The Financial Budget Manual by Aginfo

VOL 40

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15/05/18 9:42 AM

Lincoln University FINANCIAL BUDGET MANUAL 2018

EDITORS: David Askin B. Ag. Sc. (Hons), Ph D Virginia Askin B. C.M. (Accounting) "Manual Sales" 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 pdf available directly on line ISSN 0113-1397

PREFACE The "Financial Budget Manual 2018" is an invaluable reference book for farmers and growers, consultants and students. It contains a wealth of up to date information on farm and orchard costs and prices, the profitability of different enterprises, and income taxation. Following its successful introduction in 1999, the manual is now available on the web. However, many users find having the information in a book is the most convenient and efficient format, and this manual is the result of the Universityâ&#x20AC;&#x2122;s commitment to the wide readership. You can purchase the complete book as a pdf. www.aginfo.lincoln.ac.nz. Unless stated otherwise, data contained in the Manual are current mid-2018 and are exclusive of GST. Prices do 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 hundreds of 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. If you as a supplier would like your products listed â&#x20AC;&#x201C; please use the website as your point of contact. Our sincere thanks to staff at Lay Associates Ltd., who contributed updates for Section 4 on Tax. Thanks also to 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. We wish to express our appreciation to the Assistant Editor Annmarie Baldwin for her efforts in gathering and collating the information. This Manual has been prepared in good faith and is published with the condition that it and its owners, authors and editors disavow and exclude any liability in any way for any costs, claims, demands or actions arising from its use. In no event shall Lincoln University be liable for any direct, indirect, incidental or consequential damages of any kind whatsoever arising from the use of the Manual. This disclaimer includes, but is not limited to, all implied warranties of fitness for a particular purpose, merchantability or non-infringement. While every effort has been made to ensure that the information in this publication is accurate, no responsibility can be taken by Lincoln University for any error or omission in these pages, nor for any loss or damage resulting from the reliance on, or the use of information or opinions contained in this Manual. Lincoln University does not accept any liability for the accuracy, currency, reliability or correctness of any information provided by third parties.

The inclusion of advertisements in the text does not necessarily imply the University's endorsement of those advertised products/services. Any suggestions for the improvement of the Manual would be welcomed. For readers' information the Faculty of Agribusiness and Commerce at Lincoln University also produces a companion volume - the "Farm Technical Manual". It is a versatile reference book, which brings into one place all manner of essential technical information required by farmers and others involved in the farming industry. David and Virginia Askin EDITORS September 2018

TABLE OF CONTENTS 1.

PRODUCT PRICES 1.1 1.2

1.3 1.4

1.5

1.6

1.7

MARKET PRICES ............................................................................................. 3 1.1.1 Impact of Exchange Rate on Product Prices .................................... 3 1.1.2 Exchange Rate .................................................................................. 4 SHEEP ................................................................................................................ 5 1.2.1 Lamb Schedule (Export) .................................................................. 5 1.2.2 Lamb Price ....................................................................................... 5 1.2.3 Lamb Skin Price trends .................................................................... 7 1.2.4 Live Lamb and Sheep Shipments ..................................................... 7 1.2.5 Mutton Schedule (Export) ................................................................ 8 1.2.6 Mutton Price ..................................................................................... 8 1.2.7 Ewe and Lamb - Prime Stock (Local Sales) .................................... 9 1.2.8 Ewe and Lamb - Store and Breeding Stock ..................................... 10 WOOL................................................................................................................. 12 1.3.1 Wool Market Prices.......................................................................... 12 1.3.2 Wool Price Trends............................................................................ 13 CATTLE ............................................................................................................. 15 1.4.1 Beef Price ......................................................................................... 15 1.4.2 Cattle Prices - Prime Stock (Local Sales) ........................................ 16 1.4.3 Store and Breeding Cattle Prices...................................................... 17 1.4.4 TB Compensation............................................................................. 20 DAIRY PRODUCE ............................................................................................ 23 1.5.1 Price paid for Milksolids .................................................................. 23 1.5.2 Milksolids Price Trends ................................................................... 29 1.5.3 Deductions for Poor Quality Milk.................................................... 29 1.5.4 Premium Rates for Contract Winter Milk ........................................ 29 1.5.5 Sire Proving Scheme Rebates .......................................................... 32 1.5.6 Dairy Cattle Sales (2018) ................................................................. 33 1.5.7 Dairy and Dairy-Cross Calves ......................................................... 34 1.5.8 Dairy Beef Weaners ......................................................................... 38 1.5.9 Cow Beef .......................................................................................... 38 1.5.10 TB Compensation............................................................................. 38 DEER PRODUCTION ....................................................................................... 39 1.6.1 Venison Price Trends ....................................................................... 39 1.6.2 Deer Live Sales ................................................................................ 40 1.6.3 Velvet ............................................................................................... 41 1.6.4 T.B. Compensation........................................................................... 41 GOAT PRODUCTION ....................................................................................... 43 1.7.1 Introduction ...................................................................................... 43 1.7.2 Goat Meat Prices (Chevon) .............................................................. 43 1.7.3 Goat Milk ......................................................................................... 43 1.7.4 Goat Fibre......................................................................................... 44 1.7.5 Goat Livestock Sales ........................................................................ 45

i i

1.8

1.9 1.10

1.11

1.12

1.13

PIG PRODUCTION ........................................................................................... 47 1.8.1 Pig Meat Prices ................................................................................ 47 1.8.2 Average Pigmeat Returns 1987 to 2018........................................... 48 1.8.3 Live Pig Price Trends ....................................................................... 50 CAMELIDS ........................................................................................................ 51 CROPS ................................................................................................................ 52 1.10.1 Wheat ............................................................................................... 52 1.10.2 Barley ............................................................................................... 54 1.10.3 Oats .................................................................................................. 57 1.10.4 Peas .................................................................................................. 58 1.10.5 Maize/Maize Silage .......................................................................... 60 1.10.6 Ryecorn ............................................................................................ 61 1.10.7 Lentils (red) ...................................................................................... 61 1.10.8 Triticale ............................................................................................ 61 1.10.9 Lupins ............................................................................................... 62 1.10.10 Linseed ............................................................................................. 62 1.10.11 Evening Primrose ............................................................................. 62 1.10.12 Borage .............................................................................................. 63 1.10.13 Oilseed Rape / Canola ...................................................................... 63 SMALL SEEDS .................................................................................................. 64 1.11.1 Pasture Grasses................................................................................. 64 1.11.2 Turf / Amenity Species .................................................................... 64 1.11.3 Legumes ........................................................................................... 64 1.11.4 Forage Herbs .................................................................................... 65 1.11.5 Forage Brassicas............................................................................... 65 FRUIT PRODUCTION ...................................................................................... 66 1.12.1 Fruit Prices - General ....................................................................... 66 1.12.2 Apples .............................................................................................. 66 1.12.3 Avocados .......................................................................................... 68 1.12.4 Feijoa ................................................................................................ 69 1.12.5 Grapes .............................................................................................. 70 1.12.6 Kiwifruit ........................................................................................... 72 1.12.7 Olives ............................................................................................... 75 1.12.8 Pears ................................................................................................. 76 1.12.9 Blueberries ....................................................................................... 76 VEGETABLE PRODUCTION .......................................................................... 77 1.13.1 Vegetable Prices - General ............................................................... 77 1.13.2 Broccoli ............................................................................................ 77 1.13.3 Capsicum .......................................................................................... 77 1.13.4 Onions .............................................................................................. 78 1.13.5 Potatoes ............................................................................................ 79 1.13.6 Cauliflower ....................................................................................... 79 1.13.7 Asparagus ......................................................................................... 79 1.13.8 Sweetcorn ......................................................................................... 80 1.13.9 Carrots loose..................................................................................... 80 1.13.10 Tomatoes loose................................................................................. 80

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1.14

1.15

APICULTURAL PRODUCTION ...................................................................... 81 1.14.1 Honey ............................................................................................... 81 1.14.2 Beeswax ........................................................................................... 81 1.14.3 Pollen................................................................................................ 81 1.14.4 Propolis ............................................................................................ 81 1.14.5 Pollination ........................................................................................ 82 1.14.6 Live Bees .......................................................................................... 82 LOGS .................................................................................................................. 83 1.15.1 Indicative Log Prices........................................................................ 83 1.15.2 Forestry Forecasts ............................................................................ 83

iii iii

FARM and ORCHARD EXPENSES 2.1

2.2 2.3

2.4

2.5

2.6

INPUT PRICES - GENERAL INFORMATION ............................................... 87 2.1.1 Input Price Movements .................................................................... 87 2.1.2 Price Discounts................................................................................. 87 2.1.3 Rate of Inflation in New Zealand 1970 to June 2018 ...................... 88 WAGES / SALARIES / DRAWINGS................................................................ 89 2.2.1 Wages and Salaries - Farm Employees ............................................ 89 2.2.2 Drawings .......................................................................................... 92 ANIMAL HEALTH ............................................................................................ 93 2.3.1 Animal Health - Average Costs ....................................................... 93 2.3.2 Drenches / Vaccines / Bloat Control ................................................ 94 2.3.3 Dips / Sprays / Ointments / Dressings.............................................. 97 2.3.4 Metabolics / Antibiotics ................................................................... 97 2.3.5 Animal Health Services.................................................................... 99 2.3.6 Animal Health Equipment................................................................ 101 2.3.7 Dog Expenses ................................................................................... 104 2.3.8 Breeding Expenses ........................................................................... 105 2.3.9 Sire Purchases .................................................................................. 110 2.3.10 Herd Testing Charges ....................................................................... 112 2.3.11 Dairy Shed Expenses........................................................................ 113 2.3.12 Calf Rearing ..................................................................................... 117 2.3.13 Feed and Nutrition............................................................................ 120 2.3.14 Wool and Shearing Expenses ........................................................... 131 2.3.15 Scales and Platforms ........................................................................ 136 2.3.16 Stock Feeding Systems and Equipment ........................................... 142 CONTRACTING CHARGES ............................................................................ 144 2.4.1 Hay Making ...................................................................................... 144 2.4.2 Silage ................................................................................................ 144 2.4.3 Cultivation / Drilling ........................................................................ 145 2.4.4 Heading / Harvesting........................................................................ 146 2.4.5 Irrigation Earthworks ....................................................................... 146 2.4.6 Aerial Oversowing ........................................................................... 146 2.4.7 Dipping ............................................................................................. 147 2.4.8 Tailing / Dagging / Drenching ......................................................... 147 2.4.9 Pregnancy Diagnosis ........................................................................ 147 2.4.10 Miscellaneous Contracting ............................................................... 148 ELECTRICITY ................................................................................................... 149 2.5.1 Total Farm Electricity Costs ............................................................ 149 2.5.2 Regional Electricity Charges............................................................ 150 2.5.3 Cost of Power Installation ................................................................ 156 FERTILISER and LIME ..................................................................................... 157 2.6.1 Fertiliser ........................................................................................... 157 2.6.2 Lime ................................................................................................. 166 2.6.3 Dolomite ........................................................................................... 166 2.6.4 Fertiliser Spreading / Application Costs .......................................... 167 2.6.5 Testing of Soil, Water, Plant and Feeds ........................................... 169

iv iv

2.7

2.8

2.9

2.10

FREIGHT AND CARTAGE .............................................................................. 171 2.7.1 Road Transport Rates ....................................................................... 171 2.7.2 Railway Transport Rates .................................................................. 172 2.7.3 Inter-Island Ferry Freight Rates ....................................................... 172 2.7.4 Air Freight Rates .............................................................................. 172 SEEDS, PLANTS AND PROPAGATION ........................................................ 174 2.8.1 Seeds - Pasture ................................................................................. 174 2.8.2 Seeds – Forage Cultivars .................................................................. 179 2.8.3 Seeds - Arable Crops ........................................................................ 182 2.8.4 Seeds - Process Crops ...................................................................... 182 2.8.5 Seeds - Turf Grasses......................................................................... 183 2.8.6 Coated Seed ...................................................................................... 183 2.8.7 Vegetable Seeds ............................................................................... 184 2.8.8 Flower Seeds / Bulbs / Plants ........................................................... 188 2.8.9 Fruit Trees and Plants....................................................................... 190 2.8.10 Planting / Propagating Expenses ...................................................... 193 2.8.11 Growing Medium ............................................................................. 194 WEED, PEST AND DISEASE CONTROL ....................................................... 195 2.9.1 Weed and Pest Control – Budget Figures ........................................ 195 2.9.2 Weed, Pest and Disease Control – General ...................................... 196 2.9.3 Herbicides ........................................................................................ 196 2.9.4 Insecticides ....................................................................................... 199 2.9.5 Molluscicides ................................................................................... 199 2.9.6 Fungicides ........................................................................................ 200 2.9.7 Algaecides ........................................................................................ 200 2.9.8 Rabbit / Rodent / Opossum Control ................................................. 200 2.9.9 Bird Repellents ................................................................................. 201 2.9.10 Bactericides ...................................................................................... 201 2.9.11 Wetting, Spreading and Marking Agents ......................................... 201 2.9.12 Growth Regulants............................................................................. 202 2.9.13 Adjuvants ......................................................................................... 202 2.9.14 Soil Fumigants ................................................................................. 202 2.9.15 Penetrants ......................................................................................... 202 2.9.16 Root Forming Hormones.................................................................. 202 2.9.17 Spraying Costs - Aerial and Ground ................................................ 203 SELLING, HANDLING, PROCESSING CHARGES AND LEVIES .............. 204 2.10.1 Commissions on Stock and Plant Sold Through a Stock and Station Agent .................................................................................... 204 2.10.2 Wool Selling Charges ...................................................................... 205 2.10.3 Wool Classing Charges .................................................................... 205 2.10.4 Goat Fibre Charges / Levy ............................................................... 205 2.10.5 Velvet Charges ................................................................................. 206 2.10.6 Livestock Levies. ............................................................................. 206 2.10.7 Dairy Company Shares .................................................................... 207 2.10.8 Herbage Seed Levy .......................................................................... 207 2.10.9 Arable Crop Growers Levies ........................................................... 208 2.10.10 Seed Royalties .................................................................................. 209 2.10.11 Horticultural Levies ......................................................................... 210 2.10.12 Forest Growers Levy ........................................................................ 212

v v

2.11

2.12

2.13

2.14

2.15

2.16

2.17

SUNDRY CROPPING AND HORTICULTURAL EXPENSES ...................... 213 2.11.1 Grain Drying Charges ...................................................................... 213 2.11.2 Consolidated Dressing and Store Handling Charges ....................... 213 2.11.3 Seed Testing Fees ............................................................................. 214 2.11.4 Crates and Packaging ....................................................................... 215 2.11.5 Packing Charges - Horticultural Produce ......................................... 216 2.11.6 Cool Storage ..................................................................................... 216 2.11.7 Safety Equipment ............................................................................. 217 2.11.8 Protection (crop)............................................................................... 218 2.11.9 Pollination ........................................................................................ 220 2.11.10 Weighbridge Charges ....................................................................... 221 2.11.11 GPS Units ......................................................................................... 222 REPAIRS AND MAINTENANCE .................................................................... 223 2.12.1 Total Repairs and Maintenance per Farm/Orchard .......................... 223 2.12.2 Repairs and Maintenance - Farm Improvements, Plant and Machinery ........................................................................................ 224 VEHICLE EXPENSES ....................................................................................... 225 2.13.1 Total Vehicle Running Expenses ..................................................... 225 2.13.2 Tractor Running Costs ..................................................................... 226 2.13.3 Car Operating Costs ......................................................................... 229 2.13.4 Fuel, Oil and Grease ......................................................................... 233 2.13.5 Tyres and Tubes ............................................................................... 233 2.13.6 Licensing / Road Charges ................................................................ 234 2.13.7 Combine Harvester Running Costs .................................................. 235 PROFESSIONAL FEES ..................................................................................... 236 2.14.1 Accountancy Fees ............................................................................ 236 2.14.2 Farm Consultancy Charges .............................................................. 237 2.14.3 Land Transfer Fees ........................................................................... 237 2.14.4 Legal Fees ........................................................................................ 238 2.14.5 Real Estate Charges.......................................................................... 239 2.14.6 Valuation Charges ............................................................................ 239 2.14.7 Survey Fees ...................................................................................... 240 ADMINISTRATION EXPENSES ..................................................................... 241 2.15.1 Average Administration Costs ......................................................... 241 2.15.2 Telephone and Internet Costs ........................................................... 242 2.15.3 Postage ............................................................................................. 243 2.15.4 Courier Charges ............................................................................... 244 2.15.5 Subscriptions (Magazines/Farming Organisations) ......................... 246 2.15.6 Travelling ......................................................................................... 246 2.15.7 Payroll Outsourcing ......................................................................... 246 2.15.8 Bank Fees and Stock Company Charges ......................................... 246 STANDING CHARGES..................................................................................... 247 2.16.1 Insurances ......................................................................................... 247 2.16.2 Accident Compensation Commission Levy ..................................... 249 2.16.3 Rates ................................................................................................. 249 2.16.4 Rent on Leased Land ........................................................................ 251 FINANCIAL CHARGES ................................................................................... 254 2.17.1 Bank Charges ................................................................................... 254 2.17.2 Cost of Table Mortgages .................................................................. 258

vi vi

2.18

2.19

2.20

WATER SUPPLY, IRRIGATION AND DRAINAGE ...................................... 261 2.18.1 Water Supply Development Costs (2018)........................................ 261 2.18.2 Water Tanks ..................................................................................... 261 2.18.3 Water Troughs .................................................................................. 262 2.18.4 Pumps and Windmills ...................................................................... 262 2.18.5 Effluent Pumps, Sumps, Irrigators and Pond Stirrers ...................... 266 2.18.6 Well Drilling .................................................................................... 268 2.18.7 Dam Liners ....................................................................................... 268 2.18.8 Pipes, Valves and Fittings ................................................................ 269 2.18.9 Rural Domestic and Stock Water Supply Charges .......................... 272 2.18.10 Resource Consents, Water and Discharge Permits .......................... 273 2.18.11 Irrigation Equipment - Pastoral and Horticultural ........................... 274 2.18.12 Irrigation Equipment - Horticultural ................................................ 276 2.18.13 Irrigation Water Supply Charges ..................................................... 277 2.18.14 Irrigation Scheduling Service ........................................................... 278 2.18.15 Irrigation Earthworks ....................................................................... 278 2.18.16 Drainage and Sub-soiling Costs ....................................................... 279 2.18.17 Dairy Shed Effluent Disposal........................................................... 282 2.18.18 Septic Tanks ..................................................................................... 283 FENCING COSTS .............................................................................................. 284 2.19.1 Guide to Fencing Costs .................................................................... 284 2.19.2 Full Contract Fencing Rates ............................................................. 284 2.19.3 Electric Fences ................................................................................. 287 2.19.4 Wire .................................................................................................. 287 2.19.5 Posts / Strainers / Battens / Stays ..................................................... 288 2.19.6 Gates ................................................................................................. 289 2.19.7 Precast Cattle Deterrent and Cattle Stops with Galvanised Pipe tubes ................................................................................................. 289 2.19.8 Wire Netting ..................................................................................... 290 2.19.9 Fencing Tools and Equipment ......................................................... 290 2.19.10 Electric Fence Energisers ................................................................. 292 2.19.11 Insulators .......................................................................................... 292 2.19.12 Electric Fence Reels and Wire ......................................................... 293 2.19.13 Electric Fence Standards / Outriggers .............................................. 293 2.19.14 Electric Fence Cable ........................................................................ 294 2.19.15 Electric Fencing Accessories ........................................................... 294 2.19.16 Staples .............................................................................................. 294 MACHINERY, IMPLEMENTS and PLANT .................................................... 295 2.20.1 Vehicles – Price Range .................................................................... 295 2.20.2 Implements and Plant – Price Range ............................................... 296 2.20.3 Tractors ............................................................................................ 297 2.20.4 Farm Bikes, Bike Trailers and Accessories. .................................... 298 2.20.5 Mowers, Toppers and Mulchers ....................................................... 300 2.20.6 Hay Making Equipment ................................................................... 302 2.20.7 Spray Equipment .............................................................................. 305 2.20.8 Tractor Transport Trays ................................................................... 308 2.20.9 Frontend Loaders / Forklifts............................................................. 309 2.20.10 Trailers ............................................................................................. 310 2.20.11 Silage Wagons / Forage Harvesters ................................................. 310 2.20.12 Grain Crushers ................................................................................. 311 2.20.13 Prill Applicators ............................................................................... 311

vii vii

2.21

2.22

2.23

2.24

2.20.14 Fertiliser and Manure Spreaders and Topdressers ........................... 312 2.20.15 Trucks and Utilities (Light Commercials) ....................................... 313 2.20.16 Cultivation Implements .................................................................... 314 2.20.17 Planting Implements......................................................................... 317 2.20.18 Harvesting Equipment ...................................................................... 319 2.20.19 Farm Bulldozers ............................................................................... 320 2.20.20 Grader Blades / Snow Ploughs ......................................................... 320 2.20.21 Other Farm / Orchard Equipment .................................................... 321 BUILDINGS and STRUCTURES ...................................................................... 328 2.21.1 Building Consent Charges................................................................ 328 2.21.2 Dairy Sheds ...................................................................................... 328 2.21.3 Stock Underpasses ........................................................................... 330 2.21.4 Off Paddock Infrastructure - Feed Pads / Wintering Pads and Barns / Stand-off Pads ...................................................................... 331 2.21.5 Deer Sheds ....................................................................................... 332 2.21.6 Woolsheds ........................................................................................ 332 2.21.7 Stockyards - Cattle ........................................................................... 333 2.21.8 Stockyards - Deer ............................................................................. 335 2.21.9 Stockyards - Sheep ........................................................................... 336 2.21.10 Greenhouses, Growing Tunnels and Tunnel Houses ....................... 337 2.21.11 Houses / Cottages ............................................................................. 343 2.21.12 Garages ............................................................................................. 343 2.21.13 Implement Sheds / Haybarns / Stock Shelters / Dog Motels ........... 343 2.21.14 Bridges ............................................................................................. 345 2.21.15 Grain Silos ........................................................................................ 346 2.21.16 Diesel Tanks ..................................................................................... 348 2.21.17 Killing Sheds .................................................................................... 348 2.21.18 Dangerous Goods Sheds .................................................................. 348 2.21.19 Building Materials ............................................................................ 349 SHELTER and FARM FORESTRY COSTS ..................................................... 351 2.22.1 Seedling Trees .................................................................................. 351 2.22.2 Forestry Establishment and Tending Costs ...................................... 353 2.22.3 Logging and Transportation Costs ................................................... 354 2.22.4 Tree Planting Equipment.................................................................. 354 2.22.5 Shelter / Windbreak / Shade and Weed Cloth .................................. 355 COMPUTERS ..................................................................................................... 357 2.23.1 Farmersâ&#x20AC;&#x2122; Requirements .................................................................... 357 2.23.2 Guidelines for Purchasing a Farm Computer ................................... 357 2.23.3 General Guidelines ........................................................................... 358 2.23.4 Hardware Prices ............................................................................... 359 2.23.5 Software Prices................................................................................. 361 APPENDIX: RATE of INFLATION in NEW ZEALAND 1891 to June 2018 . 364

viii viii

LIVESTOCK, CROPPING and HORTICULTURE INTRODUCING ENTERPRISE ANALYSIS 3.1

3.2

3.3

3.4

369

INTRODUCTION .............................................................................................. 371 3.1.1 Background ...................................................................................... 371 3.1.2 Agricultural Price Review ................................................................ 374 3.1.3 Resources ......................................................................................... 375 3.1.4 Use of Gross Margins....................................................................... 377 3.1.5 Beef and Lamb Information tools and portal ................................... 379 LIVESTOCK GROSS MARGINS ..................................................................... 380 3.2.1 Sheep Gross Margins ....................................................................... 381 3.2.2 Sheep â&#x20AC;&#x201C; Intensive Breeding Ewe Flock focused on meat production ........................................................................................ 382 3.2.3 Bull Beef .......................................................................................... 384 3.2.4 Dairy cow enterprise analysis .......................................................... 386 3.2.5 DairyNZ Annual Cash Budget ......................................................... 387 3.2.6 Dairy support / Dairy grazing enterprise analysis ............................ 390 3.2.7 Deer .................................................................................................. 395 3.2.8 Pig Gross Margins ............................................................................ 400 CROP GROSS MARGINS and associated financial analysis ............................ 404 3.3.1 Foundation for Arable Research ...................................................... 404 3.3.2 Irrigation calculations....................................................................... 404 3.3.3 Wheat ............................................................................................... 407 3.3.4 Barley ............................................................................................... 408 3.3.5 White clover (Red clover) ................................................................ 410 3.3.6 Perennial Ryegrass as a seed crop .................................................... 412 3.3.7 Field Peas ......................................................................................... 414 3.3.8 Vining Peas ...................................................................................... 415 3.3.9 Kale and Fodder Beet ....................................................................... 418 3.3.10 Fodder beet ....................................................................................... 419 3.3.11 Kale .................................................................................................. 421 3.3.12 Hybrid Carrot Seed Production ........................................................ 422 3.3.13 Maize ................................................................................................ 424 Enterprise analysis in Horticulture ...................................................................... 425 3.4.1 Kiwifruit ........................................................................................... 427 3.4.2 Pipfruit enterprise analysis ............................................................... 430 3.4.3 MPI Marlborough Vineyard Model ................................................. 438

ix ix

TAXATION 4.1 4.2 4.3

4.4 4.5

4.6

4.7 4.8

4.9

4.10 4.11

443

INTRODUCTION .............................................................................................. 445 Tax Legislation ................................................................................................... 445 4.2.1 Changes to Tax Law......................................................................... 445 THE INCOME TAX SYSTEM .......................................................................... 448 4.3.1 Overview .......................................................................................... 448 4.3.2 PAYE (Pay As You Earn) Tax on Personal Income ........................ 449 4.3.3 Provisional Tax System.................................................................... 452 4.3.4 Returns of Income ............................................................................ 460 4.3.5 Assessment of Tax ........................................................................... 461 4.3.6 Penalties ........................................................................................... 462 CALCULATING TAXABLE INCOME - OVERVIEW ................................... 464 4.4.1 Core Provisions ................................................................................ 464 CALCULATION OF TAXABLE INCOME - INDIVIDUALS ........................ 465 4.5.1 Overview .......................................................................................... 465 4.5.2 Assessable Income ........................................................................... 465 4.5.3 Exempt Income ................................................................................ 467 4.5.4 Deductions for Employees ............................................................... 468 4.5.5 Personal Tax Credits ........................................................................ 468 4.5.6 Working for Families Tax Credit ..................................................... 469 CALCULATING TAXABLE INCOME - COMPANIES ................................. 471 4.6.1 Imputation System ........................................................................... 471 4.6.2 Bonus Issues ..................................................................................... 472 4.6.3 Losses ............................................................................................... 472 4.6.4 Payments to Associated Persons ...................................................... 472 4.6.5 Dividends Received by Companies are Taxable .............................. 473 4.6.6 Qualifying Companies (QC’s) ......................................................... 473 4.6.7 Look-Through Companies (LTC’s) ................................................. 473 4.6.8 Repurchase of Shares by a Company ............................................... 473 CALCULATING TAXABLE INCOME - PARTNERSHIPS ........................... 474 4.7.1 Overview .......................................................................................... 474 4.7.2 Family Partnerships .......................................................................... 474 CALCULATING TAXABLE INCOME - TRUSTS.......................................... 475 4.8.1 Classification of Trusts .................................................................... 475 4.8.2 Liability for Income Tax (Complying Trusts) ................................. 475 4.8.3 Income Distributed to Minor Beneficiaries ...................................... 476 CALCULATING TAXABLE INCOME - FARMERS ...................................... 477 4.9.1 Farm Income .................................................................................... 477 4.9.2 Farm Expenses ................................................................................. 477 4.8.3 Deductions for Land Improvement Expenditure (Development Expenditure) ..................................................................................... 481 4.9.3 Depreciation ..................................................................................... 482 4.9.4 Income Equalisation Schemes.......................................................... 486 4.9.5 Valuation of Trading Stock .............................................................. 489 4.9.6 Farm Forestry and Timber Sales ...................................................... 497 4.9.7 Limitation of Tax Losses from Farming .......................................... 498 CALCULATING TAXABLE INCOME - HORTICULTURE .......................... 499 CALCULATING TAXABLE INCOME - FISHING INDUSTRY ................... 503 4.11.1 Fishing Quotas ................................................................................. 503 4.11.2 Income .............................................................................................. 503

x x

4.12 4.13

4.14

4.15

4.16

4.11.3 Deductible expenditure .................................................................... 503 4.11.4 Depreciation deductions ................................................................... 503 4.11.5 Repairs to fishing boats .................................................................... 504 4.11.6 Fishing gear ...................................................................................... 504 4.11.7 Income Equalisation Scheme ........................................................... 505 DISPOSITIONS OF RELATIONSHIP PROPERTY......................................... 506 FRINGE BENEFIT TAX.................................................................................... 507 4.13.1 General Provisions ........................................................................... 507 4.13.2 Definition of 'Fringe Benefit' ........................................................... 508 4.13.3 Value of Fringe Benefits .................................................................. 509 4.13.4 Calculation of Fringe Benefit Tax.................................................... 513 GOODS AND SERVICES TAX (GST) ............................................................. 516 4.14.1 Overview .......................................................................................... 516 4.14.2 Returns and Payment of GST ........................................................... 517 4.14.3 Calculating Output and Input Tax .................................................... 518 4.14.4 Recording GST................................................................................. 519 4.14.5 Tax Invoices ..................................................................................... 519 4.14.6 Auction Sales ................................................................................... 520 ACCIDENT COMPENSATION LEVY ............................................................ 521 4.15.1 Levies on Employers ........................................................................ 521 4.15.2 Levies on the Self-Employed ........................................................... 521 4.15.3 ACC Levy Rates 2018/19 ................................................................ 522 TAXATION APPENDICES ............................................................................... 523 4.16.1 2018/2019: Due Dates for the Payment of Provisional and Terminal Tax .................................................................................... 523 4.16.2 Rates of Income Tax ........................................................................ 524 4.16.3 Land and Aquaculture Development Expenditure Depreciation Rates ................................................................................................. 525 4.16.4 Values for Specified Livestock ........................................................ 528 4.16.5 Livestock Taxation Examples .......................................................... 537 4.16.6 Accrual Rules for Expenditure (Deductions for Prepayments) ........ 544 4.16.7 Accident Compensation Levies 2018-19 ......................................... 545 4.16.8 Economic Rates of Depreciation ...................................................... 547 4.16.9 ‘Old’ Schedule of Rates of Depreciation ......................................... 559 4.16.10 Working for Families Tax Credits 2019 .......................................... 564 4.16.11 MINIMUM FAMILY TAX CREDIT (MFTC) ............................... 567 4.16.12 PARENTAL TAX CREDIT (PTC) ................................................. 568 4.16.13 Amortisation Rates for Listed Horticultural Plants .......................... 570

INDEX

573

xi xi

PRODUCT PRICES

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

1.1

MARKET PRICES

1.1.1 Impact of Exchange Rate on Product Prices For pastoral farming, exchange rates can have a dominant effect on prices at the farmgate. 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. Products such as wool, where the proportion of the value added between farm and ship is low relative to other pastoral products, show the least leveraged effect of exchange rate movements. Mutton at the other extreme shows the highest leveraged effect. In times of currency volatility, low added value products minimise exposure to appreciation of the currency, but minimise potential gains to producers from currency depreciation. * f.o.b. - Free on Board (ship or aeroplane) Farmgate price change for 10% movement in trade-weighted exchange rate Depreciation Appreciation Wool +15% -12% Lamb +15% -12% Mutton +19% -16% Beef +14% -11% Note: The figures assume the appreciation or depreciation is effective for the whole season. Fluctuations of lesser duration will have lesser effects. Source: Beef + Lamb New Zealand Economic Service

3 3

1.1.2 Exchange Rate (i) Major Currencies and TWI to $NZ (2017/18) 2017/18

Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018

USA 0.7349 0.7311 0.7246 0.7062 0.6888 0.6953 0.7255 0.7312 0.7257 0.7258 0.6953 0.6941

Source: Reserve Bank.

UK 0.5656 0.5637 0.5451 0.5347 0.5211 0.5186 0.5252 0.5227 0.5196 0.5149 0.5156 0.5224

Aust 0.9434 0.9233 0.9089 0.9060 0.9034 0.9110 0.9122 0.9277 0.9343 0.9431 0.9239 0.9265

Japan 82.63 80.30 80.23 79.70 77.76 78.52 80.51 78.89 76.95 78.03 76.23 76.35

Euro 0.6383 0.6187 0.6084 0.6004 0.5872 0.5877 0.5949 0.5917 0.5881 0.5907 0.5876 0.5945

TWI 78.41 77.08 75.85 74.73 73.11 73.48 74.90 75.09 74.72 74.88 73.01 73.50

(ii) $US to $NZ (1974 to Jun 2018) 1.6 1.4 1.2

$US

1 0.8 0.6 0.4 0.2

19 74 19 76 19 78 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 20 16 20 18

Source: Reserve Bank.

1.2

SHEEP

1.2.1 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 June 2018. Weights shown are hot weights in kilograms. Weight (kg) GR mm Net / kg 9.0 - 13.9 3 - 15 $5.60 14.0 - 15.9 3 - 15 $7.50 16.0 - 17.9 3 – 15 $7.50 18.0 - 19.9 3 – 15 $7.50 20.0 - 21.9 3 – 15 $7.50 22.0 - 23.9 3 – 15 $7.45 24.0 - 25.9 3 – 15 $7.30 26.0 – 27.9 3 – 15 $5.75 28.0 + 3 - 15 $5.40 Less Beef + Lamb Levy 60 cents per head Lamb out of spec less $1.00 / kg Non QA Raising Claim Lambs less $0.50 / kg Condemned rate less $5 / head 1.2.2 Lamb Price (i) YM Grade (13.3 to 17.0kg); and All Grades 2013-14 2014-15 YM ($/hd)* 87.49 82.76 Carcase Weight (kg) 15.8 15.7 YM (¢/kg)* 555 527

2015-16 81.76 15.8 519

2016-17 89.48 15.8 566

2017-18e 103.68 15.8 656

All Grades ($/hd)* 100.04 93.92 93.48 106.44 122.00 Carcase Weight (kg) 18.3 18.1 18.3 18.6 18.5 All Grades (¢/kg)* 548 520 509 572 661 *Includes carcase, skin and wool e = estimate Note: 1. Average prices and weights at works, for year ended 30 September. 2. Figures may not add due to rounding. Source: Beef + Lamb New Zealand Economic Service

(ii) Actual and Inflation Adjusted Lamb Price. (YM Grade Export Lamb Price â&#x20AC;&#x201C; year end 30 September) Base year 2004/05. 120 100

$/hd

80 60 40

Actual

Inflation Adjusted

Source: Beef + Lamb New Zealand Economic Service (iii) Average net export price for heavy and medium lambs with a 1 kg woolly pelt (monthly averages, January 1988 to June 2018). 180 160 140

Medium

Heavy

$/Head

120 100 80 60 40 20

19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 20 16 20 18

Note: Until Oct 1993 categories were 13.5kg and 21kg. From Nov 1993 to June 1996 weights were 14kg and 18kg, from July 1996 weights were 15kg and 18kg. From 2001, weights were 15kg and 21.0kg. From July 2009 they were 15.5kg and 21kg. From June 2014 only 17kg lambs were featured. Briefly 19kg lambs featured Sept to Nov 2014 Source: NZ Farmer, Meat Matters and Straight Furrow / NZ Farmers Weekly, Interest.co.nz/rural, Lincoln University.

(iv) Prime Lamb/Hogget Prices - Local Trade (See Section 1.2.7) (v) Store Lamb Prices (See Section 1.2.8) 1.2.3 Lamb Skin Price trends 18 16 14 $/pelt

12 10 8 6 4 2 0

Source: Beef + Lamb New Zealand Economic Service 1.2.4 Live Lamb and Sheep Shipments From 2001 until 2003 approximately 36,000 live sheep were exported. Since 2007 there have been no live sheep exports.

7 7

1.2.5 Mutton Schedule (Export) The mutton schedule works in a similar manner to lamb (refer to Section 1.2.1). Below is a schedule from a meat company for a week in June 2018. Weight (kg) GR Net $ / kg Under 18.0 2 - 16mm $4.35 18.0 to 29.9 kg 2 - 16mm $4.85 30.0 to 34.9 kg 2 - 16mm $4.85 35.0 kg + 2 - 16mm $4.55 Less Beef + Lamb Levy 60 cents per head Mutton GR 17-25mm less $0.10 / kg Condemned mutton charge $5.00 / head Mutton out of spec less $0.30 / kg Rams 2 th (based on mutton) less $2.50 / kg 1.2.6 Mutton Price Net Value 21kg (carcase weight) ewe with a 0.5kg Pelt January 1989 to June 2018 120

$/Head

100 80 60 40 20

19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 20 16 20 18

Source: Meat Matters, Straight Furrow / NZ Farmer, and Interest.co.nz/rural. MX1 Grade ( <22kg) and "All Grades " 2013-14 2014-15 65.17 55.27 MX1 ($/hd)* Carcase Weight (kg) 20.4 20.2 MX1 (Â˘/hd)* 319 274

2015-16 2016-17 48.20 60.82 20.3 20.3 238 299

All Grades ($/hd)* 76.86 67.38 56.69 74.01 Carcase Weight (kg) 25.3 25.0 25.1 25.7 All Grades (Â˘/hd)* 303 269 226 288 *Includes carcase, skin and wool. e = estimate Note: 1. Average prices and weights at works, for year ended 30 September. 2. Figures may not add due to rounding. Source: Beef + Lamb New Zealand Economic Service

2017-18e 81.37 20.1 405 100.00 25.4 394

1.2.7 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) 2017: Prices represent ranges from the prime sales at each centre over a two-month period. (Average $ per head) Few hoggets were sold, so no information is given. Fielding Tuakau Canterbury Low High Low High Low High Jan/Feb Lambs $78 $93 $69 $90 $70 $89 Ewes $76 $107 $68 $103 $90 $120 Mar/Apr Lambs $83 $129 $75 $102 $80 $106 Ewes $79 $101 $71 $95 $80 $111 May/June Lambs $97 $113 $94 $97 $82 $115 Ewes $85 $129 $87 $101 $87 $111 July/Aug Lambs $112 $130 $84 $118 $107 $126 Ewes $142 $160 $78 $119 $112 $132 Sept/Oct Lambs $72 $126 $86 $107 $82 $120 Ewes $85 $111 $82 $130 $102 $138 Nov/Dec Lambs $68 $94 $57 $90 $67 $98 Ewes $72 $105 $100 $140 $78 $129 Note: The price range is the average price (of each type, over a number of sales) For Fielding, Tuakau, and Canterbury. Source: www.interest.co.nz/rural.

9 9

1.2.8 Ewe and Lamb - Store and Breeding Stock This information 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. (i) Average Prices for Store Stock (N.Z. Regions) Store Lambs ($/head) Northland/ East Coast Waikato/BOP 2010-11 72.25 85.49 2011-12 88.10 100.27 2012-13 46.82 58.72 2013-14 68.39 80.31 2014-15 59.41 69.69 2015-16 61.00 69.62 2016-17p 71.07 83.70 2017-18e 76.83 95.25

Taranaki Manawatu 93.42 103.54 65.24 84.06 74.19 70.24 89.35 104.08

Marlborough Canterbury 93.97 99.67 60.50 75.33 64.08 68.28 74.20 83.54

Otago Southland 81.86 104.23 70.67 73.01 73.07 63.75 79.38 80.61

Store Two-Tooth Ewes ($/head) Northland/ East Coast Waikato/BOP 2010-11 72.25 85.49 2011-12 88.10 100.27 2012-13 46.82 58.72 2013-14 68.39 80.31 2014-15 59.41 69.69 2015-16 61.00 69.62 2016-17p 71.07 83.70 2017-18e 76.83 95.25

Taranaki Manawatu 93.42 103.54 65.24 84.06 74.19 70.24 89.35 104.08

Marlborough Canterbury 93.97 99.67 60.50 75.33 64.08 68.28 74.20 83.54

Otago Southland 81.86 104.23 70.67 73.01 73.07 63.75 79.38 80.61

Store Mixed Age Ewes ($/head) Northland/ East Coast Taranaki Marlborough Otago Waikato/BOP Manawatu Canterbury Southland 2010-11 97.84 103.68 133.77 117.38 113.01 2011-12 143.73 144.01 144.73 147.06 158.99 2012-13 81.40 91.13 92.29 97.98 102.60 2013-14 92.83 115.40 106.85 108.95 117.32 2014-15 104.05 97.68 107.22 93.19 128.63 2015-16 86.97 90.06 86.35 105.15 120.00 2016-17p 92.71 90.65 113.55 107.34 109.21 2017-18e 117.79 162.52 165.11 150.81 120.04 Source: Beef + Lamb New Zealand Economic Service. p = provisional e = estimate

10 10

$/hd

(ii) N.Z. Average Purchase Price for Two-Tooth and MA Ewes 200 180 160 140 120 100 80 60 40 20 0

2T Ewes

MA Ewes

p provisional, e estimate, MA mixed age

Source: Beef + Lamb New Zealand Economic Services

11 11

1.3

WOOL

1.3.1 Wool Market Prices Shorn Wool Sales – Auction and Private (¢/kg clean) Month Merino MidFine Coarse Lamb Micron Crossbred Crossbred Indicator 2015 Jul 996 633 559 Aug 1,046 671 577 Sept 1,531 1,056 680 602 Oct 1,433 934 649 604 Nov 1,420 934 566 588 750 Dec 1,432 952 613 571 759 2016 Jan 615 568 751 Feb 599 572 709 Mar 590 574 651 Apr 566 555 620 May 576 567 618 Jun 856 563 546 569 1 2015-16 Auction 1,454 968 610 574 678 Month 2016

Merino

MidMicron 854 917 853 809 748 727

Fine Coarse Lamb Crossbred Crossbred Indicator 533 504 537 504 490 470 461 452 425 423 411 401 414 369 359 388 370 355 372 416 390 427 398 368 386 401 369 408 399 350 400 434 412 399

Jul Aug 1,539 Sept 1,502 Oct 1,519 Nov 1,592 Dec 1,588 2017 Jan Feb Mar Apr May Jun 1,548 818 2016-17 Auction1 1 simple average, not weighted Source: Beef + Lamb New Zealand Economic Service, Wool Services International

1.3.2 Wool Price Trends (i) Wool Market Indicator Prices. Monthly Price Indicators, Aug 2007 to June 2018 Price trends for four main segments of the New Zealand clip are shown on the graph below: Fine = 18 to 24 micron; Medium = 25 to 31; Strong = 32 to 41; Lamb = 31. 2500

Fine

Med

Strong

Lamb

cents / kg

2000 1500

1000 500 0

Note:

Gaps in 2010 and 2011 indicate no wool data available. From 2012 no fine wool prices were available. From May 2014 no lambsâ&#x20AC;&#x2122; wool data was available. Source: Straight Furrow / NZ Farmer, Interest.co.nz/rural, Lincoln University. Average Wool Value at f.o.b. (Â˘/kg clean) Fine Medium Strong 1998-99 737 432 362 1999-00 1,109 402 369 2000-01 1,543 519 405 2001-02 1,113 636 420 2002-03 1,462 718 443 2003-04 1,089 589 401 2004-05 992 534 387 2005-06 941 472 350 2006-07 1,225 514 341 2007-08 1,356 565 340 2008-09 1,103 488 332 2009-10 1,107 460 331 2010-11 1,601 880 548 2011-12 1,879 935 561 2012-13 1,518 873 422 2013-14 1,450 742 512 2014-15 1,326 818 542 2015-16 1,445 979 593 2016-17 1,556 822 420 2017-18e 1,945 863 336 e estimate, f.o.b. free on board Source: Beef + Lamb New Zealand Economic Service, Wools of New Zealand 13

Farmgate Wool Price before Freight Since the demise of the Wool Levy in April 2010 and its associated comprehensive wool statistics - the Sheep and Beef Farm Survey now provides consistent actual greasy wool price data on a consistent and continuing basis. 1,200 1,000 S.I High Country predominantly Fine Wool

¢/kg greasy

800 600 400 200

N.I. All Classes predominantly Strong Wool

p provisional, f forecast Source: Beef + Lamb New Zealand Economic Service (iii) Actual and Inflation Adjusted Wool Price All Wool f.o.b. Value – year end 30 June (base year 2004-05) 800 700

¢/kg

600 500 400 300 200 100 0

Actual

Inflation Adjusted

p provisional, e estimate, f.o.b. free on board Source: Beef + Lamb New Zealand Economic Service

14 14

1.4

CATTLE

1.4.1 Beef Price (i) Net Price paid for 270 / 295 / 300kg P2 Steer and 296kg / 300 / 320kg Bull. (Jan 1988 to Jun 2018)

2000 1800

P2 Steer

Bull

1600

$/Head

1400 1200 1000 800 600 400 200

19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 20 16 20 18

Source: Meat Matters, Straight Furrow / NZ Farmer, Interest.co.nz/rural, Lincoln University. (ii) Cow Beef Schedule (170-195 kg) 2013-14 2014-15 2015-16 M Grade (Â˘/kg) 271 400 392 M Grade ($/hd) 496 730 715 Prices are at works, for year ended 30 September. Source: Beef + Lamb New Zealand Economic Service (iii) Bull Beef Schedule (270-295 kg) 2013-14 2014-15 2015-16 M Grade (Â˘/kg) 394 505 518 M Grade ($/hd) 1,115 1,428 1,468 Prices are at works, for year ended 30 September. Source: Beef + Lamb New Zealand Economic Service

2016-17 413 753

2016-17 522 1,478

2017-18e 442 806

2017-18e 558 1,581

1.4.2 Cattle Prices - Prime Stock (Local Sales) Sales Information (three main sale centres) 2017: Prices represent ranges at each centre over a two-month period, and are cents/kg live weight Tuakau Frankton Canterbury Low High Low High Low High Jan/Feb Steers 261 362 233 321 247 333 Heifers 294 338 258 304 222 311 Cows 174 263 153 276 191 312 Mar/Apr Steers 297 351 273 336 248 325 Heifers 208 309 213 303 217 321 Cows 166 252 144 266 163 195 May/June Steers 243 317 265 317 278 308 Heifers 231 310 205 294 209 318 Cows 166 316 171 249 238 251 July/Aug Steers 281 355 227 323 218 336 Heifers 214 353 203 302 270 303 Cows 204 246 171 207 248 335 Sept/Oct Steers 238 355 285 376 250 350 Heifers 246 338 276 354 230 349 Cows 198 263 167 221 238 304 Nov/Dec Steers 203 353 264 359 250 320 Heifers 271 343 236 367 270 351 Cows 193 231 215 238 192 282 Note: The price range is the lowest and highest priced stock over a number of sales. LWT range for steers is 480-650+kg, heifers 350-480kg and cows 350-650kg. Source: www.interest.co.nz/rural

1.4.3 Store and Breeding Cattle Prices The following tables are a guide to the average prices paid for store and breeding cattle throughout the country. (i) Average Prices for Store Stock (N.Z. Regions) Store 2.5 Year Steers ($/hd) Northland/ East Coast Taranaki Marlborough Otago Waikato/BOP Manawatu Canterbury Southland 2010-11 987 824 888 752 1,099 2011-12 1,032 806 1,119 1,300 n.a. 2012-13 1,015 836 1,035 1,001 n.a. 2013-14 1,035 991 1,166 1,024 n.a. 2014-15 1,125 986 1,415 899 1,255 2015-16 1,245 1,155 1,388 945 n.a. 2016-17p 1,296 1,149 1,445 1,758 n.a. 2017-18f 1,301 1,243 1,449 n.a. n.a. Store 1.5 Year Steers ($/hd) Northland/ East Coast Waikato/BOP 2010-11 801 756 2011-12 817 840 2012-13 810 765 2013-14 797 725 2014-15 896 1,003 2015-16 1,059 939 2016-17p 1,075 1,088 2017-18f 1,086 1,139

Taranaki Manawatu 955 936 848 890 1,036 1,190 1,227 1,219

Marlborough Canterbury 727 834 759 746 794 1,018 1,527 1,510

Otago Southland 562 699 630 761 720 1,115 1,205 1,153

Store Weaner Steers ($/hd) Northland/ East Coast Waikato/BOP 2010-11 498 534 2011-12 584 578 2012-13 542 494 2013-14 532 579 2014-15 614 590 2015-16 730 698 2016-17p 726 676 2017-18f 740 724

Taranaki Manawatu 569 623 525 570 673 760 929 942

Marlborough Canterbury 597 561 475 502 533 732 745 775

Otago Southland 436 455 381 432 629 694 653 668

Store Weaner Heifers ($/hd) Northland/ Waikato/BOP 2010-11 479 2011-12 525 2012-13 425 2013-14 478 2014-15 518 2015-16 596 2016-17p 596 2017-18f 607

East Coast 494 646 432 459 556 636 764 777

Taranaki Manawatu 460 485 403 468 514 626 742 805

Marlborough Canterbury 558 596 432 446 452 615 763 781

Otago Southland 626 442 370 394 481 657 643 628

Store 1.5 year Heifers ($/hd) Northland/ Waikato/BOP 2010-11 625 2011-12 702 2012-13 717 2013-14 667 2014-15 793 2015-16 892 2016-17p 923 2017-18f 941

East Coast 695 728 683 593 764 770 837 860

Taranaki Manawatu 695 728 683 593 764 770 837 860

Marlborough Canterbury 721 724 674 736 703 930 1,541 1,520

Otago Southland 724 699 686 880 771 1,015 1,234 1,183

Marlborough Canterbury 711 729 782 651 964 704 942 1,200

Otago Southland 935 n.a. 441 1,000 971 1,202 1,203 n.a.

Store Cows ($/hd) Northland/ East Taranaki Waikato/BOP Coast Manawatu 2010-11 888 676 781 2011-12 845 888 934 2012-13 655 878 898 2013-14 762 896 957 2014-15 966 1,155 886 2015-16 895 1,165 1,325 2016-17p 982 1,125 1,361 2017-18f 1,018 1,240 1,536 p = provisional, e = estimate, n.a. = not available Source: Beef + Lamb New Zealand Economic Service

18 18

(ii) N.Z. Average Purchase Price for 18-Month Steers/Heifers 1,400 1,200

$/hd

1,000 800 600 400 200

1.5 Strs

1.5 Hfrs

p = provisional, f = forecast Source: Beef + Lamb New Zealand Economic Service

19 19

1.4.4 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 2018. 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 482 463 NB HERD OWNERS RECEIVE 65% OF THE AGREED VALUE North Island Small - Av Wgt Medium - Av Wgt Heavy - Av Wgt Beef Weaner to 160 kg 161 to 230 kg 230 kg+ Steers to 1year $4.00 $4.00 $3.80 Small - Av Wgt Medium - Av Wgt Heavy - Av Wgt Beef Weaner to 160 kg 161 to 220 kg 220 kg+ Hfrs to 1year $3.40 $3.40 $3.40 Small - Av Wgt Medium - Av Wgt Heavy - Av Wgt Beef Hfrs to 250 kg 300-380 kg 381 kg+ to 2 Years $2.80 $2.90 $2.90 Light - Av Wgt Small - Av Wgt Medium - Av Heavy 481 Beef Steers 300 â&#x20AC;&#x201C; 350 kg 351-420 kg Wgt 421-480 kg kg+ to 2yr $3.10 $3.15 $3.15 $3.10 Beef Breeding Small - Av Wgt Medium - Av Wgt Heavy - Av Wgt 2yr plus 350-400 kg 401-470 kg 470 kg+ (Cows) $3.20 $3.15 $3.15 NB: In calf cows depending on stage of pregnancy add $50-$70 per head Ylg Bulls - Av Aged Bulls 3yrs Beef Breeding 2 Yr Old Bulls Wgt 380 kg Av Wgt 800 kg Bulls - est avg Av Wgt 700 kg max value max value $2,200 live wgt $2,000 $1,200 NB: For young bulls check if insured Dairy Beef Weaner Friesian Bulls to 1yr

Small - Av Wgt to 120 kg $3.90

Medium - Av Wgt 121 to 180 kg $3.90

Heavy - Av Wgt 180 kg+ $3.80

Non Breeding Bulls (Friesian etc) 1 to 2yr

Small - Av Wgt 250-300 kg $3.00

Medium - Av Wgt 301 to 360 kg $3.00

Heavy - Av Wgt 360 kg+ $3.00

Friesian Steers to 1 yr

Small - Av Wgt to 120 kg $2.90

Medium - Av Wgt 121 to 180 kg $2.90

Heavy - Av Wgt 181 kg+ $2.80

20 20

R2 Friesian Steers

Small - Av Wgt 200-300 kg $2.75

Medium - Av Wgt 301 to 360 kg $2.75

Heavy - Av Wgt 360 kg+ $2.75

Dairy Cross to 1yr

Small - Av Wgt to 120 kg $3.50

Medium - Av Wgt 121 to 180 kg $3.50

Heavy - Av Wgt 181 kg+ $3.40

Dairy Cross to 2yr

Small - Av Wgt 200-300 kg $2.80

Medium - Av Wgt 301 to 360 kg $2.80

Heavy - Av Wgt 360 kg+ $2.85

$2.80

NB HERD OWNERS RECEIVE 65% OF THE AGREED VALUE – South Island Small - Av Wgt to Medium - Av Wgt Heavy - Av Wgt Beef Weaner 161 to 230 kg 230 kg+ 160 kg Steers to 1year $3.80 $3.50 $3.50 Small - Av Wgt to Medium - Av Wgt Heavy - Av Wgt Beef Weaner 160 kg 161 to 220 kg 220 kg+ Hfrs to 1year $3.40 $3.40 $3.30 Small - Av Wgt - Medium - Av Wgt Heavy - Av Wgt Beef Hfrs to 2 to 250 kg 300-380 kg 381 kg+ Years $2.70 $2.65 $2.60 Light - Av Wgt Small - Av Wgt Medium - Av Heavy Beef Steers to 300 – 350 kg 351-420 kg Wgt 421-480 kg 481 kg+ 2yr $3.00 $3.00 $2.80 $2.80 Small - Av Wgt Medium - Av Wgt Heavy - Av Wgt Beef Breeding 350-400 kg 401-470 kg 470 kg+ 2yr plus (Cows) $2.40 $2.40 $2.30 NB: In calf cows depending on stage of pregnancy add $50-$70 per head Beef Breeding Ylg Bulls - Av 2 Yr Old Bulls Aged Bulls 3yrs Bulls - estimated Wgt 380 kg Av Wgt 700 kg Av Wgt 800 kg av live wgt max value $1,200 $1,800 max value $1,900 NB: For young bulls check if insured Dairy Beef Small - Av Wgt to 120 kg $3.80

Medium - Av Wgt 121 to 180 kg $3.20

Heavy - Av Wgt 180 kg+ $3.00

Non Breeding Bulls (Friesian etc) 1 to 2yr

Small - Av Wgt 250-300 kg $2.60

Medium - Av Wgt 301 to 360 kg $2.60

Heavy - Av Wgt 360 kg+ $2.60

Friesian Steers to 1 yr

Small - Av Wgt to 120 kg $2.60

Medium - Av Wgt 121 to 180 kg $2.60

Heavy - Av Wgt 181 kg+ $2.60

Weaner Friesian Bulls to 1yr

R2 Friesian Steers Dairy Cross to 1yr steers

Small - Av Wgt 200-300 kg $2.60

Medium - Av Wgt 301 to 360 kg $2.50

Heavy - Av Wgt 360 kg+ $2.50

Small - Av Wgt to 120 kg $2.80

Medium - Av Wgt 121 to 180 kg $2.80

Heavy - Av Wgt 181 kg+ $2.50

Medium - Av Wgt Heavy - Av Wgt Small - Av Wgt 360 kg+ 301 to 360 kg 200-300 kg $2.50 $2.50 $2.60 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 482 463. Maximum Valuation Limits for Dairy TB Reactors Jersey and Other Friesian Friesian Cross Breeds Dairy Cross to 2yr steers

R1 Heifer calves Spring born 17

$1,050

R1 Heifer calves $1,275 Autumn born 17 R2 Heifers 16 born unmated / $1,000 / $1,700 PTIC R3 Heifers 15 born PTIC (1st $1,750 calving) MA Cows 2>8 $1,800 in milk MA Cows 9+yrs $1,000 in milk Forward $2,100 Contract Cows R1 Breeding $700 Bulls R2 Breeding $1,300 Bulls Breeding Bulls $1,500 R3+ Carry-over cows $1,450 PTIC Empty carry$950 over cows .Source: TBfree New Zealand.

$750

$1,050

$900

$1,275

$725 / $1,300

$1,000 / $1,700

$1,350

$1,750

$1,400

$1,800

$750

$1,000

$1,550

$2,100

$750

$600

$1,100

$1,050

$1,400

$1,200

$1,450

$700

$950

1.5

DAIRY PRODUCE

1.5.1 Price paid for Milksolids (i) Background. Up until the end of the 2000/2001 season, dairy farmers received payment from the New Zealand Dairy Board through a system of advance and final payouts via dairy companies. Seasonal supply dairy companies passed on the Dairy Board advance rate to their suppliers in addition to a margin based on dairy company efficiency, product mix and investment policies; together known as the total payout. 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 Cooperative Group Ltd, and for the Dairy Board to become a company and a whollyowned subsidiary of Fonterra. Further, the Act provided for the buy-out 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 all of the voting rights. The payments that Fonterra shareholding suppliers receive comprise a Milk Price (the price paid for raw milk supplied) and any Dividend declared by the Fonterra Board (distributable profit in respect of a financial year paid to shareholders in relation to shares held). To support suppliers’ seasonal cash flows, Fonterra advances a proportion of the forecast Milk Price for milk supplied each month. Typically, this proportion (known as the ‘advance rate’) increases throughout the season as full year returns become more certain, culminating with a final payment in October for the season which finished on 31 May the same year. (ii) Payments for Milksolids Supplied. Fonterra’s payments for milk (and advance rates) expressed in $ per kg of milksolids, represents the total money to be distributed to shareholders for the milksolids they supply the Co-operative when averaged over the total kg of milksolids supplied. This is not the actual amount paid for milk to individual shareholders, as actual payments are based on the composition of their individual raw milk. Standard payments for milk are calculated by the formula (a + b) + or - c where: a = cents per kg of the milkfat component contained in the milk b = cents per kg of the protein component contained in the milk c = volume adjustment in cents per litre of raw milk Payments for Fat and Protein (a + b) The splitting of the Milk Price into separate payment rates for fat and protein is dependent on two key parameters: 23 23

(a + b) + or - c where: a = cents per kg of the milkfat component contained in the milk b = cents per kg of the protein component contained in the milk c = volume adjustment in cents per litre of raw milk Payments for Fat and Protein (a + b) The splitting of the Milk Price into separate payment rates for fat and protein is dependent on two key parameters: The Valued Component Ratio (VCR) is the23ratio of the value of milkfat compared with the value of protein. It reflects the relative returns for fat and protein in the milk on the international market. This is set at the beginning of each season with the ratio for 2018/2019 being 1.30. This means that the payment for a kg of fat is 1.3 times (or 30% more) the payment made per kg of protein. The ratio between the fat and protein payment rates is held constant throughout the season (including the final payment) regardless of the advance rate paid. The Component Composition Ratio (CCR) is the ratio of the total amount of protein supplied to the company in the season versus the total amount of milkfat. For the 2018/2019 season this has been estimated as 0.7762. This means that for every kg of fat supplied, the company is expecting to receive 0.7762 kg of protein. This ratio is updated with the actual ratio at the end of the season when the figure is known. If the actual figure at the end of the season is greater than the initial estimate then the final fat and protein payment rates are both increased so that on average the company still pays the announced Milk Price. This has to occur because the company would be paying out on a greater quantity of protein than originally estimated, and because protein is paid for at a lower rate, the company would end up paying out less than the announced Milk Price. Conversely, if the actual composition ratio is less than the initial estimate, the final fat and protein rates are both reduced so that, on average, the company still pays the announced Milk Price. Volume Adjustment (+ or - c) The Volume Adjustment is used to adjust supplier payments depending on the milksolids content of their milk. The purpose of this adjustment is to reflect the higher operating costs and capital investment required when transporting and processing low concentration milk. Volume Adjustment is split into two parts: a Seasonal part, which is applied over the full season, and a Peak part, which is applied only over the peak period of September to December. The sum of the two parts gives a supplierâ&#x20AC;&#x2122;s Volume Adjustment. For each part, suppliers whose milksolids content for the relevant period is greater than the company average receive a positive adjustment for every litre of milk supplied. Conversely, if their milksolids content for the relevant period is less than the company average, they will receive a negative adjustment for every litre of milk supplied. Across Fonterra, this is a zero-sum calculation. Negative adjustments plus positive adjustments sum to zero.

As the company average milksolids contents (Seasonal and Peak) are not known until the end of the season, estimates are used until the actual numbers are known. For the 2018/19 season the initial estimates are 8.94% for the full season and 8.59% for the peak period. For each part, if the actual company average milksolids content at the end of the period is less than the estimate then suppliers paid a positive adjustment will receive a more positive adjustment and suppliers paid a negative volume adjustment will receive a less negative adjustment. Conversely if the actual company average is more than the initial estimate, suppliers paid a positive adjustment will receive a less positive adjustment and suppliers paid a negative volume adjustment will receive a more negative adjustment. Capacity Adjustment Further to the (a + b) +/-c formula, a capacity adjustment is also applied to the milk payment. The purpose of the capacity adjustment is to recognise that some suppliers who produce a greater than average volume of milk during the peak of the season relative to the rest of the season require a greater than average quantity of capital assets to process their milk (for example, processing plants and other capital investment such as tankers). Like the volume adjustment, the capacity adjustment is a zero-sum calculation across Fonterra. The Capacity Adjustment is integrated into the Milk Price which is made up of two parts: A Base Payment â&#x20AC;&#x201C; paid monthly at the prevailing Base Advance Rate as milk is supplied during the season. The Base Advance Rate will change throughout the season as the forecast Farmgate Milk Price is updated. A Capacity Adjustment Payment â&#x20AC;&#x201C; paid monthly for milk supplied in non-peak months of June to August and January to May. This payment is fixed at the start of each season. Each payment is calculated as follows: Base Payment = Total kg MS * Base Advance Rate per kg MS Capacity Adjustment Payment

Non-peak kg MS * Capacity Adjustment Payment per kg MS (Paid in non-peak months only)

Where:

Total kg MS: The total amount of milk supplied in any given month. Base Advance Rate per kg MS: The base part of the Milk Price which is paid for milk produced in all months of the season. This value is updated as the forecast Farmgate Milk Price gets updated throughout the season. The base rate is split on fat and protein. (c) Non-Peak kg MS: Milk Solids supplied in the non-peak months of June to August and January to May. (d) Capacity Adjustment Payment per kg MS: The $/kg MS rate paid in non-peak months. The payment is split on fat and protein. Its value is fixed for each season and for the 2018/19 season is $0.61 per kg MS. (a) (b)

25 25

The final Base Payment in October will adjust to ensure the Total Base Payments and Capacity Adjustment Payments reconcile to the final farmgate Milk Price i.e. there is no net gain or loss to Fonterra after paying for milk. Calculation of Payout Split Protein payment rate

Milkfat payment rate

(1+CCR) x Milk Price (VCR + CCR) (1+CCR) x Milk Price (CCR/VCR + 1)

Where: CCR = Component Composition Ratio (company protein to milkfat ratio) VCR = Valued Component Ratio (fat to protein value ratio) Example: Where the CCR is 0.7762, the VCR is 1.30 and the final Farmgate Milk Price is $7.00 per kg MS: Protein payment rate Milk fat payment rate

= = = =

(1+0.7762) x 7.00 (1.30 + 0.7762) 5.9885 $/kg (1+0.7762) x 7.00 (0.7762/1.30 + 1) 7.7851 $/kg

= 598.85 c/kg = 778.51 c/kg

The Base Advance Rate per kg MS and Capacity Adjustment Payment per kg MS are split similarly.

Supplier Payment Example Supplier details Litres Protein Milkfat (kg) (kg) 1,666,667 64,340 85,660 862,069 (peak) Company average milksolids Company protein to milkfat ratio

Milksolids Farm average (kg) Milksolids 150,000 9.00% 75,000 (peak) 8.70% (peak)

Farm protein to milkfat ratio 0.7511

8.94 % (full season), 8.59% (peak) 0.7762

Component Protein Milkfat

Quantity 64,340 kg 85,660 kg

Rate (cents) 598.85 / kg 778.51 / kg

Volume Adjustment - Seasonal

1,666,667 litres

([9.00-8.94] / 8.94) * 2.68 = 0.0180 / litre ([8.70-8.59] / 8.59) * 1.19 = 0.0152 / litre

Peak

862,069 litres

Total $ $385,300.09 $666,871.67

$299.78 $131.37

Total paid to supplier $1,052,602.91 Total paid per kg MS: $7.02 Company final Farmgate Milk Price: $7.00 In this example, a positive Volume Adjustment is paid because the farm’s average milksolids percentage is greater than the company’s average milksolids percentage for both the full season and over the peak period. The total paid per kg of milksolids is higher than the company final Farmgate Milk Price. This is because the farm’s protein to fat ratio is less than the company’s average (i.e. less protein has been produced per kg of milkfat compared to the company average). The company’s average milksolids percentage and protein to milkfat ratio are estimated at the beginning of the season and replaced with actual numbers at the end of the season. This impacts the split of the final payment into separate rates for milkfat and protein, and total volume adjustment paid for the season.

27 27

(iii) 2018/19 Forecast Payments. As at May 2018, the Fonterra advance rates for the 2018/19 season, corresponding to an opening Forecast Farmgate Milk Price of $7.00 per kg MS and Capacity Adjustment Payment of $0.61per kg MS, were as follows: Payment Month July 2018 August September October November December January 2019 February March April May June July August September October

Base Advance Rate $3.95 $3.95 $3.95 $4.30 $4.40 $4.45 $4.45 $4.75 $4.85 $5.00 $5.15 $5.30 $5.65 $6.00 $6.35 $6.70

Capacity Adjustment Payment $0.61 $0.61 $0.61 Peak Period $0.61 $0.61 $0.61 $0.61 $0.61 The Base Advance Rate payments (paid throughout the whole season) and the Capacity Adjustment payments (paid in non-peak months) total an average $7.00 Milk Price.

(iv) 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. Fonterraâ&#x20AC;&#x2122;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. Fonterra targets a dividend payment ratio of 65-75 per cent of adjusted Net Profit After Tax (NPAT) over time, meaning 25-35 per cent of NPAT is retained to be reinvested in the business. The Board has full discretion on the dividend level in any year, taking into account the level of payments made to date against the forecast Milk Price and the market conditions which Fonterra and farmers face.

1.5.2 Milksolids Price Trends 2016/17 2015/16 2014/15 Milk Price 6.12 3.90 4.40 ($ per kg MS) Dividend 0.40 0.40 0.25 ($ per Share) Total Cash Payout 6.52 4.30 4.65 ($) Retentions 0.06 0.11 0.04 ($ per share) *2017/18 finals have not yet been announced.

2013/14 8.40

2012/13 2011/12 5.84 6.08

0.10

0.32

8.50

6.16

6.40

0.00

0.14

0.10

1.5.3 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 on a daily basis. 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). The Company can impose a maximum of 12 demerit points on a supplying shareholder in any one collection day except, where inhibitory substances are involved, reject milk is supplied, or in the first ten days of a season where there is a maximum of 20 demerits per collection day. Generally, one demerit point means a 5% deduction from payments made from milk collected on that day. Fonterra carries out a number of Raw Milk Quality Tests. For details of the testing regime, the demerit points scheme please refer to the Fonterra Farmersâ&#x20AC;&#x2122; Handbook, or other dairy Companies Terms of Conditions of supply. 1.5.4 Premium Rates for Contract Winter Milk Fonterra contracts set quantities of winter milk with farms to ensure sufficient milk is available for regulatory and liquid market requirements. The vast majority of winter milk contractors have standard Fonterra contracts, committing to supply of a daily quantity (kilograms milksolids per day) from 15 May to 15 July in the North Island and 1 June until 31 July in the South Island. Suppliers are paid a premium for this winter milk, but are liable to pay damages to Fonterra for any shortfall in supply compared to their contract volume, within defined tolerances.

29 29

The North Island premium is paid as per the table below:

The South Island premium is paid as per the table below: (slightly different dates to the North Island).

This payment is based on a factory price and is subject to a transport differential which depends on the supplierâ&#x20AC;&#x2122;s location in relation to their accepting factory. There are tighter milk quality requirements for winter contract milk due to the nature of markets for this milk. Fonterra also offers winter premiums through Winter Premium Milk. This refers to milk supplied between May 15 and July 15 within certain North Island Winter Milk Regions and 1 June and 31 July within certain South Island Winter Milk Regions, which is not supplied under Winter Contract or any other specialty milk contracts. Winter Premium Milk has been designed to provide additional flexibility to suppliers to respond to the higher value Fonterra receives for milk collected during this period. Payments are structured as outlined below. North Island Winter Premium

South Island Winter Premium

Specialty Milks Further payments are available for suppliers of Organic and Stolle milk. These specialty milks all have varying pricing mechanisms. (ii) Average Payouts since 1973 in actual Dollars and in "Real" Dollars (based on the value of the dollar in December 2017 and adjusted for inflation). Figures are in $ per kg milksolids. 14.00 12.00

Nominal

Real

$ / KG

10.00 8.00 6.00 4.00 2.00 0.00

Note the 2017/18 figure is a forecast payout by Fonterra. Sources: New Zealand Dairy Board, Fonterra, Lincoln University

1.5.5 Sire Proving Scheme Rebates Livestock Improvement Corporation have contracted 200 farmers for the 2018 year as members of the Sire Proving Scheme. Members are located throughout the country and represent a cross-section of New Zealand's dairy industry. Each member signs a contract that spans four seasons, covering the memberâ&#x20AC;&#x2122;s responsibilities, including; mating 90% of their herd to LIC's current sire proving team, rearing the resulting heifer calves to first lactation as two year olds, keeping accurate herd records, herd testing four times, drafting heifers for weighing and Traits Other than Production (TOP) inspection. Where the contract has been completed successfully, LIC pay the member a rebate for each qualifying heifer. Rebate payments per qualifying heifer Self-Sample Herd Test Herd Test Assist Provided

SPS Contract Year 2011 $52 $62

2012 2013 2014 2015 2016 2017 2018 $62 $62 $62 $62 $62 $62 $62 $62 $62 $62 $62 $62 $62 $62

32 32

1.5.6 Dairy Cattle Sales (2018) Actual prices for Winter / Spring 2017 and estimates for 2018 for dairy cattle for five regions. Waikato Class Winter/Spring 2017 Autumn 2018 MA Cows High BW Friesian $1,850 – $1,950 $1,800 – $1,900 Cross Bred $1,850 – $1,950 $1,800 – $1,900 Jersey $1,850 – $1,900 $1,800 – $1,900 MA Cows Ave BW Friesian $1,500 – $1,600 $1,300 – $1,600 Cross Bred $1,500 – $1,600 $1,300 – $1,600 Jersey $1,350 – $1,450 $1,250 – $1,500 Rsg 2yr heifers Friesian $1,650 – $1,700 $1,350 – $1,500 $1,650 – $1,700 $1,350 – $1,500 Cross Bred Jersey $1,500 $1,400 Rsg 1yr heifers Friesian $550 – $700 $550 – $700 Cross Bred $550 – $700 $550 – $700 Jersey $450 – $600 $450 – $600 Note: Prices include a sales commission of approximately 7%. (BW = breeding worth) Revised BW from June 18 animal evaluation. Average mixed age/breed BW = 72 Taranaki Class MA cows Rsg 2yr heifers Rsg 1yr heifers 4 day hfr calves

Friesian Jersey Friesian Jersey Friesian Jersey Friesian Jersey

2016 $1,500 to $1,700 $1,100 to $1,300 $1,200 to $1,400 $900 to $1,100 $600 to $650 $400 to $450

Manawatu/Wairarapa Class MA cows Rsg 2yr heifers Rsg 1yr heifers Heifer calves

2017 $1,700-$2,000 $1,400-$1,600 $1,500.00 $1,300.00 $700-00 $550.00 $150.00 $70.00 Winter / Spring

2017 $1,350-$1,850 $1,200-$1,650 $1,100-$1,600 $900-$1,400 $750-$900 $600-$800 $150-$250 $50-$90

Friesian/x Jersey Friesian/x Jersey Friesian Jersey Friesian Jersey

2018 $1,800-$2,100 $1,400-$1,600 $1,700.00 $1,350.00 $750.00 $600.00 $150.00 $80.00

2018 est $1,400-$2,000 $1,300-$1,800 $1,200-$1,800 $1,000-$1,400 $850-$1,050 $700-$900 $150-$250 $50-$90

Canterbury Class MA cows

Friesian Jersey Rsg 2yr heifers Friesian Jersey Rsg 1yr heifers Friesian Jersey Heifer calves - per BW BW = breeding worth Southland Class MA cows

Friesian Jersey Rsg 2yr heifers Friesian Jersey Rsg 1yr heifers Friesian Jersey

2016 $1,000 to $1,500 $950 to $1,400 $850 to $1,350 $750 to $1,200 $550 to $650 $475 to $575 $1.00

Winter/Spring 2017 2018 $1,050 to $1,850 $1,200 to $2,150 $950 to $1,650 $1,000 to $1,950 $925 to $1,500 $1,200 to $1,750 $800 to $1,350 $900 to $1,450 $575 to $850 $650 to $925 $450 to $600 $450 to $600 $1.60 $2

Winter / Spring 2016 2017 $1,000 to $1,500 $1,100 to $2,000 $925 to $1,400 $1,000 to $1,800 $850 to $1,350 $950 to $$1,650 $750 to $1,200 $750 to 1,300 $550 to $650 $580 to $825 $450 to $550 $450 to $575

1.5.7 Dairy and Dairy-Cross Calves (Refer also to Sections 1.4.5 and 1.5.6). (i) Calves sold for rearing (Spring 2018): Canterbury Friesian bull calves sold for rearing 2012 $75.00 to $90.00 2013 $80.00 to $110.00 2014 $50.00 to $60.00 2015 $50.00 to $75.00 2016 $40.00 to $65.00 2017 $45.00 to $85.00 2018 est $65.00 to $110.00

34 34

2018 $1,200 to $2,100 $1,000 to $1,900 $1,250 to $1,800 $900 to $1,400 $625 to $900 $450 to $575

(ii) Bobby Calves sold at Tuakau 2015 and 2017 2015 Min/head Max/head Min/head January $100 $310 $40 February $30 $315 $80 March $10 $315 $20 April $10 $320 $70 May $10 $400 $40 June $10 $380 $15 July $10 $320 $70 August $10 $380 $75 September $10 $325 $70 October $10 $280 $70 November $10 $300 $70 December $10 $300 $30 Source: www.interest.co.nz/rural

2017 Max/head $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120

(iii) Bobby Calf Price at Farmgate: Blue Sky Meats Ltd – Prices are cents per kg hot carcass weight 2017 schedule Weight kg Price cents /kg Schedule Plus Premium $3.50/hd 0.00 – 7.00 0.00 $3.50 7.10 – 13.40 115 Per kg price +$3.50 13.50 – 15.90 170 Per kg price +$3.50 16.00 – 22.90 200 Per kg price +$3.50 23.00 – 32.00 245 Per kg price +$3.50 Note: cartage is paid by Blue Sky Meats (NZ) ltd Owner delivered calves receive $5 per calf credit on kill sheet

Schedule Plus Premium $5.00/hd $5.00 Per kg price +$5 Per kg price +$5 Per kg price +$5 Per kg price +$5

2016 Schedule had a change of format, below. Weight (kg) 0.0 - 8.9 9.0 - 13.4 13.5 - 18.4 18.5 - 32.0

Price (cents per kg) 0.00 100 190 200

Plus Schedule Plus - How It Works If Blue Sky Meats processes: > 15,000 calves you’ll be paid $1.25 above the schedule price for all calves supplied; > 30,000 calves = $2.50 above the schedule price; > 45,000 calves = $3.75 above the schedule price; > 60,000 calves = $5.00 above the schedule price.

