/HA

Insecticide

COST PER UNIT 3 kg/ha

$14.00

COST PER HA $103.53

Seed

Carrot Seed

3 kg/ha

$15.00

$45.00

Herbicide

Several Applications

1 L/ha

$37.00

$232.00

Fertiliser

Minimum 2 Applications

75 kg/ha

$2.30

$345.00

Fungicide

Several Applications

0.5 L/ha

$18.19

$272.00

Adjuvant

Uptake Spraying Oil

1 L/ha

$12.87

$32.25

Irrigation

Water Minimum 8 Apps

40 mm/ha

$2.10

$767.00

Insecticide

Several Applications

$16.80

Growth Regulator

2 L/ha

$55.63

TOTAL

Total

$85.53 $108.70 $1,991.01

MISCELLANEOUS

COST PER HA

Seed Processing ($0.30/kg)

$60.00

Freight ($60/t)

$12.00

Beehives ($180/hive)

$1,440.00

TOTAL INCOME

$10,500.00

COST OF PRODUCTION

$5,135.01

GROSS MARGIN

$5,364.99

SUMMARY OF KEY OPERATIONAL PARAMETERS Operational

15.54%

Inputs

18.96%

Model Cost of Production

48.90%

YIELD VERSUS PRICE SENSITIVITY Price / kg

yield kg/Ha

$25

$35

$42

$55

$60

100.00

-$2,635

-$1,635

-$935

$365

$865

150.00

-$1,385

$115

$1,165

$3,115

$3,865

250.00

$1,115

$3,615

$5,365

$8,615

$9,865

300.00

$2,365

$5,365

$7,465

$11,365

$12,865

350.00

$3,615

$7,115

$9,565

$14,115

$15,865

391

GROSS MARGIN ANALYSIS FOR FIELD PEAS Crop

Canty 14 Pea

Start Date

11/09/2022

Sowing Area

1.00 ha

End Date

13/02/2023

INCOME

YIELD

PRICE

PER HA

Grain Harvest

3.00 T/Ha

$978 /T

$2,934

Forage Harvest

1.50 T/Ha

$233 /T

$349.50

Grazing

0.00 lwt kg/ha $0.00 /lwt kg

OPERATION

$0.00 COST PER HA

Cultivation

$240.00

Sowing

$125.00

Spraying

$75.00

Grain Harvest

$390.00

Forage Harvest

$160.00

TOTAL

$990.00

INPUT

COST PER HA

Seed

$487.50

Herbicide

$24.84

Herbicide

$46.11

Irrigation

$198.00

Fungicide

$24.47

Fungicide

$19.28

Insecticide

$14.64

TOTAL

$814.84

MISCELLANEOUS

COST PER HA

Freight ($64/t)

$180.00 $3,283.50

TOTAL INCOME COST OF PRODUCTION GROSS MARGIN

$1,984.84 $1,298.66

392

GROSS MARGIN ANALYSIS FOR MAIZE Crop

P0021 Maize

Start Date

5/10/2022

Sowing Area

1.00 ha

End Date

2/05/2023

INCOME

YIELD

PRICE

PER HA

Grain Harvest

12.50 t/Ha

$590 /t

$7,375.00

Forage Harvest

0.00 t/ha

$0.00 /t

$0.00

Grazing

0.00 lwt kg/ha

$0.00 /lwt kg

OPERATION

$0.00 COST PER HA

Cultivation

$140.00

Spraying

$25.00

Sowing

$230.00

Spraying

$25.00

Fertiliser Application

$18.00

Grain Harvest

$390.00

TOTAL

$828.00

INPUT

COST PER HA

Herbicide

$120.87

Insecticide

$16.58

Fertiliser

$373.00

Seed

$658.00

Herbicide

$37.92

Fertiliser

$337.50

TOTAL

$1,543.87

MISCELLANEOUS Drying ($40/t)

$500.00

Freight ($20/t)

$250.00 $7,375.00

TOTAL INCOME COST OF PRODUCTION GROSS MARGIN

$3,121.87 $4,253.13

393

GROSS MARGIN ANALYSIS FOR OIL-SEED RAPE Crop Vistive Oil Seed rape Sowing Area INCOME Grain Harvest Forage Harvest Grazing

1.00 ha YIELD 4.00 t/Ha 0.00 t/Ha 0.00 lwt kg/ha

Start Date

13/03/2022

End Date

20/02/2023

PRICE $/T

PER HA

$700.00

$2,800.00

$0.00

$0.00 /lwt kg

$0.00 COST PER HA

OPERATION Spraying

$225.00

Cultivation

$100.00

Sowing Fertiliser Application

$130.00 Six Applications

$90.00

Grain Harvest

$390.00

TOTAL

$935.00

INPUT

COST PER HA

Herbicide

$398.54

Seed

$72.00

Seed Treatment

$0.00

Molluscicide

$45.08

Fertiliser

$323.00

Fertiliser

$329.12

Fertiliser

$154.12

Fungicide

$112.67

Insecticide

$26.04

Adjuvant

$17.80

TOTAL

$1,478.37 $2,800.00

TOTAL INCOME COST OF PRODUCTION GROSS MARGIN

$2,413.37 $386.63

394

GROSS MARGIN ANALYSIS FOR PERENNIAL RYEGRASS SEED Crop Grasslands Nui perennial Sowing Area INCOME

1.00 ha YIELD

Start Date

8/03/2022

End Date

4/02/2023

PRICE

PER HA

Grain Harvest

2.00 t/Ha

$1,900 /t

Forage Harvest

3.60 t/Ha

$67 /t

$241.20

2,400.00DM kg/ha

$0.25 /kg

$600.00

Grazing OPERATION

$3,800.00

COST PER HA

Cultivation

$80.00

Sowing

$125.00

Spraying

$150.00

Fertiliser Application

$140.00

Cutting

$38.00

Grain Harvest

$390.00

Forage Harvest

$160.00

TOTAL

$1,083.00

INPUT

COST PER HA

Seed

$96.00

Adjuvant

$4.51

Herbicide

$226.69

Fertiliser

$743.69

Irrigation

$528.00

Fungicide

$168.86

Growth Regulator

$161.96

TOTAL

$1,929.71

MISCELLANEOUS

COST PER HA

Seed Processing ($0.30/kg)

$660.00

Freight ($64/t)

$141.00 $4,641.20

TOTAL INCOME COST OF PRODUCTION GROSS MARGIN

$3,813.71 $827.49

395

GROSS MARGIN ANALYSIS FOR VINING PEAS Crop

Sherwood Pea

Start Date

14/07/2022

Sowing Area

1.00 ha

End Date

30/11/2023

INCOME

YIELD

PRICE

PER HA

Grain Harvest

1.0 t/ha

$2,100 /t

$2,100.00

Forage Harvest

3.0 t/ha

$125 /t

$375.00

0.00 lwt kg/ha

$0.00 /lwt kg

$0.00

Grazing OPERATION

COST PER HA

Cultivation

$140.00

Sowing

$130.00

Spraying

$50.00

Grain Harvest (Included in Contract Price)

$0.00

Raking

$35.00

Forage Harvest (Large Square )

$160.00

TOTAL

$515.00

INPUT

COST PER HA

Seed

$640.00

Fertiliser

$9.50

Herbicide

$62.00

Irrigation

$344.00

TOTAL

$1,055.50

TOTAL INCOME COST OF PRODUCTION GROSS MARGIN

$2,475.00 $1,570.50 $904.50

396

GROSS MARGIN ANALYSIS FOR WHEAT Crop Sowing Area

Starfire (KWW46) Start Date 1.00 ha

1/03/2022

End Date

INCOME

10/02/2023

YIELD

PER HA

PRICE

Grain Harvest

11.5 t/ha

$565 /t

$6,497.50

Forage Harvest

0.0 t/ha

$0 /t

$0.00

0.00 lwt kg/ha

$0.00 /lwt kg

$0.00

Grazing

COST PER HA

OPERATION Cultivation

Cultivations

$200.00

Spraying

Several Sprayings

$175.00

Sowing

$95.00

Fertiliser

$54.00

Three Applications

Grain Harvest

$390.00

TOTAL

$914.00

INPUT

COST PER HA

Adjuvant

$4.51

Herbicide

$221.11

Seed

$178.00

Insecticide

$41.65

Fertiliser

$744.00

Growth Regulator

$28.59

Fungicide

$281.90

Irrigation

$451.00

TOTAL

$1,950.76

MISCELLANEOUS Storage ( $18/T)

$207.00

Freight ( $25/T)

$287.50 $6,497.50

TOTAL INCOME COST OF PRODUCTION GROSS MARGIN

$2,864.76 $3,632.74

SUMMARY OF KEY OPERATIONAL PARAMETS Operational

$79.48

14.07%

Inputs

$212.63

37.63%

Model

$249.11

44.09%

YIELD VERSUS PRICE SENSITIVITY Price / T 8.00 Yield /Ha

$350

$450

$565

$650

$750

-$65

$735

$1,655

$2,335

$3,135

10.00

$635

$1,635

$2,785

$3,635

$4,635

11.50

$1,160

$2,310

$3,633

$4,610

$5,760

12.00

$1,335

$2,535

$3,915

$4,935

$6,135

12.50

$1,510

$2,760

$4,198

$5,260

$6,510

397

GROSS MARGIN ANALYSIS FOR WHITE CLOVER SEED Crop Grasslands Bounty White Clover Sowing Area 1.00 ha

INCOME Grain Harvest Forage Harvest Grazing

YIELD

Start Date End Date

20/02/2022 10/02/2023

$5,400 /t $0 /t $0.00 /lwt kg

PER HA $3,780.00 $0.00 $0.00

PRICE $/T 0.70t/ha 0.00 0.00 lwt kg/ha

OPERATION Cultivation Sowing Spraying Grain Harvest TOTAL

COST PER HA $80.00 $125.00 $200.00 $390.00 $795.00

INPUT Seed Adjuvant Herbicides Adjuvant Irrigation Insecticide TOTAL

COST PER HA $45.00 $4.51 $561.01 $15.77 $330.00 $14.64 $970.93

MISCELLANEOUS Beehives Seed Processing ($0.38/kg) Freight ($60/t)

COST PER HA $200.00 $266.00 $42.00 $3,780.00 $2,273.93 $1,506.07

TOTAL INCOME COST OF PRODUCTION GROSS MARGIN

The gross margin below assumes, one-year white clover crop with no grazing as the ground is sprayed and cultivated for an Autumn sown cereal. White clover is often grown as a one-off crop. Autumn sowing in wide rows to allow inter row spaces to flower into is normal.

398

GROSS MARGIN ANALYSIS FOR FODDER BEET Crop : SF Brigadier Sowing Area INCOME Grain Harvest Forage Harvest Grazing

Start Date End Date

1.00 ha YIELD 0.00 t/Ha 19.00t/ha 0 lwt kg/ha

PRICE $260.00t/ha $/lwt kg

11/10/2022 1/06/2023 PER HA $0.00 $4,940.00 $0.00

OPERATIONS Spraying Cultivation-Plough Cultivation-Heavy Roll Fertiliser Application Cultivation-Disc Chain Harrows Cultivation-Grubber Sowing-Precision Seeder Cultivation-Heavy Roll Spraying Forage Harvester TOTAL

COST PER HA $25.00 $120.00 $50.00 $54.00 $120.00 $75.00 $230.00 $50.00 $50.00 $120.00 $894.00

INPUTS Adjuvant Herbicide Fertiliser Seed Herbicide Irrigation TOTAL

COST PER HA $4.51 $48.80 $1,659.00 $334.00 $313.00 $66.00 $2,425.31

TOTAL INCOME COST OF PRODUCTION GROSS MARGIN

$4,940.00 $3,319.31 $1,620.69

Transitional feeding Livestock Management onto Fodder beet & Brassica’s Refer to : https://aginfo.lincoln.ac.nz/manual/livestockmanagement-when-transitional-feeding-onto-fodder-beetbrassicas/

399

GROSS MARGIN ANALYSIS FOR KALE Crop: Sovereign Kale Sowing Area

1.00 ha

INCOME

YIELD

Start Date

2/12/2022

End Date

26/06/2023

PRICE

PER HA

Grain Harvest

0.00 t/Ha

$0 /ha

$0.00

Forage Harvest

12.00 t/Ha

$0.25 /DMkg

$3,000.00

0.00 lwt kg/ha

$0.00/lwt kg

$0.00

Grazing OPERATIONS

COST PER HA

Cultivation - Disc Chain Harrows

$120.00

Sowing - Conventional Seeder

$95.00

Cultivation - Disc Chain Harrows

$120.00

Fertiliser Application

$18.00

Spraying

$30.00

Fertiliser Application

$18.00

Forage Harvest - Forage Harvester

$120.00

TOTAL

$521.00

INPUTS

COST PER HA

Seed

$99.00

Fertiliser

$913.00

Herbicide

$38.00

Insecticide

$25.00

TOTAL

$1,075.00

TOTAL INCOME COST OF PRODUCTION GROSS MARGIN

$3,000.00 $1,596.00 $1,404.00

400

GROSS MARGIN ANALYSIS FOR AVOCADO ORCHARD NZAGA MODEL - All production and income are on a weighted Average basis - 2023 Area

1 Canopy Ha Model 1,818 Trays per Ha

1 Ha

YIELD Production per Ha Tray Equivalent

VOLUME 10000 kg 5.50 kg

1000 636 91 91 1818

Trays per Ha Income per Tray INCOME FOB NZD

TOTAL

FOB PER TRAY $23.00 Export $18.00 NZ Market $3.00 Processing 0 Reject

$23,000.23 $11,454.66 $272.73 $34,727.62

$19.10 $34,728

ADMINSITRATION

TOTAL LEVIES

2300 500 250 1718 350 352 100 5470

PER CANOPY 2300 500 250 1718 350 352 100 5570

OPERATING EXPENSES Weed Control Pest Montoring & Disease Spraying Fertiliser incl Application Soil & Leaf Testing Tree & Shelter Maintenance Mowing Mulching Packing & Packaging General Expenses Freight - Logistics Bee Hives Wages of Management TOTAL OPERATIONAL EXPENSES TOTAL DIRECT EXPENSES

600 3600 4200 50 2600 600 830 8182 300 364 600 1000 22926 28396

600 3600 4200 50 2600 600 830 8182 300 364 600 1000 22926 28496

3,636 6,364

3636 6364

10% Exporter Commission $0.50 Marketing Costs $0.25 Export Pool 15% NZ Market Commission $0.55 NZA Export Levies 3% NZA NZ Market Levies Compliance Costs

$4.50 /TE $0.20 /TE

HARVESTING Owner Picking Contract Picking

$2.00 /TE $3.50 /TE

GROSS MARGIN NZD CANOPY HA GROSS MARGIN NZD CANOPY HA

OWNER PICKING CONTRACT PICKING

AVOCADO ORCHARD SUMMARY Orchard Gate Return ( OGR) Gross Profits

$2,595.63 -$132

$29,158 $16.04 17355 $9.55 5570 $3.06

OGR per Tray Orchard Operating Costs OGR per Tray Orchard Marketing Costs OGR per Tray SENSITIVITY GROSS MARGINS PER CANOPY HA (SELF HARVEST)

Trays per Canopy Ha

1,200 1,600 1,818 2,000 2,500

$8.00 -9744 -8160 -7297 -6576 -4596

Orchard Gate Return per Tray $10.00 $19 -8560 -3232 530 -6580 -5501 -4600 -2125

402

2580 4292 8995

$20 -2640 1320 3478 5280 10230

$24 -272 4480 7070 9232 15172

55% 35% 5% 5%

CHERRIES ORCHARD GROSS MARGIN MODEL 2022 All production and income are on a weighted Average basis Area YIELD Kgs Produced

1 Ha CANOPY HA

INCOME TOTAL

PER HA

135 average Canopy Ha's model 1 7,300

$16.83 NZD/kg

$122,859 $122,859

LABOUR Management Pruning Thinning Harvesting & Labour TOTAL

PER CANOPY 9607.00 2339.00 365.00 20384.00 32695.00

ADMINISTRATION Legal/H&S/Accounting Rates & Insc Other, IT Levies & Compliance TOTAL

1378.00 1486.00 1854.00 1706.00 $6,424.00

OPERATING EXPENSES Weed & Pest Control Fertiliser incl Application Repairs & Maintenance Electricity Vehicle & Fuel Pollination Sundry Expenses TOTAL OPERATIONAL EXPENSES

3545.00 2268.00 1500.00 1039.00 2277.00 1029.00 756.00 $12,414.00

POST-HARVEST COSTS Packing Packaging Coolsrore Freight TOTAL

$22,752.00 $11,856.00 $0.00 $13,030.00 $47,638.00

TOTAL DIRECT EXPENSES GROSS MARGIN

$99,171.00 $23,688.00

SENSITIVITY ANALYSIS GROSS MARGINS PER CANOPY HA Yield vs $ / Canopy Ha $ / Canopy Ha $10.00 /kg $12.00 /kg $16.83 /kg $18.00 /kg 2,700 ($72,171) ($66,771) ($53,730) ($50,571) Yield 5,000 ($49,171) ($39,171) ($15,021) ($9,171) Kg per Canopy H 7,300 ($26,171) ($11,571) $23,688 $32,229 9,500 ($4,171) $14,829 $60,714 $71,829 15,100 $51,829 $82,029 $154,962 $172,629

$20.00 /kg ($45,171) $829 $46,829 $90,829 $202,829

403

GROSS MARGIN ANALYSIS FOR HOPS ORCHARD 2023- All production and income are on a weighted Average basis Area

1 Ha

100 Canopy Ha model

YIELD CANOPY HA Average Yield Total Production Model Percentage of Crop Sold

1 1,591

$26.80 NZD/kg 159,100

80%

Balance of aged stock unsold , pelletised and usually sold as a down stream product of little value. INCOME TOTAL

PER HA

$34,111 $34,111

LABOUR Management Incl Staff Expenses Additional Seasonal Harvesting & Kiln TOTAL

147,000 87,800 404,000

ADMINISTRATION Legal/H&S/Accounting Rates & Insc IT Services Levies incl PVR Consultancy TOTAL

91,004 97,000 10,000 150,000 6,500

OPERATING EXPENSES Weed & Pest Control Fertiliser incl Application Pest Montoring Repairs & Maintenance Mowing Training, Stringing, Pegging Electricity Fuel & Vehicles Freight Supplies, Incl Plant Replacement TOTAL

24,000 250,000 49,800 55,000 79,968 246,141 52,479 94,962 9,996 129,988

PER CANOPY 1470 878 4040 $6,388

19%

910 970 100 1500 65 $3,545

10%

240 2500 498 550 800 2461 525 950 100 1300 $9,923

29%

TOTAL DIRECT EXPENSES GROSS MARGIN NZD CANOPY HA

$19,856 $14,255

SENSITIVITY ANALYSIS GROSS MARGINS PER CANOPY HA Yield vs $ / Canopy Ha

Yield Kg per Canopy Ha

800 1,250 1,591 2,250 2,450

$18.35 /kg ($8,112) ($1,506) $3,500 $13,174 $16,110

$22.50 /kg ($5,456) $2,644 $8,782 $20,644 $24,244

404

$ / Canopy Ha $26.80 /kg ($2,704) $6,944 $14,255 $28,384 $32,672

$38.70 /kg $4,912 $18,844 $29,401 $49,804 $55,996

$45.00 /kg $8,944 $25,144 $37,420 $61,144 $68,344

GROSS MARGIN ANALYSIS FOR ONIONS Season: 2023 INCOME Onions Export Local

TONNES/HA % GRADE 40.0 37.6 94% 2.4 6% Weighted Average 1.00

TOTAL INCOME

VARIABLE COSTS Field Operations Seed Cultivation Planting Spraying Sprayer Tractor Size Fertiliser Pre Plant (Base) Planting Post Emergence (Side) Post Emergence (Side) Lime Fertiliser Transportation Fertiliser Application TOTAL Agri-chemical 1 Fungicide Insecticide Herbicide Irrigation Harvesting Harvester + Tractor Tractor Size Bin Pick Up (Forklift/Tractor) Labour Transporting Bins to the Packing Shed

POST HARVEST OPERATIONS Grading Packaging - Export Packaging - Local Freight Market (FOB) Market (local) Commission Levy

NO. DESCRIPTION

275 HP (Tractor Size) 225 HP (Tractor Size) 24 Passes 160 HP

$/TONNE

$/HA

$560 $450 $553

$21,056 $1,080 $22,136 /HA $11.07 /bag

RATE UNITS

$/UNIT UNITS

$/HA

2.50 t/ha 5.00 hr/ha 2.50 hr/ha 0.30 hr/ha

$180.00 /t $123 /hr $101 /hr $76 /hr

$450 $615 $253 $547

1,750 kg/ha kg/ha 990 kg/ha kg/ha 3,000 kg/ha 5.74 tonne 2.00 hr/ha

2 Passes

$660 /tonne /tonne $713 /tonne /tonne $45 /tonne $12 /tonne $58 /hr

$1,155 $0 $706 $0 $135 $69 $232 $2,297

$87 /pass

$857 $165 $804 $261

2.00 hr/ha

$120 /hr

$240

2.00 hr/ha 2.00 hr/ha

$35.00 /hr $25.00 /hr

$70 $300

$19.80 /bin

$968

$75.00 /tonne $92.00 /tonne $1.00 / bag $10.00 $32.40 /tonne $1.23 /bag

$3,000 $3,459 $240

3 Passes 1 Tractor 160 HP (Tractor size) 6 staff 10% Loss Harvested to Market

49 900 kg bins

10.00 kg bags 37.6 tonnes 120 bags/ha

20 kg bags 10.0% on Local Product Sales 0.45% Local

0.35% Export

$1,826

$1,218 $148 $108 $79

TOTAL VARIABLE COSTS TOTAL VARIABLE COSTS

$16,078 /ha $402 /t

GROSS MARGIN SENSITIVITY ANALYSIS Effect of Yield and Price on Gross Margin / ha Yield (t) $460 30.0 -$142 35.0 $977 40.0 $2,096 45.0 $3,216 50.0 $4,335 local price $350

$6,058 /ha $151 /t

$510 $1,343 $2,710 $4,077 $5,444 $6,811 $400

Percentage changes in operational costs on the Gross Margin -10% $7,666 1

$560 $2,829 $4,443 $6,058 $7,673 $9,287 $450

-5% $6,862

GM $6,058

$610 $4,315 $6,177 $8,039 $9,901 $11,763 $500

5% $5,254

$660 $5,800 $7,910 $10,020 $12,129 $14,239 $550

Sensitivity Analysis Change in Price ($) $50 Change in Yield (t) 5.0

10% $4,450

The detail is not shown here, however the cost is based on a user defined spray programme and current chemical prices.

405

GROSS MARGIN ANALAYSIS FOR POATOES Weighted Average 202-23

Table

INCOME Gross Yield Paid Yield

$/HA 70% Premium Unwashed 18% 2nd Grade 12% Damaged

TOTAL INCOME Seed

60.0 t/ha 42.0 t/ha 10.8 t/ha 7.2 t/ha

$625 /t $285 /t $0 /t $489 /t

4.00 t/ha

$1,100 /t

$26,250 $3,078

$29,328 $4,400

FERTILISER $1,971 SPRAYS Weeds Pests Diseases

$430 $994 $1,324

OPERATIONAL Irrigation Loader Seed Storage, Seed Cutting & Treatment Seed Cartage Fertiliser Cartage Spreading Planting Spraying

$550 $89 $459 $560 $160 $31 $13 $313 $576

CONTRACT HARVEST / CARTAGE Harvesting Cartage

$2,580 $1,500

CONTRACT Subsoil Light Cultivation De-Stoning Fert Spreading Planting Spraying

$438 $262 $514 $198 $287 $576

OTHER COSTS Levies, Certification

Compliance

$271

TOTAL VARIABLE COSTS GROSS MARGIN

$18,500 $10,828

Fixed overheads could be up to $2,000 per ha, but this analysis references the variable costs 60% of potato crops are grown on leased land, due to crop rotation requirements. EFFECT OF YIELD & PRICE -10% $440 /t $/ha 5,256 7,895 10,535

Yield -10% Base 10%

54.0 t/ha 60.0 t/ha 66.0 t/ha

406

Price Base $489 /t $/ha 7,895 10,828 13,761

10% $538 /t $/ha 10,535 13,761 16,987

GROSS MARGIN ANALAYSIS FOR POATOES Weighted Average 2022-23

Processing

INCOME Gross Yield Paid Yield

$/ha 70.0 t/ha 66.5 t/ha 0.0 t/ha 3.5 t/ha

95% Premium 0% 2nd Grade 5% Damaged

TOTAL INCOME Seed

$495 /t $0 /t $0 /t $470 /t

4.50 t/ha

$900 /t

$32,918 $0

$32,918 4,050

FERTILISER $2,965 /ha SPRAYS Weeds Pests Diseases

$430 $967 $330

OPERATIONS Irrigation Seed Cool Storage Seed Cutting & Treatment Seed Cartage Fertiliser Cartage Spreading Planting Spraying

$880 $579 $560 $180 $31 $198 $313 $576

CONTRACT HARVEST / CARTAGE Harvesting incl. Cartage CONTRACT Subsoil Light Cultivation Fertiliser Spreading De-stoning Fert Spreading Planting Spraying OTHER COSTS Levies, Certification

Contract Wages

$3,010 $1,750

$438 $262 $31 $514 $198 $287 $576 Compliance

$405

TOTAL VARIABLE COSTS GROSS MARGIN

$19,530 $13,388

Yield -10% Base 10%

63.0 t/ha 70.0 t/ha 77.0 t/ha

407

Base $470 /t $/ha 10,096 13,388 16,679

10% $517 /t $/ha 13,058 16,679 20,300

GROSS MARGIN ANALAYSIS FOR POATOES Weighted Average 2022-23

Seed

INCOME Gross Yield Paid Yield

$/HA 32.0 t/ha 31.4 t/ha 0.0 t/ha 0.6 t/ha

98% Ungraded 0% 2nd Grade 2% Damaged

TOTAL INCOME Seed

$900 /t $0 /t $0 /t $882 /t

6.00 t/ha

Annualised Cost of Seed

$1,200 /t

$28,224

$28,224 $7,200

FERTILISER $1,681 SPRAYS Weeds

$293

Pests

$898

Diseases

$149

Operations Irrigation Grading Seed Cartage Fertiliser Cartage Planting Spraying

$440 $1,882 $240 $30 $313 $384

CONTRACT HARVEST / CARTAGE Harvesting Cartage Contract Roguing Light Cultivation Fertiliser Spreading Spraying OTHER COSTS Levies, Certification

incl.