35 35

Blue Sky Meats: Weight Range (kg) up to 7.0kg 7.5 – 13.5 7.1 - 13.5 7.0 - 13.5 13.6 – 16.0 16.1 – 19.0 16.1 – 22.9 13.6 – 19.0 19.1 – 22.9 23.0 – 26.9 23.0 - 33.0 23.0 and over 27 kg and over

2011 100 152 200 234 252 -

2012 100 150 205 225 235 255 -

2013 100 155 215 240 265 -

2014 192 172

2015 120

216

170 250

233

260

255

270

(iv) Heifers sold for Live Export: China remains the only significant live export dairy heifer market and there have been no sales of dairy heifers into the Mexico/Central Americas markets. The Holstein Friesian (F12-F16) is the breed of preference although there have been exports of Jersey heifers to some of the more specialised Buyers. During the peak of the supply/demand wars in the latter part of 2014 there were a number of crossbreed cattle exported however this appears to have been a one-off marketing opportunity. The Seller needs to provide three generation ancestry records for each individual animal and must also meet the very stringent conditions required in the import health protocols. On the back of general slowdown in the development of dairy farms and along the global dairy trade downturn the numbers shipped and the prices that the Buyers are prepared to pay have declined greatly on a year-by-year basis. Year

2014 2015 Jan-Dec Jan-Dec 215,405 131,702

2016 2017 Jan-May Jan-Dec 45,734 n/a

2018 Jan to Jun n/a

Total China Imports (Breeding Cattle) New Zealand Exports to China (based on month of 79,775 23,849 11,589 arrival in China) NZ % of Total Imports 37.03% 18.11% 25.34% Source: China Customs The farmgate prices have dropped considerably from what was an all-time high in 2014. During the export supply period of 2015 and 2016 the price for 10/12 month Holstein Friesian F12+ was in the vicinity of $750 gross, and $950 gross for 14/15 month Heifers. Currently for 2018 there are no orders but an estimate price would be $800 - $900 for 10/12 month Holstein Friesian heifers. For 14/15 month heifers, prices are around $1,000 but the current problem is supply, with local market prices being higher. It is worth noting here that Angus heifers are also being sent to China. Source: PGG Wrightson / Carrfields 2017-2018.

37 37

1.5.8 Dairy Beef Weaners Refer also to Section 1.4.5 Canterbury 2012 2013 2014 2015 2016 2017 2018 Southland Weaner Friesian bulls Weaner Beef cross bulls (100kg) Weaner Beef cross heifers (100kg)

100kg Friesian bull calves $280.00 to $320.00 $240.00 to $290.00 $230.00 to $260.00 $340.00 to $365.00 $360.00 to $385.00 $370.00 to $425.00 $390.00 to $480.00 2016 $350 - $380 $400 - $475 $360 - $400

1.5.9 Cow Beef Refer to Section 1.4.1 for Beef Price Trends. 1.5.10 TB Compensation See Section 1.4.4

38 38

2017 $370 - $420 $425 - $500 $370 - $415

2018 $385 - $440 $460 â&#x20AC;&#x201C; $550 $400 - $450

1.6

DEER PRODUCTION

1.6.1 Venison Price Trends (i) Average Schedule Price 60 kg AP Stag. Prices are $ per kg gross 2012 2013 2014 2015 Jan $7.98 $6.62 $6.37 $6.32 Feb $7.38 $6.39 $6.22 $6.29 Mar $7.14 $6.38 $6.19 $6.27 Apr $7.07 $6.35 $6.18 $6.29 May $7.10 $6.35 $6.18 $6.30 Jun $7.29 $6.42 $6.18 $6.37 Jul $7.44 $6.69 $6.20 $6.71 Aug $7.57 $7.17 $6.76 $7.36 Sep $7.76 $7.41 $7.53 $8.46 Oct $7.92 $7.39 $7.74 $8.60 Nov $7.50 $7.12 $7.44 $8.16 Dec $6.91 $6.64 $6.65 $7.31

2016 $7.13 $7.26 $7.37 $7.38 $7.38 $7.59 $7.59 $7.87 $8.54 $8.82 $8.25 $7.85

2017 $7.83 $8.03 $8.15 $8.23 $8.37 $8.65 $9.05 $9.38 $9.65 $9.73 $9.99 $10.12

2018 $10.30 $10.66 $10.75 $10.77 $10.80

(ii) Venison Schedule prices 2008 to 2018 Prices are $ per kg gross 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18ytd $8.68 $7.44 $7.60 $8.06 $6.93 $6.60 $6.68 $7.58 $8.59 $10.16 Note: The figures are based on the average weekly schedule for the year ending June. Source: Deer Industry New Zealand (iii) Average Schedule Price for AP Grade (60 kg stag) 1988 to May 2018. 700 600

$/Head

500 400 300 200 100 0 88 9 90 9 92 9 94 9 96 9 98 0 00 0 02 0 04 0 06 0 08 0 10 0 12 0 14 0 16 0 18 19 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2

Source: The Deer Farmer, Straight Furrow / NZ Farmer, Lincoln University, Deer Industry New Zealand 39

(iv) Average Schedule Price for AP Grade (45kg / 50kg hind) 1991 to May 2018. 600 500

$ / Head

400 300 200 100 0

Weight went from 45 to 50 kg in early 2002, back to 45kg at the end of 2003, Dec 2005 back to 50kg again. Prices are gross figures. Source: The Deer Farmer, Straight Furrow / NZ Farmer, The NZ Farmers Weekly, Lincoln University 1.6.2 Deer Live Sales 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 â&#x20AC;&#x201C; in fawn. Livestock prices for each season from 2013 to 2017 are shown below. Red Deer $/head 2013 2014 2015 2016 2017 Weaner hinds 150 to 180 150 to 180 170 to 200 200 to 230 230 to 250 Rising 2yr hinds 425 to 450 425 to 475 450 to 500 550 to 600 575 to 650 Mixed age hinds 450 to 475 450 to 475 450 to 500+ 575 to 625 625 to 700 CFA hinds* 350 350 375 400 475 Weaner stags 180 to 200 180 to 200 180 to 220 230 to 275 250 to 300 Rising 2yr stags 650 650 650 700 750 (velvet potential) MA velveting 850+ 850+ 850+ 850+ 900+ stags Breeding stags 3000 3000 3000 4000 4500 *cast for age Weaner red deer can also be purchased on a per kilogram live weight basis. $/kg live weight 2013 2014 2015 2016 2017 Weaner hinds 3.25 to 3.75 3.25 to 3.75 3.50 to 3.80 4.00+ 4.30 Weaner stags 3.50 to 4.25 3.50 to 4.25 3.50 to 4.30 4.30 to 4.75 4.50 to 5.00

Wapiti and Wapiti cross 2013 150 to 200 475+ 475+ 200+ 650

Weaner hinds Rsg 2yr hinds MA hinds Weaner stags Rsg 2yr stags (velvet) MA velveting 850+ stags Breeding stags 3,500 Source: PGG Wrightson.

$/head 2014 150 to 200 480+ 500+ 200+ 650+

2015 180 to 220 500+ 525+ 230+ 700+

2016 250+ 600+ 650+ 250 to 300 750+

2017 300+ 650+ 700+ 300 to 350 800+

850+

900+

950+

1,000+

3,000

3,500

4,000

4,500

1.6.3 Velvet Due to increased sensitivity about pricing information we were only able to get total weighted averages. Estimated Weighted Average Farmgate Price of New Zealand Deer Velvet $/kg 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17e 2016/17 2017/18e 86.12 95.70 103.50 117.50 120.00 100.00 97.50 127.50 Source: Deer Industry New Zealand 1.6.4 T.B. Compensation Subject to certain criteria, compensation is payable to the owners of deer 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 2018. 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 482 463 NB HERD OWNERS RECEIVE 65% OF THE AGREED VALUE Red Wapiti X Wapiti Venison EBV Red Weaner $ per kg $ per kg $ per kg $ per kg (47-65kg LW) (50-75kg LW) (60-85kg LW) (50-75kg LW) Weaner Hind (3 to 6 mths) n/a n/a n/a n/a Weaner Stag (3 to 6 mths) n/a n/a n/a n/a Red Wapiti X Wapiti Venison EBV Yearling $ per kg $ per kg $ per kg Red $ per kg (60-85kg LW) (65-100kg LW) (70-110kg LW) (65-100kg LW) Yearling Hind (7 to 12 months) $6.00 $6.20 $6.10 $6.20 Yearling Stag (7 to 12 months) $6.20 $6.50 $6.50 $6.50

41 41

Rising 2yr Maiden Hind Rising 2yr Maiden Hind (13 to 15 month) Rising 2yr 1st calving Hind: PTIC Rising 2yr 1st calving Hind: PTIC Rising 2yr 1st calving Hind: Not pregnant Rising 2yr Hind RW Stag Rising 2yr Hind RW Stag (16-17 months) Rising 1yr Spiker Stag Spiker Stag: Rising 1yr Velvet Stag: 12-24 months Velvet Stag: 12-24 months Breeding Hind: Empty Breeding Hind under 4 years: Empty Breeding Hind 4 years plus: Empty Breeding Hind: PTIC Breeding Hind under 4 years: PTIC. Breeding Hind 4 years plus: PTIC. MA Velvet Stag MA Velvet Stag

Red $ per kg (75-90kg LW)

Wapiti $ per kg (90-130kg LW)

$6.00 Red $ per kg (90-110kg LW)

$6.20 Wapiti $ per kg (100-130kg LW)

$7.40

$7.60

$6.20

Red $ per kg (85-95 kg LW)

Wapiti $ per kg (95-120kg LW)

$7.80

$8.00

Red $ per kg (70-110kg LW) $6.15 Red 1.8-4.0kg velvet $ per kg (110-180kg LW) $6.70

Wapiti $ per kg (80-115kg LW) $6.15 Wapiti 2.0-5.0kg velvet $ per kg (120-220kg LW) $6.70

Red $ per kg (95-115kg LW)

Wapiti $ per kg (120-150kg LW)

$6.10

$6.05 Red $ per kg (95-115kg LW)

$6.05 Wapiti $ per kg (120-150kg LW)

$7.00

$6.80

Red 3.0-6.0kg velvet $ per kg (200-280kg LW) $7.00

Wapiti 3.0-7.0kg velvet $ per kg (220-350kg LW) $7.00

1.7

GOAT PRODUCTION

1.7.1 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. 1.7.2 Goat Meat Prices (Chevon) Schedule Prices - these prices are a guide only and are subject to change. Prices are for a week in June 2018. Weight Range kg Net $ 6.1 – 9.0 $2.20 9.1 – 18 $3.10 18.1 – 21.0 $2.90 21.1+ $1.80 Less Meat inspection charges $1.92/head Less Transport $1.50/head 1.7.3 Goat Milk 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

$19.00 per kg of milksolids $18.50 per kg of milksolids $18 per kg of milksolids $18 per kg of milksolids $18.50 per kg of milksolids $20 forecast per kg of milksolids

Payment for milk for processing has ranged from $12.60 - $16.00 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 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.

1.7.4 Goat Fibre (i) Mohair Sales The following are the average pool prices ($NZ per kg fleece) for mohair as at December in each year: Grade 2011/12 2012/13 2013/14 2016 A O Super Fine Kid (ASFK0) $30.00 $32.00 $37.00 $30.00 A Super Fine Kid (ASFK1) $21.00 $22.00 $25.00 $24.00 B Super Fine Kid (BSFK1) $18.00 $20.00 $25.00 $20.00 A O Kid (AK0) $21.00 $22.00 $25.00 $25.00 A Kid (AK1) $16.00 $18.00 $20.00 $17.00 A 2nd Kid(AK2) discontinued $7.00 A O Young Goat (AYG0) $15.00 $18.00 $19.00 $14.00 Grade 2009/10 A Young Goat (AYG1) $10.00 A 2nd Young Goat (AYG2) $6.00 B O Kid (BK0) $16.00 B Kid (BK1) $15.00 B O Young Goat (BYG0) $14.00 B Young Goat (BYG1) $9.00 B 2nd Young Goat (BYG2) $7.00 A Xbred Young Goat (AXBYG) $5.00 A O Adult (AH0) = (FAH) $10.00 A Adult (AH1) $8.00 BO Adult (BFH) $8.00 B Adult (BH1) 7.00 A 2nd Adult (AH2) $7.00 Strong Adult (SAH) Inferior (XXB3) $2.50 Stained Mohair (STN) $4.50 Heavily Stained Mohair (HSTN) $3.00 Cotted (COTT) $3.50 Coloured Mohair (COLMO) $4.00 Source: Ohuka Farms Ltd/ Mohair division

44 44

2011/12 $11.00 $7.00 $18.00 $10.00 $15.00 $9.00 $9.00 $6.00 $11.00 $9.00 $9.00 $8.00 $8.00

2012/13 $12.00 $8.00 $19.00 $15.00 $18.00 $10.00 $9.00 $8.00 $11.50 $9.00 $9.00 $9.00 $8.00

2013/14 $12.00 $8.00 $21.00 $15.00 $20.00 $10.00 $9.00 $8.00 $12.00 $9.00 $11.00 $9.00 $8.00

$2.50 $6.00 $3.00 $6.00 $4.00

$3.50 $8.00 $5.00 $7.00 $4.00

$4.00 $9.00 $6.00 $9.00 $4.00

2018 $37.00 $25.00 $29.00 $26.00 2018

$25.00

$23.00 $21.00 $20.00

Prices are $NZ per kg fleece. An international shortage of Mohair means that there are some good niche markets opening: Grade Jun 2018 ASFKOW $33.00 AFKOW $29.00 AKOW $28.00 AFYGOW $23.50 AYGOW $22.00 A O Super Fine Kid (ASFK0) $29.00 A O Fine Kid (AFK0) $26.50 A O Kid (AK0) $26.00 B O Kid (BK0) $24.00 C Kid (CK) $12.50 A O Fine Young Goat (AFYG0) $22.00 A O Young Goat (AYG0) $20.00 B O Fine Young Goat (BFYG0) $19.00 B O Young Goat (BYG0) $18.50 C Young goat (CYG) $11.00 A O Fine Adult (AFH0) $18.00 B O Fine Adult (BH0) $13.00 A Strong Adult (ASH) $13.00 B 1 Strong Adult (BH1) $7.00 C Fine Adult (CFH) $9.20 X Bred Mohair (XBD) $2.00 Cotted (COTT) $6.00 Heavy Cotted (HCOTT) $4.00 Stained Mohair (STN) $8.50 Heavily Stained Mohair (HSTN) $3.50 VM (VEG) $5.00 Dag (DAGS) $1.00 Source: Mohair Pacific Ltd. 1.7.5 Goat Livestock Sales Typical prices from 2014 to 2018 are in the tables below. Most sales now are direct between buyers and sellers and negotiated directly. Angora $/head 2014 2016 2018 Does NZ Angora two-tooth Adults 80 to 200 80 to 200 80 to 200 NZ Angora mixed age 50 to 100 50 to 100 80 to 120 Kids 60-80 60-80 60 to 100 Bucks NZ Angora two-tooth Adults 200 to 1000 200 to 1,000 200 to 1,000 Wethers Adults 40 to 60 40 to 80 40 to 80 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. 45 45

Boer

2015/2016 2017/2018 $/head $/head Full Blood Does Adults 200 to 750 200 to 800 Hoggets 200 to 400 200 to 400 Bucks 2 tooth 300 to 800 400 to 1,500 Purebred Does Adults 200 to 300 200 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 Crossbred Wethers Adults 50 to 80 50 to 100 Hoggets 40 to 60 40 to 80 Feral Does Adults 40 to 60 40 to 60 The demand for full blood registered does has increased due to demand coming from export. This has lifted values. There is a steady inquiry for registered does from various parts of the world, looking for new genetics.

46 46

1.8

PIG PRODUCTION

1.8.1 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. A typical schedule from May 2018 is presented here. Section 3 in this manual provides further information on pig production. CODES Fat Measure 1 6 -9mm 2 10-12mm 3 13-15mm 4 16 -18mm 5 19 -21mm 6 22 -24mm 7 over24mm Y grade

A under 35.0 kg 315 315 185 135 135 135 135 265

B 35.1 to 40.0 kg 355 355 185 135 135 135 135 280

C 40.1 to 45.0 kg 355 355 185 135 135 135 135 280

CODES Fat Measure

D 45.1 to 50.0 kg 355 355 185 135 135 135 135 280

E 50.1 to 55.0 kg 355 355 225 135 135 135 135 280

F 55.1 to 60.0 kg 335 335 300 205 135 135 135 300

G H I J K L 60.1 to 65.1 to 70.1 to 75.1 to 80.1 to 85.1 to 65.0kg 70kg 75.0kg 80.0kg 85.0kg 90.0kg 1 6 -9mm 335 335 335 330 315 260 2 10 -12mm 335 335 335 330 315 260 3 13 - 15mm 310 310 310 300 285 230 4 16 - 18mm 205 205 205 200 200 200 5 19 - 21mm 145 145 145 140 140 140 6 22 - 24mm 135 135 135 130 130 130 7 over 24mm 135 135 135 130 130 130 Y grade 300 300 300 300 275 225 Y grade = One carcass fault Carcasses over 90kg are paid at chopper price, which is $2.00/kg (head, skin and feet off). Deductions (per pig): Pork Industry Board Levy MPI (MAF) Inspection Fee MPI (MAF) Pigcheck Total

$3.38 $3.06 $0.20 $6.64

Regional Schedule Prices Auckland/Waikato $/kg Pork (D1) 3.55 to 3.65 Bacon (H2) 3.55 Choppers 1.55 to 1.65

Manawatu $/kg 3.50 to 3.60 3.40 to 3.50 1.55 to 2.00

Canterbury $/kg 3.45 3.25 2.00

Note: Prices are quoted for the D1 schedule (45.1 to 50.0 kg weight range, 6 to 9 mm back fat) and the H2 schedule (65.1 to 70.0 kg carcass weight range, 10 to 12 mm back fat). Prices do not account for the volume or quality premiums, available from many buyers.

Source: Pork Outlook, June 2018.

1.8.2 Average Pigmeat Returns 1987 to 2018 The following are average monthly return for pigs, on a per kg basis, sold in three regions from 1987 to May 2018 (D1 Pork and H2 Bacon). (i) Auckland / Waikato 4.8 Pork

Bacon

4.3 3.8 $/kg 3.3

2.8

19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17

2.3

Source: NZ Pork Industry Board

(ii) Manawatu 4.8 Pork

Bacon

4.3 3.8 $/kg 3.3 2.8

19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17

2.3

Source: NZ Pork Industry Board (iii) Canterbury 4.7 Pork

Bacon

4.2 3.7 $/kg 3.2 2.7

19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17

2.2

Source: NZ Pork Industry Board

1.8.3 Live Pig Price Trends South Island 2014/15 $ per head Weaners - small 60 to 70 - medium 90 to 100 - large 100 to 110 Slips 110 to 115 Stores - large 115 to 125 - small Porkers - heavy 180 to 200 - light 140 to 155 Bacon - heavy 260 to 280 - light 215 to 245 Sows No sales Choppers - heavy 260 to 280 - light 200 to 230 In Pig No sales Sows

2015/16 $ per head 60 to 70 90 to 100 100 to 110 110 to 115 115 to 125 180 to 200 140 to 155 260 to 280 215 to 245 No sales 260 to 280 200 to 230 No sales

2016/17 $ per head 50 to 60 60 to 70 70 to 80 80 to 90 95 to 100 160 to 175 120 to 135 210 to 225 185 to 200 No sales 260 to 280 160 to 225 No sales

2017/18 $ per head 50 to 60 60 to 70 70 to 80 80 to 90 95 to 100 160 to 175 120 to 175 210 to 225 185 to 200 No sales 260 to 280 160 to 225 No sales

- small - medium - large

2014 $ per head 20 to 35 40 to 68 75 to 110

2015 $ per head 30 to 40 50 to 70 75 to 120

2016 $ per head 30 to 40 50 to 70 75 to 120

2017 $ per head 25 to 35 40 to 75 75 to 110

- large - small - heavy - light - heavy - light

85 to 110 65 to 90 135 to 175 115 to 135 170 to 225 160 to 170

90 to 115 70 to 95 135 to 180 115 to 130 180 to 220 160 to 170

95 to 120 80 to 95 145 to 185 115 to 135 180 to 240 160 to 175

North Island Weaners Slips Stores Porkers Bacon Sows Choppers

- heavy - light

170 to 225 170 to 240 170 to 240 150 to 230 125 to 160 100 to 150 100 to 150 100 to 140 Mated Sows 210 to 320 260 to 350 260 to 350 250 to 330 The trend over most years shows a drop in prices from January to March, levelling through to August, and then increasing through to Christmas. Source: PGG Wrightson

1.9

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 long-term 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. 2012 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 but it remains to be seen how this will develop.

1.10 CROPS 1.10.1 Wheat (i) Contract prices Milling Wheat - South Island Contracts for 2019 Contracts delivered to Champion Flour Mills. Protein % $ per tonne $ per tonne $ per tonne Premium: Milling: Gristing: Duchess, Discover, Saracen, Sensas, Raffles, Hanson, Conquest, Crwt235 Sage Reliance, Viceroy, Crwt218 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 Premium Milling Gristing Soft (Biscuit) Mauri anz Premium Milling Gristing Soft (Biscuit)

Protein % 12.8% + 12.8% + 11% +

Price / tonne $449 $434 $410 $410

12.5% +

$430 $420 $410 -

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 is paid from 1st May 2019. . 52

Soft Wheat - South Island Contracts Contract price for wheat delivered to Champion Flour Mills in 2019 will be $410 per tonne. A storage increment of 8 cents per tonne per day is paid from 1st May 2019 Feed Wheat PGG Wrightson: Delivered Chch / Ash / Tim 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 Prices fell from $350 to $275 2016 / 2017 $300 2017 / 2018 $300 - $400 2018 / 2019 $370 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. See Section 2.10.11 for details. (ii) Wheat Price Trends New Zealand Milling Wheat Prices 1973 to 2019 (Harvest Years) The "Nominal" prices are the contract price paid to South Island growers at harvest in each year. The "Real" prices are based on the value of the $NZ in June 2018 and are adjusted for inflation using C.P.I. figures, for each calendar year, as published by the Reserve Bank of New Zealand. 1600 Nominal Real

1400 1200 1000 800 600 400

200 0

Source: Lincoln University.

1.10.2 Barley (i) 2018 Contract Prices: Malting Malteurop New Zealand Ltd: NI = Delivered to Marton SI = Delivered to Ashburton N Is Year Price / tonne at 0% Price / tonne at 14% moisture 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 n/a $450 2017/2018 S Is Year Price / tonne at 0% Price / tonne at 13% moisture 2010/2011 $385.06 $335.00 2011/2012 $482.76 $420.00 2012/2013 n/a $420.00 2013/2014 n/a Jun $400 / Jul $400 / Aug $425 2014/2015 Jul $500 Jun $440 / Jul $435 / Aug $425 2015/2016 n/a $385 2016/2017 n/a $310 n/a $370 2017/2018 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 shall 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) 5% Skinned and broken 5% Growth splits 3% 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% Editorâ&#x20AC;&#x2122;s comment. Malting barley prices as a guideline only, are around $40 to $60 per tonne above feed barley prices.

54 54

Seed Malteurop New Zealand Ltd South Island seed contract price for 2016 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) st nd 1 to 2 generation $45 per tonne premium (MD) (ii) Barley Price Trends 1973 to 2018 In the following two graphs the "Nominal" prices are the contract prices paid to South Island growers at harvest each year. The "Real" prices are based on the value of the $NZ in June 2018, and are adjusted for inflation using C.P.I. figures for each calendar year, as published by the Reserve Bank of New Zealand. N.Z. Malting Barley Prices 1973 to 2018 (Harvest Years): 1600 Nominal

1400

$ / tonne

1200 1000 800 600 400 200 0

Source: Lincoln University

55 55

Real

Feed Barley PGG Wrightson: Delivered Chch / Ashburton / Timaru Contract price per tonne 2003 $260.00 2004 $230.00 2005 $235.00 2007 / 2008 $300.00 2008 / 2009 $400.00 2009 / 2010 $260.00 2010 / 2011 $380.00 2011 / 2012 $380.00 2014 / 2015 $390 - $400 2015 / 2016 $320 - $250 Prices fell from $320 to $250 2016 / 2017 $250 - $280 2017 / 2018 $300 - $400 2018 / 2019 $360 N.Z. Feed Barley Prices 1973 to 2018 (Harvest Years): 1600 1400

Nominal

$ / tonne

1200 1000 800 600 400 200 0

Source: Lincoln University.

Real

1.10.3 Oats A South Island contract price delivered to Dunedin: Contract price per tonne 2008 $340.00 2009 $500.00 2010 $410.00 2011 approximate $380.00 2012 $460.00 2013 Base price $450.00 2014 Base price $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. 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 PGG Wrightson: 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 buyerâ&#x20AC;&#x2122;s nominated consolidation points at Ashburton, Christchurch or Timaru. 57

1.10.4 Peas (i) Field Peas Prices offered for peas in bulk, grown under contract, delivered: Maple Peas $850/t in 2008/2009 $700/t in 2009/2010 $700/t in 2010/2011 $600/t in 2011/2012 $650/t in 2012/2013 $650/t in 2013/2014 $650/t in 2014/2015 $650/t in 2015/2016 $600/t in 2016/2017 $650/t in 2017/2018 Prussian / Blue Peas

$600/t in 2009/2010 $600/t in 2010/2011 $550/t in 2011/2012 $600/t in 2012/2013 $650/t in 2013/2014 $650/t in 2014/2015 $650/t in 2015/2016 $525/t in 2016/2017 $525/t in 2017/2018

White Peas

$700/t in 2008/2009 $500/t in 2009/2010 $400/t in 2010/2011 $480/t in 2011/2012 $500/t in 2012/2013 $525/t in 2013/2014 $550/t in 2014/2015 $500/t in 2015/2016 $400/t in 2016/2017 $400/t in 2017/2018

Marrowfat Peas

Avg price as large range on quality $1,000/t in 2009/2010 Depending on colour, from $800-$1,000/t in 2010/11 Depending on colour, from $500-$800/t in 2011/12 On colour $600-850/t in 2012/13 On colour $600-$1,000/t in 2013/14 $600 - $1,000/t on colour 2014/2015 $600 - $1,000/t on colour 2015/2016 $600 - $800/t on colour 2016/2017 $550 - $750/t on colour 2017/2018 Source: Cates Grain and Seed. 58 58

PGG Wrightson: Delivered Ashburton 2015 / 2016 2015 Marrowfats 2017 / 2018 2018 / 2019

Contract $/tonne Marrowfats with sliding scale on bleaching Max $1,360.00 $1,000.00 None contracted $700 depending on colour

Field Pea Price Trends in year of Harvest 2013 2014 2015 Prussian Peas $600 $650 $650 Maple $650 $650 $650 White $500 $525 $550 Marrowfat $850 $1,000 $1,000 Feed $500

2016 $650 $650 $500 $1,000 $500

(ii) Garden Peas â&#x20AC;&#x201C; Canterbury $/tonne machine dressed Year of harvest 2014 2015 2016 Freezer varieties $935 $960 $960 Onwards $935 $960 $960 Masseys $935 $960 $960 Alderman $1,200 $1,200 (iii) Green / Blue / White Peas PGG Wrightson: Delivered Ashburton

2017 $525 $600 $400 $800

2017 $950 $950 $950 $1,200

2018 $525 $650 $400 $750 $400

2018 $935 $935 $935 $1,200

Contract $/tonne $250.00 $320.00 $500.00 $400.00 $400.00 $400.00 $500.00 / $600.00 / $625.00 $600/ $550 / $575.00

2005 / 2006 2007 / 2008 2008 / 2009 2009 / 2010 2010 / 2011 2011 / 2012 2015/2016 White / Maples / Blue 2017 / 2018 White / Maple / Blue

1.10.5 Maize/Maize Silage (i) Maize Grower Price per tonne at 14% moisture (net of FAR levy) $/tonne Waikato/ Bay of East Coast/ Manawatu/ King Country Plenty Gisborne Wairarapa 2018 harvest $350 to $420 across North Island 2017 harvest $320 to $380 across North Island 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 $210 to $230 Dryer price $275 to $280 $275 to $280 $235 to $275 $275 2004/05 actual in paddock price Dryer price $275 to $280 $275 to $280 $275 (ii) Maize Silage Sale price ranges (per kg DM) in paddock

South Island 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 to 22 cents / kg DM 2008/09 10 to 30 cents / kg DM 2007/08 +40 to <20cents / kg DM 2006/07 14 to 15 cents / kg DM 18 to 20 cents / kg DM 2005/06 14 to 16 cents / kg DM 14 to 19cents / kg DM 2004/05 16 to 19 cents / kg DM 15 to 17 cents / kg DM Note: These prices are indicators only. Prices vary between regions. North Island

60 60

1.10.6 Ryecorn $/tonne delivered 2009 / 2010 2010 / 2011 2011 / 2012 2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016 2016 / 2017 2017 / 2018 Cates Grain and Seed:

$510.00 $435.00 $480.00 $460.00 $475.00 $650.00 $600.00 $520.00 $450.00

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. 1.10.7 Lentils (red) 2008 / 2009 2009 / 2010 2010 / 2011 2011 / 2012 2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016 2016 / 2017 2017 / 2018 Cates Grain and Seed:

$/tonne delivered $1,300.00 $1,300.00 $1,300.00 $1,500.00 $1,500.00 $1,400.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00

1.10.8 Triticale 2009 / 2010 2010 / 2011 2011 / 2012 2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016 2016 / 2017 2017 / 2018 Cates Grain and Seed:

$/tonne delivered $330.00 $380.00 $390.00 $400.00 $410.00 $420.00 $410.00 $350.00 $340.00

1.10.9 Lupins $/tonne $800.00 to $850.00 (field dressed) $850.00 to $900.00 (field dressed) $850.00 to $900.00 (field dressed) $850.00 to $900.00 (field dressed) $850.00 to $900.00 (field dressed) $850.00 to $900.00 (field dressed) None grown but price would be same $850.00 to $900.00 (field dressed) $850.00 to $900.00 (field dressed) None grown but price would be similar None grown but price would be similar

2007 / 2008 2008 / 2009 2009 / 2010 2010 / 2011 2011 / 2012 2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016 2016 / 2017 2017 / 2018 1.10.10

Linseed $/tonne delivered $800.00 $800.00 $730.00 $900.00 $940.00 $1,000.00 $925.00 $850.00 $850.00

2009 / 2010 2010 / 2011 2011 / 2012 2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016 2016 / 2017 2017 / 2018 Cates Grain and Seed: 1.10.11 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017/18

Evening Primrose $/kg No contracts were offered $4.00 No contracts were offered A limited area was contracted at $4.10 A limited area was contracted at $4.20 A limited area was contracted at $4.20 $4.20 $4.20 $4.20 $4.00

62 62

1.10.12 Borage 2006 / 2007 2007 / 2008 2009 to 2012 2013 / 2014 2014 / 2015 2015 / 2016 2017 / 2018

$7.20 $7.40 No contract borage has been grown $9.50/kg MD $9.70/kg MD $9.50/kg MD No contracts in the last two years

1.10.13 Oilseed Rape / Canola Pure Oil NZ Hybrid Oilseed Rape $/tonne dressed 2013 / 2014 $700 2014 / 2015 $700 2014 / 2015 $740 for high oleic oilseed rape 2015 / 2016 $700 for High Oleic Low Linolenic rapeseed 2017 $700 2018 $680 Hybrid Canola 2007 / 2008 2008 / 2009 2010 to 2012 2017 2018

$2,150 $3,150 No contracts given $700 $680

Biodiesel NZ no further info since 2014 2012/13 $700/tonne delivered, field dressed. Freight 50% for Southland 2011/12 2010/11 2009/10

NI price $675/tonne field dressed, delivered to Fielding Manawatu. Price includes some transport assistance $770/tonne. North Is $725/tonne. Price includes Freight 50% for Southland some transport assistance $600/tonne field dressed. Paid half transport to plant $700/tonne, field dressed. Paid half transport to plant

63 63

1.11 SMALL SEEDS The price paid to seed growers is based on a machine dressed weight of seed with acceptable purity standards. Prices are variable and depend on the season and the market. The following prices for 2018 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. 1.11.1 Pasture Grasses Ryegrasses Italian – All proprietary cultivars Hybrid – All proprietary cultivars Perennial – All proprietary cultivars Perennial –Tetraploids Grasslands Nui Grasslands Ruanui Grasslands Manawa Grasslands Moata Grasslands Tama Italian Other Grasses Cocksfoot proprietary cultivars Tall Fescue proprietary forage cultivars Bromus (Prairie Grass) Yorkshire Fog

$/kg 1.90 2.10 2.50 2.30 1.80 1.70 1.75 1.60 1.70 1.50 5.00 5.00 3.00 10.00

1.11.2 Turf / Amenity Species $/kg 2.40 11.00 3.00 4.00

Turf perennial ryegrass Browntop proprietaries Turf Fescues Tall Fescue 1.11.3 Legumes (i) White Clover Proprietary White Clover (depending on leaf size) Grasslands Huia Uncertified (ii) Red Clover Grasslands Pawera Uncertified (iii) Lucerne (iv) Lotus 64

$/kg 5.00 to 6.50 5.00 3.50 7.50 5.00 7.00 to 10.00 14.00

1.11.4 Forage Herbs $/kg 10.00 4.00

Chicory proprietary cultivars Plantain proprietary cultivars 1.11.5 Forage Brassicas

$/kg 4.00 2.80 2.40 2.20

Kale Swedes Turnips Forage Rape Source: New Zealand Grain and Seed Trade Association Inc.

1.12 FRUIT PRODUCTION 1.12.1 Fruit Prices - General The prices paid to growers for fruit vary markedly (sometimes by several hundred percent) 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. 1.12.2 Apples Total varieties Hawke’s Bay - pipfruit orchard model $/export TCE 2014 2015 Weighted average return at FAS 25.45 28.75 Total varieties Nelson - pipfruit orchard model $/export TCE 2014 2015 Weighted average return at FAS 25.65 28.10 Source: MPI.

2016 30.60

2017 budget 29.45

2016 29.95

2017 budget 30.00

Hawke’s Bay - pipfruit orchard model FAS1 export returns $/tray carton equivalent (TCE - 18.6kg) 2013 2014 2015 budget Braeburn 22.85 20.20 21.30 TM Cripps Pink / Pink Lady 27.00 27.00 27.50 TM Envy 33.60 37.45 41.50 Fuji 25.20 30.00 30.50 Granny Smith 22.10 25.00 25.85 TM Jazz 24.70 25.55 26.90 TM Pacific Beauty 28.30 … … Pacific QueenTM 32.90 35.80 51.40 Pacific RoseTM 31.15 31.40 37.00 Royal Gala 24.70 25.50 26.30 1 Source: MPI. = Free alongside ship

Nelson Apple Export Returns ( $/TCE )

2013 2014 Braeburn 23.95 22.70 Cox Orange 23.70 26.30 TM3 Cripps Pink / Pink Lady 25.45 26.20 EnvyTM3 32.85 34.75 3 Fuji 23.00 26.30 TM Jazz 25.10 25.05 Royal Gala 24.70 24.65 Other apples 29.15 28.55 Pears 29.65 29.55 Source: MPI Nelson Pipfruit Orchard Model Export FAS returns . (ii) Local Market Price

Hawkes Bay non-export $/TCE 2014 actual 2015 budget Braeburn 2.65 1.20 Cripps Pink /Pink LadyTM 1.70 0.95 TM Envy 0.35 0.55 Fuji 3.05 0.80 Granny Smith 8.00 3.65 Jazzâ&#x201E;¢ 3.00 2.20 TM Pacific Queen 6.25 3.55 TM Pacific Rose 4.80 2.65 Royal Gala 5.15 4.40 Source: MPI

67 67

2015 budget 21.50 27.50 26.40 41.50 24.60 26.90 24.75 28.40 27.55

Nelson non-export $/TCE 2014 actual 2015 budget 1.85 1.70 0.95 1.35 0.95 0.80 1.25 0.95 1.05 1.00 1.10 1.35

1.12.3 Avocados (i) Local Market

$/kg at first point of sale, includes processing 2006 / 2007 $2.82 2007 / 2008 $1.33 2008 / 2009 $2.50 2010 / 2011 $4.26 2011 / 2012 $2.25 2012 / 2013 $4.38 2013 / 2014 $3.10 2014 / 2015 $2.45 2015 / 2016 $4.64 2016 / 2017 $3.34 Source: New Zealand Avocado Growers Association. (ii) Export Market

FOB value for export prices $/kg 2006 / 2007 $5.16 2007 / 2008 $3.33 2008 / 2009 $4.15 2010 / 2011 $4.80 2011 / 2012 $3.07 2012 / 2013 $4.73 2013 / 2014 $5.96 2014 / 2015 $4.11 2015 / 2016 $6.51 2016 / 2017 $5.98 Source: New Zealand Avocado Growers Association.

68 68

1.12.4 Feijoa (i) 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. (ii) 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 midseason. Tray weights range from around 2.4 kg for small fruit (39 count) to a little over 3 kg for (25 count) large fruit. (iii) 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: Frans de Jong â&#x20AC;&#x201C; President, NZFGA. April 2018

69 69

Variety Albarino Arneis Cabernet Franc Cabernet Sauvignon Chambourcin Chardonnay Sparkling: all other clones Chard Sprk: Clones 15 +Mendoza Chardonnay Table: Clones15+Mendoza Chard Table: all other clones Chenin Blanc Fiano Gamay Noir Gewurztraminer Gruner Veltliner Lagrein Malbec Marsanne Merlot Muscat Varieties Nebbiolo Petit Verdot Pinot Blanc Pinot Gris Pinot Meunier Pinot Noir - Sparkling Wine Pinot Noir - Table Wine Pinotage Reichensteiner Riesling Sangiovese Sauvignon Blanc Sauvignon Gris Seibel Semillon Syrah Tempranillo Verdelho Vermentino Viognier All Other Whites TOTAL/AVERAGE

Auckland

Gisb $2,282 $1,113

$2,496 $2,600 $1,640

$2,512

$1,209

$1,909

$2,035

$3,002

$2,115 $2,003

$1,615 $1,611

$1,120

$1,389 $2,149 $1,825

$1,400 $2,500 $1,437 $2,310

$1,311 $1,000 $1,025 $1,805

$1,520

$1,729

$1,855

$2,500 $5,000 $1,632

Hwk Bay $1,605 $1,950 $1,813 $2,855 $2,157 $1,206 $1,846 $2,037 $1,817

$1,867 $1,350

$1,465

$1,000 $1,400 $1,000 $550

$1,132

$1,855 $1,389 $2,800 $1,302 $711

$1,354

$1,005 $1,004 $1,248 $1,157 $1,400 $1,855

Average Grape Prices, $/tonne. All Wineries. 2017 Vintage

1.12.5 Grapes

$2,284

$3,441

$2,536

$1,538

$1,944

$3,486

$2,329

$3,093

$3,191

Wair/Wn

$1,785

$1,817

$1,901

$2,616

$1,730 $1,820

$1,740

$2,003 $1,843 $1,800 $2,298 $2,894

$3,963

$1,743

$500

$1,854 $1,681

$1,973 $1,978 $1,821 $2,013 $2,501

Marlb $2,380

$1,464

$1,253

$1,419

$2,431

$1,550

$1,601

$1,538

$1,800 $1,654 $1,784

Nelson $1,850

$1,528

$1,511

$1,104

$2,790

$1,567

$2,517

$1,550

$2,500

$2,498

Waipara

$3,649

N Otago

$3,151

$4,004

$2,180

$2,449

$3,643

$2,690 $2,603

$2,429 $1,800

$2,992

$2,900

C Otago

Avg $2,085 $1,206 $1,813 $2,855 $2,157 $1,126 $1,136 $1,651 $1,635 $1,948 $2,077 $5,000 $1,649 $1,685 $1,855 $1,781 $2,800 $1,688 $712 $3,963 $1,520 $2,035 $1,568 $1,130 $1,463 $3,042 $1,000 $550 $1,707 $2,500 $1,709 $1,841 $2,536 $1,389 $2,155 $3,196 $1,901 $1,867 $1,574 $2,600 $1,752

Auckland Variety Albanyâ&#x20AC;&#x2122;s Surprise Albarino Arneis Cabernet Franc $1,500 Cabernet Sauvignon Chambourcin Chard Sparkling: all other clones Chard Spark: Clones15+Mendoza ChardTable:Clones15+Mendoza Chard Table: all other clones $2,043 Chenin Blanc Fiano Gamay Noir Gewurztraminer $2,003 Gruner Veltliner Lagrein Malbec Marsanne Merlot Montepulciano Muscat Blanc a Petit Grains Muscat Varieties Nebbiolo Petit Verdot Pinot Blanc Pinot Gris $2,118 Pinot Meunier Pinot Noir - Sparkling Pinot Noir - Table Wine $1,718 Pinotage Reichensteiner Riesling Sangiovese Sauvignon Blanc $2,190 Sauvignon Gris Seibel Semillon Syrah $2,205 Tempranillo Verdelho Viognier $2,499 All Other Reds All Other Whites $2,400 TOTAL/AVERAGE $2,065

$1,423 $1,589

$1,096

$1,329 $2,078 $1,825

$1,270 $2,500 $1,519 $1,999

$1,390 $1,000 $1,003 $1,935

$1,792

$1,746

$1,874

$2,900 $1,755

$1,537 $1,943 $1,914 $2,466 $1.981 $1,795 $1,912 $1,925 $1,666

$937

$1,000 $1,041 $940 $550 $700 $1,500 $1,378

$1,131

$2,505 $1,718 $2,803 $1,244 $1,500 $1,300 $664

$1,076

$1,000 $1,063 $1,142 $1,123 $1,400 $2,506

$2,193 $1,082

Gisborne Hwk Bay

Average Grape Prices, $/tonne. All Wineries. 2016 Vintage

$2,253

$4,310

$1,853

$1,897 $2,922 $2,400

$1,811 $3,631

$1,799 $1,900

$1,823 $3,032

$1,706

$2,694 $1,842 $1,799 $2,092 $2,880

$2,000 $3,997

$1,810

$1,741 $1,928

$1,955 $2,086 $2,109 $1,951 $2,400

Marlb $1,704 $2,377

$2,044

$3,440

$2,677

$2,192 $1,821

$3,500 $3,198 $2,322

Wairarapa / Wn

$1,619

$2,536

$1,501

$1,381

$2,326

$1,537

$1,600

$1,453 $1,650

$1,899 $1,725 $1,858

Nelson

$1,631

$1,658

$1,243

$2,765

$1,571

$2,645

$1,555

$1,600 $2,500 $1,880

Waipara

$2,166

$1,700

$1,686

$3,092

$1,974

Canty

$3,500

N Otago

$3,288

$3,999

$2,126

$2,470

$2,485 $2,482 $3,401 $3,003 $3,486

$2,423 $2,000

$2,888 $2,820

$1,999

C Otago $2,601

NZ $1,785 $1,986 $1,150 $1,905 $2,466 $1,981 $1,196 $1,239 $1,688 $1,579 $1,974 $2,506 $2,900 $1,451 $1,904 $2,505 $1,854 $2,803 $1,679 $1,500 $1,300 $664 $3,997 $1,792 $2,688 $1,595 $1,067 $1,208 $2,965 $940 $550 $1,480 $2,310 $1,779 $1,903 $3,032 $1,392 $2,112 $3,070 $1,897 $1,186 $2,400 $2,400 $1,807

1.12.6 Kiwifruit (i) Export Returns (per tray) 10/11 11/12 Gross Returns $8.68 $8.61 Orchard gate returns $5.28 $4.73 Source: Zespri International.

12/13 $9.32 $5.93

13/14 $9.26 $6.34

14/15 $9.81 $6.83

15/16 $9.51 $6.05

16/17 $9.46 $5.86

(ii) Progress Payments for 2016/2017 compared with the previous season Class 1 ZESPRI TM GREEN Kiwifruit. $/tray Pattern of progress payments for the average grower: 2015/16 Orchard gate returns per tray (green only) 5.13 Submit Price (incl materials and packing) 2.25 Progress Payments Month July 0.20 August 0.30 September 0.30 October 0.40 November 0.55 December / January 0.20 February 0.47 March 0.28 April 0.10 May 0.25 Kiwistart Taste ZESPRITM Supplier Accountability/ Intercheck Pack Time Loyalty premium Total available for distribution to growers Note: Amounts are for ZESPRIâ&#x201E;˘ GREEN Kiwifruit (Class 1) only. Source: Zespri International.

72 72

0.25 1.20 -0.03 0.45 1.09 0.25 8.51

17/18

$/tray 2016/17 4.36 2.25 0.21 0.12 0.33 0.35 0.14 0.05 0.28 0.24 0.10 0.13 0.35 1.40 0.08 0.41 1.10 0.25 7.80

(iii) Organic Kiwifruit prices Class 1 Green Organic Orchard gate returns per tray Submit Price (including materials and packing) Progress Payments Month July August September October November December / January February March April May Kiwistart Taste ZESPRITM Supplier Accountability/ Intercheck Pack Time Loyalty premium Total available for distribution to growers Source: Zespri International

$/tray 2015/16 7.18 2.25

$/tray 2016/17 6.86 2.25

0.25 0.64 0.41 0.55 0.60 0.50 0.54 0.36 0.10 0.16

0.36 0.70 0.26 0.46 0.65 0.10 0.61 0.33 0.10 0.15

0.43 1.95 0.03 0.21 0.88 0.25 10.11

0.67 1.87 0.00 0.18 0.88 0.25 9.82

(iv) Gold3 Kiwifruit prices Orchard gate returns per tray Submit Price (including materials and packing) Progress Payments Month July August September October November December / January February March April May Kiwistart Taste ZESPRITM Supplier Accountability/ Intercheck Pack Time Loyalty premium Total available for distribution to growers Source: Zespri International

$/tray 2015/16 8.38 2.80

$/tray 2016/17 8.68 2.80

0.00 0.55 0.40 0.25 0.40 0.25 0.24 0.10 0.10 0.35

0.37 0.54 0.55 0.53 0.08 0.07 0.36 0.37 0.10 0.20

0.54 4.54 0.08 0.58 0.83 0.25 12.26

0.49 4.44 0.07 0.63 0.78 0.25 12.67

1.12.7 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 2018 harvest is low, being between about $1.00 and $1.20 per kilogram of fruit. Harvest costs are an expense from that revenue. The 2018 price is again based on a significantly higher crop load. As olives are notorious for alternate bearing especially in groves that a not well managed, I would expect that the 2019 crop will be lighter in tonnage resulting in higher fruit and wholesale oil prices. Source: Matapiro Olives

75 75

1.12.8 Pears Total Export Return for Pears ($/TCE) - Nelson 2012 2013 2014 2015 budget $30.20 $29.65 $29.55 $27.55 The non-export actual return for pears in Nelson ($/TCE) for 2014, was $2.90. The non-export budgeted return for pears in Nelson ($/TCE) for 2015 was $4.10. Source: MPI. 1.12.9 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

1.13 VEGETABLE PRODUCTION 1.13.1 Vegetable Prices - General As with fruit, the prices paid to growers for vegetables vary markedly (sometimes by several hundred per cent) both within and between years and between districts. They vary daily and are very much dependent on climate and its subsequent effects on both availability and quality of vegetables offered. Again, as with fruit, 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 small range of vegetables. Wholesale prices paid at auction and details of contracts for process vegetables are often confidential, especially those for organically grown crops. Export Vegetable Values and Volumes 2013 to 2020 forecast Actual Year to 30 June 2013 2014 2015 2016 2017 Fresh veg (â&#x20AC;&#x2DC;000 tonnes) 314 306 299 317 326 Export value ($ million) 225 219 215 252 250 Process veg (â&#x20AC;&#x2DC;000 tonnes) 207 224 212 200 210 Export value ($ million) 375 387 373 372 389 Source: Situation and Outlook for Primary Industries March 2018

Forecast 2018 2019 341 351 260 265 210 210 387 387

2020 370 276 210 387

1.13.2 Broccoli Broccoli Price Trends - An Otago grower received an average of $19.36 per crate in July 2013, before levies. 2017/18 June July Aug Sept Oct Nov Dec Jan Feb 4.12 5.51 4.22 2.75 5.20 2.87 2.60 2.82 3.05 $/kg 1.48 1.98 1.52 0.99 1.87 1.03 0.94 1.01 1.10 $/ea Source: MG Marketing

Mar 4.05 1.46

Apr 2.97 1.07

May 3.07 1.11

1.13.3 Capsicum The first table shows a range of prices for fresh greenhouse capsicums from one grower for the 2015/16 season. These are averages for green, red, yellow and orange loose capsicum. Prepacks and selling per capsicum, will inflate values compared with a grower packing only fruit sold per kg. Dec Jan Feb Mar Apr May Jun 2015/16 Aug Sept Oct Nov 8.39 5.49 4.86 3.82 4.32 4.09 3.74 4.62 4.26 4.95 8.93 $/kg 77

Red capsicums. Green capsicums would be 20c lower. Dec Jan Feb Mar 2017/18 Aug Sept Oct Nov 8.59 5.96 4.97 4.17 4.29 3.44 4.40 6.08 $/kg Source: MG Marketing

Apr 4.68

1.13.4 Onions (i) Fresh Prices for bulk onions for most size grades in Manawatu, were: $ / tonne 2013 2014 2015 2016 2017 Jan to Mar $600 $700 $550 $700 $750 Apr to Oct $500 $475 $500 $650 $700 Nov to Dec $650 $700 $700 $650 Source: Morgan Laurenson Ltd. Brown Onions 2017/18 June July Aug Sept Oct Nov Dec Jan 0.87 0.75 0.81 0.76 0.85 0.88 0.90 1.26 $/kg Source: MG Marketing (ii) Export a Canterbury grower 2011 / 2012 2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016 2017 / 2018

$150 - $250 / tonne $400 / tonne $350 / tonne $600 / tonne $600 / tonne $500 / tonne

78 78

Feb 1.13

May 5.32

June 8.64

2018 $700

Mar Apr May 0.85 0.89 0.86

1.13.5 Potatoes (i) Main Crop Potatoes Manawatu 2017 brushed potatoes 2016 brushed potatoes 2015 brushed potatoes 2014 brushed potatoes 2013 brushed potatoes 2012 brushed potatoes 2011 brushed potatoes 2010 brushed potatoes 2009 brushed potatoes Source: Morgan Laurenson Ltd.

$400 to $700/t $400 to $700/t $450 to $700/t $225 to $500/t $225 to $500/t $200 to $400/t $300 to $500/t $250 to $450/t $200 to $400/t

Canterbury â&#x20AC;&#x201C; Main Crop Potatoes Prices $600/tonne $450 - $600/tonne 2016 / 2017 2015 / 2016 $500/tonne $200/tonne 2014 / 2015 $500/tonne 2013 / 2014 $15.70/20kg $500/tonne early season 2012 / 2013 $15.50/20kg 2011 / 2012 $12/20kg / $8/20kg 2010 / 2011 $12/20kg / $8/20kg (ii) Export A Canterbury grower 2010 2011 $300 to $350

2012 $150-$250

2013 $400

Comments Early season / Main crop Early season / Main crop Whole season average Peak / Winter Peak / Winter

2014 $350

2015 $300

2016 $600

1.13.6 Cauliflower 2017/18 June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May 1.46 1.54 1.28 1.66 1.65 2.29 1.66 0.82 1.28 3.36 1.32 0.85 $/kg 2.34 2.46 2.04 2.66 2.63 3.66 2.66 1.32 2.05 5.38 2.11 1.35 $/ea Source: MG Marketing 1.13.7 Asparagus 2017/18 June July Aug n/a n/a n/a $/kg Source: MG Marketing

Sept 14.36

Oct Nov Dec Jan Feb 10.14 7.64 8.75 n/a n/a 79

Mar Apr n/a n/a

May n/a

1.13.8 Sweetcorn 2017/18 June July Aug Sept n/a n/a n/a n/a $/kg n/a n/a n/a n/a $/ea Source: MG Marketing

Oct n/a n/a

Nov Dec Jan Feb Mar Apr n/a 2.20 1.52 1.17 1.14 1.49 n/a 1.03 0.71 0.55 0.53 0.70

May 1.90 0.89

1.13.9 Carrots loose 2017/18 June July Aug Sept Oct Nov Dec 1.03 1.02 1.14 1.22 1.19 1.17 1.29 $/kg Source: MG Marketing 1.13.10

Jan 1.26

Feb Mar Apr 1.17 1.17 1.12

May 1.10

Tomatoes loose

2017/18 June July Aug Sept Oct Nov Dec Jan Feb Mar 4.96 5.65 6.35 6.29 4.40 2.35 1.75 1.31 1.28 3.16 $/kg Source: MG Marketing

Apr 4.35

May 3.82

1.14 APICULTURAL PRODUCTION 1.14.1 Honey Prices from 2014 / 2015 to 2016 / 2017 Beekeepers supply the packaging (drums or intermediate bulk containers) and cover freight costs to the buyers’ premise. Colour/grade $/kg (f.o.b.) 2014 / 2015 2015 / 2016 2016 / 2017 Light (clover type) $7.00 to $10.75 $9.50 to $13.00 $10.00 to $14.00 Light amber $7.00 to $9.00 $9.00 to 11.50 $6.50 to 13.00 Dark / Honeydew $7.00 to $12.50 $8.00 to $14.50 $8.00 to $16.00 Manuka $9.50 to $116.50 $12.00 to $148.00 $10.80 to $127.00 Source: MPI Apiculture Monitoring Programme 2016-17; AsureQuality 1.14.2 Beeswax Prices from 2014 / 2015 to 2016 /2017 $/kg (beekeepers cover freight costs to buyers’ premise) 2014 / 2015 2015 / 2016 2016/17 Light $9.00 to $12.50 $11.00 to $15.00 12.00 to 17.00 Dark $8.00 to $10.00 $9.00 to $10.00 12.00 to17.00 Source: MPI Apiculture Monitoring Programme 2016-17; AsureQuality 1.14.3 Pollen Prices from 2014 / 2015 to 2016 / 2017 $/kg (beekeepers cover freight costs to buyers’ premise) 2014 / 2015 2015 / 2016 2016 / 2017 Not dried nor cleaned $16.00 to $27.00 $16.00 to $25.00 $16.00 to $25.00 Cleaned and dried $40.00 to $46.00 Source: MPI Apiculture Monitoring Programme 2016-17 AsureQuality 1.14.4 Propolis 2013 Beekeepers reported receiving $33 to $100 per kg raw, unprocessed product with quotes of $220 per kg for pure product. 2015 Beekeepers reported receiving $53 to $183 per kg raw, unprocessed product with quotes of $350 to $390 per kg for pure. Demand strong in 14/15. 2017 Beekeepers reported receiving similar prices to last season at $54 to $197 per kg for raw unprocessed product with quotes of $360 - $420 for the pure product. Source: MPI Apiculture Monitoring Programme 2016-17 AsureQuality

1.14.5 Pollination Beekeepers received the following returns from hire of their hives to orchardists for pollination of fruit crops. $/hive 2014 / 2015 2015 / 2016 2016 / 2017 Pipfruit,stonefruit, berries $60.00 to $140.00 $60.00 to $150.00 $70.00 to $180.00 Kiwifruit: Hawkes Bay $120.00 to $180.00 $165.00 to $300.00 $200.00 to $300.00 Auckland $120.00 to $150.00 $150.00 to $400.00 $150.00 to $400.00 Bay of Plenty $142.00 to $195.00 $145.00 to $400.00 $150.00 to $400.00 Nelson $115.00 to $195.00 $178.00 to $190.00 $130.00 to $190.00 Canola & Small seeds $150.00 to $195.00 $130.00 to $200.00 $200.00 to $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. Source: MPI Apiculture Monitoring Programme 2016-17; AsureQuality Canterbury: $250 per hive Vegetable seeds i.e. Cabbage, Cauliflower and Radish $200 per hive Clover $255 per hive Carrot 1.14.6 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. Comments (Beekeepers pay Export per kg live bees per queen local sales freight to buyers.) 2013/2014 $27.00 to $32.00 $33.00 to $37.00 * Queen bee prices for 2016/17 2014/2015 $28.00 to $32.00 $30.00 to $37.00 includes the price of virgin queens. 2015/2016 $31.00 to $35.00 $35.00 to $60.00 The production and sale of virgin 2016/2017 $31.00 to $35.00 $14.00 to $80.00* queens is an emerging trend. Source: MPI Apiculture Monitoring Programme 2016-17; AsureQuality Hive Purchase 5 frame nucleus $170.00 These contain 5 frames of bees and a queen. 1 frame of honey. NB. The box and lid is returned. Single brood box hives. $320.00 These do not have a lid or floor. Only two mats â&#x20AC;&#x201C; one top and bottom to retain bees, 9 frames within, bees and queen. Two frames of honey included. Note these are South Is prices. Returns from seed clover crops are now almost non-existent due to the constant genetic changes within the various cultivars. As such many beekeepers are charging for the pollination of these crops as honey is no longer a viable income from these plants. 82 82

1.15

LOGS

1.15.1 Indicative Log Prices The prices and rates shown are guidelines only, being subject to a wide range of factors including location and size of woodlot, access and internal roading, log quality and changing market conditions. Log prices are for Radiata Pine unless shown otherwise. See section 2.10.13 for Forest Growers levy (i) Export Log Prices (per quarter $NZ JAS m3 FOB) Grade Jun 2017 Sep 2017 Dec 2017 Mar 2018 Pruned $152 to $213 $177 to $217 $184 to $222 $160 to $222 Unpruned A $90 to $133 $81 to $141 $143 to $190 $143 to $192 Unpruned K $91 to $125 $91 to $135 $133 to $183 $132 to $185 Pulp â&#x20AC;&#x201C; Japan $73 to $110 $65 to $118 $117 to $161 $119 to $161 Source: www.mpi.govt.nz (ii) Domestic Log Prices (per quarter) ($NZ per tonne delivered at mill) Grade Jun 2017 Sep 2017 Dec 2017 Mar 2018 P1 $155 to $191 $157 to $193 $157 to $195 $149 to $199 P2 $115 to $189 $120 to $190 $120 to $190 $97 to $191 S1 $115 to $136 $116 to $143 $116 to $152 $124 to $159 S2 $93 to $130 $116 to $135 $120 to $144 $115 to $141 L1 and L2 $83 to $145 $80 to $130 $71 to $143 $89 to $137 S3 and L3 $71 to $120 $94 to $138 $83 to $134 $109 to $136 Pulp $31 to $56 $31 to $59 $30 to $59 $31 to $60 These log prices (both domestic and export) are indicative only and may not correspond to actual prices paid in market transactions. They have been obtained from a variety of sources and elements of subjective judgment have been incorporated into them. The prices are subject to changes when further data become available. Source: www.mpi.govt.nz 1.15.2 Forestry Forecasts Export prices FOB ($ per m3) (i) Logs and Lumber to 30 June 2017 Logs $149 Timber $475 f = forecast (ii) Wood Pulp and Panels to 30 June 2017 Wood Pulp $ /t $674 3 Panels $ /m $564 Source: SOPI â&#x20AC;&#x201C; Mar 2018.

2018f $160 $470

2019f $160 $480

2020f $160 $490

2021f $160 $500

2022f $155 $510

2018f $770 $570

2019f $770 $560

2020f $770 $570

2021f $780 $570

2022f $780 $580

FARM and ORCHARD EXPENSES

Note: Before reading this section, please refer to the disclaimer in the Preface of this Manual. 85 prices. Prices Exclude GST. Please check with retailer for current

2.1

INPUT PRICES - GENERAL INFORMATION

2.1.1

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 2.1.2 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.

Please check with retailer for current prices 87 87

Prices exclude GST

2.1.3 Rate of Inflation in New Zealand 1970 to June 2018 The Consumer Price Index (C.P.I.) measures the rate of inflation for each year. 18

CPI

16 14

10 8 6 4 2 0

Source: Reserve Bank of New Zealand Note: Also see Appendix, Section 2.24, for rate of inflation since 1891, and method used to calculate the fall in the value of the dollar.

Please check with retailer for current prices

Prices Exclude GST

2.2

WAGES / SALARIES / DRAWINGS

2.2.1

Wages and Salaries - Farm Employees

Effective May 2018 As a guide to Gross Wages or Salaries commonly paid to farm employees, Fegan & Co have kindly provided the following figures. Fegan & Co provide a range of services to the rural sector including Recruitment and HR services. Visit them at www.fegan.co.nz 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. (i) Sheep & Beef Shepherd General / General Hand General Hand / Tractor Driver Shepherd Head Shepherd Stock Manager Manager Operations Manager (ii) Dairy Part-Time Assistant Assistant Herd Manager Assistant Manager / 2IC Farm Manager Operations Manager

$38,500 - $45,500 $40,000 - $56,000 $44,500 - $50,000 $50,000 - $59,000 $52,500 - $62,000 $55,000 - $85,000 $80,000 - $121,500 North Island $18.00 - $24.00/hr $40,000 - $44,000 $45,000 - $54,000 $50,000 - $60,000 $65,000 - $110,000 $100,000 - $160,000

South Island $18.00 - $26.00/hr $40,000 - $44,000 $46,000 - $56,000 $50,000 - $64,000 $70,000 - $120,000 $100,000 - $160,000

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. Please check with retailer for current prices

Prices Exclude GST

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. See Section 4.12. 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

Please check with retailer for current prices 90

Prices Exclude GST

Wages and Salaries - Horticultural Employees Some typical wage rates are as follows: (i) Field Work and Harvesting Permanent Staff: Position Manager Assistant Manager Supervisor Casual Staff: Tractor Driver / Forklift Driver General Labourers

Remuneration In the region of $55,000 per annum $40,000 to $50,000 per annum $19.00 to $21.00 per hour $18.00 to $22.00 per hour $16.50 to $20.00 per hour

(ii) Vineyards Average Base Salary. Courtesy of Strategic Pay Vineyard Manager (small to medium enterprise) $79,030 to $84,288 per annum Assistant Vineyard Manager (medium to large) $ 55,145to $62,806 per annum Vineyard Machinery Operator $48,024 per annum Vineyard Worker (includes casuals) $41,621 per annum (iii) Orchard / Packhouse Workers General staff (packhouse staff paid towards lower end of scale, graders paid towards the higher end of scale) Supervisors/Quality Controllers Forklift drivers

$16.50 -$17.00 $18.00 - $22.50 $17.00 - $21.00

(iv) Tomato Glasshouse Workers (average) Starting rate $16.50 (min. wage) - $18.00 per hour (NB: current govt commitment to a $20.00 per hour minimum wage by the end of their first term will see all rates ratcheting up over the next 3 years) Competent (more skilled) $16.75 to $20.00 With responsibilities $18.00 - $25.00 Supervisor (leading hand, foreman, technical) $20.00 - $30.00 Trainee Grower $42,500- $65k+ pa Assistant Manager $60,000+ pa Manager $90,000+ pa Experienced growers range from about $80K to in excess of $100K. 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. (v) Market Garden (Southland) Casuals - Entry level Permanents - Lower end Moderate skill level Permanents - Top end Most skilled Please check with retailer for current prices

$16.75 per hour $20.90 per hour $24.90 per hour 91

Prices Exclude GST

2.2.2 Drawings Drawings or Personal expenditure for farmers and growers: Forecast 2017/2018 Sheep and Beef North Island Hard Hill Country East Coast North Island Hill Country Taranaki - Manawatu North Island Intensive Finishing Northland, Waikato, BOP South Island High Country South Island Hill Country Marlborough - Canterbury South Island Breeding and Finishing South Island Mixed Finishing South Island Intensive Finishing National Dairy 2016/2017 National

(per farm) $82,043

(per farm) $81,600 $88,900 $64,300 $115,700 $123,700 $81,100 $117,300 $73,300 $88,900 (per cow) $198

(per su) $12.43 $12.17 $25.92 $11.82 $19.87 $24.14 $30.38 $30.29 $22.36 (per kg MS) $0.51

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

(per farm) $50,000 $47,300

(per su) $19.73 $15.07

Arable 2017 data Average

(per farm) $100,969

(per ha) $326

(per property) (per ha) Horticulture Kiwifruit 2014 data $54,400 $10,880 Hawkes Bay Pipfruit (wages of mgmt) 2015 budget $92,000 $2,300 Nelson Pipfruit (wages of mgmt) 2015 budget $97,200 $2,430 (Whole vineyard)(producing ha) Viticulture Marlborough $70,400 $2,345 Source: MPI; Beef+Lamb NZ Economic Service; Brownglass; DairyNZ Economic Survey 2016/2017; FAR

Please check with retailer for current prices 92

Prices Exclude GST

2.3

ANIMAL HEALTH

2.3.1

Animal Health - Average Costs

Average animal health costs forecast for 2017/2018 are as follows. See individual sections for more detailed information. (per su) Sheep and Beef (Deer not separated out but often run with sheep and beef) North Island Hard Hill Country East Coast $4.42 North Island Hill Country Taranaki-Manawatu $4.46 North Island Intensive Finishing Northland, Waikato, BOP $5.06 South Island High Country $4.41 South Island Hill Country $5.35 South Is Canterbury/Marlborough Breeding and Finishing $5.05 South Island Intensive Finishing $6.64 South Island Mixed Finishing $2.90 National $4.93 (per cow) (per kg MS) Dairy 2016/2017 Northland $0.23 Waikato $0.24 Bay of Plenty $0.24 Taranaki $0.21 Lower North Is $0.21 West Coast - Tasman $0.17 Marlborough - Canterbury $0.20 Otago - Southland $0.21 National $84 $0.22 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 $4.04 South Island $3.43 Source: MPI. Beef+Lamb NZ Economic Service; DairyNZ Economic Survey 2016/2017

Please check with retailer for current prices 93

Prices Exclude GST

2.3.2 Drenches / Vaccines / Bloat Control Drenches Sheep Drenching Costs - Examples: Tradename: Cydectin Eweguard VetMed Scanda Plain pour on selenised ComboMax oral Dose rate: 1ml / 5kg 1ml / 25kg 1ml / 10kg 1ml / 10 kg Cost per ml: $0.108 $0.57 $0.028 $0.031 Cost per 55 kg ewe: $1.19 $1.25 $0.154 $0.17 Cattle Drenching Costs - Examples: Tradename: Scanda VetMed Fasinex 24 Noromectin Plain ComboMax Cattle (fluke) Injection oral Dose rate: 1 ml / 10 kg 1ml / 10 kg 10.5ml/201-250kg 1 ml / 50 kg 25ml/451-500kg Cost per ml: $0.031 $0.028 $0.179 $0.36 Cost per 500 kg cow: $1.56 $1.40 $4.48 $3.60 Drenches / Anthelmintics Agmax Industries Ltd: ($35 freight fee for all orders under $250) Ivermectin based Endectocide Noromectin - Cattle pour-on / injection 5 litre / 500ml Noromectin Plus â&#x20AC;&#x201C; Cattle Antiparasitic injection 500 ml Pour-On Gun PGG Wrightson Ltd: Product VetMed Combomax Oral (sheep/cattle) VetMed Dualmax Pour on treatment VetMed Abamectin Pour on (cattle) VetMed Moxidectin Sel Cydectin Pour-on Scanda Plain / Sel Fasinex 24 (cattle - fluke) Vaccines: Cydectin L A Vaccine & Drench: Eweguard Selenised

Price $208.69 / $178.26 $208.69 $58.26

1ml / 10kg

Unit size 1 l / 20 l

1ml / 10kg

$433.91

Various oral sheep

5l 5l

$190.43 $199.13

15 l 10 l 5l

$1,616.52 $312.17 / $329.57 $894.78

10.5ml/201-250kg 25ml/451-500kg

Retail Price $60.86 / $555.65

1ml / 20kg: ewe & lamb>20kg

500 ml

$373.04

1ml / 25kg

500ml

$286.09

Please check with retailer for current prices 94

Prices Exclude GST

A South Island Veterinary Service: (vet only products) Product Dose rate Unit size Est Retail Price Levicare HI-MIN Sheep 3 ml per 16 kg 20 litre $153 Cattle 9 ml per 45 kg First Drench / High 1 ml per 5 kg 5 / 10 / 20 litre $282/$376/$685 Mineral Oxfen High Mineral 1 ml per 5kg 5 / 20 litre $117 / $194 Oxfen C 1 ml per 20 kg 5 / 20 litre $255 / $713 Oxfen C High Mineral 1 ml per 20 kg 5 / 20 litre $240 / $719 Double Strength Oxfen 1 ml per 10 kg 5 / 20 litre $180 / $483 High Mineral Arrest 1 ml per 5 kg 20 litre $280 Arrest High Mineral 1 ml per 5 kg 5 / 20 litre $109 / $268 Arrest C 1 ml per 10 kg 5 / 20 litre $213 / $626 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 Genesis Horse Wormer 1 ml per 20 kg 30 ml $26 Matrix Hi Mineral Triple 1 ml per 5kg 5 / 10 /20litre $249/$325/$574 Combo Matrix Tape Hi Mineral 1 ml per 5kg 5 / 10 /20litre $319/$644/$1,224 A South Island Veterinary Service: (vet only products) Product Dose rate Unit size Switch Oral for sheep /Hi Min 1ml per 5kg 5 / 20 litre Ivomec Injection Cattle 1 ml per 50 kg 200 ml Sheep 0.5 ml per 25kg 500 ml Ivomec Plus Cattle 1 ml per 50 kg 500 ml Injection Ivomec Eprinex Cattle 1 ml per 10 kg 250ml Deer 1 ml per 10 kg 1 / 2.5 / 5 l Ivomec Maximiser Sheep ewe (1 capsule) 40 - 80kg lamb(1capsule) 20 - 40kg Eqvalan Paste Horse Extender 100 Sheep per ewe Extender SeCo per ewe Extender SeCo per lamb Junior Cattle Endectocides A South Island Veterinary Service: Product Dose rate Genesis Injection 1 ml per 50 kg Genesis Pour-On 1 ml per 20 kg Genesis Ultra Pour-On

1ml per 10kg

Unit size 500 ml 1 / 2.5 / 5 10 litre 2.5 / 5 litre

Please check with retailer for current prices 95

Est Retail Price $154 / $514 $176 $311 $292 $70 $196/$426/$555 $3 - $10 per cap $2 - $90 per cap $21 $2.65 $3.25 $2.90

Est Retail Price $267 $270 / $359 / $560 $1,040 $572 / $1,035 Prices Exclude GST

VetEnt Lincoln: Genesis pour on Eprinex pour on Vaccines PGG Wrightson Ltd: Multine 5 in 1 Plain Multine 5 in 1 Sel

1 / 2.5 litres / 5.5 litres 1 / 2.5 litres / 5 litres

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

$253.55 / $312.16 / $448.31 $175.96 / $382.05 / $482.41

250ml / 500ml 250ml / 500ml

$47.82 / $73.90 $56.51 / $78.25

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Pink eye patches, calf x 10pack / adult x 10pack $52.13 Extra glue $17.35 A North Island Veterinary Service offers the following: Rotavec Corona for Rota virus –2ml Salvexin for Salmonella –2ml Lepto booster (NB this is a Vet. administered cost) Scabiguard for Scabby Mouth 250 doses

$7.95 per dose $1.12 per dose $2.00 $64.26

VetEnt Lincoln: Campy 4 for vibriosis abortion - 2 shots initially then yearly. – 500ml Salvexin+B for Brandenburg abortion - 2 shots initially then yearly – 500ml Toxoplasmosis vaccine for sheep 1shot/lifetime – 200 dose pk Yersinivax vaccine for Yersiniosis – 50 dose pk Piligard - a vaccine to prevent pink eye in cows (2ml dose)

$0.69 / hd $0.95 / hd $2.11 / hd $3.16 / hd $4.49 / hd

Bloat Control Agmax Industries Ltd: ($35 freight fee for all orders under $250) Bloatbuster (Alcohol Ethoxylate) 20 / 100 / 200 litre $158.26 / $677.39 /$1,173.04 Bloat Stop 20 / 100 / 200 litre $173.04 / $720.86 /$1,216.52 PGG Wrightson Ltd: Bloat Control Bloatenz 2 in 1 Bloatenz Plus Bloateze

200 litre 200 litre 200 litre 20 litre

Growth Promotants Elanco Animal Health: Rumensin Capsules

$1,154.00 $1,339.13 $1,320.00 $225.22

per capsule

Please check with retailer for current prices 96

Prices Exclude GST

$17.50

2.3.3 Dips / Sprays / Ointments / Dressings (See also contract dipping costs, Section 2.4.7.) A South Island Veterinary Service: Product Dose rate Flypel Lambs/hoggets 5 to 12 ml Ewes/Rams 10 ml Fleecemaster Xterminated 10 Cypercare 1 ml per 5 kg Cyrazin Liquid Sheep 2 l per 1000 l water Cyrazin Spray-on Sheep

Unit size 5 litre 5 litre 5 litre 1 / 20 litre 2 / 5 litre 10 litre

Est Retail Price $238 $394 $151 $51 / $380 $202 / $375 $203

Elanco Animal Health: Sheep ectoparasiticides lice control Extinosad Dip 5 litres (makes 5000 litres of jetting dip) Sheep ectoparasiticides fly and lice control Cyrex Liquid 10 litres (makes 5000 litres of jetting dip) Pour-on Fly and Lice products PGG Wrightson Ltd: Formalin 20 litre

$405 $940

$103.49

VetEnt Lincoln: Maggo

1 litre

Disinfectants Agmax: Note: $35 freight fee for orders under $250 V-Cide Disinfectant 1kg / 2kg / 4kg

$69.56 / $130.43/ $234.78

2.3.4 Metabolics / Antibiotics (See also Section 2.3.13 for mineral supplements, licks etc.) VetEnt Lincoln: Enerlect (electrolyte) 1kg / 3kg / 10kg Selovin-5 500ml (Selenium for animals) â&#x20AC;&#x201C; per pk (Weight dose rate) Triple Mix (high energy drench) 1 / 20 / 60 litre / 200 lit containers Dextrose 40% 500ml Flexi Pack (Ketosis treatment) A South Island Veterinary Service advises the following: Selenium Treatment Selpour- rate depending on weight of animal Please check with retailer for current prices

$67.52

$29.48/ $63.06 / $139.19 $40.32 $16.92 / $150.48 / $426.23/ $1,263.23 $12.20

2.5 litre approx. $155 Prices Exclude GST

Copper / Cobalt Treatment A North Island Veterinary Service charges the following, per cow: Copacap 20g bolus Costs per calf: Cobalt injection (Prolaject) -500ml Copper capsule (Copacap 10 g) PGG Wrightson Ltd: CobalJect 1000 B12 500ml CobalJect 2000 B12 500ml

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

ea $3.39 $0.41 $2.78

Unit size 500 ml

Price $52.17

500 ml

$86.95

Antibiotics (for cattle) A North 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 $7.91 Mastalone (20 tubes per box) per tube $9.91 Metriclean per tube $24.70 A South Island Veterinary Service: Dry Cow Treatment: Cepravin 200 tubes per pack, also as single tubes A North Island Veterinary Service Engemysin Excenel Metricure syringe Pharmacillin (for routine retained foetal membranes, wounds, lame cows) Bell-Booth Ltd: Product Che’garl Original Che’garl Liquide Che’garl la Gorge (respiratory plus) Che’garl Seaweed Meal Che’garl Apple Garlic Cider

approx $4.83 per tube

100ml 100 ml each 250ml 25ml dose (usual x3)

Pack Size 2 / 5 / 20kg 1 / 5 / 20 litre 100 plus litre bulk 1.2kg 25kg 5 / 20 / 200 litre

Elanco Animal Health: Tylan Injection (1ml per 20 kg bodyweight) Please check with retailer for current prices 98

$69.29 $177.48 $24.70 $75.56 ea $7.56

Price $29.60/$45.20/$140.00 $15.60/$38.20/$120.00 $5.60 per litre $72.80 $112.00 $29.50 / $88.50 / $638.00 $75.00 per 100 ml

Prices Exclude GST

2.3.5

Animal Health Services

Farmed Animal Practices â&#x20AC;&#x201C; VetEnt Lincoln pricing Farm visit Including first 20 minutes Extra fee per 5 minutes After hours (over and above usual fee)

$78.26 $19.57 $46.09

Travel charge per km(charged one way only) Pregnancy test Manual (per head) Ageing (per head) Scanning (per head)

$2.63 $2.30 $3.16 $2.10

Metricheck / Metricure: A North Island Veterinary Service offers the following: Screening for post calving/uterine infections Vet or Technician Metricure Treatment for post calving/uterine infections per animal

per animal $1.17 $6.95

Deer TB Testing: From 2018 this will be 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 $22.50 per five minutes. Calf Disbudding / Dehorning: Ultra-Scan Ltd: (varying costs) 2016 prices Disbudding/dehorning (gas) â&#x20AC;&#x201C; incl local anaesthetic if used+ team two technicians & double crates

Please check with retailer for current prices

$4.00 to $5.50 per calf

Prices Exclude GST

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 $124.50 $4.00 9 to 14 $117.50 $3.77 15 to 20 $110.50 $3.54 21 to 30 $103.50 $3.10 31 to 40 $96.50 $2.87 Surcharges: 1. $3.55/mg of sporidesmin for dose rates >0.29mg/kg weight 2. Weights above 30 kg Example 1 5 animals weighing on average 55 kg and being dosed at 0.40mg/kg weight Base charge 5 rams x $124.50 $622.50 Surcharge for weight 5 rams x 25 (Weight over 30kg) x $4.00 $500.00 Surcharge for Spdm 5 rams x 55 x 0.10 (Spdm over 0.30) x $3.55 $97.63 Total $1,220.13 Average $ per ram $244.00 Example 2 15 animals weighing on average 55 kg and being dosed at 0.40mg/kg weight Base charge 15 rams x $110.50 $1,657.50 Surcharge for weight 15 rams x 25 (weight over 30kg) x $3.54 $1,327.50 Surcharge for Spdm 15 rams x 55 x 0.10 (Spdm over 0.30) x $3.55 $292.88 Total $3,277.88 Average $ per ram $218.50 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. Faecal Egg Counting:

www.techiongroup.com 0800 332 725 Techion Group Ltd: Laboratory Testing Service: Test Pack – Generic Faecal Egg Count Larval Culture Fluke Culture Pasture Spore Count FECPAKG2 – Online Faecal Egg Counting Unit End User Subscription (one year) Commercial Subscription Please check with retailer for current prices

100

$12.00 $12.00 $55.00 $25.00 $10.00 $1,500.00 $850.00 POA 100

Prices Exclude GST

2.3.6 Animal Health Equipment Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Spore counting kit for Facial Eczema 5 pack $26.04 Drench Guns: HSW Drench-matic 10ml / 23ml / 30ml $195.65 - $221.74 Genia large bore drencher 250ml $120.87 Drench bottle easy drencher 1.2 litre capacity $17.35 Plastic (manual) drencher $60.83 $78.22 70ml to 300ml Genia (manual) 50ml/70ml to 250ml $69.52 to $103.47 ISL Optimiser 12.5ml $69.52 Vaccinators: Henke Ferro-matic Henke Pistol Grip Henke Vet-matic Intra rumen injectors ISL Acu-vax IS Optimiser Injector ISL V-Vaximate ISL V-Vaximate Bloat: Bloat knife / sheath Trocar plastic screw Trocar - stainless Intra-rumen injector for bloat Backpacks: Flexipack Back Pack (complete) 5 litre

5ml 10ml / 30ml & 50ml 5ml / 10ml 300ml / 450ml 1ml to 5ml 2ml - 12.5ml (Â˝ml incs) 10 ml 10ml

$242.61 $86.91 / $112.17 $173.04 / $242.61 $129.57 / $155.65 $21.70 - $23.43 $37.35 - $41.70 $34.74 $34.74

5mm to 10mm 9mm to 12 mm 300ml / 450ml

$24.30 / $17.35 $22.56 - $26.04 $57.35 - $34.74 $129.56 / $155.65 $34.74

Mastitis: Mastitis Test â&#x20AC;&#x201C; Draminski (electronic) Standard / memory Concentrate mastitis test solution 1litre / 5litre Concentrate kits Complete Mastitis test paper 25 pack Cow Hobbles: Webbing and rings 20 cm / 35 cm leg spacing Welfare approved 35 cm leg spacing Leg Splints: BOS /Ozland ranges Calf / hindleg / small cow / XL cow Rumen Magnets: 12 pack Bovivet introducer Tape Scrotal Measuring: 60 cm plastic wand

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101

$677.39 / $781.74 $19.96 / $81.70 $43.43 $11.26 $47.78 / $52.13 $69.53 $52.13 - $69.52

Prices Exclude GST

$34.74 $69.52 $86.91 $78.22

Te Pari Ltd: (Further features available for purchase) From G10 Dosing Gun To V20 Smart Injection Gun with many variations and accessories PGG Wrightson Ltd: Calf Drencher Bovivet Mastitis Tester – Draminski Std Cpt V-Vaximate Drencher V-Vaximate Injector

$995.00 $1,700.00

$34.77 $677.39 $52.17 $35.64

10ml 10ml

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 $3,240.00 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 $6,350.00 Upgrade Kits – to upgrade unmetered to deluxe metered $3,110.00 Accessories: Teat Spray 50 litre tank, regulator, gauge, hose etc (no gun) $745.00 Teat Spray gun $75.00 In-Line filter kit – boosts performance of older drench systems $199.10 Numedic hand - Standard Nozzle / Hooked Nozzle $173.00/$180.00 gun 24 hour mixing timer $27.50 Air compressor – 2.5hp $415.00 PETA Enterprises: Peta Bloat dispenser** Peta Bloat dispenser** Peta Multi-purpose solid dispenser 24hr* Peta Zinc 24 hour dispenser * Peta Multi Purpose solid dispenser 48hr* Peta Zinc Dispenser 48 hour* Peta 5 litre flagon Peta 10 litre jerry can Peta 20 lite Cube jerry can *Fits to either a 5, 10 or 20 litre container. ** Fits either a 5 and 10 litre container

pack 1 (24 hour), 1 dispenser pack 2 (12 hour), 2 dispensers for Mg, salt, trace elements, etc for zinc sulphate for Mg, salt, trace elements, etc for zinc sulphate

Please check with retailer for current prices

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$114.56 $234.40 $205.10 $219.14 $298.08 $314.10 $9.30 $23.36 $30.80

Prices Exclude GST

Drench Gun Services Ltd: Metal Injectors: 1 ml / 2 ml Automatic Injector 5 ml Automatic Injector 5 ml Automatic Lever Action Injector 5 ml / 10 ml Automatic Vaxmaster Injector 25 ml / 50 ml Repeater Injector 1 ml / 2 ml / 5 ml automatic injector with bottle attachment Metal Drenchers: 8 ml Lamb Drencher 20 ml Automatic Drencher 30 ml Automatic Sheep Drencher 60 ml Cattle Drencher Automatic Plastic Drenchers and Injectors: 1 ml / 3 ml / 5 ml / 10 ml Plastic Injector 1 ml Plastic Disposable Injector (box of 10) (Also in 2 ml, 3 ml, 5 ml & mixed box) 12.5 ml Drencher/Injector 25 ml / 50 ml Repeater Injector 20 ml Plastic Repairable Drencher 30 ml / 60 ml Plastic Repairable Drencher 25 ml Plastic Drencher 30 ml / 60 ml / 150 ml Plastic Non-automatic Drencher Pour-on Applicators 30 ml XP30 X-Stream Plastic Repairable Pour-on 65 ml Plastic Repairable Pour-on Jetting: Dutjet Jetting Handpiece

$125.63 $115.75 $161.00 $135.00 $125.63 $149.50 $111.13 $139.13 $176.75 $188.50 $25.38 $178.75 $91.38 $96.25 99.13 $104.38 $52.00 $108.13 / $108.13 / $167.38 $56.25 $69.63 $190.50

Accessories: Floating Hook 2.5 ltr & 5 ltr Hard-sided Backpacks 5 litre Collapsible Backpack Powered Instruments: Powermaster Powered Drencher and Injectors

$99.13 $42.88 $28.38 from $550.00

PGG Wrightsons Ltd: Footrot trough FT1

$199.00

For calving and lambing equipment see Section 2.3.15 (Stock Management)

Please check with retailer for current prices

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2.3.7 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 $87.50 / $67.50 Entire/Desexed - other $152.50 / $132.50 Gore District Council Rural Dog Urban dog / Urban de-sexed and fenced (or controlled property)

$25.00 $120.00/$90.00

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

$48.00 $110.00

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

$40.00 $35.00 $110.00

Marlborough District Council Non-working Category 1 / Category 2 Working dog / Property Licence – 3 or more dogs

$57.00 / $86.00 $24.50 /$77.00

New Plymouth District Council 2 rural dogs / and subsequent dogs Residential dog /less rebates for responsible owner + neutered

$58.00 ea / $28.50 $155.00 / $32.00+$19.50

South Taranaki District Council Rural dogs (first 2 dogs) 3rd and subsequent dogs Urban dogs / de-sexed dogs

$82.50 ea / $67.50 ea $115

Other Districts: Working/Rural Dogs (rebates are often available on desexed dogs and for second or subsequent dogs) Selwyn first / subsequent $40 / $30 $36 / $36 Tararua rural domestic/rural working $30 / $50 Tasman >1ha rural / urban <1ha Waimate first/ subsequent dogs $30 /$30 Whangarei de-sexed / working / std $49 / 48 / $62 Dog Feed – see Section 2.3.13 Please check with retailer for current prices

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2.3.8 Breeding Expenses The average or range for each region is as follows: Dairy 2016/2017 National Source: DairyNZ Economic Survey 2016/2017.

(per cow) $53

Heat Detection Livestock Improvement Corporation:

LIC Bulls-i® $ / detector 1-999 $1.95 1,000 – 2,999 $1.85 3,000 – 9,999 $1.70 10,000+ $1.45 Urgent dispatch and cancellation fees apply

(per kg MS) $0.14

Protrack Heat Patch $ / detector $2.70 $2.60 $2.50 $2.20 Peel ‘n Glue (pkts 20 or 80) $ / detector $2.40 $2.30 $2.15 $1.90

KAMAR® Heatmount® Classic (pkts of 25 or 100) Detectors $ / detector 1-999 $2.30 100 – 2,999 $2.20 3,000 – 9,999 $2.05 10,000+ $1.80 Urgent dispatch and cancellation fees apply Gallagher: indicative retail pricing only Flashmate 96 pack Flashmate 24 pack

$663.65 $165.91

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Artificial Breeding (Dairy Cows): Livestock Improvement Corporation: Nominated Semen Options â&#x20AC;&#x201C; AB Technician Service Insemination fees for nominated semen are $6.65 per insemination for up to and including 300 inseminations, then $6.35 from 301 to 600 inseminations, and $6.05 from 601 upwards. DIY training $699 for a five day course. One day refresher course is $180.00. Leasing of deep freeze banks subject to availability; $98.60 fixed fee plus $10.90 per week or part thereof (subject to availability of banks), plus nitrogen. A non - refundable deposit of $46.60 is charged on application for lease. Semen storage, 52 cents per straw per year. Minimum charge $52 charged annually. Semen dispatch fees for LIC semen: DIY clients will be charged a dispatch fee of $30 per order. These fees are charged directly to the client. Transfer fee (handling fee) of $30 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 Genomically Daughter proven Genomically Selected Selected 1 to 100 $23.65 $26.65 $22.65 $25.65 101- 200 $23.05 $26.05 $22.05 $25.05 201 - 300 $22.45 $25.45 $21.45 $24.45 301 - 400 $21.85 $24.85 $20.85 $23.85 401 - 500 $21.25 $24.25 $20.25 $23.85 501 - 600 $20.65 $23.65 $19.65 $22.65 601 - 700 $20.05 $23.05 $19.05 $22.05 701 - 800 $19.45 $22.45 $18.45 $21.45 801 - 900 $18.85 $21.85 $17.85 $20.85 901- 1000 $18.25 $21.25 $17.25 $20.25 1001- 1100 $17.65 $20.65 $16.65 $19.65 1101 - 2000 $17.00 $20.00 $16.00 $19.00 2000 plus $16.10 $19.10 $15.10 $18.10 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 as follows: 1st 100 inseminations @ $23.65 2nd 100 inseminations @ $23.05 3rd 100 inseminations @ $22.45 20 inseminations @ $21.85 Total: 320 inseminations

$2,365 $2,305 $2,245 $437 $7,352

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Cattle Embryo Transfer Fees: Embryo Co: 1. Flush Price Per Donor Cow (Take off $50 for In-Centre Collections) For 4 or more Donors in a programme $225 per donor FSH plus $ 300 per donor flush For 3 Donors in a programme $225 per donor FSH plus $ 350 per donor flush For 2 Donors in a Programme $225 per donor FSH plus $ 400 per donor flush For 1 Donor in a programme $225 per donor FSH plus $ 450 per donor flush 2. Fee per Embryo transferred $ 90.00 3. Freezing and thawing To freeze each embryo (NZ use): $45.00 Freezing for Export: $90.00 Thawing and transfer per embryo: 1 to 9 Embryos: $110.00 Surgical transfers Above 10: $90.00 add $30 (onUp to 10: $90.00 centre only) Quick Thaw embryos: Up to 10: $90.00 Above 10: $70.00 4. In Centre: You can send your donor cows to our centre in Hawkeâ&#x20AC;&#x2122;s Bay for their programmes. Charges as above except add programming and grazing charges as per on-centre price schedule. Grazing $42 per head per week ($6 per day) Calf $2.50 per day Programme: 1 donor $175 per donor 2 donors $155 per donor 3 donors $145 per donor 4 donors $140 per donor Artificial Insemination: $15.00 per AI There is an admin fee of $60 per flush per client (1or multiple cows) to cover paperwork and compliance costs and a flush fee of $20. Recipients: currently $1,860 plus $40 per embryo transferred for synchronisation costs. 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 at 75 cents/km. 6. Export: We are in the process of studying the feasibility of a new export centre. The export prices will apply to any embryos frozen to export standard even if they are never exported. There will be additional export fees per export consignment of approximately $800.00 Donor cows should be examined by your vet prior to commencing the programme. If Embryo Co does the examination a visit fee of $30 plus $10 per donor will be charged (plus mileage). Prices do not include any extra veterinary and health treatments. TB testing and certification should have been carried out. Please check with retailer for current prices 107

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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 $7.50 / head / day is also charged. Health testing / Diagnostics at $375 per bull. Deer Reproduction: Xcell Breeding Services Ltd: (Travel costs are also charged) Frozen semen collection and processing: 0 to 100 straws (per straw) 101 to 500 straws (per straw) 501 and over (per straw) Early post mortem sperm recovery from testicles (per straw) Elk and Red deer trans-cervical AI: Prices do not include synchronization or travel costs/hind. Under 10 hinds 11 to 25 26 to 50 51 to 100 101 plus

Per straw $12.00 $12.00 $12.00 $12.00 $/hind $25 $22 $18 $14 $12 (per hind)

Deer Reproduction Services: 2016 prices 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 $160 each Freezing embryos - local use $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 Less than 10 embryos 11 to 15 embryos 16 plus embryos

$/embryo $30 $25 $20

Pregnancy Detection: Please check with retailer for current prices

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Thawing embryos Less than 10 embryos 11 to 15 embryos 16 plus embryos

$/embryo $30 $25 $20

Pregnancy Detection: Refer to Section 2.4.9 for sheep and cattle Please check with retailer for current prices

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Prices Exclude GST

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 Sheep / Goat Reproduction: Xcell Breeding Services Ltd: Frozen semen collection and processing: On centre projects New Zealand straws only Export Australia straws Other countries Grazing at $5.00 per head per day is also charged. Export projects may carry special charges – apply for details.

$10.00 per straw $12.00 per straw $12.00 per straw

Genetic Gains Ltd: $120 set up fee (waived for jobs of over 150 ewes) Intrauterine AI Fresh or frozen semen 10 or less ewes $25.50/ ewe plus mileage 11 to 20 ewes $20.50 / ewe plus mileage 21 to 35 ewes $15.50 / ewe plus mileage More than 35 $13.00/ ewe plus mileage Price includes detailed AI programme, inseminations, consumables and assistant technician on the day of AI. All prescription drugs are sourced from your local vet. Multiple ovulation and embryo transfer With 5 or more donor animals $30 / donor AI’d If frozen semen & two insemination times used $50 / donor AI’d With 5 or more donors $400 / donor flushed $100 / recipient implanted $5.50 / recipient synchronised Plus mileage and accommodation if required Genetic Gains Ltd: Training - per ram $200 Agistment per ram per week first 4 weeks / thereafter $25 / $5 Processing Charges -Semen test – initial per ram $50 - repeats per ram per week $20 - Frozen semen per straw domestic $10 per straw export $10 - Fresh semen per straw $4 Storage – domestic per 100 straws or part per month $6.50 - export per 100 straws or part per month $7.50 Freight / per Dispatch / Liquid Nitrogen per dispatch at cost / $50 / $110 Health checks & Vet Inspections for Export collection Variable Please check with retailer for current prices 109

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2.3.9 Sire Purchases Sheep See also Section 1.2.10 and 1.2.11 for ewes, two tooths and lambs Rams The following are approximate values for flock rams: (Use as a guide only) Dorset Down $450 to $750 Corriedale $450 to $750 Polled Dorset $500 to $850 South Dorset Down $450 to $650 Perendale $400 to $1,000 South Suffolk $450 to $650 Border Leicester $450 to $800 Suffolk $450 to $700 Borderdale $450 to $750 Romney $550 to $1,750 Coopworth $650 to $1,750 Merino $450 to $1,000 Exotic Breeds: The following are approximate values for flock rams:

Range $450 to $1,500 $600 to $1,300 $450 to $750 $450 to $750 $700 to $1,500 $500 to $1,500 $900 $900

Texel Purebred East Friesian Purebred East Friesian ½ bred Finnish Landrace ½ bred Kelso Maternal Kelso Ranger Rissington Primera Highlander

Beef Cattle Bulls – Beef bulls vary greatly in price depending on breed, qualities desired, etc. Breeding Bulls at auctions The salvage value of bulls is currently $2,000 Angus $3,500 to $20,000 Hereford $3,500 to $20,000 Charolais $3,500 to $15,000 Simmental $3,500 to $15,000 Beef Shorthorn $2,500 to $10,000 Stabilizer $3,000 to $7,000

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Beef Breeding Cows, Heifers, Steers â&#x20AC;&#x201C; see Sections 1.4.3 Dairy Cattle See Section 1.5.6. Deer (i) Stags The average price for breeding and terminal stags (red deer and elk) is in the region of $2,000 to $5,000. Stud stag prices would be in the region of $3,000 to $10,000+ depending on whether they were for velvet or trophy lines. (ii) Hinds, Weaners, Yearlings, Velveting Stags See Section 1.6.2 Goats See Section 1.7.5 Pigs See Section 1.8.3 Alpacas and Llamas See Section 1.9

Please check with retailer for current prices

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Prices Exclude GST

2.3.10 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 $335.00 $2.19 nd 2 herd test $335.00 $2.19 rd 3 herd Test $235.00 $2.19 4th and subsequent tests $155.00 $2.19 Single Test 1st herd test 2nd herd test 3rd herd Test 4th and subsequent tests

Service Fee $335.00 $335.00 $235.00 $155.00

Sample Fee $1.99 $1.99 $1.99 $1.99

InvestaTest Discount Qualification for InvestaTest is at least 4 herd tests in a season. For the 2017/2018 season the InvestaTest discount levels are: 1st year 3 % discount in your first year of qualification 2nd year 5 % in second year consecutive year of qualification rd 3 and subsequent years 10% in third and subsequent consecutive year/s of qualification The discount will be paid as a rebate at the end of the season (after 31 May). It applies to visit and per cow fees only, not to the Assist and other services. InvestaMate Discount You will move up or down the InvestaMate scale each season depending on whether the 95% threshold was met in the previous season.Please note your straw purchase can be made up of any combination of Premier Sires or Alpha straws. Premier Sires Fresh Sexed and Sire Proving Scheme inseminations contribute towards the 95% of qualifying purchased but the discount does not apply to this product. The discounts are as follows: • 3% discount applied in first year of qualification – applied as a credit in March following the season’s mating • 5% discount will be applied in second year of qualification – applied at time of charging • 10% discount applied in third and subsequent years of qualification – applied at time of charging

Please check with retailer for current prices

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2.3.11 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 (See Sections 2.3.1 and 2.5.1) (per cow) (per kg MS) Northland $0.09 Waikato $0.07 Bay of Plenty $0.05 Taranaki $0.07 Lower North Is $0.06 West Coast - Tasman $0.05 Marlborough - Canterbury $0.05 Otago - Southland $0.05 National $23 $0.06 Source: DairyNZ Economic Survey 2016/2017. Detergents and Sanitizers Agmax Industries Ltd: ($35 freight fee for all orders under $250) Dairy hygiene products: Alkali sachets powder 100 / 150 / 250g 20 kg bag (barrel) $125.22 Acid sachets powder 20 kg bag (barrel) $117.39 Works acid detergent-sanitiser 20 / 100 / 200 litre $88.70 / $275.65 / $471.30 Maximum acid detergent-sanitiser 20 / 100 / 200 litre $106.96/ $466.96 / $799.13 Multiwash 900 liquid chlorinated alkali 20 / 100 litre $93.91 / $354.78 Agmax chlorine 20 / 100/200 litre $53.91 / $222.61/$382.61 Vat Cleaner 5 / 20kg $69.57 / $173.91 DeLaval: 2016 prices Teatspray Kontact Con Detergent Cidwash Detergent Clortech

20 / 60 / 200 litre 20 / 60 / 200 litre 20kg

AnQuip NZ Ltd: Topfoam LC Alk F10SC5L and XD5L Disinfectant 1:250

$239.19/ $849.50 / $1,529.50 $139.26 / $362.96 / $594.99 $113.00 22kg 5L

Please check with retailer for current prices

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$240.00 $455.00

Prices Exclude GST

Dairy Ointments, Soaps and Teat Sprays Agmax Industries Ltd: ($35 freight fee for all orders under $250) Teatspray products: Teatsweet (sachet packaged) 5 / 12 kg $311.30 / $689.57 Iodine teatspray 20 / 100 / 200 litre $194.78 /$781.74 /$1,303.48 Chlorhexidine Teatspray 20 / 100 / 200 litre $160.00 / $653.91/$1,117.39 Emollient products: Titivate emollient 20 / 100 / 200 litre $111.30 / $520.87 / $834.78 Sorbitol emollient 20 / 100 / 200 litre $98.26 / $426.96 / $671.30 Glycerine 20 / 100 / 200 litre $113.04 /$556.50 /$868.69 Bell-Booth Ltd: Elthamol Hygiene Products Pack Size Teat Salve 1.7 / 3.4 / 8.5 / 17kg Glycerine 5 / 20 / 200 litre Work Soap 500ml pump / 1 litre / 5 litre Pit Mitt One size

Price $17.75 / $32.05 / $75.60 / $144.40 $30.50 / $114.00 / $1,058.00 $10.20 / $14.50 / $62.50 $17.30

Dairy Shed Equipment Agmax Industries Ltd: ($35 freight fee for all orders under $250) Cambrian teatsprayer 5 litre capacity Drum pump standard Drum pump purchased with Agmax product with any 100 / 200 litre AnQuip NZ Ltd: Plastic Disposable Overboot Disposable Shoulder Glove Latex Gloves GEA NZ (Milfos): Milfos Blower vac. pumps Milfos NZ liner Milfos USA liner Milfos European liner Milfos IC330 Milfos air tube Milfos twin tube Milfos milk tube Milfos claw tube Suction tube Milfos milk pump Milk pump controllers Milk filter (each)

$86.96 $120.00 $106.96 / $93.91

50 per pack (25 pairs) 100 pcs per box 100 pcs 2,600 litre to 10,400 litre 10 series 20 series 50 series 1220mm / 20m 1220mm / 20m 1220mm â&#x20AC;&#x201C; (16mm / 19mm) 20m â&#x20AC;&#x201C; (16mm / 19mm) 165mm / 190mm 22mm to 35mm 0.75 to 1.5kW On/off control

Please check with retailer for current prices

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$24.50 $18.50 $10.00

$3,871.15 to $9,714.84 ea $5.70 - $7.16 ea $6.13 - $7.16 ea $6.13 $213.91 $12.10 to $202.65 $13.19 / $212.75 $14.37 / $17.77 $207.80/$268.47 $2.06 / $2.32 $131.48 to $285.88 $2,222.13 to $2,493.86 $779.75 to $2,633.04 $922.17 to $2,529.80 Prices Exclude GST

GEA NZ (Milfos): cont Filter sleeve (per 100) Filter sock (per 100) Milk cooler Single Bank (18 to 104 plate) Industrial Single 3,000 to 12,000L/hr Industrial Double 4,000 to 10,000L/hr Receiver Ixpress 3 600 RH & LH Ixpress 4 600 RH & LH Test buckets Plastic / stainless steel Mastitis detector Ambic 12.7mm / 15.9mm Jetter Hyjet 38mm / 50mm Porta check SCC milk test Disposable test kit for SCC 24 test kit 100 test kit Digital reader Washline injector Hot water cylinder Cotswold Supaspray iNTELJET2 PGG Wrightson: Aqua Dairy Aprons Aqua Dairy Overtrousers Aqua Dairy Jacket Gumboots Gloves Dairy Floating Thermometer

$33.84 to $114.90 $34.76 to $114.10 $1,728.91 to $4,322.45 $3,279.00 to $5,084.20 $5,162.00 to $7,883.78 $2,753.86 $3,263.61 / $3,041.95 $306.58 / $571.80 $63.50 / $58.35 $175.05/ $182.05 $72.25 $256.21 $630.41

iNTELJET 2 150mm system Galvanised Stainless steel case

$1,962.62 $1,922.86 to $5,166.33 $2,221.35 to $6,973.25 $1,366.04 $1,962.62 to $1,360.49

150mm / Loop Line System

Light Shedline to Heavy Shedline Red Band to Tay Muckmaster Milking Caged / Housed

$27.82 to $35.64 $103.48 $164.35 $65.21 to $164.35 $18.25 $17.38 / $18.25

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Milking Apron / Gown Lightweight $43.43 / $86.91 $20.65 / $11.26 Teat sprayer compact / Tecoma wide neck Teat sprayers short and long 1 litre $12.13 / $13.87 Teat sprayer short / long nozzle (Viton) $22.56 / $24.30 Udder Gun (Compressed air teat sprayer) 1 litre $346.96 Teat dip cups â&#x20AC;&#x201C; nonreturn $17.35 Quartermilker complete 8 litre $69.52 Kick stop - complete $26.04

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McNeill Ltd: Dairy shed wash down pumps Dairy Blaster range kW 4.0 5.5 7.5 11 Variable Speed Washdown pumps 5.5 7.5 Dairy shed vat wash 3 phase VW5 0.73 V W 10 1.04 V W 15 1.09 43South: ONGA Hi Flow Cast Iron Centrifugal Pumps Model 182 1500W 183 2400W 184 3800W 185 6000W Dairy Shed In-Place Cleaning Stainless Steel Centrifugal Pumps Model SSS2102 SSS2103 43South: Southern Cross Wash Down Model 80x50-200 11 kw 65x40-200 11 kw 65x40-200 7.5kw

Pressure 43psi 50psi 37psi 50psi

litres per minute 415 530 1330 1350

38psi 70 / 37psi

833 500 / 1330

$5,940 $6,880

36psi 30psi 22psi

85 135 200

$611 $828 $1,204

50psi 59psi 71psi 77psi

240v 240v 415v 415v

Price $1,955 $2,295 $2,465 $3,570

$1,551.60 $2,074.80 $2,418.00 $3,032.40 $649.00 $689.00

415v 415v 415v

$5160.00 $5174.00 $4158.00

Note: For the cost of complete dairy shed units see Section 2.21.2 Annual Certification 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 for a fee between $200 and $450. 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 $200 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. Please check with retailer for current prices

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2.3.12 Calf Rearing Cost of Calf Rearing (Source Dairy Systems Group, Massey University, May 2018) Feed Costs for Friesian (40 kg) calves over first 10 weeks of life: (i) 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 350 litres @ 53¢ $280.90 Pasture: 0.4 kg DM per day for 70 days 28 kg @ 20¢ $5.60 $286.50 (ii) 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 210 litres @ 53¢ $111.30 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 (iii) Ad Lib Milk Daily gain over 10 weeks – 1.0 kg per day Live weight at 10 weeks – 110 kg Whole milk: 8 litres per day for 42 days 336 litres @ 53¢ Calf Meal (18% CP): 0.8 kg per day for 25 days 20 kg @ 75¢ Pasture: 2 kg DM per day for 28 days 56 kg @ 20¢ (iv) 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 Milk powder: 250 g per day for 35 days High Protein Calf Meal (20% CP): Ad lib Straw: Ad lib

70 litres @ 53¢ 8.75 kg @ $5.00 125 kg @ 85¢ 1 bale @ $5.00

Assumption $6.00/kgMS payout

Please check with retailer for current prices

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$178.08 $15.00 $11.20 $204.28

$26.20 $43.75 $106.25 $5.00 $192.10

Prices Exclude GST

Feeding Equipment Tokoroa Engineering (2014) Ltd: Feed Trailers Premium 4m Meal Feeder North Island Premium 6m Meal Feeder North Island Premium Calf 6m Meal Feeder - New Zealand wide Quick Hitch 6m Meal Feeder North Island Economy 4m Meal Feeder North Island DrawBar 4m Meal Feeder North Island Milk Bar Mobile (Single Axle no suspension) Milk Bar – 50 / 60 Classic 500L Deluxe Range (Springs and levelling) Milk Bar – 40 Deluxe Single Axle 500L Milk Bar – 40 Deluxe Tandem Axle 500L / 750L Milk Bar – 60 Deluxe Single 500L Milk Bar – 60 Tandem Axle 500L / 750L Milk Bar – 80 / 100 Deluxe 3 Axle 1,100L Replacement troughs 4m Economy & 4m / 6m Calf Trailer 20 / 40 Calf Trailer *Field day prices

$3,042.61 $4,520.87 $3,346.96 *$4,375.07 *$2,510.39 *$1,738.63 $3,477.39 / *$4,018.35 *$3,942.75 *$4,929.75 / *$5,020.05 *$4,498.20 *$5,213.25 / $5,564.34 *$7,919.10 / *$8,821.05 *$869.40 / *$1,250.80 $3,999.13 / $5,216.52

McInnes Manufacturing Ltd: Milk Feeders Milk Bar Teat Milk Bar Colostrum Teat Milk Bar Trainer Bottle Milk Bar 1 to 12 Milk Bar compartment 2 to10 spaces Milk Bar Kart 125 L no pump/battery/whisk - deluxe incl pump / battery Milk Bar teat tool Meal – Pellet Feeders: Braden Start Nipple Braden Start Bottle Snack Bar Munch Trough Bird Proof Meal Bar Waterers and accessories: Snack Water Trough Calf Pen Waterer / Tri Pen Waterer McInnes Float Valve McInnes Dispenser – Single McInnes Dispenser – Tandem

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$3.73ea $3.90ea $25.38 $26.08 to $287.41 $87.65 to $269.20 $1,658 to $2,816 $123.37 $7.13 $43.96 $44.28 $88.00 $316.68 $92.05 $108.72 / $263.54 $34.95 $711.63 $1,066

Prices Exclude GST

Shoof International: (Incl delivery NZ some exceptions. Can change without notice) Calves: Weigh Tape Calf size to horse, imperial $13.00 Calf Feeders Milk Train 2-place $43.43 Easy Feeder / Speedy Feeder $17.35 / $26.04 Rail Bucket 6-place $120.87 M1 feeder (wall / rail mounted) $34.74 Colostrometer Milk tester Kruuse $52.13 Meal Start Feeder Fill bottle for pellets/meal/grains etc $43.43 Teats Soda bottle (calf) Each $5.70 Electric Milk Warmer Standard or Teflon $500.00 / $564.35 Milk Powder Whisk 45 / 60 cm $30.39 / $37.35 Milk Powder Mixer $26.04 Milk Powder Plunger Varieties $52.90 to $97.55 PGG Wrightson Ltd: Calf Feeder Tubing 30m Calf Feeder Tube Stop-Valve Calf Feeder Milk Maid 5 Teat 25 litre Calfeteria 12 T 80 litre Calf Feeder 16 Teat compartment MF50s Calf Feeder 50 Teat non-compartment, 450 litre Calf Teat, Excal Fast Flow Calf Pen Meal Trough 16 litre

$43.47 $1.21 $143.48 $225.22 $277.39 $4,138.26 each $2.86 $65.21

Calf Rearing Milk Tanker C-Dax Ltd: (Please note freight charge will apply) InEx Multi, 500 l trailed, Honda engine driven centrifugal pump, jockey wheel Optional flow meter

$3,775 $269

Other Calf Rearing Equipment Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Debudders LPG Heavy Duty 18mm tip complete $433.91 Farmhand LPG $303.48 GasBuddex $520.86 Portasol $338.26 Electric other models $173.04 - $433.91 Barnes Dehorner 32cm economy / quality $33.00 / $129.57 42cm economy / quality $39.09 / $173.04 Debudding Paste Hornex 20 g tube $13.00 Calf neck bands 10 pack various colours $11.26 - $13.00 Calf mothering double collar $52.13 Calf handling rope $17.35 Calf leads (nylon or leather) $11.26 - $14.74 Calf collar leather $22.57 For calf shelters and sawdust for calf sheds see Section 2.21.13. Please check with retailer for current prices 119

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Buckets Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Galvanised Bucket 11 litre $26.04 2.3.13 Feed and Nutrition Milk Replacers Bell-Booth Ltd: Calf Nutrition and Probiotic Queen of Calves (Finisher) Rearing to go mixing system Queen of Calves (Starter)

20kg

$154.00 $1,850.00 $102.00 / $311.00

5kg / 20kg

PGG Wrightson Ltd: Anlamb 5 / 10 / 20kg Ancalf CMR 20kg

$52.17 / $73.90 / $100.00 $93.04

Mineral / Nutritional Supplements (See also Section 2.3.4 for metabolics) Agrifeeds trading as 4Seasons Molasses Ltd: Molasses - feedgrade Rumol 300 Rumol 600 Rumag 300 Rumag 600 Himag Calcimol Zinmol

North Island $295 $355 $385 $405 $435 $425 $375 $440

per tonne per tonne per tonne per tonne per tonne per tonne per tonne per tonne

Agritrade Ltd: Magnesium sulphate Sodium Bicarbonate Calcium chloride flakes Hyfat Prill RumenX Calf Feed Magnesium chloride prills Magnesium chloride flakes Mono Prop Glycol

Per kg 25 kg 25 kg 25 kg 15kg 25 kg 25 kg 20 lit 200 lit 4 lit / 10 lit 20 lit / 100 lit

Grapple

South Island $295 $360 $385 $405 $435 $435 $370 N/A $1.21 $29.56 $22.60 $56.52 $73.90 $10.97 $15.00 $138.26 $955.65 $100.00 / $216.52 $381.74 / $1,529.57

Agmax Industries Ltd: ($35 freight fee for all orders under $250) Stockfood Supplement 20 litre / 100 lit / 200 lit $94.78 / $303.48 / $477.39 Please check with retailer for current prices

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Prices Exclude GST

Bell-Booth Ltd: Nutrimol Colostrum Keeper 5 litre / 20 litre / 200 litre Classic (60 minerals) 1 litre / 5 l / 20 l / 200 l Dosatron inline water Model 3,000 0.2% to 2% dispensers Model 8,000 0.2% to 2.0% Caramillo masking agent 5 litre / 20 l / 200 l

$33.50 / $88.00 / $725 $17.80 / $64.50 / $227 / $1,932 $1,530.00 $2,755.00 $68.00 / $219 / $1,885.00

Trace Elements (drench or dose stock water) Pack size IntenSE Calcium 20 / 200 litre IntenSE Cobalt 20 / 200 litre IntenSE Copper 20 / 200 litre IntenSE Iodine 20 / 200 litre IntenSE Magnesium Sulphate 200 / 1,000 litre IntenSE Magnesium Chloride 200 / 1,000 litre IntenSE Selenium 2.5 20 / 200 litre IntenSE Selenium 5 20 / 200 litre IntenSE Copper Chelate 20 / 200 litre IntenSE Zinc Chelate 20 / 200 litre

Price per bag $105.00 / $700.00 $183.00 / $1,445.00 $173.50 / $1,288.00 $313.00 / $2,468.00 $722.00 / $2,835.00 $861.00 / $3,260.00 $107.00 / $750.00 $135.00 / $918.00 $376.50 / $3,250.00 $369.00/ $3,170.00

ACV Health Products: Organic products Cider vinegar (organic) 20 / 200 l $76.00 / $555.00 Cider vinegar + garlic (organic) 20 / 200 l $84.00 / $624.00 Cider vinegar + garlic + manuka honey 20 / 200 l $95.00 / $730.00 (organic) Cider vinegar + garlic + seaweed (organic) 20 / 200 l $118.00 / $800.00 Non organic, Double Strength Cider vinegar 20/200/1,000 l $62.00/$497.00/$2,071.00 Cider vinegar + garlic 20/200/1,000 l $66.00/$524.00/$2,241.00 Cider vinegar + garlic + manuka 20/200/1,000 l $77.00/$630.00/$2,771.00 honey Cider vinegar + garlic + seaweed 20/200/1,000 l $99.00/$699.00/$2,983.00 Chengeta Crop Care Ltd: Tracemol Lift Tracemol Dairy (Toptrace Dairy) Regulator 10%

5 / 20 /200 l 20 / 200 l 20 / 200 l

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$51.22 / $157.38/ $1,257.13 $160.71 / $1,411.38 $202.53 / $1,550.00

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Prices Exclude GST

PGG Wrightson Ltd: Summit Dairy Amaize 25kg Summit Dairy Magnesium Mix 25kg Cattle Young Stock Block + Rumensin 25kg Cattle Mineral Block 25kg Max Block Forage 22.5kg

$14.77 $24.34 $60.86 $52.17 $56.51

Livestock Supplies (N.Z.) Ltd: Bentonite - Granular / Trubond (fine) Bicarbonate of Soda Calcium chloride Copra meal Dextrose Diamond V yeast Dicalcium phosphate Garlic powder Manganese Sulphate (feed) Molasses - Liquid (over 100kg costs $0.40 / kg) Mono Propylene Glycol Seaweed – Meal Vitamin A 500,000 iu/g Vitamin D3 500,000 iu/g Vitamin E 500 iu/gm Bio Start – Ruminant Calf 2 litre Bio Start – Ruminant 2 / 5 / 10 litre Dairy Cow Minerals 2,500 doses Ewe Spray Mix 1,000 doses Lugals Iodine per litre Potassium Iodate 1 kg Potassium Iodide 1 kg Calmag 1 kg Lime Flour 1 kg

Please check with retailer for current prices 123

$0.55 / kg $1.00 / kg $1.00 / kg $0.88 / kg $3.60 / kg $7.80 / kg $0.90 / kg $9.50 / kg $1.70 / kg $0.50 / kg $4.60 / kg $5.26 / kg $550.00 / kg $265.00 / kg $92.00 / kg $128.00 $84 / $200 / $387 $72.00 per bag $55.00 $29.00 $90.00 $120.00 $0.60 $0.25

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Prices Exclude GST

Salt Agritrade Ltd: Rock Salt Aa grade Agsalt Coarse / Fine

25 kg 20 kg

$21.74 $10.43 / $11.73

Livestock Supplies (N.Z.) Ltd: Cattle Salt Blocks Plain Salt Blocks Organic Hi Mineral Salt Blocks Hi Mineral Salt Blocks Hi Country Salt Blocks Hi Mineral Stock Lick Hi Mineral Molasses Lick Organic Hi Mineral Stock Lick Rock Salt Salt â&#x20AC;&#x201C; Fine / Salt G22

20 kg 20 kg 20 kg 2.5 kg / 20 kg 20 kg 25 kg 25 kg 25 kg 25 kg per kg

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

$15.75 $12.00 $22.00 $3.40 / $18.50 $18.50 $21.00 $21.50 $24.65 $13.00 $0.55 / $0.41 Price per unit $25.21 $25.21 $16.48

Concentrates Meal / Crumble / Pellet / Nut Dairy and Calf Feeds PGG Wrightson Ltd: Product (Dairy) NRM Multifeed Nuts Dairy Meal Hi Energy Gusto 50/50 Calves Ready Rumen Grow Up 20% Pellets Calf Pro 1 Pellets 20% (SI only) Calf Pro 1 Pellets 20% (NI only) Calf Grow 16% Pellets (SI only) Reliance Calf Pellets 16% Dog Feeds PGG Wrightson Ltd: Tux Energy

20 kg 25 kg 25 kg

Price per unit $20.86 $21.73 $21.73

25kg 20kg 20kg 20kg 20kg 25kg

$26.95 $20.86 $20.86 $21.73 $19.99 $26.07

25 kg

Pig Rations PGG Wrightson Ltd: NRM Big Pig Nuts Barnyard Pig Choice Pellets

20 25

Please check with retailer for current prices 124

$69.56

$23.47 $22.60 124

Prices Exclude GST

Horse Feeds PGG Wrightson Ltd: Sweetfeed NRM NRM Horse Coolade NRM Mare Balancer Nuts NRM Prepare NRM Assett Fisken Horse Balancer Broodmare Mix NRM Run Free Advance Sport Horse Horse Mineral + Garlic Block Horsefeed + Mycotex Block

20 kg 20 kg 20 kg 20 kg 20 kg 25 kg 25 kg 20 kg 25 kg 15 kg 15 kg

Poultry Feeds and Premixes PGG Wrightson Ltd: Product Chick Starter Crumble Pullet Grower NRM Meatbird Crumble Barnyard Layer Mash Barnyard Layer Pellets Peck n Lay Gold Pellets Peck n Lay Poultry Pellets

Quantity kg 10 / 25 20 20 25 10 / 25 10 20

Deer / Sheep / Beef / Alpaca and Goat Feeds PGG Wrightson Ltd: Product NRM Multifeed Nuts Multifeed Nuts + 7kg Zinc (NI only) NRM Sheep Nuts Max Block Lamber Country Harvest Alpaca Pellets Country Harvest Alpaca Pellets + Zinc Feed Grains PGG Wrightson Ltd: Product Gusto Whole Wheat / Barley Kibbled Maize Feed Oats, Greenfeed White Oaten Chaff

$24.33 $26.95 $26.95 $30.43 $27.73 $26.86 $28.69 $33.90 $29.56 $36.51 $38.25

Weight/Style 20 kg 25 kg 20kg 22.5kg 25 kg 25 kg

Quantity kg 25 25 40 32 polyprop bag

Please check with retailer for current prices

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Price per unit $17.38 / $22.60 $25.21 $27.82 $22.60 $10.43 / $22.60 $15.64 $22.60

125

Price per unit $20.86 $29.55 $18.25 $47.82 $33.90 $37.38

Price per unit $19.12 / $20.86 $24.33 $39.12 $30.42

Prices Exclude GST

Rabbit Feeds PGG Wrightson Ltd: NRM Rabbit Pellets Plus Cyco Barnyard Rabbit Pellets Country Harvest

10 kg / 20kg 10 kg 25 kg

Protein Prices by Type and Region Protein Type North Island ($ per tonne) Meat and Bone $720 to $780 Blood Meal $1,100 to $1,300 Fishmeal $2,650 Skim Milk Blend $1,375 Extra Soya Meal $730 Full Fat Soya n/a Soya Oil (full refined) $1,300 Tallow $985 to $1,100 Lysine (per kg) $4.00 Methionine (per kg) $6.25 Source: Pork Outlook, June 2018.

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$19.12 / $33.03 $13.03 $39.12 South Island ($ per tonne) $720 to $831 $1,300 to $1,350 $2,081 $1,575 $754 n/a $2,460 $985 to $1,054 $2.15 to $2.32 $4.38 to $4.50

Prices Exclude GST

Hay and Straw (For contract hay baling see Section 2.4.1.) Price depends on area, season and quality. Spring/Summer/Autumn 2017/2018 prices were: Area Conventional Canterbury Hay: Meadow Clover Mix $7 Lucerne $9 Straw: Ryegrass (Italian) $5 Barley $5 Baleage: Lucerne Meadow / Clover Cereal Barley Southland Hay: Meadow $7 to $10 Baleage: Hawkes Bay Hay: Meadow $10 to $12 Lucerne $15.00 Straw Pea $8 to $10 Wheat Taranaki Hay: $10 to $12 Silage Waikato Hay:

Haylage: Straw:

Conventional $14.78

Red Clover / Meadow Meadow Meadow Lucerne

Barley Barley Barley 1 Note: 15 small bale equivalents. 3 10 conventional bale equivalents. 5 16 conventional bale equivalents.

Large Round or Square (Medium Square) $65 $90 $50 $40 $90 $70 $70 Round bales $60 to $65 $80 to $100 $70 to $80 $50 to $65 Large round $110 to $1201 Larger bales $901 $1003 Large Round or Square $120.003

$21.30 $13.92 2 4

$120 per round

10 small bale equivalents. 12 conventional bale equivalents.

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$108.004 $120.005

Prices Exclude GST

Grazing Fees Ian Wickham, New Zealand Grazing Co. Ltd: May 2018. The age old problem with â&#x20AC;&#x2DC;grazingâ&#x20AC;&#x2122; 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. 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": Grazing costs for 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 do you get for your investment - our 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 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. Please check with retailer for current prices

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Prices Exclude GST

New Zealand Grazing Co. Ltd. is represented in most dairy areas throughout New Zealand and is able to help people with both weighing and monitoring services and full service heifer growing contracts. A free Tool to convert WEEKLY RATE (time based) or weight gain grazing rates into cents / kg Dry Matter consumed is available on their website www.nzgrazing.co.nz 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. Rates for 2018 were approximately: (i) Calves Calves (weaning to May). Hawkes Bay Grazing is now on weight gain contracts but allow $9 to $10/week Waikato $6.50 to $8.00 / hd / wk, (av $7.00) plus freight Taranaki $6.50 to $8.00 per head / week Canterbury $6.50 - $7.50 / head / week. Southland December to May $7.00 to $7.50 / head / week (ii) Heifers Yearling heifers (May to May). Hawkes Bay Dairy heifers in calf $18 to $20 / head /week Waikato $8.00 to $12 / hd / wk (av $9.50) Taranaki $10.00 to $12.00 / head / week Canterbury $10 - $13.50 / wk flat depending on breed and target weight. In calf heifers wintered from 1 May around $18.50/hd/wk. Southland $9.50 to $11.50 / head / week (iii) 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 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). Southland $28.00 to $33.00 / head / week

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Sheep and Beef (cost / head / week) Sheep

Canterbury

- ewe

- summer - winter - hoggets - winter - early spring - late spring - lambs -autumn/winter Dry Cattle - weaners Apr-Mar - steers May-Oct

$1.00 to $1.30 $2.00 to $2.50 $1.50 to $2.20 $1.65 - $1.85/kg liveweight gain $2.65 - $3.00/kg liveweight gain

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2.3.14 Wool and Shearing Expenses Regional Average Costs forecast for 2017/2018

(per su) $4.00 $4.52 $1.27 $7.00 $5.22 $3.50 $6.80 $1.92 $4.55

North Island Hard Hill Country East Coast North Island Hill Country Taranaki - Manawatu North Island Intensive Finishing Northland, Waikato, BOP South Island High Country South Island Hill Country South Is Canterbury/Marlborough Breeding and Finishing South Island Intensive Finishing South Island Mixed Finishing National Source: MPI. Beef+Lamb NZ Economic Service

Shearing Rates 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 â&#x20AC;&#x201C; 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.

Please check with retailer for current prices

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Prices Exclude GST

Blade Shearing For full wool crossbred or merino, add 63c â&#x20AC;&#x201C; 84c per head to the above rates. Fibre Handling and Classing Charges See Sections 2.10.3 to 2.10.5 Plant PGG Wrightson Ltd: Evo Shearing Plant + wall bracket Nexus Shearing Machine Pro

$1,303.47 $1,729.57

Acto Agriculture: Lister Nexus Pro 3 Speed Shearing Plant with Rigid Downtube $1,766.96 & Sensor Lister Nova 240 volt Dagging Plant with Sensor with 6' Flexible $1,263,22 Downtube & Sensor for portable small-block shearing plus dagging and crutching in races and on trailers. Lister Pro-Grinder c/w aluminium or cast iron discs $1,826.09 Cast Iron Grinder Disc Set for Lister and Supershear Grinder $573.91 Supershear Pro grind Emeries x 10 40grit / 80 grit $90.43 Latex Glue for emeries $7.74 Flat shearing combs sold in minimum packs of 5 $29.56 Supershear cutters sold in minimum packs of 10 $6.52 Electric handpieces $718.00 to $709.57 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

Price / unit $26.95 $39.99 $34.77 $39.99 $8.25 / $6.95 $886.09

Electric Grinders PGG Wrightson Ltd: Acutec c/w Aluminium disc set Heiniger grinder w/o disc

$1,990.43 $1,520.87

Emery Papers PGG Wrightson: Heiniger Emeries fine / coarse Supergrind Emeries fine / coarse

$9.56 / $10.43 $13.03

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Prices Exclude GST

Woolpresses ICS Manufacturing Ltd: ICS (formerly Lyco) Dominator

$18,900.00

PGG Wrightson Ltd: Kiwi Xpress 3hp 1 Phase

$19,886.09

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

$750

Clippers and Shears Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Hand Shears 24 cm to 37 cm $21.69 to $69.52 Shear Sharpener Burgon and Ball $13.00 Foot Rot Shears $15.60 to $27.78 Wahl clipper $260.00 Andis clipper AGC2 Cord pack $433.91 AGR Cordless $738.26 Trade Tested: (NB this is an online store. Always check availability & current pricing) Cordless Sheep Clippers 45W Lithium $303.50 Spare 3000AH Battery for clippers $86.10 Other Woolshed Expenses Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Tally counters hand / electronic $13.00 / $19.96 Acto Agriculture: Shearing Moccasins Fulcrum Post Gauge Wide sweep-wooden handle / Extenda Sweep Woolpack stencil 0-9 / A â&#x20AC;&#x201C; Z Bale clips pack of 500 / applicator Pendulum Ellery / Sunbeam Comb Shaping Stone / Slip Stone, fine

Please check with retailer for current prices

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$44.35 to $44.96 $70.00 $19.13 / $39.04 $45.30 / $82.00 $26.26 / $22.78 $151.48 / $199.13 $57.74 / $28.70

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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 and IWTO 19/28/56 $83.10 Colour Standard Core Test Certificates Merino Yield (incl VM) and Fibre Diameter IWTO 19/12 $85.85 (Laserscan) Greasy Wool Length Tests ATLAS Staple Length & Strength IWTO 30 $70.15 Greasy Length After Carding- GLAC $297.60 IWTO Combined Cert - Manual Base fee (per Combined Cert) $14.40 Additonal part fee (per Certificate) $7.95 Manual data entry -non NZWTA cert (per External Cert) $7.50 IWTO Combined Cert - Electronic Base fee (per Combined Cert) $31.90 Additional part fee (per Certificate) $5.00 Manual data entry -non NZWTA cert (per External Cert) $7.50 Tests in addition to Std Core Test certs Laserscan or OFDA - Fibre Diameter IWTO 12 or 47 $25.95 Medullation IWTO 57 (OFDA) $54.45 Core Bulk NZS 87 16 $33.20 Check Tests per component / test Yield (incl VM) IWTO 19 $38.10 Colour IWTO 56 $33.00 Fibre Diameter (Airflow, Laserscan / OFDA IWTO 28 / 12 / 47 $33.00 Scoured Wool Testing Prices – New Zealand Wool Testing Authority Ltd: Max. 7,000 kg scoured wool per test Comprehensive Scoured Wool Package Test Method Certificate Fee (CSWP) Yield Fibre Diameter, Colour, Residual IWTO 19 / 28 / 33 / 56 / 10 Grease, Conditioned Weight Up to 7,000kg $164.65 Above 7,000kg Add $107.80 per 7,000kg or part Length Tests Length after Carding (per container) NZS 8719 $234.00 Card Waste $46.10 Re-read of carded Sliver (Almeter) $113.70 Mean Fibre Length Report $121.20 Mill Package (Incl Length after carding and card waste, Laserscan, Core Bulk) Up to 7,000kg $367.85 7,001 - 21,000kg Add $87.75 / 7t or part Please check with retailer for current prices 134

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Scoured Wool Testing Prices cont â&#x20AC;&#x201C; New Zealand Wool Testing Authority Ltd: Over 21 tonne POA Check Tests (per component / test) Yield and/or VM: IWTO 19 $38.10 Colour IWTO 56 $33.00 Fibre Diameter (Airflow, Laserscan or IWTO 28/12/47 $33.00 OFDA) Residual Grease IWTO 10 $33.00 Slipe Wool Package Yield (inlc VM), Fibre Diameter (Airflow), IWTO 19 / 28 / 56 / $117.40 Colour and Conditioned weight up to 33 12,000kg Above 12,000kg or part thereof Add $93.45 / pt

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2.3.15 Scales and Platforms Calf Alloy Weigh Crate Sheep Alloy Weigh Crate Alloy weigh platforms. Various dimensions and features

$2,395.00 $2,195.00 $939 - $1,800

PGG Wrightson Ltd: Walk over weighing system excl EID Walk over weighing system incl EID

$7,799.13 $9,268.70

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Hanging scales 10 / 25 / 50 / 100 kg Economy / Quality Each $34.74 / $52.13 Spring balance scales 10 / 25 / 50 kg $8.65 / $12.13 / $15.61 Gallagher: indicative retail pricing only Weigh Scale and Loadbar System Weigh Scale W210 (Entry level)

$1,282.22 $737.81

Te Pari Ltd: Weigh Platform – alloy- value Weigh platform – Integrated loadbars

$800 $2,000

Gallagher: indicative retail pricing only Loadbars 600mm 2 Ton Hand Held EID Tag Reader & Data Collector HR4 / HR5

$1,157.17 $1,370.46/ $2,009.39

Prattley Industries: 2016 prices Sheep weigh crate with 3 way draft Sheep 3 way swing gate auto draft weigh crate

$1,730 $11,689

See also Section 2.21.7. Lambing Equipment AnQuip NZ Ltd: Heat Lamp Unit, no bulb Heat Bulb

5m cord + power saving switch PAR infra-red

PGG Wrightson Ltd: Dr Hayes S/S needles 16gx 3/8” or ½” Stomach Feeder lamb/kid

12 pack

$35.50 $14.50 $6.65 $11.30

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Lamb / kid teats $2.39 - $3.43 Roslam Fawn Reviver (stomach feeder) complete $43.43 Stomach feeder (lamb/kid) $11.26 Lamb / Kid feeder $7.78 Please check with retailer for current prices 136

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Shoof International cont: (Incl delivery NZ. Some exceptions. Can change without notice) Lamb feeder bottle, Non-vac, complete $12.13 Milk Train 4 place $57.35 Lambing rope pair 4mm nylon $13.86 Lambing - twin straps packet of 10 $30.39 Jorvet / Genia Ewe vaginal tape 18m / 4mm x 5m $37.35 / $17.35 Vaginal tape needles Eco 20cm $17.35 Vaginal suture needles 12 pack 13cm $43.43 Sheep restrainer rope and tube $14.74 Shepherds’ crook Kea range $34.74 - $37.35 Ewe bearing retainer pack of 4 $9.52 Macwells fostering oil 40ml $22.57 Tailing and Marking Requisites Electro-tek Engineering Ltd: Ear Markers: All Designs Non Standard add Agemarker 199 Agemarker double Design #90-“S”

Sheep From $190.00 $20.00 - $30.00 $170.00 $190.00 $235.00

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

Cattle From $205.00 $20.00 - $45.00 $185.00 $205.00 $250.00

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

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Ear Markers – range of sizes (for cattle) $26.04 - $160.87 Elastrator rings 100 / 500 / 2000 / 5000 $5.87 / $15.61 / $60.83 / $138.26 Castration Ring Applicator Plastic $17.35 Castration Ring Applicator Economy / Heineger $26.04 / $120.87 Elastrator Ring Dispenser $155.65 Farmhand POL Docking Iron $303.35 LPG adapter POL to QCC $26.04 California Bander $86.92 25 pack bands $60.82 Te Pari Ltd: Docking Cradle / replacement sling / replacement cord

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$500.00 / $48.00/ $10.00

Prices Exclude GST

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)

approx. $0.40 to $4.50 each approx. $3.00 to $6.00 each approx. $1,400.00 to $3,000.00 each From $3.25 to $4.70 ea

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Leg Straps removable Five colours each $5.17 Leg Bands 10 pack $11.26 - $13.00 Quick strap Six colours each $2.57 Leg and tail tape 10m / 25m PE coated cloth $6.04 / $13.87 Raddles and Markers PGG Wrightson Ltd: Raddle Chalk Blue

$2.69

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Cull Cow Paint (425ml) $17.34 Stock Marker Raidex each $3.43 Mating Devices Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Chinball mating harness $173.04 Chinball ink 1L $43.43 PGG Wrightson Ltd: Ram Crayons Mild Blue Tail Paint Blue â&#x20AC;&#x201C; 1 litre / 10 litre Matingmark Ram Harness

$6.51 each $14.77 / $120.87 $36.51

Brands and Tattoos Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Stone digit - baby animal set 0-9 set / A-Z set $286.08 / $607.83 5mm Stone digit - std â&#x20AC;&#x201C; 10mm 0-9 set / A-Z set $56.48 / $152.17 Stone outfit - baby animal 4 / 6 space $346.96 / $364.34 Stone outfit Eco 10mm / Std 10mm or small animal 8mm $173.04 / $181.74 Single Tattoo Digits A-Z $26.04 to $78.22 Single Tattoo Digits 0-9 $17.34 to $60.83 Tattoo Ink 28g to 140g tubes green/black $13.87 to $39.09 Freeze Branding (0 to 9 50 mm/75 mm/100mm $164.38 / $199.13 / digits only set) $251.30 Brandabull Complete set 50mm &75mm / 100mm $416.52 / $478.26 Please check with retailer for current prices

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Hoofcutting Electro-tek Engineering Ltd: Hoofcutter

$189.00

Shoof International Ltd: (Incl delivery NZ. Some exceptions. Can change without notice) Hoof Trimmers: Single Action $103.35 to $173.04 Hoof Knives: Plain Pack - interchangeable blades $52.13 Aesculap $57.35 Genia range - left or right handed, single to double edge $43.43 to $78.22 Hoof Snips: Alloy - plain / serrated blades $30.39 / $32.13 Forged Steel â&#x20AC;&#x201C; plain /serrated blades $34.74 / $37.35 B&B plain /serrated $59.09 / $60.83 Hoof Rasps: Stainless Steel Straight / curved $31.26 / $26.04 Carbon Steel Straight / curved $26.04 / $22.57 Carbon steel heavy Plain or with handle $34.74 / $43.43 33cm S/S $43.43 Hoof Test Plier: De-Horning Electro-tek Engineering Ltd: Yearling dehorners Manual calf dehorner Scully Keystone Dehorner

$355.00 $59.00 $355.00 $385.00

Te Pari Ltd: Te Pari calf dehorner Plastic handle / SS handle Spare LPG dehorner heads small / standard / large

$360.00 / $420.00 $95

Cow Lifters Tokoroa Engineering (2014) Ltd: Cow Lifter *(Field Days Offer)

*$3,250.00

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Daisy-Lifter Medium term support Std / XL $503.34 / $520.87 Hip Clamps Standard / Vink $220.87 / $320.87 Cow Hobble Webbing and rings / Welfare approved $47.78 / $69.53 Cow Cover Thermal Emergency for Jerseys / Friesians $260.00 / $286.09

Please check with retailer for current prices

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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

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Calving chain handles $34.74 Calving ropes 7mm economy, single / double end $9.52 / $14.74 9mm / 12mm soft flat braid dble end $14.74 / $17.35 8mm slimline $17.35 Calving strap heavy duty, 25mm webbing - S/S D-rings $17.35 Calving chains - range $28.65 to $48.65 Calf pullers - range $260.00 to $821.74 Calf puller straps – 75cm long $34.74 Vink Calving Jack $778.82 to $1,126.09 Obstetric lubricant - 1 litre / 5 litre / 20 litre $9.52 / $30.39 / $120.87 Calf sling $43.43 Calf Covers PGG Wrightson Ltd: Calf Cover – canvas lined 2’6” Calf Cover – canvas unlined 2’9”

$60.86 $41.73

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Economy to Quality - small to large range $26.04 to $286.08 Straitline Canvas Ltd: (discounts available for high volume orders) Length wither - tail Animac PE Calf Covers 650 / 800mm Jute Calf Covers strap/buckle 650 / 800mm Jute Yearling Covers strap/buckle 950 / 1,100mm Jute Cow Covers strap/buckle 1,275 - 1,575mm

Price per each $9.80 $29.50 $42.70 $52.40

Bull Rings and Leads / Halters Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Bull rings – s/steel/copper/bronze small, medium, large $14.74 to $34.74 Calf weaner screw clamp $8.65 Bull halter heavy duty $129.57 Cow halters nylon &leather /webbing $43.43 to $146.96 / $31.26 Calf halters – lead / tether nylon $19.09 to $22.56 Leading ropes cotton / vet rope $17.35 / $34.74

Slaughter Device Please check with retailer for current prices 140

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Calf halters – lead / tether Leading ropes

nylon cotton / vet rope

$19.09 to $22.56 $17.35 / $34.74

Slaughter Device Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) check with retailer for current prices 140 Prices Exclude GST CaptivePlease bolt slaughter device $390.43 Prodders Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Hot Shot Range shaft only 34cm to 85 cm $46.04 to $57.35 Farmhand – Rechargeable cplt 59cm to83 cm $146.96 to $152.17 Kawe / Picador / Compact incl battery $155.65 / $103.48 / $54.74 Piglet Management Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Piglet complete tail docker $173.04 Piglet tooth clipper – stainless $17.35 Piglet ear marker $94.78 Pig holder short handle / long handle $52.13 / $43.43 Pig ring applicator $39.95 Pig ring high tensile each / nickel plated 10 pk $15.61 / $17.35 Pregnancy Diagnosis / Backfat / Rib Eye Sonography (See Sections 2.4.9 for charges if a contractor is used) AnQuip NZ Ltd Renco Lean Meter back fat tester Pregnancy Tester ultrasound Pregnancy Tester ultrasound Wifi probe only

$1,500.00 $4,000.00 $2,000.00

Dog Trainers and Equipment Innotek: Containment Systems Boundary Wire 100m / 200m Bark Control Collars Outdoor Ultrasonic Bark Control Device Rechargeable Bark Control Collar Remote Training Aids

from $345 to $395 $70 / $140 from $140 $185 $245 from $275

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Dog chains $9.52 to $15.61 Dog collars $8.65 to $13.00 Dog muzzles $9.13 to $216.52 Dog Tie Out Anchor $11.26 Dog holder MDC $433.92 Dog ute tether – chain /double end / universal $11.26 / $11.26 / $17.35 Dog whistles $1.43 to $15.61 Dog whistle ACME, ultra high pitch / silent $33.00 / $78.22

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Horse Expenses Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Farrier Hammer Driving – Economy 12oz / Nordic 10 oz $34.74 / $73.87 Farrier Hammer - Nordic Rounding 2lb $86.91 Farrier Knife 5 Blade $22.57 Foaling Alarm Magic Breed Complete $1,303.47 Hoof Pick Nickel plated / s/s $5.17 / $6.04 Barrier Boot – Davis – 3 sizes $66.04 Horse Shoof – all sizes $43.43 Saddles and Covers Clarke McKenzie Saddlery Ltd: Stock saddles Farm bridles Horse covers - Summer - Winter Various designs made to order Neck Rug Halters - Webbing (leather also available) 2.3.16 Stock Feeding Systems and Equipment PGG Wrightson Ltd: Dog water bowl - concrete Waterers – nipple - for piglets McInnes Manufacturing Ltd: Milk Bar Lamb – Kid 1/ 3 / 7 / 10 spaces Milk Bar Lamb / Kid 5 teat compartment

From $1,500 From $120.00 From $110.00 From $190.00 (canvas) approx. $150.00 (canvas) From $18.00

$34.77 $8.25 $29.28 /$34.35 / $96.84 /$130.98 $95.26

Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Pigs: Creep Bowl Stainless /Push button cast iron/brass $26.04 / $78.22 Water Nipples Fattener 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 / Ballast $4.30 to $37.35 / $52.13 Poultry Feeder 1.5 to 40 kg $6.91 to $86.91

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Hynds Rural: Precast Concrete Stock Feeding Systems (Freight not included) Product Code Description TF2400AM 2400 long, dry feed trough AgBrand Products: Product C1bolted / C2 pinned W1bolted/W2 pinned C3 bolted / C4 pinned C5 bolted / C6 pinned A5bolted/A6 pinned C5-H bolted / C6-H pinned C7 bolted S1 pinned S2 pinned / S5 bolted A1 bolted / A2 pinned

Description Round Weaner Oval Weaner Round Bull Round Standard Round Straight Sides Round Heavy Medium oval Rectangular Oval Rectangular straight sided Round sheep / cattle Sheep feeder 2.8m lengths 6m lengths

No Feeding positions 12/12 24/24 12/12 15/15 15/15 15/15 16 20 24/26 24/24

Retail $355.03 Price

$750 each $1,195 each $850/ $875 $850/ $875 $950 / $975 $775/ $800 $990 $1,440 $1,500/ $1,600 $1225/$1250

A3 Bolted / A4 pinned 30/15 $750 / $775 SF pinned 21 $595 Feed fence pinned 7 $395 Feed fence pinned incl 15 $775 brace points every 3m Miscellaneous parts Braces / end piece 1.4m For feedlots $130 each/$300 Skids for feeders with mesh base - round/ rectangular POA Sombrero plastic feed bin for inside C5 & C6 feeders $420 Top cover roof for A5 & A6 feeders PVC cover & frame $360 Freight extra. Estimated freight costs Nth Is $100, Sth Is $180 minimum charge. It pays to buy 2 feeders strapped in one bundle.