Contract Wages

$1,376 $800

$104 $935 $198 $576 Compliance

$510

TOTAL VARIABLE COSTS GROSS MARGIN

$18,010 $10,214

Fixed overheads could be up to $2,000 per ha, but this analysis references the variable costs 70% of potato crops are grown on leased land, due to crop rotation requirements. EFFECT OF YIELD & PRICE -10% $794 /t $/ha 4,851 7,392 9,932

Yield -10% Base 10%

28.8 t/ha 32.0 t/ha 35.2 t/ha

408

Price Base $882 /t $/ha 7,392 10,214 13,036

10% $970 /t $/ha 9,932 13,036 16,141

GROSS MARGIN ANALYSIS FOR KIWIFRUIT ORCHARD 2022 Kiwi BOP

Variety: Hayward convential

Area: 1 Ha

YIELD Canopy per Ha

Trays

11,921

INCOME

$8.10 per Tray PER CAN HA

$96,560

TOTAL

$96,560

LABOUR

PER HA

Unpaid FTE

PER CANOPY

WOM

Pruning Winter

9300

$9,300

Canopy & Crop Management Male Pruning

3000

$3,000

Summer & Thinning

10700

$10,700

$23,000

Weed & Pest Control

6148

$5,800

Fertiliser incl Application

2120

$2,120

Pest Montoring

265

$265

Repairs & Maintenance

371

$371

Soil/Leaf Sampling

1325

$1,325

Pollination

3710

$3,710

Mowing / Mulching/Trimming

1166

$1,166

Harvesting

8214

$8,214

Management

3000

$3,000

TOTAL LABOUR EXPENSES

TOTAL OPERATIONAL EXPENSES TOTAL DIRECT EXPENSES GROSS MARGIN GROSS MARGIN

$/ha $/ Tray

$26,319

$49,319

$47,241

$3.96

SENSITIVITY ANALYSIS GROSS MARGINS PER CANOPY HA Yield vs $ / Tray $ / Canopy Ha

Yield Trays per Canopy Ha

$4.00

$6.76

$8.00

$10.00

8,000

($17,319)

$4,761

$14,681

$30,681 $69,891

11,921

($1,635)

$31,267

$46,049

12,000

($1,319)

$31,801

$46,681

$70,681

14,000

$6,681

$45,321

$62,681

$90,681

409

GROSS MARGIN ANALYSIS FOR KIWIFRUIT ORCHARD Variety: SunGold

2022 Kiwi BOP

Area

CANOPY PER HA

YIELD

Trays

15,309

INCOME

1 Ha

PER CAN HA

$11.50 per Tray

$176,054

TOTAL

$176,054

LABOUR

PER HA

PER CANOPY

Unpaid FTE

Pruning Winter

10000

$10,000

Canopy & Crop Management Male Pruning

3000

$3,000

Summer & Thinning

25250

$25,250

$38,250

Weed & Pest Control

7208

$7,208

Fertiliser incl Application

3816

$3,816

Pest Montoring

265

$265

Repairs & Maintenance

371

$371

Soil/Leaf Sampling

1325

$1,325

Pollination

3710

$3,710

Mowing / Mulching/Trimming

1166

$1,166

10548

$10,548

TOTAL LABOUR EXPENSES

Harvesting Management

3000

$3,000

TOTAL OPERATIONAL EXPENSES

$31,409

TOTAL DIRECT EXPENSES GROSS MARGIN $/ha GROSS MARGIN $/ Tray

$69,659

$106,395

$6.95

SENSITIVITY ANALYSIS GROSS MARGINS PER CANOPY HA Yield vs $ / Canopy Ha $ / Canopy Ha 12,000

$4.50

$6.31

$8.31

$10.50

($15,659)

$6,061

$30,061

$56,341 $91,086

Yield Trays per

15,309

($769)

$26,941

$57,559

Canopy Ha

16,000

$2,341

$31,301

$63,301

$98,341

17,000

$6,841

$37,611

$71,611

$108,841

410

GROSS MARGIN ANALYSIS FOR VINE YARD MODEL Marlborough Sauvignon Blanc

Area:

1 Ha

YIELD Vines per Ha

2126

Row Metres per Ha

3846

Tonnes

Yield

6.6 per vine

87.70%

Brix level

INCOME

PER TONNE

TOTAL

$2,350 $39,950

LABOUR

12.1 PER VINE PER HA

PER VINE

Vine Yard Management

912

0.43

Hand Harvesting

140

0.07

Pruning & Tying

3160

1.49

Canopy & Crop Management

1820

0.86

Other incl ACC, Shareholders Employees TOTAL

1325

0.62

$7,357

$3.46

VINEYARD EXPENSES Weed & Pest Control

1320

0.62

Fertiliser incl Lime

495

0.23

Electricity + Irrigation

250

0.12

Repairs & Maintenance

1150

0.54

General

167

0.08

Vehicle

110

0.05

Fuel

320

0.15

0.04

Frost Protection Machine Harvesting TOTAL

850

0.40

$4,757

$2.24

ADMINISTRATION OVERHEADS Compliance & Levies

$340

$0.16

Rates & Insurance

$582

$0.27

$285

$0.13

TOTAL

Acountancy,Legal & General

$1,207

$0.57

TOTAL DIRECT EXPENSES

$12,114

$5.70

GROSS MARGIN $/ha GROSS MARGIN $/ T

$27,836

$13.09

$1,637

SENSITIVITY ANALYSIS YIELD VERSUS $/TONNE

$ / Tonne

Yield

$1,900 /t

$2,350 /t

$2,500 /t

5.0 t/ha

($2,614)

($364)

$386

$10,386

10.0 t/ha

$6,886

$11,386

$12,886

$32,886

17.0 t/ha

$20,186

$27,836

$30,386

$64,386

20.0 t/ha

$25,886

$34,886

$37,886

$77,886

411

$4,500 /t

MARLBOROUGH VINEYARD MODEL Data tables from the New Zealand Winegrowers Inc. and the Ministry for Primary Industries Marlborough Vineyard Monitoring Report . EFFECTIVE

YIELD

TOTAL

AREA

PER HA

PRODUCTION

GROSS YIELD

(HA)

(TONNES)

(%)

1 6.6

GRAPE PRICE O

BRIX ( ) 20.4

($/TONNE) $2,300

REVENUE REVENUE ($)

$/ha

Sauvignon Blanc

24.0

Pinot Noir - Table

3.0

7.4

22.2

$3,430

$76,1 50

$25,383

Pinot Gris

1 .5

1 3.2

21 .5

$2,265

$44,850

$29,900

21 .9

398

Chardonnay - Table

1 .5

8.8

Total/Average

30.0

15.1

454

88%

$91 6,320

$2,760

$36,430

$24,287

$2,365

$1,073,750

$35,792

'Pinot Noir - Table' excludes Pinot Noir grapes used to produce sparkling and rosé wines. 'Chardonnay - Table' excludes Chardonnay used to produce sparkling wines. Grapes are harvested in the autumn, so the 2022 year refers to fruit harvested in autumn 2022. MARLBOROUGH VINEYARD MODEL PROFITABILITY REVENUE

VINEYARD

CANOPY HA

TONNE

VINE

Revenue from grapes

$1 ,073,750

$35,790

2,367

$1 6.73

Vineyard working expenses.

RATIOS

$439,950

$1 4,665

970

$6.85

40.97%

CASH OPERATING SURPLUS (EBIT**)

$633,800

$21,125

1,397

$9.87

59.03%

EXPENSES

**E arnings before interest, depreciation & Taxation and land ownership

412

$38,1 80

GROSS MARGIN ANALYSIS FOR PIPFRUIT MODEL Hawkes Bay

Orchard

70 Ha

MARKETABLE INCOME Orchard Production Export Local Processing

AREA

Braeburn Cripps Pink/Pink LadyTM EnvyTM Fuji Granny Smith JazzTM Pacific QueenTM Pacific RoseTM Royal Gala Other Apples Other Income

4.20 4.90 5.60 7.00 2.10 3.50 7.70 1.40 21.70 11.90

TOTALS

70.00

YIELD (TCE) % GRADE 3,389 2,609 77.00% 169 5.00% 610 18.00% Weighted Average TCE 73.00 71.00 61.00 57.00 74.00 52.00 52.00 62.00 58.00 50.00

3389

Average TCE $6,660,548

$/Kg

$/ha

$35.00 $6.02 $1.38 $28.1 $302,153 $446,649 $650,658 $744,318 $201,625 $340,685 $759,393 $99,083 $2,353,566 $723,017 $39,401

$95,151 per Ha

3389 ORCHARD WORKING EXPENSES Wed & Pest control Pollination Fertiliser & Lime Electricity Vehicles Fuel Repairs & Maintenance General

$372,277 $8,968 $21,214 $26,388 $65,280 $57,432 $152,636 $67,349

$5,318 $128 $303 $377 $933 $820 $2,181 $962

HARVESTING Hand Harvesting Prunning Thinning Wages Permanent

$752,222 $240,544 $409,165 $413,036

Employment Levies

$19,200

$10,746 $3,436 $5,845 $5,901 $274

$1,128,217 $1,022,107 $11,054 $72,958 $23,456

$16,117 $14,602 $158 $1,042 $335

$268,957 $44,981 $26,787 $21,368 $25,858 $34,219 $42,349 $61,979

$3,842 $643 $383 $305 $369 $489 $605 $885 $77,000 /ha

POSTHARVEST OPERATIONS Packing Packaging Coolstore & Freight Freight Contract Machines ADMINISTRATION WOM Crop Insurance Insurance Legal & Consulting Accountancy Communication & Other Compliance Costs Levy TOTAL OPERATIONAL COSTS

$11,022

$26,202

$32,254

Coolstore to Port Orchard to Packing House

$7,521

Levies & Commissions $5,390,001

413

GROSS MARGIN Earnings before Interest, Tax and Land Ownership & Orchard Leases GROSS MARGIN

Including Orchard Lease Costs

Effect of Changes in Variable Costs on the Gross Margin 10% less $25,851

5% less $22,001

$1,270,547

$18,151 /ha

$280,000

$990,547

$14,151 /ha

budget $18,151

5% more $14,301

10% more $10,451

Data provided by: Consultants and Growers Agribusiness Group and Land Water People,refer to data sets at landuse opportunities.nz, For further information. http://landwaterpeople.co.nz.

414

GROSS MARGIN ANALYSIS FOR PIPFRUIT MODEL Tasman Model

Season: 2023

INCOME Orchard Production Export Local Processing

AREA

Orchard

55.2 Ha

MARKETABLE

Braeburn Cripps Pink/Pink LadyTM EnvyTM Fuji Cox Orange JazzTM Royal Gala Other Apples Pears Other Orchard Income TOTAL

7.20 5.50 5.50 1.70 1.10 7.20 12.10 11.60 3.30

YIELD ( TCE) % GRADE 3572.8 2822.5 79.00% 0.0 0.00% 750.3 21.00% weighted average TCE 94.40 67.00 66.50 64.50 61.20 66.40 54.80 37.60 66.40

55.20

64.31

Av TCE $5,090,185

$/Kg $33.50 $0.00 $0.00 $26

$721,825 $89,880 $626,440 $658,360 $152,705 $648,840 $1,252,480 $616,420 $298,235 $25,000 3573 $92,213 per Ha

ORCHARD WORKING EXPENSES Wed & Pest Control Pollination Fertiliser & Lime Electricity Vehicles Fuel Repairs & Maintenance General

$280,213 $15,800 $46,927 $39,095 $50,438 $56,988 $106,414 $77,717

$5,076 $286 $850 $708 $914 $1,032 $1,928 $1,408

HARVESTING Hand Harvesting Prunning Thinning Wages Permanent

$522,460 $265,888 $268,747 $290,707

Employment Levies

$18,249

$9,465 $4,817 $4,869 $5,266 $331

$819,246 $834,801 $380,241 $76,917 $29,372

$14,841 $15,123 $6,888 $1,393 $532

$164,910 $56,633 $39,053 $19,831 $8,942 $40,634 $9,611 $43,359

$2,988 $1,026 $707 $359 $162 $736 $174 $785

POSTHARVEST OPERATIONS Packing Packaging Coolstore & Freight Freight Contract Machines ADMINISTRATION Management Crop Insurance Insurance Legal & Consulting Accountancy Communication & Other Compliance Costs Levy

$/ha

$12,203

$24,747

$38,779

Coolstore to Port Orchard to Packing House

$6,938

Levies & Commissions

415

TOTAL OPERATIONAL COSTS GROSS MARGIN Effect of changes in variable costs on the Gross Margin 10% less $17,814

5% less $13,680

$4,563,193

$82,667 /ha

$526,992

$9,547 /ha

budget $9,547

Data provided by: Consultants and Growers Agribusiness Group and Land Water People,refer to data sets at landuse opportunities.nz, For further information. http://landwaterpeople.co.nz.

416

5% more $5,414

10% more $1,280

TAXATION Contributed by: Lay Associates Ltd Chartered Accountants Leeston, Rolleston, Ashburton, Lincoln.

With information from the following websites: http://www.ird.govt.nz http://www.acc.co.nz http://www.workingforfamilies.govt.nz http://www.tmnz.co.nz/

NOTE:

This manual details the current (September 2022) legislation and notes proposed changes where applicable.

While every attempt is made to ensure accuracy, we must caution readers not to rely solely on the Financial Budget Manual without further reference, including professional advice where appropriate.

It should be noted that there are ongoing changes to tax legislation which may not be covered in this manual.

Such complexity can never be completely covered by a manual of limited scope, so professional advice should always be sought.

Note: Before reading this section, please refer to the disclaimer in the Preface of this Manual.

418

INTRODUCTION Tax Legislation This section sets out some of the more important requirements for Income Tax, Fringe Benefit Tax and Goods and Services Tax.

The law relating to tax in New Zealand includes the Income Tax Act 2007, the Tax Administration Act 1994 and the Goods and Services Tax Act 1985. The Income Tax Act also sets out the requirements for other taxes, including Fringe Benefit Tax. Only selected aspects of the taxation law have been included in this section, and caution must be exercised when applying those guidelines to a particular circumstance. If in doubt, your accountant, or financial adviser should be consulted.

Creating a progressive tax system that is fair, balanced and promotes long-term sustainability and productivity of the economy are key features of the tax policy. It provided the following objectives for the tax system: • • • • •

A system that is efficient, fair, simple, coherent and collects tax that is due, on time and in full. A progressive tax and transfer system for individuals and families. A system that promotes long-term sustainability and productivity of the economy. A system that supports a sustainable revenue base to fund government operating expenditure around its historical level of 30% of GDP. A system that treats all income and assets in a fair, balanced and efficient manner.

Changes to Tax Law In recent years there have been changes to the tax legislation. The key changes are as follows:

Bright-Line Test The bright-line test for the disposal of residential investment property acquired and disposed of within two years came into force on 1 October 2015. This was later increased to five years for residential investment properties acquired from 27 March 2018. The bright-line test was been extended from 5 years to 10 years and will apply to residential land acquired on or after 27 March 2021

Key features • The gains from the disposal of residential land acquired and disposed of within 10 years will be taxable, subject to some exceptions.

419

• The bright-line period generally starts at the point a person has title for the property transferred to them and ends at the time the person enters into a contract to sell the property. For sales “off the plan” the period runs from the date the person enters into a contract to buy the property to the time when a person enters into a contract to sell the property. • The bright-line test applies only to residential land. Residential land includes land that has a dwelling on it, land where the owner has an arrangement to build a dwelling on it, as well as bare land that can have a dwelling erected on it under the relevant district plan. Residential land does not include business premises or farmland. • The bright-line test does not apply to a person’s main home. A person can only have one main home. Where a person has more than one home, their main home is the one with which the person has the greatest connection. • The main home exception is generally available to properties held in trust. There are additional requirements to ensure that people cannot use the main home exception for multiple properties through the use of trusts. • The bright-line test does not apply to property acquired through an inheritance. There is rollover relief for property transferred as a result of a relationship property agreement. This means that any potential tax liability will be deferred until a subsequent sale. • Taxpayers will be allowed deductions for property subject to the bright-line test according to ordinary tax rules. • Losses arising from the bright-line test will be ring-fenced so that they may only be used to offset taxable gains from other land sales. • There are specific anti-avoidance rules, to counter companies and trusts being used to circumvent the bright-line test.

The bright-line test only applies to a person’s disposal of land if the person acquires their “first interest” in the land on or after 29 October 2015 (or 29 March 2018 for the five year bright-line test and 27 March 2021 for the 10 year bright-line test). The date a person acquires their “first interest” is the same date as when they acquire land. Guidance on section CB 15B of the income Tax Act 2007 can be used to assist in determining when a person’s “first interest” in land was acquired.

Further changes with regard to the deductibility of interest on residential properties came into effect on 1 October 2021. These changes are as follows: •

Deductions for interest expenses on residential properties will be restricted from 1 October 2021. 420

•

Interest deductibility on a mortgage on a residential investment property acquired before 27 March 2021 will be gradually phased out between 1 October 2021 and 31 March 2025. Non-grandparented interest would immediately cease to be deductible from 1 October 2021. Interest deductibility on a residential investment property acquired on or after 27 March would immediately cease to be deductible from 1 October 2021, unless an exemption applies. Property development and new builds would be exempt from the interest limitation rules. In addition, new builds would be subject to a five year brightline test, rather than the ten year test. Non-residential properties (for example commercial or industrial properties) would not be subject to the new rules. Also excluded would be employee accommodation, farmland, care facilities such as hospitals, convalescent homes, nursing homes, and hospices, commercial accommodation such as hotels, motels and boarding houses retirement villages and rest homes. The main home would not be affected by the new rules. Interest related to any income-earning use of an owner-occupier’s main home such as a flatting situation would continue to be deductible. Community housing providers will not be affected by the interest limitation rules if they are charities or otherwise tax exempt. The Government also proposes to exempt Kāinga Ora and its wholly owned subsidiaries from the interest limitation rules.

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Increase in personal tax rate

In December 2020 the Government introduced, under Parliamentary urgency, legislation for the new 39% personal tax rate on income above $180,000. The new rate applies from 1 April next 2021 (the 2021-22 income year).

The Taxation (Income Tax Rate and Other Amendments) Bill also contains a number of consequential amendments: A new Fringe Benefit Tax (FBT) rate of 63.93% for all-inclusive pay above $129,681 and the single rate and pooling of non-attributed fringe benefit calculations. • A 39% Resident Withholding Tax (RWT) rate for individuals on interest income. • An Employer Superannuation Contribution Tax (ESCT) rate of 39% on superannuation contributions for employees whose ESCT rate threshold amount exceeds $216,000. (The ESCT rate for contributions in respect of past employees and contributions to defined benefit schemes will also be 39%.) • A 39% Residential Land Withholding Tax (RLWT) Rate (on residential land sales by offshore persons within the bright-line period), except where the vendor is a company. • A new 39% non-declaration rate for taxable Maori Authority distributions, where a member has not provided an IRD number. All bar the RWT rate change will also apply from 1 April 2021. There is no change to PIE tax rates for individual investors or to RWT on dividends. •

Purchase Price Allocation

On the 1 of July 2021, the government introduced changes to the Income Tax Act to provide more consistency to information applying to agreements for the disposal and acquisition of property. The key purpose is to ensure that vendors and purchasers adopt the same allocation of the total purchase price to the various classes of assets for tax purposes.

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Key features •

Purchase price allocations are to be made at the level of the following classes of ‘purchased property’:

i) trading stock, other than timber or a right to take timber ii) timber or a right to take timber iii) depreciable property, other than buildings iv) buildings that are depreciable property v) financial arrangements, and vi) purchased property for which the disposal does not give rise to assessable income for person A (the vendor) or deductions for person B (the purchaser). • If the parties agree an allocation to the classes of purchased property and record it in a document before the first tax return for the year in which the transaction occurs is filed, they must both follow that allocation in their respective returns. • If the parties do not agree an allocation and record it in a document before the first tax return for the transaction is filed, the allocation will be determined by a notification made by one of the parties, or the Commissioner. However, a unilateral allocation does not need to be notified if the total consideration for the purchased property is less than: a. $1 million, or b. $7.5 million, if the only purchased property is residential land (which includes residential buildings) together with its chattels. • The vendor has three months after the change in ownership of the property to notify an allocation to the purchaser and the Commissioner, which then binds the vendor and the purchaser. • If the vendor does not notify an allocation within three months, the purchaser has three months (that is, until six months after the change in ownership) to notify an allocation to the vendor and Commissioner, which then binds the purchaser and the vendor. It is generally recommended that both the purchaser and vendor agree on “purchased property” price allocations at the time of the agreement and that those values form part of that agreement.

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Mycoplasma Bovis Tax Payments

Due to farmers incurring unexpected taxable income through their herds being culled following a primary sector and government decision to eradicate Mycoplasma Bovis in New Zealand, a legislative change enabled the proceeds from the cull to be transferred from the year of the cull and to be spread evenly over the following six income years. The ability to spread this income is optional.

The income can only be spread if: •

The business has been subject to Biosecurity Security New Zealand requiring a cull of Mycoplasma Bovis affected stock.

•

The business is a dairy or a beef breeding operation, with the breeding stock that is culled being valued under NSC or the cost price method. The expectation is that the breeding stock that is culled comprises mainly mixed-aged cows, in combination with any other class of breeding stock.

•

The stock is substantially replaced through purchasing equivalent breeding stock by the end of the income year following the cull year.

•

The replacement stock continues to be valued using, as relevant, NSC or the cost price method. This is to ensure that farmers cannot enter the herd scheme on more advantageous terms than those not affected by Mycoplasma bovis.

This amendment applied for the 2017-2018 and subsequent income tax years.

Record keeping for GST The Government have introduced new laws that will take effect on 1 April 2023. These rules have focussed on modernising the GST rules for invoicing and record keeping. You'll no longer need to keep a single physical document holding the supply information, such as a tax invoice, credit note, or debit note. Your transaction records, accounting systems and contractual documents may, in combination, contain all the information you need to support the figures in your GST returns. https://ird.govt.nz/gst/tax-invoices-for-gst/rules-for-tax-invoices-are-changing-on-1-april2023

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THE INCOME TAX SYSTEM Overview The New Zealand income tax system is primarily a self-assessment system where the onus or responsibility rests on the taxpayer to correctly calculate taxable income and his or her tax liability on that taxable income and to pay income tax due within set time limits. The role of the Inland Revenue Department (IRD) is mainly regulatory in that the IRD is required to ensure that taxpayers have correctly determined their tax liability within existing tax law and that income tax due has been paid on time. The IRD has the power to administer the penalty regime against taxpayers who do not correctly comply with their obligations. The Income Tax Act introduced the Core Provisions, which state and define the key principles of income tax law and taxpayer obligations. The taxpayer obligations stated in the core provisions are: - correctly determine their amount of tax payable, - deduct or withhold the correct amount of tax from payments or receipts, - pay tax on time, - keep all necessary information and maintain all necessary accounts or balances, - disclose all information that the Commissioner requires in a timely and useful way, - co-operate with the Commissioner, and - to comply with other specific tax obligations. Income tax is collected throughout the year by either the PAYE (Pay As You Earn), RWT (Resident Withholding Tax), withholding tax on scheduler payments, or provisional tax systems. After the income year has concluded, each taxpayer required to file a tax return, should complete the appropriate annual income tax return, which calculates actual tax payable and allows tax already collected to be credited against the calculated tax liability. The taxpayer must file the return with the Inland Revenue, if required to do so. An assessment is then issued to the taxpayer. A taxpayer can dispute his or her income tax assessment. Under the dispute’s procedures, the taxpayer and the IRD must, in writing, state their various positions with respect to the items under dispute. There are several stages in this process which may involve a conference between the parties and adjudication. Recourse to the Taxation Review Authority and/or the Court is available in the final stages of the dispute.

Because of the complexity and rigid time restrictions of the dispute procedures, it is important that disputes are promptly dealt with, and suitable professional advice is obtained by the taxpayer.

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PAYE (Pay As You Earn) Tax on Personal Income Under the PAYE system, source deductions of tax are made by employers, i.e. tax is deducted prior to payment or crediting of salary and wages to employees. Employees are required to complete an employee tax code declaration form IR330 which is used by the employer to help establish how much tax should be deducted. The employee is to complete a declaration form when they start with a new employer or change tax codes. The tax deducted is periodically paid to the Inland Revenue. The PAYE system applies to salaries, wages, and schedular payments (previously called withholding payments). Salary or wages are defined as any salary, wages or allowances received by way of overtime pay, bonus, gratuity, extra salary, commission or remuneration of any kind in respect of or in relation to the employment of the person. The amount of tax deducted depends on the amount of payment and the tax code shown on the employee declaration. Tax tables to calculate the amounts to be deducted are published by the Inland Revenue (IR 340). The obligations of an employer are detailed in the booklet IR335 Employers Guide. ir335-2020.pdf (ird.govt.nz)

The tax codes for salaries, wages and secondary earnings are as follows:

Code

Description

No declaration

For employees who have not given their employer a tax code declaration or their tax code certificate. (Tax rate 45%)

Earnings are the main source of income

M SL

Earnings are the main source of income with a student loan. (Only one job can have this code.)

Earnings are the main source of income between $24,000 and $48,000, and qualify for the independent earner tax credit.

ME SL

Earnings are the main source of income between $24,000 and $48,000, qualify for the independent earner tax credit and have a student loan.

Earnings are secondary sources of income and annual taxable income is $14,000 or less. (Tax rate 10.5%) See Note 1 below.

Earnings are secondary sources of income and annual taxable income is between $14,001 and $48,000. (Tax rate 17.5%). See Note 1 below.

Earnings are secondary sources of income and annual taxable income is between $48,001 and $70,000. (Tax rate 30%).

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Earnings are secondary sources of income and annual taxable income is between $70,000 and $180,000. (Tax rate 33%).

Earnings are secondary sources of income and annual taxable income is above $180,000. (Tax rate 39%).

SB SL

Earnings are secondary sources of income and annual taxable income is $14,000 or less with a student loan.

S SL

Earnings are secondary sources of income and annual taxable income is between $14,001 and $48,000 with a student loan.

SH SL

Earnings are secondary sources of income and annual taxable income is between $48,001 and $70,000 with a student loan.

ST SL

Earnings are secondary sources of income and annual taxable income is between $70,000 and $180,00 with a student loan.

SA SL

Earnings are secondary sources of income and annual taxable income is above $180,00 with a student loan.

CAE

Casual agricultural employee.

NSW

Recognised seasonal workers

EDW

Election day workers.

STC

Tailored tax code

Note 1: If the employee gross income from their main job is less than $367 per week, a 12% standard student loan deduction for their secondary income may be too high. They may qualify for a student loan special deduction rate. Schedular Payments (previously called withholding payments) are payments for personal services which are casual in nature or where there is no employer-employee relationship. Common types of payments and their appropriate tax rates are specified in the IR330C form and include: % Company directors’ fees

Agricultural contracts for maintenance, development, or other work on farming or agricultural land (not to be used where CAE code applies)

Agricultural, horticultural or viticultural contracts by any type of contractor (individual, partnership, trust or company) for work or services rendered under contract or arrangement for the supply of

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labour, or substantially for the supply of labour on land in connection with fruit crops, orchards, vegetables or vineyards Shearing or droving (not to be used where CAE code applies)

Forestry or bush work

A non-employee (independent contractor) performing any of the above services needs to complete an IR330C Tax Code Declaration and give it to the person paying him or her. Failure to provide an employee declaration form increases the rate of withholding tax to a non-notification rate of 45% for the above categories. The amount on which withholding tax is calculated should not include any GST charged by the contractor. This tax mainly applies to payments by businesses to self-employed contractors. Withholding tax does not apply for payments to Companies accept for Agricultural, horticultural or viticultural contracts predominately for the supply of labour. Payment of PAYE and Withholding Tax on Schedular Payments Employers must pay the total PAYE and withholding tax to the Inland Revenue based on information provided through payday filing. Payday filing will contain various information including the employees name, IRD number, tax code, child support, employers superannuation contribution (ESC), employer superannuation contribution tax (ESCT), KiwiSaver contributions on behalf of employees and student loan deductions of each employee. Due dates depend upon the type of employer. ‘Small’ employers are those whose PAYE and ESCT deductions did not exceed $500,000 in the preceding year and they make one payment by the 20th of the month following the month when the deductions were made. ‘Large’ employers are those whose PAYE and ESCT deductions exceed $500,000 in the preceding year and they must make two payments each month. Payments are due on the 20th of the month (for tax deducted from payments made from the 1st to the 15th of the month); or the 5th of the following month (for tax deducted from payments made on or after the 16th of the month). Electronic filing is optional for employers that have gross annual PAYE of less than $50,000.