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2.4

CONTRACTING CHARGES

2.4.1 Hay Making Some examples of contractors' charges are as follows: Taranaki: Mower / conditioner 2.8 m 3.1m Tedding / raking (6m rake) Conventional/ - more than 100 bales Full Contract Baling – includes cut, one turn only, row and bale Waikato: Baling Hawkes Bay: Mowing Raking Baling

Conventional bale Square or round

$1.80 per bale $1.80 per bale equivalent $90 per ha $60 per ha $17.50 per bale $20 per bale

1.2 Baleage 1.5 Hay Bale

Southland Conventional bales (for complete job – carted in etc) Truck Rotary Swather Mower conditioner

$4.50 - $5.00 per bale $150 per hour $180 per hour $170 per hour

2.4.2 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 Full Contract wrapped silage - includes cut, row, bale and wrap - size 10 bale equivalent 1.3m Waikato Baleage Stack tractor - 200hp Loader wagon

Rounds (10+ equiv) Squares (7 equiv)

144

$32.25 per bale $21.00 per hour $34 per bale $32 per bale $150 per hour $260 per hour

30 or more cubic metres

Please check with retailer for current prices

$164 per hour $164 per hour $119 per hour $4.30 per bale $21.00 per hour

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Southland: To make silage Depends on situation and terrain Loader for silage Forage Harvester (if maintaining 4-5ha/hr) Mower conditioner Truck

$400 to $450 per ha $155 per hour $650-$660 per hour $170 per hour $150 per hour

2.4.3 Cultivation / Drilling Canterbury: One Canterbury contractor charges $98 per ha for direct drilling, $85 per ha for cultivation. Another contractor charges $175 per hectare for ploughing and $170 per hectare for a single pass cultivator. Other Contractors in Canterbury: Planting maize per ha Side dressing maize per ha Direct drilling Conventional drilling Fodder Beet Planting Bean Planting

$135.00 per hectare $60.00 per hectare $100 per hectare $90 per hectare $140 to $180 per hectare $170 to $180 per hectare

Hawkes Bay: Discing Powerharrow Powerharrow and sow, one pass Direct drilling on the flat, seed only Direct drilling on the flat, seed and fertiliser Direct drill on hills, seed and fertiliser Conventional drilling

$143 per hectare $175 per hectare $195 per hectare $144 per hectare $147 per hectare $147-$150 per ha, terrain dependent $129 per hectare

Gisborne: Discing Discing and rolling (Cambridge roller) Ploughing Power harrowing / Ripping Planting (maize / sweetcorn / squash at 0.76 metre spacing) Drilling Waikato: Planting (Maize) Side dressing maize

$80 per ha $85 per ha $185 per ha $165 per ha $125 per ha $150 per ha $160.50 per hectare $88.57per hectare

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2.4.4 Heading / Harvesting The following are contract prices for one Canterbury contractor. 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) $720 per hour Peas / costs more if harvested in one direction $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. A second Canterbury contractor. Mower conditioner - 3m / 8m

$414.00 per hour $104.00 per hectare for the 8m $45 per ha $720.00 per hour / $975.00 per hour $225.00 per hour $110.00 per hour per truck

Raking Chopper Grass / Maize Loader Cartage

Another Canterbury contractor charges $300 / ha for clover harvest Another Canterbury contractor charges $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. 2.4.5 Irrigation Earthworks See Section 2.18.15 2.4.6 Aerial Oversowing 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. Please check with retailer for current prices 146

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2.4.7 Dipping Big Dipper Ltd: Prices are per head plus chemical. Ewes are 40c and lambs 36c. Note 40c per km charged for travel. 2.4.8 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 $0.96 per head Drenching, using sheep handler one operator per unit Extra operators would be $36 per hour.

$138 per hour

Another Canterbury contractor Lamb

Tailing â&#x20AC;&#x201C; incl cost of gas, mobile yards

$1.35 per head

Calculated by 8 hours x 5 staff units at $20/hr x 1,000 lambs. 2.4.9 Pregnancy Diagnosis Scan Plus: Sheep - Triplets - Twins - Wet Dry - Lates or earlies Cows Cows Cows Cows â&#x20AC;&#x201C; pre dry off scan

75 cents per ewe 55 cents per ewe 35 cents per ewe 5 cents per ewe $1.90 per head For large herd discounted to $1.70 For small herd $2.30 per head $1.50 per head

Ultra-Scan Pregnancy Testing and Animal Services:2016 prices Cattle: with a minimum charge of $75 $2.00 to $2.95 per head for a full herd Sheep: (minimum of 300) Wet / dry $0.50 per head Twin $0.60 per head Goat $1.90 per head for part herd, $1.30 for full herd Deer $3.00 per head

Please check with retailer for current prices

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2.4.10 Miscellaneous Contracting Arbor-Tek Ltd: Competent Close Worker / Utility Arborist Work within competent worker zone / Arborist Ground Hand Supervisor STMS Level 1 STMS Level 2 Traffic Controller Project Management Arboriculture Consultant Trimlift EWP (15m reach) Trimlift 2 EWP (17.1m reach) Versalift EWP (20.2m reach) 5 Ton Tipper Tandem Trailer Log Splitter Brush Chipper 12” no winch / 14” incl winch Chainsaws, Fuel and Miscellaneous. Tractor with grapple and Flail Mower 4WD Utility Vehicle 5 Ton Tipper Trimlift or Trimlift 2 EWP Versalift EWP

$65.40 per hour $60.35 per hour $55.35 per hour $70.40 per hour $56.35 per hour $59.00 per hour $52.30 per hour

$70.40 per hour $82.50 per hour $85.50 per hour excl. operator $120.00 per hour excl. operator $140.85 per hour excl. operator $18.00 per hour excl. operator $7.05 per hour excl. operator $24.65 per hour excl. operator $65.40 / $95.60 per hour excl. operator $6.00 per hour each excl. operator $120 per hour incl operator $2.35 per km $2.55 per km $3.15 per km $3.20 per km

Hours of work: 0730 to 1600 hrs Mon-Fri (Daylight only) Taranaki: Hedge mulching – barberries and boxthorne

$167 per hour for non-hay clients $162 discounted for hay clients $125 per hour

General tractor work with 12 tonne trailer Note: Fencing Contractor rates see Section 2.19.2 Shearing rates see Section 2.3.14 Fertiliser spreading charges see Section 2.6.4 Spraying costs see Section 2.9.17 Grain Drying see Section 2.11.2

Please check with retailer for current prices

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2.5

ELECTRICITY

2.5.1 Total Farm Electricity Costs Depending on the type of farm size and locality, typical electricity costs (including domestic) forecast for 2017/2018 are as follows: (per su) Sheep and Beef North Island Hard Hill Country East Coast $0.79 North Island Hill Country Taranaki - Manawatu $0.81 North Island Intensive Finishing Northland, Waikato, BOP $1.41 South Island High Country $0.81 South Island Hill Country $0.75 South Is Canterbury/Marlborough Breeding and Finishing $0.90 South Island Intensive Finishing $1.03 South Island Mixed Finishing $1.63 National $0.91 (per cow) (Per kg MS) Dairy 2016/2017 Northland $0.14 Waikato $0.13 Bay of Plenty $0.13 Taranaki $0.12 Lower North Is $0.13 West Coast - Tasman $0.10 Marlborough - Canterbury $0.09 Otago - Southland $0.10 National $44 $0.11 (per ha) Horticulture Hawkes Bay Pipfruit 2015 budget $195 Nelson Pipfruit 2015 budget $300 (per producing ha) Viticulture Marlborough $197 Source: MPI; Beef+Lamb NZ Economic Service; DairyNZ Economic Survey 2016/2017

Please check with retailer for current prices

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Prices Exclude GST

2.5.2 Regional Electricity Charges Meridian Energy – the specialist in supplying electricity to agribusiness customers Meridian provides electricity to many farms throughout New Zealand – from the largest dairy operation to the smallest lifestyle block. As a key user of electricity, you want to be sure you’re getting the best deal possible on your supply which is why we have a dedicated Agribusiness Team, ready to assess and tailor the best possible solutions for the needs of your farm. Our team can  provide you information about regional benchmarks so you can measure how your farm is performing energy-wise against local farms.  help you complete an annual check-up and put you in touch with a range of suppliers who can assist you get more out of your farms electricity. Plus, if you have a large farm, you’ll have access to a dedicated account manager, who will be available to deal with day-to-day account queries and proactively manage your farm electricity bills to ensure you’re getting more for less. Call 0800 496 444 today or visit meridian.co.nz/agri to find out more. Some handy tips to understanding your electricity bill Your bill contains a fair bit of information – we’ve taken some of the key parts and outlined exactly what they mean below. Your electricity bill contains charges from a number of sources. The first charges are industry charges (Network/Lines Company) and they often include:  a fixed charge (cents/day) for connection to the lines company network  a variable charge (cents/unit) for use of the lines company’s network, and/or  depending on the required capacity, a ‘capacity’ charge. The Retailer portion of the account often contains:  a fixed charge covering the use of meters and administration costs  a variable charge (cents/unit) for the energy consumed. Electricity meter types Non-Half Hourly (NHH) meters These meters are most commonly used in woolsheds, houses, garages and cowsheds. This type of metering is the most common and is usually single register. The electricity from this type of metering is shown on your account as one amount, being the total consumption for the billing period. It is also possible to have day and night metering, where the meter has two registers to record electricity consumption. The day period is normally from 7am to 11pm, but this can vary depending on the network company. For example, in the Orion network (Christchurch and surrounding areas) the day period is from 7am to 9pm.

Please check with retailer for current prices

150

Prices Exclude GST

Time of Use (TOU) meters These meters are most commonly used for large irrigation systems and a limited number of very large cowsheds. TOU meters are normally for sites using more than 500kVA or 150 000 kilowatts a year. The use of TOU metering varies throughout New Zealand owing to network regulations. TOU meters record electricity use in half-hour blocks, providing 1,440 readings per month and 17,500 readings annually. A fixed-term price per volume contract is required in this situation. Meridian offers TOU customers a series of pricing products to choose from. These range from 100 percent fixed price to 100 percent spot market exposure options. The extra information available with TOU metering enables the electricity consumer to analyse daily consumption and can be linked to other meters, like flow meters, to compare pump efficiencies. Network/Line companies There are 28 lines companies throughout the country. Network/Lines company charges, requirements and regulations are unique to each company and region. Sometimes specific additional network charges apply to a site with significant capacity (typically over 100kVA). When applicable, Meridian passes on these charges. Electricity pricing Electricity pricing typically consist of two rates 1. Unit rates, which are applied to the energy consumption (per kilowatt hour (kWh)) and typically range from 20 to 30 cents per kWh, and 2. Daily rates, which are applied to the number of days in a billing period (typically ranging from $0.80 to $4 per day). We offer a standard 10 percent prompt payment discount (PPD) when you pay your bills in full by the due date, but an additional discount is available for customers who are members of FarmSource, Farmlands, PGG Wrightsons and Ruralco. Published rates Published rates are the current rates available to all customers who elect not to go on a fixed rate. Seasonal and irrigation pricing We offer seasonal and irrigation pricing in a number of networks. Fixed Energy Plans

Fixed Energy Plans are great for keeping things simple and budgeting. You get price certainty for your electricity usage by securing your rate until the end of your contract. Network, government and regulatory charges like GST and the Electricity Authority levy can change. These plans are usually two years in length. Rates (as at 1 April 2018) The following charges from Meridian are a guide to Meridianâ&#x20AC;&#x2122;s commercial published rates at 1 April 2018. Please note that these rates could change at any time, and there are special offers available. Electricity usage requirements will determine the capacity and charging options most suited to your farm. Call Meridianâ&#x20AC;&#x2122;s Agribusiness Team on 0800 496 444 to discuss options for your region. An Electricity Authority Levy Charge of 0.19 cents per kWh also applies. All rates listed below exclude GST and are before PPD (prompt payment discount).

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151

Prices Exclude GST

The following charges from Meridian are a guide to Meridian’s commercial published rates at 1 April 2018. Please note that these rates could change at any time, and there are special offers available. Electricity usage requirements will determine the capacity and charging options most suited to your farm. Call Meridian’s Agribusiness Team on 0800 496 444 to discuss options for your region. An Electricity Authority Levy Charge of 0.19 cents per kWh also applies. All rates listed below exclude GST and are before PPD (prompt payment discount). Northland (Northpower network standard commercial) Please check with retailer for current prices Tariff Meridian Network Charge (excl Charge (excl GST) GST) Daily 79.17 111.11 Anytime 13.93 12.56 Controlled 22 13.81 8.22 DayNight Day 14.80 8.67 DayNight Night 10.42 4.00

Total Electricity Charge (excl GST) 190.28 26.49 22.03 23.46 14.42

Waikato (WEL network) Tariff Meridian Charge (excl GST) Daily 114.13 Anytime 12.49 Controlled 11.89 DayNight Day 13.69 DayNight Night 10.69 Night 10.32

Total Electricity Charge (excl GST) 247.46 22.92 14.54 24.12 21.12 12.98

Network Charge (excl GST) 133.33 10.43 2.66 10.43 10.43 2.66

151

Prices Exclude GST

Unit of Measure

cents per day cents per kWh cents per kWh cents per kWh cents per kWh Unit of Measure cents per day cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh

Taranaki (Powerco (Taranaki) network, Zone A - New Plymouth / Stratford / Wanganui) Tariff Meridian Network Total Electricity Unit of Measure Charge (excl Charge (excl Charge (excl GST) GST) GST) Daily 82.24 0.00 82.24 cents per day Anytime 14.11 11.23 25.34 cents per kWh Controlled 14.11 11.23 25.34 cents per kWh DayNight Day 15.09 13.14 28.23 cents per kWh DayNight Night 10.83 1.51 12.34 cents per kWh Night 10.83 1.51 12.34 cents per kWh Hawke’s Bay (Unison Hawkes Bay based on a 15–69kVA connection) Tariff Meridian Network Total Electricity Charge (excl Charge (excl Charge (excl GST) GST) GST) Daily 109.91 388.89 498.79 Anytime 13.34 8.22 21.56 Controlled 12.82 4.11 16.93 DayNight Day 14.76 10.78 25.54 DayNight Night 11.12 3.00 14.12 Economy 24 13.34 8.22 21.56 Night 11.12 3.00 14.12

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152

Unit of Measure cents per day cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh

Prices Exclude GST

North Canterbury (Mainpower (Rangiora) network standard commercial) Tariff Meridian Network Total Electricity Charge (excl Charge (excl Charge (excl GST) GST) GST) Daily 88.96 55.56 144.51 Anytime 13.05 11.45 24.50 Controlled 12.73 11.45 24.18 DayNight Day 13.78 11.45 25.23 DayNight Night 11.16 11.45 22.61 Night 11.16 11.45 22.61 Central Canterbury (Orion Network) Tariff Meridian Charge (excl GST) Daily 79.21 Anytime 13.37 Controlled 13.30 Controlled Night 11.36 DayNight Day 14.30 Economy 24 13.37 Night 11.36 NightBoost 12.04 Night & weekend 11.48 Weekday Day 14.60 Weekday Night 11.48 Weekend Day 11.48 Weekend Night 11.48

Network Charge (excl GST) 0.00 11.93 7.48 1.40 16.24 11.15 1.40 3.71 1.40 21.09 1.40 1.40 1.40

Total Electricity Charge (excl GST) 79.21 25.30 20.78 12.76 30.54 24.52 12.76 15.75 12.88 35.69 12.88 12.88 12.88

Unit of Measure cents per day cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh

Unit of Measure cents per day cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh

Mid-Canterbury (Electricity Ashburton network based on a 50kVA connection) Tariff Meridian Network Total Electricity Unit of Charge Charge Charge Measure (excl GST) (excl GST) (excl GST) Daily 99.89 33.33 133.22 cents per day Anytime 10.62 10.13 20.76 cents per kWh Anytime 13.47 10.13 23.60 cents per kWh Controlled 10.62 1.93 12.56 cents per kWh Controlled 13.47 1.93 15.40 cents per kWh DayNight Day 11.15 10.13 21.29 cents per kWh DayNight Day 14.14 10.13 24.28 cents per kWh DayNight Night 9.50 10.13 19.63 cents per kWh DayNight Night 12.05 10.13 22.18 cents per kWh Night 9.50 0.00 9.50 cents per kWh Night 12.05 0.00 12.05 cents per kWh

Please check with retailer for current prices

153

Prices Exclude GST

Season

Summer Winter Summer Winter Summer Winter Summer Winter Summer Winter

South Canterbury (Alpine Energy network based on a 3-phase 60-amp connection) Tariff Meridian Network Total Electricity Unit of Charge Charge Charge Measure (excl GST) (excl GST) (excl GST) Daily 122.71 583.71 706.42 cents per day Anytime 10.94 8.02 18.96 cents per kWh Anytime 14.44 8.02 22.46 cents per kWh Controlled 10.73 8.02 18.75 cents per kWh Controlled 14.16 8.02 22.18 cents per kWh DayNight Day 12.06 9.29 21.35 cents per kWh DayNight Day 15.91 9.29 25.20 cents per kWh DayNight Night 9.22 3.98 13.20 cents per kWh DayNight Night 12.19 3.98 16.18 cents per kWh Night 9.22 3.98 13.20 cents per kWh Night 12.19 3.98 16.18 cents per kWh Waitaki (Network Waitaki network based on a 31â&#x20AC;&#x201C;50kVA connection) Tariff Meridian Network Total Electricity Charge Charge Charge (excl GST) (excl GST) (excl GST) Daily 112.30 143.73 256.03 Anytime 12.12 8.04 20.15 Controlled 11.88 8.04 19.92 DayNight Day 13.38 10.22 23.61 DayNight Night 10.02 1.13 11.15 Night 10.02 1.13 11.15 NightBoost 11.11 3.61 14.72

Season

Summer Winter Summer Winter Summer Winter Summer Winter Summer Winter

Unit of Measure cents per day cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh

Southland (The Power Company network based on a 3-phase 50kVA off peak connection) Tariff Meridian Network Total Electricity Unit of Season Charge Charge Charge Measure (excl GST) (excl GST) (excl GST) Daily 138.67 418.54 557.21 cents per day Anytime 11.45 8.22 19.67 cents per kWh Summer Anytime 16.20 8.25 24.46 cents per kWh Winter Controlled 11.23 8.22 19.45 cents per kWh Summer Controlled 15.88 8.25 24.13 cents per kWh Winter DayNight Day 12.64 10.84 23.48 cents per kWh Summer DayNight Day 17.86 10.93 28.79 cents per kWh Winter DayNight Night 9.60 0.00 9.60 cents per kWh Summer DayNight Night 13.64 0.00 13.64 cents per kWh Winter Night 9.60 0.00 9.60 cents per kWh Summer Night 13.64 0.00 13.64 cents per kWh Winter NightBoost 10.58 3.77 14.34 cents per kWh Summer NightBoost 15.00 3.78 18.78 cents per kWh Winter

Please check with retailer for current prices

154

Prices Exclude GST

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. Central Canterbury irrigators (in the Orion network). The summer rates apply from 01 October to 30 April. Tariff Meridian Network Total Charge Charge Electricity (excl GST) (excl GST) Charge (excl GST) Daily 248.88 0.00 248.88 Power Factor 0.00 -19.92 -19.92 Correction Power Factor 0.00 0.00 0.00 Correction Capacity 0.00 48.33 48.33

Unit of Measure

Season

Capacity

0.00

Interruptibility Rebate Interruptibility Rebate Anytime Anytime Controlled Night Controlled Night DayNight Day DayNight Day Economy 24 Economy 24 Night Night NightBoost NightBoost

0.00

-4.98

0.00

9.38 12.11 8.31

6.10 6.10 1.40

15.49 18.21 9.71

cents per day cents per kVAr per day cents per kVAr per day cents per kW per day cents per kW per day cents per kW per day cents per kW per day cents per kWh cents per kWh cents per kWh

10.72

1.40

12.12

cents per kWh

Winter

9.97 12.87 9.38 12.11 8.03 10.37 8.54 11.02

8.40 8.40 6.10 6.10 1.40 1.40 3.68 3.68

18.37 21.27 15.49 18.21 9.43 11.77 12.22 14.70

cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh cents per kWh

Summer Winter Summer Winter Summer Winter Summer Winter

Please check with retailer for current prices

155

Summer Winter Summer Winter Summer Winter Summer Winter Summer

Prices Exclude GST

The following applies to Mid-Canterbury (Electricity Ashburton network based on a non CT Metered connection). The summer rates apply from 01 September to 30 April. Tariff Meridian Network Total Unit of Season Charge Charge Electricity Measure (excl GST) (excl GST) Charge (excl GST) Daily 156.03 0.00 156.03 cents per day Capacity 0.00 38.92 38.92 cents per kW/day Anytime 10.05 0.00 10.05 cents per kWh Summer Anytime 12.87 0.00 12.87 cents per kWh Winter DayNight Day 10.83 0.00 10.83 cents per kWh Summer DayNight Day 13.87 0.00 13.87 cents per kWh Winter DayNight Night 8.34 0.00 8.34 cents per kWh Summer DayNight Night 10.68 0.00 10.68 cents per kWh Winter If you’re not already a Meridian customer, talk to our team of agribusiness specialists for a free, no-obligation price comparison. We’ll show you an apples-for-apples comparison of what your bills would be if you were a Meridian customer. It’s as easy as calling 0800 496 444.

*all rates provided are correct as at 1 April 2018 and may be subject to change. For up to date pricing, we recommend talking directly with our Agribusiness Specialist on 0800 496 444. 2.5.3 Cost of Power Installation The average network company installation charge for 1 kilometre of power line in rural areas is $47,960 to $59,360 + GST (for 11,000 volt overhead lines). Price varies depending on the distance to be installed i.e. the shorter the distance the more it costs per metre, up to 350 metres, and then prices start to level out. If a transformer is required then allow for $8,000 to $11,000 + GST/per site.

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Prices Exclude GST

2.6

FERTILISER AND LIME

2.6.1 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 per tonne bulk ex works; (store charges may apply) Awarua (South Is), Whangarei and Mt Maunganui (North Is.) * South Island only ** North Island only N P K S Mg Ca $ per tonne Superten - 9.0 0 10.5 - 22.0 Superten $304.00 - 8.1 5.0 9.5 - 19.8 Superten 5K $341.00 - 7.7 7.5 8.9 - 18.7 Superten 7K $355.00 - 7.2 10.0 8.4 - 17.6 Superten 10K $368.00 - 6.3 15.0 7.4 - 15.4 Superten 15K $398.00 - 4.5 25.0 5.3 - 11.0 Superten 25K $454.00 Pasturezeal G2 Blends cannot be mixed with Nrich urea or SustaiN N P K S Mg Ca 9.5 5.9 5.0 6.9 1.6 15.1 Pasturezeal G2 5K $385.00** 7.6 5.5 10.0 6.4 1.2 13.8 Pasturezeal G2 10K $405.00** 7.6 4.6 15.0 5.3 1.2 11.6 Pasturezeal G2 15K $433.00** 5.7 7.7 - 9.0 0.9 19.2 Pasturezeal G2 9S $337.00** 9.5 6.1 - 15.1 1.6 15.6 Pasturezeal G2 15S $378.00** 12.1 6.2 - 7.2 2.0 15.9 Pasturezeal G2 Impact $366.00** 7.6 7.3 - 8.5 1.2 18.2 PasturezealG2Equaliser $345.00** 9.1 6.9 - 8.1 1.5 17.4 Pasturezeal G2 Boost $352.00** 6.6 6.2 7.0 7.2 1.1 15.6 PasturezealG2Balancer $384.00** 7.6 5.2 7.5 13.5 1.2 13.3 Pasturezeal G2 High S $413.00** 11.4 2.8 20.0 3.2 1.9 7.5 PasturezealG2Hay&Silage $478.00** Pasturemag with (SustaiN) N P K S Mg Ca 6.9 5.8 - 7.1 4.3 14.0 Pasturemag $352.00 6.2 5.2 5.0 6.4 3.8 12.6 Pasturemag 5K $380.00 5.9 4.9 7.5 6.1 3.6 11.9 Pasturemag 7K $393.00 5.5 4.6 10.0 5.7 3.4 11.2 Pasturemag 10K $405.00 4.8 4.1 15.0 5.0 3.0 9.8 Pasturemag 15K $430.00 11.5 5.1 - 6.3 3.8 12.4 Pasturemag 12N $380.00 6.2 5.2 - 15.4 3.8 12.6 Pasturemag 16S $382.00 6.0 5.1 6.0 10.9 2.7 12.6 Pasturemag peat/pumice $402.00** 9.2 2.3 20 3.4 2 6.6 Pasturemag Hay&Silage $486.00* N-rich 46.0 N-rich urea $520.00 19.5 22.0 N-rich SOA $450.00 Please check with retailer for current prices

157

Prices Exclude GST

Ballance Agri-Nutrients Ltd cont: Cropzeal N P K S Mg Ca 13.2 15 12.5 0.8 - 4.4 Cropzeal 15P 14.8 8.4 10.0 9.2 - Cropzeal 16N 18.6 10.5 - 11.5 - Cropzeal 20N 16.5 19.5 1 - Cropzeal Boron Boost Sulphur Fertilisers N P K S Mg Ca - 8.6 - 14.8 - 21.0 Sulphurgain 15S - 8.0 - 20.0 - 19.8 Sulphurgain 20S - 7.0 - 29.5 - 17.5 Sulphurgain 30S - 90.0 - Sulphurgain Pure - 6.8 7.5 17.0 - 16.8 15% Potash sulphur super - 6.4 10.0 16.0 - 15.8 20% Potash sulphur super - 5.6 15.0 14.0 - 13.8 30% Potash sulphur super - 4.0 25.0 10.0 - 9.9 50% Potash sulphur super Phosphate Fertilisers N P K S Mg Ca 19.0 - 14.0 Triple Superphosphate 4.4 - 5.1 0.1 30.9 Ballance Dicalcic Pastoral 13.1 - 1.3 - 35.0 High P RPR Potash Fertilisers 50.0 Muriate of Potash 41.0 17 Sulphate of Potash DAP Fertilisers 17.6 20.0 - 1.0 - DAP 10.6 14.8 - 12.4 - 7.0 DAP sulphur super 8.5 11.8 10.0 9.9 - 5.6 20% Potash DAP sulphur super Magnesium Fertilisers N P K S Mg Ca 6.8 - 8.4 5.0 16.5 Serpentine super 6.1 5.0 7.6 4.5 14.9 Serpentine super 5K 5.8 7.5 7.1 4.3 14.0 Serpentine super 7K 5.4 10.0 6.7 4.0 13.2 Serpentine super 10K 4.8 15.0 5.9 3.5 11.6 Serpentine super 15K 3.4 25.0 4.2 2.5 8.3 Serpentine super 25K 6.9 - 19.0 2.5 17.0 Serpentine Gold - 11.0 24.0 Dolomite

$ per tonne $740.00 $621.00 $623.00 $799.00 $323.00 $339.00 $361.00 $605.00 $382.00 $395.00 $422.00 $473.00 $620.00 $236.50** $345.00 $588.00 $1,010.00 $780.00 $634.00 $632.00 $296.00 $334.00 $349.00 $362.00 $392.00 $450.00 $340.00* $290.00

Hatuma Dicalcic Phosphate Ltd: Phosphate: ex Parkside N P K S 0 4.3 0 5.5 Dicalcic Phosphate Ca 28% 0 3.3 0 8 No 8s 80% Dicalcic Phosphate Ca 29% 0 2.5 0 6 No 9s 60% Dicalcic Phosphate Ca 31% Please check with retailer for current prices 158

158

Prices Exclude GST

per tonne $235.75 $218.32 $173.49

Hatuma Dicalcic Phosphate Ltd:cont N P K S 0 1.7 0 2.2 No 14 40% Dicalcic Phosphate Ca 32% 0 1.6 0 4 No 14s 40% Dicalcic P Ca 32% Potash: 0 3.7 7.5 4.7 15% Potassic Dicalcic Phosphate 0 2.2 12.5 2.9 Dairy/Hay Blend Ca 18% + 1.7% mag./8% salt Beef/Dairy and Sheep: 0 2.6 0 3.3 No 4 10% Salt, Ca 24% + 3.3% magnesium Lucerne: 0 2 12.5 4 DP Lucerne, Ca 16% +1.7% magnesium /2%borate

per tonne $118.50 $128.66 $298.06 $377.95 $300.25 $428.48

Egmont Commercial Ltd: Fertiliser Sulphate Iron 25 kg Controlled release fertilisers: N P K 14 3.5 12.5 Plantacote - plus trace elements 8 month release 25kg 24 2.2 8 PlantoDur - plus trace elements 1-2 years 10kg Livestock Supplies (N.Z.) Ltd: Fertilisers: Fertiliser (/kg) Calcium nitrate Diammonium phosphate Gypsum Melspray 16.14.13 and trace elements Melspray 20.9.17.3 and trace elements Muriate potash Sulphate potash soluble / granular Sulphate of Ammonia (Tek) Sulphur 90 Prills Superphosphate Urea Trace Elements (/kg) Boron 48 Ulexite boron 12% B Cobalt Sulphate Copper Chelate Copper Sulphate Fine / Granular EMag Fertiliser Flours of Lime Iron Mono / Sulphate Livestock Supplies 1-year Selenium Chip - ORGANIC Magnesium Chloride Flake/Natural Magnesium Sulphate Manganese Sulphate, fert grade Please check with retailer for current prices 159

159

$25.50 $159.00 $75.00

Price $1.50 $1.80 $0.60 $4.20 $4.00 $0.65 $1.90 / $1.10 $0.80 ($1.90) $0.59 $0.47 $1.00 $1.45 $1.45 $40.00 $18.90 $5.20 $0.70 $0.25 $2.05 / $1.20 $4.68/ $5.70 $0.43 $0.50 $1.85 Prices Exclude GST

Livestock Supplies (N.Z.) Ltd cont: Potassium Iodate Selcote Ultra Selenium Sodium Molybdate Sodium Sulphate Ultra Selenium and 210g / 350g cobalt Zinc Chelate Powder Zinc Hepto/Mono Granular

$0.90 $5.90 $30.00 $1.50 $18.70 per ha $23.00 $2.50

Ravensdown Ltd: Prices are direct debit prices, ex port store â&#x20AC;&#x201C; Nelson, Hornby, Seadown or Ravensbourne. N P K S Mg Ca $ / tonne (bulk) Pastoral Fertilisers 0.0 9.0 0.0 11.0 0.0 20.0 Superphosphate $304.00 17.6 20.0 0.0 1.0 0.0 0.0 Cropmaster DAP $750.00 46.0 0.0 0.0 0.0 0.0 0.0 Urea $485.00 0.0 20.5 0.0 1.0 0.0 16.0 Triple Super $689.00 0.0 6.7 0.0 8.6 5.5 15.0 Serpentine Super / Drilling Super $292.00 0.0 13.0 0.0 0.0 0.0 30.0 Reactive Phosphate Rock NI $320.00 0.0 13.0 0.0 0.0 0.0 30.0 Reactive Phosphate Rock SI $360.00 10.6 14.8 0.0 12.6 0.0 6.4 DAP 13 S $615.60 0.0 10.0 0.0 15.0 0.0 23.0 RPR 15S (NI only) $347.40 Sulphur Fortified Fertilisers 0.0 8.6 0.0 14.8 0.0 19.2 Sulphur Super 15 $322.01 0.0 8.0 0.0 20.6 0.0 18.0 Sulphur Super 20 $339.40 0.0 7.0 0.0 30.1 0.0 16.0 Sulphur Super 30 $362.00 0.0 0.0 0.0 90.0 0.0 0.0 Sulphur 90 $595.00 Superphosphate and Trace Elements 0.0 9.0 0.0 11.0 0.0 20.0 Molybdenum Super (500g) $322.32 0.0 9.0 0.0 11.0 0.0 20.0 Cobalt Super 1kg -CO2SO4 =21% Co $347.88 0.0 8.8 0.0 11.0 0.0 20.0 Copper Super 25kg $449.18 0.0 9.0 0.0 11.0 0.0 20.0 Selenium Super (2kg) $332.60 0.0 5.5 14.7 13.2 0.0 12.4 Lucerne Mix + TE $449.66 0.0 7.0 0.0 30.1 0.0 16.0 Moly Sulphur Super 30 (300g) $375.53 0.0 7.0 0.0 30.1 0.0 16.0 Moly Sulphur Super 30 (500g) $380.29 Potassium Fertilisers 0.0 8.1 5.0 9.9 0.0 18.0 10% Potash Super $338.51 0.0 7.7 7.5 9.4 0.0 17.0 15% Potash Super $352.55 0.0 7.2 10.0 8.8 0.0 16.0 20% Potash Super $366.61 0.0 6.3 15.0 7.7 0.0 14.0 30% Potash Super $394.70 0.0 5.4 20.0 6.6 0.0 12.0 40% Potash Super $422.80 0.0 4.5 25.0 5.5 0.0 10.0 50% Potash Super $450.90 0.0 6.8 7.5 17.5 0.0 15.3 15% Potash Sulphur Super $377.21 0.0 6.4 10.0 16.4 0.0 14.4 20% Potash Sulphur Super $389.80 0.0 5.6 15.0 14.4 0.0 12.6 30% Potash Sulphur Super $415.00 0.0 0.0 42.0 18.0 0.0 0.0 Sulphate of Potash sol (bagged) $1,055.00 Please check with retailer for current prices 160

160

Prices Exclude GST

Ravensdown Ltd cont: 0.0 0.0 41.5 18.0 0.0 0.0 Sulphate of Potash granular $1,014.00 0.0 0.0 50.0 0.0 0.0 0.0 Potassium Chloride $585.00 Other General Fertilisers N P K S Mg Ca $ / tonne (bulk) 4.0 6.5 4.0 12.5 0.0 14.4 Dairy Pasture Boost 4 $361.88 4.0 6.1 6.0 12.1 0.0 13.6 Dairy Pasture Boost 6 $373.12 4.0 5.4 10.0 11.2 0.0 12.0 Dairy Pasture Boost 10 $395.61 4.0 5.0 12.0 10.8 0.0 11.2 Dairy Pasture Boost 12 $406.84 5.5 5.5 6.0 13.0 0.0 12.1 Ravensdown Pasture 6 $383.71 Cropmaster DAP based 10.6 12.0 20.0 0.6 0.0 0.0 Cropmaster 11 $690.41 12.3 14.0 15.0 0.7 0.0 0.0 Cropmaster 13 $706.90 14.8 10.0 10.0 7.4 0.0 0.0 Cropmaster 15 $633.10 15.4 7.0 22.5 0.4 0.0 0.0 Cropmaster 16, High K Bulk $629.15 18.8 10.0 0.0 12.0 0.0 0.0 Cropmaster 20 $605.90 14.1 16.0 10.0 0.8 0.0 0.0 Cropmaster Brassica Mix $723.40 13.6 15.4 9.5 0.8 0.0 0.0 Cropmaster Brassica + Boron $751.17 Nitrogen Fertilisers 46 0.0 0.0 0.0 0.0 0.0 Urea $485.00 45.9 0.0 0.0 0.0 0.0 0.0 N-Protect $535.00 20.0 0.0 0.0 23.0 0.0 0.0 Ammonium Sulphate granular $449.00 6.0 6.3 0.0 14.6 0.0 14.0 Nitrogen Super $353.90 27.0 0.0 0.0 0.0 0.0 8.0 Calcium Ammonium Nitrate (CAN) $585.00 30.4 0.0 0.0 13.8 0.0 0.0 Ammo 31 $469.81 35.6 0.0 0.0 9.2 0.0 0.0 Ammo 36 $477.01 6.6 6.4 6.5 7.8 0.8 14.2 Flexi-N Komplete $375.90 46.0 0.0 0.0 0.0 0.0 0.0 Low Biuret Urea (bagged) $1,249.00 Ammophos MAP based 10.0 22.0 0.0 1.0 0.0 0.0 Ammo-Phos MAP $805.00 7.0 15.4 15.0 0.7 0.0 0.0 Ammo-Phos/Hycrop 7-15-15 $745.40 8.5 18.7 7.5 0.9 0.0 0.0 Ammo-Phos/Hycrop 9-19-7 $778.41 Nitrophoska and Compound Fertilisers 12.0 5.2 14.1 8.0 1.2 3.8 Nitrophoska Extra $948.00 15.0 2.2 16.6 8.0 1.2 1.5 Nitrophoska Perfect $949.00 10.5 4.6 12.3 9.0 2.6 3.3 Nitrophoska Extra +Boron +Mg $920.78 9.2 4.0 10.8 10.8 4.4 2.9 Nitrophoska Extra + Kieserite $850.90 9.6 4.2 13.7 9.9 2.7 3.0 Avocado Regular Mix + TE $1,009.27* 12.2 4.4 11.9 9.7 1.4 3.2 Avocado Young Mix + TE $995.90* 10.0 4.3 14.1 9.5 2.3 3.2 Olive Tree Mix $1,005.76* * bagged price

Please check with retailer for current prices 161

161

Prices Exclude GST

Ravensdown Ltd cont: Horticultural Fertilisers: (bulk) N P K S Mg Ca 0.0 0.0 0.0 20.0 15.0 0.0 Esta Kieserite (Granular) 13.5 3.0 5.6 7.1 4.5 3.4 Citrus 14-3-5 18.9 2.0 0.0 4.1 3.0 7.2 Citrus 19-2-0 10.5 0.0 0.0 0.0 9.4 0.0 Magnesium Nitrate *bagged Ravensdown Ltd: Fine Particle Products â&#x20AC;&#x201C; check Ts and Cs that apply to fine grind product Fine Grind Lime (Te Pahu) Magnesium Oxide Fine Prices are subject to change. Check latest pricing or order online www.ravensdown.co.nz

$ / tonne $498.00 $733.12 $665.37* $717.00*

$ / tonne $121.16 $668.75

Nitrosol Ltd: Liquid Fertilisers â&#x20AC;&#x201C; Nitrosol Liquid Suspension Biological Fertiliser. N P K S Name Quantity Price 8 3 6 2 Nitrosol Original for horticulture 20 litre $198.00 8 3 6 2 Nitrosol Original for horticulture 100 litre $690.00 8 3 6 2 Nitrosol Original for horticulture 200 litre $1,058.00 8 3 6 2 Nitrosol Original for horticulture 1000 litre $5,060.00 8 3 6 2 Nitrosol Oceanic for pasture 20 litre $206.00 8 3 6 2 Nitrosol Oceanic for pasture 100 litre $699.00 8 3 6 2 Nitrosol Oceanic for pasture 200 litre $1,081.00 8 3 6 2 Nitrosol Oceanic for pasture 1,000 litre $5,175.00 4 .4 .9 .9 Nitrosol Organic (Bio-Gro cert) 200 litre $1,093.00 4 .4 .9 .9 Nitrosol Organic (Bio-Gro cert) 100 litre $715.00 3 3 6 2 Nitrosol Organic (Bio-Gro cert) 1,000 litre $5,233.00 13 0 4 Nitrosol Peptone Amino 10 kg carton $340.00 (100% soluble, (Bio-Gro cert) 21 .6 .8 1 Nitrosol N-Boost liquid nitrogen 100 litre $475.00 21 .6 .8 1 Nitrosol N-Boost liquid nitrogen 200 litre $715.00 21 .6 .8 1 Nitrosol N-Boost liquid nitrogen 1000 litre $2,995.00 4 Nitrosol MagSulphate 200 litre $340.00 4 Nitrosol MagSulphate 1,000 litre $1,870.00 1.5 1 13 Nitrosol Seaweed Flakes 2 kg foilpack $58.00 (100% soluble; Bio-Gro cert) 1.5 1 13 Nitrosol Seaweed Flakes 20kg carton $579.00 (100% soluble; Bio-Gro cert) Nitrosol Micro-Lime (15 micron) 25kg bag $22.00 98% pure calcium. Mix with water for foliar application. (Bio-Gro cert) Nitrosol Micro-Lime (15 micron) 1,000kg $700.00 98% pure calcium. Mix with water for foliar application. (Bio-Gro cert) Please check with retailer for current prices

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NB: All prices are plus freight at cost. Chengeta Crop Care Ltd: Pastoral and Arable: Fertilisers, Trace Element Concentrates and Soil Conditioners N P K Ca Mg S Type 20 litre 200 litre 1,000 litre 11 6 7 Reaction Classic $150.91 $864.55 $3,777.42 7 11 6 Reaction Premium $175.97 $1,123.46 $5,478.84 6 5 13 Reaction Hiyield $157.95 $937.02 $4,049.99 11 9 Reaction Nitrophos $152.51 $1,001.59 $4,395.72 Reaction Super 19 Sulphur $129.13 $615.45 $2,527.16 40 Reaction Nutri N 40 $146.33 $651.17 $2,068.80 Reaction Rapid N 32 Plus $142.22 $750.20 $3,413.61 32 Reaction High N 32 $48.00 $442.88 $1,910.40 32 Reaction Safe N $683.70 $3,203.50 32 Reaction High K $200.21 $1,014.70 32 Reaction Seaweed N $124.80 $609.60 $3,000.32 32 Reaction Gibb N $139.20 $624.00 $3,000.13 32 Reaction Fertigate N $134.40 $614.40 $3,000.40 Concentrates and Chelates N P K Ca Mg S Type 1 litre 5 litre 20 litre 7 Nutri-B $63.50 $209.59 Nutri-Co $83.47 $205.02 Nutri-Cop $70.09 $92.03 Nutri-Iodine $94.07 $243.56 Nutri-Fe $97.20 $231.07 Nutri- Mang $86.71 $266.76 11 Molyphos $128.51 $318.00 Nutri-Sel $61.19 $63.81 $203.38 Nutri-Zinc $85.97 $343.97 Liquid Fertilisers N P K Ca Mg S Type 20 litre 200 litre 1,000 litre 3 Terraboost $161.37 $917.33 $4,166.66 12 0.3 2 0.1 0 Super Seaweed $170.83 $1,160.18 $5,698.22 14 19 24 Qualigrass $158.38 $957.68 $2,449.73 Tracepacks B Cu Zn Mn Fe Mo I Se Co 1 litre 4 Boron Tracepack $50.88 4 Copper Tracepack $52.44 2 Iodine Tracepack $58.38 Magnesium Tracepack $61.08 2 Manganese Tracepack $52.18 2 Molybdenum Tracepack $60.74 4 Zinc Tracepack $52.82 2 Cobalt Tracepack $56.26 Please check with retailer for current prices 163

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Selenium Tracepack

Chengeta Crop Care Ltd: cont Other N P K Ca Mg S B Mn 20 litre 7 4 10 GREENBOR 25kg 7 4 10 GREENBOR 1,000kg 26 K Humate $193.90 Omnigibb 1kg 16 6 12 Nutriblue $132.34 10 Boro Solv $70.56 6 Mang Solv $232.06 Nutriphos 400 Bell-Booth Ltd: Liquid fertilisers and pasture trace elements Supacrop Soluble Foliar Fertiliser: Pack size N-telligent 4 Maize (27-7-10) 20 kg N-telligent 4 Brassica (9-20-10) 20 kg N-telligent 4 Brassica (6-6-30) 20 kg Supacrop foliar sprays for pasture and crops: N-Telligent 4 Brassica Liquid 20 / 200 / 1,000 l Bell-Booth Ltd: Bio-stimulants for pasture Product Pack size Maxicrop Triple 5 l / 20 l 200 l / 1,000 l N-telligent 200 l N-Telligent OM Soil Conditioner 20 l / 200 l Slow Release Fertilisers Landscape and Grower Supplies Ltd: Silvamix Forte Tabs 10kg Everris Osmocote 25kg 3-4 / 5-6 / 8-9mth Chengeta Crop Care: Drill – Place – Plug nutrients Tablets StemCap KF – 2 100 per bag / 400 per pack StemCap PC – 1 100 / 400 / 800 per pack StemCap PN – 2 100 / 400 per pack StemCap PGN – 2 100 / 400 per pack StemShot AV – 1 1,000L / 20L Plastic StemPlugs 1,000 / 100 per pack

Please check with retailer for current prices 164

$58.41

200 litre

1,000 litre $43.00 $1,650.00 $1,365.47 $6,239.70 $698.80 $3,000.41 $1,158.00 $5,790.00 $6,250.00 Retail price $175.00 $258.00 $214.00

$157 / $1,310 / $5,535 Retail Price $65.00 / $218.00 $1,727.00 / $8,100.00 $1,510.00 $130.00 / $880.00

$109.43 $232.33

$ per pack $97.14 / $300.72 $34.58 / $108.45 / $214.11 $56.55 / $168.18 $56.22 / $255.91 $6,756 / $158.06 $62.50 / $9.25

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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: Superphosphate 0-9-0 15% Potash Super 0-8-8 Cropmaster DAP 18-20-0 Longlife Super 0-10-0 North Carolina RPR 0-13-0

Total P 9 8 20 10 13

Cit.sol.P 8.5 7.2 20 6.8 4

PAP 8.8 7.6 20 10 13

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, longlife 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.

Please check with retailer for current prices

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Prices Exclude GST

2.6.2 Lime Hatuma Dicalcic Phosphate Ltd:ex Parkside

$ / tonne $26.00

Agricultural Lime Graymont (NZ) Ltd: (Otorohanga) AgLime (Agricultural Lime) bulk 1 tonne sack Calcimate 25 kg bags Hydrated Lime 20 kg bags

RRP $ / tonne $31.05 $208.25 $248.75 $550.00

Parkside Quarries Ltd: (Oamaru Stone) Undried Lime ex-Quarry $21.00 / tonne Kiln Dried Lime ex-Quarry $26.00 / tonne Track Lime for cow lanes etc ex-Quarry $12.00 / tonne Fine Lime ex-Quarry $60.00 / tonne Bagging fee Client supplies 1tonne bag $12.00 / bag Mixing (with lime) fee Outside products of clientâ&#x20AC;&#x2122;s choice $6.00 / tonne Certified weighbridge available at $7.50 / weigh for outside products eg logs, barley etc Ravensdown Ltd:

Lime $ / tonne $36.00 $30.00 $30.00 $27.50 $30.00 $23.50 $20.00 $30.00 $24.49 -

Ex Balfour, Southland Ex Browns Ex Dipton, Southland Ex Geraldine Ex Ngarua, Takaka Ex White Rock, Rangiora Ex Browns Dannevirke Ex Greenleaf, Dargaville Ex Ravensdown Supreme Lime, Te Kuiti Ex Websters, Havelock North Ex Windy Point

Nitrosol Ltd: 2016 prices Microlime â&#x20AC;&#x201C; ultra-fine lime powder ground to 10 micron. Mixed into a slurry with water Microlime 25kg Egmont Commercial Ltd: Dolomite Lime

Track Rock $ / tonne

$12.00 $15.00 $13.75 $16.00 $8.50 $16.00 $16.00

$17.50

25 kg

2.6.3 Dolomite Livestock Supplies (N.Z.) Ltd: Dolomite

$7.95

$0.39 / kg

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2.6.4 Fertiliser Spreading / Application Costs (i) Ground Spreading N.T. Wealleans Ltd: (Waikato / BOP) Fertiliser and Lime kg / ha $/tonne Horticulture $/tonne Pasture 100 $1,207.50 $135.10 150 $804.92 $90.08 200 $603.75 $65.45 250 $483.00 $59.52 300 $402.46 $50.16 350 $344.98 $49.31 400 $301.88 $48.46 450 $766.55 $47.62 500 $241.50 $46.76 550 $219.52 $45.92 600 $201.17 $45.08 650 $185.71 $44.22 700 $172.49 $43.37 750 $160.96 $42.53 800 $150.94 $41.66 850 $142.00 $40.82 900 $134.15 $39.96 950 $127.10 $39.14 1000 $120.75 $38.27 1250 $96.60 $25.44 1500 $80.42 $24.59 2000 $60.38 $24.25 2500 $48.30 $21.59 Spread Compost $39.50 Min Spread $241.50 $185.14 Canterbury: Boag Contracting (Rakaia) charges a flat rate of $13.50 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 $19/ha carted and spread. Under 3 ha is $27/ha. Another contractor charges $9.50/ha for spreading. Cartage depends on distance travelled and amount carted.

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Prices Exclude GST

(ii) 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 may go up if fuel prices increase. Southland: Superphosphate $75 to $120 per tonne Lime $55 to $85 per tonne The aerial rate for liquid fertiliser spreading is $20 per ha, for jobs larger than 120 hectares, and $33 per ha for jobs smaller than 20 hectares. Canterbury: Superphosphate Lime - rate 1 tonne per ha

$80 to $120 per tonne $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

(iii) Helicopter Helicopter spreading depends on the application rate, block size and positioning distance. Auckland $250 - $350 per tonne / $2,600 per hr B2 Squirrel / $3,000 per hr B3 Squirrel Hawkes Bay H500 (or variants) / B 206B $1,800 per hour AS 350 $2,300 per hour Marlborough $300 - $350 per tonne Vineyard fertiliser Approx. $240 to $300 per tonne Canterbury

- 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. Please check with retailer for current prices

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Prices Exclude GST

2.6.5 Testing of Soil, Water, Plant and Feeds Livestock Supplies (N.Z.) Ltd: AgConsult Basic soil Cobalt Mo Basic

$25 $25 $125 Total $175 per test $205 per test $130 per test $75 per test $65 per test $114 - $136 per test

Basic, Co, Mo, total P and S D.D.T. Indicator A.O.B Test NZ Labs BASIC Soil Test Hill Laboratories Comprehensive Herbage Test

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 $69 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 $115 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) is $69 per sample

Please check with retailer for current prices 169

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Prices Exclude GST

RavensdownLtd: 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)* *Recommended soil fertility analysis suite for nutrient budget analysis Cropping Analysis Basic +Sulphate/Organic Sulphur+Anaerobically Mineralisable Nitrogen Mineral N (Deep Nitrogen Ammoniacal N, Nitrate-N, Moisture Test) Basic Plant Analysis Total N,P,K,S,Ca,Mg,Na,Fe,Mn,Cu,Zn, Standard Pasture Analysis Total N,P,K,S,Ca,Mg,Na,Fe,Mn,Cu,Zn,B,Co,Se,Mo Clover/Brassica/Legume Total N,P,K,S,Ca,Mg,Na,Fe,Mn,Cu,Zn,B,Mo Analysis Comprehensive Pasture Standard pasture analysis completed on mixed Analysis pasture. Clover is separated and analysed for clover analysis Plant Petiole Analysis Total N,P,K,S,Ca,Mg,Na,Fe,Mn,Cu,Zn,B,Nitrate-N Potato Petiole Analysis P, K, Mg, Nitrate-N Urgent Nitrate-Nitrogen Same day toxicity results for early receipts Analysis Domestic/Drinking Water pH,Ca,Mg,K,Na,Zn,Mn,Fe,Conductivity,Total Analysis Dissolved Solids, Alkalinity, Chloride, Hardness, Bicarbonate, Free Carbon Dioxide, B, Cu, Ammoniacal N, Nitrate/Nitrate-N Microbiological/Bacteria Total Coliforms, E.Coli Farm Dairy Effluent pH, Ca, Mg, K, Na, Sodium Absorption Ratio, Total N, Total Dissolved P, Total S

Please check with retailer for current prices

170

$55.00 $70.00 $85.00 $50.00 $75.00 $107.00 $85.00 $145.00 $85.00 $50.00 $43.00 $120.00

$35.00 $105.00

Prices Exclude GST

2.7

FREIGHT AND CARTAGE

2.7.1 Road Transport Rates Road Freight rates are normally dependent on the type of goods and distance to be carted. The following figures are estimates for the wider Canterbury area, for other areas the rates may differ slightly. Publication of these is intended as a guide only; each operator determines their own rates on parameters according to their individual costs. Estimated 2018 rates ($ / tonne unless otherwise stated): (km) 10 30 40 50 60 70 Bagged lime/fert $76.14 $76.14 $85.41 $85.41 $93.06 $93.06 Lime(cart & spread) $13.00 $20.81 $21.93 $28.46 $34.05 Bulk Fertiliser $18.60 $22.98 $22.98 $24.08 $25.17 Wool (per bale) Flat rate @ $10.50 per bale, discounted for big lines Bulk Grain $15.00 $15.00 $17.00 $19.60 $21.00 $22.50 Bulk Grass Seed $30.00 $30.00 $34.00 $39.20 $42.00 $45.00 Metal(back load rates) $8.07 $9.27 $9.97 $10.67 $11.37 $12.07 Small Goods Rates: Weight up to 16 km 17 to 48 km 49 to over 64 km Up to 32 kg $19.77 $19.77 $22.43 102 kg $28.87 $28.87 $35.54 508 kg $59.73 $59.43 $74.67 965 kg $76.14 $76.14 $93.06 Stock ($ / head): (km) 10 30 50 70 100 130 160 Store lambs $1.21 $1.43 $1.54 $1.65 $1.76 $1.87 Prime lambs $0.74 $1.10 $1.52 $1.78 $2.17 $2.48 $2.81 Hoggets $0.80 $1.10 $1.50 $1.76 $2.20 $2.23 $2.49 Store sheep $1.57 $1.92 $2.14 $2.20 $2.44 $2.64 Fat sheep $1.10 $2.22 $2.31 $2.53 $3.19 $3.63 $4.12 Weaner cattle $8.00 $15.00 $17.00 Yearlings $10.00 $17.00 $19.00 18 mth cattle $6.60 $6.79 $8.88 $10.97 $13.06 $15.15 $17.24 2 Year cattle $6.60 $9.40 $11.49 $13.58 $15.67 $17.76 $19.85 Prime cattle $17.60 $24.20 $28.60 $34.10 $39.60 $44.00 $41.80 Deer $7.94 $9.32 $11.39 $13.20 $15.26 A limited discount on the above prices could be expected for large lines. Apples: Nelson Region: (All rates exclude FAF (currently11.4%) Pellet, high cube CA bin (controlled atmosphere) / Juice bin Empty CA bin to grower Empty juice bin to grower Please check with retailer for current prices

171

Motueka to Nelson $17.70 $6.50 / $7.98 $1.50$4.00

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Prices Exclude GST

Timber: See Section 2.22.3 for costs of transportation of timber. Express Freight: See also Section 2.15.3 for Postage and Section 2.15.4 for Courier Charges. 2.7.2 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. 2.7.3 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. 2.7.4 Air Freight Rates Pace: (Urgent Courier Service) Air Freight Rates Next Flight Metro (NFM) (Auckland, Wellington and Christchurch) $163.76 for the first 2kg, $14.88 per additional kg. Next Flight Provincial (NFP) / Next Flight Provincial Airport to Door (PAD) $208.40 for the first 2kg, $17.86 per additional kg. Next Flight Metro Airport to Door (MAD) $163.76 for the first 2kg, $14.88 per additional kg. Next Flight Metro Airport to Airport (MAA) $124.58 for the first 2kg, $13.28 per additional kg. Next Flight Provincial Airport to Airport (PAA) $157.79 for the first 2kg, $14.88 per additional kg. Additional Air Service Charges for Auckland / Wellington / Christchurch NFD / ID Next Flight Double Collection / Delivery $24.91 NFB / IB Next Flight Bullet Collection / Delivery $49.83 HG/HGA Hazardous Goods Delivery / Airport to Airport $106.61 AC/AD Afterhours Collection / Delivery $49.62 PC/PD Public Holiday Collection / Delivery $99.27 ** Please note that all prices exclude variable fuel rate & GST** Pace: (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 $2.88 + GST per km.

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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 Brisbane2 Melbourne1 Melbourne2 Hong Kong London Los Angeles1 Perth1 Perth2 Sydney1 Sydney2 Tokyo

$1.15 $1.85 $1.15 $1.85 $3.50 $5.70 $3.90 $1.80 $2.30 $1.15 $1.85 $3.80

Please check with retailer for current prices 173

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Prices Exclude GST

2.8

SEEDS, PLANTS AND PROPAGATION

2.8.1 Seeds - Pasture Ryegrass PGG Wrightson Seeds Proprietary Perennial Ryegrasses Base Tetraploid - AR37 Base Tetraploid - AR1 Excess - AR37 Excess – AR1 Expo – AR37 Expo - AR1 Expo - Lo Endo Rely - AR37 Rely - AR31 Platform - AR37 Hybrid Ryegrasses Delish Tetraploid - AR1 Delish Tetraploid - Lo Endo Maverick G II Italian Ryegrass Lush –AR37 Feast II Tetraploid Winter Star ll Agricom proprietary Perennial Ryegrasses Halo Tetraploid - AR37 Halo Tetraploid - AR1 Kingston - Lo Endo Ceres One50 - AR37 Ceres One50 - AR1 Ceres One50 - Low Endo Prospect - AR37 Prospect - AR1 Request - AR37 Request - AR1 Samson - AR37 Samson - AR1 Samson - High Endo Samson - Low Endo

Bare $11.00 $9.00 $11.00 $9.50 $11.00 $9.50 $6.50 $11.00 $9.50 $11.00

$/kg Superstrike $14.00 $12.50 $14.50 $13.00 $14.50 $13.00 $10.00 $14.50 $13.00 $14.50

$8.50 $6.50 $6.00

$12.00 $10.00 $9.50

$7.00 $6.00 $4.50

$10.50 $9.00 $8.00

Bare $11.00 $9.00 $6.00 $11.50 $10.00 $8.00 $11.00 $9.50 $11.00 $9.00 $10.50 $8.50 $7.00 $7.00

$/kg Superstrike $14.50 $12.50 $15.00 $13.00 $11.50 $14.50 $13.00 $14.50 $12.50 $14.00 $12.00 $7.00

Please check with retailer for current prices

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Prices Exclude GST

Hybrid Ryegrasses Ohau Tetraploid - AR37 Ohau Tetraploid - AR1 Ohau Tetraploid - Low Endo Supreme Plus - AR1 Supreme Plus - Low Endo Italian/Annual Ryegrass Asset - AR37 Asset Progrow Annual Agriseeds proprietary Perennial Ryegrasses Alto AR37 Alto AR1 Alto Low Endo Arrow AR1 Arrow Low Endo Tyson AR1 Bealey Low Endo Rohan NEA2 Trojan NEA2 Viscount tetraploid NEA Hybrid Ryegrasses Shogun Hybrid NEA Italian/Annual Ryegrass Hogan tetraploid annual Tabu+

$9.50 $8.00 $6.50 $8.00 $7.00

$13.00 $11.50

$7.00 $6.00 $4.00

$10.50 $9.00 -

Bare $12.00 $9.50 $8.00 $9.50 $8.00 $9.50 $8.00 $9.00 $10.50

Superstrike $15.00 $13.00 $13.00 $13.00 $12.00 $14.00

Bare $8.00

Superstrike $11.00

$3.50 $6.00

$7.00 $9.00

Cropmark proprietary Barrier Combo Grubout U2 $14.95 Ultra Enhanced AR1 $9.75 Ultra Enhanced Nil Endo $8.25 Matrix Enhanced Nil Endo $8.50 Matrix Enhanced Std Endo $6.10 Kai Tetraploid Enhanced Nil Endo $8.10 Hybrid Ryegrasses Splice festulolium Short Rotation Italian Ryegrass Sonik $5.70 Blade Zoom Tetraploid annual $3.85 Bullet annual Source: New Zealand Grain and Seed Trade Association. Please check with retailer for current prices 175

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Prices Exclude GST

Agriseeds: Bag Size - 25kg

Perennial & Long Rotation Price / kg Price / kg Endophyte Bare 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 $3.80 $7.13 Tabu Italian $5.92 $9.26 Shogun Hybrid NEA $8.11 $11.44 Shogun Hybrid LE $7.25 $10.58 NB. Prices are delivered to reseller store in the South Island; please add $0.15/kg for North Island pricing. White Clover Prillcote PGG Wrightson Seeds proprietary Legacy Bounty Quartz Hilltop Tahora II $8.50 Agricom Grasslands Mainstay Grasslands Nomad $10.00 Grasslands Tribute $12.00 Agriseeds proprietary Apex Kotuku Weka Cropmark proprietary Demand Mantra Reaper Source: New Zealand Grain and Seed Trade Association.

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176

Superstrike $14.00 $14.00 $15.00 $11.00 $11.00

Bare $13.00 $13.00 $13.00 $11.00 $11.00

$17.00 $12.00 $14.00

$14.00 $12.00 $16.00

$13.00 $17.00 $15.00

$12.00 $14.00 $14.00

$14.90

Prices Exclude GST

Agriseeds Bag Size - 25kg Bare $/kg Agricote $/kg Apex $12.94 $11.50 Weka $15.24 $13.34 Kotare $16.79 $13.86 NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. Agricote Clover is a 75% weight build up, therefore the recommended sowing rate is 4kg/ha. Red Clover Agricom proprietary ($/kg) Prillcote Superstrike Relish $15.00 Sensation $13.00 $15.00 Agriseeds proprietary ($/kg) Tuscan Red $13.00 Source: New Zealand Grain and Seed Trade Association.

Bare $16.00 $14.00

Agriseeds: Bag Size - 25kg Bare $/kg Agricote $/kg Tuscan $14.55 $15.24 NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. Strawberry Clover PGG Wrightson Seeds proprietary ($/kg) 2016 prices, as not available in 2018 Prillcote Superstrike Bare Strawberry $12.00 $13.00 Source: New Zealand Grain and Seed Trade Association. Subterranean Clover Prillcote Agricom proprietary ($/kg) Coolaman $8.00 Source: New Zealand Grain and Seed Trade Association.

Superstrike -

Bare $10.00

Annual Clover Prillcote Agricom proprietary ($/kg) Viper Balansa $9.00 Source: New Zealand Grain and Seed Trade Association.

Superstrike $11.00

Bare $10.00

Lotus Agricom proprietary ($/kg) Trojan Lotus Source: New Zealand Grain and Seed Trade Association.

Superstrike -

Bare $31.00

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Cocksfoot Agriseeds: Bag Size - 25kg

Bare $/kg $8.51

Agricote $/kg $11.85

Safin NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. PGG Wrightson Seeds proprietary ($/kg) Tekapo Agricom proprietary ($/kg) Savvy Agriseeds proprietary Safin Cropmark proprietary Vision Kainui Source: New Zealand Grain and Seed Trade Association. Tall Fescue PGG Wrightson Seeds proprietary ($/kg) Quantum II Max P Agricom proprietary ($/kg) Easton Max P Hummer Max P Source: New Zealand Grain and Seed Trade Association. Bromes Agricom proprietary ($/kg) Atom Prairie Grass Gala Grazing Agriseeds proprietary ($/kg) Bareno Pasture Source: New Zealand Grain and Seed Trade Association.

Superstrike $12.00

Bare $8.50

$14.00

$11.00

$11.50

$8.50

$8.40

Superstrike $17.00

Bare -

$17.00 $17.00

$13.50 $13.50

Superstrike -

Bare 5.50 6.00

6.00

Agriseeds: ($/kg) Pasture Brome Bareno â&#x20AC;&#x201C; 25kg Bag $5.52 NB. Prices are delivered to reseller store in the Sth Is; please add $0.15/kg for Nth Is. Fog Grass Prillcote Agricom ($/kg) Yorkshire Fog Source: New Zealand Grain and Seed Trade Association.

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Superstrike

Bare $20.50

Prices Exclude GST

Chicory Agriseeds: ($/kg) Price / kg Agricote 501 Chicory â&#x20AC;&#x201C; 8kg Bag $24.84 NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. Superstrike Bare PGG Wrightson Seeds proprietary ($/kg) Puna II Chicory $24.50 $21.00 Agricom proprietary ($/kg) Choice $24.50 $21.00 Agriseeds proprietary ($/kg) 501 $22.00 $16.75 Cropmark proprietary Chico chicory $20.05 Source: New Zealand Grain and Seed Trade Association. Plantain Prillcote Agricom proprietary ($/kg) Ecotain $11.00 Source: New Zealand Grain and Seed Trade Association. Lucerne PGG Wrightson Seeds proprietary ($/kg)

Prillcote

Kaituna Stamina 5 Torlesse WL325 HQ Source: New Zealand Grain and Seed Trade Association. 2.8.2 Seeds â&#x20AC;&#x201C; Forage Cultivars Raxil Treated Raxil Poncho Forage Oats Coronet Forage Oats $1,800 Milton Forage Oats $1,800 Triticale Doubletake Multigraze $1,900 $2,400 Forage Triticale Prophet $1,900 $2,400 Crackerjack $1,800 $2,500 Silage Barley Monty $1,800 $2,300 Salute $1,600 $2,000 Forage Pea Blend Pea/Milton Oats 60:40 Pea/Crackerjack 60:40 Pea/Monty 40:60 Source: New Zealand Grain and Seed Trade Association. Please check with retailer for current prices 179

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Superstrike $19.00

Bare $15.50

Superstrike $20.00 $20.00 $19.50 $19.50

Bare $19.50 $19.50 $19.00 $19.00

Raxil Galmano -

Bare $1,650 $1,700 $1,750

$2,000

$1,800 $1,750

$1,700 $1,500

$2,000 $2,000 $2,000

Prices Exclude GST

Agriseeds: Hattrick Greenfeed Oats â&#x20AC;&#x201C; 50kg bags ($/kg) $1.67 NB. Prices are delivered to reseller store in the South Island; please add $0.15/kg for North Island pricing. Pioneer: www.pioneer.nz 0800 PIONEER (746 633) Maize seed $ per 80,000 seed bag. Comes with Lumigen 201 fungicide treatment. P1636 $417.46 P1253 $414.31 P0891 $410.80 P0725 $422.27 P0791 $385.83 P0640 $422.60 P0362 $425.26 P9911 $420.41 P9400 $405.40 P9127 $427.39 38V12 $381.08 P8805 $420.60 P8500 $422.90 P8000 $416.83 P7524 $406.95 P7124 $418.27 Please note insecticide treatment is extra. Lumigen 401 is $108per 80,000 kernel bag. Rape PGG Wrightson Seeds proprietary prices ($/kg) Superstrike Ultrastrike Goliath (10kg packs) $19.00 $25.00 Spitfire (10kg packs) $20.00 $24.50 Titan (10kg packs) $18.00 $25.00 Winfred (10kg packs) $18.50 $25.00 Cropmark prices $/ kg Pillar Forage Source: New Zealand Grain and Seed Trade Association.

Gaucho $19.00 $18.50 $20.00 $18.50

Bare $9.50(10+kg) $9.00 $10.15

Agriseeds: Interval

($/kg) Agricote Brassica 5kg/10kg/25kg $16.62 / $16.56 / $16.22 Bare 5kg/10kg/25kg $9.03 / $8.97 / $8.45 NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. Please check with retailer for current prices

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Forage Brassica PGG Wrightson Seeds proprietary prices ($/kg) Superstrike Ultrastrike Pasja II (10kg packs) $20.00 $25.00 Hunter (10kg packs) $20.00 $26.00 Source: New Zealand Grain and Seed Trade Association. Swedes PGG Wrightson Seeds proprietary prices ($/kg) Superstrike Ultrastrike Aparima Gold(1kg pack) $32.00 $38.00 Domain (1kg packs) $29.00 $35.50 Clutha Gold (1kg pk) $32.00 $40.00 Triumph (1kg packs) $40.00 Major Plus (1kg packs) $26.00 $33.00 Source: New Zealand Grain and Seed Trade Association.

Gaucho $20.00 $20.00

Gaucho $33.00 $30.00 $34.00 $34.00 $27.00

Bare $11.00 $11.50

Bare $20.00 $18.00

Agriseeds: Invitation

($/kg) Agricote Brassica 1 kg / 5 kg / 25 kg $22.20 / $22.14 / $21.62 Bare kg /5 kg / 25 kg $14.66 / $14.38 / $13.86 NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. Turnips PGG Wrightson Seeds proprietary prices ($/kg) Superstrike Ultrastrike Appin (1kg packs) $23.00 $28.00 Barkant (1kg packs) $27.00 $33.00 Green Globe (1kg pack) $20.50 $27.00 Green Resistant(1kg pk) $20.50 $27.00 New York (1kg packs) $21.00 $27.50 Rival (1kg packs) $21.00 $27.50 Cropmark Marco Source: New Zealand Grain and Seed Trade Association.

Gaucho $22.00 $28.00 $21.00 $21.00 $21.50 $21.50

Bare $13.00 $12.00 $12.00 $12.50 $12.50 $12.00

Agriseeds: Dynamo

Agricote Brassica 1 kg / 5 kg / 25 kg ($/kg) $18.86 / $18.57 / $18.06 Bare 1 kg /5 kg / 25 kg ($/kg) $17.10 / $10.81 / $10.29 NB. Prices are delivered to reseller store in the South Is, add $0.15/kg for North Is pricing.

Please check with retailer for current prices

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Fodder Beet: Agriseeds: All sold in 50,000 seed boxes Robbos Ribbondo Blizzard

Per box $290.00 $290.00 $290.00

Kales: PGG Wrightson Seeds proprietary prices ($/kg) Superstrike Ultrastrike Gruner (10kg packs) $23.00 $29.50 Kestrel (10kg packs) $23.00 $29.50 Regal (10kg packs) $24.00 $30.50 Sovereign (10kg packs) $23.00 $30.00 Cropmark Coleor Proteor Source: New Zealand Grain and Seed Trade Association.

Gaucho $23.50 $23.50 $24.50 $24.00

Bare $14.50 $14.50 $15.00 $14.95 $14.95

Agriseeds: Caledonian Kale

Agricote Brassica 5kg/10kg/25kg ($/kg) $22.25 / $22.20 / $21.68 Bare 5kg/10kg/25kg ($/kg) $14.49 / $14.43 / $13.92 NB. Prices are delivered to reseller store in the South Is; add $0.15/kg for North Is pricing. 2.8.3 Seeds - Arable Crops White Oats - uncertified Cereals: Black Oats - uncertified Discovery Wheat - certified, Raxil treated (milling) All Feed Wheats - Raxil treated (eg. Savannah) Barley â&#x20AC;&#x201C; Tavern - Raxil treated Ryecorn MD Amilo - Raxil Galmano Marrowfat Peas: White Blue Prussian Maple Source: New Zealand Grain and Seed Trade Association. 2.8.4 Seeds - Process Crops Peas Broad Beans Green Beans

$950 / tonne $1,000 / tonne $1,675 / tonne $1,750 / tonne $1,600 / tonne $1,825 / tonne $950 / tonne $950 / tonne $950 / tonne $950 / tonne $950 / tonne

$645 / ha $490 / ha $750 / ha

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Charging rates are now set according to sowing rate, and equate to a set cost / ha. 2.8.5 Seeds - Turf Grasses Ryegrass: Arena Tambour Fescue: Red Chewings Browntop: Egmont Source: New Zealand Grain and Seed Trade Association.