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Payday Filing It is now mandatory to file employment information form every time you pay your employees. This is based on the date you pay employees (pay day) and may be weekly, fortnightly, monthly or more often if you have multiple paydays. You do not need to file if you do not pay employees during your regular pay cycle. This can be processed either: • directly from payroll software • file upload to myIR • on-screen forms on myIR The due date for payment has not changed but the employee information will be sent to the Inland Revenue every payday. Exemptions are available for employers with annual PAYE of less than $50,000 to file payday employee information on paper forms, if the taxpayer has poor internet access or does not use a computer. Employers must keep proper records for each employee showing gross wages, tax deductions. All records relating to employee wages must be kept for seven years.

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Resident Withholding Tax Resident withholding tax (RWT), is deducted from interest/dividend income earned by taxpayers. RWT is deducted and withheld at source by the institutions or companies that pay interest or dividends to their clients or shareholders. The RWT rate for dividends is 33% and for interest is 10.5%, 17.5%, 28%, 30%, 33% or 39% depending on the income level of the recipient. Where the recipient does not provide their IRD number to the payer of the interest, the rate of deduction is 45%. RWT on dividends is also reduced to the extent that imputation credits are attached.

No tax is required to be deducted from payments to organisations holding a Certificate of Exemption. From 1 April 2020 Inland Revenue no longer issue certificates of exemption for RWT or publish cancelled and reissued exemptions in the New Zealand Gazette. Instead, IRD numbers are added to an online register (https://www.ird.govt.nz/income-tax/withholdingtaxes/resident-withholding-tax-rwt/resident-withholding-tax-exemption-register ). These certificates may be granted by the Inland Revenue to financial institutions, taxpayers with income greater than $2 million p.a., taxpayers with losses to carry forward, and non-profit organisations.

Interest will not attract RWT liability if: •

the interest is not paid wholly or partly in the course of carrying on a taxable activity.

•

the payer’s interest is below the $5,000pa exemption threshold.

RWT does not have to be deducted on private borrowings unless those borrowings are used in a taxable activity e.g. Farming.

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Provisional Tax System Provisional tax is levied on all income which does not have tax deducted at source, such as PAYE or RWT. It is meant to ensure that all income will be taxed in the year in which it is earned. Provisional taxpayers include: •

Individuals who derive business or professional income, e.g. farmers.

•

Companies.

•

Trusts.

Taxpayers who have residual income tax (total tax less source deductions) of more than $5,000 are required to pay provisional tax. Provisional tax is based on either an estimate of the current year's income or a figure calculated from a previous year's tax liability. The rules are intended to ensure that approximately the correct amount of tax is paid in the year in which income is earned. The difference between provisional tax paid and the actual tax on the income earned, is adjusted in the next year. Provisional taxpayers pay provisional tax: •

in three instalments if their residual income tax (RIT) was greater than $5,000 in the previous income year and they are either not GST registered or are GST registered and pay GST every month or two months,

•

in two instalments if they are GST registered and pay every 6 months, or

•

in either one, two or three instalments if they are new provisional taxpayers.

End of year tax to pay, called terminal tax, is calculated in the annual tax return. Terminal tax is due and payable based on the balance date of the taxpayer. Where provisional or terminal tax is not paid by the date it is due, it will be charged with “use-of-money interest”. Use-of-money interest applies to any underpayment or overpayment of provisional tax in addition to any late payment penalty which may apply. Use-of-money applies from the third instalment due date, except in the case of safe harbour taxpayers, who use the standard or “uplift” method of calculating provisional tax. Safe harbour taxpayers are those with an RIT of less than $60,000, who use the standard option for determining their provisional tax for the current year (i.e. to calculate the 2023 provisional tax, taxpayers are to use their RIT from the previous year’s income tax return plus 5%).

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Options for calculating Provisional Tax There are four current options available to provisional taxpayers: •

The standard or ‘uplift’ method - provisional tax instalments are based on 105% of the prior year’s residual income tax (RIT) or 110% of the year before the prior year if the taxpayer has not filed their prior year’s tax return;

•

The estimation method - Based on an estimate of RIT, which may be revised at any time before the final instalment date. Those who estimate may be subject to shortfall penalties if they do not take reasonable care when making their estimates.

•

The GST Ratio method - Based on a percentage of GST taxable supplies

•

The accounting income method (AIM) – Available from 1 April 2018, this method uses accounting software to determine provisional tax instalments, based on a statement of activity filed monthly, or two monthly with a taxpayers GST return.

In certain circumstances, the Commissioner of Inland Revenue may determine the amount of provisional tax to be paid (Section 119 of the Tax Administration Act 1994.)

Residual income tax is based on: •

a notice of assessment if one has been issued

•

a taxpayer’s return of income if one has been filed

•

the Commissioner’s assessment if a return has not been filed or an extension of time has been granted

Taxpayers become provisional taxpayers, when they have a RIT of at least $5,000. However, they are also able to make voluntary tax payments to help reduce the amount of tax left to pay at the end of the tax year. Taxpayers have the right to estimate their liability at any time on or before the third instalment date during an income year. All estimates must be ‘fair and reasonable’. For example, it is not ‘fair and reasonable’ to make ‘nil’ estimates for the first two provisional payments and pay the full amount as the third payment in order to bring the total provisional tax up to the required level for the year. The reasonable care standard for estimations of provisional tax for those taxpayers with RIT under the safe-harbour threshold does not apply. Generally, provisional tax is treated as being due and payable in three equal instalments. Use-of-money interest (UOMI) applies to any underpayment or overpayment of provisional tax in addition to any late payment penalty which may apply. UOMI runs from the third instalment date except in the case of safe harbour taxpayers.

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UOMI may be cancelled where a notice of assessment is issued stipulating a new due date for payment of the unpaid tax. If the assessment is issued before the original due date, a 30 day grace period is allowed which allows a taxpayer to pay the amount stated on the assessment without being charged interest.

Provisional Tax Example Mr J. Smith is a farmer, with a personal income from his farm and from casual work for a local contractor. He uses the standard option of adding 5% to his 2021 RIT and pays 2022 provisional tax of $20,000. His total income from all sources is $93,875. Total tax due in his 31 March 2022 tax return (in whole dollars) is:

Tax on total income

$21,898

Less PAYE deductions

$1,000

RESIDUAL INCOME TAX

$20,898

Less provisional tax already paid

$20,000

TERMINAL TAX

$ 898

His terminal tax payment will be due on 7 February 2023 (7 April 2023 if a tax agents extension of time applies). As he did not estimate his provisional tax, he is not subject to interest on the terminal tax due.

Provisional Tax 2022/23 For the 2023 year, his provisional tax will be +5% of the residual income tax, (i.e. $21,942). The provisional tax payments for 2023 are due as follows:

28 August 2022 (one third)

$7,314

15 January 2023 (one third)

$7,314

7 May 2023 (one third)

$7,314 $21,942

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Key features are of safe harbour taxpayers are summarised as follows:

Classification

Safe harbour

Non-safe harbour

Current rules

Taxpayers

All provisional taxpayers except:

All provisional taxpayers other than those who are safe harbour.

• those who opt out • those with certificates of exemption Interest Starting date:

Terminal tax date for those safe-harboured

The interest applies from third instalment date for standard method or first instalment date if estimated.

Estimation:

Not required. A taxpayer who estimates leaves the safe harbour

Estimates not required

Instalment amount:

Formula

Formula or estimate. A requirement that taxpayers take reasonable care if they estimate.

Late payment penalty:

Yes

Yes, if taxpayer pays less than estimated or required by formula.

Interest on overpayments:

No (but taxpayers may opt out of the safe harbour by estimating, in which case interest starts at the first instalment date)

Yes (if more than $100)

Interest on underpayments:

No, unless taxpayer opts out of safe harbour

Yes (if more than $100)

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Estimation Option In a situation where your income is dropping, it may be beneficial to estimate your provisional tax down. Likewise, if your income is increasing, it may be beneficial to estimate your provisional tax upwards to avoid use of money interest being charged.

Provisional Tax Estimation Example: Using the same example as above, for the 2021/2022 income year based on an income of $93,875, the 2023 provisional tax is calculated at $$21,942. Should Mr J. Smith expect his total income for the 2023 year to reduce to say $60,000 then his actual tax for that year will decrease to $11,020.

Tax on estimated total 2023 income

$11,020

Less PAYE deductions

$1,000

ESTIMATED RESIDUAL INCOME TAX

$10,020

28 August 2022 (one third)

$3,340

15 January 2023 (one third)

$3,340

7 May 2023 (one third)

$3,340 $10,020

Underestimating your provisional tax It pays to keep a close watch on your profits because you could be charged a penalty if your provisional tax estimation is unreasonably low, compared with your actual RIT once you file your return.

GST Ratio Method The GST ratio method allows taxpayers to calculate their provisional tax liability based on a percentage of their GST taxable supplies. This method was introduced to assist taxpayers whose income varies greatly throughout a tax year, by aligning provisional tax payments with a taxpayer’s GST taxable supplies. The provisional tax payments due should be better aligned with the taxpayer’s cash-flow. However, only taxpayers who qualify to use this method are able to do so.

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The qualifying criteria are as follows:•

A taxpayers residual income tax liability for the previous tax year is greater than $5,000 but does not exceed $150,000;

•

The taxpayer was registered for GST for the whole of the previous tax year and the previous year was not a year in which they began their taxable activity;

•

The taxpayer’s GST ratio (residual income tax to total taxable supplies) for the current tax year is between 0-100%,

•

For the current tax year the taxpayer files GST returns on a monthly or 2 monthly basis; and

•

The business you are operating is not a partnership.

If a taxpayer meets the qualifying criteria and wishes to use the GST ratio method they must, before the beginning of the tax year in which they wish to use the method, send an election to the Commissioner of Inland Revenue (CIR). The CIR will calculate the taxpayer’s GST ratio and advise the taxpayer of their ratio before their first provisional tax instalment is due.

Calculation of GST Ratio The GST ratio for individuals is calculated as follows: Year for provisional tax being calculated

RIT previous year

RIT two years previous

2023

(2022 RIT (original formula)) (2022 taxable supplies – asset adjustments) x 100

(2021 RIT (original formula)) (2021 taxable supplies – asset adjustments) x 100

When a taxpayer’s RIT or GST taxable supplies are not available for the previous tax year, the taxpayer must use their RIT for the year before the previous tax year (i.e. 2 years previous) and use their GST taxable supplies that correspond with that income year. An adjustment to the taxpayers GST ratio may be made if, as part of the taxpayer’s taxable activity, an asset is disposed of, provided that the asset is not revenue account property and the value of the supply is not less than the greater of: •

An amount equal to 5% of the business’s total taxable supplies for the previous 12 months; or

•

$1,000

The adjustment is optional, and may be made by adjusting the taxpayer’s taxable supplies for both the relevant period and income year. 436

Number of Provisional Tax Payments Using the GST Ratio Method If a taxpayer chooses to use the GST ratio method they are required to make 6 provisional tax payments (every 2 months) along with GST. Monthly GST filers will pay provisional on every second GST return. However, if the total amount of provisional tax is underpaid, only the taxpayer’s compulsory provisional tax payments (instalments B, D and F) will be subject to UOMI (use of money interest).

For overpaid provisional tax, the UOMI provisions have been amended to ensure that if a taxpayer makes a voluntary payment of provisional tax on instalments A, C or E they will receive UOMI from the day after the date of payment ‘date interest starts’.

Amount of Provisional Tax Payments using the GST Ratio Method To calculate their provisional tax payments, a taxpayer must multiply their GST ratio by their total taxable supplies for the appropriate GST return period.

Example: Jane has a 31st March balance date and chooses to pay her first instalment (instalment A) of provisional tax using the GST ratio method. The CIR has advised that her GST ratio is 9%. Jane files her GST returns on a 2-monthly basis. Jane’s taxable supplies for the GST period 1st April to 31st May 2022 is $22,050.

Jane’s provisional tax due on 28th June 2022 is $1,984.50 ($22,050 x 9%). This formula must be used to calculate her provisional tax due for each of other 5 GST periods. For example, if Jane’s taxable supplies for the GST period 1st June to 31st July 2022 are $18,630, Jane’s provisional tax due on 28th August 2022 will be $1,676.70 ($18,630 x 9%).

For taxpayers who file GST returns monthly, they must apply the GST ratio to the sum of their taxable supplies in the current taxable period and the preceding taxable period (i.e. the taxable supplies in the 2-month period matching the provisional tax instalment period).

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Accounting Income Method (AIM) This method requires calculations to be made through accounting software with payment being made either monthly, two monthly, depending on the GST frequency. The calculation would be based on a statement of activity as generated by accredited accounting software. Aim is available for taxpayers who: Have annual gross income of under $5m (exceptions can be requested for this requirement) • Use AIM capable software • Elect to use AIM before their first payment date • Are not operating under the following class of taxpayers: o Partnership o Trust o Maori Authority o Portfolio Investment Entity (PIE) o Superannuation Fund o Taxpayers who have investments in foreign investment funds (FIF) or controlled foreign companies (CFC) AIM is potentially useful for taxpayers who have seasonal income, such as farmers, however it is not an option for partnerships (a common farming structure). •

We recommend you consult your accountant or financial advisor before electing into AIM.

Tax Pooling Information provided by Tax Management New Zealand (www.tmnz.co.nz) One option that can be considered to reduce exposure to IRD interest and penalties when provisional tax payments have been miscalculated or missed is tax pooling. It is approved by Inland Revenue (IRD), with registered intermediaries operating under legislation set out in the Income Tax Act 2007 and Tax Administration Act 1994, and has been part of the New Zealand tax landscape since 2003. Tax pool accounts are held at IRD and administered by an independent trustee. The independent trustee also oversees the bank accounts in which payments are made. Circumstances tax pooling can help If an upcoming provisional tax payment cannot be paid on the date it is due, a taxpayer can put in place an arrangement with a tax pooling intermediary to defer this payment to a time that suits the taxpayer, without incurring IRD interest and late payment penalties.

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In the event provisional tax has been underpaid or not paid at all for the current tax year or one just completed, a taxpayer can purchase the backdated tax they require to eliminate IRD late payment penalties and reduce their exposure to interest. Taxpayers have up to 75 days past their terminal tax date to pay what they owe IRD through tax pooling.

Who might find tax pooling beneficial Provisional taxpayers who experience cashflow constraints, have seasonal income or experience volatility due to fluctuating commodity prices or the exchange rate may find tax pooling a useful tool to manage their income tax payments and reduce compliance costs. This can be particularly useful for farmers for the above reasons. The following examples shows the cost and estimated savings for a company with $30,000 of unpaid provisional tax to IRD but making the payment to a tax pooling intermediary at later date. Example 1 is based on the payment being made on the 24th of October 2022.

Income Year

Tax Date

Tax Amount

Cost with Tax Pooling

Estimated Savings

Use of Money Interest

Late Payment Penalties

2022

28 Aug 2021 $10,000

$10,616

$211

$504

2022

15 Jan 2022

$10,000

$10,426

$132

$504

2022

07 May 2022

$10,000

$10,298

$46

$504

TOTAL

$30,000

$31,340

$1,901

Example 2 is based on the payment being made on the 15th June 2023 being 75 days after the due terminal tax date (7th April 2023 if return is filed by a tax agent).

439

Income Year

Tax Date

Tax Amount

Cost with TMNZ Interest

Estimated Savings

Use of Money Interest

Late Payment Penalties

2022

28 Aug 2021 $10,000

$11,063

$281

$504

2022

15 Jan 2022

$10,000

$10,873

$202

$504

2022

07 May 2022

$10,000

$10,721

$139

$504

TOTAL

$30,000

$32,657

440

$2,134

Returns of Income Generally, a full tax return (IR3) is required if you receive income other than from employment, New Zealand interest, or New Zealand dividends during a tax year. The return of income each year should set out details of the assessable income derived during the year, plus supporting information, including financial accounts etc (IR10). Annual income tax returns relate to an income year ending 31 March unless an alternative balance date has been approved by the Inland Revenue Department. While IR3 returns will still have to be filed by relevant individual taxpayers, those taxpayers who have tax deducted from all their income at source, for example PAYE, RWT, receive an automatic assessment. The result is the elimination of a yearly tax return for many taxpayers. The increased use of technology by the Inland Revenue Department means this information can now be accessed online via a myIR login. Taxpayers who earn income that does not have tax deducted at source, such as business or rental income, will be required to complete an individual income tax return. Those who earn wages, salary, interest and dividend income but have something out of the ordinary, such as a loss, will also be required to file a tax return. The following return forms should be used: IR3

For individuals who pay provisional tax. Includes self-employed taxpayers, salary and wage earners and superannuitants who derive investment income with a residual income tax liability in excess of $5,000, and taxpayers whose income was derived from estates, trusts or partnerships.

IR3B

Schedule of business income.

IR3F

Farming income.

IR4

Income tax return: Companies

IR6

Income tax return: Estate or trust.

IR7

Income tax return – Partnerships and Look-through companies

IR9

Income tax return – Clubs or Societies.

Due Dates for Annual Returns Annual returns for IR3 taxpayers and all other persons are due 7th July each year, or on the 7th day of the 4th month after the end of that person’s income year. There are penalties for filing returns after the due date. Special rules apply to returns completed by accountants and other specialists. These allow an extension of time for filing returns until 31 March of the following year.

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Assessment of Tax The return of income requires the taxpayer to calculate his or her actual tax liability and then credit the PAYE, withholding, or provisional tax, which was paid during the income year. Inland Revenue will issue an assessment notice to the taxpayer which will either accept or amend the return as filed. Possible outcomes are: •

A refund of overpaid tax (or a credit that can be offset against other tax due).

•

More tax to pay (terminal tax). For individuals who are not provisional taxpayers, the due date for terminal tax is the 7th day of the following February.

•

No adjustment required.

•

Confirmation of a tax loss which can be carried forward to be offset against future income.

Inland Revenue has the right to issue an amended assessment if it believes a previous assessment was not correct. The IRD has the right to do this until four years after the end of the income year (31 March) in which an assessment was made. Where a tax return was fraudulent or wilfully misleading or where it omitted income, then the Inland Revenue can issue an amended assessment without any time limit. The taxpayer has the right to dispute their tax assessment. It is advisable to seek professional advice if a tax assessment is under dispute as the procedures are complex and subject to strict time restrictions. A taxpayer who has lodged a competent objection or challenge to an assessment is not required to pay: •

the deferrable tax

•

a shortfall penalty in respect of tax in dispute

•

the interest accruing on the deferrable tax or shortfall penalty until the due date for payments of that deferrable tax.

If the taxpayer is successful in the dispute, the IRD will pay interest on the tax which the taxpayer paid before litigation. Alternatively, if the IRD is successful the taxpayer will be liable for interest on the unpaid portion of tax which is outstanding from the original due date.

442

Penalties Interest Use-of-money interest (UOMI) is not a penalty as such, although it is appropriate to outline the provisions here. The principle behind the two-way interest regime is that tax payments are due on prescribed dates, and taxpayers have an obligation to pay on the applicable date. Interest will provide an incentive to pay the right amount of tax at the right time by removing any benefit which can be achieved by deferring tax payments. The two-way interest regime applies to both the taxpayer and the IRD, although the interest rates differ. Interest on underpayment of tax will be charged to the taxpayer at 7.96% p.a. (from 30 August 2022), while interest on overpayment will be paid to the taxpayer by the IRD at 1.2% p.a. (Note: These rates of interest are determined by the IRD and are subject to change. Taxpayers should consult their tax adviser or the IRD for the current rates.) Generally, interest will be charged from the day after the original due date until the tax is paid. Interest received (by the taxpayer) will be assessable; interest paid will be deductible.

Penalties The penalties regime applies to place greater emphasis on taxpayers meeting their obligations at the standard expected of a reasonable person. The penalty regime supports self-assessment concepts by encouraging voluntary compliance with the law. Some, but not all, penalties may be remitted by the Commissioner of Inland Revenue. Where remitted, the debt (penalty) is legally forgiven. There are two classes of penalty under the regime. The key features of each class are outlined on the next page.

Civil Penalties Civil penalties apply in the following circumstances: •

Late filing of returns. Penalties range from $50 to $500, depending on the amount of net income.

•

Late payment of tax (5%). The 5% penalty is charged in two stages. The first 1% is charged on the day immediately after the due date for payment. 4% is charged if the tax remains unpaid seven days after its due date. The late payment penalty does not apply if unpaid tax is $100 or less.

•

Non-Payment Penalty – Applies to unpaid employer deductions.

443

•

Shortfall penalties where tax is underpaid because of; 

a lack of reasonable care (20% of deficient tax)



an unacceptable interpretation or application of tax law (20% of deficient tax)



gross carelessness (40% of the deficient tax)



an abusive tax position (100% of the deficient tax)



tax evasion (150% of the deficient tax)

The penalties may be abated for voluntary disclosure, or increased if the taxpayer obstructs the IRD. Threshold amounts apply to ensure that trivial amounts do not attract such penalties. Civil penalties are not tax-deductible.

Criminal Penalties If you're convicted of breaking tax laws, the courts may charge you criminal penalties. These apply to all taxes. If you act on behalf of someone else (eg as an employee, agent or officer) you can also be charged criminal penalties if you're responsible for them committing an offence. The type of offences are as follows;  Absolute liability offences: - By law, you need to keep books and documents, eg accounts, relating to your tax affairs for a minimum of 7 years. You also need to be able to provide information on request, including tax invoices  Knowledge offences: - Knowingly breaking a tax law or obligation  Evasion and similar offences: - Knowingly evading or intending to evade tax. You can be charged for pretending to be another person for tax purposes  Offences relating to court orders: - You can be charged criminal penalties if you don't obey a court order Obstruction Preventing an Inland Revenue officer from carrying out their duties  Aiding or abetting: - Helping someone else to commit an offence From July 2019 a failure to meet a requirement under the common reporting standards can result in a penalty of $300 for each failure. A failure to take reasonable care to meet certain reporting standards can result in penalties up to $100,000. Anyone who fails to provide information to a financial institution can be liable to a penalty of $1,000. These penalties are usually due 30 days from the date of issue of the notice of assessment of the penalty.

444

CALCULATING TAXABLE INCOME - OVERVIEW Core Provisions The core provisions of the Income Tax Act 2007 set out the basis of income tax law in New Zealand. Core provisions, broadly, are those sections of the legislation which define the tax base by bringing certain income to tax, exempting various types of income, prescribing the rules for deductions, and defining when a person is resident in New Zealand. These provisions adopt a “global” approach to the calculation of an income tax liability, and have been written in plain language.

The core provisions state in writing and in diagrammatic form the method of calculating and satisfying the annual income tax liability. The annual gross income is reduced by the allowable tax deductions in order to determine the net income or net loss of the taxpayer. Taxable income is calculated by deducting net losses carried forward (if any) from net income. Tax at the applicable rates is calculated on the amount of taxable income, and is then adjusted for rebates.

Available tax credits (e.g. PAYE, RWT, overseas tax paid and/or provisional tax already paid by the taxpayer) are then credited against this net tax liability in order to establish if the taxpayer has underpaid or overpaid their tax for the year. Underpaid tax results in more tax to pay (terminal tax) while overpaid tax generally results in a refund to the taxpayer.

445

CALCULATION OF TAXABLE INCOME - INDIVIDUALS Overview Individuals have to file IR3 tax returns (depending on their sources of incom). While IR3 returns will still have to be filed by relevant taxpayers those taxpayers who have tax deducted from all their income at source e.g. PAYE, RWT etc may receive a personal tax summary which replaces the IR3. Individuals are required to pay tax at the rates specified by the Income Tax Act. These rates vary according to the level of income on the basis that the higher the income, the higher the marginal rate of tax.

Taxable income is the net amount after deducting exempt income and allowable deductions from income received by the taxpayer.

The actual tax liability for the year is the amount of tax (calculated on taxable income) less the applicable tax credits and adjustments (if any). These are calculated in the taxpayer's personal tax summary.

It is usual to find that some taxpayers must make a final adjustment to settle their tax liability. The amount of adjustment is calculated by deducting the tax paid during the year (e.g. PAYE or provisional tax) and any other tax credits from their actual tax liability. A negative amount represents an overpayment of tax, which will be refunded to the taxpayer. A positive amount represents an underpayment of tax, which must be subsequently paid to the Inland Revenue as terminal tax.

446

Assessable Income

This includes, among other sources:

1. 2.

Business income (includes farm income). Monetary remuneration from employment, such as salary and wages, allowances (other than reimbursing allowances), bonuses, gratuities, emoluments (including redundancy), or other monetary benefits. Salary and wages includes: •

Value of board, lodging and house allowances received.

•

Payments on account of an employee.

•

Pensions and superannuation from past employment.

•

National superannuation.

•

Earnings related to Accident Compensation receipts.

•

‘Basic Grant’ paid to students.

Personal property sales, if it is the business of the taxpayer to deal in such property, or if the property was acquired for the purpose or intention of selling or otherwise disposing of it.

Revenues from land e.g. net rents received; profits from extraction, removal or sale of minerals, timber, etc.

Gains from the sale of land in some circumstances. There are complex rules regarding the taxation of gains from the sale of land (including improvements e.g. buildings). The following list provides a simplified summary: Gains are taxable where: A. Land purchased and sold with the intention of resale. Intention of resale must be present at the time of purchase. Tax liability will attach whenever the land is sold. B. Land sold by a dealer in land. If the land was purchased for a land dealing business, tax liability will attach no matter when the land was sold. If the land was purchased not for the dealing business, tax liability will attach only if the land is sold within ten years of purchase. A dealer has been judicially defined as “one who is engaged in a reasonable frequency of transactions.” C. Land sold by a developer/divider of land. The same provisions re business/nonbusiness acquisition set out in B above apply.

447

D. Land and improvements sold by a builder. The same provisions re business/nonbusiness acquisition set out in B above apply. E. Land sold where at least 20% of the gain is due to resource consent changes or approvals and the land is sold within ten years of acquisition. F. Sub-divided land where the scheme of subdivision was commenced within ten years of acquisition. G. Major sub-divisions involving significant expenditure. H. Residential land is acquired and disposed of within two, five or ten years (BrightLine Test which came into force on the 1st of October 2015 and was increased to five years from 29 March 2018 and to ten years from 27 March 2021 Refer 4.1.2)

There are various exemptions to avoid tax liability attaching under one or more of the above categories of land sales. There is an exemption for land used as genuine residential accommodation by the taxpayer and his/her family prior to the sale and where the area does not exceed 4,500 square metres. This exemption applies to all the land sale categories. There is also an exemption for land used prior to the sale by the taxpayer as business premises for which business activities are actively conducted. This exemption also applies to all categories of land sales but is qualified with respect to the builder category. For land sale categories E, F and G, there is also an agricultural exemption. This exemption requires the land to be used for the purposes of an agricultural business prior to the sale and able to be used for the purposes of an agricultural business subsequent to the sale. For land category F, there is an exemption if the sub-division is undertaken for the purposes of deriving rental income. There are a number of anti-avoidance measures in this legislation, the most significant of which are the associated persons provisions. These provisions deem spouses, children, parents, companies, trusts and partnerships to be associated persons of a liable taxpayer. There are two purposes to these provisions. Firstly, they are designed to prevent land owners from transferring liable land to an associated person to avoid the tax liability. The provisions deem that the transferor will be liable for tax on any profit made by the transferee. The second purpose applies only to categories B, C and D. Where the taxpayer is an associated person of dealer, developer/divider or builder when the land was acquired, that association will taint the taxpayer meaning that the land sale can be taxed under the category B, C and D tax provisions even though the taxpayer him/herself is not a dealer, developer/divider or builder. The definition of an associated person was amended in 2009 to extend the liability of an associated person. 448

Royalties and ‘know how’ payments.

Interest, dividends, annuities and pensions.

All income-tested benefits paid by the Ministry of Social Development.

Travelling allowances received by an employee will be taxable except those amounts which represent a reimbursement of additional transport costs incurred by the employee in travelling between home and his or her place of work.

Exempt Income

The following items, amongst others, are exempt from income tax: •

Prize money from horse or dog racing, or trotting.

•

Prizes from Lotto, Instant Kiwi and Bonus Bonds.

•

Monies received by way of gifts, legacies, and capital gains.

•

Any educational scholarship or bursary (but not the ‘basic grant’ which is paid by the New Zealand Government).

Deductions for Employees Recipients of salary, wages and/or national superannuation, and casual agricultural employees, are not permitted to deduct employment related expenses. However, there is one category of deduction that still applies to most people. Expenses incurred in the calculation of a person's liability for tax may be claimed as a deduction. This includes fees paid for preparation of accounts and tax returns, use of money interest, and purchase of reference materials to assist the taxpayer in calculating his or her tax.

Personal Tax Credits Tax credits are offset against the tax liability calculated. However, the total tax credit claimed cannot exceed the assessed amount of tax payable, so the tax credit cannot be claimed as a refund if they are more than the tax which is due. In the past tax credits were claimed by salary and wage earners when completing an annual tax return. Now, individual taxpayers claim tax credits using a tax credit claim form. All tax credit claim forms for an income year can be filed at any time. The tax credit claim form will be used by all individuals who are eligible to claim tax credits, including those who will still be required to file an annual tax return. When an individual has processed a tax credit claim form, a tax credit claim notice will be issued to inform the taxpayer of the tax credits allowed and the amount of the refund payable. The principal tax credits available to individuals for the current income year are:

449

Taxation for Children From 1 April 2012 this tax credit is replaced with an “active income exemption”. The exemption provides a school child is not required to pay tax on up to $2,340 of income which is not taxed at source. The exemption will not allow a child to claim a refund on tax that has already been paid, such as PAYE and RWT.

Donations The lesser of 33.33% of total qualifying payments made, or 33.33% of taxable income. Donations must be for a minimum of $5 and made to approved charities. Receipts must be furnished in support of the rebate claimed.

Payroll Giving 33.33% of the amount donated is deducted from PAYE when it is paid. This tax credit is available only to employees whose employer files their monthly schedules and PAYE deduction forms electronically, and the donation is made to an approved donee organisation.

Independent Earner Tax Credit (IETC) The tax credit of $520 ($10 per week) is available when a person’s (criteria apply) annual income is between $24,000 and $44,000. With annual income over $44,000 but under $48,000 the tax credit is decreased by 13 cents for every additional dollar earned.

Working for Families Tax Credit Working for Families Tax Credits (WfFTC) are intended to give income support to low and middle income earners with families.

The WfFTC package is made up of the following: • • • •

Family tax credit In-work tax credit Best Start tax credit Minimum family tax credit

The family tax credit, in-work tax credit and the parental tax credit are collectively referred to as the WfF tax credits in the legislation. Family tax credits and in-work credits are to provide assistance for families who have dependent children aged 18 years or younger. 450

The Best Start tax credit is a payment for the first three years of a child’s life. You can receive $65 per week (up to $3,380 per year) per child. Payments will reduce in the second and third year if your family income is above $79,000. For every dollar above $79,000 the entitlement will reduce by 21 cents. Family assistance credits are administered by the IRD and may be received by way of interim fortnightly instalments or at year end upon filing an annual return. A person’s WfF tax credits entitlement for each year is determined under the following formula: In addition to family income being within the income threshold, a family’s eligibility to receive family assistance is determined in relation to an “eligible period” for the income year and where four criteria are met. An eligible period means an unbroken period in an income year. The four criteria are: •

the person is a New Zealand resident and is sixteen years of age or over during the period,

•

he or she must be the principal caregiver of one or more children during the period,

•

his or her marital, civil union or de facto status must remain the same during the period,

•

the child or children to who the claim relates must be a dependent child or dependent children.

Other provisions are: •

A separated parent will be entitled to the in-work payment if he or she has exclusive care of a dependent child for at least one third of a tax year, a four month period, or the entitlement period, in the case of a parental tax credit.

•

A separated person’s eligibility for the in-work payment and eligibility criteria relating to the care of that child are considered for the periods during which that parent was the principal caregiver.

•

Only the family tax credit or a parental tax credit will be apportioned on the basis of the time that a dependent child spends with another qualifying person.

•

If two people are eligible for a child tax credit or an in-work payment in relation to a child, the amount of the credit that one person is entitled to is not affected by the other person’s eligibility.

451

CALCULATING TAXABLE INCOME - COMPANIES A company pays tax in its own right (i.e. it is separate and distinct from its shareholders). The company rate of tax on income derived by New Zealand resident companies is 28%. Taxable income essentially means business income less allowable deductions including depreciation. Under the imputation system, tax payable by a company can be available as a tax credit to the shareholders by the way of imputation credits attached to dividends. Companies pay tax through the provisional tax system.

Imputation System Dividends paid can be subject to imputation credits. This means that tax paid by the Company can be passed on as a tax credit to the shareholders.

In a simplified example:

Family Company Limited earns a taxable income of

$100.00

Company tax payable (28%)

$28.00

Profit after tax

$72.00

The directors decide to declare a dividend that ensures the shareholders receive a payment of $50.00. They have the option of deciding how much imputation credit can be attached to the dividend, although the maximum imputation credit cannot be: (a) more than 28%(current company tax rate) of the gross dividend and (b) more than the amount of tax paid.

Note: Resident withholding tax (RWT) is payable on a dividend at 33% of the gross dividend amount, and any imputation credits are offset against the amount to be deducted.

Dividend payment

$50.00

Gross Dividend = Dividend payment divided by .67 (1-.33)

$74.63

RWT = Gross Dividend x 33%

$24.63

Less maximum Imputation Cr

$20.90

RWT to pay

$3.73

452

In the example, the maximum imputation credit to attach to the dividend cannot exceed the total tax paid by the company, i.e. $28.00, or exceed more than 28% of the gross dividend (74.63 x 28% = 20.90) The remainder of the tax paid ($28 – $20.90 = $7.10) can be carried forward, subject to shareholder continuity rules being met, in an imputation credit account (ICA). The balance carried forward can be used for tax credits in later years. Assuming the directors decide to distribute the maximum tax credit shown above, this will affect the shareholders (in total) as follows: Gross Dividend to be declared in tax return

$74.63

Less imputation credit as per above:

$20.90

Less RWT Credit

$ 3.73

Payment received by Shareholders

$50.00

Imputation Credit Account The company must maintain an Imputation Credit Account (ICA)

This account will include: CREDITS: •

All Company tax payments

•

Balances brought forward from previous years

•

Dividends received with imputation credits attached

less DEBITS •

Imputation credits allocated to shareholders on dividends declared;

•

Tax refunds received

The ICA can go into debit, by allocating the shareholders’ credits before the company pays its tax, but it must be zero or in credit by 31 March each year, or the amount overpaid plus a penalty (of 10%) is payable. This date applies regardless of the company’s balance date.

To Summarise: Imputation means that company dividends are not subject to double taxation. The tax paid by a company on its taxable income can be passed on as a credit to shareholders. As a result, if a company has enough imputation credits, and decides to distribute them, then dividends received should not result in extra tax to pay for the shareholders.

453

Losses Losses can be carried forward and deducted from the first available assessable income, subject to the following rules: •

At least 49% of the voting interests or market value interests in the company must be held by the same shareholders from the beginning of the period of loss to the end of the period of carry forward (shareholder continuity).

•

Losses must be offset in the same order as incurred.

•

Losses can be group offset between a loss company and a profit company provided that there is a minimum 66% common shareholding between the two companies (shareholder commonality).

Note: The government are currently considering options to loosen the loss continuity rules where shareholder continuity is not met. Loosening the loss continuity rules (ird.govt.nz)

Payments to Associated Persons Special considerations apply where associated persons (for example, relatives) of the shareholders or directors receive remuneration from the company. These may affect arrangements to split income between family members, and it would be advisable to seek professional advice under these circumstances.

Dividends Received by Companies are Taxable Dividends received by a company are taxable but imputation credits may be attached to eliminate tax liability. Dividends received from a foreign company and dividends from a wholly-owned group company are exempt income.

Qualifying Companies (QC’s) From 1 April 2011 new rules to the Qualifying Company (QC) regime were introduced. These rules allow existing QCs and loss-attributing qualifying companies to continue to use the QC rules, however these companies will not be able to attribute losses. Those companies that were not a QC before 1 April 2011 can no longer enter the QC regime.

454

Look-Through Companies (LTC’s) These entities are companies for the purposes of the Companies Act 1993, but are more akin to partnerships for tax purposes. They are a successor to the Loss Attributing Qualifying Company regime but, in a similar way follow the treatment of limited partnerships. LTC’s have a number of limitations to the amount of losses that may be attributed to shareholders. Due to the limitations and LTC’s being significantly different to Loss Attributing Qualifying Companies professional advice should be taken before a company is elected into the LTC regime.

Repurchase of Shares by a Company Under the Companies Act 1993, a company may repurchase shares which it has issued. This amounts to a distribution, but may not be subject to tax. The rules regarding the cancellation, repurchase or redemption of shares are complex, and professional advice should be sought concerning the impact such activities have upon company tax.

455

CALCULATING TAXABLE INCOME - PARTNERSHIPS Overview A partnership is not a taxpaying entity and is not itself liable to pay tax. However, the partnership must file an income tax return (IR7) that shows the partnership income (or loss), and details the distribution of income among the partners. Each partner must then file an annual return declaring their portion of the partnership income. Accounts should be furnished with the partnership return. The partnership's assessable income is calculated under the same provisions that apply to other businesses conducted by sole traders or by companies. Each partner is liable for tax as an individual and must add his or her share of the net partnership income to income received from other sources. Partnership losses are also allocated to the individual partners, as a partnership may not carry a loss forward. Payments of salary or wages and bonus payments made to a working partner under a written contract of service will be tax-deductible to the partnership. Normal PAYE procedures will apply to these payments.

Family Partnerships The use of family partnerships has been a common device for splitting income among family members. If the Commissioner of Inland Revenue believes that the remuneration or share of profits paid to the relative is excessive, they have the power to reallocate the partnership income for taxation purposes between the partners in such shares as the Commissioner of Inland Revenue considers reasonable, having regard to the capital and services contributed by the partners and other relevant matters.

456

CALCULATING TAXABLE INCOME - TRUSTS A trust is an equitable obligation binding on a person (who is called a trustee) to deal with property over which he/she has control (which is called the trust property), for the benefit of persons (who are called the beneficiaries) of whom he/she may be one, and any one of whom may enforce the obligation. It is not necessary that a trust be in writing, as a valid trust can be created by an oral agreement, or by the conduct of the parties concerned. However, it is desirable to evidence a trust in writing by a Deed of Trust, or inclusion in a will, or by some other trust instrument. Trusts are commonly used as a means to hold family assets until children reach an appropriate age. They can have advantages in estate planning, and have some income tax effect.

Classification of Trusts

The Income Tax Act distinguishes between three types of trust: Complying Trusts This category covers most New Zealand based trusts. Foreign Trusts Generally trusts settled by a non resident. Non-Complying Trusts This is any trust which is not a complying trust or foreign trust. Generally, these trusts have an off-shore trustee. Special rules apply to foreign trusts and non-complying trusts. These are not dealt with in this Manual.

Liability for Income Tax (Complying Trusts) A trust is a separate legal entity, and as such all the income of a trust is liable for income tax in the hands of the trustee, either as Trustee Income or as Beneficiary Income where the trustee acts as the agent of the beneficiary (although the primary liability remains with the beneficiary). Beneficiary Income is: •

Where a beneficiary of any trust becomes entitled to income under a specific provision of the trust deed or by the discretionary act of the trustee; or

•

Where the trustee pays or credits income to, or on behalf of the beneficiary of a trust, during or within twelve months after the income year by a genuine transaction which places the income beyond the possession and control of the trustee in his/her capacity as trustee of that trust.

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In the case of Beneficiary Income, the taxation liability is determined by calculating the tax liability of the beneficiary as an individual. If the beneficiary derives additional income, a personal return of income should be filed incorporating his/her trust income and the tax already paid by the trustee on his/her behalf. Trustee Income is any income which is not distributed as Beneficiary Income and is taxed at 33%. Provisional tax will normally be paid on the income of a trust. The return of income for the trust (IR6) will be filed by the trustee(s). Trust income is taxed once only so that a distribution to a beneficiary is not taxed if the trustee has paid tax on the income previously.

Income Distributed to Minor Beneficiaries Trust distributions of more than $1,000 to New Zealand resident minor beneficiaries are taxed at the trustee income tax rate of 33%. Only distributions from trusts settled by a relative or guardian of a minor, or an associated person of a relative or a guardian, will be subject to this rule. Such distributions will not be gross income of the minor beneficiary. For the purposes of this rule a minor is a person who is under the age of 16 on the balance date of the trust. Specific types of trust will be exempt from this rule: •

Beneficiary income derived from a trust where all settlements on the trust are sourced from a person who is neither a relative or legal guardian of the minor nor a person associated with the relative or legal guardian.

•

Beneficiary income derived from a trust where all settlements on the trust are made by a will, codicil, intestacy or court variation of a will, codicil or intestacy.

•

Beneficiary income derived from a trust which has more than one settlement including dispositions of property for less than market value by a relative, legal guardian or associate.

•

Beneficiary income derived by a minor in receipt of a child disability allowance.

•

Beneficiary income derived directly by a minor from a group investment fund.

•

Beneficiary income derived by a minor from a Maori Authority.

Distribution to minor beneficiaries under the above exemptions and distributions to adult beneficiaries are taxed at tax rates applicable to the beneficiary, e.g. 10.5%, 17.5%, 30%, 33% or 39% Inland Revenue has introduced greater disclosure requirements for New Zealand domestic trusts which came into force in the 2021/2022 income tax year. (Additional reporting requirements for NZ domestic trusts (ird.govt.nz))

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CALCULATING TAXABLE INCOME - FARMERS Farm Income

The assessable income of a farmer will include the following: •

Business profits from trading operations (includes soil cultivation, cropping or animal husbandry, growing plants, shrubs or flowers, growing fruit or grapes, beekeeping, poultry farming, share milking, running an orchard and forestry), calculated as sales less purchases and other business expenses plus or minus changes in value of stock on hand at the end of the year.

•

The value of meat and produce consumed domestically. (Usually nominal value if grown/raised on the farm.)

•

Income received from any contracting work.

•

Rents received from leasing farm property, including grazing fees.

•

Receipts from the hire of livestock and plant, including stud fees.

•

Insurance proceeds in respect of the loss of crops or stock.

•

Prize money from A & P shows, less entrance fees and other related expenses.

•

Compensation for stock condemned and hail damage.

•

Refunds from the Income Equalisation scheme, including interest.

•

Income from the sale of timber, including standing timber and trees planted for agricultural purposes.

•

Income from dealings on the futures market, e.g. wool futures.

•

Other items including any other categories of income generated by the farm business and income from any off-farm activities or investments.

Farm Expenses Private expenses in the nature of household stores, domestic wages, repairs to household equipment, etc. are to be treated as private drawings, and must not be charged against farm income. Similarly, the private portion of expenses on the dwelling and car, should also be regarded as drawings. Deductibility of farmhouse expenses Inland Revenue has recently issued an interpretation statement (IS 17/02) covering the deductibility of farmhouse expenditure. It creates a distinction between type 1 and type 2 farms and came into effect in the 2018 financial year.

In the past the IRD had allowed a deduction based on whether a farmer worked on the farm on a full-time or part time basis. However, farmhouse expenses may be deducted to

459

the extent that they are used for business purposes rather than whether the farmer works full time or part time. To reduce compliance costs the IRD makes the distinction between the following farm types: Type 1 farms – farming businesses where the value of the farmhouse (including curtilage and improvements) is 20% or less of the total value of the farm. • Type 2 farms - farming businesses where the value of the farmhouse (including curtilage and improvements) is more than 20% of the total value of the farm. For type 1 farms Inland Revenue will accept (without any supporting evidence) that 20% of the farmhouse is used for business purposes. As a result, such farmers can claim 20% of all farmhouse expenses as deductible business expenses, in addition these farmers may claim 100% of interest costs relating to the farmhouse and 100% of rates. •

Type 2 farms must apportion farmhouse expenses to the extent the farmhouse is used for business purposes. A summary is shown below: Farm type

Interest & rates

Farmhouse expenses

Type 1 farms

100% deduction

Type 2 farms

Dissection where possible then apportion between farm and farmhouse on a fair and reasonable basis. Deduct amounts attributable to the actual business use of the farmhouse.

Dissection where possible, then 20% deduction unless taxpayer can substantiate a higher deduction

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Fixed line telephone charges 50% of telephone rental charges used for both business and private purposes, unless the tax payer can show that 50% is too low. 50% of telephone rental charges used for both business and private purposes, unless the tax payer can show that 50% is too low.

In addition to the appropriate business expenses and the farmhouse expenses discussed above, farm expenses will include the following: •

Aircraft expenses (running costs and depreciation) in respect of the use of an aircraft used for farming purposes adjusted for an apportionment between business and private use

•

Accident compensation levies

•

Accommodation supplied to employees. A deduction may be claimed for accommodation supplied to all employees except partner-managers and all expenses (e.g. mortgage interest, repairs, maintenance etc) are deductible in full. The value of board and lodging supplied to an employee is treated as assessable income and subject to PAYE deduction. Where accommodation is supplied to a partner-manager, partnerships and sole traders can claim 20% of the costs of the dwelling, whereas a company must charge rent.

• •

Compensation for sheep worrying damage caused by farm working dogs Dairy Farming Expenditure: o

the cost of replacing a single component of milking plant (e.g. a pump or the pulsator units) is generally deductible;

some components of a milking plant will, however, be non-deductible capital items because they are unlikely to be replaced other than as part of an upgrade (e.g. Stainless steel pipe work and milk filters);

where a number of milking plant components are upgraded at the same time, the cost is usually on capital account and not deductible;

the cost of replacing either the platform, the motor or the drive mechanism of the rotary platform is a non-deductible capital expense;

the piping used in a dairy shed complex is not a fence for the purposes of s. DO 1 or s. DO 4, it will be capital expenditure;

the cost of replacing a damaged pipe-work gate leading to or from the dairy shed or yard is deductible; and

the cost of replacing overhead power lines to the dairy shed with an underground system of power is a capital expense and not deductible.

The cost of replacing the electric motor in a rotary platform is deductible.

•

Depreciation on farm assets, plant and equipment, amortisation on land improvements and intangible assets.

•

Electricity. A deduction is allowed for all electricity costs attributable to running the farming business. A deduction of 20% of the cost of electricity consumed by the farming household is also permitted.

461

•

Farm fertiliser. A deduction is allowed for expenditure on fertiliser and lime, including spreading and the deduction may be claimed either in the year the expenditure is incurred or in any of the following four income years, as deferred fertiliser expenditure.

•

Farm consumables. A deduction may be claimed for farm consumables such as hay, stock feed, twine, dip and drenches provided that the value of consumables falls within the accrual expenditure exemptions in Determination E12.

•

Income spreading schemes. Taxable income may be altered by shifting deductions for certain expenditures (such as fertiliser application) to future income years. Farm income may also be shifted to subsequent income years under the Income Equalisation Scheme.

•

Insurance premiums paid for insurance cover over farm assets and livestock. The prepayment rules will apply where the expenditure exceeds $12,000.

•

Land Development expenditure

•

Legal expenses incurred in raising a mortgage to buy a farm property or farm assets or in borrowing money for farm purposes.

•

Legal expenses incurred in entering into or renewing a lease of farm property or farm assets and in the preparation of share milking agreements.

•

Motor vehicle expenses including depreciation applicable to farm business use. The proportion of deductible motor vehicle expenses is based on the ratio of business use to total use. The ratio is established from details recorded in a logbook over a representative 90 day period, and applies for a maximum period of 3 years. A new ratio must be established if business usage declines by 20% or more so that the established ratio no longer fairly represents business usage. Where insufficient records are kept, the maximum deduction allowable for business use is limited to 25% of motor vehicle expenses.

•

Pest Destruction Board contributions.

•

Prepaid expenditure. Expenditure must be claimed as a deduction in the income year to which the expenditure relates. However for practical purposes, smaller items of pre-paid expenditure can be claimed as a deduction in the current income year if the type of expense and the amount comply with Determination E12. For example, rent paid in advance which is less than $26,000 and which relates to a period less than six months after balance date can be deducted in the current income year. Rent for a higher amount, or paid for in advance over more than six months, must be carried forward and deducted in the following income year, being the year to which it relates.

•

Protective clothing, e.g. wet weather gear, spray masks etc.

•

Repairs and maintenance excluding capital improvements. 462

•

Stores and rations provided to employees: ◊

Supplied to an outside employee (including a partner with less than 20% interest): the farmer can claim the actual cost of additional stores and rations purchased if accurate records are kept. This applies where these costs have not already been claimed as a tax-deductible farm expense.

◊

Supplied to related married employees or part proprietor employees: the actual cost of stores and rations supplied is tax deductible. An outside employee is one that lives off the farm and the meals are provided on the farm.

•

Subscriptions and levies. A deduction is allowed for the cost of papers and magazines containing farming information.

•

Telephone rental and fixed line charges. Type 1 farmers who operate their business from home may claim 50% of their telephone rental charges.

•

Wages paid to spouse or civil union or defacto partner. Special arrangements need to be made setting the amount of the deduction that can be claimed if his or her spouse, de facto or civil union partner to cook for employees. It is necessary that the following requirements for the payment of wages between spouse, civil union, or defacto partner are met, that is, declaration that the wages are genuine services, IR330 completed, regular cash payments, tax and Accident Compensation levy deducted and accounted for. The following should be noted: ◊

Payments for work performed on, or on behalf of, the farm may be deductible if the Commissioner of Inland Revenue (CIR) has given prior consent to such payments. Before consent is granted, the CIR must be satisfied that the payment is for genuine services rendered in producing assessable income for the year.

◊

An application for approval must contain certain details (the Inland Revenue provides appropriate declaration forms), but subsequent to approval, only written confirmation that wages are still being paid on the agreed basis is required. The declaration should be filed before the employment commences.

This payment is in addition to any special arrangements made in respect of seasonal or part-time employees, e.g. shearers.

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Deductions for Land Improvement Expenditure (Development Expenditure) Expenditure on land improvements would normally be regarded as the improvement of a capital asset and under usual principles be regarded as non-deductible capital expenditure. However as a specific concession, a small number of land improvement expenditures are deductible as development expenditure. The following expenditures are deductible in full in the income year they are incurred: •

The destruction of weeds, plants, or animal pests detrimental to land

•

The clearing, destruction, and removal of scrub, stumps and undergrowth

•

The repair of flood and erosion damage

•

The planting and maintaining of trees for the purpose of preventing or combating erosion

•

The planting and maintaining of trees for the purposes of providing shelter

•

The construction on the land of fences for agricultural purposes, including the purchase of wire or wire netting for the purpose of making new or existing fences rabbit proof

•

The re-grassing and fertilisation of all types of pasture provided that the expenditure is not incurred in the course of a change in the nature or character of the farming being undertaken on the land

A lessor of land used for farming or agricultural purposes may claim the above deductions. Note the 20% loading cannot be applied to assets purchased on or after 20 May 2010. A deduction is allowed for tree planting and maintenance if the principal activity undertaken on the land is a farming or agricultural business.

Purchase of Land Where land is purchased, any development expenditure incurred by the previous owner can continue to be amortised by the new owner.

464

Development Expenditure Example In the year ended 30 June 2022, a farmer incurs the following expenditure:

New fencing

$3,000

Irrigation pump

$5,000

Shelter tree planting

$1,000

The amounts deductible are: Deductible in full - New fencing

$3,000

Deductible in full - Shelter Tree planting

$1,000

If the irrigation pump is below the ground this can be deducted on a diminished value basis at 5% (an amortisation type deduction) $5,000 * 5% = $250

If the irrigation pump is above ground, this should be capitalised and depreciated at 13% diminishing value

$5,000 * 13% = $650,

so the value for the next year’s calculation will be $5,000 - $650 = $4,350

OR 8.5% straight line

$5,000 * 8.5% = $425 each year

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Depreciation Depreciation is an allowance for loss in value of a fixed asset due to fair wear and tear, obsolescence, etc. which is allowed as a tax deduction. Not all assets are depreciable, for example, assets which are not used to produce assessable income, or assets which are not subject to wear and tear (such as land). Where an asset has a part business and part private use, depreciation is calculated at the schedule rate and then apportioned between business and private use (e.g. car depreciation). Depreciation is calculated on the net price of the asset which generally would exclude GST if the taxpayer is registered for GST purposes. For a non-registered taxpayer, depreciation is calculated on the GST inclusive cost. Depreciation is based on the effective working life of the assets concerned, giving rise to the concept of economic rates. From 2012 buildings with an estimated useful life of greater than 50 years cannot be depreciated. In 2020 the deductibility of depreciation of non-residential buildings was reintroduced effective from the 1st of April 2020at a rate of 2% pa DV or 1.5% SL. The taxpayer has a choice of 3 methods of depreciation: diminishing value method, straight-line method, and the pool method. Diminishing value (DV) method is a constant percentage of adjusted tax value. The rates applicable to each asset are set by the IRD although a taxpayer may apply for a special rate. Straight line (SL) method is a constant percentage of cost price. The rates are set by the IRD although special rates may be approved. Pool method allows the grouping of low value assets, with depreciation being charged on the total of the pool. Buildings cannot be pooled. To pool property, the following criteria must be satisfied: (i)

The maximum cost or depreciated book-value of any one asset is less than $2,000.

(ii)

Taxpayers can use more than one pool. This is important because the lowest rate applying to any asset in a pool must be used.

(iii)

The assets must be used 100% for business purposes or be subject to FBT if their business use is less than 100%.

There is no restriction on the number of assets in a pool. Depreciation is calculated using the diminishing value method on the average value of the pool. The rate of depreciation is the lowest rate applying to any asset in the pool.

466

Example: Value of pool at year start

$18,000

Asset purchased during year

6,000

Value at end of year

$24,000

Average value of pool

= ($18,000 + $24,000) ÷ 2 = $21,000

Depreciation at (say) 22% DV

= $21,000 x 22% = $4,620

Pool value at end of year

= $24,000 - $4,620 = $19,380

Changing Between Methods Taxpayers can change the method(s) used for depreciation on a year to year basis, except when the asset is included in a pool. The carrying value for subsequent depreciation calculations is the current adjusted tax value. Charts exist to convert diminishing value rates to/from straight line rates. The Schedule of economic rates shows rates for both methods of depreciation.

Adjustments Assets other than pool assets acquired during the year may be depreciated (DV or SL) for the number of months owned. Additions to an existing pool are taken into account when the average value of the pool is calculated. Disposal of assets other than pool assets - Assets may not be depreciated in the year of disposal. A loss on sale is tax deductible except for buildings. A deduction is allowed for losses resulting from a building being destroyed or rendered useless as a result of events outside the taxpayer’s control, such as natural disasters. A gain on sale in excess of the depreciated book value is assessable but any excess over original cost price is a capital gain and is not taxable.