$ / kg Bare $12.00 $12.00 $18.00 $18.00 $30.00

2.8.6 Coated Seed See Section 2.8.1 for coated seed prices 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.

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2.8.7 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 Babyleaf -Beet $37 to $79 per 1kg $312 to $686 per 10kg -Chard $72 per 1kg $624 per 10kg -Kale $79 per 1kg $686 per 10kg -Mustard $27 to $270 per 1kg $208 to $2,435 per 10kg -Pak Choi $168 per 1kg $1,515 per 10kg -Rocket $99 to $302 per 1kg $874 to $2,747 per 10kg Basil -Green to red $36 to $82 per 100g $72 to $712 per 1kg Beans -Dwarf $85 per 5kg $391 per 25kg -Runner $212 per 5kg $981 per 25kg Beetroot $149 per 500g $1,265 per 5kg Broccoli $115 to $198 per 10,000s $1,037 to $1,785 per 100,000s Cabbage -Red $156 per 50g $1,785 per 100,000s -Green $120 per 50g $839 to $1,632 per 100,000s -Chinese $80 to $95 per 10,000s $714 to $857 per 100,000s Capsicum cov -Blocky $123 per 100s $1,115 per 1,000s -Conical $136 per 100s $1,221 per 1,000s field -var $99 to $209 per 1,000s $887 to $1,868 per 10,000s Carrot -Baby/bunch $175 per 250,000s $661 per million s Cauliflower -White $141 to $166 per 2,500s $527 to $624 per 10,000s Celeriac $49 per 2,500s $850 per 50,000s Celery $423 per 25,000s $1,592 per 100,000s Chilli Var $50 per 100s $1,487 per 10,000s Chives $42 to $49 per 100g $359 to $432 per 1kg Coriander $20 to $26 per 100g $162 to $992 per 5kg Cucumber -Field $22 to $70 per 1,000 s $197 to $629 per 10,000s Cucumber -Covered $38 to $98 per 100 s $335 to $888 per 1,000s Dill $26 to $32 per 100g $972 to $1,225 per 5kg Eggplant -Field $47 to $72 per 1,000s $420 to $655 per 10,000s -Covered $101 per 100s $876 per $1,000s Kale $193 per 250g $373 per 500g Leek -Pills $339 per 10,000p $1,576 per 50,000p $273 per 10,000s $1,264 per 50,000s

Please check with retailer for current prices

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South Pacific Seeds: cont Lettuce -Iceberg -Batavia

Microgreen

Onion hybrid Pak Choi Parsley Peas Pumpkin Radish Rocket Silver Beet Spinach Squash Sweetcorn Tomato Turnip Witlof

-Butterhead -Cos var Frill Gr/Red -Oak Gr/Red -Amaranthus -Basil green -Basil purple -Beet -Borage -Cabbage -Cress -Fennel -Kohlrabi -Mustard -Orach -Pak Choi -Parsley -Radish -Bunching -Red -varieties -Green -Butternut -Butternut -Grey -varieties -varieties -varieties -varieties -varieties -varieties -Field -Covered Tokyo (indent only)

$284 to $337 per 10,000p $251 to $302 per 5,000s $251 per 5,000pills $243 to $293 per 5,000p $288 per 5,000pills $288 per 5,000pills $92 per 500g $31 per 500g $61 per 500g $19 per 500g $134 per 500g $31 per 500g $26 per 500g $27 per 500g $20 per 500g $81 per 500g $128 per 500g $21 per 500g $36 per 500g $19 to $30 per 500g s $136 to $260 per 500g $453 per 100,000s $59 to $85 per 10,000s $22 per 100g $39 per 5kg $109 per 1,000s $63 per 500g $107 to $116 per 1,000s $32 to $99 per 100g $21 to $35 per 100g $63 per 500g $82 per 100,000s $64 to $499 per 1,000s $142 to $179 per 1,000s $92 to $99 per 5,000s $103 to $193 per 1,000s $39 to $218 per 100s $20 per 25g $107 per 10,000s

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$2,556 -$3,047 per 100,000p $4,365 - $5,211 per 100,000s $4,235 per100,000p $4,220 -$5,062 per 100,000p $5,015 per 100,000p $5,015 per100,000p $780 per 5kg $260 per 5kg $520 per 5kg $162 per 5kg $1,124 per 5kg $260 per 5kg $214 per 5kg $225 per 5kg $175 per 5kg $682 per 5kg $1,104 per 5kg $183 per 5kg $299 per 5kg $162 to $247 per 5kg $2,231 to $4,474 per 10kg $3,847 per million s $4,292 to $5,950 per mil s $69 to $169 per 1kg $154 per 25kg $2,323 per 25,000s $2,486 per 25kg $2,212 - $2,489 per 25,000s $281 to $888 per 1kg $453 to $1,415 per 5kg $566 per 5kg $375 per 500,000s $297 to $2,307 per 5,000s $3,048 -$3,875 per 25,000s $1,530- $1,722 per 100,000s $925 to $1,734 per 10,000s $344 to $1,959 per 1,000s $333 per 500g $969 per 100,000s

Prices Exclude GST

South Pacific Seeds: cont Zucchini -Scallopini -Green -Ball colours -Kumi kumi

$87 per 100g $102 to $135 per 1,000s $115 per 1,000s $63 per 100g

$778 per 1kg $2,126 to $2,814 per25,000s $2,390 per 25,000s $2,530 per 5kg

Terranova Seeds:

Standard Hybrid Basil - Italian leaf $25.00 per 100g Beans - Dwarf $310 to $360 per 25 kg - Butter $230 per 25 kg Beetroot $18.50 per 10,000s, $185 per 100,000s Broccoli $320 to $385 per 25,000s Cabbage - Green $146 - $219 per 100g $221 - $336 per 25,000s - Red $310 per 100g - Pak Choi $53 / 100g, $134 /25,000s - Chinese $110 per 100g Capsicum -Green-Red $30 per 100g -Cayenne $35 per 100g -Hot, chilli $160 per 25g -Glasshouse $542 to $1,031 per 1,000s Carrot $75 per 500g, $130 per $969.50 to $1,118 per 250,000s 500,000s Cauliflower $450 to $525 per 10,000s Celery $220 per 25g Coriander $12 per 100g Cucumber - Slicer $17.00 per 100g $230 per 5,000s,$110/100g Cucumber - Glasshouse $1,025 to $1,141 / 1,000s Eggplant $23 per 100g $165 per 100g Endive $246.50 per 5,000 split pill Kale -Tuscan $210 per 100g Leek $250 per 50,000s $252 per 10,000s Lettuce -Iceberg type $122.31 per 5,000 split pill, $139 per10,000 pellets -Batavia $205 to $263 per 5,000 split pill -Butterhead $229.50 per 5,000 split pill -Cos types $178.20 to $275 per 5,000 split pill -Coral Red $242.50 per 5,000 split pill & Green -Oakleaf Red $242.50 per 5,000 split pill & Green -Salanova $288.80 to $295 per 5,000 split pill Melon -Honey Dew $110 per 1,000s -Rock $230 per 1,000s -Water $35 to $130 per 500g $260 to $548 per 500g Please check with retailer for current prices 186

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Terranova Seeds: cont Onion -Brown -Red -Bunching -Japanese Parsley Peas -Snowpea Pumpkin -Butternut -Grey Radish -Japanese var -red Silver Beet Spinach Squash -Buttercup -Kabocha

Swede Sweet Corn -Yellow -Bi-colour Tomato -Outdoor Protected Turnip Zucchini

$94.50 to $96.50 per 500g

$2,180 to $3,914 per 1 million s $1,060 to $1,234 per 250,000s $102 per 500g, $1,800 per 10kg $415 to $552.80 per 500g $30 to $42 per 100g $140 per 25kg $260 per 25kg $60 per 500g $502 per 5,000s $998 to $1,098.40 per10,000s $260 to $375 per 500g $132 per 50,000s $580 to $648 per 6kg $464 per 500,000s $655.40 per 1million s $120 to $367.20 per 500g $1,710 per 7.5kg $218.50 per500g, $2,449 / 6kg $22 per 100g, $98 per 500g $1,798 per 100,000s $1,798 per 100,000s $400 per 1,000s $999 per 1,000s $315 per 500g $250 per 3,000s

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2.8.8 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 Antirrhinum varieties Asclepias Aster (Callistephus) Calendula varieties Campanula varieties Celosia varieties Centaurea Craspedia Globosa Cucurbita Cynara cardunculus Delphinium varieties Delphinium belladonna Dianthus varieties Echinacea (White, green cone) Echinops Eryngium Eucalyptus Helianthus (Sunflowers) varieties Hibiscus sabdariffa Kale Larkspur Lisianthus (Eustoma) Doubles Papillion series Singles Matricaria (Tanacetum) Molucella laevis Peppers Ornamental Rudbeckia Statice Stock (Matthiola) varieties Sweet Pea (Lathyrus) Zinnia

$10/g $45 to $135 per g, $39.00 to $53.50 per 1,000 seeds $3.95/15 seeds $13-$69/1,000 seeds $2.90/g $60-$80/1,000 seed $15-$90/1,000 seeds $20/1,000 seeds $3.95/30 seeds $3.95/10 seeds $3.95/15 seeds $2.50 to $7.50 per g $40-$400/1,000 seeds $70/1,000 seeds $3.95/20 seeds $3.95/30 seeds $40/1,000 seeds $180/1000 seeds $60/1,000 seeds $3.95/20 seeds $57-$90 per 1,000 seeds $38 per 1,000 seeds $73 per 1,000 seeds $67 per 1,000 seeds $48 per 1,000 seeds $3.95/40 seeds $10/1,000 seeds $3.95/100 seeds $3.95/20 seeds $8 per 1,000seeds, $650 (First F1) per 1,000 seeds $18-$75 per 1,000 seeds $3.95/20 seeds $60/1,000 seeds $20-$70 per 1,000 seeds

Please check with retailer for current prices

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Bulbs: Green Harvest Pacific Ltd: Anemone varieties Ranunculus varieties

$0.45 each $0.68 each

Fiesta Flower Bulbs: (Wholesale supply only) Allium Anemone Bluebell Brodaiea Crocus varieties Dutch Iris / Mini varieties Freesia singles / doubles Fritillaria Gladioli varieties Hyacinths Ixia Lachenalia Ranunculus

per 1 â&#x20AC;&#x201C; per 5 per 8 - per 25 per 5 per 10 per 5 / 10 per 7 per 10 per 3 per 7 per 3 per 10 / 15 per 5 Per 20

$4.25 to $2.35 $3.50 to $2.75 $4.75 $2.25 $2.50-$3.50 / $3.95 $2.80 / $3.50 $2.25 / $3.25 $4.95 $2.20 to $2.75 $3.95 $2.75 $2.95 - $3.35 $2.95

Muscari Narcissus varieties

Bulk per 1,000 $39 to $99 Per 100 $65

per 100 $195 - $550.00 $38.21 to $49.11 $95 to $105 per 100 $65 to $195 Per 1,000 $65 to $95 size dependent

per 3 / 5 / 10 $3.95/ $3.20/ $2.95 per 5 $3.25 to $5.95 per 100 $30 to$75 per 10 $4.75 to $7.95 per 20 $7.95 to $10.55 Narcissus, mini var per 5 / per 15 $3.75-$4.75 / $7.95 per 100 $49.50 Nerines per 1 $3.95 per 100 $185-$195 Sparaxis per 15 $2.95 Tritonia per 10 $3.95 Tulip varieties per 5 $3.25 to $4.95 per 100 $45 to $55 per 10 $3.75 to $5.90 Note: prices are exclusive of freight. Some bulk purchases have minimum quantity. Plants for Cut Flowers: Green Harvest Pacific Ltd: Gypsophila varieties

$4.99/1,000 seeds

Green Harvest Pacific Ltd: Contract growers of plug plants Gypsophila Woody stemmed perennial plants for cut flower growers Hydrangea from Holland Ilex Winter Berry Please check with retailer for current prices 189

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$2.95 to $3.95 per plug plant $2.95 to $3.95 per plug plant $1.10 to $2.75 per plug plant $4.95 per plant $4.95 per plant Prices Exclude GST

2.8.9 Fruit Trees and Plants (See also Section 2.22.1 for shelter plants) Fruit Trees: Southern Woods: Apples Apricots Cherries Fig Nectarines Peaches Pears Plums

Grade Bare Rooted to 10L PB18 Bare Rooted to 10L PB18 Bare Rooted to 6L pot / 10L PB18 Bare Rooted to 3L / 10L PB18 Bare Rooted to 10L PB18 Bare Rooted to 10L PB18 Bare Rooted to 10L PB18 Bare Rooted to 10L PB18

Tharfield Nursery Ltd (Katikati): Avocado varieties PB5s Banana Misi luki 3.3L Casimiroa varieties PB5s Feijoa varieties 3l Fig varieties 3l Guava varieties 3ls Loquat PB5s Mountain Pawpaw 3l Pepino 1.9l

Price ea $32.17 - $42.57 $33.04 - $42.57 $32.17-$39.13/$42.57 $33.04-$19.56/$42.57 $30.43/$33.04-$42.57 $32.17 - $42.57 $33.04 - $42.57 $33.04 - $42.57 $19.95 $9.25 $18.95 $10.50 $7.75 $6.95 to $7.50 $16.25 $8.95 $6.25 to $6.50

Waimea Nurseries: (Nelson) All prices based on commercial orders and may be dependent on grade and numbers. Prices may not include all royalties. 2016 prices Feijoa varieties $9.50 to $11.50 each Fig varieties $10.50 each Apricots, Cherries, Nectarines, Peaches, Plums, Plumcots $13.50 Apples, Nashi, Quinces, Pears $13.50 Persimmon $22.90 each Citrus: Southern Woods: Grapefruit / Kumquat Lemonade / Lemon - Meyer Lime vars Mandarin Orange

Grade 4.5L PB8 4.5L PB8 4.5L PB8 4.5L PB8 4.5L PB8

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Price ea $27.39 $27.39 $27.39 $27.39 $27.39

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Waimea Nurseries: (Nelson) All prices based on commercial orders and may be dependent on grade and numbers. Prices may not include all royalties. 2016 prices Limes, Lemons, Mandarins, Oranges Grafted $13.95 each Grapefruit Grafted $13.95 each Kumquats, Limequats Grafted $13.95 each Nut Trees: Southern Woods: Almonds Hazelnuts Walnuts

Grade Bare Rooted to 10L PB18 Bare to 4.5L PB8/10L PB18 Bare Rooted to 10L PB18

Price ea $32.17/$33.04-$42.57 $22.56-$23.91/$42.57 $55.65 - $69.52

Waimea Nurseries: (Nelson) All prices based on commercial orders and may be dependent on grade and numbers. Prices may not include all royalties. 2016 prices Almond varieties $13.50 Hazelnut varieties $12.95 Pine Nut $14.95 Tharfield Nursery Ltd: (Katikati) Pine Nut 3l Olives: Southern Woods: Frantoio Koroneiki Leccino Manzanillo

Grade 3.5L PB6.5-10LPB18 3.5L PB6.5-10LPB18 3.5L PB6.5-10LPB18 3.5L PB6.5-10LPB18

$8.95

$21.30-$46-08 ea $21.30-$46-08 ea $21.30-$46-08 ea $21.30-$46-08 ea

Elliotts Wholesale Nursery: Frantoio / Verdale / Koroneiki / Leccino / Pendalino 10% discount applies to over 1000 mixed plants.

100 + ea $18.69-$41.73 $18.69-$41.73 $18.69-$41.73 $18.69-$41.73

$13.95 each

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

$8.95

Waimea Nurseries: (Nelson) All prices based on commercial orders and may be dependent on grade and numbers. Prices may not include all royalties. 2016 prices Olive varieties $10.95 each Please check with retailer for current prices

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Vines: Southern Woods:

Grade 2L / 2.5L

Grapes Green/Black seeded/Red seedless

Price ea $20.20 / $20.78

Tharfield Nursery Ltd: (Katikati) Grape Albany Surprise, Candice seedless, Schuyler, Niagara 3l Passionfruit varieties 12cm, 1.9l and 3l Tamarillo varieties 1.9l Waimea Nurseries: (Nelson) 2016 prices Table Grapes â&#x20AC;&#x201C; bagged cutting grapes

$6.95 $3.70 to $5.50 $4.95 to $6.50 $10.95 each

Berryfruit: Tharfield NurseryLtd: (Katikati) Variety Blackberry Black Satin 3l Blackcurrant Magnus 3l Blueberry Blue Dawn, Blue Magic 3l Boysenberry 3l Cape Gooseberry 1.9 l Cranberry Bergman, Crowley 1.9 l Hybridberry 3l Loganberry Waimate 3 l Raspberry 3l

Price $9.25 $7.25 $9.75 $9.25 $5.75 $9.75 $9.25 $9.25 $9.25

Waimea Nurseries: (Nelson) All prices based on commercial orders and may be dependent on grade and numbers. Prices may not include all royalties. 2016 prices Boysenberries $10.95 each Blackberries $10.95 each Raspberries $10.95 each Gooseberries $10.95 each Cranberry (True Cranberry & NZ Cranberry) $10.95 each Currant (Black & Red) $10.95 each Blueberries $10.95 each

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Prices Exclude GST

2.8.10 Planting / Propagating Expenses (See also Section 2.11.5 for Packaging materials). Daltons Ltd – Matamata: *Capillary Base Standard planters P140ECOX00 1.4 to 13.5 litre – pack size 360 to 25 P300ST* SV house plant pots P105MIDI* 0.5L -1.9L – pack size 600 to 25 P150STC* Square ‘Spacesaver’ pots P85SJ – P190SR 8.5 to 19 cm – pack size 600 to 30 Plant labels LB125 & LB125H 125mm, pack size ̴ 400 to 600 Plant Support SIMCLIPRING13-25 13mm to 25mm – pack size 1,000 Propagation Tubes PSA-T55 & PSA-T70 5.5 / 7 cm – pack size 1,575 & 1,024 Seedling Trays TRS349X Suits all punnets – pack size 1,200 Punnets CH4 to CH6 4 cell to 8 cell – pack size 516 & 528 Propagation Trays TR90SBK 12cell for 90mm bottomless tube.pk size 10 PSA-FERT Fertilpot4,5x7-7x9cm – pk size 2,304-1,280 Primehort: Bamboo Canes Size 60cm (8-10) 90cm (8-10) / (10-12) 120cm (8-10) / (10-12) 150cm (12-14) / (14-16) 180 (16 -18) / (26 – 32) 240 (18-20) / (20 - 22) Indent pricing available

1 – 4 Bales $47.30 $66.00 / $39.60 $86.90 / $54.70 $69.30 / $56.10 $56.10 / $69.95 $44.00 / $55.30

Bale Qty 500 500 / 250 500 / 250 200 / 150 100 / 30 50 / 50

Egmont Commercial: Rigid propagation pad 28cm2 producing 10w Planter bags PB 0.75 to PB 6.5 PB 8 to PB 40 PB 60 / PB 95 Computer labels (unprinted) White or coloured Flight Plastics Ltd: Propagation T2642 Cell trays T2643 T2644

193

$0.10 to $0.24 $0.14 to $0.58 $0.07 to $0.07 $0.02 to $0.02 $0.08 & $0.09 $1.00 $0.27 & $0.27 $2.10 $0.07 to $0.12 5 – 14 Bales $41.80 $58.30 / $35.20 $76.85 / $48.10 $60.50 / $50.60 $49.70 / $60.50 $39.60 / $48.60

$29.80 $28.60 to $88.40 per 1,000 $127.40 to $294.00 per 1,000 $510.00 / $1,140.00 per 1,000 $69.90 per 1,000

45ml round cell 60 30ml sq. cell 144 16ml sq. cell 198

Please check with retailer for current prices

$0.22 to $1.69

$4.39 per tray $4.39 per tray $4.39 per tray 193

Prices Exclude GST

Cosio Industries Ltd: Planter bags PB Âž to PB2 PB3 to PB6.5 PB8 to PB 12 PB18 to PB28 PB40 to PB95

Price / 100 $4.35 to $6.52 $7.07 to $13.04 $19.56 to $25.00 $27.17 to $33.69 $46.74 to $149.97

Transplant Systems Ltd: (prices ex-Auckland) Transplant Systems seedling trays 25 to 256 cells per tray Bumnong 50 to 512 plug tray Water absorbent polymers 25 kg bag 1 kg pack Transplant Systems planting 49 to 68mm tubes Kidney-shaped plant holder Thermoformed plastic pots 7 to 15 cm Dosmatic proportional injector â&#x20AC;&#x201C; range of flow rates

$7.72 to $10.50 / tray $1.50 to $2.00 each $480 $23.10 $194.25 to $226.80 $114.45 From $0.04 / pot From $934.50

2.8.11 Growing Medium Canterbury Landscape Supplies: ex yard. Freight not included Mulch Arbor Mulch Bark Premium Chip 5mm -15mm Standard Nuggets- Medium grade, 20mm+ Chunky Nuggets -50mm+ Canterbury Bark Compost/Medium Bio-Blend Garden Gro (Organic Compost) Garden Soil Blend Turf Mix Screened Soil Manured Sawdust Black Mulch Egmont Commercial Ltd: Vermiculite medium 100 litre Perlite Propagating Media 100 litre

Price per cubic metre $39.13 $91.30 $67.83 $83.48 $57.39 $73.04 $65.22 $70.43 $83.48 $52.17 $57.39 $91.30 $36.75 $37.75

Please check with retailer for current prices

194

Prices Exclude GST

2.9

WEED, PEST AND DISEASE CONTROL

2.9.1 Weed and Pest Control â&#x20AC;&#x201C; Budget Figures Depending on farm type, location and other factors, typical weed and pest control costs forecast for 2017/2018 are: (per su) Sheep and Beef North Island Hard Hill Country East Coast $1.49 North Island Hill Country Taranaki-Manawatu $2.00 North Island Intensive Finishing Northland, Waikato, BOP $2.42 South Island High Country $3.55 South Island Hill Country $3.34 South Is Canterbury/Marlborough Breeding and Finishing $5.09 South Island Intensive Finishing $2.14 South Island Mixed Finishing $33.25 National $3.94 (per cow) (per kg MS) Dairy 2016/2017 National $14 $0.04 (per ha) Arable 2016 Canterbury $1.61 (per ha) Horticulture Hawkes Bay Pipfruit 2015 budget $2,870 Nelson Pipfruit 2015 budget $3,185 (per producing ha) Viticulture Marlborough $1,017 Source: MPI; Beef+Lamb NZ Economic Service; Brownglass; DairyNZ Economic Survey 2016/2017 For further examples see Section 3, Gross Margins. See individual items in this section for accurate budgeting.

Please check with retailer for current prices

195

Prices Exclude GST

2.9.2 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: AG Agmax MO Monsanto AV Aventis N Nu Farm B BASF NO Novartis BY Bayer O Orion CC CropCare PGGW PGG Wrightson CW Crop Watch PH Prime Hort CY Cyanamid PM Pest Management Services CO Corteva RA Ravensdown DO Dow AgriScience S Syngenta FF Fruitfed Supplies T Taranaki NuChem K Key Industries Y Yates 2.9.3 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 “N.Z. Agrichemical Manual” (obtainable from rural retailers). Trade Name Active Ingredient (%) Code Unit Size Retail Price Alanex Alachlor(48), 20 litre $277.39 monochlorobenzene(3.6) Associate metasulfuron-methyl (60) N 500g / 2 kg $73.90 / $260.00 600WDG Asulox asulam (40) BY 5 litre $207.83 Atraflow atrazine (50) O 5 / 20 litre $69.56 / $134.78 Avadex Xtra triallate (50) N 20 litre $329.57 Banvine 2,4-D (20) CO 1 / 5 litre $86.95 / $268.70 Basagran bentazone (48) B 10 litre $207.83 Betanal Forte phenmedipham (16), BY 15 litre $1,738.26 desmedipham (16) Bladex 90WG cyanazine (90) B 5g $303.48 Buster glufosinate-ammonium (20) BY 1/5/20 litre $78.25/ $260.00 / $625.22 Centurion Xtra clethodim (24) N 5 litre $416.52 Classic 250g/kg chlorimuron-ethyl CO 240g $199.13 Duplosan Super mecroprop-P (13), B 10 litre $233.91 MCPA(16), dichlorprop-P(31) Duplosan KV mecroprop-P (60) B 10 litre $338.26 Flag Flo chloridazon (43) 5 litre $138.26 Please check with retailer for current prices 196

196

Prices Exclude GST

Trade Name Frontier P Fusilade Forte Gallant Ultra Goal Advanced Gramoxone 250 Grazon Hexazione Jaguar

Active Ingredient (%) dimethanamid-P (72) fluazifop-P-butyl (15) haloxyfop-P (52) 480g/l oxyfluorfen paraquat (25) trichlopyr (60) hexazinone (75) diflufenican (2.5), bromoxynil (25) propryzamide (50) MCPA (75) dichlorophen (43.2) ethofumesate (50) 200g/kg halauxifen-methyl 680g/l 2,4D ester

Code B S CO CO S CO B BY

Kerb 500F CO Maestro CO Mostox BY Nortron BY Paradigm CO Pasture-Kleen CO Xtra Preeglone diquat (11.5), paraquat (13.5) S Preside 800g/kg flumetsulam CO Prometryn 500SC prometryn (50) Pulsar bentazone (20) MCPB (20) B Puma S fenoxaprop-P-ethyl (6.9) BY Radiate picloram (15) clopyralid(22.5) CO Reglone diquat (20) S Rexade Go-Dri 50g/kg halauxifen CO + 150g/kg pyroxsulam Roundup glyphosate (54) MF UltraMax Sencor 70 DF metribuzin (70) BY Simatop simazine (50) O Starane Xtra 333g/l fluoxypyr CO Stomp Xtra pendimethalin (45.5) B Surrender benalkonium chloride (50) Y Tordon Brush- picloram (10), triclopyr (30), CO Killer aminopyralid (0.8) Tordon 2G picloram (2) CO Tordon 30g/l aminopyralid CO PastureBoss + 200g/l triclopyr Totril Super ioxynil (25) BY Trifluralin 480 trifluralin (48) Trimec mecoprop (60), MCPA (15), CC dicamba (1.87) Tropotox Plus MCPA (2.5), MCPB (37.5) BY Tyllanex terbuthylazine (50) ethylene glycol (5) Versatil clopyralid (30) CO PowerFlo Please check with retailer for current prices 197

197

Unit Size Retail Price 10 litre $999.13 5 litre $477.39 1 / 5 litre $303.47/$1,129.57 10 litre $546.96 5 litre $91.30 1 / 20 litre $108.70/ $503.48 10 kg $558.79 10 litre $407.83 5 / 20 litre 20 litre 5 litre 5 litre 500g 5 /20 litre

$399.13/$1,286.09 $277.39 $294.78 $160.87 $900.00 $143.48/$277.39

20 litre $546.96 256g / 500g $160.87 / $207.83 5 litre $207.82 10 litre $126.09 10 litre $799.13 1 / 5 litre $143.48 /$538.26 5 litre $468.70 2 kg $1,599.57 18 litre

$194.78

5 litre 20 litre 5 / 20 litre 10 litre 1 / 20 litre 1 litre /5 / 20 litre 5 / 20 kg 1/5/ 10 /20 litre 10 litre 20 litre 20 litre

$364.35 $207.82 $320.87 /$929.57 $329.57 $25.21 /$286.09 $134.78/$381.74/ $573.04 $134.78 /$381.74 $134.78 /$390.43 $564.35/$1007.83 $564.35 $242.61 $320.87

20 litre 20 litre 5 / 10 litre

$268.70 $242.61 $538.26/$929.57

Prices Exclude GST

Growing for a better tomorrow We bring our global presence, depth of knowledge and diverse resources so that farms and farmers flourish everywhere, moving our world forward.

Visit us at corteva.com Trademarks or Service Marks of Dow AgroSciences, DuPont or Pioneer and their affiliated companies or respective owners. ÂŠ2018 Corteva Agriscience.

ÂŽ,TM, SM

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2.9.4 Insecticides Refer to Section 2.9.2 for key to Company codes. 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 “N.Z. Agrichemical Manual” Trade Name Actellic Dust Actellic Altacor Ballistic Chlorpyrifos 500EC Cobalt Advanced

Code O O CO

Sparta

Active Ingredient (%) pirimiphos-methyl (20) pirimiphos-methyl (50) chlorantraniliprole (35) deltamethrin (2.75) chlorpyrifos (50) 300g/ltr chlorpyifos + 15.4 gm/ltr Lambda-cyalothrin terbufos (20) diazinon (80) diflubenzuron (24) 240g/l spinosad Boric acid(8) Sodium borate(5.6) 50g/l fenpyroximate diazinon (20) lambda-cyhalothrin (25) methomyl (20) 50g/l chlorpyrifos ec chlorpyrifos (75) taufluvalinate (24) methiocarb (2) Boric acid (5) acephate (94.5 – 99.1) pirimicarb (50) permethrin (13.5) potassium chlorate (12.7) 120g/kg spinetoram

Success Naturalyte Transform

120g/l spinosad 240g/l sulfoxaflor

CO CO

Counter 20 G Diazinon 800 EC Dimilin 2L Entrust Naturalyte Exterm-An-Ant Fenamite Miticide Gesapon 20G Karate Zeon Lannate Lorsban 50EC Lorsban 750WG Mavrik Aquaflo Mesurol Pro NO Ant Gel Orthene Pirimor Silo Smoke

2.9.5 Molluscicides Primehort: Trade Name Slug Out

N CO BY RA C CO CO BY S CO CO CO N BY AM S CO

Active Ingredient (%) metaldehyde (18)

Please check with retailer for current prices 199

Unit Size 10 kg 1 litre 540g 5 litre 1 litre 20 litre

15 kg $346.95 10 litre $242.61 500 ml $52.17 1 litre $1,077.39 100ml $13.99 1 litre $381.74 22 kg $416.52 1 litre $390.43 5 litre $294.78 5/20 litre $143.48/$355.65 3 kg $416.52 1 litre $160.87 25 kg $338.26 60g $10.43 1 kg $112.17 1 kg $78.25 31g / $49.99 / $69.56 100g 1 /5 $338.26/$1,390.43 20 litre $4,955.65 1/5 litre $265.22/$1,042.61 1/5 litre $381.74/$1,712.17

Code PH

199

Price $233.91 $100.00 $388.80 $233.91 $73.90 $799.13

Unit Size 10 kg

Prices Exclude GST

Price $78.00

2.9.6 Fungicides Refer to Section 2.9.2 for key to Company Codes. Trade Name Active Ingredient (%) Acanto picoxystrobliurin (25) Acrobat MZ dimethomorph (9) mancozeb (60) Aliette WG fosetyl-aluminium (80) Alto 100 SL cypronozole (10) Amistar 250 SC azoxystrobin (25) Cereous triadimenol (25) Curzate 600 g/l cyanoacetamide-oxime Folicur 430SC terbuconazole (43) Kocide cupric hydroxide (30) Monceren DS pencycuron (12.5) Monceren IM DS pencycuron (12.5) imazall (0.6) Octave prochloraz (46.2) Opus epoxiconazole (12.5) Ridomil Gold metalaxyl-M (4), mancozeb (64) MZWG Rovral Flo iprodione (25) Scala pyrimethanil (40) Score 250 EC difenoconazole (25), 2-pyrrolidinone, 1-methyl (12) Sportak EW prochloraz (45) Sumisclex 500SC Procymidane (50) Topas 200 EW penconazole (20) Topsin M-4A thiophanate methyl (40) Vitaflo 200 carboxin (20) thiram (20) Zorvec Enicade 100g/l oxathiapiprolin 2.9.7 Algaecides PGG Wrightson Ltd: Trough Tablets

Code CO CY BY N S BY CO BY CO BY BY BY B S

Unit Size Price 5 litre $520.87 10 kg $346.96 1 kg $103.48 5 litre $1,112.17 5/ $373.04 / 20 litre $1,312.17 5 litre $190.43 1 kg $169.57 5 litre $468.70 10 litre bag $346.96 1 kg $47.82 1 kg $52.17 1 kg $173.04 10 litre $364.35 5 kg $181.74

BY BY S

5 litre 10 litre 5 litre

$216.52 $407.82 $329.57

BY N S CO N CO

5 litre 1 litre 1 litre 5 litre 20 litre 5 litre

$190.43 $181.74 $155.65 $164.34 $781.74 $1,050.00

Copper & Zinc Sulphate

2.9.8 Rabbit / Rodent / Opossum Control Key Industries: Trade Name Pindone Rabbit Pellet Possum/Rats Pellet Rodent Blocks Contrac / Final Rodent Bait Ditrac Possum / Cat Traps: Timms Possum Trap/ Trapinator Kill Trap Leg-Hold trap standard steel jaw Possum Bait Stations Rabbit Bait Stations

Pack size 2 / 10 / 25kg 2 / 10 / 25kg 8kg 8.2kg 1 door / 2 doors Mini / Large Large

Please check with retailer for current prices 200

200

$21.73

Unit price $33.70 / $75 / $145 $36.75 / $85 / $153 $101.60 / $107.00 $85.00 $156.00 / $179.50 $57.50 / $42.50 $5.50 $16.00 / $16.95 $19.30 Prices Exclude GST

Bell-Booth Ltd: Pack Size Possum Control: Possum bait 10kg $72.00 Possum bait without bait station 3kg $35.60 Rodent Control: Rodent pellets 350g /3kg / 10kg $10.00 / $44.25 /$112.00 Rodent pellets plus bait feeder 350g $15.00 Rodent blocks 200g/500g /3kg/ 6.5kg/10kg $10.63/$15.00/$60.90/$122.50/$159.00 Mouse trap(pr)/mouse bait station $8.00 / $6.75 Treated grain - wheat 1.5kg / 4kg/10kg $35.90 /$82.50 /$199.50 Treated grain - barley 1.5kg / 3kg/10kg $35.90 /$65.20 /$199.50 Treated grain - peas 1.5kg / 4kg/10kg $35.90 /$82.50 /$199.50 PGG Wrightson Ltd: Trade Name Pindone Possum / Rat Pellets Pindone Rabit Pellets

Pack size 10kg 2 / 10kg

Unit price $120.87 $47.82 / $108.70

2.9.9 Bird Repellents Key Industries: Eaton 4 The Birds Repellent Gel 300g / 3.78l Birdscare tape 2.4cm x 150m Birdscare Balloon / scary cats Pigeon Magnet trap Pestoff treated wheat 1.5kg / 4kg Pestoff bird control paste 500g Alpha chloralose technical 1kg Bell-Booth Ltd: Pestoff Bird control paste

$12.80 / $55.50 $6.00 $8.00 / $13.00 $250.00 $45.00 / $105.00 $54.00 $580.00

500g

$43.80

PGG Wrightson Ltd: Mesurol SC methiocarb (50), phenolmethoxy methanol (0.1) BY 2.9.10 Bactericides PGG Wrightson Ltd: Key Streptomycin streptomycin (17)

2.9.11 Wetting, Spreading and Marking Agents Actiwett Trakka Red Lat-B Nu Film 17 Please check with retailer for current prices 201

1.2 kg

FF FF FF 201

5 litre 1 litre 5 litre 4 litre

3 litre $294.78

$181.74

$138.26 $65.21 $117.39 $155.65

Prices Exclude GST

Chengeta Crop Care: Fungicide / Wetters Omniwett

20 L $802.06

2.9.12 Growth Regulants PGG Wrightson Ltd: Cycocel chlomequat (75) Moddus250ME trinexapac-ethyl (25) Terpal mepiquat chloride (30.5) chlorethephon (15.5) 2.9.13 Adjuvants PGG Wrightson Ltd: McGregorâ&#x20AC;&#x2122;s Sprayoil Uptake Spraying Oil

B S B

200ml 5 / 20 litre

2.9.14 Soil Fumigants PGG Wrightson Ltd: Basamid Granules dazomet (99) 2.9.15 Penetrants PGG Wrightson Ltd: Boost Li-1000 Pulse (for Roundup herbicide) Slikka Penetrant 2.9.16 Root Forming Hormones Egmont Commercial Ltd: Liba 10,000 gammaindolylbutyric Primehort: Liba 10,000

gammaindolylbutyric

10 litre 5 litre 5 litre

20 kg

200 mls / 1 litre 200 mls / 1litre

Please check with retailer for current prices 202

202

$86.95 $668.70 $294.78

$6.08 $100.00 / $294.78

5 litre / 20 litre 5 litre 5 litre 5 litre

5L $169.63

$486.08

$181.74 / $468.70 $129.57 $190.43 $134.78

$25.00 / $107.00 $37.00 / $132.00

Prices Exclude GST

2.9.17 Spraying Costs - Aerial and Ground (i) 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 â&#x20AC;&#x201C; trees, buildings and hills. Canterbury: (helicopter) Pasture and crop spraying $35 to $85 / ha Brushweed spraying $100 to $350 / ha Marlborough: (note prices donâ&#x20AC;&#x2122;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 weeds Gorse Crop spraying at 100 l water / ha is approximately

$20 to $25 / ha $300 to $400 / ha $75.00 / ha

Hawkes Bay: Generally the cost works out at around $57.50 / 100 litres of water applied (ii) Ground spraying (crops) Rates vary depending on chemical used, application rate and crop being sprayed. Canterbury: Molloy Agriculture Ltd: Boom spraying - Pastoral $23 to $27 per ha Crop Spraying $18 to $23 per ha Liquid Fertilisers $18 to $22 per ha Specialist crops $25 per ha Process Potatoes $18 to $25 per ha Seed Potatoes $20 to $26 per ha

Please check with retailer for current prices 203

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Prices Exclude GST

2.10 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 Sheep and lambs Prime cattle Store cattle Prime pigs Store pigs Bobby calves Dairy cattle Deer

Vendor $0.55 $6.00 $5.00 $3.00 $1.65 $2.00 $6.00 $5.00

Purchaser $0.25 $2.00 $2.00 $1.50 $1.00 $1.00 $2.00 $2.00

Central and Lower North Island: Sale Feilding vendor / purchaser Masterton Yards Sheep $0.15 for both $0.30 both Cattle $2.50 / $3.00 $3.00 both Calves $3.00 / $2.50 Pigs Cattle and calves both have NAIT transfer fees of 75c /head, payable by both vendor and purchaser. 2.10.1 Commissions on Stock and Plant Sold Through a Stock and Station Agent Canterbury: Sale Yards Clearing Sales Percent Commission Sheep 6% Sheep 6% Prime/Store Cattle 6% Store Cattle 6% Vealers 6% Dairy Cows 6% Bulls Stud 6% Horses 6% Dairy Cattle 6% Stud Sheep/Cattle 6% Pigs 6% Pigs 6% Deer 6% Dogs 6% Goats 6% Plant and Machinery 6% to 10% Bobby Calves 6% Deer 6% Stud Deer 6% 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. Please check with retailer for current prices

204

Prices Exclude GST

The schedule below outlines the maximum rates which will apply to auction and private sales. Central North Island: Sale Yards Percent Commission Sheep 6% Cattle 6% Bobby Calves 6% Bulls Stud 9% Deer - weaners 6% Deer - breeding 6% Deer - stud 9% Sundry Plant and Machinery Auctions 10 - 12.5% 2.10.2 Wool Selling Charges Brokers’ Charges 15.0 to 25.0 cents per kg Greasy Wool Testing – $83.10 to $85.85 Yield, Mean Fibre Diameter and Colour per test per lot 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. 2.10.3 Wool Classing Charges Per Hour $37.80 - $44.10 $43.57 - $59.85

Cross Bred Mid Micron and Fine Wool

Per Head 28c – 44c 44c – 73c

2.10.4 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 22 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.

Please check with retailer for current prices 205

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Prices Exclude GST

2.10.5 Velvet Charges The PGG Wrightson Velvet charges for collection, grading, storage and sale costs are: A handling fee of $5.00 per kg & commission of 3.5%. See also Section 2.10.7 for Deer Industry New Zealand levies. 2.10.6 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 (previously Animal Health Board) levy applied from 1 February 2004. Current Levies per head: Bovine - TB Cattle Levy (TBfree New Zealand Ltd) Beef + Lamb NZ Ltd TOTAL LEVIES

Adult cattle $11.50 $4.40 $15.90

Levies per head: Lambs Sheep Goats Pigs Beef + Lamb NZ Ltd $0.60 $0.60 NZ Pork Industry Board $3.38 TOTAL LEVIES $0.60 $0.60 $3.38 Note: 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 (for TBfree New Zealand Ltd) 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. NAIT Levies National Animal Identification and Tracing (NAIT) Scheme As of 1st March 2014 these levies apply ď&#x201A;ˇ The cattle tag levy for 2018 will be $0.50 (excl GST) per tag payable at point of purchase as part of the overall cost of the tag. Please check with retailer for current prices 206

206

Prices Exclude GST

 The slaughter levy for 2018 will be $0.50 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. Pork Industry Council Administration and Pork Marketing Stabilisation Levies See previous page and also Section 1.8.1 Deer Industry New Zealand Levies Levies effective from 1 October 2017 – 30 September 2018: Velvet (per kg) Venison (per kg) Fallow Other Fallow Other Deer Industry NZ $0.40 $2.80 $0.070 $0.170 TBfree $0.45 $0.45 $0.050 $0.050 NAIT $0.00 $0.00 $0.0055 $0.0055 Total $0.85 $3.25 $0.1255 $0.2255 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. 2.10.7 Dairy Company Shares All farmers who wish to supply milk to a co-operative dairy company need to become a Supplying Shareholder. For Fonterra and Westland suppliers this means purchase of shares in the company before milk can be sold, on the basis of one share per kg milk solids supplied. Fonterra shares are now tradable between farmers in the TAF scheme and Units of the Fonterra Shareholder Fund are publicly listed on the NZ stock exchange. In July 2018 they were trading at $5.18. Westland has six classes of shares ranging in price from 70c to $1.50. All have the same rights attached. 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. 2.10.8 Herbage Seed Levy Please check with retailer for current prices 207

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price from 70c to $1.50. All have the same rights attached. 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. 2.10.8 Herbage Seed Levy The Commodity Levies (Non-Proprietary and Uncertified Herbage Seeds) Order 2014 gives provision for an annually adjusted variable rate on Non-Proprietary and Uncertified check with retailerAll forgrowers currentof prices 207 must Pricespay Exclude HerbagePlease Seed (NPC) varieties. NPC varieties a levy GST 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. Cultivar NPC levies FAR Rate Red Clover Grasslands Pawera 1.60% 0.9% Uncertified Red 0.30% 0.9% White Clover Grasslands Huia 0.50% 0.9% Uncertified White Clover 0.30% 0.8% All Proprietary Ryegrass Grasslands Manawa 1.60% 0.9% Grasslands Moata 1.60% 0.9% Grasslands Nui 0.50% 0.9% Grasslands Ruanui 1.60% 0.9% Grasslands Tama 1.60% 0.9% Uncertified Ryegrass 0.30% 0.9% 2.10.9 Arable Crop Growers Levies United Wheatgrowers (NZ) Ltd: Wheat insurance levy - $4.10 per tonne, on wheat only. (Valid from 1st February 2018 to 1st February 2019). Foundation for Arable Research Pursuant to section 4 of the Commodity Levies (Arable crops) Order 2012 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 2018 to 31 December 2018 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 2012 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 2018 to 31 December 2018 will be $10.00 per ha harvested.

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Maize Pursuant to section 4 of the Commodity Levies (Maize) Order 2012, 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 2018 to June 2019 to be: Maize â&#x20AC;&#x201C; $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). 2.10.10 Seed Royalties Wheat seed for grain production (feed or milling) usually carries an end point royalty which varies between $3.00- $5.50 per tonne depending on the cultivars. 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.

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2.10.11 Horticultural Levies (i) Berryfruit Blackcurrants: This is levied at 3.5 cents per kg on all blackcurrants produced in New Zealand, under the Commodity Levies (Blackcurrants) Order 2013. 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. (ii) Citrus The New Zealand Citrus Growers Inc. imposes a compulsory levy on all citrus fruit. The levy rates for the year 01 April 2018 to 31 March 2019 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 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. (iii) Summerfruit Levy on: Local Market Export Market Nectarines 1.5% 1.5% Apricots 1.5% 1.5% Peaches 1.5% 1.5% Plums 1.5% 1.5% Cherries 0.75% 0.75% 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. Annual registration fees for all Please check with retailer for current prices

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participants with Summerfruit NZ are listed for the 2017/18 season, along with the applicable fees for all export programmes. PROGRAMME

FEES

EXPORTERS Annual Registration

All markets licence Pacific only licence - Deposit - First shipment - Share of total cost - Annual Fee - Annual fee - Inspector - Annual fee - Inspector

Australian Offshore Preshipment Inspection Western Australia Korea Japan EXEMPTIONS Annual registration

PACKHOUSES Annual Registration Western Australia Japan Korea Japan Tape Korea Tape GROWERS Annual Registration

AMOUNT (Exclusive of GST) $2,050 $400 $500 $1,500 Apportioned by use $435 $435 Share of total cost $1,500 Share of total cost

- <100kgs - 100-300kgs - 300-500kgs - 500-1000kgs - 1000kgs + -

No fee $130 $285 $445 $565

Annual fee Annual fee Annual fee Annual fee - per roll - per roll

$180 $330 $330 $330 $13.50 $13.50

Paid between 1-30 September $185 - Paid between 1-31 October $225 Western Australia - Annual fee $165 Japan - Annual fee $165 No Fees: There are no fees for any participant in the following programmes: Conditions for the export of apricots and cherries to Thailand Industry Management Protocol for the control of LBAM to USA Growers pay no fee to register for Korea. Fees are: reviewed and adjusted each year non-refundable if exports do not occur. EXCEPTION: should Summerfruit NZ cancel a programme prior to fruit being shipped, any registration fees for that programme will be reimbursed.

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(iv) Other Fruits

Local market grower

Export market grower 3.0% at first point of sale 7c per kg 1.25c per kg

Feijoas 3.0% at first point of sale Persimmons Nashi Pears (Nashi NZ levy) 1.25c per kg Pipfruit NZ has a separate levy for Nashi Pears of 1.5c per kg. Pipfruit NZ also levies apples and pears at 1.25c per kg. Apples for juicing are excluded. Note that Nashi growers will be becoming part of NZ Apples and Pears and so their specific levy will disappear. Avocado Industry Council: Export Commodity Levy 15c per export tray, Promotions Commodity Levy of 20c per export tray. A total levy 35c per tray, with a maximum of 50c per tray. For fresh New Zealand market avocados, a maximum of 3% of the value at the first point of sale. (v) 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. (vi) Vegetables Below are the rates under the commodity levy: Fresh vegetables (domestic sector) Fresh vegetables (export sector) Domestic onions Export onions Process onions Process vegetables Potatoes Fresh tomatoes Process tomatoes Asparagus Export squash

0.44% 0.34% 0.14% 0.14% 0.14% 0.64% 0.14% 0.49% 0.14% 0.14% 0.14%

2.10.12 Forest Growers Levy The Forest Growers Levy came into force on 1 January 2014. It is for logs harvested from plantation forests and owners are responsible for payments. Payment is 27c per tonne for the year ending 31 Dec 2018, for harvested wood material. Firewood for domestic, noncommercial use is excluded.

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2.11 SUNDRY CROPPING AND HORTICULTURAL EXPENSES 2.11.1 Grain Drying Charges Wilsons Bulk Transport Ltd: Wheat/Barley/Oats: Drying % Moisture 0 to 15.0% 15.1% to 16.5% 16.6. % to 18.0% 18.1% + Pricing may change due to fluctuating fuel prices

Price / tonne $30.00 $35.00 $40.00 $45.00+

2.11.2 Consolidated Dressing and Store Handling Charges These rates include receiving, delivering, sampling, weighing, dressing, brushing of sacks and disposal of offal (prices based on machine dressed weight). Ryegrasses Perennial and Italian $0.21 to $0.22 / kg Cocksfoot $0.55 / kg Clovers White, Red and Alsike $0.51 / kg Grass seed (Fine) Browntop, Dogstail and Timothy $0.55 / kg Fescue $0.26 / kg Field dressed ryegrasses, clovers and timothy usually dress out approximately 15% to 20% offal and field dressed cocksfoot from 25% to 35% offal. Brassica Chemical treating

$0.32 / kg $65.00 / t plus materials

Machine Dressing (prices based on field dressed weight) Wheat and Ryecorn $77.00 / t Barley $77.00 / t Field Peas and Lupins $90.00 / t Garden Peas, Beans and Lentils $95.00 / t Oats (dressing and clipping) $77.00 / t Sampling is charged at $47.00 per line and dumping of disposable offal is $25.00 / t. Health certificates cost $47.00 per line. Storage Charges Wilsons Bulk Transport Ltd: Standard storage charges are $0.10 / t / day. Individual silage storage lease P.O.A.

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2.11.3 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) $20 Developing and analysis of ELISA sheets $32 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) $7 TWT Test Weight $5 Moisture $5 Moisture and Test Weight ordered tog. (generated by same machine) $7 Screenings $7 Protein $12 Falling Number $14 Protein & Falling Number ordered tog. (both tests on 1 ground sample) $17 Vigour $40 Grain Bulk Search $20 Price per sample CPT Wheat $36.00 CPT Barley $31.00

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2.11.4 Crates and Packaging ViscountFCC: F75, F47, F35, T35, D47, T47, F28

$11 deposit plus $1.14 hire fee + FRC $0.096 Plastic Bin Folding 1200 x 1000 x 850mm $250 deposit plus $15.75 hire fee BFG 9 per lift 700L capacity + FRC $1.33 Pallet 18 per lift 1200 x 1000mm $25 deposit plus $2.86 hire fee + FRC $.24 FRC = Freight Recovery Charge = 8.45% Punnets Flight Plastics Ltd: Punnets T2189 Punnets T2346

152 x 108 x 63mm 6 cavity punnet

$123.59 per thousand $149.80 per thousand

Kiwifruit Tray Component Prices â&#x20AC;&#x201C; cost per tray Zespri International Ltd.: Pack Pallet Pallet Cap & dust cover Polyliner Straps Seals EAN label Glue and assembly Corner boards

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$0.563 $0.089 $0.016 $0.021 $0.003 $0.001 $0.002 $0.026 $0.015

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2.11.5 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. Hawkes Bay Nelson Source: MPI 2015 budget.

$ per TCE gross $2.80 $2.86

$ per TCE export $4.47 $4.11

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

$4.65 per TE $6.27 per crate

Kiwifruit (Note: These are average costs, which vary by pack type.) Seeka Kiwifruit Industries: Pack and packaging Hayward CK (Green) incl reject charges $1.38 (10% reject) per TE GA (new Gold) incl reject charges $2.01 (5% reject) per TE NB: Gold has been phased out and replaced by GA 2.11.6 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 â&#x20AC;&#x201C; up to $28.00 per tonne per calendar month or part thereof. Fish â&#x20AC;&#x201C; 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.

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2.11.7 Safety Equipment Croplands Equipment Ltd: (Freight charges may apply) Firefighters:Miniblaze-2.5hp. 1” discharge 5mx20mm hose. 50-150L/min Tray Mount, 500 L 30mx20mm hose, 3m suction kit & filter 1,100 L trailed firefighter galv chassis, 30mx20mm hose, adjustable nozzle, 3m suction hose kit, ideal farm use Levin Sawmakers Ltd: Arborist chainsaw trousers Chainsaw trousers Chainsaw chaps Protector safety hard hat with peltor visor & Class 5+ muffs Protector safety vented hard hat Gloves - cotton lattice knitted glove with PVC stripes Safety - Go-Specs II Camo clear or grey Glasses - Safe Eyes - Forestry mesh goggles range Gumboot Forestry Chainsaw – Unspiked / Spiked

$682.50 $4,495.00 $7,795.00

From $273.91 - $320.00 $166.96 $190.43 $95.65 $17.65 $4.95 $22.00 $33.50 $158.26 / $199.96

Trade Tested: (NB this is an online store. Always check availability & current pricing) Protector Earmuff & Visor Class 5 $68.70 Red band Gumboots women/youth $60.00 Skellerup Perth Gumboots $82.60 N.Z. Safety Limited: - Fire Extinguisher 1kg Fire extinguishers Dry Powder

$23.74

N.Z. Safety Limited: Overalls - Cotton range - Polycotton range Waterproof clothing, heavy duty - Jacket - Trousers - Rainset Tyvek coverall Ear Muffs Gumboots – Bata and Skellerup range Dust masks Pack 5 / Moldex x 20 / Airwave x 10 - Spray kits for pesticides / paint etc - Portable powered air units no mask/filters / CF22 Filter - Respirator kit – organic vapours / Spraying kit - Promask black - Armadillo Face Shield Hand Protection – Chemi-pro/Nitrile/Neoprene/Alphatec Eye Protection – goggles Please check with retailer for current prices 217

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$37.39 to $48.58 $44.88 to $51.16 $43.33 $38.81 $62.10 $7.54 $20.01 / $31.83 $31.00 to $155.50 $7.36 / $33.05 / $47.64 $63.16 / $318.93 $2,098.79 / $33.07 $54.61 / $73.32 $314.32 $29.68 $2.34/$4.54/$6.94/$9.05 $8.99 to $24.42 Prices Exclude GST

Leedsafe: Fire extinguishers (40017, 40077, 40517) 1 / 2.5 / 6.0 kg Robuck Safety Spectacle (40499) Robuck Blackhawk Safety Boot (10120) Robuck Polycotton Overall (30094) Leather riggers glove (50012) 3M 1426 earmuff (40822) Safety vest (40019) UniSafe hard hat (40001WH) Leedsafe basic first aid kit (40450) 3M Respirator starter kit (40152) Please note that these prices are available online only Head/Helmet lamps Jenquip Ltd: (prices include NZ delivery). Headlamp 1800L Head/Helmetlamp 1800L 2.11.8 Protection (crop) Electro-tek Engineering Ltd: Scarecrow Gun Zon Mark 4 Zon EL08 Electronic Tripod to extend range

$23.99 / $84.99/ $137.99 $5.69 $80.35 $56.60 $8.99 $14.99 $14.90 $13.99 $16.99 $107.99

$57.35 $60.87

- Gun only / - Timer only - Multi shot

$597.00 / $159.00 $942.00 From $183.00

Cosio Industries Ltd: Micronet Crop and frost protection, 2m / 4m x 50m roll, white $142.63 / $285.27 2 Frostguard frost protection fabric 20g per m 2m x1000m $369.25 30g per m2 2m x100m /1000m $81.51 / $471.43 Biobird 30gm2 4m x 50m $105.56 Canopy netting - bird protection 5m x 100m / 10m x 100m $336.62 / $667.54 Insect Screen 900mm x 30m fibreglass/aluminium $73.90 / $130.41 Frost Protection New Zealand Frost Fans Ltd: FrostBoss Frost Fans Powered by John Price incl orchard mapping, engine & cabinet, concrete Deere or Perkins foundations, tower, gear boxes, blades, installation of complete engines frost fan, client training, backup service / support FrostBoss C49 frost fan Auto start Approx $62,500.00 FrostBoss C59 frost fan Approx $67,500.00 Auto start Price does not include any local building or resource consents.

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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 Size Ripstop PVC 6m x 6m $612.00 7.4m x 7.4m $930.92 6m x 10m $1020.00  Manufactured in 700gsm Ripstop PVC.  The PVC also comes with a 4 year UV warranty (Check warranties of other products as some only offer 1 year which may be a shorter life span than you anticipate).  Our PVC is Fire retardant (AS1530.2) and self extinguishing.  Constructed using a combination of high frequency and hot air welding, eliminating the need for any stitching and therefore greatly extending the lifespan of the tarp.  Heavily reinforced with 2500kg weldable webbing around the perimeter.  12mm stainless steel eyelet at 1m centres around the perimeter  2m long 8mm rope attached to each stainless steel eyelet.  Colours - White, Black, Blue, Green, Yellow, Grey, Beige or Red. Size Pextra 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  Our PE material comes with a 3 year UV warranty (Check warranties of other products as some only offer 1 year which may be a shorter life span than you anticipate).  NZ made, using the latest technology in hot air welding tools, resulting in a far superior product  Heavily reinforced at 1m centres around the perimeter.  12mm stainless steel eyelet punched into each reinforcement.  2m long 8mm rope attached to each stainless steel eyelet.  Colours - White, Blue, Green or Olive. Max size in Pextra is 100m x 25m. Haystack cover 50m x 20m in Pextra is $12,221.80 PGG Wrightson Ltd:: Silage covers: 18m x 50m (heavy B/W) 18m x 300m (heavy B/W) 18m x 300m (B/W 150um) Balewrap plastic: 750mm x 1,500m x 25um dark gr 500mm x 1,800m green Please check with retailer for current prices

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$738.26 $4,807.82 $4,260.00 $146.96 $155.65 219

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Agpac Ltd: Agtuff 12m x 300m / 18m x 300m (Bulk Rolls) Silage tape 96mm Balewrap plastic: 750mm x 1500m varieties TrioPlus 2km to 2.6km TrioPlus 1.9km 21um Hay Tarpaulin varying sizes 4.57m x 14.63m to 16.76m x 18.28m Hay Tarp repair tape (see also Section 2.20.21) Silage Inoculant Pioneer: Pioneer pasture specific silage inoculant: Pioneer 1127 250t bottle Pioneer maize specific silage inoculant: Pioneer 11C33 250t bottle Pioneer 1132 250t bottle Pioneer multi crop silage inoculant: Pioneer 1174 250t bottle PGG Wrightson Ltd: Maize silage inoculant 11C33

$ / tonne $3.77 $5.86 $4.60 $4.73 $2.62

50 g / 250g

$2,670.00 / $4,441.00 $10.00 $180.00 to 187.00 $207.50 to $277.00 $218.00 $610.00 to $2,592.00 $55.00

250 tonne bottle $942.71 $1,465.96 $1,149.71 $1,183.06 $655.50 $303.48 / $1,503.48

2.11.9 Pollination Also see Section 1.14.5 Pollination and 1.14.6 Live Bees Hive Hire One Hawkes Bay company charges the following: Stone and pipfruit: Kiwifruit:

$440 to $510 per pallet of 4 hives $900 to $1,250 per pallet of 4 hives

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

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$ per hive 2015/16 $60 to $150

Pipfruit, stonefruit, berries Kiwifruit: Hawkes Bay $165 to $300 Auckland $150 to $400 Bay of Plenty $145 to $400 Nelson $178 to $190 Canola & small seeds (carrots) $130 to $200 Source: MPI / AsureQuality 2017 Apiculture Monitoring Report.

2016/17 $70 to $180 $200 to $300 $150 to $400 $150 to $400 $130 to $190 $200 to $250

Hive Purchase 5 frame nucleus $170.00 These contain 5 frames of bees and a queen. 1 frame of honey. NB. The box and lid is returned. Single brood box hives. $320.00 These do not have a lid or floor. Only two mats – one top and bottom to retain bees, 9 frames within, bees and queen. Two frames of honey included. Note these are South Is prices. Returns from seed clover crops are now almost non-existent due to the constant genetic changes within the various cultivars. As such many beekeepers are charging for the pollination of these crops as honey is no longer a viable income from these plants. Bumble Bees Zonda Beneficials: per hive (freight not included). Serves up to 1,500 square metres. Home garden hive $70 Medium hive $120.75 Large hive $131.25 Outdoor large $115 2.11.10 Weighbridge Charges Taylor Coal Ltd: Public weighbridge  Single weigh (truck or trailer): $7.50 + Gst  Double weigh (Truck & Trailer): $15.00 + Gst Parkside Quarries Ltd: (Oamaru Stone) Certified weighbridge available at $7.50 per weigh for outside products eg logs, barley etc.

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2.11.11 TracMap:

GPS Units

TM5Basic300

Basic farmer system, suited to fertilizer spreading and tractor work. 250cm accuracy.

$3,495

TM5Basic200

Basic unit with 30cm accuracy for spraying.

$4,495

Add a cellular modem to either of these models for automatic storage of application maps to TracMap Online

$500

TM5Standard300 Ideal for dairy farmers, as also allows farm map to display on screen. 250cm accuracy.

$4,495

TM5Standard200 Standard unit with 30cm accuracy for fertiliser spreading, spraying, and break fencing. Coverage maps transferred to TracLink for permanent storage

$5,995

Add a cellular modem to either of these models for transfer and permanent storage of coverage maps to TracMap Online

$500

Also includes the ability to use for task management by creating job orders on TracMap Online (cloud system) for automatic transfer to vehicles, and tracking job progress.

$5,995

TM5ProC300

Also ideal for accurate shifting of K-Line and other portable sprinkler systems. 250cm accuracy. TM5ProC200

The ProC with 30cm accuracy for spraying

Bike Kit

Mounting system for Quad bikes

TMi28

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

TracMap Online

TracMap Online mapping and job management annual fee

$600

Travelling Irrigator Monitoring

TracMap Online annual fee for Effluent Irrigator mapping

$600

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$6,995 $650

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2.12 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. 2.12.1 Total Repairs and Maintenance per Farm/Orchard Forecast for 2017/2018 (per su) Sheep and Beef North Island Hard Hill Country East Coast $8.87 North Island Hill Country Taranaki - Manawatu $9.44 North Island Intensive Finishing Northland, Waikato, BOP $12.91 South Island High Country $6.28 South Island Hill Country $7.66 South Is Canterbury/Marlborough Breeding and Finishing $9.33 South Island Intensive Finishing $9.90 South Island Mixed Finishing $15.50 National $9.04 (per cow) (per kg MS) Dairy 2016/2017 National $113 $0.29 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 (per ha) Arable 2017 data Canterbury $174 (per ha) Horticulture Kiwifruit 2014 data $1,600 Hawkes Bay Pipfruit 2015 budget $1,250 Nelson Pipfruit 2015 budget $1,375 (per producing ha) Viticulture Marlborough $777 Source: MPI; Beef+Lamb NZ Economic Service; DairyNZ Economic Survey 2016/2017; FAR.

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2.12.2 Repairs and Maintenance - 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 and 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

Farm Vehicles Where no other figures are available use 100% of cost over the economic life of the vehicle. See Section 2.13.2 for tractor examples.

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2.13 VEHICLE EXPENSES 2.13.1 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 2017/2018 (per su) Sheep and Beef North Island Hard Hill Country East Coast $2.01 North Island Hill Country Taranaki - Manawatu $2.55 North Island Intensive Finishing Northland, Waikato, BOP $3.63 South Island High Country $2.66 South Island Hill Country $2.90 South Is Canterbury/Marlborough Breeding and Finishing $3.74 South Island Intensive Finishing $4.21 South Island Mixed Finishing $9.20 National $3.30 Dairy (Includes fuel) 2016/2017 (per cow) (per kg MS) National $71 $0.18 Deer 2014 data but as often farmed with Sheep and Beef, it could be (per su) extrapolated from Sheep and Beef recent data above North Island $2.21 South Island $2.91 (per ha) Arable 2017 data Canterbury $178 (per ha) Horticulture Kiwifruit (including fuel) 2014 data $1,700 Hawkes Bay Pipfruit 2015 budget $400 Nelson Pipfruit 2015 budget $600 (per producing ha) Viticulture $90 Marlborough Source: MPI; Beef+Lamb NZ Economic Service; DairyNZ Economic Survey 2016/2017; FAR. For details see individual items in this section. See also Section 2.12.2 for estimates of the repairs and maintenance component of expenditure on motor vehicles.

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2.13.2 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 15 Ploughing 21 Heavy cultivation 13 Light cultivation 8 Rotary cultivation 13 Fertiliser distribution 3 Grain drilling 4 Rolling 4 Mowing, tedding, baling 3 Forage harvesting 15 Spraying 1 Source: "Choosing and Using Farm Machines", B. Whitney, 1988. Note these data should be compared with â&#x20AC;&#x201C; eg 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. (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 kW Minimum Cultivation Normal Cultivation (0.2 l per kW hr) (0.3 l per kW hr) 16 11.5 2.3 l / hr 3.5 l / hr 30 22.0 4.4 l / hr 6.6 l / hr 40 30.0 6.0 l / hr 9.0 l / hr 50 37.0 7.4 l / hr 11.1 l / hr 64 48.0 9.6 l / hr 14.4 l / hr 75 55.7 11.1 l / hr 16.7 l / hr 80 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

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Total Tractor Running Costs - Examples As of 1 July 2015, fast tractor owners now have a choice of two licences:  a licence conditional on the tractor’s on-road speed not exceeding 40 km/h  a licence not limited to speed. This licence requires current WOFs and the annual licence fee is $479.47. For these examples below we are assuming the first option, of speed not exceeding 40km/hr. (i) 78.3 kW (105 HP) 4WD Tractor Replaced after 3,500 hours (6 years) Initial Cost $94,129; Resale price $51,770 Running: Average 585 hours per year Fixed costs per annum: Opportunity cost $94,129 at 3% (Real) $2,823.87 Replacement cost $94,129 - $51,770 $42,359 x sinking fund factor (3% for 6 years) 0.1545975 $6,548.60 Annual licensing fee $57.42 Insurance (full replacement) est $1,451.00 $10,880.89 Total fixed cost per hour (585 hours/year) $18.60 Variable costs per hour: Fuel usage – 15.7 litres at $1.50 per litre $23.55 - based on minimum cultivation conditions (0.2 l/kW hour) Oil and filters 15% of fuel cost $3.53 Repairs and maintenance 100% of purchase price over ‘economic life’ of tractor (10,000 hrs) $9.41 Total variable costs per hour excluding labour $36.49 Total cost (fixed plus variable) per hour $55.09

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(ii) 130.5 kW (175 HP) 4WD Tractor Replaced after 4,000 hours (6 years) Initial Cost $140,000; Resale price $77,000 Running: Average 670 hours per year Fixed costs per annum: Opportunity cost $140,000 at 3% (Real) $4,200.00 Replacement Cost ($140,000 - $77,000) $63,000 x Sinking fund factor (3% for 6 years) 0.1545975 $9,739.64 Annual licensing fee $57.42 Insurance (full replacement) estimate $2,158.41 $16,155.47 Total fixed cost per hour assuming 670 hours per year $24.11 Variable costs per hour: Fuel usage – 25.4 litres at $1.50 per litre $38.10 - based on minimum cultivation conditions (0.2 l/kW hour) Oils and filters 15% of fuel cost $5.72 Repairs and maintenance 100% of purchase price over ‘economic life’ of tractor (10,000 hrs) $14.00 Total variable cost per hour excluding labour $57.82 Total cost (fixed plus variable) per hour $81.93 (iii) 182.7 kW (245 HP) 4WD Tractor Replaced after 4,500 hrs (6 years) Initial Cost $280,675; Resale price $154,371 Running: Average 750 hours per year Fixed costs per annum: Opportunity cost $280,675 at 3% (Real) $8,420.25 Replacement cost ($280,675 - $154,371) $126,304 x Sinking fund factor (3% for 6 years) $19,526.28 0.1545975 Annual licensing fee $57.42 Insurance (full replacement) estimate $4,327.22 $32,331.17 Total fixed cost/hour assuming 750 hours per year $43.11 Variable costs per hour: Fuel usage – 31.3 litres at $1.50 per litre $46.95 - based on minimum cultivation conditions (0.2 l/kW hour) Oil and filters 15% of fuel cost $7.04 Repairs and maintenance 100% of purchase price over ‘economic life’ of tractor (10,000 hrs) $28.07 Total variable cost per hour excluding labour $82.06 Total cost (fixed plus variable) per hour $125.17

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2.13.3 Car Operating Costs Petrol-driven vehicles estimated on 14,000km per year, first five Fluctuating fuel prices have minimal effect on overall costs. These are GST incl. Engine Capacity Up to 1,5011,500cc 2,000cc RRP < RRP < $41,000 $51,000 Avg value of vehicle surveyed $27,551 $37,976 Fixed Costs Average value at start of third year Annual relicensing Insurance - Comprehensive, No Claim Warrant of Fitness annually for the first six years Total Outlay Interest on outlay Capital Cost (Outlay + Interest) Depreciation at third year Depreciation Value Total Fixed Costs Fixed Costs per Day

years of ownership. 2,001 to 3,500cc RRP < $73,000 $52,405

above 3,501cc RRP < $115,000 $72,555

$18,358 $86 $998 $57

$26,171 $86 $1,121 $57

$34,694 $86 $1,163 $57

$47,850 $86 $1,383 $57

$19,500 $630 $20,129 $3,121 $15,237 $4,892 $13

$22,436 $886 $28,322 $3,563 $22,609 $5,713 $16

$35,999 $1,163 $37,162 $4,757 $29,936 $7,226 $20

$49,376 $1,595 $50,971 $7,015 $40,835 $10,136 $28

Flexible Costs Petrol - Litres used per 100km 6.07 7.91 Litres used over 14,000km 849.3 1,108 Cost of fuel annually, $2.05/L $1,741.07 $2,271.40 Cost of oil $88.67 $88.67 Tyres annual cost $315.53 $421.40 Repairs and Maintenance $555.16 $621.32 Total Running Costs $2,700.42 $3,402.79 Running Cost / km 19.3c 24.3c Fixed Costs + Flexible Costs $7,592.34 $9,116.05 Cost cents per km 54 65 Previous Year 52 63 % difference over last year 4.3% 3.3% 4.2% Overall costs have changed by Source: Automobile Association 2018 report

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9.26 1,296.8 $2,658.44 $88.67 $441.18 $630.07 $3,818.35 27.3c $11,044.16 79 74 6.61%

11.43 1,600 $3,280.00 $88.67 $562.40 $749.47 $4,680.54 33.4c $14,816.21 106 103 2.75%

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Diesel Running and Operating Costs. Figures based on 14,000km per year for the first five years of ownership. GST incl Engine Capacity Up to 1501 to 2,001 to 3,001 + 1500cc 2,000cc 3,000cc cc RRP < RRP< RRP < RRP < $35,000 $60,000 $67,000 $125,000 Average value of vehicle $27,270 $45,615 $59,510 $85,688 surveyed Fixed Costs Avg value at start of 3rd yr $17,000 Annual relicensing $155 Insurance (Comp, no claim) $930 WOF annually first 6 years $57 Total Outlay $18,142 Interest on outlay $586 Capital Cost (Outlay + Interest $18,728 Depreciation at 3rd year $2,890 Depreciation Value $14,110 Total Fixed Costs $4,618 Fixed costs per day $12.65 Flexible Running Costs Diesel litres used per 100km 4.55 Litres used over 14,000km 637 Cost of fuel annually at $1.27/L $853.58 Road User Charges $868.00 Cost of oil $116.67 Tyres cost per year $304.50 Repairs & Maintenance $646.04 Total Running Costs $2,788.79 Running Cost per km 19.9c Fixed Cost + Running Cost $7,406.53 Cost cents per km 53 Previous year 52 Percent difference over last 1.7% year Overall costs have changed by 4.3% Source: Automobile Association 2018 report

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$29,157 $155 $1,194 $57 $30,626 $989 $31,615 $4,375 $24,845 $6,770 $18.55

$39,157 $155 $1,266 $57 $40,635 $1,313 $41,948 $4,539 $34,618 $7,329 $20.08

$66,600 $155 $1,588 $57 $68,400 $2,209 $70,609 $5,788 $60,812 $9,797 $26.84

5.60 784 $1,050.56 $868.00 $116.67 $467.66 $662.40 $3,165.29 22.6c $9,934.81 71 68 4.4%

8.21 1,150 $1,541.00 $868.00 $116.67 $545.70 $823.67 $3,895.04 27.8c $11,224.19 80 76 5.49%

10.57 1,479.3 $1,982.26 $868.00 $116.67 $591.50 $1,148.90 $4,707.33 33.6c $14,503.89 104 98 5.71%

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Petrol-Hybrid Car Running Costs Hybrid run vehicles estimated on 14,000km per year, first five years of ownership. These are GST incl. Category Petrol hybrid Engine Size 1501cc – 2501cc Recommended Retail Price $38,000 - $100,000 Average Value Vehicle Surveyed $53,212.00 Fixed Costs Average value at start of third year $30,983 Annual Relicensing $86.00 Insurance – Comprehensive, No Claim $1,236.00 Warrant of Fitness for first six years $57.00 Total Outlay $32,362.00 Interest on Outlay $1,045.00 Capital Cost (outlay + interest) $33,408.00 Depreciation at third year $5,387.00 Depreciation Value $25,596 Total Fixed Costs $7,811.00 Fixed Costs per Day $21.40 Flexible Costs Petrol – Litres used per 100km 5.48 Litres used over 14,000km 767.2 Cost of fuel annually at $2.05 per litre $1,572.76 Cost of oil $84.00 Tyres cost per year $319.55 Repairs and Maintenance $589.07 Total Running Costs $2,565.38 Running Cost per Kilometre 18.3 Operating Costs (fixed cost + flexible cost) $10,376.67 Operating Costs (cents per km) 74 Previous Year 73 Percentage difference over last year 1.5% Source: Automobile Association 2018 report

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Electric Car Running Cost Electric vehicles estimated on 14,000km per year, first five years of ownership. These are GST incl. Category Electric vehicle Engine size 65 kW â&#x20AC;&#x201C; 125kW Recommended retail price < $75,000 Average value vehicle surveyed $62,968.00 Fixed Costs Average value at start of third year $42,235 Annual Relicensing $104.00 Insurance â&#x20AC;&#x201C; Comprehensive, No Claim $1,367.00 Warrant of Fitness for first six years $57.00 Total Outlay $43,762.00 Interest on Outlay $1,414.00 Captital Cost (outlay + interest) $45,176.00 Depreciation at third year $6,481.00 Depreciation Value $35,753 Total Fixed Costs $9,422.00 Fixed Costs per Day $25.81 Flexible Costs kW per 100km 17.40 kWh over 14,000km 2,436 Power cost at $0.22 per litre $535.92 Cost of consumables $70.00 Tyres cost per year $335.16 Repairs and Maintenance $297.07 Total Running Costs $1,238.15 Running Cost per Kilometre 8.8 Operating Costs (fixed cost + flexible cost) $10,660.47 Operating Costs (cents per km) 76 Previous Year 81 Percentage difference over last year -6.4% Source: Automobile Association 2018 report

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2.13.4 Fuel, Oil and Grease Petrol â&#x20AC;&#x201C; May 2018 - Unleaded (91 octane) $1.71 per litre - Unleaded (96 octane) $1.77 per litre Diesel - May 2018 $1.50 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. Oil Superfleet Supreme 15W40 Super Tractor oil 15W40 Universal Tractor Transmission Fluid Two stroke oil Hydraulic fluid 46 Antifreeze Grease Heavy duty grease Multi-purpose grease cartridges Multi-purpose grease pail

Container size 200 litre 20 litre 200 litre 200 litre 20 litre 20 litre 200 litre 20 litre 20 litre

Wholesale (delivered) $791.60 $82.92 $825.97 $868.90 $90.80 $81.84 $587.83 $60.00 $92.85

20kg 12 x 0.4 kg 20 kg

$223.77 $63.10 $225.91

2.13.5 Tyres and Tubes Bridgestone New Zealand Ltd: Radial tractor tyres: 85 series 280/85R20 to 520/85R38 Firestone Performer 85 70 series 320/70R24 to 580/70R38 Firestone Performer 70 65 Series 440/65R24 to 650/65R42 Firestone Maxi Traction 65 Bias ply tractor tyres: 8.3- 24 to 12.4- 36 Bridgestone Farm service Lug Tractor rib tyres: 11L15 to 1100-16 Firestone Guide Grip 3 Rib Implement tyres: 10.0/75-15.3 to 11.5/80-15.3 Firestone Farm Transport Construction tyres: 14.9-24 to 16.9-28 Firestone All Traction Utility 10-16.5 to 12-16.5 Firestone Duraforce Forestry tyres: 18.4-26 to 35.5-32 Firestone Forestry Special Tubes: 400-12 to 18.4-46 Tractor and Forestry tubes: Please check with retailer for current prices

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Price range $845 to $3,675 $975 to $3,715 $1,707 to $5,490 $391 to $1,123 $243 to $654 $370 to $542 $852 to $1,541 $475 to $736 $3,084 to $15,088 $17 to $411

Prices Exclude GST

2.13.6 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 $104.54 $183.31 Trailer up to 3,500kg $32.48 Motorbike 61 – 600cc incl $405.71 6-month licences are available and are usually approximately 50% of the 12 month fees. Common Vehicle Transaction Fees  Motor vehicle license online / through an agent: $4.11 / $7.20  Registration: $7.39  Application for exemption continuous licensing online / agent / through Contact Centre: None / $5.50 / $10.40 Road User Charges (RUC) (effective since 1 July 2015) 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). RUC Type Description Weight Band $ / 1,000km 1 Powered vehicles Not more than 3.5 tonnes $62.00 with 2 axles (except More than 3.5 -not more than 6 tonnes $68.00 type 2 vehicles or Weight of more than 6 t, less than 9t $138.00 type 299) More than 9 tonnes $291.00 2 Powered vehicles Not more than 6 tonnes $66.00 with 1 single-tyred More than 6 tonnes - not more than 9t $104.00 spaced axle & 1 twin- More than 9 tonnes - not more than 12t $142.00 tyred spaced axle Any RUC weight more than 12t $278.00 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  By phone/fax* $8.63 per licence**  Automatic teller sales $6.20 per licence**  Direct connects $2.10 per licence** *only available at these phone/fax numbers: **Direct Debit authority required This work is licensed under a Creative Commons 4.0 Attribution New Zealand International Licence. © 2018 NZ Transport Agency Please check with retailer for current prices

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2.13.7 Combine Harvester Running Costs 353 kW (473 HP) Header Harvester - Total Running Costs: Replaced after 3,000 hours (15 years) 200 hours per year Initial Cost $550,000; Trade in Value $220,000 Fixed costs per annum: Opportunity cost $550,000 at 3% (Real) $16,500.00 Replacement cost ($550,000 - $220,000) $330,000 x sinking fund factor (3% for 15 years) 0.0537666 $17,742.98 Annual licence (6 months on farm use only) $32.41 Insurance (estimate) $5,500.00 Total fixed costs Total fixed costs per hour assuming 200 hrs per year Variable costs per hour: Fuel 45 litres at $1.50 per litre $67.50 Oil and filters 15% of fuel cost $10.16 Repairs and maintenance 100% of purchase price over economic life (5,000 hours) $110.00 Total variable costs per hour excluding labour Total costs (fixed plus variable) per hour

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$39,775.39 $198.88

$187.66 $386.54

Prices Exclude GST

2.14 PROFESSIONAL FEES 2.14.1 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) are:  The adequacy of the presentation of farm records to the accountant by the farmer;  The form of ownership – individual, company or partnership, and if there is a trust entity involved;  The amount of information the farmer wants: advice on management, financial advice, trial balances, farm comparison analysis (farm surveys);  The degree of intensification of the farming operations;  The amount of administration undertaken by the Accountant, ie GST & PAYE returns, budgetary control, receiver/payee of all income/expenditure; budget/cashflow preparation for the farmer; management reporting;  The 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. Fees typically charged for pastoral, dairy and cropping farms are from $3,500 to $6,000 per annum, with clients doing their own GST & PAYE processing and providing reasonably tidy data on approved software. Where the accountant processes the farmers two monthly GST Returns the fee for the GST service would be $1,500 to $2,000 per annum for a reasonable scale farm. Where the Accountant processes the farmers monthly PAYE returns, the fee for the PAYE service would be $750 to $2,000 per annum depending on the scale of the operation. The annual fee should decrease by approximately $750 to reflect that the majority of the financial data is now in the Accountant’s system. If the entity is a company, which owns land, stock and plant, add $600 for the extra compliance requirements. If a multiple entity ownership structure is adopted, eg a trust owning the land, and the stock and plant owned by a trading partnership, add $500 to $1,000. For specific one-off assignments, eg the restructuring of the ownership, succession planning, a separate fee would be charged. Accountants can be asked for estimates of costs of various services after they have a complete awareness of the structures and business involved. Due to the increase in technology, accountants staff input on your average job has decreased. Accountants’ costs have increased, eg wages, electricity, etc but technology has Please check with retailer for current prices

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to a certain extent offset this. However the monthly charges to keep software up to date just continue to increase. Also clients mindful of cost have put more effort into ensuring their records are of a better standard. Having said that, accountants’ fees still tend to increase each year. Some accountants do not run time and cost systems. Fees are based on value added. This type of charging system then depends very much on what the farmer perceives as value added. Many dairy farmers are a special case. Due to the cost of entry (and therefore quite often the complicated ownership structure), and also the substantial wealth and income involved, dairy farmers now use their Accountant much more. Many now see their Accountant not just as a compliance requirement, but as someone who is part of the management team due to the amount of capital involved, and the high income and expense figures. Therefore the Accountant is spending much more time on that client’s affairs, and this is reflected in the fee charged. The above comment also applies to larger farm businesses across all sectors. In respect to compliance work, some firms offer fixed prices where the firm “scopes” the work, provides a quote which is able to be paid on a monthly basis. This helps with cashflow and provides certainty on price. 2.14.2 Farm Consultancy Charges Charge out rates are now $150 to $200 per hour with difficult and litigious projects at $240 per hour. Travelling expenses range between 80c and $1.50 per km. Livestock Improvement Corporation offers the FarmWise service which makes highly experienced advisors available to individual farmers. Half day visits, typically three to four hours, start at $670. The frequency is customised for each individual, typically every four to eight weeks. Services cover all aspects of dairy farming. Other FarmWise agreement packs are available for purchase. 2.14.3 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 $176.00 over the counter + $20 counter fee per instrument but $80.00 if electronic. A Title search copy costs $15.00 manually and $5 electronically. A New Title fee is $135 (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"

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2.14.4 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 rate (in the region of $250 to $400 plus GST.) Lawyers are encouraged to give written estimates for the cost of a job. Anyone seeking a solicitor's help or advice should ask for an estimate (in writing) and both parties should have a clear understanding of what work that estimate is to cover. 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. The Canterbury earthquakes have impacted on the level of fees charged for property transactions in those areas more badly affected. 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 plus GST 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 â&#x20AC;&#x201C; 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. Family Trusts A trust is a legal arrangement between two parties where one party (the trustee) holds assets for the benefit of others (the beneficiaries). The trustee becomes the legal owner of the trust and all the assets contained in it. Cost to set up a family trust depends on a range of factors such as property and other assets contributed, gifting and other complexities. Different lawyers also charge different rates. Prices range from $1,000 for just the trust document to $3,000 and up when all costs of transferring assets and other costs are taken into account. There is no longer gift duty payable on gifts now which means assets of any value may be given to a trust.

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2.14.5 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 are in the following approximate ranges: 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. 2.14.6 Valuation Charges One Canterbury valuerâ&#x20AC;&#x2122;s typical charges are: High Country run $10,000 plus. Dairy farm small unit $4,000 plus. Dairy farm large unit $7,000 plus Sheep farm small unit $3,500 plus. Sheep farm large unit $7,000 plus. Life style blocks $800 to $1,800. Residential Rural townships $700 to $900. Residential Christchurch $580 to $900. Charges include travel and disbursements. Hourly rate $200 to $300. A valuer in the Waikato region gave the following examples of likely charges, plus disbursements such as title searches, mileage etc. For valuation of a residential property charges are around $600 to $700. For valuation of a Lifestyle block, charges would be around $700 to $900. A farm $2,000 to $5,000 eg $3m dairy farm $2,500. $6m dairy farm $4,750.

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2.14.7 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 Medium size subdivision - typically 3 to 10 lots Large subdivisions

$10,000 to $15,000 $15,000 to $50,000 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) - $156. Unit Titles CSD – Base fee with no survey information / with information - $197 / $492 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"

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2.15 ADMINISTRATION EXPENSES Refer also to Section 2.14. Professional Fees 2.15.1 Average Administration Costs Total annual administration expenses vary widely between farms and orchards. Forecast 2017/2018 (per su) Sheep and Beef North Island Hard Hill Country East Coast $3.35 North Island Hill Country Taranaki - Manawatu $2.86 North Island Intensive Finishing Northland, Waikato, BOP $3.63 South Island High Country $2.40 South Island Hill Country $2.80 South Is Canterbury/Marlborough Breeding and Finishing $3.67 South Island Intensive Finishing $4.49 South Island Mixed Finishing $6.30 National $3.56 (per cow) (per kg MS) Dairy 2016/2017 National $43 $0.11 Deer 2014 data but as often farmed with Sheep and Beef, it could be (per su) extrapolated from Sheep and Beef recent data above North Island $10.57 South Island $9.75 (per ha) Arable 2017 data Canterbury $72 (per ha) Horticulture Kiwifruit 2014 data $3,840 Hawkes Bay Pipfruit 2015 budget $1,655 Nelson Pipfruit 2015 budget $2,625 (per producing ha) Viticulture Marlborough $1,265 MPI; Beef+Lamb NZ Economic Service; DairyNZ Economic Survey 2016/2017; FAR.

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2.15.2 Telephone and Internet Costs Spark: (Subject to change, Ts & Cs apply) Charges: incl NZ & Aus calling Ultra Fast Fibre Broadband Data Monthly cost Fibre 100 200GB / Unlimited $99.85/$109.85 Fibre MAX Unlimited $149.85 Fibre Gigatown Unlimited $109.85 Wireless Broadband Wireless 60GB / 200GB $82.85 / $92.85 Wireless with Unlimited Calling 200GB $109.85 Vodafone: (Subject to change) Broadband internet charges: Plan Data Basic Home 40GB home wireless only Everyday Home 100 GB ADSL /VDSL/ Fibre Smart Connect Unlimited Data ADSL/VDSL/Fibre 100/FibreX 200 Ultimate Home Unlimited Data ADSL/VDSL/Fibre/FibreX

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Monthly cost $49.99 $69.99 $79.99 $94.99

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2.15.3 Postage New Zealand Post Domestic Rates: (Prices are GST inclusive) Medium Large Standard Post $1.20 $2.40

Oversize $3.60

Parcels: (New Zealand Post) July 2018 (Prices are GST inclusive) Domestic. Product Postage incl bags* Postage own wrapping* Size 1 Fits DLE $3.50 $3.20 Size 2 Fits C5 $4.50 $4.00 Size 2 bubble Fits C5 $5.50 Size 3 Fits C4 $6.00 $5.50 Size 3 bubble Fits C4 $7.00 Size 4 Fits Foolscap $7.00 $6.40 Size 4 bubble Fits Foolscap $8.00 Size 5 Fits Lineflow $9.50 $8.90 *A rural charge of $3.70 applies to ParcelPost standard, untracked tickets and Postage Included bags. Upgrade Tickets for Postage incl bags and ParcelPost untracked tickets Upgrade* Tracked Upgrade Courier Upgrade Courier & Signature Upgrade Saturday delivery charge for Courier & Courier & Signature parcels is $5

Postage $1.00 $3.00 $6.00

Customersâ&#x20AC;&#x2122; own packaging â&#x20AC;&#x201C; ParcelPost Tracked, Courier and Courier & Signature for larger parcels Across Town Within Island Nationwide (price up to 25kg)* (price first 5kg)** (price first 5kg)** ParcelPost Tracked $5.70 $8.80 $13.70 Courier $9.20 $15.20 $32.10 Courier & Signature $15.20 $21.20 $38.10** *Saturday delivery charge for Courier and Courier & Signature parcels is $5.00 **The additional 5kg price (up to 25kg) is the same for the first 5kg for ParcelPost Tracked and courier. For Courier & Signature the additional 5kg price (up to 25kg) is as per the price of the Courier service.

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2.15.4 Courier Charges New Zealand Couriers: Parcel Solutions excluding flexible fuel factor, RUC and Temporary Service Continuity (TSCS) Ticket Type Product 1 ticket per greater of Base Price per Ticket / Code No of tickets per book 3 Local LT5 0.1 m / 25kg $3.69 / 50 3 Outer Area OA 0.025m / 15kg $5.48 / 20 Shorthaul SH 0.025m3 / 15kg $6.95 / 20 3 Longhaul LH 0.025m / 5kg $10.58 / 20 3 Capital Link CAP 0.025m / 5kg $14.56 / 20 3 Inter - Island NZ 0.025m / 5kg $24.66 / 10 Saturday SAT Per item $4.59 / 20 Delivery Main centres* Rural Delivery RD 1 ticket per 0.075m3 / 15kg $3.42 / 20 Non-urban Dangerous Goods DG Per item $6.26 / 20 * Saturday Delivery. Additional costs may apply POA Check address can be serviced. Maximum weight is 30kg, (Heavy item stickers to be applied for +20kg Post Haste Couriers: As Post Haste do not pick up from rural areas, it is up to the sender to ensure the items are delivered to the nearest agent and processed as a cash sale. Phone 0800 106 828 to find out your nearest Post Haste agent. All prices are incl of GST & FAF/RUC. National Rates Ticket Type Description Weight Rate 3 Localink – Delivery within local metro area 25kg / 0.125m $8.00 3 Outer Area –Delivery within 75km of the local metro area 15kg / 0.075m $8.00 Regionalink – Delivery within 150km of the local metro 15kg / 0.075m3 $13.00 area Within Island – Overnight delivery within the island 5kg / 0.025m3 $19.00 Overnight Delivery Between Islands 5kg / 0.024m3 $36.50 3 2 Day Between the Islands 5kg / 0.025m $21.00 Saturday Delivery – Additional to base ticket for Saturdays $7.00 3 Rural Delivery – Additional to base ticket for rural 5kg / 0.075m $7.00 delivery addresses Residential Delivery – Additional to base ticket $3.00

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Service Standard: Local - Same day delivery or Overnight if received after midday Outer Area & Regional - Overnight delivery to Outer & Regional areas Within Island - Overnight Within Island Between Island - Overnight delivery or 2 day economy option Rural & Residential - Delivery between 7am & 5pm Signature may not always be obtained May add an additional day to normal service standard Courier Satchels Nationwide overnight delivery by 12noon within and between both Islands. 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. NZ Couriers prices are subject to change; RUC, Temporary Service Continuity (TSCS) and Flexible Fuel Factor (FFF) to be added. New Zealand Couriers: Pack Type Size Price excl Quantity per wrap FFF&RUC e10 â&#x20AC;&#x201C; DLE Paper Greenpac 225mm x 115mm $2.57 20 satchels e11 - DLE Plastic 225mm x 115mm $2.80 20 satchels e20 - A5 Plastic 260mm x 190mm $3.09 20 satchels e25b - Plastic Bubble 280mm x 210mm $4.45 10 satchels e40 - A4 Plastic 325mm x 235mm $5.61 20 satchels e50 - Foolscap 390mm x 280mm $7.49 10 satchels e60 - A3Plastic 415mm x 360mm $10.70 10 satchels DP - Greenpac Card A4+ 379mm x 260mm $5.12 10 satchels PP - Plastic A3 + 440mm x 450mm $16.86 10 satchels Post Haste Couriers: As Post Haste do not pick up from rural areas, it is up to the sender to ensure the items are delivered to the nearest agent and processed as a cash sale. Phone 0800 106 828 to find out your nearest Post Haste agent. All prices are incl of GST & FAF/RUC. Express Pack Satchels Description Size Rate Xtra Large 450 x 450 mm $23.00 Large 360 x 415mm $15.00 Medium 280 x 390mm $10.00 A4 Priority Despatch 225 x 325mm $9.00 Small 210 x 260mm $7.00 Letter 150 x 260mm $5.00 Medium Bubble 240 x 325mm $11.00 A4 Priority Despatch Bubble 240 x 325mm $10.00 Small Bubble 230 x 280mm $9.00 Please check with retailer for current prices 245

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2.15.5 Subscriptions (Magazines/Farming Organisations) Some examples are: Magazines “Wine NZ” $72.60 per year “Dairy Exporter” $133.00 per year “Lifestyle Block” $95.00 per year “NZ Grower” $142.00 per year “The Orchardist” $142.00 per year “NZ Farmer” Approx. $149.00 per year “The NZ Farmers Weekly” $190.00 per year “Countrywide” $133.00 per year “NZ Rural Contractor” $55.00 per year “Dairy News” $105.00 per year “Organic NZ” $72.60 per year “Rural News” $133.00 per year Organisations NZ Young Farmers: NZYF Full Year Membership 12 months from date of registration TeenAg School Membership TeenAg Individual Membership (if entering YF Contest - full rate applies) NZYF Supporter (31+ years includes Patrons and Advisory Members) Federated Farmers: Business Owner/Director/Farm Owner Farm Manager/Rural Contractor/Farmlet/Rural Professional Farm Employee/Retired/Supporter Young Farmers of NZ

$60.87 Free $26.09 $26.09 $578.26 $406.09 $114.78 $150.00

2.15.6 Travelling Cost of travel is fully tax-deductible when the purpose is farm business. This can represent a large expenditure item with some systems of management or some types of farms, e.g. stud farms. For information on costs of travel see Section 2.13.3 car operating costs. 2.15.7 Payroll Outsourcing Providing full payroll service throughout NZ including PAYE, Kiwisaver, Holiday pay etc. $5.50 per person per pay. 2016 prices 2.15.8 Bank Fees and Stock Company Charges (See Section 2.17 Financial Charges)

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2.16 STANDING CHARGES 2.16.1 Insurances Farmersâ&#x20AC;&#x2122; Mutual Group (FMG) An average Farm Insurance package in the Canterbury region is around $10,000. This includes insurance for farm vehicles, houses, farm and personal contents, farm buildings and liability. Insurances are very much individual to each farm, so FMG tailors each policy to suit specific client needs. An example is given below of some policies that a farmer may require depending on their situation. All premiums can vary with the nature of the risk, value of items and claims history. As a result of the Christchurch earthquakes additional underwriting criteria or terms may be applied to parts of the Canterbury region. There are also a number of ways to reduce premiums, such as voluntary excesses and a good claims history based on good risk management practices. An example of a Farm Insurance Package quote (Note GST incl) (annual premiums): Item Policy Type Sum Insured Excess Premium House Full Replacement $375,000 $300 $1,296.49 Household Contents Nominated Replacement $100,000 $300 $625.56 Private Car Full cover - market value $5,000 $400 $428.80 Woolshed Full Replacement $100,000 $500 $396.48 Hayshed Full Replacement $8,000 $500 $195.70 Unspecified farm Present Day Value - max $10,000 $500 $193.67 buildings ($5,000 per building) General farm contents Nominated Replacement $30,000 $300 $364.09 Baled hay/silage Present Day Value $15,000 $300 $109.61 Tractor Full cover - market value $50,000 $400 $770.86 4 Wheel farm bike Full cover - market value $5,000 $400 $138.50 Toyota Hilux Full cover - market value $10,000 $400 $529.83 Liability Automatically includes $1,000,000 $250 $215.05 $1,000,000 cover for Forest & Rural Fires Act Employers Liability $100,000 $500 $65.07 optional benefit Statutory Liability $250,000 $500 $74.74 optional benefit Farm Dogs Present Day Value $3,000 Nil $195.38 Forestry (40ha of 16 Agreed Value $300,000 2.5% of total $561.05 year old Pine) plantation value Windstorm Optional Benefit on Forestry 50% of block (min $2,500, max $1,897.50 sum insured $50,000) FMG offers comprehensive cover on many other requirements including livestock, horses, boats & breakdown. FMG also offers specialist cover for arable crop and horticulture. Please check with retailer for current prices

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1. 2. 3. 4. 5. 6.

NZI Rural Insurance (The premium and excess amounts shown on this table represent standard pricing as at the date of this publication and should be used as a guide only) 2016 prices Policy Item Sum Insured Excess Premium Material Dairy Shed $1,000,000 $500 $2,900 Damage Milk Contamination $20,000 $1,000 $850 Woolshed $500,000 $500 $2,175 Glasshouse $400,000 $1,000/$2,500 $2,752 Hay Barn $50,000 $500 $217.50 Liability Public and Products $1,000,000 (incl $500 $150 $250,000 FRFA) Public and Products $5,000,000 (incl $500 $325 $250,000 FRFA) Employer’s Liability $500,000 $500 $125 Statutory $500,000 $500 $125 Commercial Tractor $80,000 $800 $800 Motor Harvester $250,000 $2,500 $2,250 Quad Bike $5,000 $400 $138.50 Ute $15,000 $400 $330 Machinery Submersible Pump $5,000 $500 $250 Breakdown min Livestock Herd on Farm$100,000 $500 $153 Mortality only Working Dog $4,000 nil $200 Working Dog – incl $4,000 nil $320 illness cover Income Farmer age 40 – $500 pw 1 week $667 Protection injury and illness Farmer age 55 – $500 pw 1 week $1,020 injury and illness Death Cover $100,000 nil $150 Premium Notes: Premiums exclude Fire Service Levies and GST. Property premiums exclude natural disaster cover – this is rated regionally from areas of low risk such as Northland to areas of high risk such as Canterbury. Premiums assume standard excesses are chosen – premiums may be discounted up to 30% for higher excesses. Premiums assume standard loss records – premiums may be loaded for poorly performing accounts. Income protection premiums presume the farmer is fit and healthy. Milk Benefits based on Herd Size of $600 Forestry See Section 2.22.2 Please check with retailer for current prices 248

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2.16.2 Accident Compensation Commission Levy See Section 4.15.7 for details of Employee and Self-Employed levy rates. 2.16.3 Rates See Section 2.18.9 for stock and rural domestic water supply charges. 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. The examples that follow are based on a 200-hectare rural property with a rateable value of: Improvements Land Value Capital Value

$500,000 $1,000,000 to $2,300,000 depending on usage and location. $1,500,000 to $2,800,000

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. On the following page are some council rates but more and more councils are moving towards targeted rates, rather than uniform rates.

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General Purposes Uniform Annual Charge Rate / Council Services Rate $0.0029774 (LV) $615

Regional Council

District Council

Northland

Whangarei

Hawkes Bay

Tararua Hastings

$518.01 $234

$0.0011094 (LV) $0.003862 (LV)

Taranaki

New Plymouth South Taranaki Tasman District

$370.55 $554.93 $290

$0.002681(LV) $0.0008389 (CV)

$501

$0.00318697(LV)

Tasman Marlborough

Works & Services Rate / Land Mgmt Rate

$0.002669 (CV)

West Coast

Buller District

$500.00

$0.00210 (LV)

Canterbury

Kaikoura District Selwyn District Waimate District

$490.86 $207.00 Targeted $701.59

$0.00085188 (CV) $0.000755333 (CV) $0.0002476(CV)

$0.000434 (CV) $0.000768 (CV) Southland Gore Targeted Rates can include water schemes, swimming pools, roading development and many other issues.

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2.16.4 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 lesseeâ&#x20AC;&#x2122;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. 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 â&#x20AC;&#x201C; 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. Canterbury: 2018 sees average milk and grain prices, meaning demand for leased properties in Canterbury remains firm, supported by arable and finishing farmers. 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.

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Pastoral Land Sheep and cattle rents vary significantly depending on the carrying capacity of the land and the farm programme possible. Better breeding and finishing: $25-$30 per stock unit. Harder store country: $15-$25/stock unit. Non-irrigated rolling land and upper plains not suited to intensive dairy support have examples of $450/ha - $700/ha Dairy, Dairy Support and Arable Land for dairy support (ie heifer grazing or cow wintering) will be of good contour, high rainfall or irrigated with good pastures. Rents for unirrigated land range from $450/ha for light soils with lower rainfall to around $1,000 for good soils and rainfall. Rents for irrigated land range between $900/ha and $1,700/ha including irrigation charges. Dairying land is at the top end of the range and will be within walking distance of the dairy shed, flat, high rainfall if not irrigated and good fertility. 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. Southland: Dairy milking only Dairy run-off blocks Sheep and Beef. Cropping

$1,000 - $1,350 per hectare $650 to $900 per hectare $35 per stock unit $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.

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Taranaki: Dairy Farms (generally without Fonterra shareholding) $1,350 to $1,650 / ha Lease land for replacement dairy stock, or milking $1,350 to $1,550 / ha platform extension 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 donâ&#x20AC;&#x2122;t change in a downturn and may continue to run for 3-5 years. So are not always linked directly to farm land values. 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) â&#x20AC;&#x201C; 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 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.

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2.17 FINANCIAL CHARGES 2.17.1 Bank Charges Rural Business Finance The key to securing the best funding solution is through a bank that has a thorough understanding of individual farmer’s needs and situation. ANZ has been helping New Zealand farmers succeed for more than 170 years and is considered the leading bank in the industry. CANSTAR recently awarded us Agribusiness Bank of the Year for the seventh year in a row. With more specialist Rural Managers than other banks we understand the unique challenges and complexities of running a rural business. We draw on the experience and insights of a wide pool of farmers and industry experts to develop finance solutions to meet your needs. ANZ’s solutions for farm businesses include: ANZ Business Term Loan ANZ offers a range of fixed and floating options to meet the unique borrowing needs of rural businesses to purchase land, stock, plants, machinery and other capital expenditure or to refinance existing debt. Features of the ANZ Business Term Loan - Fixed  Customers can opt for certainty with a fixed interest rate between 3 months and 5 years.  Your interest rate stays the same for an agreed time and so do your regular repayment amounts. For future advances and lending arrangements, we offer the option of forward fixed rates enabling customers to lock in a rate now having certainty on what they will be paying in future  Fixed rates give you more certainty but are less flexible if you want to change your repayments  Flexible repayment arrangements though various options; o Table: equal interest and principal repayment amounts o Straight-line: repayments of set principal amounts plus interest o Interest only: repayments of interest only Features of the ANZ Business Term Loan - Floating  A floating interest rate provides flexibility with a floating rate that can move up and down  Ability to make loan changes including lump sum payments, and move to a fixed rate at any time  Special features such as loan top ups and progressive draw-downs may be available  Flexible repayment arrangements through various options: o Table: equal interest and principal repayment amounts o Straight-line: repayments of set principal amounts plus interest o Interest only: repayments of interest only Please check with retailer for current prices

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Features of the ANZ Environment Loan  ANZ’s low-interest loan designed to help farmers who want to invest in environmental initiatives while minimising the financial cost.  The Environment Loan can help with: - Paying for the services of a qualified environmental adviser to prepare a farm environment plan - Farm infrastructure to develop or improve environment management, including: o Effluent management o Water quality management and monitoring o Fencing and planting to enhance the value of land less suited to grazing livestock - Water and energy conservation projects. Features of the ANZ Pasture & Performance Loan  Low-interest loan designed to help sheep and beef farmers improve farm performance and profitability by increasing investment into pasture and forage growth and other key areas that directly contribute to feed utilisation and production  Competitive interest rate with no establishment fees ANZ Rural Flexible Facility The nature of farming means there can be funding gaps between long-term borrowing and day-to-day cash management. These gaps can be covered with short-term working capital solutions. Features of an ANZ Rural Flexible Facility  Revolving credit facility provides access to funding when a customer needs it  No fixed or regular repayments  No transactions fees apply in any month where there is less than five transactions in that month  Can be linked to your ANZ Rural Current Account for convenient access ANZ Rural Current Account A day-to-day account specifically designed for rural business, with easy access to revolving credit to manage seasonal cash flow. Features of an ANZ Rural Current Account  Availability of seasonal overdraft limits that move in line with your cash flow needs throughout the year  You can access the account in a way that suits you – ANZ Internet Banking, goMoney, Phone Banking, via Visa Debit, EFTPOS, ATM’s, in person at your local branch or via an ANZ Rural Manager  One monthly fee $12.50 for as many standard transactions as you like  Credit interest is earned on credit balances

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ANZ Farm Start-up Package This package helps customers get started in achieving their farming goals with special lending facilities and banking benefits, including:  An ANZ Rural Current account - no transaction or monthly account fees for the first 12 months  An ANZ Freedom account - no transaction fees or monthly account fee for the first 12 months*  An ANZ Visa Business card - choose one of our ANZ Visa Business cards (AirpointsTM Rewards**, Cashback Rewards, Low interest rate or Low fee) and you’ll pay no annual card fee (including additional card fee) for the first 12 months  Support of an experienced ANZ Rural Manager  Free 12 month subscription to farm management software from Cashmanager RURAL ONLINE from CRS Software ** AirpointsTM Programme and Airpoints for Business Programme terms and conditions apply. Visit airnewzealand.co.nz for details. ANZ lending and eligibility criteria, fees and terms and conditions apply. Fees and fee waiver offers are subject to change. For further information, see anz.co.nz or contact your local Agri Manager. ANZ’s Reserve Bank Disclosure Statement is available at anz.co.nz or a request for a copy can be made at any ANZ branch. This material is for information purposes only and is correct at the date of publication and is subject to change. Its content is intended to be of general nature, does not take into account your financial situation or goals, and is not personalised adviser service under the Financial Advisors Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. ANZ Bank New Zealand Limited.

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Rabobank New Zealand Limited: All In One Account: Uses: Combines long term funding with short term working capital and transactional access. Available for land purchase, stock purchase, financing existing debt, diversification, development, plant and machinery purchase. Choice of phone, online banking and mobile banking plus Debit MasterCard and cheque book facilities. Term: Ability to plan long term with an interest only loan period of up to 15 years Interest Range of interest rates can be fixed online or by phone on any portion Rates: of the loan for 30 days to 5 years (with no further documentation) including forward bookings. Security: Land, livestock, plant or dairy company shares. Equipment Equipment finance is available for a broad range of agricultural related Finance: plant and equipment that is used predominantly in a farming enterprise, from tractors through to grape harvesting equipment, spraying machinery and motor vehicles. Up to 100% finance to approved applicants. Payments can be structured relative to the decrease in the equipmentâ&#x20AC;&#x2122;s value over its estimated useful life. Deposit: Call deposits and term deposits of 1 month to 5 years. (ii) 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. (iii) 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.

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2.17.2 Cost of Table Mortgages Monthly/Quarterly/Annual Payments (i) Monthly Payments (Monthly Payments on Amortised Loans). 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: Years (Mortgage Term) 5 10 15 20 Interest Rate $ / mth $ / mth $ / mth $ / mth 6% 19.33 11.10 8.44 7.16 6.5% 19.57 11.35 8.71 7.46 7% 19.80 11.61 8.99 7.75 7.5% 20.04 11.87 9.27 8.06 8% 20.28 12.13 9.56 8.36 8.5% 20.52 12.40 9.85 8.68 9% 20.76 12.67 10.14 9.00 9.5% 21.00 12.94 10.44 9.32 10% 21.25 13.22 10.75 9.65 10.5% 21.49 13.49 11.05 9.98 11% 21.75 13.77 11.37 10.32 11.5% 22.00 14.06 11.68 10.66 12% 22.24 14.35 12.00 11.01 12.5% 22.50 14.64 12.33 11.36 13% 22.75 14.93 12.65 11.72 13.5% 23.01 15.23 12.98 12.07 14% 23.27 15.53 13.32 12.44 14.5% 23.53 15.83 13.66 12.80 15% 23.79 16.13 14.00 13.17 15.5% 24.05 16.44 14.34 13.54 16% 24.32 16.75 14.69 13.91 16.5% 24.58 17.06 15.04 14.28 17% 24.85 17.38 15.39 14.67 17.5% 25.12 17.70 15.75 15.05 18% 25.39 18.02 16.10 15.43 18.5% 25.67 18.34 16.47 15.82 19% 25.94 18.67 16.83 16.21

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25 $ / mth 6.44 6.75 7.07 7.39 7.72 8.05 8.39 8.74 9.09 9.44 9.80 10.16 10.53 10.90 11.28 11.66 12.04 12.42 12.81 13.20 13.59 13.98 14.38 14.78 15.17 15.57 15.98

Prices Exclude GST

(ii) Quarterly Payments (Quarterly Payments on Amortised Loans). The quarterly 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: Years (mortgage Term) 5 10 15 20 Interest Rate $ / qtr $ / qtr $ / qtr $ / qtr 6% 58.25 33.43 25.40 21.55 6.5% 58.97 34.20 26.22 22.43 7% 59.70 34.98 27.06 23.33 7.5% 60.43 35.76 27.91 24.24 8% 61.16 36.56 28.77 25.17 8.5% 61.90 37.37 29.65 26.11 9% 62.65 38.18 30.54 27.07 9.5% 63.40 39.01 31.44 28.04 10% 64.15 39.84 32.36 29.03 10.5% 64.91 40.68 33.28 30.03 11% 65.68 41.54 34.23 31.05 11.5% 66.45 42.40 35.18 32.08 12% 67.22 43.27 36.14 33.12 12.5% 68.00 44.15 37.11 34.17 13% 68.78 45.03 38.09 35.23 13.5% 69.57 45.93 39.09 36.31 14% 70.37 46.83 40.09 37.39 14.5% 71.16 47.74 41.11 38.48 15% 71.97 48.66 42.13 39.59 15.5% 72.77 49.59 43.16 40.70 16% 73.59 50.53 44.21 41.82 16.5% 74.40 51.47 45.26 42.95 17% 75.22 52.42 46.32 44.08 17.5% 76.05 53.38 47.38 45.23 18% 76.88 54.35 48.46 46.38 18.5 77.72 55.32 49.54 47.53 19% 78.56 56.30 50.63 48.69

Please check with retailer for current prices 259

259

25 $ / qtr 19.38 20.30 21.25 22.22 23.21 24.21 25.23 26.27 27.32 28.38 29.46 30.55 31.65 32.76 33.89 35.02 36.16 37.32 38.47 39.64 40.81 41.99 43.18 44.37 45.56 46.76 47.97

Prices Exclude GST

(iii) 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: Years (Mortgage Term) 5 10 15 20 Interest Rate $ / annum $ / annum $ / annum $ / annum 6% 237.40 135.87 102.96 87.18 6.5% 240.64 139.11 106.36 90.76 7% 243.89 142.38 109.79 94.39 7.5% 247.17 145.69 113.29 98.10 8% 250.46 149.03 116.83 101.85 8.5% 253.77 152.41 120.43 105.68 9% 257.09 155.82 124.06 109.55 9.5% 260.44 159.27 127.75 113.48 10% 263.80 162.75 131.47 117.46 10.5% 267.18 166.26 135.25 121.49 11% 270.57 169.80 139.07 125.58 11.5% 273.98 173.38 142.92 129.70 12% 277.41 176.98 146.82 133.88 12.5% 280.85 180.62 150.76 138.10 13% 284.31 184.29 154.74 142.35 13.5% 287.79 187.99 157.76 146.65 14% 291.28 191.71 162.81 150.99 14.5% 294.79 195.47 166.90 155.36 15% 298.32 199.25 171.02 159.76 15.5% 301.85 203.06 175.17 164.20 16% 305.41 206.90 179.36 168.67 16.5% 308.98 210.77 183.57 173.16 17% 312.56 214.66 187.82 177.69 17.5% 316.16 218.57 192.10 182.24 18% 319.78 222.51 196.40 186.82 18.5% 323.41 226.48 200.73 191.42 19% 327.05 230.47 205.09 196.05

Please check with retailer for current prices

260

25 $ / annum 78.23 81.99 85.81 89.72 93.68 97.72 101.81 105.96 110.17 114.43 118.74 123.10 127.50 131.94 136.43 140.95 145.50 150.08 154.70 159.34 164.01 168.71 173.42 178.16 182.92 187.69 192.49

Prices Exclude GST

2.18 WATER SUPPLY, IRRIGATION AND DRAINAGE 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. 2.18.1 Water Supply Development Costs (2018) Type Typical Cost Surface (direct) pumping systems $1,500/ha Wells (submersible pumps) $4,100/ha

Cost Range $1,500 to $1,600 / ha $4,000 to $4,200 / ha

On-Farm Irrigation Development Capital Costs (2018) System type Typical Range • Rotary boom $3,900/ha $3,800 - $4,000/ha • Fixed boom $4,200/ha $4,100 - $4,300/ha • Centre-pivot $4,800/ha $4,700 - $4,900/ha • Lateral move $4,900/ha $4,800 - $5,000/ha • K Line $2,700/ha $2,700 - $2,800/ha • Long lateral $2,700/ha $2,700 - $2,800/ha • Guns $3,900/ha $3,800 - $4,000/ha • Set sprinklers $15,000/ha $15,000 - $15,800/ha • Renovating borders $5,600/ha $5,500 - $5,800/ha Source: Aqualinc Research Ltd and Rainer Irrigation Ltd Refer to Section 2.18.9 for supply charges. 2.18.2 Water Tanks Plastic Tanks Devan: (*Prices delivered, for North Island only.) Volume (l) Height (m) Width (m) 30,000 3.1 3.7 25,000 3.0 3.5 15,000 2.6 2.9 10,000 2.6 2.5 5,000 2.3 1.9 1,000 2.0 0.87 600 1.2 0.86

NI Price std colours* $3,260 $2,739 $2,260 $1,956 $1,129 $700 $494

Mouldings Unlimited Ltd: Product Comment 200 l Barrel c/w Tap only / c/w Lid, Strainer & Tap 200 l Barrel c/w Diverter & Tap 800 l, 1,100 l c/w Lid, Strainer & Tap 2,000 l c/w Lid, Strainer & Tap 5,500 l / 15,000 l Includes Delivery 25,000 l / 30,000 l Includes Delivery Please check with retailer for current prices 261

261

Price $104.35 /$129.57 $152.17 $339.13, $369.57 $606.09 $1,043.48 / $2,260.86 $2,739.13 / $3,260.86

Prices Exclude GST

Plastic Fire Tanks Devan: (North Island prices, Delivery charges will apply where ferry required) Volume (l) Height (m) Width (m) NI Price std colours* 30,000 3.1 3.7 $4,980 25,000 3.0 3.5 $4,371 Basic Fire kit can be separately purchased $942.61 *Prices delivered, for North Island only. Fire Tanks come with a basic 100mm Fire Kit: 1x100mm hex nipple, 1x100mm brass gate valve, 1x support stand, 1x100mm fire-fighting coupling. 2.18.3 Water Troughs

Hynds Rural: Precast Concrete Water Troughs (Freight not included) Product Code Description TRP1500N Trough Round Protected 150L TRP900N Trough Round Protected 900L TRP750N Trough Round Protected 750L TRP585SI Trough Round Protected 585L TD040SI 180 litre deer/horse concrete trough & lid TPIGCMC Pig trough cover TPIGSMC Small pig trough TPIGMMC Medium pig trough TPIGLMC Large pig trough DOGBOWLMC Concrete dog bowl Plastic Troughs Mouldings Unlimited Ltd: Size c/w ball valve 360 l / 750 l

Retail Price $631.89 $511.53 $475.37 $343.01 $282.82 $60.17 $108.32 $108.32 $156.46 $33.10

$147.83 / $204.34

2.18.4 Pumps and Windmills (i) Pumps Williamson Hi-Flo Rampumps (trading as Kevin Smith Steelworkers Ltd): Model 0150 req 0.3 -0.9L/sec. 1,500-4500L/day $5,500 Pure Valve (for models 0150 or 0250) $1,260 Model 0250 req 2.2L/-4.10L/sec. 11,000-20,500L/day $8,000 Model 0400 req 6L-11L/sec. 30,000- 55,000 L/day $14,000 Pure Valve for model 0400 $1,500 Model 0600 req 18-27L/sec. 90,000- 135,000 L/day $25,500 Pure Valve for model 0600 $2,250 Survey $400 Incl in price is rampump, a galv surge tank, a stainless steel surge tank filter, a rubber surge tank / drive pipe joiner. Please check with retailer for current prices 262

262

Prices Exclude GST

Makita Outdoor Power Equipment: EW1060HX Pump 130 litres/min 1” with hoses - 4 stroke EW2050H Pump 2” 4 Stroke Bertolini (Diaphragm Pumps) Medium to high Maximum continuous pressure models working pressure PA 330 40 Bar (580 psi) PA 430 40 Bar (580 psi) PA 530 40 Bar (580 psi) PA 730 40 Bar (580 psi) PA 908 50 Bar (725 psi) PA 154 50 Bar (725 psi) Hydra-Cell Pumps Ltd.: Hydra-Cell G20 Brass Head Hydra-Cell G03 Brass Head Hydra-Cell G10 Cast Iron Head Hydra-Cell G25 Cast Iron Head Hydra-Cell G35 Cast Iron Head

$694.78 $617.39

litres per minute

Price

34 40 54 70 90 150

$1,043 to $1,571 $1,137 to $1,705 $1,506 to $2,279 $1,786 to $2,597 $2,361 $3,376

up to 4 litre / min up to 1000 psi up to 9 litre / min up to 1200 psi up to 30 litre / min up to 1200 psi up to 76 litre / min up to 1000 psi up to 140 litre / min up to 1200 psi

Please check with retailer for current prices 263

263

$1,685 $2,900 $3,465 $9,500 $14,130

Prices Exclude GST

43South: ONGA Prices for various pressure systems vary according to tank size. Farm Pressure Systems. Shallow well jet pumps. JJ400 750 W 20 to 40 psi APP 24 tank $1,258.80 JJ600 (1ph) 1100 W 20 to 50 psi APP 24 tank $1,672.80 OJ700 (1ph) 1500 W 20 to 70 psi APP 80 tank $2,548.80 OJ800 (3ph) 2400 W 30 to 75 psi APT-100 $3,851.60 Prices include a shallow well injector. General Purpose Water Transfer - Hi Flow Self Priming Moulded Centrifugal Pumps Models 415 750 W 31psi 240v $657.60 112 1100 W 37psi 240v $1,060.80 143 2400 W 60psi 240v $1,431.60 Irrigation Blazemaster Single Impeller B55BS Briggs & Stratton 5.0hp 200l/min at $1,160.40 37m head Blazemaster Twin Impeller BM65BS Briggs & Stratton 6.0hp 200l/min at $1,407.60 41m head Blazemaster Twin Impeller BM10YE Yanmar HODAE ES 10hp Diesel, Electric Start 200l/min at 54m head, 100l/min at 64m Head $7,375.20 43south advt here

Please check with retailer for current prices

264

Prices Exclude GST

McNeill Ltd: (Grundfos Pumps) (Grundfos Pumps) High Pressure Multi Stage â&#x20AC;&#x201C; Farm Reticulation 3 phase, Pump + Motor kW Pressure Flow, litres/min Price CRI 5-8 1.1 45psi 120 $1,521 CRI 5-15 2.2 100psi 120 $1,968 CRI 10-9 3.0 85psi 200 $2,465 CRI 15-5 4.0 75psi 330 $2,992 Variable Speed Pressure Systems Hydro Solo E 5-5 1 phase 1.1 45psi 120 $5,602 Hydro Solo E 5-9 3 phase 2.2 100psi 120 $6,519 Hydro Solo E 10-5 3.0 85psi 200 $7,209 Hydro Solo E 15-4 4.0 75psi 330 $8,667 Domestic Pumps SCALA2 0.67 45psi 50 $893 JP Booster 6 PM1 0.92 40psi 65 $700 JP Rain 2 PM 1 0.44 35psi 30 $476 JP Rain 4 PM 1 0.75 40psi 50 $575 Submersible Bore Hole Pumps Other models available upon Duty Conformation SQE 3-65 1 phase 1.0 90psi 60 $1,855 SQE 5-70 1 phase 1.6 90psi 100 $2,520 SQE 7-40 1 phase 1.3 55psi 120 $2,254 SP 9-13 1 phase+starter 2.2 75psi 140 $2,952 SP 17-10 3 phase 5.5 100psi 310 $4,592 Drainage Waste Pumps D.A.B Nova 300a 0.22 5.8psi 120 $360 KP250 A1 0.25 5.8psi 125 $454 AP12-40-06 A1 0.40 8.7psi 230 $805 AP 50-50-11-A1 Vortex 1.1 12.3psi 265 $1,832 Waste Water Heavy Duty Pumps 3 phase DP 10-65-26 2.6 24psi 533 $2,855 EF 30-50-06 0.6 9psi 265 $1,543 SEV 65-65-30 3.0 11.5psi 630 $4,304 SEV 65-65-40 4.0 20.3psi 630 $5,138 Pressure Tanks Tank Capacity (litres) Maximum working pressure Price PTF18 18 1000 $96.30 PTF80 80 1000 free standing $342 PTF130 130 1000 free standing $563 PT450 450 1000 free standing $1,656 (ii) Windmills Ferguson Windmills Company: 1.8m complete windmill (incl. fan, standard mast, pump and accessories) Extension mast and accessories Freight free to nearest national carrier depot. Please check with retailer for current prices 265

265

$2,778.26 $702

Prices Exclude GST

2.18.5 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 Stone Trap 4,500 x 2,950 x 1,200 mm Effluent Sump 25,000 litre includes sump, conical internal base, pontoon & discharge pipework & sump pump switch (excludes installation) Ecostream Pontoons for Storage Ponds Pontoon 4 Drum c/w 8.0m Discharge Pipe (for Pump only) Pontoon 6 Drum c/w 8.0m Discharge Pipe (for Pump & Stirrer) Pontoon 8 Drum c/w 8.0m Discharge Pipe (for Pump & Stirrer) Pumps & Stirrers Electric Effluent Pump & Motor 10 hp 2,800 rpm Electric Effluent Pump & Motor 15 hp 2,800 rpm Electric Effluent Pump & Motor 20 hp 2,800 rpm Ecostream PTO Trailer Pump 285 Ecostream PTO Trailer Pump 380 Electric Pond Stirrer 10 hp Electric Sump Stirrer 5 hp Electric Sump Stirrer 10 hp Tractor Pond Stirrer 4.5m long Tractor Pond Stirrer 6.0m long

$1,750 $3,250 $11,000 $3,300 $4,000 $5,000 $4,750 $6,050 $6,650 $6,800 $7,700 $6,500 $6,850 $8,200 $6,200 $7,600

Ecostream Sump Pump Switch 1,000 Ecostream Sump Pump Switch 2,000 All prices exclude GST & Freight Source: Grant Titchiner, Ecostream Irrigation May 2018

$540 $1,020

Numedic Ltd: Pumps â&#x20AC;&#x201C; New Generation Grease Model Motor Size (3 phase and 2800 rpm) Motor and pump price 5.5 kW $4,995.00 7.5 kW $5,235.00 11 kW $6,520.00 15 kW $7,080.00 18.5 kW $7,560.00 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 5.5kW Stirrer for use in small effluent ponds 7.5kW Maxi Stirrer for use in larger effluent ponds Please check with retailer for current prices 266

$3,705.00 $4,370.00 $6,905.00 266

Prices Exclude GST

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 $5,000 (many optional extras available at an additional cost) 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 $390 and hose clamps (typical effluent system uses 3 or 4 sections) All prices exclude GST & Freight Source: Grant Titchiner, Ecostream Irrigation May 2018 Numedic Ltd: EVENSPREAD ADCAM®750 TRAVELLING IRRIGATOR. Unique short & long arm boom design for improved spread. Adjustable cam with 7 different speeds enabling 7 different application depths. Wire rope winder ensures even layering of wire rope back on to the drum. STATIONARY IRRIGATOR. Ideal for steeper farms, adjustable riser pipe.

Please check with retailer for current prices 267

267

$5,690.00

$2,390.00

Prices Exclude GST

2.18.6 Well Drilling McMillan Drilling Ltd: Price for drilling wells Price per metre 6 inch (150mm) / 8 inch (200mm) $185.00 / $286.00 10 inch (250mm) / 12 inch (300mm) $397.00 / $468.00 14 inch (350mm) POA NB There is a 5% surcharge on wells drilled over 140mbgl, on top of per metre rate. Developing charged at $164.50 per hour for a 100 to 150 mm well and $183 for a 200 to 300 mm well. Compressing and test pumping for a 150 mm well charged at approximately $164.50 per hour. Compressing and test pumping for a 200 mm well and larger is charged at $201.25 per hour and $189.75 per hour respectively. Install telescoped casing for 250mm or 300mm well charged at $225 per hour if applicable. All prices include drilling and steel pipe. Stainless steel screens are normally fitted, and range in price from $475 per metre for 150 mm to $932 per metre for 300 mm. However, prices will vary depending on location and depth. There may also be a Mobilisation/Demobilisation charge, accommodation and or travel included. Price for screens Price per metre 6 inch (150mm) / 8 inch (200mm) $475 / $602 10 inch (250mm) / 12 inch (300mm) $851/ $932 14 inch (350mm) POA 2.18.7 Dam Liners Permathene Ltd: (Permaliner range) 300 micron 500 micron 750 micron 1,000 micron

$3.85 per m2 $6.60 per m2 $9.95 per m2 $11.50 per m2

Please check with retailer for current prices

268

Prices Exclude GST

2.18.8 Pipes, Valves and Fittings Hansen Products: Polythene Pipe Fittings: Straight coupling (HS) Reducing straight coupling (HRS) Long straight coupling (HLS) Female straight coupling (HFS) Reducing female straight coupling (HRFS) Male straight couplings (HMS) Reducing male straight couplings (HRMS) Bends (HB) Male Bend (HMB) Female bends (HFB) Reducing female bends (HRFB) Reducing male bends (HRMB) Tees (HT) Reducing tees (HRT) Female tees (HFT) Male tees (HMT) Bracket elbow (HBE) Plug (HSP) Reducing bush (HRB) Hex nipple (HSN) Reducing hex nipple (HRHN) Sockets (HSS) Reducing Socket (HSRS) Caps (HCP) Threaded Tees (HTT) Hansen Products: Female Tank Fittings (HTFFTB) Male Tank Fitting (HTFB) Dual Level Tank Valve(HLEVELLERS) Tank Level Indicator (LEVELALERT) Hansen Ball Valve (HBV) Check Valve (HCV) Foot Valve (HFV) Superflo Piston Trough Valve (HSFPV2520) Maxflo Diaphragm Trough Valve Superflo Brass Piston Trough Valve (HSFPV2520B) Ballfloat – Blue (HFLOAT140B) Ballfloat – Hi Vis (HFLOAT140HI)

15mm to 50mm 20x15mm - 50x40mm 15mm to 25mm 15mm to 40mm 20x15mm - 50x40mm 15mm to 50mm 20x15mm - 25x20mm 15 to 50mm 15mm to 25mm 15mm to 50mm 15x20mm - 50x40mm 15x20mm - 25x20mm 15mm to 50mm 15x20mm - 50x40mm 15mm to 50mm 15x20mm - 20x20mm 15mm to 20mm 6mm to 100mm 15x6mm to 100x80mm 6mm to 80mm 8x6mm to 100x80mm 15mm to 80mm 20x15mm - 100x80mm 15mm to 100mm 15mm to 100mm 15mm to 50mm 15mm to 50mm 32/40/50 15mm to 50mm 25mm to 50mm 25mm to 50mm 25mm 20/25mm 20/25mm

$4.28 to $23.36 $5.55 to $24.35 $5.50 to $8.40 $4.78 to $13.92 $5.55 to $17.36 $4.82 to $17.19 $4.71 to $5.65 $9.13 to $38.05 $9.25 to $14.30 $10.18 to $26.08 $10.18 to $25.01 $11.26 to $13.39 $8.23 to $46.34 $9.73 to $546.34 $10.35 to $46.22 $7.53 to $9.08 $8.97 to $11.95 $0.82 to $24.34 $2.10 to $25.05 $0.96 to $21.07 $0.96 to $30.70 $1.74 to $51.63 $2.36 to $51.63 $1.36 to $24.34 $2.97 to $105.57 $7.21 to $22.98 $3.90 to $13.10 $148.33 $210.00 $32.01 to $82.91 $30.23 to $83.40 $30.23 to $83.40 $29.92 $66.79 $63.09 / $61.28

140mm 140mm

Please check with retailer for current prices

269

$5.50 $7.45 269

Prices Exclude GST

MICO Pipelines: PVC Pressure pipe, metric pipe series (available in 6m lengths). PN 6 - Red print Diameter (mm) Socketed one end Size (mm) Rubber ring joint 50 to 65 $53.93 to $86.95 100 to 175 $163.93 to $459.48 80mm $111.17 200 to 225 $553.56 to $700.14 PN 9 – Blue print 50 to 65 $68.81 to $111.17 100 to 125 $236.92 to $773.22 80 to 100 $156.32 to $225.93 150 to 300 $459.06 to $1,456.56 PN 12 – Green print 32 to 50mm $55.81 to $84.69 100 to 125 $287.82 to $999.60 65 to 80 $139.06 to $198.11 150 to 225 $565.32 to $3,408.72 PN 15– Brown print 15 to 40 $28.61 to $68.55 100 to 125 $382.74 to $1,210.02 50 to 100 $99.27 to $271.10 150 to 200 $721.56 to $1,261.68 PVC Pressure Pipe Fittings Size Plain 90 Elbow Formed 90 Bend 15 mm to 32 mm $2.76 to $8.69 $6.70 to $18.01 40 mm to 80 mm $11.12 to $46.27 $26.26 to $95.82 100 mm $70.09 Alkathene Low Density Polyethylene Pipe Coil Length Pipe size and Price PN12.5 PN11 PN8.5 PN7 PN6 PN5 15mm 20mm 25mm 32mm 40mm 50mm 25m $19.81 $46.74 $57.21 $73.46 $83.44 $135.86 50m $49.02 $93.48 $114.45 $146.93 $166.87 $271.72 100m $81.70 $155.81 $190.75 $244.88 $414.07 $543.43 200m $196.08 $373.94 $457.80 $587.70 $667.47 Medium Density Polyethylene Pipe (9 Bar) Coil Length Pipe size and Price 20mm 25mm 32mm 40mm 50mm 50m $139.19 $171.18 $226.50 $332.17 $508.43 100m $277.90 $140.17 $193.80 $329.58 $470.30 200m $555.40 $280.34 $387.61 $608.51 $940.24 Medium Density Polyethylene Pipe (12 Bar) Coil Length Pipe size and Price 20mm 25mm 32mm 40mm 50mm 63mm 50m $153.59 $212.86 $287.21 $395.08 $630.51 100m $94.54 $151.04 $236.88 $377.05 $584.60 $748.68 200m $189.07 $302.08 $473.76 $754.11 $1,271.00 $1,497.76

Please check with retailer for current prices 270

270

Prices Exclude GST

Mico cont: Horticultural Lateral Tube. Coil Length

Pipe size and Price 13mm 16mm 25m / 50m $42.76 / $109.88 100m $71.49 $91.98 200m $267.21 $428.15 300m $400.58 $515.03 400m $285.99 $367.94 Effluent Pipe - medium density polyethylene pipe. Coil Length Pipe size and Price 63mm 75mm 50m $265.89 $398.31 100m $433.52 $796.63 Steel & Tube N.Z. Ltd.:2016 prices Galvanised wrought steel pipe fittings: Tee M & F Bend 90° Elbow Barrel Nipples Galvanised malleable fittings: Elbows - banded equal - banded reducing - banded 450 Tees - banded equal - banded reducing Plugs Ball chrome on brass, lever handle Valves (F&F) chrome on brass, lever handle (M&F) Jobe Valves Ltd: Reservoir Valves – Differential Valves 15mm 20 mm 25 mm Topaz $144.11 $144.11 $145.97 Vortex Trough valve – Megaflow Side and bottom entry Topaz Megaflow top, side or bottom entry Tank water level indicator

271

90mm $565.66 $959.25

10 mm $8.32 $7.50 $4.09 10mm $1.06 $1.40 $0.66 $9.96

20 mm $16.58 $18.51 $12.51 $2.05 20mm $1.31 $1.46 $1.40 $1.79 $2.15 $0.74 $17.35

40 mm $54.96 $37.32 $37.29 $4.37 40mm $3.92 $4.84 $4.35 $5.23 $6.09 $1.87 $55.81

$19.61

32 mm $168.05 $201.45

40mm $208.10

50mm $214.75

20 mm $39.97 $47.95

25 mm $40.83 $49.54

32 mm $46.42 $56.33 $152.88

15 mm $25.67

20 mm $25.67

Trough valve – Rojo float Side, bottom and top mounting Please check with retailer for current prices

19mm $267.18 $348.65 -

271

Prices Exclude GST

2.18.9 Rural Domestic and Stock Water Supply Charges Stock water is charged for in a number of different ways. Some examples only are quoted here. Note: These prices are all inclusive of GST. Tararua District Council Minimum charge per quarter of $116.62 for extraordinary users, plus a charge of $1.48 per cubic metre for consumption over 80m3 during that three-month period South Taranaki District Council Targeted rates for rural water supplies vary from $1.01 to $1.04 per m3. Buller District Council Rural stock water is charged at 63 cents per cubic metre. Rural domestic water costs $851 for the first 400 cubic metres and $2.18 per cubic metre thereafter. Kaikoura District Council East Coast Rural Water is $690.00 per water unit (1,800l /day / unit). Kincaid Rural Water is $160.54 per water unit (1,000l / day / unit). Oaro Rural Water is $273.88 per inhabited rating unit (1,000l / day / unit). Peketa Rural Water is $273.88 per inhabited rating unit (1,000l / day / unit). Selwyn District Council Stock water supply charges per m3 range from $16 to $23 per hectare or part thereof. Minimum charges range from $126 to $157, depending on location. Paparua have a fixed annual charge of $209. Gore District Council Gore and Mataura: $325.44 is charged for each separately used or inhabited part of a rating unit that is connected to either the Gore or Mataura water schemes. Parks & reserves rural rate for a property valued less or equal to $149,000 is $207.97. For a property valued at 149,001 and above is $349.79 Otama Water Scheme: Water costs $200 per water unit, plus $215 per water connection. Users of the scheme are charged $0.75 per cubic meter of water metered

Please check with retailer for current prices

272

Prices Exclude GST

2.18.10 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 non-exercise $517.50 Certificate of compliance $1,196 Transfer of consent $103.50

Certificate of compliance & Existing use cert. Transfer of consent Consent Descriptions Coastal permits (excl moorings), land use, water and discharge permits Coastal permits (excl moorings, bore drilling) water, discharge, incl dairy effluent, domestic on-site wastewater Moorings Bore Drilling Permits Plus per additional bore Domestic On-site Wastewater Discharge(Replacement non-notified) Other Deposit Charges Transfer existing water permit between sites within catchment Change/cancellation consent conditions

Fixed Initial Deposit $495.00 ea $85.00 Minimum Estimated Initial Deposit New NonNotified & Lmtd notified $3,296.00 $879.00 $604.00 $361.50 $37.50 $550.00

$1,648.50 n/a n/a n/a

$482.50

$769.50

$494.50

$1,153.00

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 (+ any non-compliance fees) $300.00

Please check with retailer for current prices

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Consent Applications Charges from Hawkes Bay Regional Council: GST incl Fixed Charges payable for processing Resource Consent Applications Item Initial fixed fee Additional Charge Certificate of Compliance - Bore Sealing No charge N/A - Other $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 2.18.11 Irrigation Equipment - Pastoral and Horticultural (i) Low Pressure Systems Farmlands Farmcentre: 32mm or 40mm Irripod with Naan 5022 sprinkler head 32mm or 40mm K Line Skid Complete Naan Sprinkler K Line 1ha Farmpack (Incl 100m pipe and accessories) Ecostream Irrigation: Irrigation Equipment â&#x20AC;&#x201C; Pastoral & Horticultural Ecostream Irrigators Travelling Irrigator - low pressure, continuous drive (many optional extras available at an additional cost) Raingun on Skid All prices exclude GST & Freight Source: Grant Titchiner, Ecostream Irrigation, May 2018

$15.27 $92.78 $941.67

$5,000 $3,000

IrriPod Ltd: Irripod Irrigation System, available in LDPE 32mm, 40mm and 45mm. Indicative costs / ha include Irripod fittings, mainline and pump. Average cost / ha of flat terrain is $900 to $1,400. Average cost / ha of rolling terrain is $1,400 to $2,000.

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(ii) Travelling Irrigators Rainer Irrigation Ltd: Briggs Model 200 Roto Rainer and Hose Trailer (Standard) $52,490.00 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 Roto Rainer (Folded) and Hose Trailer (Standard) $29,590.00 Briggs Model 25 Roto Rainer (Extended) & Hose Trailer (Standard) $31,040.00 Briggs Model 25 Trailer $6,700.00 Briggs Model 10 Roto Rainer Standard (Effluent Irrigator) $4,780.00 Briggs Model 15 Roto Rainer Standard (Effluent Irrigator) $7,470.00 Briggs hose trailer $6,700.00 to $11,200.00 Hoses (Angus) 65mm to 75mm $18.40 to $35.90 per metre 89mm to 100mm $41.30 to $53.70 per metre 114mm to 125mm $55.70 to $59.22 per metre Underground Mainline (PVC pipes) Class B (per metre) 80 / 100 / 125 / 150 / 175 / 200mm $7.35 / $9.50 / $13.30 / $16.70 / $23.95 / $28.86 Hydrant outlets cost $170.10 to $819.00 ea. Trenching and laying costs $3.50 to $5.50/m. PGG Wrightson Water: Ocmis Hard Hose Irrigator R2/1 90mm x 300m / R3/1 110mm x 300m R4/1 110mm x 450m / VR6 125mm x 400m

$29,900 / $35,500 $48,500 $53,000

(iii) Centre Pivots PGG Wrightson Water: Centre Pivot Length 400m 500m 600m 700m

Price $140,000 $180,000 $220,000 $250,000

Components for Irrigator Fence Crossing Systems Gallagher: indicative retail pricing only Spring Double Loop (10 pack) Pivot Pipe (10 pack) Anchor Rope D Shackle (10 pack) Anchor Post Y post (10 pack) Clip Wire Anchor (20 pack)

$29.03 $60.61 $38.10 $41.76 $18.13

Components for Water Monitoring System (Gallagher) 1 Tank Kit â&#x20AC;&#x201C; Wall Mount 1 Tank Kit â&#x20AC;&#x201C; Desktop Pump Controller Please check with retailer for current prices 275

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$601.56 $601.56 $371.38 Prices Exclude GST

2.18.12 Irrigation Equipment - Horticultural Daltons Ltd â&#x20AC;&#x201C; Matamata: DRFOG400AL Aluminium watering nozzle DRFOGC610H range Misting nozzle DRFOG510 Seedling nozzle Egmont Commercial Ltd: Dutch water spikes Price per spike quantity 1-999 Whisker micro tube - 1.27mm bore size. 200m coil Watering wand Lateral tube 13mm /19mm / -per 50m coil Sprinkler tube PVC 4mm internal diameter - 50m roll Elbow barbed fitting 13mm /19mm Joiner barbed -13mm / 19mm Tee barbed -13mm 25mm Cray Clip -13mm /25mm Quick action shut off valve- 13mm /19mm End Plug -13mm Inline Filter 13mm / 19mm / Increasing Tee / 13-19 Reducing Tee 19-13mm Reduce Joiner 16-13mm

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$30.98 $22.04 to $22.05 $21.14 $0.16ea $66.00 $28.80 $34.75/$53.00 $41.00 $0.39 / $0.67 $0.35 / $0.49 $0.57 / $0.76 $0.24 / $0.28 $2.95 / $5.80 $2.25 $6.00 / $7.30 $1.84 $0.99 $0.64

Prices Exclude GST

2.18.13

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. Some examples of water charges for the 2017/2018 season for community irrigation schemes in the South Island are as follows: Scheme Charges Amuri Irrigation Co  Each share entitles the shareholder to 0.6 litres of water per second. This is deemed to be sufficient to irrigate one hectare of land.  If you still receive water via a main race the annual chares are $77+GST per share per year. (This covers approx. 18% of shareholders)  If you are in Zone B you receive piped water under pressure. The annual charge for this is $267+GST per year.  If you are in Zone C (approx. 2% of shareholders) you’re charged $267+GST plus an additional charge specific to your particular farm and location. Ashburton Lyndhurst Irrigation Ltd August 2017 prices

$1.24/share Main Scheme Charge $0.83/share Ponds and Telemetry Charge $2.07/share Total Annual Charge Annual admin fee $85 Stage 2 piping shares with pressurised water an additional $4.19 per share Turbine scheme % share $825 for the total season.

MHV Water Ltd (2017/18 charges. Invoiced on a monthly basis) MN Shares MG Shares Piped Water $8.52 p/a $8.52 p/a Open Race Water $2.19 p/a $2.19 p/a Lower Waitaki Irrigation Co.