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Disposal of pool assets - The sale price must be deducted from the adjusted tax value of the pool before depreciation is calculated. No adjustment should be made if the pool asset is dumped or lost. If the resultant pool value is negative, that amount must be treated as depreciation recovered i.e. assessable income. The pool value becomes zero and no depreciation is charged until new assets are added to that pool.

Private use of non-pool assets - Depreciation must be apportioned between personal (nondeductible) expenditure and business (deductible) expenditure using an appropriate measurement base. For vehicles the same apportionment as for running costs must be used i.e. factual apportionment when complete records are kept, or based upon a test period of 3 months (subject to review every 3 years).

Private use of pool assets - Depreciation on pool assets cannot be apportioned - by definition, pool assets must have 100% business use. If the usage of a pool asset is not totally business related, it must be removed from the pool (deemed sale at market value) and then depreciated separately. Depreciation can then be apportioned between business and personal.

Special Rules Computer Software - Expenditures must be capitalised and depreciated at 50% DV or 40% SL. Software costing less than $500 may be immediately expensed. Costs of upgrades follow the same rules. Maintenance costs may be expensed.

Loose tools are consumable items of the type that are left on the shelf or in a chest when not in use. Loose tools should be treated as any other asset i.e. separately depreciated, pooled, or treated as a low value asset.

Low value assets costing $1000 or less may be claimed as a deduction (subject to some rules). If such property is subsequently sold, the entire sales proceeds are assessable.

Assets which are scrapped may be totally written off. The disposal costs must exceed the expected sale proceeds for such assets. If a scrapped asset is later sold, the proceeds are assessable up to original cost.

Transfers of depreciable property between associates. In general terms, the base value of an asset purchased from an associate is the lower of the original price paid by the seller or the price paid by the buyer. In addition the purchaser cannot claim a higher rate of depreciation than that used by the seller. 468

New assets and imported second-hand assets excluding imported used cars, buildings, intangible assets and software, may be depreciated at the economic rate. Second-hand property, imported used cars and buildings are depreciated at the appropriate economic rate. Plant variety rights. Plant variety rights and the right to use them are included as intangible property and subject to an annual depreciation deduction. Plant variety rights are granted for terms of 20 or 23 years depending on the plant material. For depreciation purposes, the legal life of a plant variety right is the total of its legal duration under the contract or statute which creates it and the number of months during which the person owned the plant variety rights application.

Assets Acquired During the Income Year Depreciation is calculated on a monthly basis. Annual depreciation deductions are based on the number of months the asset is owned.

Assets Sold During the Income Year When a depreciable asset is sold, the total depreciation already allowed is adjusted so that the amount equals the actual decline in value from original cost to the disposal value. The amount of the adjustment is calculated by comparing the net sales proceeds (after deducting the costs of sale) with the book value of the asset. If net sales proceeds are less than book value i.e. a loss on sale occurs, the loss is deductible in the year of sale. Losses on sale of buildings are not tax deductible. However, a deduction is allowed for losses resulting from a building being destroyed or rendered useless as a result of events outside a taxpayers control such as natural disasters. Note: due to the Christchurch earthquakes specific legislation regarding depreciation has been legislated. If net sales proceeds exceed tax depreciated book value, a gain on sale occurs. The gain is assessable in the year of sale. This gain is known as depreciation recovery income. Any excess above the original cost price represents a capital gain which is not taxable.

469

Income Equalisation Schemes

There are three income equalisation schemes. Ordinary Income Equalisation Scheme This scheme allows a farmer to level out income from year to year by permitting a reduction in assessable income by the amounts deposited with the Inland Revenue. These deposits are retained in the Income Equalisation Reserve Account in the farmer's name. When amounts are withdrawn at a later date, they become assessable income. Those taxpayers eligible to take advantage of the ordinary income equalisation scheme are: •

a taxpayer engaged in any farming or agricultural business.

•

a taxpayer engaged in any business of fishing including rock oyster, mussel and freshwater fish farming.

•

an individual taxpayer (not a company, public authority, or unincorporated body) who derives assessable income from forestry i.e. from the sale of standing, cut or fallen timber in its natural state grown on land owned by the taxpayer in New Zealand or the rights to cut or remove such timber.

Deposits Assessable income is reduced by the amount deposited during a year. Deposits may, however, be used to reduce the income of the immediately preceding year upon the taxpayer's written election, provided the deposit is made within the shorter of: •

six months after balance date; or

•

one month after the due date for filing the return of income.

Deposits and refunds made outside the specified period will be accepted if made by the required date being one month from the date of filing the return of income for that accounting year. The maximum amount of deposits in any one year is the assessable farm income for that year, and each deposit must be a minimum of $200 (except the last deposit to make up the maximum). The minimum period of deposit is one year (able to be relaxed under certain circumstances) and the maximum period for any one deposit is five years. Generally, no deposit can be made in a year when the farmer voluntarily withdraws funds from the Income Equalisation Reserve Account. Interest is paid at 3%p.a. on deposits held (except those withdrawn within one year), and credited to the appropriate deposit.

470

Withdrawals Compulsory refunds are made if a deposit reaches the maximum term of five years. Voluntary refunds (withdrawals) can be made at any time but must be made from funds deposited for a minimum period of 12 months, subject to the following exceptions: (a)

(b)

If deposited for six months or more, funds may be withdrawn: ◊

For immediate expenditure on planned development or maintenance work;

◊

To purchase livestock;

◊

To avoid hardship.

If deposited for less than six months, funds may be withdrawn: ◊

For immediate expenditure on unplanned development or repair work resulting from an adverse event;

◊

To purchase replacement livestock due to an adverse event;

◊

To avoid hardship.

All refunds become assessable income in the income year when the application is made, or the immediately preceding year on the same conditions as for deposits. A refund will not attract more tax than the deposit saved. Refunds are made from the oldest deposits first.

Forestry Income Equalisation Scheme There is a limited income equalisation scheme for a forestry company earning income from thinning operations. Thinning operations means the felling of trees in an immature stand to improve the growth and form of the trees remaining in the stand. The minimum refund is $200 unless the account balance is smaller; the maximum is the account balance. There is no maximum time for which deposits by a forestry company may remain in the income equalisation account. Special rules apply where the refund is due to the retirement, death, or bankruptcy of the farmer.

471

Adverse Event Income Equalisation Scheme This scheme allows taxpayers engaged in any farming or agricultural business, to deposit income that arises from the sale of livestock, or failure to replace livestock, due to a selfassessed adverse event. Deposits may be made during the year or backdated if made within one month after the end of the financial year. Interest at 3% p.a. is payable on deposits. Refunds add to assessable income in the year application is made. Deposits remaining in the Adverse Events Income Equalisation Scheme one year after the event are transferred to the Main Income Equalisation Scheme.

Discretionary relief due to other adverse events From time to time the government may announce special income equalisation provisions for farmers affected by adverse events outside of their control. Recent examples are as follows; • •

Assistance to farmers affected by droughts Assistance to farmers affected by the Canterbury Floods

An example of discretionary relief has been to allow early refunds in the case of adverse events. This has allowed farmers to move profit from one tax year to the following tax year (or year after) without impacting significantly on cashflow and resulting in lower, or deferred tax commitments.

472

Valuation of Trading Stock General Principles

The value of the trading stock of any business at the beginning and at the end of every income year must be included in calculating taxable income. The value of trading stock on hand at the end of the year is included in assessable income; the value on hand at the beginning of the year is deducted from assessable income. In general, the taxpayer has the option of valuing trading stock at cost price, market selling value, or replacement price. In practice, the lowest possible value is generally the most advantageous for taxation. Livestock is valued according to special rules (see below).

Consumable Aids Items consumed in the production of trading stock, but which do not form part of the final product, are regarded as consumable aids and not as trading stock. Therefore, expenditure on items such as fuel, fencing materials, ear-tags, farm chemicals, fertiliser held for spreading and hay held for winter use may be fully deductible in the year the expenditure is incurred Expenditure on unconsumed consumable aids on hand at balance date will still be deductible if their total value does not exceed $58,000 in accordance with Determination E12. However, if the value of all unused consumables on hand at balance date exceeds $58,000, then the original expenditure cannot be treated as a lump sum expense, but must be spread over the period(s) when they are actually used.

Growing Crops, Fruit and Vegetables Crops, fruit and vegetables and other products which grow from the land and are attached to the land are regarded as part of the land itself, i.e. a capital asset. Growing crops are not regarded as trading stock unless and until they are harvested or severed from the land. Fruit growers can deduct the costs of purchasing and planting.

Valuation of Livestock Farmers who farm sheep, beef cattle, dairy cattle, deer, goats or pigs (referred to for tax purposes as specified livestock), are required to value their livestock for taxation purposes using the valuation methods prescribed by the Income Tax Act. The available methods are: •

The herd scheme

•

The market value or replacement price option

•

The national standard cost scheme

•

The self-assessed cost scheme

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For non-specified livestock (such as horses, rabbits, dogs, or ostriches) other than bloodstock, the valuation options are: •

Cost price

•

Market value

•

Replacement price

•

Standard value as agreed by IRD

Standard value is a fixed value which stays the same for each category of stock from year to year and differs from the national standard cost scheme for specified livestock In addition, the High Priced Livestock Scheme must be used where relevant livestock qualify.

Herd Scheme The herd scheme valuation method values each type of livestock on the basis of age classes at National Average Market Values (NAMV) set annually. In each income year, herd livestock on hand at both opening and closing balance dates are valued at the NAMV set for that income year. This effectively removes any gross income arising from the movement of livestock values between years. The philosophy underlying the herd scheme is that the herd is a capital asset, and movements in herd values should be treated as a non-assessable gain or loss to the farmer. Changes in herd numbers or the composition of the herd will affect taxable income. All classes of livestock are eligible for the herd scheme. The farmer can select: (i)

the classes of livestock, and

(ii)

the number of animals within each class, which are to be valued under the herd scheme.

(iii)

dairy and beef cattle have been separated into two livestock types.

The remaining animals in each class must be valued under one of the alternative options. Subject to a supporting valuation, herd values for any farmer may be set at 90%, 100%, 110%, 120%, or 130% of the National Average Market Value. Prior modification of an intention to change is required. Any income or loss arising from a change of herd value percentage will be assessable or deductible in the year of change. National Average Market Values (NAMVs) are published annually by the Tax Department. NAMVs for the current income year are usually announced in May and published in the Tax Information Bulletin and can be accessed on the IRD's website.

474

Movement to/from the Herd Scheme In March 2012, retrospective legislation was enacted that made any elections into the Herd Scheme irrevocable apart from some narrow exceptions. Once the Herd Scheme is adopted for a particular class of livestock the taxpayer is locked into using the Herd Scheme for that particular class until such time as that class is sold or the taxpayer ceases to be in business.

Narrow exceptions include: •

Farming operations change to a fattening regime where livestock is bought and sold and a cost based valuation is more appropriate,

•

Stock are sold to a non-associated party,

•

Stock dies, without being replaced with the same class of stock in that financial year,

•

Change of class to a class not previously elected as a Herd Scheme

•

Increases above the base number can be valued using other methods.

The taxpayer may still move from another valuation scheme to the Herd Scheme at any stage with a valid written election.

Associated Parties: Any sale of livestock to an associated person will require the associated person to adopt the sellers Herd Scheme elections and base numbers effective 28 March 2012. The only exemption to this is where there is a complete intergenerational change of ownership and the exiting generation has no ties at all with the new generation owners business – directly and/or indirectly, e.g. the vendor cannot be a beneficiary of a trust involved in the farming business. Loans left outstanding to the purchaser will not count.

Market Value or Replacement Price Market value is the estimated selling price of the livestock, whereas replacement price is the cost of buying an animal of the same size, age, and breed. Market and replacement values must be supported by a valuation from a recognised livestock agent. Market value/replacement price can be used as an alternative when using either of the cost options. However the market value and replacement price options are unlikely to be used unless these values fall below cost.

475

Cost National Standard Cost The National Standard Cost (NSC) option is a simplified way of calculating the cost of livestock produced on a farm (home bred). It is based on national average costs of production rather than on market values. A farmer will apply NSC to homebred stock while purchased stock will be valued at purchase price. NSCs for the current income year are announced approximately in January and published in the Tax Information Bulletin and can be accessed on the IRD's website (www.ird.govt.nz). Cost per head is accumulated until the animal reaches maturity (1 year for pigs, 3 years for male cattle, and 2 years for all other livestock). The aggregated cost will be held at that level within an inventory system (such as average cost) until the livestock is disposed of. National average costs will be announced annually by the Tax Department as: •

breeding, rearing and growing (BRG) costs of rising 1 year livestock of each type;

•

rearing and growing (RG) costs for rising 2 year livestock of each type except pigs;

•

rearing and growing costs for 3 year male cattle.

The average cost of livestock purchased must also be included in order to determine the final cost per head. Thus, average cost will be specific to each farmer. Only one cost option may be operated at any one time.

Example calculations (indicative costs only).

Example 1

Homebred sheep

Year 1:

BRG costs from IRD

$37.50 per head

Value per head = $37.50

Year 2:

R1 year value

$37.50 per head

RG2 costs from IRD

$27.00 per head

Value per head = $64.50

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Example 2

Rising 1 year stock No of lambs bred

1,000

No of lambs purchased

400

Average purchase price

$75 per head

BRG costs from IRD

$37.50 per head

Calculation: Homebred lambs

1,000 @ $37.50

$37,500

Purchased lambs

400 @ $75

$30,000

1,400

$67,500

Average cost of lambs

$67,500 ÷ 1,400

$48.21 per head

Note: BRG costs relate to homebred stock only. No rearing and growing costs are assigned to purchased stock in the year of purchase. Cost per head is an average over all stock of that class.

477

Example 3

Rising 2 year stock

NB: The year following example 2. No of hoggets at start of year

400

Cost of hoggets at start of year

$48.21 per head

Sheep purchased (not R1 class)

200 @ $100 each

RG2 costs from IRD

$27 per head

Calculation: Hoggets at start of year Rearing & growing costs

400 x $48.21 (400) x $27

Purchases

Average cost of mature sheep

$ 19,284 $ 10,800

200 x $100

$ 20,000

600

$50,084

$50,084 ÷ 600

$83.47 per head

Note: No rearing and growing costs are assigned to purchased stock in the year of purchase.

The year-end cost of opening stock can also be calculated as Opening stock numbers x (Year 1 cost + RG2) i.e. 400 x ($48.21 + $27)

The closing cost ($83.47) in this example) is held constant until the livestock concerned are either sold or die, or until the valuation method is changed. Depreciation is NOT charged on this stock. An inventory system is necessary in order to account for mature animals. It is suggested that an average cost inventory system would be appropriate for a livestock farmer. This method recalculates average cost annually. FIFO (first in, first out) could also be used.

478

Example 4

Average cost of mature sheep Number on hand-start

2,000

Intake of mature sheep

700

Sales and deaths of mature sheep

600

Number on hand - end

2,100

Last year's average cost (say)

$75.00 per head

This year's average intake cost

$83.47 per head

Calculation: Cost of sheep surviving from last year: (Start nos. - sales and deaths) x last year's cost (2,000 - 600) x $75

$105,000

Cost of this year's intake: 700 x $83.47

$58,429 $163,429

Average cost per head

$163,429 / 2100 = $77.82 per head

Note: The actual formulae are more complex than these examples show. Farmers should seek professional advice.

479

Self Assessed Cost The self-assessed cost (SAC) option is based on farmers assessing their own costs according to guidelines issued by IRD. The NSC scheme uses a farmers own costs of production. The self-assessed cost guidelines use livestock units (a well accepted unit based on feed intake) to apportion farm costs between livestock types. The apportioned costs are accumulated to determine the cost of livestock production for the year. Virtually the same rules that apply to NSC also apply to SAC: •

it is an optional scheme.

•

can be used with other schemes except NSC.

•

an inventory control system is required for mature stock groups.

Taxpayers cannot use the self-assessed cost and the NSC schemes in the same income year and any change from one scheme to the other requires two years notice. Self assessed cost cannot be used for stock currently in the herd scheme. Farmers considering the Self Assessed Cost scheme should seek professional advice.

Elections and notices The various election and notice requirements for specified livestock valuation are detailed in s EC 7. Most elections relate to changes between various valuation alternatives. In some cases, elections can be made by using the chosen method of livestock valuation in the relevant tax return. Otherwise, a same-year written notice or a two-year written notice is required. The notice requirements are as follows:

Movement from:

Movement to: National

HVR

Standard Cost

Self-assessed

MV/RP

cost

National Standard Cost

same-year two-year

Two-year

HVR

two-year

Self-assessed cost

two-year

same-year two-year

not required

MV/RP

not required

same-year two-year

not required

A taxpayer cannot use both the national standard cost and self-assessed cost in the same year.

480

High-Priced Livestock High priced livestock are in a separate class for valuation purposes. “High priced” means that the purchase price is at least $500, at the time of purchase it was capable of being used for breeding, and the purchase price exceeds by 5 times the higher of the previous year's or the current year's declared National Average Market Value for that class of livestock. The scheme applies to purchased stock only. High priced livestock are valued at cost less a write down for ‘depreciation’. Depreciation may be calculated using the straight line method or the diminishing value method. The rate depends on the type of animal, as follows: Livestock Category

Straight Line

Diminishing Value

Rate (%)

Sheep

Cattle

Stags

Other deer

Goats

Pigs

An election to adopt the diminishing value method of depreciation is irrevocable. There are restrictions on the closing value for the first income year. Where the livestock is owned for less than six months and is not used for breeding purposes, or is less than one year old at balance date, the closing value must be cost price (i.e. is not depreciated). Once high-priced animals have been depreciated to the NAMV for that class, they will be included in the other valuation schemes operated by the farmer i.e. transferred out of the High Priced Livestock scheme.

Bloodstock For tax purposes, bloodstock is defined to mean any horse that is a member of the standardbred or thoroughbred breed of horses.

481

General principles Stake money (i.e. prize money) from horse (or greyhound) racing in New Zealand or overseas, is exempt from tax; consequently no deduction is allowed for any expenditure associated with racing, including the costs of preparing for racing. The only exceptions to the non-deductibility of costs incurred in relation to racing activities are for the race preparation costs of professional bloodstock breeders who do not race that bloodstock and taxpayers who incur such expenditure in exchange for assessable income. Breeding activities that constitute a business are taxable whereas hobby activities are not. If the breeding activity is deemed to be a hobby, the proceeds of any progeny sold will not be assessable but associated expenses are not allowed to be deducted from taxable income. Horses raced by a bloodstock breeder can be regarded as a hobby if it is not part of the breeding business. Transferring bloodstock from ‘business’ to ‘hobby’ must be at market value, but once racing is regarded as a hobby, prize money received is exempt income.

Valuation of Bloodstock All bloodstock is to be valued at cost price. Stud stallions may be written down to $1 over a period of five years, while broodmares may be written down to $1 over a period of between three and 14 years depending upon the age when first used for breeding purposes. However, if the true market value of bloodstock is less than 50% of normal market value because of infertility, birth deformity or accident, then the true market value may be used. Costs of breeding and rearing are to be capitalised until the animal is used for breeding. The write-down provisions outlined above commence in the income year in which the horse was first used for breeding purposes. Gains on sale or other disposal of breeding stock may be used to reduce the cost price of replacement bloodstock, if application is made within a specified period. The depreciation rate applicable to bloodstock used for horse-breeding is 25%. In addition, stallions may be depreciated on a straight-line basis (at 20%) or a diminishing value basis (at 37.5%). An accelerated write-down regime for bloodstock was introduced with effect from 1 August 2006.

GST and Bloodstock The valuation of bloodstock is not affected by Goods and Services Tax as regards cost price or market value. GST exclusive values should be used, so that the cost price of bloodstock does not include input tax and the market value on disposal does not include output tax. Bloodstock of any age may be zero rated for export within 24 months of supply, provided Inland Revenue approval has been obtained. (The usual requirement is that goods must be exported within 28 days of supply.) Bloodstock owners must apply in writing to Inland Revenue enclosing a copy of the sale contract to gain the concession. 482

Farm Forestry and Timber Sales The principles underlying the taxation of a forestry activity is that any profit or gain made from the extraction, removal or sale of timber or the right to timber is included in taxable income on a net profit basis. The general principle is that a farmer who harvests a woodlot situated on his or her farm returns as gross income the amounts realised from timber sales with a corresponding deduction for the cost of timber. If the cost of timber is known, the calculation is straightforward. If the cost of timber is not known, the Commissioner’s practice is that the net income for tax purposes is the difference between the value determined on a royalty basis of the timber at the time of purchase of the property and the value at the time of sale. The responsibility is on the farmer to establish the cost price of the timber. Net income from the sale of timber or the right to take timber need not be returned in the income year the timber is sold. The taxpayer can elect to have the income apportioned to the year of sale and the three preceding income years by giving the Commissioner written notice of intention to use the spreading provisions. Forestry Planting Expenses A limited deduction is allowed in respect of expenditure incurred by farmers in planting or maintaining trees on the land.

Forestry and Land Development Costs Forest land development expenditures generally relate to the clearing and preparation of land for planting and the construction of access roads for use for more than 12 months. This type of expenditure is not deductible but must be capitalised and depreciated at applicable depreciation rates.

Forestry Planting and Maintenance Expenditure The following items are tax-deductible in the year the expenditure is incurred: •

Rent, rates, land tax, insurance premiums, administrative overheads, or other like expenses.

•

Weed, pest or disease control after trees have been planted. (Excludes releasing.)

•

Interest on money borrowed and used as capital for the purposes of the forestry business.

•

Planting or maintaining trees on the land.

•

Repairs and maintenance on plant and machinery used to develop land, or to plant or maintain trees.

483

•

Repairs and maintenance on land improvements (not trees).

•

Depreciation on plant and machinery used to develop land or to plant or maintain trees.

•

Fertiliser.

•

The construction to or on the land of access tracks that are constructed for a specific operational purpose and used for no longer than 12 months after construction.

•

The cost of standing timber lost or destroyed.

Limitation of Tax Losses from Farming

There is no limitation regarding the offset of farming losses against other income.

484

CALCULATING TAXABLE INCOME - HORTICULTURE Horticultural activities are regarded as farming for tax purposes, so the general provisions relating to farming apply. Readers should therefore familiarise themselves with the farming provisions. However, the following provisions relate specifically to horticulture. Purchase of land, including conveyancing fees, is capital expenditure and is not deductible. However, legal fees incurred in arranging finance to purchase the land, or in arranging to lease the land, will be tax deductible. Buildings are capital expenditure and are subject to depreciation allowances as for a farm. Expenditure on land improvements and development is subject to the same rules as for farming. Listed Horticultural Plants A listed horticultural plant is defined as a horticultural plant, tree, vine, bush, cane or similar plant that is cultivated on land and is listed in the Commissioner’s determination. The term does not include trees planted for the purposes of timber production, ornamental trees, or plants or vines planted for wine production. The following rules apply to listed horticultural plants: •

Expenditure on the acquisition and planting of listed plants is to be amortised using the diminishing value method at the rate determined by Inland Revenue, plus a 20% loading. The rate of amortisation reflects that particular plants useful life

•

A deduction is allowed for expenditure on replacement plantings (including grafting’s) to a maximum of 15% of the planting in any consecutive 3-year period with a maximum of 7.5% of the planting in any one year. An immediate deduction is allowable for the unamortised cost of any plant that ceases to exist or ceases to be used to derive income provided the taxpayer has not claimed a deduction for replacing the plant.

•

485

Non-Listed Horticultural Plants Non-listed horticultural plants are horticultural plants, trees, vines, bushes, canes or similar plants that are not ‘listed horticultural plants’. General provisions for non-listed plants include: • • • •

the initial cost of a plant and the cost of planting are to be capitalised if the lifespan is greater than one year The full cost of any subsequent replanting is regarded as replacement and is fully deductible in the year of expenditure A depreciation deduction can be claimed for non-listed horticultural plants under the development expenditure provisions The replacement crop and the cost of planting, as part of a crop rotation programme, is deductible in the year of expenditure provided there is no increase in the area under cultivation.

Recurring annual costs during the period between establishment and the production of the first crop are tax deductible when incurred notwithstanding that they are incurred to earn profits in future years. For example, an orchardist would be entitled to deduct expenditure on cultivation, pruning, spraying, rates, insurance, depreciation, etc. in the year the expenditure is incurred. Hail Damage - Compensation payments received by orchardists for hail damage made to fill a gap in the profits are assessable income in the year received. Bird Netting Used by Grape Growers – The cost of bird netting used by wine growers to protect ripening grapes from birds is deductible if the netting in question only lasts for one year and the cost of the netting is less than $12,000. Otherwise it must be capitalised and depreciated at 25% SL or 33% DV. Valuation of Hives – Ordinary commercial beekeeper hives are a capital asset and may be depreciated. Bees are non-specified livestock. Growing crops of fruit, vegetables etc. are a capital asset and are only regarded as trading stock when they are harvested or severed from the ground. Unharvested potatoes may be valued as inventory provided the taxpayer consistently follows this practice.

486

Plant variety rights Plant variety rights are defined to mean “proprietary rights granted for a plant variety under the Plant Variety Rights Act 1987 or similar rights given similar protection under the laws of a country or territory other than New Zealand”. Plant variety rights are included within the definition of intangible depreciable property and an annual deduction for depreciation is allowed to be claimed after the plant variety right is given provisional protection. The “royalty” definition has also been amended to include a reference to plant variety rights.

Using Discounted Selling Price to Value Nursery Stock Nursery growers use an industry-wide category approach in applying the Discounted Selling Price (DSP) method to value their nursery stock. DSP is a low compliance cost method of valuing trading stock available to taxpayers with small turnover and some retailers. Most nursery growers should be eligible to use DSP. Nursery plants are divided into five categories. The DSP of mature plants in each category are calculated by multiplying the selling price of the plant by the DSP value. The DSP values have been determined by surveying taxpayers within the industry.

Type of Stock

DSP value

Bedding plants

58%

House plants and roses

55%

Liners/plugs

52%

Shrubs and perennials

48%

Trees

42%

Example A nursery has 500 mature rose plants on hand at balance date. The nursery sells their mature roses to a retailer for $15 each. The value of that stock for trading purposes is $4,125 (500 plants x $15 x 55%).

487

Immature Plants The DSP of immature plants is calculated by multiplying the DSP of a mature plant by a ratio of the whole years of completed growth to the number of whole years the plant takes to reach maturity. Whole years have been used in the ratio to minimise compliance costs. The fact that most nursery plants are propagated and sold within a 12-month cycle, and balance dates tend to be at times when stock at hand is at its lowest, should prevent significant numbers of plants being valued at nil for trading stock purposes despite the use of whole years in the calculation.

Example Another nursery has 500 12-month-old flax plants and 300 24-month-old flax plants on hand at balance date. The flax plants take three years to mature and sell for $10 each.

The value for the purposes of the trading stock rules of the 1-year-old plants would be $800 (500 plants x $10 x 48% x 1/3); and the 2-year plants would be $960 (300 plants x $10 x 48% x 2/3).

Over-mature plants The value of plants past their prime, or whose value drops is calculated by multiplying their revised market value by the DSP value. The revised market value is the price at which the grower expects to sell a plant in that condition. The principle underlying this is that because the cost of scrapping plants is very low, the decision to retain over-mature stock must necessarily anticipate an economic return on the stock. Revising down the market value to the anticipated sale price of such stock is, however, appropriate. On the other hand, plants that are scrapped are effectively no longer part of a grower’s business and therefore they should not have any value as trading stock. The particular treatments proposed for different circumstances are illustrated in the following table.

488

Circumstance

Treatment

The market selling value drops for a particular stock item, or there is no demand for the item, and the stock is scrapped

Nil value

The market selling value drops for a particular stock item, or there is no demand but stock is not scrapped

DSP based on revised market value

Plant is damaged and left in a “bargain area”

DSP based on revised market value

Plant is irrecoverably damaged and is scrapped

Nil value

Plant is over-mature and is scrapped

Nil value

Plant is over-mature and is not scrapped

DSP based on revised market value

Example A third nursery business has 400 mature but frost-damaged Kahikatea plants at the back of its nursery. Mature plants in prime condition are sold for $30 each. The frost-damaged items are being offered for sale at $20. The value of these plants for trading stock purposes is $3,360 (400 plants x $20 x 42%).

Questions Will all growers eligible to use DSP have to use the industry standards? Nursery growers who prefer to calculate their own discounted selling prices will still be eligible to do so. They will need to keep records that justify their valuations.

How should large growers value their stock? The DSP method is not available to all taxpayers. These taxpayers will have to value their stock at cost (using a cost valuation method) or at market selling value.

How will plants in the ground be valued? Plants in the ground are part of the land in which they grow and are thus not trading stock. On the other hand, once they are lifted and ready for sale they become trading stock and any such plants on hand at balance date will be subject to the trading stock rules and will need to be valued. Horticulturists qualify for the Income Equalisation Scheme

489

CALCULATING TAXABLE INCOME - FISHING INDUSTRY The following provisions relate specifically to the fishing industry. In general ‘fish’ includes shellfish and crustaceans.

Fishing Quotas A Transferable Term Fishing Quota (TTQ) [which has a term life of 25 years] is regarded as a capital asset so that the purchase price is not an allowable deduction for the purchaser and the sale proceeds are not assessable in the hands of the seller. However, a TTQ is regarded as depreciable intangible property so an allowable deduction for depreciation arises. Note that profits from the sale of quota shares may be gross income of the seller where the seller is either in the business of dealing in them or if the quota shares have been acquired for the purpose of selling or otherwise disposing of them. A lump sum paid to the Crown to lease a quota (usually for a term of less than 12 months) and the resource rental payable under the lease are revenue payments and therefore deductible.

Income When valuing a catch, the most practical method is the market value method. As the payout to the skipper and the crew is based on the proceeds of the catch, using the auction price of the day is the most equitable and simplest method.

Deductible expenditure The range of deductible expenditure is determined by the business activity carried on by the taxpayer. In general, an ‘aquacultural business’ refers to freshwater fish farming, mussel farming, rock oyster farming, scallop farming, and sea-cage salmon farming. As with growing crops, unharvested mussels, oysters, etc, do not have a value for closing stock purposes. Once harvested, any produce on hand at balance date would usually be valued on a market value basis.

490

Depreciation deductions Taxpayers carrying on an aquaculture business [see above] may claim depreciation on specified capital expenditures at the rates set out in Schedule 20 on the diminished value of the asset. There is no deduction allowed in the income year on which the taxpayer ceases to carry on the business. The owner of the improvements specified in the legislation may claim a deduction for development expenses incurred either by the taxpayer or by any other person - this allows a deduction for expenses incurred by a previous owner. However, a current lessee may not claim a deduction if the expenditure was incurred by a previous lessee or owner. Where the taxpayer does not own the improvement, the deduction applies only to expenditures incurred by that taxpayer. If an aquaculture improvement is destroyed or irreparably damaged and made useless for the purposes of deriving income, a deduction may be available for the diminished value of the improvements.

Repairs to fishing boats Repairs and maintenance are treated as normal operating expenses. However, expenditure incurred in making repairs or alterations to the hull, equipment or machinery of any fishing boat as is required by Part 10 of the Maritime Transport Act 1994 may be spread over a five-year period, the year of expenditure and the four succeeding years. If the taxpayer ceases to carry on the fishing business before the end of that five-year period, any expenditure not already deducted may be deducted in the year when the fishing business ceased or allocated equally over the year incurred and the subsequent years in which the business is carried on. To take advantage of the spreading provision, the fishing boat must have been used wholly for the purposes of the fishing business.

491

Fishing gear The purchase of fishing gear (e.g. nets, floats, lines, sweeps) is generally treated as capital expenditure that can be depreciated in accordance with the rates set by Inland Revenue. Second-hand goods credit The Commissioner has released a number of public binding rulings on whether or not a GST-registered person can claim a second-hand GST input tax credit on the purchase of a fishing quota, a marine farming lease, a marine farming licence or a coastal permit for the principal purpose of making taxable supplies. Briefly, the rulings provide as follows: •

No second-hand input tax credit may be claimed for the purchase of fishing quota (BR Pub 03/07).

•

A second-hand input tax credit may be claimed for the purchase of a marine farming lease or licence if the following criteria are met (BR Pub 03/08 and BR Pub 03/09, respectively: o the marine farming lease or licence defines the area subject to the lease by means of a legal description giving an area in hectares (or equivalent) and its position on a survey plan; o the legal effect of the marine farming lease or licence is that the seabed is not excluded from the area leased or licenced (BR Pub 03/08); and o the vendor used the marine farming lease or licence to carry on the marine farming activity specified in the lease or licence; o the marine farming lease or licence is situated in New Zealand at the time of supply; o the purchaser maintains sufficient records as required under the GST legislation; and o the vendor and purchaser are not associated persons; No second-hand input tax credit may be claimed for the purchase of a marine farming permit in conjunction with either a coastal permit or certificate of compliance (BR Pub 03/10). A coastal permit or certificate of compliance is not a “good” for GST purposes and therefore also cannot be classified as “second hand goods” for GST purposes. A purchaser of a coastal permit or certificate of compliance will not be entitled to deduct input tax in respect of the supply of the coastal permit or certificate of compliance (BR 09/05).

•

Note: Marine farming leases and licences are deemed to be coastal permits due to s67J of the Fisheries Act 1983 being repealed.

492

Income Equalisation Scheme Taxpayers engaged in the business of fishing are able to make deposits under the income equalisation scheme, and for this purpose ‘fishing’ includes rock oyster farming, mussel farming, and freshwater fish farming.

493

DISPOSITIONS OF RELATIONSHIP PROPERTY One partner may transfer relationship property to the other partner under the Property (Relationships) Act 1976 (as amended) without giving rise to a subsequent liability for income tax. The term “relationship agreement” now extends to agreements between de facto and same sex couples. The legislation basically allows assets to be transferred at book values rather than market values. In essence, the recipient of the relationship property is placed in the same position as the person who made the transfer.

Legislation of relevance to the agricultural sector regarding relationship transfers includes the following: •

Transfers of land are deemed to be at the original purchase price which the taxpayer paid for the land. No profit on sale needs to be included as part of income.

•

Transfers of land with growing timber on it are regarded as a sale of timber, but may be transferred at cost price.

•

Livestock is to be transferred at the same value as it appears in the books of the transferor.

•

The rights of ownership of an asset will accompany the asset if it is transferred under a relationship agreement e.g. depreciation, recovery of depreciation upon disposal, etc.

494

FRINGE BENEFIT TAX Fringe benefit tax (FBT) is a tax paid by employers on non-cash benefits that have been provided to their employees. For example, an employer who provides an employee with a company car, low interest loan or other benefits may be required to pay FBT.

General Provisions This system allows employers to choose to pay FBT either at 49.25% or at a rate based on the remuneration paid to the employee. Current rates are available on http://www.ird.govt.nz/fringe-benefit-tax/fbt-tax-rates/ FBT is payable on a quarterly, or on an annual basis. Employers are eligible to pay FBT on an annual basis where their gross tax deductions or specified superannuation deductions in the preceding income year did not exceed $1m or where they were not employers in the preceding income year. For each FBT period the employer must complete a return form setting out details of benefits granted and the tax payable, and send the return with payment to the Inland Revenue Department by the 20th of the month following the end of each period, except the March period which is due 31 May. FBT is levied on all employers, irrespective of whether they are taxable entities or are in a tax-loss situation. It is deductible for income tax purposes. The tax is payable by every employer who directly or indirectly grants a fringe benefit to an employee (which includes a former employee or a prospective employee). Expenditures incurred in providing fringe benefits must be business-related or incurred in gaining assessable income in order to be tax-deductible i.e. expenditures must follow the normal rules in order to determine if they are tax-deductible.

495

Definition of 'Fringe Benefit'

A fringe benefit is any benefit received by an employee which consists of: 1.

The private use, or the availability for private use, of an employer provided motor vehicle with a gross laden weight of less than 3,500 kg.

Low interest loans. A loan is deemed to be a low interest loan because the rate of interest charged is less than the “prescribed rate of interest” which at June 2018 was set at 5.77% by IRD. The prescribed rate is reviewed regularly and should reflect commercial rates of interest. Current account balances owed to a company by a shareholder-employee can also represent low interest loans and become subject to FBT. The reason for the low interest rate is because the recipient is an employee. Loans granted because of a family relationship e.g. father to son, would not be deemed to be a fringe benefit to the employee. Loans made to employees under an employee share purchase scheme are excluded.

Subsidised transport where the employer is a public carrier.

Other benefits, such as free, subsidised or discounted goods and services, e.g. free milk, meat, firewood etc. provided to a farm worker. Other fringe benefits, for instance, could be life insurance or accident insurance premiums paid on behalf of an employee or family, or school fees for an employee's children. There are two general exemptions for unclassified benefits in this category: 1.

Where the value of fringe benefits supplied by the employer do not exceed $22,500 per annum or $300 per employee per quarter ($1,200 per annum for annual payers).

There is no fringe benefit where an employee purchases an item from the employer at below cost price where the normal retail price does not exceed $200 and: (a)

(b)

For sale goods: ◊

The difference in price is made up of the discount to the public plus the usual staff discount, and

◊

The price charged to the employee is no less than the smaller of 95% of cost or 95% of the price to the public, and

◊

A reasonable quantity of these sale goods are available to the public.

For non-sale goods, the price is not less than 95% of the retail price.

496

Benefits which are specifically excluded from the FBT regime include: •

Benefits provided and enjoyed on the business premises e.g. sports and recreational facilities, dining facilities, etc.

•

Amounts already assessable as income.

•

Amounts exempt from income tax.

•

Benefits provided in the place of allowances which would be regarded as exempt income.

•

Transportation in a vehicle not designed for the carriage of passengers.

•

Benefits arising from the discounted price of shares acquired by employees under a share purchase scheme.

•

Any benefit that is entertainment except where the employee may choose when to receive the benefit and other than in the course of employment duties.

•

Club subscriptions paid by employer, provided it would be ordinarily tax-deductible to the employer.

•

Board, lodging and free/subsidised accommodation (as these are already assessable as income).

Value of Fringe Benefits

The rules for calculating the value of fringe benefits are set out in the Income Tax Act.

Motor Vehicles A fringe benefit will arise where an employer makes available to an employee for his or her private use, an employer owned, leased or rented motor vehicle. The fringe benefit will arise if the vehicle is available for private use even if the employee does not in fact use the vehicle. From the 2018 income year some close companies (those with 5 or fewer natural person shareholders) can elect to opt out of the FBT rules. They must have up to 2 vehicles available for private use by shareholder employees, and provide no further benefits. However adjustments will be required for any private use At the option of the employer, the calculation of the motor vehicle fringe benefit can be based on either the cost or the tax depreciated book value of the motor vehicle if the vehicle is owned or leased for 5 years or more, and the actual cost price is to be used when the vehicle is owned or leased for less than 5 years. The tax book value option will be useful to employers who own vehicles for more than five years. Under this option, there will be a minimum tax book value of $8,333. Calculation of the value of the motor vehicle benefit – vehicle owned

497

Three bases exist for determining the fringe benefit value of a motor vehicle where the vehicle is owned by the person making it available for private use.

1. Quarterly basis If a motor vehicle is owned by the person making it available, the value for each quarter during which the vehicle is available for private use is 5% of the GST-inclusive cost price or 9% of the GST-inclusive tax value of the vehicle to the owner. To work out the value of the fringe benefit, the following formula is used: days x Schedule 5 amount 90 where: “days” is the lesser of 90 and the number of days (including part of a day) during the quarter in which the vehicle was made available for private use by the employee (see next page), and: “Schedule 5 amount” is the amount calculated under Schedule 5 cl 1 (a) of the Act, being 5% of the GST-inclusive cost price or 9% of the GST-inclusive tax value of the vehicle (or 5.75% of the GST-exclusive cost price or 10.35% of the GST-exclusive tax value).

In calculating “days”, the number of days that:



there was no availability for private use by an employee



the vehicle was used for an emergency call



the vehicle was used on a business trip away from the employee’s home, and



the vehicle was used as a work related vehicle

must be subtracted from the number of days in the quarter. Simply stating 90 days for each quarter in this part of the formula is not correct.

Example: During the quarter ending 31 March 2023, Mr TP had one of his employer’s motor vehicles available for private use. The vehicle cost $28,500 (GST-inclusive) of which Mr TP paid $5,000. During the quarter, the vehicle was in the workshop for one week, was used to make two emergency calls and was taken away on a selling trip for 10 days. Mr TP made a contribution of $20 per week to the private running costs. Mr TP’s employer uses the cost price basis to calculate FBT on the vehicle and chooses to pay FBT in this quarter at 63.93%. The number of days a fringe benefit was conferred is –

498

Days of the quarter

less no availability for private use

less emergency calls

less business trip days

10 19 71

The gross value of the benefit is calculated as follow -

x $28,500 x 5% = $1,124

That value must then be adjusted for Mr TP’s contribution and ownership reduction as follows $ Quarterly taxable value

$ 1,124

less contributions (12 wks x $20)

240

less ownership reductions ($5,000 x 0.025)

125 365

Net quarterly taxable value

$ 759

The fringe benefit tax payable for the quarter is 63.93% of the net quarterly taxable value, being – $759 x 63.93% = $485.23

499

2. Annual basis A benefit can be subject to FBT on an annual basis (i.e. for a year commencing 1 April and ending 31 March) under s RD 29(3). Where this occurs, the employer will determine the annual value of the fringe benefit by applying the quarterly formula provided as above to each of the four quarters.

3. Income-year basis Fringe benefit tax can also be paid on an income-year basis. This has particular application to shareholder-employees and for a year (which may be an accounting year). If this occurs, the fringe benefit will be calculated over the entire year rather than as a total of four quarters. The following formula is used: days x Schedule 5 amount 365 where: “days” is the number of days in the income year in which the vehicle is available for private use reduced by the number of days in which the motor vehicle is a work-related vehicle, and “Schedule 5 amount” is the amount calculated under Schedule 5, being 20% of the GST-inclusive cost price or 23% of the GST-exclusive cost price or 36% of the GSTinclusive tax value or 41.40% of the GST-exclusive tax value of the motor vehicle.

If a car is made available to an employee, the following can be regarded as days when the vehicle was not available for private use: •

Any day when the employee used the vehicle to leave home to attend an ‘emergency call’ (defined to be between 6 pm and 6 am on a working weekday, or on any Saturday, Sunday or public holiday, and involves the protection of plant and machinery or health and safety of the employer or a customer of the employer).

•

Any day when an employee uses the vehicle for regular business-related trips of at least 24 hours duration.

•

Any day on which the vehicle is regarded as a ‘work related vehicle’ (defined to be a vehicle, other than a motor car designed for the carriage of passengers, with gross laden weight less than 3,500 kg and which has the employer's name or logo permanently affixed to its exterior).

Note: Vehicles with a fold-down rear seat may be regarded as a work-related vehicle only if the rear seat is removed or permanently folded down, e.g. welded in the folded down position, and the employer’s name is prominently and permanently affixed to the vehicle.

500

Taxable value = Value of Benefit - Employee Contributions Employee contributions towards the cost of private use of the vehicle may take the form of: •

Payment of all or part of the running costs.

•

Reimbursing employer for the use of the vehicle.

•

Where the vehicle is partly owned by the employee, 2.5% (of the GST inclusive cost or 2.875% of the GST exclusive cost) of the cost price of the employee's share may be deducted from the value of the benefit calculated as above.

Low Interest Loans The value of a fringe benefit provided by way of a low interest loan is calculated by deducting the interest actually payable by the employee from the interest calculated at the prescribed rate of interest or at market rates on the daily balance of the outstanding loan. Recent interest rates, as prescribed by Regulation, are: Period

Rate

From 1 July 2022

4.78

From 1 July 2020 to 30 June 2022

4.50

1 October 2019 to 30 June 2020

5.26

1 July 2016 to 30 September 2019

5.77

1 October 2015 to 30 June 2016

5.99

1 July 2015 to 30 September 2015

6.22

1 October 2014 to 30 June 2015

6.70

Subsidised Transport This category applies to employers who carry on a business that includes transportation of the general public for hire or reward. The taxable value is the greater of: 25% of highest cost to public for that class of travel, or the amount paid by the employee.

Other Benefits Taxable value is the value of benefit minus amount paid by employee.

501

Free or Discounted Goods •

Where the goods are manufactured by the employer, the value of the benefit is the lowest price at which identical goods are sold on an arm's length basis.

•

Where the goods are purchased by the employer, the value of the benefit is the cost to the employer.

Note: The value of the benefit is the lower of the cost as determined above or the market value on the day of supply to the employee. If the value cannot be determined by the methods above, then the value is set at normal market price or such amount as the Commissioner may decide.

Free or Discounted Services The value of the benefit is, in general, the normal price charged for the services to members of the public.

502

Calculation of Fringe Benefit Tax (Example from Tax Information Bulletin Vol. 12 No. 11 Nov 2000 – adjusted due to legislative changes)

Detailed example of how the multi-rate FBT rules will apply JM Ltd is a close company owned and controlled by the CEO and spouse. The CEO is a major shareholder of the company as he or she owns 40% of the shares of the company. The following schedule shows the fringe benefits provided to the employees of the company on a quarterly basis. The same benefits are provided each quarter.

Fringe benefits received by employees (quarterly filing employer) Taxable value ($) of fringe benefits received per quarter Cash remunera tion for year $ Motor vehicles

Foreign superannuati on scheme1

Medical insurance2

Discounted goods3

$80,000 (Includes dividends received of $5,000 from JM Ltd)

$1,800*

$750

$200

$100

Employee 1

$50,000

$1,800*

$750

$200

$100

Employee 2

$40,000

$200

$100

Employee 3

$37,500

$200

$100

$800

$400

Total value of all benefits

$6,300

CEO

Total benefit

$3,600

$1,500

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Based on a $36,000 vehicle used every day in the quarter (90 days). 1

The contributions to a foreign superannuation scheme are covered by section CX 13 and therefore is a category of benefits.

The medical insurance premiums are covered by section CX 16 and therefore is a category of benefits.

The discounted goods are not included in sections CX 6 to CX 16 and therefore are unclassified fringe benefits.

FBT obligations for the first three quarters of the year JM Ltd would aggregate the taxable value of all fringe benefits provided in a quarter and then apply either the 49.25% or 63.93% single rate to this quarter. The company elects the 49.25% rate. The FBT liability for quarters 1 to 3 is as follows: Quarter Quarter 1 Quarter 2 Quarter 3 Total

Taxable value of benefits $6,300 $6,300 $6,300

FBT rate

FBT payable

49.25% 49.25% 49.25%

$3102.75 $3102.75 $3102.75 $9308.25

Due date for return and payment 20 July 20 October 20 January

As JM Ltd has chosen to pay FBT at the 49.25% rate in any of the first three quarters of the year, it must undertake the multi-rate calculation for the final quarter of the year. If JM Ltd elect to attribute these benefits ( note: motor vehicle benefits, low interest loans and all other benefits exceeding prescribed thresholds must be attributed), it could elect only to attribute the medical insurance benefits, the benefits of other kind category or both. If it decided to attribute all these benefits, the annual taxable value of attributed fringe benefits would be:

Employee CEO Employee 1 Employee 2 Employee 3

Annual taxable value ($) of attributed fringe benefits received per category Motor Superannuation Medical Benefits of Total vehicles insurance other kind $7,200 $3,000 $800 $400 $11,400 $7,200 $3,000 $800 $400 $11,400 $800 $400 $1,200 $800 $400 $1,200

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Calculation of FBT liability for the final quarter Example 1 In this example of the calculation, JM Ltd attributes only the benefits that must be attributed to the employees who received them, and the other benefits are treated as nonattributed benefits and pooled. Step 1: Calculate the fringe benefit-inclusive remuneration for each employee who received attributed benefits. The calculation is the cash remuneration minus the tax on the cash remuneration plus the annual value of fringe benefits attributed.

Cash remuneration

Less tax on the cash remuneration

Plus annual value of fringe benefits attributed

Equals fringe benefit inclusive remuneration

CEO

$80,000

$17,3201

$10,200

$72,880

Employee 1

$50,000

$8,0202

$10,200

$52,180

Employee

1 Tax on cash remuneration for CEO is as follows: ($14,000 * 10.50%) + (($48,000 – 14,001) * 17.5%) + (($70,000 – 48,001) * 30%) + ((80,000 – 70,001) * 33%) = $17,320. 2 Tax on cash remuneration for employee 1 is as follows: ($14,000 * 10.5%) + (($48,000 – 14,001) * 17.5%) + ((50,000 – 48,001) * 30%) = $8,020.

Step 2: Calculate the tax on the fringe benefit-inclusive remuneration from step 1 for each employee. Schedule 2, Part B is the tax rates used for this calculation. Employee

Tax on fringe benefit-inclusive remuneration

CEO

$22,342.853

Employee 1

$12,390.924

3 Tax on fringe benefit-inclusive remuneration for CEO is as follows: ($12,530 * 11.73%) + (($40,580 – 12,531) * 21.21%) + (($55,980 – 40,581) *42.86%) + (($72,880 – 55,981) * 49.25%) = $22,342.85. 4 Tax on fringe benefit-inclusive remuneration for employee 1 is as follows: ($12,530 * 11.73%) + (($40,580 – 12,531) * 21.21%) + (($52,180 – 40,581) * 42.86%) = $12,390.92.

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Step 3: Calculate the FBT liability of the taxable value of attributed benefits. This calculation is the tax on the fringe benefit-inclusive remuneration (step 2) less the tax calculated on the cash remuneration in step 1.

Employee

Tax on fringe benefit Inclusive remuneration

Less tax on the cash Remuneration

Equals FBT liability on attributed benefits

CEO

$22,342.85

$17,320

$5,022.85

Employee1

$12,390.92

$8,020

$4370.92

Total

$9,393.77

Step 4: Calculate the FBT on the non-attributed benefits. This amount is calculated by applying the 63.93% single rate or the 49.25% rate to the respective pools depending on whether the recipient of the benefit is a major shareholder-employee or an associate.

Pool Pool 1 (major shareholder-employee a recipient) Pool 2 (major shareholderemployee not a recipient) Total

Value of nonattributed benefits $1,200

FBT rate 63.93%

FBT liability $767.16

$3,600

49.25%

$1,773 $2,540.16

Step 5: Calculate the final FBT liability for the final quarter. This amount is the total of FBT liability calculated in step 3 (FBT on attributed benefits) plus the FBT liability calculated in step 4 (FBT on non-attributed benefits) less the FBT assessed in the first three quarters of the year.

FBT liability calculated in step 3 (FBT on attributed benefits)

Plus the FBT liability calculated in step 4 (FBT on non-attributed benefits)

Less the FBT assessed in the first three quarters of the year

FBT liability for the final quarter

$9,393.77

$2,540.16

$9,308.25

$2,625.68

JM Ltd’s FBT liability for the final quarter is $2625.68. The tax and the return are due 31 May following the end of the quarter.

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GOODS AND SERVICES TAX (GST) Overview GST is a broad based tax on consumption, levied on virtually all goods and services (except financial services, domestic accommodation employment contracts and a few other categories) supplied in New Zealand. Exported goods and services are taxable at a rate of zero per cent. GST is imposed on all goods and services imported into New Zealand. The rate of GST is 15%. Only persons who conduct a ‘taxable activity’ or who intend to carry on a taxable activity are required to register for GST purposes, and are liable to charge and account for GST. To arrive at the net amount of GST payable to the IRD, businesses (‘registered persons’) must deduct the GST which they paid on their inputs from the GST charged on their outputs. Thus, although GST is charged at each stage of production and distribution, it is only the final consumer who actually bears the full cost of the GST charged. Registration Any person/organisation whose gross turnover from taxable activities is over $60,000 p.a. must register, and charge and account for GST. Registration is optional for traders having an expected taxable turnover of less than $60,000 per year. A taxable activity is any activity which involves the regular supply of goods or services to any other person for a consideration (payment). This is a wide definition which includes businesses, clubs, public and local authorities; but specifically excludes private recreational pursuits or hobbies, employment income, the directorship of a company (treated as employment), and the making of exempt supplies.

The following are exempt from GST: •

The supply of financial services;

•

The supply of fine metal;

•

The supply of donated goods/services by a non-profit body;

•

The supply of residential accommodation in a dwelling; and

•

The sale of rental dwellings (which have been used for rental accommodation for a period of five or more years).

•

The supply of residential accommodation in a commercial dwelling (e.g. a hotel or hall of residence).

•

Penalty imposed on unpaid rates.

•

Penalty or default interest imposed under a contract for the supply of goods and services.

•

A postponement fee for a rates payment that relates to local authority financial costs. 507

Certain supplies of goods and services are zero-rated. This means that the supply is taxable, but the rate of GST is zero.

Zero-rating occurs if: •

The goods are exported or are supplied outside New Zealand;

•

A taxable activity is sold as a going concern to a registered person, i.e. a business or property is sold to another registered person who can continue operating without interruption;

•

The services were performed outside New Zealand;

•

From 1 January 2005, supplies of business to business financial services.

•

Contribution of land made as a condition of resource consent or as a development contribution.

•

The goods supplied consist of newly-refined precious metal.

•

Certain supplies in respect of which excise duty and petroleum tax are payable.

•

Supply of certain telecommunication services.

•

Supply of Land and associated buildings.

Returns and Payment of GST Registered persons must furnish GST returns to the IRD. The standard period for each return is two months. Alternatively, taxpayers may choose to make monthly returns, or six monthly returns (but only if the value of taxable supplies does not exceed $500,000 in the previous 12 months). Businesses with annual turnover greater than $24 million must complete monthly returns. The GST return, which details the net amount of GST payable to the IRD (or to be refunded, as the case may be) is due by the 28th of the month following your taxable period. Where the GST payment and return would normally be due on the 28th December, it is due on the 15th of January. Where it is normally due on the 28th April, it is due on the 7th of May. There is a penalty for late payment of additional tax to pay. GST unpaid after the due date attracts additional tax at the rate of 5% charged in two stages. An initial 1% is charged on the day after due date and the remaining 4% is charged if GST remains outstanding seven days after due date. Payments must be received by IRD on or before the due date. GST is normally calculated on either an invoice (accrual) basis or a payments basis. An invoice basis means that GST on Sales (outputs) must be included in the GST return covering the month in which the sale is made. GST can be claimed on purchases (inputs) in the same month as they take place. Under the payments (cash) basis, GST on outputs

508

is only due if cash has been received. GST inputs can only be included if they have been paid for. This basis may be adopted by: •

Local authorities and non-profit bodies

•

Registered persons whose total taxable supplies are less than $2 million.

•

Persons who satisfy the Commissioner that it would be appropriate for them to use the payments basis because of the nature, volume and value of their taxable supplies.

A further alternative, the hybrid basis, allows output tax to be calculated on an invoice basis and input tax on a payments basis.