MV Shares $2.95 p/a N/A

$50.00 / ha spray irrigation (on demand) $57.50 / ha for borderdyke irrigation (16 day rotation)

Morven, Glenavy and Ikawai Irrigation Co - Borderdyke 1,000mm (10 waterings) 810mm (8 waterings) Additional water - Spray 610mm 770mm 610mm (Additional water spray) Please check with retailer for current prices

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Valid to June 2016 $70.00 per ha for 14 day roster $58.60 per ha for 17 day roster $12.00 per hour 152 days (4mm) $48.60 per ha 154 days (5mm) $57.75 per ha North Extn Pressure $60.00 per ha $12.00 per 1800 m3 or part thereof 277

Prices Exclude GST

2.18.14 Irrigation Scheduling Service HydroServices: Provides agricultural and horticultural properties with irrigation management advice, based on weekly soil moisture measurements in selected paddocks / blocks / crops on the property. Canterbury / Otago: Fees per site depend on the number of sites per property / farm. Dairy Pasture $1,184.00 for 1 site to $827.00 for more than 7 sites Arable - short rotation $535.00 for 1 site to $371.00 for more than 7 sites Arable - long rotation $909.00 for 1 site to $675.00 for more than 7 sites Vineyards $909.00 for 1 site to $675.00 for more than 7 sites North Island Fees per site depend on the number of sites per property / farm. Pasture $1,222.00 for 1 site to $956.00 for more than 7 sites Arable $855.00 for 1 site to $642.00 for more than 7 sites Vineyards $1,329.00 for 1 site to $960.00 for more than 7 sites System Evaluation Provides irrigation system evaluation, measuring system pressure, flow and distribution uniformly. The report identifies whether the system meets design specifications and / or remedial work to improve efficiency. Canterbury / Otago / North Island Fee per system evaluation Single -centre pivot, no cnr arm, linear move, travelling irrigator Centre pivot with corner arm

$2,000 to $2,500 $2,500 to $3,000

Field Calibration Provides field calibration of telemetered soil moisture sensors to provide field capacity and refill points based on soil type Fee per Soil Moisture Sensor $600 2.18.15 Irrigation Earthworks Storage ponds for irrigation systems Earthmoving to create a pond 5ha x 2.5m deep (125,000m3) Prices would be from $2.50 - $3.50 / m3. ($312,500 to $437,500)

Please check with retailer for current prices

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Prices Exclude GST

2.18.16 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 $4,000 - $4,750/ha drains. Metal backfill. 40m spacings 110mm Nexus smooth bore pipes discharging into open $2,500 - $2,750/ha drains. Turf backfill. 40m spacings 160mm mainlines where no open drains present approx $1,200 - $1,700/ha Mole ploughing after drainage pipes laid $150 - $200/ha Blackley half page advt here

â&#x2013; WE DO LAND DRAINAGE â&#x2013; services@blackley.co.nz

+64 6 356 5557

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www.blackley.co.nz

Prices Exclude GST

Hynds Rural: Land Drainage Coils (Freight not included) Corrugated PE Coiled pipe 110mm x 30m Corrugated PE Coiled pipe 110mm x 100m FarmBoss Culvert Pipe (6 m lengths) Polypropylene, Twin wall, Smooth Bore, Corrugated Pipe 225mm Polypropylene, Twin wall, Smooth Bore, Corrugated Pipe 300mm Polypropylene, Twin wall, Smooth Bore, Corrugated Pipe 375mm Polypropylene, Twin wall, Smooth Bore, Corrugated Pipe 450mm

$147.51 $488.70 $244.14 $402.68 $577.06 $875.11

MICO Pipelines: PVC culvert pipe, available in 3 and 5 metre lengths Pipe Size Pipe 160mm 200mm 250mm 315mm 400mm 500mm Length 3m $96.24 $140.16 $241.30 $420.46 $718.02 5m $160.06 $158.30 $225.68 $390.32 $674.10 $1,135.25 Nexus Novaflow - land drainage system. Nexus Novacoil - unpunched, slotted / unslotted. Diameter Length Price Pipe low drainage slotted nexus 110mm 15m $111.43 & 110mm 30m $222.87 Pipe low drainage unslotted coil 110mm 30m $222.87 110mm 100m $685.68 160mm 45m $696.47 160mm 185m $2,862.90 Novaflow - land drainage system and Novacoil â&#x20AC;&#x201C; unpunched pipes are low-density drainage, corrugated, unslotted range. Coil length 65mm 110mm 160mm 15m $65.15 $81.67 $183.94 30m $127.61 $163.32 45m $502.43 50m 100m $500.51 150m $638.06 Nexus Hi-Way Drain, Heavy Duty Diameter Length Price Pipe corrugated high density polyethelene 200mm 5m coil $337.94 Pipe culvert twin walled polyethelene nexus 110mm 5m $62.13

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Concrete Culvert Pipes

Hynds Rural: (Freight not included) Farm grade seconds (Hydrain) Spun Concrete Culvert Pipes 225mm up to 3050mm x 2.5m lengths Price range: 225/300/375/450 $120/$190/$230/$300 525/600/675/750 $400/$500/$530/$650 825/900/1050/1200 $750/$950/$1,300/$1,550 1350/1600/1800/1950 $1,700/$2,300/$2,800/$3,000 2100/2300/2550/3050 $3,200/$3,400/$3,650/$4,000 Backfill Gravel See Shingle Products, Section 2.21.19

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2.18.17 Dairy Shed Effluent Disposal See also Section 2.18.5. Ecostream Irrigation: Typical Farm Dairy Effluent System for a 300 cow Farm 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 mÂł capacity ** Storage pond emptied by a contractor 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 Annual Operating Costs Storage pond pumping, repairs & maintenance Labour for shifting irrigator Electricity Pump & Irrigator repairs and maintenance Depreciation 10 to 20+ year life

Total

$800 $44,000 $2,500 $11,000 $6,050 $1,020 $1,500 $4,100 $3,300 $7,600 $2,900 $1,600 $5,400 $18,400 $110,170

$4,900 $2,800 $1,300 $2,400 $6,700 Total $18,100 The annual nutrient value of fresh dairy effluent from 300 cows is approximately $8,100 All prices exclude GST & Freight Source: Grant Titchiner, Ecostream Irrigation May 2018

Please check with retailer for current prices

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Prices Exclude GST

Modular Precast Concrete Panel Effluent Ponds

Hynds Rural: (Freight not included) Hyponds Modular Pre-cast concrete Effluent Storage ponds $10,500 to $17,500 40,000 to 140,000 litres capacity Megaponds Modular Pre4cast Concrete Effluent Storage ponds $25,000 to $98,000 250,000 to 4 million litres capacity. 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) $5300.00 Stone Trap Hynds Rural: (Freight not included) ST4000 Modular drive-in Stone Trap3000mm wide x 4000mm deep POA ST4000S $2,467.13 A precast / sundry component only; does not include excavation or concrete floor. 2.18.18 Septic Tanks Concrete Hynds Rural: (Freight not included) Standard Precast Septic tanks (Pumps extra)

$1,800 - $4,500

Plastic Devan: (North Island prices, Delivery charges will apply where ferry required) Devan Septic 3,600 litre Devan Septic 5,700 litre

Please check with retailer for current prices

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Prices Exclude GST

$2,565 $4,452

2.19 FENCING COSTS 2.19.1 Guide to Fencing Costs Materials plus Erection Cost for a standard fence North Island Morice Ltd & Farmgear (HB): Napier Cost per metre for a typical 400m North Island sheep and cattle fence â&#x20AC;&#x201C; quarter round #2 posts 5 metres apart, 8 wires (1 braid, seven 12.5G steel) 5 battens per bay, two 12ft mesh gates. Total materials $ 6.64 per metre Lay cost $2.50 per metre Erection cost $10.00 - $14.00 per metre (average) with $15.00 - $25.00 per metre (steep) 2.19.2 Full Contract Fencing Rates Summerfield Fencing: Overview of Fences The fences we have priced are what we consider to be the most common fences in Canterbury. Sheep netting fence, with posts at 7 m spacings and a hot wire on top. This fence is suitable for most stock as the netting is good for lambs and the hot wire is good to keep cattle off the fence. It is a very suitable boundary fence also and is in a good price range. A Deer netting fence with posts at 7m spacings is another good fence. For dairy fences the 2-wire paddock fence with no stays and the 3-wire lane fence with stays are the most common. For medium hill country fence, netting is always preferable, but if the ground is too undulating, a 7 or 8 wire fence with posts at 9 m spacingâ&#x20AC;&#x2122;s with 3 steel Y posts in between would be the fence of choice. Medium Hill Country is described as being easily accessible for 4-wheel drive vehicles and tractors and is priced in dry conditions. Pricing does not include tie downs. Steep Hill Country is described as being accessible for 4-wheel drive tractor and post driver to be able to drive in the posts. Priced in dry conditions and includes tie downs. In Canterbury we find it is better to spike every hole as it is faster and neater in the end result rather than having to spend time trying to get a post in straight, in hard ground without a spiked hole first. The ground in Canterbury varies considerably from place to place, and it is only with so many years of experience that we can estimate how many posts we can drive per hour due to the type of ground we are driving into. We grade our degree of ground type by: Soft Driving - 30 to 35 intermediates per hour and 8 to 10 strainers per hour. Medium Driving - 20 to 30 intermediates per hour and 7 strainers per hour. Hard Driving - 15 to 20 intermediates per hour and 6 strainers per hour. Please check with retailer for current prices 284

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Very Hard Driving - 12 to 15 intermediates per hour and 4 to 6 strainers per hour. The reason why a “shorter” fence of say 100 metres or 50 metres, is more expensive than a 300m fence, is because there is considerable cost in getting the tractor and post driver to the work site, setting it up ready for working, packing it up and driving it away again, and this cost is the same whether the completed fence is 300m, 100m or 50m. The same goes for the Tool Box Safety meeting, the stay assemblies, tying on the netting or the wires. The variables in the different length fences are the amount of material to get to the site, the number of posts to lay out and drive, the marking of the line, the amount of netting and/or wire to run out and staple. The total cost divided by 300 is a lot less than the total cost divided by 50 even though some of the individual costs are less. I hope this explains why the cost per metre is higher for a shorter fence. We have based our pricing on one strain in a straight line  with drive along easy access for the tractor and Post Driver,  in dry conditions  on flat open terrain  on a clear line  experienced and competent operator  spiking every hole  ground being classed as medium driving  horizontal strainer assembly at each end  no gateways  includes materials, labour and post driver charges  2 staff on site because the post driver is classed as a hazardous machine and for Health & Safety purposes they are watching the safety of each other There would be extra time and therefore cost involved  if the line was close to trees or other such obstacles  each post had to be driven in by backing the tractor into the line instead of driving along the line.  If there were Pivot crossings for dairy fences  If there were any batons or droppers involved Our pricing allows for delivery of tractor and post driver to site, delivery of materials to site. These are a guesstimate only, as it is not known exactly where the tractor and post driver will be when required for the job and also where the material can be sourced for the job. It is quite usual to have to purchase materials from many suppliers for every job. Another item allowed for in the pricing is the regulation for the Health and Safety Tool box meeting at the start of every day. i.e. identify hazards, place work place and work site signs, notify the Client you are on the property, establish that staff on site are competent and trained for the tasks for the day. Other tasks allowed for in pricing are – getting staff to the work site, laying out of material, marking the line, driving all posts, 2 horizontal stay assemblies, stapling, netting or wire as described for each fence. This is referred to as the Labour component. Please check with retailer for current prices 285

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There is another charge out rate for the use of the tractor and post driver. This is only charged out for the time it is actually working, not the time on site. So this is, per Post Driver hour. The materials we have used for the pricing calculations are: (All posts are round posts) Sheep fence strainers 2.1 x 175 Sheep fence intermediates 1.8 x 125 Sheep fence stay posts 2.4 x 125 Netting – tightlock 8/90/30 Wire – HT tensile 2.5 Deer fence strainers 3 x 175 Deer fence intermediates 2.7 x 125 Deer fence stay bars 2.7 x 125 Netting – tightlock 13/190/30 Staples – barb 5 x 40 End Insulators Wooden post claw insulators Permanent strainers FENCE 1 – Sheep Netting Fence – posts at 7 metre spacing’s, hot wire on top. Flat ground. 300 metres $11.85 per metre 100 metres $19.00 per metre 50 metres $27.00 per metre FENCE 2 – Sheep Netting Fence – posts at 7 metre spacing’s, hot wire on top. Medium Hill Country. 300 metres $12.40 per metre 100 metres $20.05 per metre 50 metres $28.10 per metre FENCE 3 – Sheep Netting Fence – posts at 7 metre spacing’s, hot wire on top. Steep Hill Country. 300 metres $15.75 per metre 100 metres $22.90 per metre 50 metres $32.35 per metre FENCE 4 – Sheep Fence – 7 wires, posts at 9m spacing’s with 3 steel Y posts in between, including tie downs. Steep Hill Country 300m $14.95 per metre 100m $24.75 per metre 50m $36.25 per metre

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FENCE 5 – Deer Netting Fence – posts at 7m spacing’s. Flat ground 300 metres $16.20 per metre 100 metres $20.50 per metre 50 metres $29.20 per metre FENCE 6 – Deer Netting Fence – posts at 7m spacing’s. Medium Hill Country 300 metres $17.20 per metre 100 metres $21.55 per metre 50 metres $30.50 per metre FENCE 7 – Dairy Paddock Fence – 2 wire electric, 20m spacing’s, no stays. Flat ground. 600 metres $1.40 to $1.50 labour only charge per metre. FENCE 8 – Dairy Lane Fence – 3 wire electric, 12m spacing’s, with stays. Flat ground. 300 metres $2.30 labour only charge per metre 2.19.3 Electric Fences Materials plus Erection Cost for a standard electric fence North Island Morice Ltd & Farmgear (HB): Napier Cost per metre for a typical 400m North Island sheep and cattle electric fence – quarter round #2 posts 8 metres apart, 4 electrified wires. Total materials $ 2.73 per metre Lay cost $1.50 per metre Erection cost $7.00 - $10.00 per metre (average) 2.19.4 Wire (see also Section 2.19.8 Wire Netting) A Company: Barbed wire standard 2.5mm, 75mm 150mm Reverse twist 1.6mm HTR 100mm 150mm Lacing wire 2.0mm 1.6mm PGG Wrightson Ltd: Wire Soft: Hispan: (high tensile steel) Barbed HT RT

25kg coil

$161.99 $145.99 $155.65 $145.20 $40.86 $42.60

25kg coil 5kg 5kg

4.00 mm x 253m 2.50 mm x 650m 1.6 x 100mm x 500m

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287

$ / 25kg coil $129.57 $73.91 $155.65

Prices Exclude GST

2.19.5 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 – Placemakers: 100 x 75mm 100 x 100mm 125 x 75mm

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 3.0m x 150 3.0m x 175 3.3m x 150 3.3m x 175 3.3m x 200 1.07m x 50 x 40 1.17m x 50 x 40

$27.60 $29.20 $33.85 $45.45 $53.85 $49.10 $56.50 $71.05 $2.26 $2.59

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

A supplier: Fencing standards Imports 1.5m / 1.65m / 1.8m

Please check with retailer for current prices 288

$4.50 / $5.00 / $5.30

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Prices Exclude GST

2.19.6 Gates Electric Spring / Tape Gates Gallagher: indicative retail pricing only Insulated Handle G60630 Soft Touch Handle Kitset for Gate (tape not included) Spring for gate kit (galvanised / white) Gate, tape complete with handle and insulator Gate, bungy kit complete with handle and insulator (3.5m and up to 11m) Gate anchor three way 5 pack

$3.78 $7.96 $21.92 $23.36 $22.32/$25.83 $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) (white) $64.02 Steel Gates PGG Wrightson Ltd: Farmgates: Economy Deer gates: 1.55m high 1.90m high A supplier: Farmgates Economy Cattle Stock Master Deer - 1.9m

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 Price $181.99 to $224.99 $214.99 to $264.99 $225.22 to $255.65 $158.25 to $267.82

3.05m to 4.25m 3.05m to 4.25m 3.66m to 4.25m 3.05 to 4.25m

2.19.7 Precast Cattle Deterrent and Cattle Stops with Galvanised Pipe tubes

Hynds Rural: (Freight not included) Product Code Description CS1.2MC Cattle Deterrent â&#x20AC;&#x201C; 1200mm x 2200mm CS1.5MC Cattle Deterrent â&#x20AC;&#x201C; 1500mm x 2200mm Hystop Std One piece Cattle Stop-3240 x 2550 x 370mm Hystop Wide One piece Cattle Stop-4610 x 2550 x 370mm Please check with retailer for current prices 289

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Retail $956.76 $956.76 $4,513.05 $5,963.25

Prices Exclude GST

2.19.8 Wire Netting Placemakers: Galvanised hexagonal wire netting 900 x 13 x 0.7mm / 900 x 50 x 1mm

$154.95 / $84.50 per 50m roll

PGG Wrightson Ltd: (100m rolls) 8 line 900 mm / 800mm high, 300 mm spacings 7 line 900 mm high, 150mm spacings Tightlock Deer (100m rolls) 16 line 1900mm high, 240mm spacings 13 line 1900mm high, 150 / 300mm spacings 11 line 1550mm high, 150 / 300mm spacings

$164.34 $399.13 $607.83 $520.87 / $364.35 $538.26 / $399.13

A supplier: High Tensile 2.5mm Boundary Fence: Stay tight 100m 13 / 190 / 15 13 / 190 / 30 11 / 155 / 15 11 / 155 / 30 8 / 90 / 30 8 / 80 / 30 Stay tight 200m 6 / 70 / 30 2.5Ht Hi-Performance Wire

$398.00 $266.00 $404.35 $284.20 $167.60 $163.00 $363.40 $129.70

2.19.9 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 $3.30 $15.64 $138.26

Te Pari Ltd: Tedmon Netting Strainer

$55.00

Fencing Tools Te Pari Ltd: Gudgeon Guide Pack

$300.00

Gallagher: indicative retail pricing only: Pliers, side cutting Wire twisting tool

$98.00 $9.69

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Prices Exclude GST

Farmers

PGG Wrightson Ltd: Post rammer pipe complete Post hole rammer strain rite AHM spade, long handle Shovel #2 Atlas D Handle, Sq Mouth AHM Crowbar 1.75m x 32mm Gudgeon thru post range of sizes 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

$69.55 $56.51 $56.51 $56.51 $117.36 $11.30 to $13.90 $16.51 $16.51 / $18.25 $8.25 $19.99 $1.73 to $2.25

Hydraulic Post Drivers Fairbrother Industries Limited: (Kinghitter Hydraulic Post Drivers) All prices subject to change Series I Rancher Freestanding, leg, 3.8m mast 150 x 75 UB beam (205kg) 3 bank valve, manual adjustment Series I Deluxe Freestanding adjustable leg, 227kg hammer-4m mast, 180UB beam, 3 bank valve, Hyd angle adjustment Series II Telescopic beam 3.1m-5m. 340kg lead hammer, 6 bank Expander hydr valve. Series 2 4m 150UC mast, 250kg hammer, 3 bank hyd valve, hyd Rear Mounted top link, angle adjustment Series 3 Side 4m 150UC beam, 250kg hammer, 4 bank valve, hyd Mounted top link and adjustment, 450mm side shift TT Terminator 4.25m, 150UC mast, 250kg hammer, hyd hinge, 6 Beam and Base bank, 250mm mast shift, 900mm terminator base Additional options also available for each model

$7,035 $7,770 $20,995 $11,025 $15,960 $28,920

Taege Engineering Ltd: (freight to be arranged) Hydraulic Post Drivers: Farmers units: Farmer 700 1 spool control bank, hydraulic monkey ram, 50mm $8,372 shaft, manual mast angle shift, 320kg monkey, heavy duty frame, 4m mast, wooden post / spike cap. Contractor 4 spool ctrl bank, 4 m mast, 270kg monkey, ½” wire $18,226 rope, adjustable legs, hydraulic top link 300mm stroke, hydraulic mast angle, 200mm movement, post cap. Optional Extras for Farmer Unit at time of ordering Monkey Upgrade 320kg / 385kg $364 / $672 Bosses, Pin & Chain per pair $432 Sliding Side Shift Upgrade 300mm / 600mm $350 / $1,674 Contractor Hydraulic End Shift 170mm $3,000 Hydraulic Easy-Spike Unit 90mm $4,889 Hydraulic Fold Down Mast 4.6m $2,126 NB: These are guidelines only as all equipment is made to individual specifications with optional add-ons available. Please check with retailer for current prices 291 Prices Exclude GST 291

Post Hole Borer Makita Outdoor Power Equipment:

BBA520 – Posthole Borer, Single man unit, Power Head only. Augers available 100, 150, 200 & 250mm

2.19.10 Electric Fence Energisers Gallagher: indicative retail pricing only Mains Energisers M10,000i M5800i MB2800i MB1800i Mains Powered Powerplus M300 Powerplus M600 M1000i Battery Powered B40 – suitable for 2 hectares Solar Powered S10 Portable – suitable for 1km S20 Portable – suitable for 2km

$3135.61 $1672.47 $1327.00 $988.59 $455.12 $640.33 $795.96 $263.50 $195.43 $321.47

2.19.11 Insulators Gallagher: indicative retail pricing only Plastic: High Strain Insulator White – 5pk Wood post Claw Long Life Brown – 25pk Pinlock wooden post / Y steel post – 25pk Wood post Insulator 40mm tape – 25pk Offsets – pigtail offset 175mm / 400mm – 5pk

$11.23 $14.88 $15.53 / $19.70 $45.03 $12.92 / $15.79

Beattie Insulators: Wooden post insulators Wooden post insulator with nylon insert / claw insulator Waratah or Y Post pinlock insulators * Flat standard insulators to pinlock * Y post insulator (temp) Strainer / corner insulators Wire Outriggers Pigtail outriggers Rod Insulator, 10mm Pinlock Rod (200 per pack) Plastic black end strainer (25 pack) Porcelain Reel Insulator, 40mm x 40mm (10 pack) High Strain White end insulator (25 pack) *With nuts and bolts for fastening.

Please check with retailer for current prices

292

$999.13

292

$0.42 to $0.57 $0.70 / $0.59 $0.44 to $0.70 $0.60 to $0.75 $0.60 $1.43 to $1.90 $2.56 to $2.82 $2.27 to $3.90 $0.43 each $1.43 each $1.51 each $1.90 each

Prices Exclude GST

2.19.12 Electric Fence Reels and Wire Gallagher: indicative retail pricing only Reel Geared 200m Poly Tape / 500m Wire Reel Geared Triple Set 400m Turbo Braid Reel stand (1 to 4 reels) Reel stand (1 to 3 reels) Lead, connector for single reel Lead, connector for multi reels Wire and Tape: Wire Lead Out High Conductive 1000m Polywire - Ultra white, 6 strand, 200 / 500m Turbo Wire - white XL, 9 strand, 200 / 400m Polytape - white, 5 strand, 200m Turbo tape - white, 200 / 400m Turbo Rope - 200 / 500m Smart Fence Portable 100m with standards Electric Netting - Euronet 50m

$109.30 $590.70 $84.33 $50.17 $8.61 $18.26 $692.29 $29.23 / $43.53 $51.68 / $97.59 $45.29 $50.80 / $100.61 $252.62 / $492.11 331.37 $258.58

PGG Wrightson Ltd: - Electric Fence Wire Lacing wire galv, 1.6mm x 630m / 2mm x 410m

$108.70

Beattie Insulators: Fence Reel (unbreakable bobbin) Megawire (white/red stripe) Megawire (white/red stripe) Powertape (white)200m Powertape (white)400m Megatape (white/orange stripe) Megatape (white/orange stripe)

$45.50 $49.54 $100.08 $40.29 $72.88 $51.37 $94.40

9 wires, S/S, 200 metres 9 wires, S/S,400 metres 6 wires, S/S, 6 wires, S/S 10 wires, S/S, 200 metres 10 wires, S/S,400 metres

2.19.13 Electric Fence Standards / Outriggers Gallagher: indicative retail pricing only Treadin Multiwire Plastic White Treadin Multiwire Heavy Duty â&#x20AC;&#x201C; 5pk Extenda-post (heavy duty tread-in with extension) â&#x20AC;&#x201C; 5pk Pigtail standard (white plastic coated) 10 pack Fibreglass: Post 1200 x 10mm 10 pack Post 1500 x 10mm Post 2000 x 10mm (white) Quick Clips 10mm 10 pack Pressure Plate (for 10 and 13mm) Cap driver Please check with retailer for current prices

293

$4.35 $29.56 $46.45 $36.63 $59.24 $6.58 $8.32 $6.65 $9.79 $22.97 Prices Exclude GST

2.19.14 Electric Fence Cable Gallagher: indicative retail pricing only 2.5mm undergate double insulated cable (50m) Leadout cable, XL high conductive, 100m

$67.69 $151.52

Beattie Insulators: Underground Cable - 2.5 mm x 25 metres(heavy duty) - 2.5 mm x 50 metres (heavy duty) - 2.5 mm x 100 metre (heavy duty) - 2.5 mm x 250 metre (heavy duty)

$27.29 $48.80 $95.69 $244.03

2.19.15 Electric Fencing Accessories Jenquip Ltd: (prices include delivery) Electric fence power probe Safe Break

$182.61 $7.00

Gallagher: indicative retail pricing only Testers Fault Finder Digital volt meter Live Fence Indicator Batteries Dry cell Low loss Earthing Equipment: Galvanised joint clamp 10 pack Screw in tie down (galvanised) 5 pack Screw in tie down handle Earthing stake, galvanised 2.1m Earth clamp Gallagher super earth kit 2.19.16 Staples PGG Wrightson Ltd: Barbed staples galv A supplier: Barbed

40 x 4.0 / 50 x 4.0 (25 kg box) 40mm x 5kg 40mm x 25kg 50mm x 5kg 50mm x 25kg

$201.45 $142.46 $40.98 $80.78 $459.99 $17.23 $50.08 $108.17 $31.06 $6.00 $194.05

$129.57 / $126.09 $32.99 $122.99 $28.99 $119.99

Please check with retailer for current prices

294

Prices Exclude GST

2.20 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. 2.20.1 Vehicles â&#x20AC;&#x201C; Price Range These are guidelines only - please refer to later sections for details of specific models. Tractors (see Section 2.20.3) The tractor prices below show price ranges for different sizes (power ratings) but they also indicate the price range for different models/brands (2WD and 4WD). Range 0 to 37 kW (0 to 50 hp) $25,990 to $31,990 38 to 79 kW (51 to 106 hp) $44,500 to $94,129 79 to 147 kW (106 to 200 hp) $59,990 to $165,000 Over 148 kW (over 201 hp) $165,000 to $410,000 Farm Bikes (see Section 2.20.4) 2 wheel 4 wheel (2 or 4 WD)

$3,217 to $7,817 $6,430 to $25,213

Trucks and Utilities (see Section 2.20.15) There are a range of models with differing cab/deck arrangements, mostly with a choice of fuel type and 4WD option. 2WD vehicles $27,817 to $38,687 4WD vehicles $36,078 to $79,991

Please check with retailer for current prices

295

Prices Exclude GST

2.20.2 Implements and Plant â&#x20AC;&#x201C; Price Range Please refer to later sections for details of specific models. Mowers (see Section 2.20.5) Drum or Disc $15,500 to $70,450 Mower Conditioners $36,500 to $88,000 Hay Rakes and Tedders (see Section 2.20.6) Hay Balers (see Section 2.20.6) Conventional Big balers - Round - Square

$15,000 to $140,300 $39,900 to $46,000 $75,100 to $185,000 $222,800 to $315,000 Range

Ploughs (see Section 2.20.16) Depending on the number of furrows and tractor mounting $20,340 to $58,320 Discs (see Section 2.20.16)

$37,310 to $82,705

Harrows (see Section 2.20.16)

$725 to $8,495

Power Harrows (see Section 2.20.16)

$18,000 to $72,000

Rollers (see Section 2.20.16) Cambridge rollers Rubber tyre rollers

$15,800 to $19,850 $9,715 to $25,990

Drills (see Section 2.20.17)

$18,723 to $168,400

Please check with retailer for current prices

296

Prices Exclude GST

2.20.3 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. CLAAS: (Landpower NZ Ltd) Arion 430 120 hp with front-end loader Arion 630C 155 hp w/out front-end loader

$112,500 $130,500

Another company: Kioti: 30 to 55hp 4WD ROPs excel loader 60 to 105hp 4WD CAB Deutz-Fahr: 80hp to 115hp ROPs excl loader 80hp to 115hp Cab excl loader 130hp to 205hp Cab Utility Loader

$20,990 to $31,990 $45,990 to $59,990 $44,500 to $85,500 $59,990 to $96,250 $108,000 to $165,000 $6,750 to $20,625

Drummond & Etheridge Ltd - John Deere tractors: Model 5000 Series 65 to 125 hp 6M Series 110 to 195 hp 6R Series 110 to 215 hp 7R Series 200 to 310 hp 8R Series 245 to 400 hp New Holland: (C.B. Norwood) Utility and Special Tractors: T4F Series T4N Series T4V Series TD5 Series T5 Series High hp Tractors: T6000 Series - 4WD T7 Series T8 Series

4WD $30,000 to $115,000 $78,000 to $165,000 $98,000 to $240,000 $190,000 to $390,000 $240,000 to $410,000

74 to 106 hp 76 to 106 hp 59 to 106 hp 75 to 110 hp 95 to 115 hp

$54,996 to $94,129 $58,918 to $88,601 $51,498 to $85,630 $57,537 to $80,803 $98,137 to $111,800

112 to 141 hp 125 to 315 hp 245 to 335 hp

Please check with retailer for current prices

297

$99,746 to $147,925 $152,906 to $304,734 $280,675 to $ 385,657

297

Prices Exclude GST

2.20.4 Farm Bikes, Bike Trailers and Accessories. Blue Wing Honda ATVs: All utility ATVs supplied with free Ag-helmet, safety video/DVD and free rider training for one rider TRX680FA auto 680cc Auto IRS $16,517 TRX500FA6 auto 500cc Power Steering $16,517 TRX500FM1 man 500cc Rigid beam rear axle, manual only gear box $14,343 TRX420FA2 auto 420cc Power steering, EPSauto, twin clutch $13,909 TRX420FM2 man 420cc Rigid beam rear axle,pwr steer,EPS man 5 spd $13,039 TRX250TM man 250cc 2WD $8,691 Motor Cycles: XR190CT 2 wheeler 185cc LAMS $4,778 XR150L 2 wheeler 150cc LAMS $3,738 CRF230F 2 wheeler 230cc Trail bike $6,956 CRF250L 2 wheeler 250cc LAMS $7,822 MUV: Pioneer 700-2 $21,735 Pioneer 700-4 $23,474 Kawasaki: (Norjo Motorcycles.) ATV/UTVs: KVF300 KVF750 EPS KAF400 600 Mule KAF400 610 Mule/ XC Big Foot KAF400 620 Mule 4010 FI P/S â&#x20AC;&#x201C; A Mule Trans KAF820 Mule Pro FX / FXR KAF820 Mule Pro FXT EPS Trans KAF1000 Mule 4010 Diesel EPS / Trans KRF800 Treyx F1 2 seater

2x4 4x4 2x4 4x4 4x4 4x4 4x4 4x4 4x 4

Kawasaki: (Norjo Motorcycles.) Motorbikes (2 wheelers): KLX110 Auto Clutch / Manual KLX140 Small Wheel / Big Wheel / Adult Size KLX150 Farm / Road Legal KL250 Stockman KLX450

4 stroke 4 stroke 4 stroke 4 stroke 4 stroke

Suzuki New Zealand: Model TF125 Mudbug DR200SEL5 Farm DR-Z250L8

Engine 2 Stroke 4 Stroke 4 Stroke

Drive -

Capacity 123 cc 199 cc 249 cc

Please check with retailer for current prices

298

$6,517 $15,200 $11,648 $13,039 $17,213 - $19,126 $20,865 / $23,474 $24,343 $23,474 / $25,213 $21,735

$3,217 / $3,470 $4,600 / $4,861 / $5,035 $4,083 $5,909 $7,817 Transmission 6 Speed 5 Speed 6 Speed

Price $3,474 $5,213 $6,517

Prices Exclude GST

Suzuki New Zealand cont: ATV Engine LT-F250L4 4 Stroke Ozark LT-F300FK4 4 Stroke KingQuad 300 LT-A400FL7 4 Stroke KingQuad 400 LT-F400FL8 4 Stroke KingQuad 400 LT-A500XL8 4 Stroke KingQuad 500 LT-A500XPL8 KingQuad 500 4 Stroke Power Steer LT-A750XPL6 KingQuad 750 4 Stroke Power Steer

Drive

Capacity Transmission

Price

2WD

246 cc

5-Speed/Reverse

$6,952

2WD/4WD

280 cc

5-Speed, Multi Range

$9,561

2WD/4WD

376 cc

CVT Auto, Hi/Lo

$11,300

2WD/4WD

376 cc

5-Speed, Hi/Lo

$11,300

2WD/4WD

493 cc

CVT Auto, Hi/Lo

$13,039

2WD/4WD

493 cc

CVT Auto, Hi/Lo

$14,778

2WD/4WD

722 cc

CVT Auto, Hi/Lo

$15,648

Farm ATV Trailers and Stock Crates Smith Attachments Ltd: (6 standard models available, also made to order. Prices subject to change) 1200 x 900mm - Trailer - Mesh or Ply Deck From $1,225 - Stock Crate - Door: Swing or Sliding From $766 1500 x 1100mm - Trailer - Deck: Mesh or Ply Deck From $1,510 - Stock Crate - Door: Swing or Sliding From $824 1500 x 1100mm - Trailer - Deck: Mesh or Ply Deck From $1,654 Hay Trailer - Stock Crate - Door: Swing or Sliding From $640 1800 x 1200 mm - Trailer - Deck: Mesh or Ply Deck From $1,832 - Stock Crate - Door: Swing or Sliding From $850 2400 x 1200mm - Calf Trailer - Deck: Mesh From $2,980 Tandem - Stock Crate - Door Swing or Sliding From $1,081 3000 x 1500mm - Calf Trailer â&#x20AC;&#x201C; Deck: Mesh or Ply From $3,690 Dual Axle - Stock Crate, Centre Division, 2 Sliding Doors From $1,825 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 Smith Attachments Ltd: (Honda, Suzuki, Yamaha, Kawasaki, Can Am, Polaris, Kymco) ATV 4 Wheeler accessories Prices subject to change Bullbar Kits From $485 Mudflap Kits From $129

Please check with retailer for current prices

299

Prices Exclude GST

2.20.5 Mowers, Toppers and Mulchers Farmgard Ltd: (most product may be indent only) TFB-Y range Up to 110hp Rotor 159mm diam. Vineyard/orchard ECOSPRINT Hydraulic inter-row weeder mower to attach to range above 40-100hp TFB/M range Up to 150hp Rotor 159mm, rakes, rear roller+scraper Swingarm To suit above machines. Inter-row mower. ECOLOGY Mulcher mounted inter-row weeder, suit above DUAL range Fr/rear mt offset flail mower/mulcher. Up to120hp TBM range Extra heavy duty offset mulcher. Up to 100hp ECF range PTO heavy duty forestry/scrub mulcher. Up to 250hp ECFDD Double drive version. 250hp max Trimax: Flail Mowers Ezeemow (orchard and parks) Warlord FlailDek FX (Parks) Rotary Mowers Pegasus Classic (wide area) Snake (Golf, Sports, fine turf) Stealth wing roller mower Procut (orchard and parks) Pasture topper mower Striker (compact tractor compatible, lifestyle, sports grounds, education)

$11,830 to $14,685 $13,510 to $43,720 $16,480 to $20,215 $4,645 $5,130 to $5,660 $18,420 to $21,635 $13,870 to $16,410 $38,015 to $46,310 $55,635

Cutting width 1.34 to 1.83 m 1.44m to 2.34m 1.35m to 1.83 m

Standard $7,280 to $8,080 $11,990 to $14,770 $8,790 to $10,050

4.93m to 6.1 m 3.2m 3.42m 1.74 to 2.89m dble roller 2.37m to 2.82m 1.46 to 1.94m

$59,990 to $61,990 $39,250 $24,590 to $25,990 $10,200 to $14,860 $10,360 - $11,360 $8,220 to $9,220

Tulloch: KRONE ActiveMow R 320 3.2 m rear disc mounted hay mower KRONE ActiveMow R 280 2.8 m rear disc mounted hay mower KRONE ActiveMow R 240 2.4 m rear disc mounted hay mower KRONE EasyCut F280M front mower KRONE EasyCut B 890 Disc mower, 3ptl, without conditioner

$20,850 $18,850 $16,550 $24,550 $70,450

CLAAS: (Landpower NZ Ltd) Disco Mowers Disco Mowers CONTOUR (mounted â&#x20AC;&#x201C; centre pivot) Disco Front Mowers

$29,000

2.45m /3.0m /3.4m 3.0m / 3.4m

$15,500 / $20,000 / $22,500 $25,000 / $28,000

3.0m

Please check with retailer for current prices 300

300

Prices Exclude GST

Mower Conditioners CLAAS: (Landpower NZ Ltd) Disco mower conditioners (7 disc) Disco front mounted mower conditioner Disco mower conditioners (2 mower units)

3.0m / 3.4m 3.0m / 3.4m 9.0m

Drummond & Etheridge Ltd:(John Deere) F310R Front Mower Conditioner 1365 Mower Conditioner 830 Centre Pivot Mower Conditioner 835 Centre Pivot Mower Conditioner Grouper

$36,500 / $41,500 $41,500 / $ 46,000 $88,000 $38,000 $43,000 $55,000 $60,000 $14,000 to $20,000

Tulloch: KRONE EasyCut F 320CV mounted mower conditioner 3.165m KRONE EasyCut R 2800 CR with roller-conditioner KRONE EasyCut 3201CV trailed mower conditioner 3.2m KRONE EasyCut 6210 CV â&#x20AC;&#x201C; trailed mower conditioners

Please check with retailer for current prices 301

301

$41,500 $39,250 $61,990 $146,900

Prices Exclude GST

2.20.6 Hay Making Equipment Hay Rakes and Tedders CLAAS: (Landpower NZ Ltd) Liner 2700 6.8 – 7.2 m Liner 2800 7.4 – 8.8m Liner 3600 9.9 – 12.5 m CLAAS: (Landpower NZ Ltd) Volto 55 5.2 m Volto 700 6.8 m Volto 900 8.8 m Volto 1100 10.7 m

Twin rotary swather Twin rotary swather Quad rotary swather

Hitch mounted tedder Hitch mounted tedder Hitch mounted tedder Trailing tedder

Farmgard Ltd: (some product may be indent only) R+ 760 Heavy duty centre swath rake - 6.8-7.6m R+ 820 - 7.4 - 8.2m

$46,500 $54,500 $103,000 $15,000 $25,000 $35,000 $51,000 $37,715 $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 R 455RC Rollant 455 Rotocut V485RCP Variant Rotocut Cut Baler

$185,000 $110,000 $95,000

Tulloch: KRONE Fortima V1500 MC net tying KRONE Comprima CF 155 XC baler/wrapper

$75,100 $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 Please check with retailer for current prices 302

302

$315,000 Prices Exclude GST

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

Hay Handling Equipment Giltrap Engineering: Prices include freight to dealers’ yards DMLG2 Bale Feeder 3 PTL DMLG2X2 Bale Feeder 2 Bale Trailing

$8,070 $18,950

ICS Manufacturing Ltd: Bale Feeders – 3pt linkage or trailed models STEPHENS 260 Series – 3pt linkage model STEPHENS 450 Series – Ground Driven STEPHENS 660 Series – Two Bale Trailed model STEPHENS 760 Series – Two Bale Round and Square Trailed Model

$8,600.00 $7,800.00 $13,800.00 $17,600.00

Quinn Engineering Ltd: (Prices incl freight) Bale clamp c/w replaceable F.E.L. Bracket / c/w 3pt Linkage Bracket $3800.00 Bale forks –soft tines, guided entry, 3 pt. fittings $1,200 Single bale spike, forged tines, 1,200mm long $1,000 Two bale spikes, forged tines, 1,200mm long $1,400 2” solid bale spike with sleeve ready to fit into a frame $200 Silage forks, welded tines - 5 / 7 / 9 / 11 tines $1,350 / $1,500 / $1,650 / $1,800 Silage forks, forged tines - 5 / 7 / 9 / 11 tines $1,700 / $1,950 / $2,250 / $2,450 (Silage forks incl F.E.L brackets) Silage grab 4 to 7 welded tine, incl grab, brackets, ram(s), hose kit $2,000 to $2,650 Silage grab 4 to 7 forged tines, incl grab, brackets, ram(s), hose kit $2,350 to $3,200 Combo Forks ADD to price of silage forks, incl x 2 Bale Spikes $400 Please check with retailer for current prices 303

303

Prices Exclude GST

Rata Industries: (Freight free to Dealership only) Silage grabs with forged steel tines ASG120-ASG150 1.2-1.5m: 0.67m3-0.84m3 7 – 9 tines in base $4,680 - $5,015 3 3 ASG180-ASG200 1.8-2m wide:1.08m -1.2m 10-11 tines in base $5,690 - $6,560 Silage grabs with fabricated steel tines BSG120-BSG150 1.2-1.5m: 0.67m3-.84m3 7-9 tines in base $4,470 - $4,690 BSG180-BSG200 1.8-2m wide:1.08m3-1.2m3 10-11 tines in base $5,430 - $6,250 Silage grabs for telehandlers with forged steel tines. (Merlo needs additional valve) ASG 220-ASG300 1.32m3-1.81m3 12-16 tines in base $7,340 - $9,025 Shear grabs with serrated front edge SHG120-SHG180 1.2m-1.8m:0.58m3-0.88m3 9-12 tines $8,410 - $9,650 Silage Forks SF120 - SF150 1.2m - 1.5m wide 7 – 9 tines $1,650 - $2,120 SF180 - SF200 1.8m - 2.0m 10 – 11 tines $2,400 - $2,680 Silage forks for telehandler/large loader mounting SF220 – SF300 2.2m – 3.0m wide 12 – 16 tines $4,070 - $5,280 Heavy duty push-off Buck Rake Fork HS240-HS300 2.4-3.5m:13-19x conus2 1,240mm tines $10,270 - $14,275 Bale Forks (can be made to fit 3 pt linkage at same price BF800 – BF980 0.8m – 0.98m long tines $1,230 - $1,280 BF110 – BF120 1.1 m - 1.24 m long tines $1,320 - $1,350 BF980-2.3m 4 x 980mm long tines with 2.3m wide frame 3PL $2,350 Eco Spiker Bale Forks ES980 – ES110 With 0.98m – 1.1m bale tines $995 - $1,020 ESHB Bolt on high back for eco spiker $195 4 Bale Hay Hauler Transport 4 x bales at once on 3 point linkage HH250-HDHH250 2.5m wide – 2.5m wide heavy duty $6,650 - $7,200 Bale, Silage Combo Fork C120-C180 1.2-1.8m 7-10 silage tines. 2x 1.2m bale tines $2,110 - $3,030 Bale/Pallet Combo Fork BP980 – BP120 0.98-1.2m bale tines 1,000kg Capacity $2,390 - $2,410 BP980-5- to BP120-5 0.98-1.2m bale tines 1,500kg Capacity $2,630 - $2,710 Wrapped Bale Clamp WBC0001 / WBC002 c/w equaliser bar / bolt on high back $3,680 / $380 Wrapped Bale Clamp with telehandler mounting WBC0003 / WBC002 c/w equaliser bar / bolt on high back $4,020 / $380 Versatile Grapple VG160-VG180 1.6m – 1.8m wide: 16mm Tines $7,700 - $8,490 VG200 – VG240 2.0m – 2.4m wide: 16mm Tines 3 pivots $9,600 $10,890 Pallet Forks NB Fixed width pallet fork welded at 950mm over outside AWPF05 – AWPF5 Adjustable width 500kg – 1.500kg capacity $1,780 - $1,980 AWPF8 - AWPF25 Adjustable width 1,800 - 2,500kg capacity $1,850 - $3,150 FWPF1 – FWPF5 Fixed width 1,000kg – 1,500kg capacity $1,300 - $1,870 Telehandler Pallet Fork AWPF25T Adjustable width 2,500kg capacity $3,980 Please check with retailer for current prices 304

304

Prices Exclude GST

Tractor Forks Millars Machinery Ltd: Leeston: 2016 prices Silage forks – 980mm length Standard front forks High back forks 3 ptl fork

$1,280 $1,570 $1,280

Duncan Ag: Balefeeders (2018 prices) 2 bale trailing – standard wheels SLR Feeder c/w diverter valve Bale Buggy Eco Feeder Multi Feeder – 4 Bale Jumbo Standard Feeder – 4 Bale Jumbo Tub Feeder – 4 Bale Fodder Chopper - single Fodder Chopper - double

$21,600 $22,600 $9,500 $9,840 $54,320 $46,750 $49,680 $18,230 $19,990

2.20.7 Spray Equipment Croplands Equipment Ltd: (Freight charges may apply) ATV Mounted 70L sprayers, c/w 6m hose, spray lance-adj nozzle, 12v on demand, 6.8 L/min pump $755.00 15lit/min c/w pressure adjustment regulator, pre-plumbed for boom $1,125.00 15litre/min c/w pressure adjustment regulator + 3m boom kit $2,050.00 15litre/min c/w pressure adjustment regulator + 4m boom kit $2,150.00 Boomless Pressure Nozzles for ATVs: XTBOOMKIT 2 XT nozzles approx 6m spray width $379.00 BoomJet Boomless nozzle. Difficult access/ liquidfert appln $602.50 Trailed sprayers, 300litre c/w 10mx10mm hose, spray lance,12 v pump, regulator kit Trailer, hitch & tank only, no pump, boom nor gun $2,395.00 20 litre/min. Ideal spot sprayer $3,065.00 20 litre/min 4m boom / 20 litre/min 6m boom $4,199.00 / $4,630.00 AR252 Honda pump fitted, 20x10mm hose, XT Boomkit $3,795.00 30m 10mm hose, steel reel+RL10 lance / RetraSpray remote $5,145.00 /$8,995.00 control Tray mounted sprayers: 500litre AR pump, Retraspray reel / c/w twin reels $8,995.00 / $12,395.00 Accessories Hose Reels: light duty Swivel base & reel lock hose capacity $225.00 / $439.00 30m / 20m hose fitted + RL10 gun Side mounted, 30mx10mm hose, Turbo400 gun / Base mounted $679.00 / $799.00 Guns & Lances: Swissmex to Spot Spray pistol type gun 40bar $72 .00 to $139.00 Hoses: 20mm clear vinyl to 32mm 20bar for pesticide & herbicide $6.50 / $27.45 Please check with retailer for current prices 305

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AES Waterblasters (Ag Equipment Specialists Ltd): Sprayers â&#x20AC;&#x201C; Honda Petrol Powered AES Petrol powered 20 to 53 litres per minute 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

$2,550 to $5,250 $895 to $1,350 $275 to $295 $2.95 per m $135

Amazone: (Landpower NZ Ltd) UX3200S Trailed sprayer with 24 m Super-S boom UF1801 3 point linkage sprayer with 18m Super-S boom UF901 3 point linkage sprayer with 12m Q- plus boom Fiesta Bulbs Ltd: 3p Mounted Whirlwind M120 PTO sprayer Thermo fogging generator device K800

$86,550 $46,100 $30,950 $15,000 to $28,000 $2,500 to $3,500

Bertolini Ltd: Three point linkage sprayers: Econo Series 400 l tank 6m boom 40 lpm/580 psi diaphragm pump 20m10mm 600 psi hose $4,940 spraygun driveshaft jet agitation/ optional fresh water tank 650 l tank $5,490 Proline Series 400 l 6m boom 55 lpm diaphragm pump 30m 10mm 600 psi hose, 3 tap control $7,145 spraygun driveshaft jet agitation fresh water tank (BA 001 and BA 005) factory tested 650 l 6m boom 55 lpm $7,690 650 l 8m boom 55 lpm $7,990 800 l 8m boom 55lpm $8,990 1,000 l 70 lpm pump 8m boom $12,950 Three point linkage Pasture Pack â&#x20AC;&#x201C; Field Sprayer 1,000L LS Series 3ptl tank+frame,10l fresh water tank, Poli pump, 12m K $19,950 boom, 220psi 3 sect in-cab ctrl, AIXR nozzles- 500mm spacing. Hand wash, flush tank, chem induction hopper 1,300L LS Series $20,950 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 Please check with retailer for current prices 306

306

$2,550 to $3,850 Prices Exclude GST

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 $795 compatible Rear Mount 35l spot sprayer $795 Pressure Nozzle Booms for ATVs: - Multi Boom 4.5m $495 ATV folding booms - 3m to 4m, complete with breakaway $597 to $659 ATV boom mounting kits $66 to $246 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 ATV Mounting Kits $66 to $246 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 $265 to $395 Hose 580 psi - 8.5 mm / 10mm / 13 mm $2.39 / $3.41 / $5.76 per m Spray guns, lance style/pistol style $55.00 to $195.00 Foam markers, single foam / double foam $1,160 / $1,725 Please note freight charge will apply

Please check with retailer for current prices

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Prices Exclude GST

Tractor Mounted Sprayers C-Dax Ltd: Goldline 600l, PTO Driven pump, manual pressure control, 6m boom, $6,439 hose reel kit from Goldline 800l, PTO Driven pump, manual pressure control, 6m boom, $6,764 hose reel kit from Goldline 1000l, PTO driven pump, manual pressure control, 6m $6,944 boom, hose reel kit from Goldline 1000 l, High Spec, PTO driven pump, Electric in cab $16,768 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 $3573 50m Hose Reel kit with handgun InEx 600 l PTO driven pump, manual pressure control, 6/8m boom $3,919 to $4,369 InEx 1000 l PTO driven pump, manual pressure control $5196 50m Hose Reel kit with handgun InEx 1000 l PTO driven pump, manual pressure control 6/8m boom $5,542 to $5,995 Please note freight charge will apply Knapsack Sprayers Croplands Equipment Ltd: (Freight charges may apply) 12 volt rechargeable 16 litre knapsack sprayer Piston pump c/w safety chamber & gauge on lance 15 litre

$249.00 $229.00

Kanters Engineering & Machinery Ltd.: KEM Low volume mist sprayer - fully automatic

$4,250

Hand Held Sprayers Croplands Equipment Ltd: (Freight charges may apply) Compression sprayers 5 litre / 7 litre

$99.00 / $109.00

2.20.8 Tractor Transport Trays Giltrap Engineering: (prices include freight to dealersâ&#x20AC;&#x2122; yards in North (NI) and South (SI) Islands). Speedy Hitch Transport Tray 3ptl Tray only Complete 2.13 m x 1.37 m NI $2,030 SI $2,335 NI $2,425 SI $2,730 Speedy Hitch Transport Tray Euro Hitch 2.13m x 1.37m NI $3,475 SI $3,875 NI $3,870 SI $4,270

Please check with retailer for current prices

308

Prices Exclude GST

2.20.9 Frontend Loaders / Forklifts J.C.B: Landpower NZ Ltd: J.C.B Loadalls (telescopic handlers) 526 - 56 4WD 531-70 AS 4WD

4WS 4WS

$117,000 $145,000

Rata Industries: (Freight free to Dealership only) Root Crop Buckets Bucket Size width & m3 level capacity Price For Large Loaders and Telehandlers RB240 to RB300 2.4m-3.0m & 1.3m3 -1.8m3 $6,540 to $7,990 Standard Buckets, rounded shell, Euro hitch only LB180 – LB200 1.8-2.0m & 0.55m3- 0.70m3 $3,000 to $3,430 3 3 LB220-LB240 2.2-2.4m & 0.77m -0.85m $3,715 to $3,930 Std Buckets for Front End Loaders – 1275mm shell, 635mm deep, 635mm opening LBF120-LBF150 1.2-1.5m & 0.30m3-0.40m3 $2,330 to $2,600 3 3 LBF180-LBF200 1.8-2.0m & 0.45m -0.50m $2,100 to $3,300 LBF220-LBF240 2.2-2.4m & 0.60m3-0.65m3 $3,600 to $3,810 General Purpose Buckets for Telehandlers and Large Front End Loaders – 1,810mm shell, 875mm deep, 975mm opening TBS220-TBS270 2.2m-2.7m &1.1m3-1.3m3 $4,890 to $5,990 Oversize Buckets for Telehandlers & large Front End Loaders – 2,050mm shell, 1100mm deep, 1050mm opening TB0220-TBO270 2.2.m-2.7m & 1.25m3-1.50m3 $5,840 to $6,530 Forklifts Quinn Engineering Ltd: (freight included) Height Lift capacity 3 point linkage 2 Stage

2.00 m 1.50 m

450 kg 750 kg

$3,800 $4,800

Front-mounted $7,800 $10,100

F/M + Sideshift $10,350 $10,900

2.40 m 750 kg $4,300 $8,900 $12,950 2.40 m 1,000 kg $5,200 $10,500 $13,350 1.50 m 1,250 kg $5,900 $11,200 $14,050 3.00 m 1,250 kg $6,800 $12,100 $14,950 2.00 m 1,500 kg $7,400 $13,700 $16,750 3.00 m 1,500 kg $8,200 $14,500 $17,550 2.00 m 2,000 kg $7,600 $13,900 $16,950 3.00 m 2,000 kg $8,400 $14,700 $17,650 3 Stage 2.59 m 1,250 kg $8,600 $13,900 $17,150 3.00 m 1,250 kg $7,200 $11,800 $14,400 2.59 m 1,500 kg $8,000 $13,300 $16,550 3.00 m 1,500 kg $8,800 $14,100 $17,350 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. Please check with retailer for current prices 309

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Prices Exclude GST

The F/M with sideshift includes an extra valve slice, hyd. auxiliary to forks, sideshift frame and ram. Options available: Bin tipper – tips 150 degrees, 1,250 kg / 1,500 kg capacity $4,200/ $4, 500 ADD Hose Kit for Bin Tipper $120 Bucket attachment – 1,200mm / 1,500mm / 1,800mm $3,250 / $3,500 / $3,750 wide, crowd action. No brackets, hoses nor valve ADD Hose Kit for Bucket Attachment $120 Hydraulic TopLink Cat 1-1 / Cat 2-2 $570 / $590 2.20.10 Trailers Giltrap Engineering: (prices include freight to dealers’ yards in North (NI) and South (SI) Islands). North Island South Island 5 tonne tip trailer 3.2 x 2.3 deck $15,200 $17,500 6 tonne tip trailer 3.65 x 2.3 deck – on tandems $19,300 $21,600 8 tonne tip trailer 3.65 x 2.4 – on tandems $21,950 $24,250 10 tonne tip trailer 4.2 x 2.4 – on tandems $23,950 $26,950 12 tonne tip trailer 4.4 x 2.4 – on tandems $27,950 $30,950 15 tonne tip trailer 4.7 x 2.4 - on tandems $30,590 $33,890 17 tonne tip trailer 5.0 x 2.4 – on tandems $34,250 $37,550 20 tonne tip trailer 5.0 x 2.7 - on tandems $43,950 $47,450 ICS Manufacturing Ltd: Trailers – ULTIMATE Tipping Trailers 6 Tonne Tandem Axle Unbraked 8 Tonne Tandem Axle Unbraked 10 Tonne Tandem Axle BRAKED 12 Tonne Tandem Axle BRAKED RUTBUSTER 12 Tonne Tandem Axle Rut Filling Machine

$19,650.00 $24,200.00 $31,600.00 $39,800.00 $34,600.00

2.20.11 Silage Wagons / Forage Harvesters Silage Wagons Giltrap Engineering: (Prices include freight to dealers’ yards in North (NI) and South (SI) Islands). Centre Feed Forage Wagons – RF Models RF9C / RF11C 9 / 11 m3 NI $38,175 / SI $41,475 / NI $40,675 / SI $43,975 RF13C / RF16C 13 / 16 m3 NI $47,900 / SI $52,100 / NI $52,650 / SI $56,850 3 RF21C 21 m NI $62,535 / SI $67,685 Side Delivery Forage Wagons – RF Models: RF9 / RF11 9 / 11. m3 NI $41,450 / SI $44,750 / NI $43,950 / SI $43,975 3 RF13 / RF16 13 / 16 m NI $52,300 / SI $56,500 / NI $56,950 / SI $61,150 3 RF21 21 m NI $66,800 / SI $71,950 RF25 25 m³ NI $85,120 / SI $90,420 Please check with retailer for current prices 310

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Prices Exclude GST

CLAAS: (Landpower NZ Ltd) Cargos 8400 35.5 m3

$195,000

Tulloch: Krone AX 310 L Loader Wagon Krone MX 330 GL Loader Wagon Krone MX 370 GL Loader Wagon Krone ZX 430 GL Loader Wagon Krone ZX 470 GL Loader Wagon Krone ZX 560 GL

from $153,300 from $165,700 from $177,800 from $252,500 from $261,100 from $320,100

Mixer Wagons Farmgard Ltd: Diet Feeders / Mixer wagons (some product may be indent only) VF range. 12m3 single auger $69,910 3 3 VFTWIN range. 15m to 20m twin auger, single axle $83,240 to $114,265 Trioliet: (Landpower NZ Ltd) SM2 1800 ZK 18 m3 SM2 2400L ZK-T 24 m3

Twin auger mixer wagon Twin auger mixer wagon

Forage Harvesters Drummond and Etheridge: John Deere Model 8500

$78,500 $116,500

From $550,000 to $640,000

2.20.12 Grain Crushers Hamptons Engineering: Roller mill Electrical costs extra

$15,500 ex factory

2.20.13 Prill Applicators C-Dax Ltd: Slugmaster 75 litre capacity, 12v spreader, spinner disc, 24m spread Please note freight charge will apply Daltons Ltd – Matamata: Hand-Held Electronic Applicator for dry granules – fertiliser model For very fine grained materials – herbicide model

$1,175 to $1,440

$3,135.00 $2,990.00

Beattie Insulators: KG Prill applicator – for prills and granules Bottle only

$36.38 $4.97

Croplands Equipment Ltd: (Freight charges may apply) Granular applicator. 10 litre capacity up to 5m spread

$89.00

Please check with retailer for current prices 311

311

Prices Exclude GST

2.20.14 Fertiliser and Manure Spreaders and Topdressers Trade Tested: (NB this is an online store always check availability & current pricing) Fertiliser Spreader, tractor mounted, PTO 1000L PVC $1,477.40 ATV Trailed Fertiliser Spreader, 260L, Steel $1,129.60 Amazone: (Landpower NZ Ltd) Twin Disc Fertiliser Spreaders: ZA-M ZA-M 1501 ZAV-S ZA-V Super

1500 litre 1700 litre

$13,250 $24,200

Croplands Equipment Ltd: (Freight charges may apply) 150 L trailed ATV/RTV/Small tractor, ground driven spreader 350 L 3-PTL Spreader Farmgard Ltd: (some product may be indent only) Abbey 5.35m3 / 6.88m3 / 8.1m3 rotor & chain side spreader 9.1m3 / 12.m3 incl hydraulic brakes etc 7.25m3 / 9m3 Multi Spreader â&#x20AC;&#x201C; water tight

$1,350.00 $1,195.00 $21,565 / $25,750 / $29,575 $37,695 / $60,555 $58,190 / $62,120

Giltrap Engineering Ltd: (prices include freight to dealers yards in North (NI) and South (SI) Islands). Slurry Spreader 5,000 litre tank, tandem axles NI $34,800 / SI $37,800 Slurry Spreader 7,500 litre tank, tandem axles NI $37,950 / SI $41,250 Slurry Spreader 10,000 litre tank, tandem axles NI $47,850 / SI $51,150 Slurry Spreader 12,000 litre tank, tandem axles NI $49,950 / SI $53,250 Slurry Spreader 15,000 litre tank, tandem axles NI $55,900 / SI $59,400 Slurry Spreader 20,000 litre tank, tri axles NI $101,765 / SI $105,950 Giltrap Engineering Ltd: (prices include freight to dealers yards in North (NI) and South (SI) Islands). Fertiliser Spreader Fertiliser Spreader Orchard Model 3 tonne NI $39,870 / SI $42,170 Fertiliser Spreader 2501 3tonne NI $39,250 / SI $41,550 Fertiliser Spreader 3802 4.6 tonne NI $49,775 / SI $52,775 Fertiliser Spreader 5001 6 tonne NI $52,845 / SI $55,845 Fertiliser Spreader 6601 8 tonne NI $58,515 / SI $61815 Fertiliser Spreader 8301 10 tonne NI $69,945 / SI $73,445 Fertiliser Spreader 10001 12 tonne NI $75,945 / SI $79,445 Fertiliser Spreader 12401 15 tonne NI $83,645/ SI $87,645

Please check with retailer for current prices 312

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Prices Exclude GST

2.20.15 Trucks and Utilities (Light Commercials) Toyota: Hilux – 2WD: cab /chassis Single cab 2.8 turbo diesel (manual) $27,817 Extra cab 2.8 turbo diesel (manual) Double cab 2.8 turbo diesel (manual) Double cab 2.8 turbo diesel (auto) Hi-Lux – 4WD: cab / chassis Single cab 2.8 turbo diesel (manual) $36,078 Extra cab 2.8 turbo diesel (manual / auto) $37,818 Dble cab 2.8 turbo diesel (man/auto) $38,252 Land Cruiser Prado: 2.8 turbo diesel GX SUV $61,730 2.8 turbo diesel VX SUV $70,426 4.5 turbo diesel VX limited SUV $79,991 Prices subject to change and ORC not included. Blackwell Motors Ltd: Ute Mazda BT50 GLX 2WD Single cab manual With flatdeck Mazda BT50 GLX 2WD Freestyle cab manual with Flatdeck Mazda BT50 GLX 4WD Double cab wellside with canopy Holden Colorado LS 2WD Manual Double Cab with flatdeck Holden Colorado LS Space cab 4WD with flatdeck Holden Colorado LTZ Doublecab Auto with Canopy ORC = On road costs of $1,213

Ute Accessory Price incl Price Price ORC $30,691 $3,043 $34,947

ute $28,687 $29,557 $37,817 ute $40,860 $39,991 -

$35,039 $3,217

$39,469

$45,126 $3,478

$49,817

$38,687 $3,043

$42,943

Servicing first 3 years $173.91 capped per service every 10,000kms $173.91 capped per service every 10,000kms $173.91 capped per service every 10,000kms Free

$44,339 $3,217

$48,769

Free

$54,774 $3,478

$59,465

Free

Truck Attachments Lyndon Engineering & Harrows: (note prices subject to change with final design) Flat Deck 7000mm (l) x 2100 (w) x 2000mm head board & lashing points $15,500 3mm plate Truck Bins 6000mm (l) x 2100mm (w) x 800mm (h) with lashing points $13,500 6mm floor 3mm sides (Includes design, fabrication, certification, primer – Installation additional, subject to inspection) Please check with retailer for current prices 313

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Prices Exclude GST

2.20.16 Cultivation Implements Ploughs Farmgard Ltd: (some product may be indent only) BX-F range Rev fully mounted variable width. Pt to pt clearance 90cm. Up to 120hp, light duty CX-F range Rev fully mounted variable width. Pt to pt clearance 100cm. Up to 150hp, medium duty VF CXP-H Rev fully mounted hydraulic variable working width. Up to 200hp, heavy duty DTL-H range Conv semi mounted variable width. Up to 250hp 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

$20,340 to $24,405 $27,585 $54,835 $50,665 to $58,620

$29,410 $35,005 to $45,165

Rippers / Aerators (3 point linkage) Lyndon Harrows: Lyndon Ripper 1800mm – single row tynes / double row tynes Lyndon Ripper 2400mm – single row tynes / double row tynes Lyndon Ripper 3000mm – single row tynes / double row tynes Discs Farmgard Ltd: (some product may be indent only) CLH&CVH heavy duty, fully trailed, 9” &10” disc spacing CWHR range Heavy duty vertical folding offset discs

$2475 / $2750 $2585 / $2875 $2700 / $3000

$37,310 to $55,060 $79,665 to $82,705

Cultivators Taege Engineering Ltd: (freight to be arranged) 6.0m folding hydr Cultivator. 49 tynes at 121mm spacing, 4 wheels $31,615 to hydraulically adjusted + optional add-ons; harrows, tow tongue etc $38,029 NB: These are guidelines only as all equipment is made to individual specifications with optional add-ons available. Rotary Hoes Farmgard Ltd: (some product may be indent only) F-BA Light duty rotary hoe side chain drive. Up to 45hp B range Medium duty, 220mm work depth. Up to 70hp E range

Medium duty,250mm work depth. Up to 100hp

PIONEER 170F

Heavy duty, 1,000rpm 2 spd gear box. 250mm work depth. Up to 170hp

Please check with retailer for current prices 314

314

$7,859 to $8,700 $13,550 to $14,420 $15,935 to $20,230 $29,170

Prices Exclude GST

Power Harrows AMAZONE: (Landpower NZ Ltd) With cage rollers: KE3000S 3.0m power harrow KG5001.2 5.0 folding Rotary cultivator Passive cultivation Catros 3001 Plus 3.0 m Catros 5002-2TS 5.0 m

$18,000 $60,500 $31,000 $72,000

Harrows Lyndon Harrows: Lyndon Combo Harrow 1.5 to 2.1 m width – 12 mm spiked /combo (suitable for motorbikes) $725 to $1,035 2.4 to 4.2 m width – 10, 12 and 16 mm square $1,210 to $3,910 Spiked Chain Harrows 12 mm Round, 1.83 x 1.83 to 3.66 x 2.4 m (6' x 6' to 12' x 8' ) $1,065 to $2,795 16 mm Round, 2.4 x 2.4 to 4.87 x 2.4 m (8' x 8' to 16' x 8') $2,510 to $5,070 20 mm Round, 2.4 x 2.4 to 4.27 x 2.4 m (8' x 8' to 14' x 8') $3,655 to $5,960 Tripod and ‘Lyndon’ Chain Harrows 10 / 12 mm square chain, 2.4 to 4.2 m $3,040 / $3,590 to $5,300 / $5,395 16 mm square chain, 3.0 to 4.2 m $5,255 to $7,150 Round Ring Harrow 12 mm round, 2.4 x 1 to 4.27 x 1.83 m $805 to $2,495 16 mm round, 2.4 x 2 to 4.87 x 1.83 m $1,655 to $2,595 20 mm round, 2.4 x 2.4 to 4.25 x 2.4 m $4,165 to $6,695 24mm round, 3 x 2.4 to 4.27 x 2.4 m $6,195 to $8,495 Utility Harrows 10, 12 and 16 mm diameter, round, 2.15 to 4.25 m $610 to $1,540 Diamond Leaf Harrows 16 mm tine / 20 mm tine – per leaf $510 / $580 Zig Zag Leaf Harrows 35kg 16mm tine / 45kg 20mm tine – per leaf $460 / $520 Bars – 3 / 4 / 5 leaf $510 / $590 / $675 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 Taege Engineering Ltd: (freight to be arranged) Taege Tyne Harrows – Can be fitted to any brand of drill or farm implement. They can be custom built for size and application but typical sizes and prices are:3.00m to 6.00m $1,572 to $3,144 3m – 4.3m hydraulic lift system (full kit) $2,386 6.2m harrows, hydraulic lift system (full kit) $5,246 NB: These are guidelines only as all equipment is made to individual specifications with optional add-ons available. Please check with retailer for current prices

315

Prices Exclude GST

Soil Looseners Amazone: (Landpower) Deep Loosener TL302

3.0m

$14,000

Rollers - Cambridge Rollers Duncan Ag: (2018 prices) Cambridge Roller 2.75 / 3.1 m - standard rings c/w with hyd. wheels 2.75 / 3.1 m - standard rings less wheels Uni-Roller 2.4 / 3.0 / 3.5 m Contour Tyre Roller 3.0 / 3.5 / 5.3 / 6.0m

$19,400 to $19,850 $15,800 to $15,950 $6,190 to $7,300 $16,370 to $42,250

Rubber-Tyred Rollers Taege Engineering Ltd: (freight to be arranged) Taege Tyre Rollers â&#x20AC;&#x201C; Designed with two rows of inflated tyres with rocking movement for contour following: 3.000m Fixed Beam (5 wheel sets) $9,715 3.6 â&#x20AC;&#x201C; 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 Giltrap Engineering Ltd: 3 Pt Linkage Quick Hitch, rated up to 18,000kg GVM

NI $1,475 to SI $1,475

Rata Industries: Draw Bar Hitch 3 pt linkage (Freight free to Dealership only) 3PLDH2 cat 2 linkage 3PLDH3 cat 3 linkage 38mm hook only 3PLDH/BF cat 2 linkage tow hitch / bale fork combo 3PLDH/TB Tow ball attachment

Please check with retailer for current prices

316

$1,150 $1,890 $2,350 $195

Prices Exclude GST

2.20.17 Planting Implements Drills and Seed Boxes Taege Engineering Ltd: (freight to be arranged) Unidrills – 3.0m, 504L capacity hoppers, fully computerised, tread plate, welded tips, rear harrow / draw bar / tow tongue 3.0m Uni Drill (tyne) 19 Drop Single Box at 150 spacing $18,723 added an upgrade to 23 Drop Single Box at 121 spacing, welded tips +$421 300ESW121 3.0m 23 Drops at 121mm Single Box $32,710 300EDW121 3.0m 23 Drops at121mm Double Box $42,846 360EDW121 3.6m 29 Drops at 121mm Double Box $47,279 Options for linkage and trailing Seed Drills listed as 3.0 or 3.6 if priced differently Stainless Steel Hopper Upgrade (ea) 3.0m / 3.6m $2,160 / $2,376 Stainless Steel Collector Tray Upgrade 3.0m / 3.6m $324 / $389 Stainless Steel Lid Upgrade 3.0m / 3.6m $216 / $281 Small Seed Inserts 3.0m / 3.6m $1,009 / $1,050 Sponge Protectors (from rodents) $287 Seed Box Agitator Kit $792 Safety Rails (Trailing only) 3.0m / 3.6m $390 / $420 End Tow with suspension, brakes and guards $3,696 Tool Box Mount Assembly $120 Swivel Towing Eye (Trailing Only) $267 Broadcasting System (Standard) 3.0m / 3.6m $650 / $700 NB: These are guidelines only as all equipment is made to individual specifications with many add-ons available Duncan Ag: (2018 prices) Enviro 740 Multiseeder Drill 15 to 26 Run triple disc $90,850 to $122,850 Enviro 3000e Drill 23 to 27 Run triple disc $144,840 to $152,930 Enviro DD30 Double Disc Drill c/w press wheels $90,500 Enviro DD35 Double Disc Drill c/w press wheels $95,840 320 Roller Drill 2.75 / 3.1 m – c/w hyd transport wheels $37,650 to $38,650 Renovator Eco Seeder 18 Run 3PL Dual Box c/w disc openers $37,600 18 Run Trailing Dual Box c/w disc openers $40,750 Classic Renovator 19 Run 3m Dual Box c/w disc openers $50,300 Renovator MK4 21 Run 3m Dual Box c/w disc openers $58,810 24 Run 3m Dual Box c/w disc openers $61,630 24 Run 3.5m Dual Box c/w disc openers $62,800 28 Run 3.5m Dual Box c/w disc openers $66,350 Renovator TFD 3.0m $45,880 Renovator TFD 3.5m $48,900

Please check with retailer for current prices

317

Prices Exclude GST

Duncan Ag: (2018 prices) Renovator AS5300 30 Run to 42 Run c/w disc openers Renovator 21 Run 3.0m to 28 Run 3.5m Dual Box AS3000/AS3500 c/w disc openers Renovator AS19 19 Run 3m Dual c/w disc openers Renovator AS16 16 Run 3m Trailing c/w disc openers Renovator AS16 16 Run 3m 3PTL c/w disc openers Renovator AS6100 36 Run to 48 Run c/w disc openers

$143,740 to $157,630 $67,800 to $73,200 $63,930 $33,290 $30,610 $153,750 to $168,400

Precision Drills Taege Engineering Ltd: Air Seeders (freight to be arranged) 3.0m dble box, 25 run at 121mm computerised metering system with in$59,535 hub wheel encoder. Hot dipped galv frame & fittings, 650L bins 3.6m / 4.8m dble box, 29 run at 121mm as above, with 850L bins $63,360 6.0m Air Seeder 49 tyne at 121mm 1x800L hopper $85,106 6.0m Air Seeder 49 tyne at 121mm 1x1,400L hopper $86,351 6.0m, 49 tyne at 121mm,1 x 1,400L hopper. 49 drops at 121mm spacing $108,172 49 outlet fully hosed, tow eye CAT3, hot dipped galv, compl C+D housing incl tips, tubes, bolts. PVC bin cover. No oil cooler NB: These are guidelines only as all equipment is made to individual specifications with many add-ons available. AMAZONE: (Landpower NZ Ltd) Green Drill 200 Roller drill Cirrus 3003 Trailed air seeder Cirrus 6003-2 Trailed air seeder Cayena 6001 Trailed air seeder

3.0 m 3.0 m 6.0 m 6.0 m

Transplanters and Potting Machines Transplant Systems Ltd: (prices ex-Auckland) Sfoggia transplanters 2 row Optional extras - Water unit per row - Fertiliser per row Sfoggia Vegetable Seeder 3 row Tray fillers Potting machines Nursery seedling Transplanter

$9,700 $162,500 $162,500 $128,000

$12,285 $441 $577 $2,100 from $24,000 from $26,000 from $55,000

Cell Tray Seeders Transplant Systems Ltd: (prices ex-Auckland) Seeders Nozzle bar Seeders Drum (high speed) Please check with retailer for current prices

318

from $8,500 from $37,000 Prices Exclude GST

Potato Planters Grimme: Landpower NZ Ltd: Grimme Potato GL32B 2 row cup planter

$45,500

Bed Formers Farmgard Ltd: (some product may be indent only) Rotary hoe or Reverse Rotation vegetable bed former up to 80hp Med duty Reverse Rotation stone burier. Ideal seedbed formation – 60 to 110hp

$29,965 -$34,140 $21,100 - $30,150

2.20.18 Harvesting Equipment Lifters, Diggers and Harvesters Grimme: potato harvester (Landpower NZ Ltd) SE7540 high capacity single row harvester, 4.5 tonne bunker GT1705

$180,000 $230,000

PalmerAgri Parts Direct Ltd Palmer Bolt On Style Croplifters (fits many brands and models) Palmer Clip On Style Croplifters (fits many brands and models) Schumacher Clip On Style Croplifters (fits many brands and models) Spring-clip lifter spool-Hex Button Nut Resetting and Resoaling croplifter Windrowers Grimme: Landpower NZ Ltd: Grimme Combi star CS150/CS170.S

$32.80 $33.80 $33.80 $6.10 $16.95

$130,000 / $160,000

Combine Harvesters Drummond & Etheridge: (prices vary with size and specifications) John Deere Model S780 From $500,000.00 to $650,000.00 John Deere Model S790 From $550,000.00 to $730,000.00 Grain Augers Another company: 45’ (13.8m) 50’(15.4m)

200 / 250mm 200 / 250 mm

Please check with retailer for current prices

319

$7,250 / $9,200 $8,750 / $10,250

319

Prices Exclude GST

2.20.19 Farm Bulldozers Gough Gough and Hamer Ltd: Track Type Tractors - Caterpillar Machine Operating weight (kg) Engine make kW/hp D3K2 XL 7795 C4.4 55/74 D4K2 XL 8501 C4.4 62/84 D5K2 XL 9408 C4.4 71/96

RPM 1900 1900 1900

2.20.20 Grader Blades / Snow Ploughs Farmgard Ltd: (some product may be indent only) Mini -up to 30hp 1.2m wide 70kg Midi 120 -up to 40hp 1.5m wide 120kg- 3 way adjustment Agricultural 260-7 -up to 60hp 2.1m wide 280kg – 3 way adjustment Contractor 600 -up to 130hp 2.7m wide 600kg – hydr 3 way Snow Plough Rata Industries: (Freight free to Dealership only) Hydraulic angle and trip blade SP180 – SP260 1.8m to 2.6m

Please check with retailer for current prices

320

Price $227,000 $260,000 $294,000

$1,620 $1,845 $4,560 $8,465-$9,740

$6,270 to $7,250

320

Prices Exclude GST

2.20.21 Other Farm / Orchard Equipment Fruit Bin Carriers Transtak Engineering & Equipment: Fruit Bin Trailers 1500L 3-bin / 2500L 4-bin 1500LE 3-4 bin / 3500NS 6 bin; stack, tilt, side shift 2000N 3-bin; stack 3500N/W 6-bin; stack with tilt

$17,670 / $20,990 $19,280 $36,570 $24,720 $33,660

Waterblasters / Sprayers / Misters / Blowers Fosters Outdoor Power Equipment: High Pressures Cleaners HW131 2175 psi max 8.3 l/min 15m hose HW1200 1740 psi max 7.0 l/m HW1300 1885 psi max 7.5 l/m

$794.28 $445.33 $538.66

AES Waterblasters (Ag Equipment Specialists Ltd): Hurricane Complete, tractor driven: 250/600 l tanks, 26 to 35 l/min, 3,000 psi Tornado-Petrol Powered 1,750 to 5,000 psi, 11 to 40 l/min, 5-24hp Honda engine Electro-blast electric 1,400 to 5,000 psi, 9 to 30 l/min (1/3phase) Steam Cleaners (Hot/Cold Water Blasters) Alberti Medijet 130, 1,740 psi, 9 l/min Alberti Compact & Maxijet 1,600 to 3,000 psi, 11 to 20 l/min (single and three phase) Kanters Engineering & Machinery Ltd.: Electric Waterblasters 2 hp to 3 hp single phase Electric Waterblaster 7.5 hp 3 phase Petrol Models up to 13 hp, 2,000 to 3,000 psi Petrol Powered Diaphragm Sprayers

$3,975 to $5,290 $1,550 to $9,350 $1,650 to $9,890 $3,250 $4,500 to $6,995 $754 to $1,695 $2,950 $1,095 to $4,295 $2,550

Misters and Blowers Makita Outdoor Power Equipment: PM7650H Mist Sprayer Backpack, up to 18m horizontal spray BHX2500-Pro Handheld, 24.5cc Four stroke BHX2500V Handheld 24.5cc Four stroke with Vac attachment RBL250 Handheld 24.5cc 2 stroke RBLV250 Handheld 24.5 cc 2 Stroke with vac attachment DUB362Z 18v x2 LXT BL Handheld blower Skin only EB7660TH Backpack 76cc Four stroke EB5300TH Backpack 53cc Four stroke

Please check with retailer for current prices 321

321

$1,120.87 $346.96 $390.43 $373.04 $451.30 $346.96 $868.70 $660.00

Prices Exclude GST

Chainsaws Fosters Outdoor Power Equipment Ltd: Stihl: Bar length 30.1cc to 31.8cc 36 cm (14”) 42.6cc 36 cm (14”) 35.2cc to 50.2cc 41 cm (16”) 50.2cc / 55.5cc 46cm (18”) 59cc to 76.5cc 51 cm (20”) 91.6cc 56 cm (22”) 121.6cc 75cm (30”) Makita Outdoor Power Equipment: Model – Makita DUC254Z Top Handle DUC252Z Top Handle DUC353Z Utility style DCS231T – top handle EA3200S – utility EA3502S – utility EA3600F – Lifestyle EA4301F – Pro DCS460 – Farmer DCS4630- Pro DCS500- Farmer EA5600F Farmer EA5600FREE Farmer Red EA6100P- Pro EA6100PRGE Pro Red DCS7301/60- Pro EA7300PZ Pro EA7300PRZ Pro Red DCS7901/60- Pro EA7900PRZ Pro Red EA7900PZ Pro DCS9010/74 – Pro EY2650H25H Telescopic Pole saw

Price $257 to $605 $1,126 $630 to $1,300.00 $1,126.00 / $1,213.00 $1,300.00 to $2,082.00 $2,170.00 $2,865.00

Power rating / Bar length 18v LXT BL Skin only 25cm (10”) 18v x2 LXT Skin only 25cm 18v x2 LXT BL 35cm (14”) Skin only 22cc, 25cm (10”) 32cc, 35cm (14”) 35cc 40cm (16”) 35.2cc, 40cm (16”) 43cc, 38cm (15”) 45.6cc, 45cm (18”) 45.6cc, 45cm (18) 50cc, 45cm (18”) 56cc 45cm (18”) 56cc 45cm (18”) 61cc, 50cm (20”) 61cc 45cm (18”) 73cc, 60cm (24”) 73cc PHO 73cc PHO 79cc, 60cm (24”) 79cc PHO 79cc PHO 91cc, 74cm (29”) 25.4cc Four Stroke

Price $375.00 $347.50 $565.00 $477.39 $286.09 $373.04 $460.00 $607.83 $694.78 $778.26 $825.22 $839.13 $839.13 $1,103.48 $1,086.09 $1,416.52 $1,233.91 $1,233.91 $1,564.35 $1,373.04 $1,373.04 $1,738.26 $1,169.57

Log Lifter Te Pari Ltd: Davis Starlifter

$370.00

Please check with retailer for current prices

322

Prices Exclude GST

Brushcutters / Trimmers Makita Outdoor Power Equipment: Makita Power rating Price ER2600L Line trimmer 26cc, .83kw, curve shaft $251.3 ER2650LH Line trimmer 25.4cc, Curved shaft, Four stroke $433.91 DUH181Z String trimmer 18volt LXT SKIN ONLY loop handle $129.57 DUR187Z String trimmer 18volt LXT SKIN ONLY loop handle $242.61 DUR187LSF String trimmer 18 volt LXT 3 Ah Battery straight shaft, loop $460.00 EM2600L Line trimmer 26cc, .83 kw Straight shaft Loop handle $364.35 EM3400L Line trimmer – Pro 34cc, 1.15kw Straight shaft Loop handle $520.87 EM3400U Brush cutter - Pro 34cc 1.15kw Straight shaft Bull handle $564.35 EM2653LHN Line Trimmer 25.4cc, .77kw straight shaft, loop handle, 4 $520.87 stroke EM2650UH Brush cutter 24.5cc, straight shaft, bull handle, 4 stroke $564.35 EX2650LHM –Pro Split shaft 25.4cc .77kw Straight shaft Loop handle $607.83 unit, Attachments available with brush cutter Four stroke EX2650LH Split shaft PHO only $460.00 DUX60Z Split shaft 18v x2 LXT BL Skin only $529.57 DUX60ZM1 Split shaft with 18v x2 LXT BL Skin only $660.00 line trimmer attachment EBH341L – Pro Brush cutter 33.5cc, 1.2kw straight shaft Loop handle, $607.83 Four stroke EBH341U – Pro Brush cutter 33.5cc, 1.2kw Straight shaft Bull handle, $651.30 Four stroke EM4350UH – Pro Brush 43cc 1.5kw straight shaft Bull handle, Four $738.26 cutter stroke DUH523Z Hedge trimmer 18v LXT Skin only 520mm $164.34 DUH651Z Hedge trimmer 18v x2 LXT Skin only 650mm $346.96 EH5000W Hedge trimmer 2 stroke 500mm $477.39 EH6000W Hedge trimmer 2 Stroke 600mm $520.87 EH7500SX Hedge trimmer 2 stroke 750mm single side $738.26 DUM604Z Grass Shear 18v LXT Skin only $129.56 Fosters Outdoor Power Equipment Ltd: Stihl FS38 to FR450 Petrol 27.2CC TO 44.3CC

$170 to $1,561

Rising Plate Meters / Pasture Meters / pH Meters Jenquip Ltd: (prices include NZ delivery) Filip’s folding plate pasture meter Plate Meter carry bag / longer version for extended shaft model Pasture management software EC-09 Electronic pasture meter c/w software (replaces F200) EC-10 Electronic pasture meter c/w software (stores and downloads 99 paddocks of data) EC-20 Bluetooth Electronic Folding Plater Meter (up to 200 paddocks) Please check with retailer for current prices

323

$525 $200 / $63 $40.00 $750 $900

Prices Exclude GST

$1,200

C-Dax Ltd: Pasture Meter Tier Two with auto lift kit (c/w Console Hawkeye software) Pasture Meter with auto lift kit,(c/w XC1 Console, GPS, Hawkeye software and paddock recognition) Pasture Meter + with Auto Lift XC3 Console,(c/w GPS, Hawkeye software and paddock recognition) InEx Pasture meter with console Please note freight charge will apply Egmont Commercial Ltd: 2016 prices pH Meter- Soil / Waterproof Moisture Meter - Soil

$5,685 $6,990 $7,950 $4,475 $3,945

$48.50 / $297.00 $48.50

Hay / Silage /Crop Storage Thermometer Shoof International: (Incl delivery NZ. Some exceptions. Can change without notice) Hay/Silage/Crop in storage temperature measure Draminski $607.83 Rain Gauges Shoof International: (Incl delivery NZ some exceptions. Can change without notice) Rain gauge small / large $8.65 to $32.13 Measuring Wheels Jenquip Ltd: (prices include NZ delivery) Meas Wheel 3500 Meas Wheel 4500 Meas Wheel 5500 Meas Wheel 5500E Meas Wheel 6500 Meas Wheel 7500

$69.57 $139.13 $217.39 $260.87 $230.00 $260.87

Please check with retailer for current prices

324

Prices Exclude GST

Portable Generators and Welders Proline Welding Supplies: ARC: Inverter Weldtech 140A WT140ARC Strata 160/200A EziArc160/EziArc200 Strata 160/200A Pro-Series AdvanceArc160/AdvanceArc200 Telwin 180A Pro-Series Technology 238 MIG: Portable Type Weldtech 160A WT160MP 160A Mig/Arc Weldtech 200A WT200MP 200A Mig/Arc Strata Pro-Series 200A EziMig200 Mig/Arc Strata Pro-Series 200A AdvanceMig200 Mig/Arc Synergic Strata Pro-Series 250A AdvanceMig250 Mig/Arc Synergic Lincoln Pro-Series 200A Speedtec 200c Mig/Arc Synergic MIG: Workshop Type Weldtech 200A WT205MIG Mig/Arc Strata Pro-Series 200A XM205PRO Mig/Arc Lincoln Pro-Series 200A Speedtec 215c Mig/Arc Synergic Unimig Pro-Series 255A 255K Transformer Mig Gas set: Oxy LPG / Oxy Acetylene Uni-Flame Cutting/Welding Kit Harris Pro-Series LPG/AC 825 Cutting/Welding Kit Harris Pro-Series LPG/AC 825 Cutting/Welding/Gouging/Heating Plasma cutter: Weldtech 40A WT40DC Strata Pro-Series 40A EziCut40/AdvanceCut40 Hypertherm ProSeries 30A Welder/Generator GT Power 200A Arc Telwin 230A Inverter

Powermax PMX30AIR

GT200W 200A DC / 5kva AC Motoinverter 254 230A DC / 3kva AC Mosa 210A Diesel CT230 210A DC / 6kva AC / 3-Phase Above machines are priced as packages & include leads/torches.