Calculating Output and Input Tax Output tax is the GST charged in respect of the supply of goods and services made by the registered person. Output tax can be calculated using the ‘tax fraction’ method. The tax fraction is the amount of GST included in the total sale price. It is calculated by multiplying sales by 3 then dividing by 23 (for a GST rate at 15%). The tax fraction is illustrated in this example: Price including GST = $115 Amount of GST = GST Inclusive amount x 3/23 = $115 * 3/23 = $15 Alternatively, the accounting system may separately accumulate the total GST. Input tax is the GST charged in respect of goods and services supplied to the registered person, provided that tax invoices have been obtained from the supplier. Input tax also includes GST paid on imports. Expenditure on fixed assets and other long term items is included, and GST inputs on these items should also be claimed in the GST return. Other adjustments for specific circumstances are also required (e.g. bad debts, business use of private assets, private use of business assets, fringe benefits). Example Calculation The GST payable by (or refundable to) a registered person for a return period is calculated as in the following example:

509

Output Tax: Sales: Total taxable supplies for the period, including GST

$11,000

less Zero rated supplies (e.g. direct export sales)

GST Content: x 3/23

2,000 $9,000 1,174

Plus Adjustments (e.g. GST on goods used privately) Total Output tax

200 $1,374

Input Tax: Purchases/expenses (business related): Total for which tax invoices are held, including GST

$5,400

GST Content x 3/23

704

Plus adjustments (e.g. business use of private vehicle) Total Input tax

50 $754

GST PAYABLE (Output Tax less Input Tax)

$620

(The above example follows the format used in a Goods and Services Tax Return.) Note: If output tax exceeds the input tax, the difference is paid to the IRD: if output tax is less than the input tax, the difference is refunded to the taxpayer, or it may be used to offset other amounts due to the IRD.

510

Recording GST Recording of GST is normally part of the accounting system for a business. Where a cashbook is used, a GST column is normally included. The 3/23 tax fraction on items that include GST is analysed into this column. At the end of the GST period, the column total can be transferred direct to the GST return (for businesses registered under ‘payments’ basis for recording GST).

Businesses using the invoice basis will need to include amounts that have not yet been paid or received, in their GST returns. This situation can be dealt with in a cash book-based system by using a separate ‘GST Accrual’ book. At the end of the GST period, all invoices on hand which have not been paid should be written into the book. The amount of GST included should be added to the amount shown in the cash book and included in the GST return. At the same time, the total from the GST accruals book at the previous return date should be deducted (since the invoices included will now be recorded, either as payments or in the GST accruals book again).

For example: plus

less

GST inputs from cash book for Jan. and Feb. GST inputs included in GST accruals book for Feb. (invoices on hand but not yet paid at 28 Feb.)

$1,234.56 502.00 $1,736.56

GST inputs included in GST accruals book for Dec. (invoices which were on hand but were not yet paid as at 31 Dec) accounted for in the previous GST return. $321.05 GST inputs on an invoice basis

$1,415.51

Businesses using more sophisticated accounting systems will generally record GST inputs and outputs in separate ledger clearing accounts. The use of accounting software is being widely encouraged to calculate GST, particularly in light of the changes to the calculation of provisional tax which will encourage greater use of accounting software for those calculations.

511

Tax Invoices

A ‘tax invoice’ must be held before GST paid on inputs can be claimed as a deduction. The tax invoice is a document which contains details of the items supplied namely: •

The words ‘tax invoice’ in a prominent place;

•

The name, and registration number of the supplier;

•

The name, and address of recipient;

•

The date of issue of the tax invoice;

•

A description of the goods and services supplied;

•

The quantity/volume of the goods and services supplied;

•

Either: the value excluding GST, the GST charged, and the GST-inclusive price; or the GST inclusive price and a statement that GST is included in the price.

A slightly simplified invoice may be used where the amount supplied is less than $1,000. Details required are: •

The word ‘tax invoice’;

•

Name and registration number of supplier; Name and address of the recipient of the supply;

•

Date of issue of the tax invoice;

•

A description of goods and services supplied;

•

The GST inclusive price and a statement that GST is included in the price.

No invoice is necessary if the amount supplied is less than $50. It is the responsibility of the supplier of the goods/services to issue a tax invoice. However, there is provision to allow the recipient (buyer) of such services to produce the tax invoice, provided the IRD agrees, both parties agree that the supplier will not issue the tax invoice, and that both parties receive a copy of the buyer – created tax invoice. This provision has significance for the rural sector where it is common for the buyer to create a document which evidences a sale e.g. a freezing works. Where a registered person obtains second hand goods from a non-registered person, the purchase price is deemed to include a notional amount of GST (calculated by applying the tax fraction to the price paid). “Second hand goods” does not include any animals including progeny and domestic animals, or any animals used in a business and primary produce of a farmer (wool, meat, milk).

512

The purchaser/recipient of second hand goods must maintain records detailing: •

Name and address of supplier;

•

Date of acquisition of the goods;

•

Description of the goods;

•

Quantity or volume of goods;

•

Price paid.

Note: The Government are introducing new laws regarding taxable supply information (TSI) that will take effect on 1 April 2023. A summary of the current tax invoice and new requirements are outlined in the table below.

513

ACCIDENT COMPENSATION LEVY All persons who suffer injury by accident in New Zealand (and in certain cases, outside New Zealand) and who are employees or self-employed at the time of the accident, have cover under the Earners' Scheme of the Accident Compensation Act. The scheme is funded by a levy (premium) paid by employers, employees and self-employed persons. These levies are a tax-deductible expense. In 1998 the Government changed the levy rates based on a strategy of making ACC a fully funded scheme. From April 2016, employers, earners, and motor vehicle owners no longer have to pay residual ACC levies.

Components of ACC Levies Everyone who works or owns a business in New Zealand pays levies. The includes selfemployed, shareholder employees, and contractors. The ACC levies consist of three components: 1.

Earner Levy,

Work Levy, and

Work Safer Levy.

Earner levies cover accidents outside the workplace. The rate is set annually by Regulation and are classified by industry or risk categories. The amount payable is calculated on the amount paid to employees in the previous year. The current rate for the 2022/2023 year is $1.46 (GST inc) per $100. The Work Levy covers accidents inside the workplace. The rate is determined by your classification unit (CU). The levies are based on the amount paid to employees in the previous year as well as the type of industry or activity of the employer. These rates are different for every business and are based on: •

The risk of injury at work

•

Your claims history

•

Your liable income or payroll.

These rates are regularly updated and can be found in the ACC Levy Guide Book ( https://www.acc.co.nz/assets/business/2022-2023-ACC-Levy-Guidebook.pdf )

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The Work Safer Levy is collected on behalf of the Ministry of Business Innovation to support the activities of WorkSafe NZ. This is charged at a flat rate for all levy payers and is currently set at 8 cents per $100 of the amount paid to employees in the previous year. The maximum amount of earnings on which the residual claims levy and employer premium is payable in respect of one employee in the 2022/23 year is $136,544. Where a self employed person works more than an average of 30 hours per week and earns less than $42,465 (minimum income), the levy is calculated on the basis of the minimum income •

Note: The Residual Portion of the Earners Levy was removed on the 1st April 2016.

If a person earns income both from self-employment and as an employee, ACC premiums will be payable on the self-employed income. A self-employed person who is engaged in two or more self-employed activities must pay the self-employed work account levy at the highest applicable rate. ACC offers the option of ACC Coverplus Extra (CPX) for self-employed as an alternative to the standard cover option. Standard cover provides weekly compensation of 80% of what was earned in the previous year. In the event of an injury where the claim is accepted, ACC CPX allows the self-employed person to choose their level of cover, provides weekly compensation of 100% of the agreed amount, and faster settlement of the claim. This option is beneficial for self-employed persons with fluctuating income. ACC CoverPlus Extra - LLWC (Lower Level of Weekly Compensation) offers the option to pay a slightly lower CPX levy in return for reducing levels of weekly compensation being payable in the event of an injury where the claim is accepted if the business continues to generate income or there is a partial return to work.

515

TAXATION APPENDICES 2022/2023: Due Dates for the Payment of Provisional and Terminal Tax Month of Balance Date

Instalments

Terminal Tax

(optional)

(Third)

No Tax Agent

Tax Agent

(optional)

(First)

(optional)

(Secon d)

October

28 Jan

28 Mar

28 May

28 July

28 Sep

28 Nov

Sep

Nov

November

28 Feb

7 May

28 June

28 Aug

28 Oct

15 Jan

Oct

Dec

December

28 Mar

28 May

28 Jul

28 Sep

28 Nov

28 Jan

Nov

Jan

January

7 May

28 Jun

28 Aug

28 Oct

15 Jan

28 Feb

Dec

Feb

February

28 May

28 Jul

28 Sep

28 Nov

28 Jan

28 Mar

Feb

Apr

March

28 Jun

28 Aug

28 Oct

15 Jan

28 Feb

7 May

Feb

Apr

April

28 Jul

28 Sep

28 Nov

28 Jan

28 Mar

28 May

Feb

Apr

May

28 Aug

28 Oct

15 Jan

28 Feb

7 May

28 Jun

Feb

Apr

June

28 Sep

28 Nov

28 Jan

28 Mar

28 May

28 Jul

Feb

Apr

July

28 Oct

15 Jan

28 Feb

7 May

28 Jun

28 Aug

Feb

Apr

August

28 Nov

28 Jan

28 Mar

28 May

28 Jul

28 Sep

Feb

Apr

September

15 Jan

28 Feb

7 May

28 Jun

28 Aug

28 Oct

Feb

Apr

Example: Payment Dates

A taxpayer with a 31 May balance date must pay their 2022-23 provisional tax instalments on or before 28 October 2022, 28 February 2023, and 28 June 2023. Any terminal tax for the 2021-22 tax year is due for payment on or before 7 February 2024, or if the taxpayer’s income tax return is linked to a tax agent, 7 April 2024.

516

2021/2022: Instalment Dates and Calculation Methods for Provisional Tax Method Used

Number of Instalments

Instalment Due Dates

Standard

B, D, F

Estimation

B, D, F

GST Ratio Method,

AIM (two-monthly or six-monthly GST filing)

A to F

AIM (monthly GST filing)

Every Month

GST 6 monthly filing (using either the standard or estimation method)

C and F

If a taxpayer chooses to use the GST ratio method, the taxpayer’s compulsory provisional tax payments are instalments B, D and F. Effectively, no penalties or UOMI will be imposed if provisional tax payments are not made at instalments A, C or E.

Taxpayers who are registered for GST on either a monthly or 2 monthly basis and who are not using the GST ratio method to calculate their provisional tax liability, may choose to make voluntary payments on their GST form in the months where they are not required to make provisional tax payments (instalments A, C and E).

Rates of Income Tax Individuals 2021 and Future Income Years $0 to $14,000

10.5%

$14,001 - $48,000

17.5%

$48,001 - $70,000

30.0%

Over $70,000

33.0%

Over $180,000 (From 1 April 2021)

39.0%

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Companies Domestic companies: 28% of taxable income Overseas companies: 28% of taxable income

Trusts Trustee income

33 %

Beneficiary income to: - minors less than 16 years of age at trust balance date

33%

- other beneficiaries

taxpayer’s marginal tax rate

Distribution from a non-qualifying trust

45%

Undistributed rents, interest and royalties derived by the Maori Trustee Income from Maori Authorities

17.5% 17.5%

518

Land and Aquaculture Development Expenditure Depreciation Rates Description and Rate of Depreciation Diminishing Value (%). PART A: FARMING AND AGRICULTURE (including HORTICULTURE)

(1)

(1B)

The preparation of the land for farming or agriculture, including the cultivation and grassing. The re-grassing and fertilising all types of pasture in the course of a significant capital activity that relates to a type of pasture with an estimated useful life of more than 1 year.

(2)

The draining of swamp or low-lying lands.

(3)

The construction of access roads or tracks to or on the land.

(4)

The construction of dams, stopbanks, irrigation or stream diversion channels, or other improvements for the purpose of conserving or conveying water for use on the land or for preventing or combating soil erosion, other than planting or maintaining trees, whether or not on the land, for the purpose of providing shelter to the land.

(5)

The construction of earthworks, ponds, settling tanks, or other similar improvements mainly for the purpose of the treatment of waste products in order to prevent or combat pollution of the environment.

(6)

The sinking of bores or wells for the purpose of supplying water for use on the land.

(7)

The construction of aeroplane landing strips to facilitate aerial topdressing of the land.

(8)

The planting of non-listed horticultural plants on the land.

(9)

The erection on the land of electric-power lines or telephone lines.

(10)

The construction on the land of feeding platforms, feeding yards, plunge sheep dips, or self-feeding ensilage pits.

(11)

The construction on the land of supporting frames for growing crops.

(12)

The construction on the land of structures for shelter purposes.

519

PART B: FRESHWATER FISH FARMING (1)

The drilling of water bores.

(2)

The draining of land or the excavating of sites for ponds, tanks, or races.

(3)

The construction or races, sluices, ponds, settling ponds, or tanks of impervious materials to conduct or contain waters.

(4)

The supply and installation of pipes for water reticulation.

(5)

The construction of walls, embankments, walkways, service paths, or access paths.

(6)

The construction of effluent ponds.

(7)

The supply and installation of baffles or screens for the containing or excluding of fish.

(8)

The construction of fencing on the fish farm.

PART C: MUSSEL FARMING (1)

The acquisition, preparation, and mooring of pontoons, rafts, or other

floating structures for collecting spat: (2)

(3)

The acquisition, mooring, and outfitting of moored floating platforms or longlines from which the collected spat is suspended for subsequent growth. The collecting and depositing of shell or other suitable material on the sea bed to create spatting surfaces.

20 20

PART D: ROCK OYSTER FARMING (1)

The acquisition and preparation of spatting sticks.

(2)

The construction and erection of posts, rails, or other structures for the holding of spatting sticks during spat catching and maturing.

(3)

The construction of fences (including breakwater fences).

PART E: SCALLOP FARMING (1)

The acquisition, preparation, and mooring of floating structures for collecting spat.

(2)

The acquisition, mooring, and outfitting of long-lines from which the collected spat is suspended for subsequent growth.

520

PART F: SEA-CAGE SALMON FARMING (1)

(2)

(3)

The acquisition, preparation, and mooring of pontoons, rafts, or other floating structures for securing or protecting cages or other containment vessels. The acquisition, preparation, and placing of equipment of structures, including tanks, cages, nets, or other vessels, for the containment of live salmon. The acquisition and placing of ropes and buoys used in the breeding or maturing of salmon.

20 20

PART G: FORESTRY (1)

The felling, clearing, destruction, or removal of timber, stumps, scrub, or undergrowth on the land in the preparation of the land for the planting of trees on the land.

(2)

The eradication or extermination, to enable the planting of trees on the land, of animal or vegetable pests on the land.

(3)

The destruction, to enable the planting of trees on the land, of weeds or plants detrimental to the land.

(4)

The draining of swamp or low-lying lands in the preparation of the land for the planting of trees on the land.

(5)

The construction of roads to or on the land (including any culverts or bridges necessary for the construction), when the roads are formed and wholly or mainly metalled or sealed.

(6)

(7)

(8)

The construction of roads to or on the land (including any culverts or bridges necessary for the construction), when the roads – (a)

are not access tracks to which section DP 1 (1)(h) (Expenditure of forestry business) applies, and

(b)

are either:

(i)

roads that are formed and partially metalled or sealed; or

(ii)

roads that are not metalled or sealed.

521

(9)

The sinking of bores or wells for the purpose of supplying water for use on the land.

(10)

The construction of aeroplane landing strips to facilitate aerial topdressing or disease control work or firefighting on the land.

(11)

The construction on the land of fences, including the purchase of wire or wire netting for the purpose of making new or existing fences rabbitproof.

(12)

The erection on the land of electric power lines or telephone lines.

Values for Specified Livestock National Standard Costs

Category of Livestock Sheep Rising 1 year Rising 2 year Dairy Cattle Purchased bobby calves Rising 1 year Rising 2 year Beef Cattle Rising 1 year Rising 2 year Rising 3 year male non-breeding Deer Rising 1 year Rising 2 year Goats (Meat and Fibre) Rising 1 year Rising 2 year Goats (Dairy) Rising 1 year Rising 2 year Pigs Weaners to 10 weeks of age Growing pigs 10 to 17 weeks of age

522

2019 $ 34.20 24.10

2020 $ 36.60 26.10

2021 $ 37.50 26.90

2022 $ 38.00 27.00

192.40 430.60 338.40

194.20 453.00 337.30

189.60 450.80 309.70

210.40 512.80 346.50

368.10 203.60 203.60

388.10 220.10 220.10

399.80 226.20 226.20

398.10 228.10 228.10

92.20 53.50

90.70 56.50

106.40 62.00

135.20 68.90

28.30 19.40

30.70 21.00

31.60 21.60

31.70 21.70

215.00 50.00

258.80 57.00

273.80 58.30

287.80 49.90

104.30 87.60

104.40 86.80

106.90 88.00

113.20 94.40

National Average Market Values

Category of Livestock

Sheep

2019

2020

2021

2022

Ewe hoggets

135

108

123

143

Ram and wether hoggets

125

105

119

143

Two-tooth ewes

214

177

191

224

Mixed-age ewes

190

156

174

202

Rising five-year and older ewes

164

128

153

176

Mixed-age wethers

124

105

129

147

Breeding rams

338

340

323

384

Rising one-year heifers

717

526

563

665

Rising two-year heifers

1097

888

911

1038

Mixed-age cows

1355

1090

1138

1328

Rising one-year steers and bulls

844

678

716

808

Rising two-year steers and bulls

1209

1035

1088

1242

Rising three-year and older steers and bulls

1513

1315

1391

1587

Breeding bulls

3407

2950

2894

3158

Rising one-year heifers

685

737

707

809

Rising two-year heifers

1274

1222

1291

1472

Mixed-age cows

1513

1525

1528

1697

Rising one-year steers and bulls

497

471

413

476

Rising two-year steers and bulls

901

818

762

894

Rising three-year and older steers and bulls

1246

1186

1077

1233

Beef cattle Beef breeds and beef crosses:

Dairy cattle Friesian and related breeds, Jersey and other dairy breeds:

523

Breeding bulls

1789

1711

1592

1759

Rising one-year hinds

384

236

174

189

Rising two-year hinds

559

405

327

355

Mixed-age hinds

595

430

349

379

Rising one-year stags

441

283

212

242

Rising two-year and older stags (non-breeding)

662

455

420

475

Breeding stags

2324

1990

1873

2131

Rising one-year hinds

206

157

100

Rising two-year hinds

274

230

159

Mixed-age hinds

321

265

196

191

Rising one-year stags

230

169

110

136

Rising two-year and older stags (non-breeding)

314

261

202

226

Breeding stags

650

655

416

649

Rising one-year does

110

Mixed-age does

117

116

148

Rising one-year bucks (non-breeding)/wethers

Bucks (non-breeding)/wethers over one year

101

Breeding bucks

368

448

435

427

Rising one-year does

Mixed-age does

1042

131

Rising one-year bucks (non-breeding)/wethers

Bucks (non-breeding)/wethers over one year

Deer Red deer, wapiti, elk and related crossbreeds:

Other breeds:

Goats Angora and angora crosses (mohair producing):

Other fibre and meat producing goats (cashmere or cashgora producing)

524

Breeding bucks

313

374

383

387

Rising one-year does

299

321

295

213

Does over one year

414

430

403

300

Breeding bucks

427

588

597

580

Other dairy goats

Breeding sows less than one year of age

245

204

256

257

Breeding sows over one year

309

306

337

332

Breeding boars

462

442

390

374

Weaners less than 10 weeks of age (excluding sucklings)

108

Growing pigs 10 to 17 weeks of age (porkers and baconers)

1487

144

152

151

Growing pigs over 17 weeks of age (baconers)

195

205

215

226

Milking (dairy) goats:

Pigs

525

Livestock Taxation Examples The following examples calculate taxable income for sheep using either the herd scheme (where all sheep are included in the “herd”) or the National Standard Cost scheme using the average cost inventory system. Three consecutive years are illustrated, namely the income years ending 30 June 2020, 2022, and 2022. Livestock Data

Year ended 30 June

2019

2020

2021

2022

Ewe hoggets 2th ewes R3 and R4 year ewes R5 yr and older ewes Rams

930 760 1633 576 80 3979

932 771 1638 581 80 4002

930 763 1732 576 80 4081

934 735 1803 561 80 4113

Livestock sales Lambs MA ewes

$ 426,400 $ 3023 1241

446,710 $ 433,755 3031 3080 1030 1051

Livestock purchases MA ewes Rams

$ 50,650 $ 508 2

40,150 $ 350

35,500 300

Average Price

99.31 $

114.71 $

118.33

Natural increase Deaths and missing

3899 122

3900 110

3979 116

Stock at start Purchases Natural increase

3979 510 3899 8388

4002 350 3900 8252

4081 300 3979 8360

Sales Deaths and missing Stock at end

4264 122 4002 8388

4061 110 4081 8252

4131 116 4113 8360

526

Herd Scheme

2020 Income Year

Opening tax values 1 July 2019 (opening stock @ 2020 NAMV) x x x x x

$ 108 177 156 128 340

$ 100,440 134,520 254,748 73,728 27,200 $ 590,636

932 771 1638 581 80 4002

x x x x x

$ 108 177 156 128 340

$ 100656 136467 255528 74368 27200 $ 594,219

$ 594,219

590,636

$3,583

Ewe hoggets 2th ewes R3 and R4 year old ewes (Mixed Age) R5 year and older ewes Rams

930 760 1633 576 80 3979

Closing tax values 30 June 2020 (closing stock @ 2020 NAMV) Ewe hoggets 2th ewes R3 and R4 year old ewes (Mixed Age) R5 year and older ewes Rams

Taxable income due to changes in herd numbers

Check Herd value 30 June 2020 Less herd value 30 June 2019 (as per 2019 NAMV)

Increase in opening capital value of herd Plus increase due to changes in numbers

Decrease $ 590,636

$594,219 $719,964

$719,964 $ (129,328) $3,583 Decrease ($125,745)

Taxable Income from Sheep Sales Less Purchases Cash Surplus Plus Taxable increase in herd Taxable income from sheep

$ $ $ $ $

527

($125,745)

426,400 50,650 375,750 3,583 379,333

Herd Scheme

2021 Income Year

Opening tax values 1 July 2020 (opening stock @ 2021 NAMV) x x x x x

$ 123 191 174 153 323

$ 114,636 147,261 285,012 88,893 25,840 $ 661,642

930 763 1732 576 80 4081

x x x x x

$ 123 191 174 153 323

$ 114390 145733 301368 88128 25840 $ 675,459

$ 675,459

661,642

$13,817

Ewe hoggets 2th ewes R3 and R4 year old ewes (Mixed Age) R5 year and older ewes Rams

932 771 1638 581 80 4002

Closing tax values 30 June 2021 (closing stock @ 2021 NAMV) Ewe hoggets 2th ewes R3 and R4 year old ewes (Mixed Age) R5 year and older ewes Rams

Taxable income due to changes in herd numbers

Check Herd value 30 June 2021 Less herd value 30 June 2020 as (per 2020 NAMV)

Increase in opening capital value of herd Plus increase due to changes in numbers

Increase $ 661,642

$675,459 $594,219

$594,219 $

Increase

Taxable Income from Sheep Sales Less Purchases Cash Surplus Plus Taxable increase in herd Taxable income from sheep

$ $ $ $ $

528

446,710 40,150 406,560 13,817 420,377

$81,240 67,423 $13,817 $81,240

Herd Scheme

2022 Income Year

Opening tax values 1 July 2021 (opening stock @ 2022 NAMV) x x x x x

$ 143 224 202 176 384

$ 132,990 170,912 349,864 101,376 30,720 $ 785,862

934 735 1803 561 80 4113

x x x x x

$ 143 224 202 176 384

$ 133562 164640 364206 98736 30720 $ 791,864

$ 791,864

785,862

$6,002

Ewe hoggets 2th ewes R3 and R4 year old ewes (Mixed Age) R5 year and older ewes Rams

930 763 1732 576 80 4081

Closing tax values 30 June 2022 (closing stock @ 2022 NAMV) Ewe hoggets 2th ewes R3 and R4 year old ewes (Mixed Age) R5 year and older ewes Rams

Taxable income due to changes in herd numbers

Check Herd value 30 June 2022 Less herd value 30 June 2021 as (per 2021 NAMV)

Increase in opening capital value of herd Plus increase due to changes in numbers

Increase $ 785,862

Increase

$791,864 $675,459

$675,459 $ 110,403 $6,002 $116,405

Taxable Income from Sheep Sales Less Purchases Cash Surplus Plus Taxable increase in herd Taxable income from sheep

$ $ $ $ $

529

$116,405

433,755 35,500 398,255 6,002 404,257

National Standard Cost

2020 Income Year

Note: (1)

The formulae for calculating livestock values under the National Standard Cost scheme are contained in the Income Tax (National Standard Cost for Livestock) Determination 2022 also provides the national standard costs for livestock. The formulae have not been reprinted in this Manual. National standard costs for specified livestock determination 2022 (ird.govt.nz)

Average cost of livestock for the 2020 tax year has been calculated as: Ewe hoggets $ 36.60 per head Mature sheep $ 60.30 per head

Opening tax value 1 July 2019 Ewe hoggets Mature sheep

930 3049 3979

x x

$ $

34.20 58.70

$ 31,806.00 178,976.30 210,782.30

36.60 60.30

$ 34,111.20 185,121.00 219,232.20

Closing tax value 30 June 2020 Ewe hoggets Mature sheep

Change in stock on hand

932 3070 4002

x x

$ $

$ 219,232.20

$ 210,782.30 $

Taxable income from sheep Sales Less Purchases Livestock Trading Surplus Plus change in Stock on hand Taxable income from sheep

$ $ $ $ $

426,400 50,650 375,750 8,450 384,200

530

8,450

National Standard Cost

2021 Income Year

Average cost of livestock for the 2021 tax year has been calculated as: Ewe hoggets Mature sheep

$ 37.50 per head $ 63.50 per head

Opening tax value 1 July 2020 Ewe hoggets Mature sheep

932 3070 4002

x x

$ $

36.60 60.30

$ 34,111.20 185,121.00 219,232.20

37.50 63.50

$ 34,875.00 200,088.50 234,963.50

Closing tax value 30 June 2021 Ewe hoggets Mature sheep

Change in stock on hand

930 3151 4081

x x

$ $

$ 234,963.50

$ 219,232.20 $ 15,731.30

Taxable income from sheep Sales Less Purchases Livestock Trading Surplus Plus change in Stock on hand Taxable income from sheep

$ $ $ $ $

446,710 40,150 406,560 15,731 422,291

531

National Standard Cost

2022 Income Year

Average cost of livestock for the 2022 tax year has been calculated as: Ewe hoggets Mature sheep

$ 38.00 per head $ 64.50 per head

Opening tax value 1 July 2021 Ewe hoggets Mature sheep

930 3151 4081

x x

$ $

37.50 63.50

$ 34,875.00 200,088.50 234,963.50

38.00 64.50

$ 35,492.00 205,045.50 240,537.50

Closing tax value 30 June 2022 Ewe hoggets Mature sheep

Change in stock on hand

934 3179 4113

x x

$ $

$ 240,537.50

$ 234,963.50 $ 5,574.00

Taxable income from sheep Sales Less Purchases Livestock Trading Surplus Plus change in Stock on hand Taxable income from sheep

$ $ $ $ $

433,755 35,500 398,255 5,574 403,829

532

Accrual Rules for Expenditure (Deductions for Prepayments) Expenditures which can be treated as a tax deductible expense when paid, (i.e. the portion that relates to a period after balance date) and the upper limit after which the unexpired portion must be adjusted for are as follows:

Expenditure

Limit on Expenditure

Postage and Stationery

No limit

Subscriptions * Journals and periodicals * Trade and professional

No limit No limit in total, but the maximum for any one association is $6,000. Expenditure must not exceed 12 months.

Telephone

Expenditure must not extend further than 2 months past balance date.

Vehicle Registration

No limit

Rents payable for lease of land and/or buildings

Must not relate to a period beyond 6 months past balance date and the amount unexpired must not exceed $26,000 (or may exceed this amount if it relates to a period not more than one month after balance date).

Rents payable for lease or bailment of livestock or bloodstock

Must not relate to a period beyond 6 months past balance date and the amount unexpired must not exceed $26,000.

Insurance premiums

Must not relate to a period beyond 12 months past balance date and the amount unexpired must not exceed $12,000

Maintenance contracts

The contract/warranty must have been purchased as an integral part of the asset(s).

533

Service contracts which do not exceed $23,000

Performance completed within 3 months of balance.

Consumable aids

Must be in the possession of the taxpayer at balance date and the unexpired portion must not exceed $58,000.

Periodic charges

Must not relate to a period beyond 12 months past balance date and the unexpired portion must not exceed $14,000.

Rates

No limit

Advance bookings for travel and accommodation

Maximum $14,000, must not exceed 6 months after balance date.

Advertising

Maximum $14,000, 6 months.

Road user charges

No limit

Audit fees

No limit

Accounting cost

No limit

If the above conditions are not met then the expenditures must be treated as an asset (prepayment) and progressively written off as an expense as the goods or services are used or provided.

Economic Rates of Depreciation The economic depreciation rates must be used for all assets acquired in the 2005/06 and subsequent income years.

The following are selected examples of industry and asset categories. The 20% loading has been removed from assets purchased after 20 May 2010.

534

Estimated useful life (years)

Industry Categories

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

15.6

8.5

13.5

n/a

13.5

Agriculture, Horticulture and Aquaculture Agricultural and horticultural machinery (default class)

15.5

Aeroplanes (top dressing and spraying) and specialised attachments

Automated dairy drafting systems (2009/2010 and subsequent years)

6.6

Automated milking system from 2011/12 income year (PROV)

Beekeeping equipment

12.5

19.2

10.5

Bush cutters

Chainsaws

80.4

Cherrypickers

12.5

19.2

10.5

Cleaning machinery

15.5

15.6

8.5

Compressor (refrigerant)

12.5

19.2

10.5

Crates (cattle)

13.5

Crates (pigs)

13.5

Crates (sheep)

13.5

Cultivators (rotary)

Dairy shed and yard (including pipe work bails, railings and gates)

33.3

7.2

Egg crates

80.4

Equestrian arena consisting of permanent construction materials excluding the base course (2010/2011and subsequent years)

12.5 16

19.2

10.5

Feeders (forage)

19.2

10.5

Graders (capsicums)

17.5

Graders (tomatoes)

15.5

17.5

Grading machinery

15.6

8.5

535

Estimated useful life (years)

Industry Categories

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Harness

15.5

Harvesters

12.5

15.6

8.5

Haybalers

19.2

10.5

Hi-trim shelter trimmer (including sub-frame)

15.5

13.5

Hop kilns

15.5

15.6

8.5

Irrigation piping (above ground)

15.5

15.6

8.5

Irrigation pumps (above ground)

15.5

15.6

8.5

Irrigators (travelling)

13.5

Isolating transformers

17.5

Kennels (dogs)

Lawnmowers (domestic type used by lawnmowing contractors)

100

Lawnmowers (non-domestic type used by lawnmowing contractors)

Milk storage vat/silo

15.5

15.6

8.5

Milking plant

12.5

19.2

10.5

Mowers (gang and PTO type)

12.5

19.2

10.5

Mulchers (commercial)

Pig feeding plant

17.5

Pig watering systems

Plant supports (hanging retractable wire) (2007/2008 and subsequent years)

Plant trolley

Post hole borers (except PTO type)

Post hole borers (PTO type)

12.5

19.2

10.5

Poultry equipment

12.5

19.2

10.5

Rifles (greater than 10,000 rounds per year)

6.6

100

536

Estimated useful life (years)

Industry Categories

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Rifles (less than 10,000 rounds per year)

Rollers

12.5

19.2

10.5

Rotary dairy shed milking platforms (turntables)

9.6

Saddlery

Shearing equipment

17.5

Shellfish nets

Shellfish ropes

Shellfish stakes

Shotguns (greater than 50,000 rounds per year)

6.66

100

Shotguns (less than 50,000 rounds per year)

Sorting machinery

15.5

15.6

8.5

Sprayers (backpack)

Sprayers (mobile crop)

12.5

19.2

10.5

Sprayers (mobile weed)

12.5

19.2

10.5

Spreaders

12.5

19.2

10.5

Teat sprayers (automatic)

6.66

Tools (hand)

80.4

Tools (power)

80.4

Tractor drawn implements

15.5

15.6

8.5

Tractors (wheeled)

15.5

15.6

8.5

Trough covers (plastic) (PROV)

Wash down unit

13.5

Wash down unit (portable)

80.4

Water heaters

12.5

19.2

10.5

Wintering pads (rubber)

6.66

537

Estimated useful life (years)

Industry Categories

Woven reflective mulch

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

80.4

Dairy Plant Dairy plant and equipment (default class)

15.5

15.6

8.5

Blending bins (casein)

15.5

15.6

8.5

Butter making machines (except as specified)

15.5

15.6

8.5

Butter patting machines

12.5

19.2

10.5

Cartoning machines

15.5

15.6

8.5

Centrifuges

12.5

19.2

10.5

Cheddaring system

15.5

15.6

8.5

Cheese maturing boards

6.66

Cheese plant

15.5

15.6

8.5

Churns

15.5

15.6

8.5

Clarifiers (whey)

15.5

15.6

8.5

Compressor (refrigerant) (on farm)

12.5

19.2

10.5

Control equipment

17.5

Conveyors

15.5

15.6

8.5

Conveyors (crates)

15.5

15.6

8.5

Cooling equipment

15.5

15.6

8.5

Crating machines

15.5

15.6

8.5

Dairy plant powder drying plant dry store building, acquired on or after 19 May 2005 for 2011 and subsequent income years (PROV)

33.3

4.5

n/a

Decanters

12.5

19.2

10.5

Decrating machines

15.5

15.6

8.5

Dryers

15.5

15.6

8.5

Effluent plant (excluding stainless steel tanks and screens)

12.5

19.2

10.5

538

Estimated useful life (years)

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Electrodialysis plant (whey)

12.5

19.2

10.5

Evaporators (MVR type)

15.5

15.6

8.5

Evaporators (TVR type)

Filling machines (bottle)

15.5

15.6

8.5

Flow meters

17.5

Grinding plant (casein)

15.5

15.6

8.5

Heat exchangers

15.5

15.6

8.5

Homogenisers

12.5

19.2

10.5

Inflatable pipeline plug (PROV)

12.5

80.4

Ion exchangers (whey)

19.2

10.5

Metal detectors

17.5

Milk storage vat/silo (on farm)

15.5

15.6

8.5

Mixers

15.5

15.6

8.5

Packing machines (butter)

15.6

8.5

Packing machines (vacuum)

15.5

13.5

Pasteurisers

15.5

15.6

8.5

Pipeline crawler (PROV)

Pipework

15.5

15.6

8.5

Powder dryer buildings

15.5

15.6

8.5

Powder dryer buildings, acquired after 30 July 2009

15.5

n/a

6.5

Powder dryer buildings, acquired on or before 30 July 2009

15.5

15.6

8.5

Presses (butter)

15.5

15.6

8.5

Presses (cheese)

15.5

15.6

8.5

Refrigeration equipment

15.5

15.6

8.5

Retorts

9.6

Industry Categories

539

Estimated useful life (years)

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Scrape surface heat exchangers

12.5

19.2

10.5

Separators

12.5

19.2

10.5

Sifting plant (casein)

15.5

15.6

8.5

Silos

9.6

Tempering bins (casein)

15.5

15.6

8.5

Ultrafiltration plant

13.5

Valves

15.5

15.6

8.5

Vats

9.6

Washers (bottles)

15.5

15.6

8.5

Washers (boxes)

12.5

19.2

10.5

Washers (crates)

12.5

19.2

10.5

Industry Categories

Fishing (see also "Meat and Fish Processing") Fishing equipment (default class)

Alterations (auxiliary)

13.5

Bins (plastic)

Compressors (for refrigeration systems)

13.5

Craypots

100

Electronic systems

Engines

12.5

19.2

10.5

Floodlight systems

80.4

Freezers (blast)

13.5

Generators (auxillary)

13.5

Hydraulic systems

Icemaking machines

13.5

Inflatable pipeline plug (PROV)

80.4

Instrumentation (electronic)

540

Estimated useful life (years)

Industry Categories

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Insulation to refrigerated holds

15.5

15.6

8.5

Lifejackets

Liferafts

17.5

Nets (fishing) bottom trawl, complete with accessories

100

Nets (fishing) other, complete with accessories 12

100

Peurulus (baby crayfish) traps

100

Pipeline crawler (PROV)

Piping

13.5

Refrigeration systems

13.5

Safety equipment (other)

Vessels (fishing, non-steel hulled)

Vessels (fishing, steel hulled over 20 m)

15.5

15.6

8.5

Vessels (fishing, steel hulled under 20 m)

Winches

13.5

Wire (trawl)

100

Buildings and Structures Buildings (default class) up to and including 2011 income year.

n/a

Aprons (airports)

4.8

Barns (drying), acquired after 30 July 2009 Barns (drying), acquired between 1 April 2005 and 30 July 2009 incl

8.5

n/a

9.5

11.4

6.5

Barns, acquired after 30 July 2009

8.5

n/a

Barns, acquired on or before 30 July 2009

Borewells

Bridges (block)

100

2.4

1.5

Bridges (brick)

100

2.4

1.5

541

Estimated useful life (years)

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Bridges (concrete)

100

2.4

1.5

Bridges (other than block, brick, concrete and stone)

100

4.8

Bridges (stone)

100

2.4

1.5

Buildings (default class) from 2012 and subsequent income years

n/a

Buildings (portable) acquired between 1 April 2005 and 30 July 2009 incl.

n/a

10.5

Buildings (portable) acquired on or after 31 July 2009)

12.5

13.5

16.2

Buildings with prefabricated stressed-skin insulation panels

33.3

4.5

n/a

Buildings with reinforced concrete framing up to and including 2011 income year.

n/a

Buildings with reinforced concrete from 2012 and subsequent income years

n/a

Buildings with steel or steel and timber framing from 2012 and subsequent income years

n/a

Buildings with steel or steel and timber framing up to and including 2011 income year.

n/a

Buildings with timber framing from 2012 and subsequent income years

n/a

Buildings with timber framing up to and including 2011 income year.

n/a

Bunkers (concrete)

Carparking buildings (from 2012 and subsequent income years)

n/a

Carparking buildings acquired, or a binding contract entered into for the purchase or construction of the building on or before 30 July 2009

n/a

Industry Categories

542

Estimated useful life (years)

Industry Categories

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Carparking pads

4.8

Carparks (building and pads) up to and including 2011 income year.

4.8

Chemical works, acquired after 30 July 2009

33.3

4.5

n/a

Chemical works, acquired on or before 30 July 2009

33.3

7.2

Dairy plant powder drying plant dry store buildings, acquired on or after 19 May 2005

33.3

4.5

n/a

Dams (block)

100

2.4

1.5

Dams (brick)

100

2.4

1.5

Dams (concrete)

100

2.4

1.5

Dams (earth with rock core)

100

2.4

1.5

Dams (earth without rock core)

4.8

Dams (stone)

100

2.4

1.5

Driveways

4.8

Dykes (earth)

4.8

Equestrian arena consisting of permanent construction materials excluding the base course (2010/2011 and subsequent years) (PROV)

12.5

19.2

10.5

Fences

Fertiliser storage facilities for the bulk storage of raw materials and fertiliser products (may or may not be at the site of fertiliser works)

33.3

n/a

Fertiliser storage facilities for the bulk storage of raw materials and fertiliser products (may or may not be at the site of fertiliser works) (acquired on or after 19 May 2005)

33.3

4.5

n/a

Fertiliser works, acquired after 30 July 2009

33.3

4.5

n/a

543

Estimated useful life (years)

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Fertiliser works, acquired on or before 30 July 2009

33.3

7.2

Floating piers

33.3

7.2

Fowl houses

8.5

n/a

Grandstands from 2012 and subsequent income years

n/a

Grandstands up to and including 2011 income year.

n/a

Hardstandings

n/a

Hothouses (glass or other excluding PVC)

8.5

n/a

Hothouses (PVC or similar)

12.5

13.5

16.2

Lampposts (excluding wooden)

9.6

Lampposts (wooden)

Manholes

4.8

Marine fender systems (2009/2010 and subsequent years)

Memorials

4.8

Pig houses

8.5

n/a

Portable huts (not buildings)

12.5

19.2

10.5

Powder dryer buildings, acquired after 30 July 2009

15.5

n/a

6.5

Powder dryer buildings, acquired between 1 April 2005 and 30 July 2009

15.5

15.6

8.5

Reservoirs (above ground, concrete)

4.8

Reservoirs (for water, other than concrete or lined earth)

33.3

7.2

Reservoirs (in-ground, concrete)

100

2.4

1.5

Reservoirs (lined earth)

4.8

Retaining walls (concrete)

100

2.4

1.5

Industry Categories

544

Estimated useful life (years)

Industry Categories

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Retaining walls (wooden)

9.6

Roadways

4.8

Runways (for airports)

33.3

7.2

Saleyards

33.3

7.2

Shade houses (glass or other, excluding PVC)

8.5

n/a

Shade houses (PVC or similar)

12.5

13.5

16.2

Signs (road)

6.66

Signs (street nameplates)

6.66

Stopbanks (earth)

4.8

Structures (default class)

4.8

Swimming pools (in-ground)

33.3

7.2

Tanneries

33.3

4.5

n/a

Taxiways (airports)

4.8

Tiered seating (not part of a building)

4.8

Towers (for floodlights)

9.6

Tunnels (block)

100

2.4

1.5

Tunnels (brick)

100

2.4

1.5

Tunnels (concrete)

100

2.4

1.5

Tunnels (stone)

100

2.4

1.5

Valve chambers and similar

4.8

Wharf tarmac

4.8

Wharves (block)

100

2.4

1.5

Wharves (brick)

100

2.4

1.5

Wharves (concrete)

100

2.4

1.5

Wharves (other than block, brick, concrete and stone)

4.8

Wharves (stone)

100

2.4

1.5

545

Estimated useful life (years)

Industry Categories

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

13.5

n/a

Transportation Transportation (default class)

Aeroplanes (mechanically propelled, fixed wing, of an unladen weight not exceeding 15,000kg) (residual value has been estimated at 25%)

Aeroplanes (mechanically propelled, fixed wing, of an unladen weight over 15,000kg, other than helicopters) (residual value has been estimated at 25%)

Aeroplanes (top-dressing and spraying) and specialised attachments

Aircraft (international passenger) Airport runways

33.3

7.2

Airships

12.5

19.2

10.5

Ambulances

12.5

19.2

10.5

Animal-drawn vehicles

Baggage conveyor systems

15.5

15.6

8.5

Baggage imaging machines

17.5

Balloons

12.5

19.2

10.5

Barges

Barriers (electrically operated)

13.5

Bicycles (pedal)

Boat lift storage system (inflatable)

17.5

Bulkheads (insulated, removable)

Buoys

Buses (for transporting people, over 12 seats)

12.5

19.2

10.5

Cablecars

546

Estimated useful life (years)

Industry Categories

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Campervans (including Motorhomes) acquired on or after 1 April 2005 but prior to the 2010/11 income year

13.5

Campervans acquired during or after the 2010/11 income year

21.6

12.5

Canoes

13.5

Caravans

12.5

19.2

10.5

Chairlifts

Child restraints (capsules and car seats) for hire

Coaches (for transporting people, over 12 seats)

12.5

19.2

10.5

Concrete trucks

12.5

19.2

10.5

Containers (insulated, below 8m3)

Containers (shipping)

Dirigibles

12.5

19.2

10.5

Dredges

Drilling platforms

Dump trucks

15.5

15.6

8.5

Ferries

Fire boats

9.6

Fire engines

Fleet tracking unit (PROV)

n/a

Flight simulators (FTD and FNPT certifiable) aircraft specific (full-motion)

15.5

15.6

8.5

Flight simulators (FTD and FNPT certifiable) aircraft specific (non-motion)

17.5

547

Estimated useful life (years)

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Flight simulators (FTD and FNPT certifiable) upgradeable/multi aircraft specific (nonmotion)

15.5

15.6

8.5

Flight simulators (Non-certifiable) (non-motion)

Floating docks

9.6

Forklift trucks (8 tonnes and over used for short-term hire of 1 month or less only) 2010/11 and subsequent income years.

17.5

Forklift trucks (8 tonnes and over)

12.5

19.2

10.5

Forklift trucks (under 8 tonnes used for shortterm hire of 1 month or less only) 2010/11 and subsequent income years.

6.66

Forklift trucks (under 8 tonnes)

13.5

Freight cars (rail)

9.6

Freight cars (tramway)

9.6

Funicular railways

Gliders

12.5

19.2

10.5

Gondolas and the like

Gyrocopters

80.4

Hang gliders

80.4

Helicopters

Horse floats

Hovercraft

12.5

19.2

10.5

Inflatable boats

17.5

Inflatable rafts

17.5

Jetboats

13.5

Jetskis

Lifeboats (excluding inflatable)

15.5

15.6

8.5

Industry Categories

548

Estimated useful life (years)

Industry Categories

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Lifejackets and the like

Locomotives (diesel)

9.6

Locomotives (electric)

9.6

Locomotives (steam)

9.6

Maintenance cars (rail)

9.6

Maintenance cars (tramway)

9.6

Metal detectors

17.5

Microlites

80.4

Military type vehicles

15.5

15.6

8.5

Minibuses (up to and including 12 seats) (residual value has been estimated at 25%)

Monorail vehicles

15.5

15.6

8.5

Mopeds

6.66

Motor launches

Motor scooters

6.66

Motor vehicles (for transporting people, up to and including 12 seats and used for short-term hire of 1 month or less only)

5 50

Motor vehicles (for transporting people, up to and including 12 seats) (residual value has been estimated at 25%)

4 30

Motor vehicles—class NA (for transporting light goods, gross vehicle mass not over 3.5 tonnes and used for short-term hire of 1 month or less only)

10 30

Motor vehicles—class NA (for transporting light goods, gross vehicle mass up to 3.5 tonnes)

6.6 20

13.5

549

Estimated useful life (years)

Industry Categories

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

17.5

19.2

10.5

13.5

Motor vehicles—class NB (for transporting medium goods, gross vehicle mass over 3.5 but not over 12 tonnes and used for short-term hire of 1 month or less only)

12.5

Motor vehicles—class NB (for transporting medium goods, gross vehicle mass over 3.5 tonnes but not over 12 tonnes)

Motor vehicles—class NC (for transporting heavy goods, gross vehicle mass over 12 tonnes and used for short-term hire of 1 month or less only)

Motor vehicles—class NC (for transporting heavy goods, gross vehicle mass over 12 tonnes)

6.6

Motorcycles

6.66

Motorhomes acquired during or after the 2010/11 income year

21.6

12.5

Outboard motors

Pallet covers (insulated)

100

Parachutes

80.4

Pleasure vessels

15.5

15.6

8.5

Radar navigational signalling equipment

13.5

Radar navigational traffic control equipment

13.5

Railway jiggers

Road signs

6.66

Roll-on/roll-off vessels

Roof racks

Rowing boats

15.5

15.6

8.5

Rubbish trucks

12.5

19.2

10.5

550

Estimated useful life (years)

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Ship loading and unloading equipment (not elsewhere specified)

15.5

15.6

8.5

Ships (bulk carrier)

Ships (cargo)

9.6

Ships (container)

Ships (cruise)

9.6

Ships (livestock)

Ships (refrigerated)

Ships (tanker)

Sidecars

6.66

Signs (street nameplates)

6.66

Small boats

15.5

15.6

8.5

Special-purpose vehicles

12.5

19.2

10.5

Speed humps (metal)

Speed humps (plastic)

Speed humps (rubber)

13.5

Straddle carriers

15.5

15.6

8.5

Street furniture (excluding signs)

Taxis (up to and including 12 seats) (residual value has been estimated at 25%)

Towing tractors

15.5

15.6

8.5

Tracklayers

15.5

15.6

8.5

Tracks (monorail)

9.6

Tracks (rail)

9.6

Traction batteries

Traction engines

9.6

Tractors (farm type)

15.5

15.6

8.5

Industry Categories

551

Estimated useful life (years)

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Traffic lights

12.5

19.2

10.5

Trailers - domestic (up to 1 tonne)

15.5

17.5

Trailers (domestic, up to 1 tonne used for short-term hire of 1 month or less only)

Trailers class TC (transporting medium goods; GVM over 3.5 tonne and up to 10 tonne)

Trailers class TD (transporting heavy goods; GVM over 10 tonne)

12.5

15.6

8.5

Trailers—class TC (for transporting medium goods, gross vehicle mass over 3.5 tonnes but not over 10 tonnes and used for short-term hire of 1 month or less only)

15.5

19.2

10.5

Trailers—class TD (for transporting heavy goods, gross vehicle mass over 10 tonnes and used for short-term hire of 1 month or less only)

13.5

Trailers—classes TA and TB (for transporting light goods, gross vehicle mass up to 3.5 tonnes and used for short-term hire of 1 month or less only) excluding domestic trailers

13.5

Trailers—classes TA and TB (for transporting light goods, gross vehicle mass up to 3.5 tonnes) excluding domestic trailers

6.66

15.6

8.5

Tram tracks

Tram wires

Tricycles (pedal)

Trolley bus wires

Trolley buses

15.5

15.6

8.5

Tugs

9.6

Tyre chains

80.4

Vehicles, road-going (not elsewhere specified)

15.5

15.6

8.5

Industry Categories

552

Estimated useful life (years)

Industry Categories

DV rate %

DV + 20% loadin g (%)

SL equiv rate (%)

Vending machines (for tickets)

17.5

Windsurfers

80.4

Yachts (international ocean-going)

Yachts (other than international ocean-going)

15.5

15.6

8.5

‘Old’ Schedule of Rates of Depreciation The depreciation rates applied between the 1993/94 income year and the 2004/05 income year will still apply for those assets purchased during that period but are no longer valid for assets acquired during the 2005/06 year and subsequent periods.

553

Amortisation Rates for Listed Horticultural Plants 1.

for the purposes of section 91AAB(1)(a), the types of horticultural plant, tree, vine, bush, cane, or similar plant, as set out in the schedule to this Determination, shall be listed horticultural plants; and

(b)

for the purposes of section 91AAB(1)(b), for the 2004 income year, the banded rate set out in column 1 of Schedule 11 of the Income Tax Act 1994 that is to be used to calculate the diminishing value for each type of listed horticultural plant shall be at the election of the taxpayer either:

Explanation (Which does not form part of the Determination)

This Determination sets out the amortisation rates (on the basis of diminishing values) for listed horticultural plants as determined by the Commissioner of Inland Revenue and listed in the schedule to this Determination.

(a)

Reference

This Determination is made pursuant to section 91AAB of the Tax Administration Act 1994.

Interpretation

(c)

In this Determination, unless the context otherwise requires, expressions used have the same meanings as those in sections DO 4, DO 4B, DO 4C, DO 4D, OB 1 and Schedule 7 of the Income Tax Act 1994 and section 91AAB of the Tax Administration Act 1994 in respect of the 2004 and 2005 income years.

In this Determination, unless the context otherwise requires, expressions used have the same meanings as those in sections DO 4, DO 4B, DO 4C, DO 4D, DO 4E, OB 1 and Schedule 7 of the Income Tax Act 2004 and section 91AAB of the Tax Administration Act 1994 in respect of the 2006 and subsequent income years.

the amortisation rates as set out in column 2 of the schedule to this Determination; or

(ii)

10% (which does not include the 20% loading); and

Scope of Determination

This Determination shall apply from the 2004 and subsequent income years. Its application will be supplemented or amended by supplementary Determinations pursuant to subsection 91AAB(4) of the Tax Administration Act 1994.

(i)

(d)

Determination

Pursuant to section 91AAB of the Tax Administration Act 1994:

554

for the purposes of section 91AAB(1)(b), for the 2005 income year, for a taxpayer whose return has been furnished on or before 30 June 2005, the banded rate set out in column 1 of Schedule 11 of the Income Tax Act 1994 that is to be used to calculate the diminishing value for each type of listed horticultural plant shall be at the election of the taxpayer either:

(i)

the amortisation rates as set out in column 2 of the schedule to this Determination; or

(ii)

10% (which does not include the 20% loading); and

for the purposes of section 91AAB(1)(b), for the 2005 income year, for a taxpayer whose return is furnished after 30 June 2005, the banded rate set out in column 1 of Schedule 11 of the Income Tax Act 1994 that is to be used to calculate the diminishing value for each type of listed horticultural plant shall be the amortisation rates

as set out in column 2 of the schedule to this Determination; and

(e)

for the purposes of section 91AAB(1)(b), for 2006 and subsequent income years, the banded rate set out in column 1 of Schedule 11 of the Income Tax Act 2004 that is to be used to calculate the diminishing value for each type of listed horticultural plant shall be the amortisation rates as set out in column 2 of the schedule to this Determination.

This Determination is made by me, acting under the delegated authority from the Commissioner of Inland Revenue under section 7 of the Tax Administration Act 1994.

This Determination is signed on the 13th day of May 2005.

Graham Tubb National Manager (Technical Standards)

555

SCHEDULE TO DETERMINATION DET 05/01 Amortisation rates for listed horticultural plants Column 1 Listed horticultural plant

Berryfruit Blueberry Blackcurrant Rubus Raspberry Blackberry Boysenberry Loganberry Other Rubus Citrus Grapefruit Lemon Lime Mandarin Orange Tangelo Grapes Table grapes Nuts Chestnut Hazelnut Walnut

Column 2 DV %*

Column 3 DV% with 20% loading

Column4 Estimated useful life of horticultural plant (%)

12 18

14.4 21.6

13 8

26 15 15 15 15

31.2 18.0 18.0 18.0 18.0

5 10 10 10 10

7.5 7.5 7.5 6 6 6

9.0 9.0 9.0 7.2 7.2 7.2

18 20 20 25 25 25

7.5

9.0

7.5 6 4

9.0 7.2 4.8

20 26 30

* Please note a 20% (Column3) loading is to be added to the percentage in column 2 to arrive at the total diminishing value amortisation rate available each income year.

556

Column 1 Listed horticultural plant

Pipfruit Apple European pear Nashi Asian pear Summerfruit Apricot Cherry Plum Nectarine Peach Vegetables Asparagus Other Avocado Feijoa Hop Kiwifruit Olives <500 trees per hectare >500 trees per hectare (typically hedges) Passionfruit Persimmon Tamarillo

Column 2 DV %*

Column 3 DV% with 20% loading

Column4 Estimated useful life of horticultural plant (%)

9.5 7.5 9.5

11.4 9.0 11.4

15 20 15

9.5 7.5 9.5 12 12

11.4 9.0 11.4 14.4 14.4

15 20 15 12 12

26.4

7.5 7.5 15 7.5

9.0 9.0 18.0 9.0

20 18 10 20

7.5 9.5

9.0 11.4

20 15

33 6 33

39.6 7.2 39.6

4 25 4

* Please note a 20% (Column3) loading is to be added to the percentage in column 2 to arrive at the total diminishing value amortisation rate available each income year.

557