$295.00 $495.00 / $649.00 $665.00 / $815.00 $1,295.00 $495.00 $895.00 $1,795.00 $2,055.00 $2,575.00 $2,575.00 $1,395.00 $1,955.00 $2,795.00 $2,995.00 $449.00 / $429.00 $726.00 $982.00 $795.00 $1,495.00 / $1,795.00 $3,199.00 $2,595.00 $4,995.00 $9,600.00

Trade Tested: (NB this is an online store. Always check availability & current pricing) 3200W Digital Inverter Generator with remote and LCD, electric start. $1,390.00 6.5 kVA Diesel Silent Generator 3 phase $2,260.00 45 kVA Industrial Diesel Generator $13,912.00 TIG Welder Inverter 200A $434.00 ARC Welder Inverter 200A IGBT $217.00 ARC Welder Inverter 160A IGBT $217.00 ARC Welder Inverter 120A IGBT $173.00 ARC Welding Electrodes 5kg 2.5mm $21.65 TIG Argon Regulator $42.60 Please check with retailer for current prices

325

Prices Exclude GST

Small Engines Kanters Engineering & Machinery Ltd:(stationary engines) Honda 6kW, (8HP) @3600rpm, 25mm straight shaft, recoil, 2:1 reduction

$1,733.87

Pruning Equipment PGG Wrightson Ltd: Pruning knife P20 Bahco Grafting knife P11 Bahco

$56.51 $47.82

Fosters Outdoor Power Equipment Ltd: Stihl HT75 Petrol Powered Pole Pruner

$1,908.00

Egmont Commercial Ltd: Garden maintenance to new generation Felco secateurs Ceramic sharpening stone Interchangeable loppers straight/curved blade var. handle options

$75 to $110.90 $37.70 from $195.00

Levin Sawmakers Ltd: Pruning Chainsaws: Echo Top Handle 25 cc $651.30 Pruning Saws: From Gomtaro Sheath saw, 180-330 mm with 8 teeth / 30 mm $64.43 to $90.39 Gomtaro â&#x20AC;&#x201C; 13 teeth 30mm for smaller branches and dry $69.76 to $51.87 Finetooth wood, 240 mm to 300 mm Natanoko 2000 Heavy duty saw with 6.5 teeth, 30mm, 330mm $113.60 Natanoko 60 300 & 330mm with 7.5 teeth / 30mm $91.74 / $99.29 Super Accel Lightweight folding pruning saw, $52.54 210mm blade with 7.5 teeth / 30 mm Zubat Taper ground blade, 240-390mm, 7.5 teeth/30mm $82.18 to $112.79 Ibuki Curved sheath saw for larger branches, 390 mm $137.86 Extension Pole Saws: Hayauchi - heavy-duty extension pole saw in three sizes. 177-39 One extension pole, to 3.7m $285.20 178-39 Two extension poles, to 4.9m $349.02 179-39 Three extension poles, 6.3m $431.68 Zubat - lightweight extension pole saw with Zubat 330mm blade: 272-12 Extension pole saw, 1.75 m to 2.7m $195.77 272-15 Extension pole saw, 2.0 m to 3.3m $215.12 272-18 Extension pole saw, 2.35m to 3.8m $248.95 Bahco Telescopic Tree Pruner, 3.5m extendable pole $223.48 Timbersaws Long Pole Pruning Saw 2.9m for 4m pruning height $149.41 Loppers: Kiwi for branches up to 45 mm diameter $153.91 Prun-off for branches up to 65 mm diameter $169.90 Rami Lopper for branches up to 85 mm diameter $180.90 Ladders aluminium â&#x20AC;&#x201C; 1.2m to 6.3m $207.23 to $491.57 Please check with retailer for current prices

326

Prices Exclude GST

Orchard Ladders Transtak Engineering & Equipment: Orchard Ladders 1.2m / 1.5m / 1.8m / 2.1m / 2.4m 2.7m / 3m / 3.3m / 3.6m

$292.46 / $308.00/ $320.65 / $347.75/ $373.45 $403.25 / $446.03 / $486.50 / $513.12

Levin Sawmakers Ltd: Allite Orchard Ladders 3 ft 4kg, 4steps to 12 ft 13kg, 13 steps Unistep (provides an extra metre)

From $240.80 to $432.32 $99.83

Log Splitters Giltrap Engineering: (prices include freight to dealers yard North (NI) and South (SI) Island) Hydraulic Woodsplitter â&#x20AC;&#x201C; 3 point linkage NI $4,175 to SI $4,475 ICS Manufacturing Ltd: Log splitters â&#x20AC;&#x201C; 3pt linkage or trailed models LS40V Vertical 3pt linkage splitter LS40T Trailed Unit Complete LS40T Hydraulic Lifting Table (for trailed unit)

Please check with retailer for current prices 327

$3,900.00 $8,880.00 $1,500.00

327

Prices Exclude GST

2.21 BUILDINGS AND STRUCTURES 2.21.1 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). 2.21.2 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. Rural Building Solutions: 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, an increase of on average 12% in Steel and Reinforcing Materials, labour costs and the increasing costs relating to Health & Safety Compliance. Herringbone The costs for herringbone dairies, including: site works, building, platform, milking plant, refrigeration, yards, basic effluent system and associated works range from about $18,500 to $20,300 per bail. For example: 40 bail Herringbone Building (including all rooms and all concrete) Yard pipe work, gates and backing gates Electrician Cold Water Plumbing & Pumps Drainage & Sanitary Plumber Milking Machinery (no ACR’s) Milk Silo Refrigeration (one silo, no heat recovery) Effluent disposal system (sand trap and ‘saucer’ only) Site works (shed & yards only) Total cost Please check with retailer for current prices

328

$8,000 to $9,000 per bail $1,800 to $1,900 per bail $1,400 to $1,500 per bail $1,800 to $1,900 per bail $400 to $500 per bail $2,400 to $2,500 per bail $1,100 to $1,200 per bail $700 to $800 per bail $900 to $1,000 per bail $18,500 to $20,300 per bail Prices Exclude GST

Rotary Rural Building Solutions: cont The costs for rotary dairies, including: site works, building, platform, milking plant, refrigeration, yards, basic effluent system and associated works range from about $21,000 to $23,000 per bail. For example: 54 bail Rotary Building (including all rooms and all concrete) Platform and associated works Yard pipe work, gates and backing gates Electrician Cold Water Plumbing & Pumps Drainage & Sanitary Plumber Milking Machinery (no ACR’s) Milk Silo Refrigeration (one silo, no heat recovery) Effluent disposal (sand trap and ‘saucer’ only) Site works (shed and yards only) Total cost

$9,000 to $10,000 per bail $2,400 to $2,500 per bail $1,300 to $1,400 per bail $1,700 to $1,800 per bail $1,200 to $1,300 per bail $400 to $500 per bail $2,400 to $2,500 per bail $1,200 to $1,300 per bail $600 to $700 per bail $800 to $1,000 per bail $21,000 to $23,000 per bail

Quinn Engineering offer the following for a herringbone cowshed: They are very much priced on design, but as a guideline the below can be used. You would need to allow around $600,000 + GST for a 35-aside. Prices can vary. Steel work is around $2,000 per set of cups x 35 = $70,000 Building work is around $6,000 per set of cups x 35 = $210,000 = $280,000 Milk Plant/water works $2,000 - $5,000 (Say $4,000 x $35) = $140,000 Electrician Allow = $60,000 Other costs – Design/Consents/Roading/Fencing Allow = $60,000 = $260,000 = $540,000 - $600,000 + GST Complete Sheds: (including equipment) DeLaval Rotary Milking System: Average Project Costs: ($,000) 2016 prices Platform Size (Bails) 44 50 54 60 70 Building: 340 - 370 380 - 420 380 - 420 460 - 480 540 - 580 Electrical 40 - 50 40 - 50 40 - 50 60 - 80 80 - 100 Plumbing 30 - 35 35 - 40 35 - 40 45 - 50 50 - 60 Plant & 325 - 350 350 - 380 355 - 400 430 - 480 450 - 480 Platform Top price is with Automatic Cluster Removers Drafting gate 35 35 35 35 35 Total 770 - 840 840 - 925 845 - 945 1,030- 1,125 1,155 - 1,255 Per bail $17,500$16,800$15,648$17,166$16,500$19,090 $18,500 $17,500 $18,750 $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. Please check with retailer for current prices 329 Prices Exclude GST 329

2.21.3 Stock Underpasses Fulton Hogan 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 $96,000. However, the prices for State Highway underpasses are much higher. This would be more in the range of $220,000 - $260,000.

Hynds Rural: (Freight not included) 2016 prices. POA 2018 Box Culverts/ Under 1,000 to 3,600mm wide x 1,000 to $3,000 to $6,000 per pass systems. 2,000mm high x 1,550mm per unit individual Box unit. Box Precast / sundry components only, does not include wingwalls, kerbs or excavation.

Please check with retailer for current prices

330

Prices Exclude GST

2.21.4 Off Paddock Infrastructure - Feed Pads / Wintering Pads and Barns / Standoff Pads There are options of covered and uncovered standoff pads, herd homes and wintering barns. Redpath Pacific Ltd: Feedpad Standoffshelters 100 cow clear roofed Standoffshelter @ 8 m2 per cow = 800 m2 = $70,000 built 200 cow clear roofed Standoffshelter @ 8 m2 per cow = 1,600 m2 = $122,000 built 300 cow clear roofed Standoffshelter @ 8 m2 per cow = 2,400 m2 = $168,400 built 400 cow clear roofed Standoffshelter @ 8 m2 per cow = 3,200 m2 = $210,000 built Another company: 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. When making any capital investment it is important to investigate all the options and determine what is required to successfully incorporate the infrastructure into the dairy business. Remember to factor in the additional operating costs that investment in infrastructure will add to your farm working expenses on an annual basis. Check the animal welfare code to ensure the proposed structure meets all animal welfare requirements. Do your calculations on the amount of manure, effluent and bedding material (if applicable) that will be produced and design your management systems accordingly. Remember to add the capital cost of dairy company shares and/or additional cows if increases are anticipated. Please check with retailer for current prices 331

331

Prices Exclude GST

2.21.5 Deer Sheds Kelvin Kimber: Red Deer Complex: Sheds, price includes stamped concrete floor, nova-lite panels in roof, spouting and downpipes, walls clad 150 x 40 RS H3 7.5x7.5m - 9x9m

$24,730.75 to $36,368.75

Shed internals, 6 various plans available, example of two plans: Plan B - 2.4m Âź circle, 3m workrace, 6 internal subdivision panels, 1.8m door, 4 x 1.2m doors. $17,239.42 Plan D - 4.5m Â˝ circle, 3m workrace, 7 internal subdivision panels, 1.8m door, 4 x 1.2m doors, 0.8m door, 0.8m triangle $22,100.82 Work and weigh race, 3m long x 800m wide, curtain $4,263.05 Swinging work race, part of large pen, push into race situation, 2.7m gate $1,815.25 Scale race, weigh, record, and draft from one position. $4,500 Scale race, air operated Full circle 4m with two revolving doors, up to 8 exit doors $13,000 Half circle 4.5m with two revolving doors, up to 4 exit doors $8,736.10 Quarter circle 2.4m with one forcing door, 2 exit, 3 door panel $5,205.50 Octagon with 4 x 0.8m doors and walls $5,295.30 Converting an existing shed would cost approximately 50% of the cost of a new shed. 2.21.6 Woolsheds Calder Stewart Industries Ltd: Woolsheds - $800 to $850 per m2 Woolaway 2016 prices A basic 3 stand level shearing board woolshed with the floor approximately 2.4 metres above ground level, costs between $800 and $900 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. Please check with retailer for current prices

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2.21.7 Stockyards - Cattle Te Pari Ltd: Cattlemaster Top 20 yards range in price from $11,000 for a holding capacity of 17 cattle to $76,500 holding 538 head of cattle and including Loading Ramp and Cattle Crush. Many more options may be added. Cattle Equipment Te Pari Ltd: Cattleyard Gates 750mm to 3600mm x 1320mm h 5 rail, 1400mm and 1580mm high 6 rail Slam latches left or right â&#x20AC;&#x201C; Heavy duty /extra striker plate Slam latch economy type 360Â° Pole Kit Sliding gate / post or rail brackets extra Sliding gate top handle for cat walk -locking Anti backing ratchet Post Extender Bracket Catwalk Brace

$168.00 to $575.00 $85.00 / $18.50 $37.50 $900.00 $900.00 $180.00 $500.00 $55.00 $60.00

Drafting Race Te Pari Ltd: 3 Way Draft Module Standard

$5,000.00

Loading Races

Hynds Rural: (Freight not included) LRCH Pre-cast concrete loading race with 1.4m high rails Te Pari Ltd: Cattlemaster Stepped loading ramp - catwalk Cattlemaster - Dual height

Please check with retailer for current prices

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$5,235.14 $4,250.00 $20,000.00

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Prices Exclude GST

Headbails Te Pari Ltd: (Further features available for purchase) Cattlemaster Calf Bail - Front opening Cattlemaster lifestyle series â&#x20AC;&#x201C; Vario Cattlemaster utility series - Auto Cattlemaster professional series â&#x20AC;&#x201C; Classic 1 and 2 Cattle Head Bail Cattle Head Bail

$1,200.00 $1,100.00 $2,500.00 $2,950.00

Hydraulic operated Manually operated

$3,495.00 $1,595.00

See also Section 2.3.15 Stock Management. Cattle Crushes Te Pari Ltd: (Further features available for purchase) Vario Handler lifestyle series Multi-Purpose Cattlemaster Junior series - various Cattlemaster vet models, professional series Cattlemaster vetless models, professional series Cattle Crush Cattle Crush

$6,800 $6,000 to $9,000 $13,500 to $25,500 $11,500 to $20,500

Air operated, Fully Automatic Manually Operated

Please check with retailer for current prices

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from from

$29,995.0 $9,995.00

Prices Exclude GST

2.21.8 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 1.2m wide 2.2m high $420 2.4m wide 2.2m high $710 3.6m wide 2.2m high $987 Gate catches 12mm pin frame catch $29 12mm pin, spring and flat/ 16mm pin, spring, and 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

$27,000.00 $7,400

Hydraulically controlled deer crush Standard Model

from $24,995.00

Please check with retailer for current prices

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Prices Exclude GST

2.21.9 Stockyards - Sheep Prattley Industries: Price varies markedly, depending mainly on capacity. 2016 prices 3 m (10’) Standard 580 ewe capacity $9,775 4.3 m (14’) Alloy Mobile Sheepyard 2200 ewe capacity $23,087 4.9 m (16’) Alloy Mobile Sheepyard 2600 ewe capacity $28,472 This example sheep yard is an average of Prattley Industries Ltd production line. Portable 3m (10’) Super Alloy sheep yard (750 ewe capacity), includes 3 section, single lane handling race $17,576 Sheep Handlers Sheep Handler – Fully Automatic, Air operated

from

Prattley Industries Ltd: 2016 prices Standard Sheep Handler Sheep Conveyor 4.2m-Mobile

$21,490.00 $4,885 $39,954

Loading Ramps Prattley Industries: (freight additional) 2016 prices Sheep 6.8m loading ramp on 13” wheels 5.8m double lane ramp on 13” wheels portable, single lane 2.3m / 3.0m / 3.6m long Cattle - 2.8m mobile standard on 13” wheels (c/w wooden - 3.6m mobile deluxe on 13” wheels floors) - 2.8m stationary standard / collapsible (alloy)

Please check with retailer for current prices

336

$5,279 $4,886 $899 / $1,212 / $1,350 $4,527 $6,864 $3,195 / $2,393

Prices Exclude GST

2.21.10 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 4.5m stud height, crop support, doors, 180 micron Duratough 4 year life minimum greenhouse film (delivered). Approximately 929 square metres - kitset from $68.00 per sq metre - constructed from $88.00 per sq metre Crop Cover: Side ventilated arch roof design, single skin, up to 3 metre stud height. Approximately 929 square metres, ultra heavy-duty kitset from $45.00 per square metre. 210 micron, 4 year warranty greenhouse covers constructed from $60.00 per square metre. Propagation Greenhouse: Semi-commercial, truss design, twinskin, ridge vent for full length, 1 door. Sizes 6m x 6m / 9m / 12m $6,300 / $7,100 / $7,800 6m x 15m, 18m, 21m $8,600 / $9,400 / $10,300 Hobby & Training Greenhouses: All 2.5m wide, one sliding door one end, glass louvre window one end, aluminium frame & base rail included, Duratough 215 micron 4 year cladding, Roof vent on 4 larger models. 1.5m / 3m / 4.5m $799 / $849 / $949 Sizes 6.0m / 7.5m / 9.0m $1,099 / $1,349 / $1,599 10.5m / 12m $1,799 $1,999 Harford Greenhouses: Kitset ex-factory Harford Propagator, single vent, 2.1 metre column, no gutters, unpainted, one set double sliding doors, manual vent operation: 6 metres x 9 / 12 / 15 metres long $8,748 / $9,758 / $10,774 9 metres x 12 / 15 / 18 / 21 metres long $12,441 / $13,899/ $15,008 / $16,467 Harford Maxi Span, twin vents, 9.2 metre span, 2.1 metre column, unpainted, one set double sliding doors, motorised vents but no controller: 24 / 30 / 36 / 48 metres long $21,850 / $24,813 / $27,784 / $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: 24 / 30 / 36 / 48 / 60 metres long $32,118 / $36,604 / $41,106 / $50,123 / $59,334 Budget Span from $48 per mÂ˛ Crop topper from $31 per mÂ˛ Sliding doors $909.00 per set Wind and temperature controllers $1,470 to $6,800

Please check with retailer for current prices

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Prices Exclude GST

Redpath Pacific Limited/ Kerilea Horticultural Systems Ltd: All frames priced and sold in packs of 25 (prices - ex factory Levin). Lo-Tunnel Cloche Frames Keri-Tough Cloche Plastic Frame width Frame Price per pack Roll width Îź Roll Price per height length roll 0.6m 0.30 m $155.25 1.12 m 50 250 m $137.00 0.6mh 0.55 m $183.77 1.62m 50 250m $194.00 0.8m 0.50 m $183.77 1.76 m 50 250 m $215.00 0.8mh 0.65 m $211.60 1.96 m 50 100 m $89.70 1.0m 0.45 m $195.50 2.65 m 50 100 m $129.00 1.0mh 0.55 m $216.20 3.40 m 50 100 m $154.00 1.0mhp 1.00 m $268.87 1.5m 0.60 m $243.00 1.5mh 0.75 m $263.00 2.0m 0.90 m $316.00 1.3hy 0.8 m $250.00 1.8hy 0.9 m $287.00 End frames (per single unit) 1.3 x 0.8m End frame only $22.00 1.8 x 0.9 m End frame only $27.00 Insulnet/ frost cloth 2m x 100m rolls $279.80 3m x 50m rolls $215.00 4m x 50m rolls $279.80 Hi GroTunnels (relocatable crop covers), fixed sides open ends Available in 5m widths 5m x 12 m length 5m x 15m length 5m x 21m length 5m x 24m length 5m x 36m length 5m x 48m length 5m x 60m length Optional Hi-Tunnel door ends Hi-Tunnel closed ends Tunnelworld: Townhouse Model: 2.3m x 3m to 2.3m x 6m - all with 1 cover, solid ends Mini Tunnelhouses 3m x 4m to 3m x 30m (1.5m height) - all one cover only 4m x 6m to 4m x 30m (1.5m height) - all one cover only

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338

$3,900.00 $4,300.00 $5,100.00 $5,500.00 $7,000.00 $8,400.00 $9,750.00 $688.00 per end $287.00 per end

$1,249 to $1,699 $2,150 to $5,750 $3,075 to $7,575

Prices Exclude GST

Greenhouse Film Placemakers: Price per roll Agpac Heavy Duty Polythene 250 micron 4m x 25m / 50m Agpac Polythene black 125 micron 2m x 50m Agpac Polythene Clear 250 micron 2m x 50m Sellotape BGPVC joining tape 48mm x 30m 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

Gauge 80 125 250 50 80 125 250

$94.77 / $190.43 $69.56 $208.69 $8.29

$40.54 to $81.54 $56.24 to $144.62 $92.26 to $184.53 $80.97 $67.48 to $134.98 $101.23 to $253.10 $190.19 to $380.36

Polygro clear per m

2/4/6m wide $4.78/$9.57/$14.34 200 8/10/12m wide $19.13/$23.91/$28.69 200 Polygro Reinforced Film 2m / 2.4m x 50m roll, clear $225.37 / $270.90 Greenhouse Film Lock Single Base 4m length / Twin Base 4m length $17.39 / $40.22 Steeltight screws 12 x 20 per 100 each $14.13 Timbertech screws 12 x 25 per 100 each $14.67 Ducting- layflat polythene tube, clear, varying sizes $68.47 to $131.50 Frametape - film protection adhesive 30mm/50mm/110mm $16.31 to $59.78 Greenhouse repair tapes- clear UV stable tape 25m x 48mm / 96mm $12.50 / $25.00 400mm x 25m / 100mm x 20m $96.73 / $89.25 $104.33 to $297.10 Mulch film, black, 30, 500m x 900 / 1,200 / 1,800mm $197.79 to $331.46 Cloche film/row covers, clear 50, 500m x 1,200 to 2,000mm

Please check with retailer for current prices

339

Prices Exclude GST

Glasshouse Heating / Controllers RCR Energy Products International: Indirect Air Heaters (Flued): Greenhouse heaters. Aquatherm Clever AH series have a size range $16,000 of 100kW to 1500 kW with the option of natural gas or diesel oil as to $52,000 fuel. Hot Water Air Heaters: Aquatherm Clever SB series fan coil units from 100 l/s air $2000 to $5,500 to1500 l/s (3kW to 60 kW heating). Aquatherm Clever MC series air handling units from 300 l/s $4,000 to $50,000 air to 20,000 litres per second (12kW to 800kW). Greenhouse Radiators: Econorad series radiators, with additional special coating for $200 to $3,500 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 20 1.7 30 4.4 80 5.0 90 5.6 100 6.6 120 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

Power 200 watt 300 watt 800 watt 900 watt 1,000 watt 1,200 watt

Price $283.00 $318.00 $514.00 $535.00 $555.00 $654.00 $105.00 $125.00 $144.00 $240.00 $68.00

Stainless Steel Electric Fan Heaters 3,000 series 7.5kW 3,000 series 10kW / 15kW 4,000 series 20kW / 30kW

$2,450 $2,600 / $2,750 $3,940 / $4,260

Richard Anderson Greenhouses Ltd.: Propagation Heating - soil heating cables 1 sq.m to 10 sq.m -thermostats can be added

$85 to $700 From $135.00

Redpath Pacific Ltd: Environment Controllers

from $4,900

Please check with retailer for current prices

340

Prices Exclude GST

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 $12,000 to $150,000 gas, 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 $19.96 Soil Temperature Thermometers $17.35 to $26.04 Infrared â&#x20AC;&#x201C; Surface temperature (not for animals) $129.57 Egmont Commercial Ltd: 2016 prices Thermometer â&#x20AC;&#x201C; propagating / soil

$13.00 / $14.40

Glasshouse Ventilation Exal Industries Ltd: Euroemme Product Extractor ED 24 3PH / 1PH Fans ED 30 3PH / 1PH EM 36 3PH / 1 PH EM 50 3PH / 1PH 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 EL 2,400 EL 3,000 Louvre motor / louvre per m / pivot & pin

Price $1,120 / $1,200 $1,300 / $1,380 $1,475 / $1,560 $1,610 / $1,730 $385 $840 $980 $1,125 $1,385 $100 $1,100 $1,350 $1,600 $1,850 $490 / $24 / $1.70

Kanters Engineering & Machinery Ltd: Greenhouse Circulation Fans Fan and Stand Combination (mostly custom ordered)

Please check with retailer for current prices 341

$390 $655

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Prices Exclude GST

Glasshouse Watering Cosio Industries Ltd: Aquafelt capillary watering mat Reinforced, white, 1,050mm x 25m rolls / 2,100mm x 25m rolls Exal Industries Ltd: Misting kit (complete with 3 nozzles) Balance arm mist controller 24 vac Transformer 24 vac Solenoid valve Misting nozzle Netafim 4 way fogger c/w LPD, weight and dropper

$190.19 / $380.236

Richard Anderson Greenhouses Ltd: Misting equipment - Minimist system â&#x20AC;&#x201C; complete 24v DC - Misting nozzles

$280 $150 $58 $49 $9 $14

$475.00 $7.00

Please check with retailer for current prices

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Prices Exclude GST

2.21.11 Houses / Cottages Durobuilt Industries Ltd: Range of 6 cottage styles One bedroom Two bedroom Three bedroom 2.21.12 Garages Durobuilt Industries Ltd: All Steel: Zincalume cladding 6m x 4m / 6m / 9m 7.2m x 6m / 9m / 12m 6m x 3.6m steel carport 6m x 5.4m steel carport 9m x 6.3m steel carport

$59,476 to $109,050 $96,760 to $124,968 $140,654 to $166,478

from $6,674 / $8,276 / $10,132 from $9,838 / $13,182 / $17,305 from $1,942 from $2,515 from $3,981

2.21.13 Implement Sheds / Haybarns / Stock Shelters / Dog Motels Implement Sheds Durobuilt Industries Ltd: Small Block Implement Sheds - 3m wide bays, 3m stud, open one side. 6m x 6m 2 bays / extra bay from $8,905 / $2,739 6m x 7.5m 2 bays / extra bay from $10,537 / $3,016 9m x 9m 3 bays / extra bay from $15,723 / $3,560 12m x 10.5m 4 bays / extra bay from $21,787 / $3,862 12m x 12 m 4 bays / extra bay from $23,468 / $4,165 Farm implement sheds - all steel, 5 m wide bays, 3m stud, open one side 15m x 7.5m 3 bays / extra bay from $18,382 / $4,617 15m x 9m 3 bays / extra bay from $20,763 / $5,024 15m x 10.5m 3 bays / extra bay from $24,212 / $6,213 15m x 12m 3 bays / extra bay from $26,318 / $6,679 Note some higher studs are also available. Lean-to implement sheds - open across front, 4.15 m bays 8.3m x 6m deep 2 bays / extra bay 8.3m x 7.5m deep 2 bays / extra bay Haybarns / Packing Sheds / Calf Sheds Durobuilt Industries Ltd: All steel, 4m bays 17m x 15m 4 bays / extra bay 17m x 18m 4 bays / extra bay 17m x 21m 4 bays / extra bay Extras Rolla door / Egress door 100mm concrete floor Please check with retailer for current prices

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from $10,802 / $3,252 from $11,932 / $3,522

from $47,432 / $8,121 from $55,238 / $9,505 from $60,483 / $10,243 $5,588 / $1,534 $97.68/m2 343

Prices Exclude GST

A supplier: All bays 4.5m wide, Zincalume only, Lean- To. 6m deep x 4.2 to 3.6m high 6m deep x 3.6 to 3.0m high 2 bay $6,500.00 2 bay 3 bay $8,200.00 3 bay 4 bay $10,100.00 4 bay 5 bay $11,600.00 5 bay 6 bay $13.300.00 6 bay 9m deep x 4.2 to 3.6m high 9m deep x 3.6 to 3.0m high 2 bay $8,200.00 2 bay 3 bay $10,600.00 3 bay 4 bay $12,800.00 4 bay 5 bay $15,100.00 5 bay 6 bay $17,300.00 6 bay

$5,900.00 $6,400.00 $8,700.00 $10,200.00 $11,700.00 $7,300.00 $9,300.00 $11,000.00 $13,000.00 $14,900.00

Calder Stewart Industries Ltd: Indicative prices ($/m2) for erected farm buildings Covered Yards $150 to $200/m2 Implement Sheds $250 to $300/m2 Haybarns $200 to $250/m2 Farm Workshops $350 to $450/m2 Storage Buildings $350 to $450/m2 Calf Sheds $200 to $250/m2 Wintering Sheds (Roof Only) $150 to $200/m2 Prices may vary depending on location, size, number of walls, floors, windows and general layout etc. Durobuilt Industries Ltd: Calf Rearing Shelters â&#x20AC;&#x201C; 2.2m stud, open one side 6m / 9m x 6m

from $7,196 / $9,410

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. $3,390 Arch Shelter, 6.1m x 5.55m x 3.68H. (assessed for standard wind zone) $3,129 Canterbury Landscape Supplies: ex yard. Prices donâ&#x20AC;&#x2122;t include freight Untreated Sawdust Untreated Shavings Tree Grindings / Canterbury Bark Truck & trailer hire available @ $140 per hour.

Please check with retailer for current prices 344

344

$/m3 $13.04 $18.00 $20.00

Prices Exclude GST

Dog Motels Aabaas Industries: (Prices are ex Christchurch factory) Motel (kennel + run) Kennel Small $333 $173 Medium $450 $236 Large $491 $266 Extra large $545 $298 2.21.14

Run $160 $214 $225 $247

Bridges

Hynds Rural: (Freight not included) 2016 prices. 2018 is POA Landspan Bridge Systems (Beams 8, 10, 12, 14, 16 m $30,000 to $65,000 and Abutments) lengths Deck Slab Bridge ( Decks and 6.4 x 2.25 or 4.5m wide $15,000 to $21,000 Abutments (Single or Double slab) Precast / sundry components only, does not include excavation, wing walls or special abutments. Stahlton Engineered Concrete: (prices exclude handrails and abutments) 2016 prices 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 Stock / light vehicle â&#x20AC;&#x201C;7 tonne 20.0m 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 Headwalls if required â&#x20AC;&#x201C; each unit Plus fee to deliver equipment to site.

$220/m $2,350

Please check with retailer for current prices

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Prices Exclude GST

2.21.15

Grain Silos

Dan Cosgrove Ltd: Farm Sized Silos Model Diam Overall tonnes Capacity m3 Wholesale (m) height (m) price Wheat Barley 15/4 4.58 4.59 49 41 61 $5,938 15/5 4.58 5.41 60 50 75 $6,379 15/6 4.58 6.22 71 59 88 $6,882 18/4 5.49 4.85 73 60 90 $6,896 18/5 5.49 5.67 88 74 109 $7,733 18/6 5.49 6.48 104 87 128 $8,274 18/7 5.49 7.29 119 100 148 $9,012 18/8 5.49 8.10 135 113 167 $9,978 18/9 5.49 8.92 151 127 186 $11,095 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 21/8 6.40 8.36 186 157 230 $13,088 21/9 6.40 9.18 207 175 257 $14,040 24/5 7.32 6.20 163 137 202 $10,940 24/6 7.32 7.01 191 160 236 $12,045 24/7 7.32 7.82 218 184 270 $13,101 24/8 7.32 8.63 246 207 304 $14,355 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 45â&#x20AC;&#x2122; Model Diam (m) Overall ht (m) Wheat (t) Barley (t) CB12/3 3.66 4.93 27 23 CB12/4 3.66 5.74 34 29 CB12/5 3.66 6.55 41 35 CB12/6 3.66 7.36 47 40 Price includes free delivery 100 km from Timaru. $3.30 plus GST per kilometre thereafter. Silos come complete with external wall ladder.

Please check with retailer for current prices

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Prices Exclude GST

Price $8,000 $8,400 $8,950 $9,600

High Legged Transportable Silos Dan Cosgrove Ltd: Five legs, 300 Cone Base Height under valve 1.4m, Auger length 45â&#x20AC;&#x2122;. 450 Cone Base Height under valve 0.6m with valve, 0.85m without. 600 Height under valve 0.68m Model Diam Overall Ht Wheat (t) Barley (t) Price (m) (m) HL12/3 3.66 5.930 25 21 $8,750 HL12/4 3.66 6.740 32 27 $9,250 HL12/5 3.66 7.550 38 33 $9,800 0 HL12/3- 45 3.66 5.900 27 23 $9,970 0 HL12/4- 45 3.66 6.740 34 29 $10,530 0 HL12/5- 45 3.66 7.550 40 35 $10,920 HL12/3-600 3.66 6.800 28 $11,984 0 HL12/4-60 3.66 7.400 34 $12,656 0 HL12/5-60 3.66 8.500 40 $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 Price 0 1.83 diameter with 60 centre draw hopper to 450 mm opening 3.32 2.81 4.1 3.280 $3,078 5.05 4.07 6.24 4.090 $3,251 6.78 5.46 8.37 4.913 $3,424 Factory erection cost $800 2.74 diameter with 450 centre draw hopper to 150 mm opening 6.92 5.90 9.03 4.299 $4,220 10.59 9.03 13.82 5.113 $4.521 14.26 12.16 18.62 5.927 $4,721 17.93 15.29 23.42 6.741 $4,937 Factory erection cost $1000 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 13.43 20.57 5.815 $4,697 20.84 17.68 25.37 6.629 $4,881 Factory erection cost $1,100 www.dancosgrove.co.nz phone 03 6879440 Please check with retailer for current prices

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Prices Exclude GST

2.21.16 Diesel Tanks Ross Irving Ltd: Price varies with each application depending on the fittings and containment required, plus location and transport. 1,000 litre / 2,000 litre stationary basic tanks $1,800 / $2,400 1,000 litre portable basic tank $4,400 Pumps, hoses and nozzles extra Also have Certificates for Aviation and jet fuel tanks, POA 2.21.17 Killing Sheds Pre-cast Concrete

Hynds Rural: (Freight not included) 2016 prices Varying sizes

Prices range from $3,500 to $5,000

2.21.18 Dangerous Goods Sheds Hynds Rural: (Freight not included) 2016 prices DG2400AM Medium Dangerous Goods Shed

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348

$5,282.00

Prices Exclude GST

2.21.19 Building Materials Roofing Placemakers: Corrugated Zincalume .40 1.8m / 3.3m Suntuf Solar Grey Corr Roofing 1800 x 860mm / 3600 x 860mm Marley Stormcloud spouting MS1.3 x 3m / MS1.5 x 5m Marley Stormcloud spouting Joiner MS5 Marley 65mm RP65 / 80mm RP80 round downpipe -3m

$34.42 / $62.98 per sheet $47.05 / $90.97 per sheet $29.52 / $51.64 per length $2.64 each $21.29 / $27.66 per length

Cement Products Higgins Concrete Ltd: (ex Palmerston North and Feilding) Concrete Grade 19 mm ($ per m3) 12 mm ($ per m3) 10 / 15 / 17.5 / 20 MPa $199 to $216 $205 to $222 25 / 30 / 35 / 40/50 MPa $228 to $283 $234 to $290 Kerbmix $225 $240 Blockfill $249 Accelerator { Sika set } per 1% $6.75 per m3 Non Chloride Accelerator per 1% / per 2% $9.50 per m3/ $16.50 per m3 Superplasticiser $15.50 per m3 Fibre Mesh $25.00 per m3 Black colouring $60.00 per m3 Small load surcharge <1.0m3 / < 2.0m3 $60.00 per load Truck Hire - $110.00 per hour Cement Placemakers Golden Bay Cement 25kg

$9.56 per bag

Shingle Products Canterbury Landscape Supplies: ex yard. Freight not included Small River Stones (20 / 40ml) Top Course AP 20 / Crusher Dust 10mm chip / 19mm premix Washed Sand Lime Chip 15mm / Oamaru Pebble Tasman Blue Chip / Riwaka Gold Chip Higgins Concrete Ltd: (Manawatu area) Pea Metal (minimum charge $60 per load) River Run (minimum charge $60 per load) Gap 40 Basecourse (minimum charge $75 per load)

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349

$/m3 $67.83 $67.83 $67.83 $91.30 $143.48 $247.83 $25.00 per m3 $25.00 per m3 $30.00 per m3

Prices Exclude GST

Canterbury supplier: 2018 prices

per tonne $16.25 to $19.83 $11.33 to $17.57 $15.15 to $17.45 $16.42 / $29.65 / $29.65 $8.14 $29.65 / $24.58 $31.16 / $28.40 / $32.09

Crushed stabilised metal courses SAP 40 to SAP 20 Crushed metal courses CAP 65 to CAP 20 NZTA crushed metal course AP 40 to AP 20 Drainage aggregates AP 40 / GC 14-10 / GC 10-5 Pit run Sealing chip grade 2 - grade 6 / reject chip Concrete sand / fill sand / natural NAP5 Aggregate Supply (tip truck delivery) Truck only, 10 tonne load, $110 per hour. Truck and trailer, 24 tonne load, $150 per hour. Fulton Hogan Quarries: (Poplar Lane Quarry) $/t Sealing Chip Grade 2 to Grade 6 $44.99 Sand - washed BRS / PLQ $30.54 / $34.55 Concrete Aggr 19mm $44.99 Drainage Metal 100/40 & 65/40 $25.97 Drainage Metal 20/5 & 40/20 $24.18 & $25.97 Roading Aggr* GAP20 & GAP 40 $19.47 & $21.23 Farmers 40 & 60 $17.50 Forestry AP150 $15.17 *Minimum price applies Polythene See Section 2.21.10

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350

Ě´ $ / m3 $60.28 to $63.88 $42.75 / $48.36 $63.89 $35.07 & $36.36 $33.85 & $36.36 $31.15 & $33.97 $26.25 $22.75

Prices Exclude GST

2.22 SHELTER AND FARM FORESTRY COSTS 2.22.1 Seedling Trees Southern Woods: Acacia floribunda Acacia pravissima Austroderia toe toe Chamaecytisus palmensis Cupressus x leylandii Cupressus torulosa Photinia Pittosporum eugeniodes Populus euramerica Salix â&#x20AC;&#x201C; Japanese Fodder

Grade cm 25-60 / 4.5L 40-95 Root trainer 20-30 1L - 2.5L 1L - 2.5L 1L - 2.5L 7cm tube - 2.5L Bare rooted Bare rooted

Ea 100 + $2.48 / $11.74 $2.48 $2.69 $2.70 $5.00 - $8.26 $5.00 - $7.78 $4.86 -$11.74 $2.70 -$7.78 $2.22 $2.22

Ea 1,000 + $1.61 / $11.74 $1.61 $2.26 $2.36 $5.00 - $8.26 $4.61 - $6.87 $4.44 - $11.74 $2.26 - $7.78 $2.22 $1.96

Native Regeneration Pack Southern Woods supply an option to plant natives. They offer 100 trees from any of the 7cm or Root Trainer Grade for $265.22 (including 100 Grotabs, slow release fertilizer). Murrayâ&#x20AC;&#x2122;s Nurseries Ltd.: Pinus radiata Seedlings Price per 100 Price per 1,000 All are topped to 30cm GF19 (OP) $45.00 $295.00 CP. WD25 $50.00 $425.00 All pines for collection will be packed as quoted. Pines to be freighted require additional packaging. Freight is extra. Prices include RPBC royalties on rated seed. Appletons Tree Nursery: Note: Quotes will be given on large orders. Orders in multiples of 10 Prices 50+ Ea Italian Alder (Alnus cordata) in varying heights $2.00 to $2.50 Douglas Fir 2yr old Seedlings $0.95 Quercus (Oak) species in varying heights $2.15 to $4.15 Poplar varieties (rooted plants in varying heights) $2.90 to $3.00 Pinus radiata Seedlings GF19 orders for GF (SSOP) 2019 GF + High wood density (CP) GF 19 (Plug grown) Please check with retailer for current prices

351

Price per 100+ $52 $52 $85 $84 351

Prices 1,000 Ea $1.85 to $2.40 $0.60 $2.00 to $3.90 $2.80 to $2.90 Price per 1,000 $330 $330 $490 $840

Prices Exclude GST

Appletons Tree Nursery: cont Pinus radiata Cuttings GF+High wood density (CP) Appletons Tree Nursery Cedrus deodara Cupressus arizonica v. glabra Cupressocyparis cv ovensii (Pots) Sequoia sempervirens (various) Thuja plicata Eucalyptus nitens (Plug grown) Pittosporum varieties Flowering trees/shrubs Choisya ternata Prunus cerasifera Viburnum (various)

$85

$490

Prices 10 â&#x20AC;&#x201C; 40 ea $3.80 to $9.35 $4.50 to $5.00 $6.45 $3.80 to $4.50 $3.80 to $7.15 $3.05 $3.25 to $4.05 $3.25 to $4.05 $6.45to $10.90 $3.60 to $5.90

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352

Prices 50+ ea $1.75 to $5.55 $2.65 to $3.00 $4.90 $2.15 to $3.45 $1.75 to $4.15 $1.80 $2.15 to $3.60 $2.15 to $2.65 $3.40 to $4.80 $2.15 to $2.90

Prices Exclude GST

2.22.2 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 are: Establishment Spot spraying before or after planting flat (easy) hill 40 to 50 cents per spot (The above costs include chemical at 3 to 6 cents per spot) Ripper hire $45 to $65 per hour in use Contract ripping $65 per km, or $190 to $230 per ha Hand planting - radiata (bare rooted) - flat 37 to 45 cents per tree - hill 44 to 53 cents per tree - other (bare rooted) 46 to 56 cents per tree - containerised stock Hourly rate ($30-$40) 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 to 20 ha $148 to $188 per ha applied Tending Pruning - first lift $1.70 to $2.15 per tree - second lift $1.65 to $2.45 per tree - third/fourth lift $2.10 to $3.15 per tree Thin to waste - first thin to 400 to 600 trees $500 to $900 per ha - second thin to 200 to 300 trees $500 to $900 per ha Note: Hourly rates of $40 to $55 per hour, add $12.00 per hour for chainsaw. In the North Is, planting and thinning costs will be higher than this. Hand spot spraying and planting (flat and hill) 5 â&#x20AC;&#x201C; 10c higher. Pruning 15% higher. Thinning 15-20% higher.

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Seedlings See Section 2.22.1. Fire Insurance Source: FMG example only Item Policy Type Sum Insured Excess Liability Automatically includes $1,000,000 $250 $1,000,000 cover for Forest & Rural Fires Act Forestry (40ha of Agreed Value $300,000 2.5% of total 16 year old Pine) plantation Windstorm 50% of block value (min $2,500, max Optional Benefit sum insured on Forestry $50,000)

Premium $215.05 $561.05 $1,897.50

2.22.3 Logging and Transportation Costs Task Price Logging - Ground based logging $20 to $40 /tonne - Cable logging $30 to $60/tonne - Helicopter logging, depends on flight time or distance Roading - Range from $1.00 to $10.00/tonne Log loading $2.00 to $3.00/tonne Log transport, less than 25km 45 cents /tonne per km Log transport, more than 25km to 50km 30 cents /tonne per km Log transport, more than 50km 27 cents /tonne per km 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. 2.22.4 Tree Planting Equipment Levin Sawmakers Ltd: Planting Spades - length 960-980mm, blade length 310-320mm, Planting Frame with Waist Pad + Belt complete Forestry Ladders Transtak Engineering & Equipment: Forestry Ladders with bolt on / weld on top 1.2m / 1.5m / 1.8m 2.1m / 2.4m / 2.7m 3m / 3.3m / 3.6m 3.9m / 4.2m / 4.5m (sizes 3.3m+ come with safety chain top) NB sizes 3.3m+ come with safety chain top at stated prices. Please check with retailer for current prices

354

$99.00 $101.47

Plain $204 / $225 / $240 $259 / $279 / $296 $318 / $363 / $382 $400/ $421 / $439

Prices Exclude GST

2.22.5 Shelter / Windbreak / Shade and Weed Cloth Cosio Industries Ltd: Shadecloth 25-30% Green/White, 2 to 4 x 50m Shadecloth 50-60% Green/White/Black 2 to 4 x 50m Shadecloth 70-80% Green/White/Black 2 to 4 x 50m Shadecloth 85-90% Green/Beige 1.83 x 50m Weedmat woven Black, UV stabilised, 0.91 to 4.5m x 50m Geocil non-woven Black, weed control,1m to 2m x 50m Ground staples galv for weed control fabrics, 130/230 mm per 200 Plastic pins for weed control fabrics, 170mm per 50/500 Agracil Windbreak green/black, 0.91m to 3.66m x 50m Polyclips - windbreak and shadecloth fastening pkt 50 / box 500 Landscape and Grower Supplies Ltd: Bamboo stakes cents / ea 2.4 / 1.8m / 1.5m / 1.2m Knitted Windbreak 1.8m / 3.66m x 50m Knitted Shadecloth 30% 3.66m x 50m Knitted Shadecloth 50% 1.83m x 50m Tree tie webbing x 100m

$183.15 to $366.29 $268.16 to $536.31 $336.62 to $673.24 $293.42 $47.93 to $233.92 $37.17 to $74.34 $19.56 / $35.87 $9.79 / $76.07 $59.54 / $238.14 $11.96 / $92.38

0.62 / 0.48 / 0.34 / 0.21 $175.03 / $340.00 $325.00 $245.00 $32.00

Primehort: indicative pricing only, bulk deals and different sizes available Fibreglass fencing stakes: 1200 x 10mm 1500 x 10mm

$1.50 $2.00

Newfield Marketing: KBC SquareGuard Tree shelter 600mm x 100mm sq $3.49ea 600mm x 150mm sq â&#x20AC;&#x2DC;Maxiâ&#x20AC;&#x2122; $4.74ea 750mm x 100mm sq $3.99ea 1200mm x 125mm $6.99ea Handy Mesh 900mm x 30m protect from rabbits/possums/hares/sheep $189.00 NetSleeve 200mm dia x 250m (when purchased as 1 to 3 rolls) $99.00ea TriGuard 450mm x 200mm / 600mm x 200mm plus stakes $1.99 /$2.39ea TriGuard 750mm long $2.98ea Elson Stakes plastic coated steel-0.9m to 2.4m $1.06 to $7.06 ea Tubex (Tubular): Bundle Qty = 60 $8.35ea 1.2m x 80 to 120mm diameter 1 to 3 bundles = $7.30ea Spray Sleeves Supplied in open cartons of 1,200 guards. 500mm x 150mmdia Split / Unsplit. $0.39ea

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Prices Exclude GST

Newfield Marketing: Weed Matting - EcoWool Mulch Mat 1.8m Ă&#x2014; 30m roll 1 - 4 rolls 5 - 10 rolls $279 each $259 each 0.45 m x 0.45 m mat 100 - 399 mats 400 - 1499 mats with centre slit $1.48 each $1.29 each Galv Wire Pins 1 to 3 cartons 4 to 9 cartons 130mm â&#x20AC;&#x201C; Pack (200) $35 each $31.50ea Fruitfed Supplies: (Empak Products) Weedmat Premium 91cm x 50m / 1.83m x 50m Windbreak premium 1m x 50m / 1.83m x 50m

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356

11 - 20 rolls $235 each 1500 - 2999 mats $1.19 each 10+ cartons $29.90ea

21+ rolls $229 each 3000+ $1.15each

$42.60 / $86.95 $78.25 / $152.17

Prices Exclude GST

2.23 COMPUTERS 2.23.1 Farmers’ Requirements Market surveys have revealed the following uses of the on-farm computer.  Farm financial record-keeping/analysis.  Farm physical record-keeping/analysis.  Accounting and payroll.  Farm decision analysis, e.g. investment analysis, linear programming, etc.  Breeding records.  Mapping of the property.  Communication with other computers to gather information; or  Communication with other computers to execute market transactions, e.g. order machinery parts, sell produce, etc.  Education and entertainment. 2.23.2 Guidelines for Purchasing a Farm Computer Three questions should be answered before making a final decision to purchase a computer. These are:  What are the current requirements and problems on the property?  Can these be best fulfilled or overcome using a computer or are there other least cost alternatives available, e.g. secretarial services or mail-in services?  The final question is - the choice of system to be purchased? This will be discussed under the following three headings:  Software  Hardware  General Criteria Farmers are advised to seek advice from qualified people before incurring any expenditure on farm computers. Software  Do the programmes meet the requirements of the farm or farmer?  Are they endorsed by relevant professional and educational institutions?  Are the programmes technically correct?  Are the programmes easy to use?  Are the programmes flexible and adaptable i.e. if the farmer changes farming type, policy or legislation changes, e.g. tax changes?  Is there adequate back-up support if problems occur?  Is the data required to run the programmes readily available?  If an on-line system is desired – expense and access to broadband services? Hardware  Is there sufficient capacity, in terms of memory and permanent storage, to handle the data to be processed? Has the particular make and model of computer got a good name for reliability? Please check with retailer for current prices 357

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Prices Exclude GST

 In the event of a breakdown how quickly can the machine be repaired, i.e. is there some one local to repair the computer?  Is replacement equipment provided while yours is being repaired? General Criteria  What assurances are given regarding delivery, and installation dates, guarantees and maintenance?  What is the cost of the service contract after the warranty expires?  Is the dealer likely to stay in business?  If programmes are especially written for you, who owns them? Can copies be sold to third parties?  Is the firm's hardware and software likely to change? What is the fully maintained life expectancy of their products 2.23.3 General Guidelines When purchasing a new computer the minimum specification should be: Computer: There is a lot of jargon involved in buying a computer, but the crucial issues are the speed that it operates and the amount of memory loaded. A minimum speed of 2.8 GHz (up to 3.9 GHz available with Turbo boost), at least 8GB RAM (up to 16GB available), at least 900 GB hard disc (up to 2TB available), and a DVDRW or Blu-ray. New technology available now are SSD drives, instead of hard drives, that make retrieval of data faster. The number of USB ports is also important for plugging in printers, a mouse, flash drives and scanners, unless you use wireless accessories. All computers now include a wireless modem for accessing the Internet. A desktop computer with this sort of capability could be expected to cost within the range of $795 to $1,595. Laptops range from $800 to $3,000. Data like this goes out of date very quickly. Check before you buy. Buyer beware. Smart phones and tablets continue to add real value to the industry, with applications (apps) becoming increasingly powerful. Printer: The choice of printer will depend on the end use of the computer output. A reliable ink jet printer for general office use would cost between $99 and $400 for a smarter multifunction one. Laser printers offer the highest print quality for modest running costs. Typical prices for laser printers are $99 to $399 for black and white printing and multifunction, and for colour printing from $199 upwards. Combination printers, faxes, scanners and copiers are priced from $199 upwards. Software: A farmer would normally require the following software:  Financial recording and budgeting system. Most systems are now cloud based and fees are paid monthly. Suitable products are available from between $23 to $80 monthly. Some are still available as an annual fee.  Word processing  Spreadsheet Most computer hardware packages will come with Windows 10. General word processing, spreadsheet, database software and Internet and educational or games software, may have to be purchased separately at the time of the deal. Please check with retailer for current prices 358

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Prices Exclude GST

2.23.4 Hardware Prices The Laptop Company: Entry Level Laptop Budget Price $1,025 - $1,295 (laptop only with Operating System)  Cost effective, but may struggle to run some programmes  These units are built to a price  Generally are not as robust and reliable  Normally only have a 1 year warranty Mid Level Laptop (We would recommend this level for most primary sector users) Budget Price $1,295 - $2,095 (laptop only with Operating System)  Will efficiently run most programmes  The chassis and casing are built from better quality products making it more robust  The unit is generally made from better quality componentry  1 or 3 year warranty Highend Laptop Budget Price $2,195 upward ((laptop only with Operating System)  The same features or slightly improved on the mid entry  These units will be lighter or perhaps smaller than the mid entry models  Capable of running high end intensive (mapping) programmes  3 year warranty Desktops range Entry Level $795+Gst Mid range $1,395+Gst High range from $1,595+Gst and upward Any requirements can be discussed and the suitable hardware recommended Global PC Ltd: Low range $433 Intel Celeron N3160 1.60GHz Quad Core (Up to 2.24GHz, 2MB L2 cache) Processor 4GB LPDDR3 RAM 16GB eMMC Storage Intel HD Graphics 11.6" HD (1366x768) Screen Chrome OS 802.11ac, Bluetooth 4.2 Crystal Eye Webcam Battery: 3 Cell Li-Ion 4090mAh Battery Dimensions (mm): 297.6 (w) x 210 (d) x 22 (h) Weight: Approx. 1.35 kg 2x USB3.0, 1x HDMI, 1x 3.5mm Audio Combo Jack

Mid range $868 Acer A315-21 15.6" HD Screen Operating System: Windows 10 Home 64 Bit Screen: 15.6" HD (16:9) 1366 x 768 Processor: AMD A4-9120 2.2GHz Quad Core (Up to 2.5GHz, 1MB L2 Cache) Memory: 8GB DDR4 SDRAM Storage: 250GB 2.5" SSD Optical Drive: N/A Graphics: AMD Radeon R5 1x HDMI, 1x USB 3.0, 2x USB 2.0, 1x Ethernet (RJ-45), 1x 3.5mm Audio Out, Multi-in-1 card reader

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Global PC: cont High range $2,086 ASUS ROG GL553VD-DM365T i7 Processor: Intel® Core™ i7 7700HQ Processor, Operating System: Windows 10 Home Memory: 8GB DDR4 SDRAM Display: 15.6" (16:9) LED backlit FHD (1920×1080) 60Hz Anti-Glare Panel with 45% NTSC Graphics: NVIDIA GeForce GTX 1050 with 4GB GDDR5 VRAM Storage Solid State Drive: 512GB SATA3 SSD Optical Drive: Super-Multi DVD WebCam: HD Web Camera Networking: Wi-Fi: Integrated 802.11 AC 1 x USB 3.1 TYPE C port(s), 2 x USB 3.0 port(s), 1 x USB 2.0 port(s), 1 x RJ45 LAN Jack for LAN insert, 1 x HDMI Dimensions: 15.07 × 10.03 × 1.18 inch (WxDxH) Weight: 2.5 kgs

Please check with retailer for current prices

360

Tablet $1,564

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Prices Exclude GST

2.23.5 Software Prices Cashmanager Focus www.crssoftware.co.nz CRS Software Ltd.: Cash Manager Focus â&#x20AC;&#x201C; Monthly Subscription

$65

MYOB NZ Ltd Product MYOB Essentials Accounting Starter MYOB Essentials Accounting MYOB Essentials Payroll MYOB Essentials Accounting with Payroll MYOB AccountRight Basics MYOB AccountRight Standard MYOB AccountRight Plus (incl MYOB Payroll) MYOB AccountRight Premier with Payroll MYOB AccountEdge Basic (for Mac) MYOB AccountEdge Pro (for Mac) MYOB AccountEdge Network Edition (for Mac) MYOB Payroll

RRP $25 / month $35 / month $30 / month $52 / month $40 / month $55 / month $76 / month $90 / month $599 $1,399 $1,699 $699

Flock-Linc: New Zealand Flocks Annual Flock Fee Annual New Animal Identified Fee Enrolment Fee per flock (charged once) SIL Annual Flock Fee SIL New Animal Identified Fee Discounts available: $0.20 per new animal identified if data transferred electronically Flock-Linc: International Flocks Annual Flock Fee Annual New Animal Identified Fee Enrolment Fee per flock (charged once) SIL Annual Flock Fee SIL New Animal Identified Fee Discounts available: $0.15 per new animal identified if data transferred electronically $0.15 per new animal identified if flock over 300 ewes

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$65.00 $1.10 $100.00 $80.00 $0.73

$65.00 $1.10 $100.00 $160.00 $1.32

Prices Exclude GST

i.Agri Ltd: An easy to use tool for farmers. Some features include; Advanced mapping, Feed Budgets, Paddock and Stock Diaries, Hazard Identification. Plan Features Per month IAGRI HSC Staff mgmt, mapping, site induction/staff $50.00 BASIC training, fleet mgmt, hazard identification, incident reporting IAGRI HSC Incl above & Task management, $60.00 PLUS timesheets COMPLETE c/w PLUS & Animal mgmt, ancestry, Tier 1(< 250 animals)=$80 PACKAGES treatment, feed, warehousing, rotations, Tier 2 (251-500) = $100 cropping, cashbook, invoicing, iAgri Tier 3 (501-750) = $130 connect Tier 4 (751-1,000) =$180 Complete (1,000) = $250 New Zealand Performance Recording Services Limited (NZPRS) NZPRS, a major service provider with Sheep Improvement Limited (SIL), offers full or partial bureau services to sheep (SIL) and deer (Deer Select) breeders. NZPRS uses the Studfax livestock recording program ($1,400+GST) to interface seamlessly via the Internet with breeders using Studfax on their own computers. NZPRS also provides Studfax sales and support services. NZPRS can enter back data and assist breeders with the transition from a manual to a computer recording system. Annual Fees (basic) NZPRS flock / herd registration (electronic data exchange) $460 + GST SIL charges (GST exclusive): Annual SIL Flock and Herd Fee $80, New IDâ&#x20AC;&#x2122;s Sheep/Deer $0.73 / $2.64 Manual data entry services, tailored reports, consultancy services charged by the hour. Livestock Improvement Corporation: MINDA MINDA fees consist of a monthly herd fee, plus a monthly animal fee for each animal. MINDA LIVE / MINDApro / Minda app Monthly fee Herd fee $56.00 Plus a per animal fee $0.28 MINDA Reports The following reports are available for MINDA dairy customers only (unless otherwise stated). They are not part of any standard MINDA subscription and charges will apply Customised Reports $59 per report Mating Detail Certificate book $62.00 Three Generation Pedigree $10.00 / animal Reports for clients not signed up for MINDA $59.00 / report Paper reports ordered through LIC customer experience centre $59.00 ea Electronic reports ordered through LIC customer centre $36.00 ea Please check with retailer for current prices

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Prices Exclude GST

Ace Payroll Plus (It is very popular with small businesses and incorporates current tax codes and rates which are updated whenever legislation changes. IRD returns can be printed from the programme, and it has very flexible pay features â&#x20AC;&#x201C; casual, permanent, hourly, and piece rates.) Windows version $349 Includes 6 months complimentary support. After this, monthly support can be purchased at $25 / month. Support covers any 0800 phone calls, use of online backup option and any upgrades in that time.

Please check with retailer for current prices

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Prices Exclude GST

2.24 APPENDIX: RATE OF INFLATION IN NEW ZEALAND 1891 TO JUNE 2018 (These data will soon move to the on-line version of the Financial Budget manual). The Consumer Price Index (C.P.I.) measures the rate of inflation for each year, for example, 0.5% in 1892 and 3.2% in 2005. To calculate the fall in the value of the dollar from any of the base years (where value shown is 1.0000) simply divide 1.0 by the value of the dollar in the year of interest. For example: (i) 1891 (below) compared with 2005 = 1.0 divided by 0.0074 = 135.14 This means a dollar (ten shillings) in 1891 would buy 135.14 times as much as a dollar in 2005. (ii) 1950 compared with 1984 = 1.0 divided by 0.0681 = 14.68 times more purchasing power. Base Year: Year 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1903 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921

C.P.I% 0.5 2.7 0.5 -0.5 0.5 1.0 4.1 -3.4 2.0 3.0 2.4 -0.5 0.0 0.0 6.6 -0.9 0.0 -1.3 1.4 -0.9 3.2 2.2 4.3 7.8 8.0 9.9 12.2 7.7 13.6 3.3

1891 1.0000 0.9947 0.9682 0.9632 0.9681 0.9631 0.9532 0.9143 0.9457 0.9265 0.8988 0.8771 0.8812 0.8812 0.8812 0.8228 0.8301 0.8301 0.8412 0.8298 0.8372 0.8107 0.7929 0.7589 0.6996 0.6435 0.5798 0.5090 0.4696 0.4059 0.3926

1920 1930

1940 1950 1960 1970 1980

1990

2000 2010

1.000 0.9672

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Prices Exclude GST

Year 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966

C.P.I % -10.9 -2.5 2.1 0.5 0.5 -0.8 0.0 -0.3 2.01 7.6 7.9 4.6 1.3 3.8 2.8 7.1 3.1 4.6 4.1 3.7 3.1 2.5 1.8 1.3 0.7 3.3 8.0 1.6 5.8 10.9 7.9 4.6 4.5 2.6 3.4 2.2 4.5 7.5 -2.7 1.8 2.6 2.0 3.4 3.4 2.8

1891

1920

1930

1940

1950

1960

0.4353 0.4464 0.4371 0.4348 0.4326 0.4359 0.4359 0.4370 0.4460 0.4797 0.5177 0.5415 0.5345 0.5142 0.5000 0.4643 0.4501 0.4295 0.4118 0.3965 0.3842 0.3744 0.3676 0.3628 0.3604 0.3486 0.3207 0.3157 0.2976 0.2651 0.2443 0.2332 0.2227 0.2168 0.2095 0.2048 0.1957 0.1810 0.1860 0.1827 0.1779 0.1743 0.1683 0.1626 0.1581

1.0725 1.0998 1.0768 1.0713 1.0658 1.0739 1.0739 1.0739 1.0987 1.1819 1.2754 1.3341 1.3169 1.2667 1.2319 1.1439 1.1089 1.0581 1.0145 0.9768 0.9465 0.9224 0.9058 0.8937 0.8878 0.8589 0.7902 0.7779 0.7331 0.6532 0.6019 0.5745 0.5487 0.5342 0.5161 0.5046 0.4820 0.4460 0.4582 0.4501 0.4382 0.4294 0.4147 0.4006 0.3895

1.0000 1.0757 1.1608 1.2142 1.1986 1.1529 1.1212 1.0411 1.0093 0.9631 0.9233 0.8891 0.8615 0.8395 0.8244 0.8314 0.8081 0.7817 0.7192 0.7080 0.6672 0.5946 0.5478 0.5229 0.4994 0.4862 0.4698 0.4593 0.4387 0.4095 0.4170 0.4097 0.3988 0.3908 0.3775 0.3646 0.3545

1.0000 0.9629 0.9330 0.9092 0.8928 0.8809 0.8752 0.8466 0.7789 0.7667 0.7226 0.6439 0.5933 0.5663 0.5408 0.5266 0.5087 0.4974 0.4751 0.4396 0.4516 0.4437 0.4319 0.4232 0.4088 0.3949 0.3839

1.0000 0.8911 0.8211 0.7837 0.7485 0.7287 0.7041 0.6884 0.6575 0.6084 0.6250 0.6140 0.5978 0.5857 0.5657 0.5465 0.5313

1.0000 0.9824 0.9564 0.9371 0.9051 0.8743 0.8500

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1970 1980 1990 2000 2010

Prices Exclude GST

Year 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CPI % 6.1 4.2 5.0 6.5 10.4 6.9 8.2 11.2 14.7 16.9 14.4 11.9 13.7 17.1 15.5 16.1 7.4 6.1 15.5 13.2 15.7 6.4 5.7 6.1 4.5 0.8 1.4 2.8 3.8 2.3 1.2 1.2 0.3 3.1 2.5 2.7 1.1 2.3 3.2 3.4 2.4 4 2.1 2.3 4.4 0.9 1.3 0.9 0.3 1.1 1.4 1.5

1891

1920

1930

1940

1950

1960

1970

1980

1990

2000

2010

0.1484 0.1421 0.1351 0.1263 0.1131 0.1053 0.0967 0.0859 0.7333 0.0609 0.0522 0.0459 0.0396 0.0328 0.0278 0.0233 0.0216 0.0203 0.0171 0.0149 0.0125 0.0117 0.0111 0.0104 0.0099 0.0098 0.0097 0.0094 0.0091 0.0089 0.0088 0.0087 0.0087 0.0084 0.0082 0.0080 0.0079 0.0077 0.0074 0.0072 0.0070 0.0067 0.0066 0.0064 0.0062 0.0061 0.0060 0.0060 0.0059 0.0059 0.0058 0.0057

0.3657 0.3502 0.3327 0.3112 0.2787 0.2595 0.2383 0.2117 0.1807 0.1501 0.1285 0.1132 0.0976 0.0809 0.0684 0.0574 0.0532 0.0499 0.0422 0.0366 0.0309 0.0289 0.0273 0.0256 0.0244 0.0242 0.0239 0.0232 0.0225 0.0220 0.0217 0.0215 0.0214 0.0207 0.0202 0.0197 0.0195 0.0190 0.0184 0.0178 0.0173 0.0166 0.0163 0.0159 0.0152 0.0151 0.0149 0.0148 0.0147 0.0145 0.0143 0.0141

0.3328 .03187 0.3028 0.2833 0.2537 0.2363 0.2168 0.1927 0.1645 0.1366 0.1170 0.1030 0.0889 0.0737 0.0623 0.0523 0.0484 0.0455 0.0384 0.0333 0.0281 0.0263 0.0248 0.0233 0.0223 0.0221 0.0218 0.0211 0.0205 0.0200 0.0198 0.0196 0.0195 0.0189 0.0184 0.0179 0.0177 0.0173 0.0168 0.0162 0.0158 0.0152 0.0149 0.0145 0.0139 0.0137 0.0136 0.0134 0.0134 0.0133 0.0131 0.0129

0.3605 0.3452 0.3280 0.3068 0.2747 0.2558 0.2349 0.2087 0.1781 0.1480 0.1267 0.1116 0.0963 0.0798 0.0674 0.0566 0.0524 0.0492 0.0416 0.0361 0.0304 0.0285 0.0269 0.0253 0.0242 0.0240 0.0237 0.0230 0.0223 0.0218 0.0215 0.0213 0.0212 0.0205 0.0200 0.0195 0.0193 0.0188 0.0182 0.0176 0.0172 0.0165 0.0162 0.0158 0.0151 0.0150 0.0148 0.0146 0.0146 0.0144 0.0142 0.0140

0.4988 0.4777 0.4539 0.4245 0.3802 0.3540 0.3251 0.2888 0.2465 0.2048 0.1753 0.1544 0.1332 0.1104 0.0933 0.0798 0.0725 0.0681 0.0576 0.0500 0.0421 0.0394 0.0372 0.0349 0.0333 0.0330 0.0325 0.0316 0.0307 0.0300 0.0296 0.0293 0.0292 0.0283 0.0276 0.0268 0.0265 0.0259 0.0251 0.0242 0.0237 0.0227 0.0222 0.0217 0.0208 0.0206 0.0203 0.0201 0.0201 0.0198 0.0196 0.0193

0.7981 0.7642 0.7262 0.6792 0.6083 0.5664 0.5201 0.4621 0.3943 0.3276 0.2805 0.2470 0.2131 0.1766 0.1493 0.1253 0.1160 0.1090 0.0921 0.0799 0.0674 0.0631 0.0595 0.0559 0.0534 0.0530 0.0523 0.0508 0.0493 0.0482 0.0476 0.0470 0.0469 0.0454 0.0443 0.0431 0.0426 0.0416 0.0403 0.0389 0.0380 0.0365 0.0357 0.0349 0.0334 0.0331 0.0326 0.0323 0.0322 0.0319 0.0314 0.0310

1.0000 0.8955 0.8338 0.7658 0.6803 0.5806 0.4824 0.4130 0.3637 0.3138 0.2600 0.2198 0.1845 0.1708 0.1605 0.1356 0.1177 0.0992 0.0929 0.0876 0.0823 0.0786 0.0778 0.0767 0.0745 0.0723 0.0706 0.0698 0.0690 0.0687 0.0666 0.0649 0.0632 0.0625 0.0611 0.0591 0.0571 0.0557 0.0535 0.0524 0.0512 0.0489 0.0485 0.0478 0.0474 0.0473 0.0467 0.0461 0.0454

1.0000 0.8453 0.7094 0.6570 0.6171 0.5216 0.4526 0.3815 0.3572 0.3368 0.3163 0.3021 0.2997 0.2955 0.2872 0.2788 0.2724 0.2691 0.2659 0.2651 0.2569 0.2505 0.2437 0.2410 0.2355 0.2279 0.2202 0.2149 0.2063 0.2020 0.1973 0.1886 0.1869 0.1845 0.1828 0.1822 0.1802 0.1777 0.1751

1.0000 0.9550 0.9474 0.9341 0.9079 0.8816 0.8613 0.8510 0.8408 0.8383 0.8123 0.7920 0.7706 0.7621 0.7446 0.7207 0.6962 0.6795 0.6524 0.6387 0.6240 0.5965 0.5911 0.5835 0.5780 0.5763 0.5700 0.5620 0.5535

1.0000 0.9750 0.9487 0.9382 0.9167 0.8873 0.8572 0.8366 0.8031 0.7863 0.7682 0.7344 0.7278 0.7183 0.7116 0.7095 0.7017 0.6919 0.6815

1.0000 0.9560 0.9474 0.9351 0.9264 0.9236 0.9134 0.9007 0.8871

366

Prices Exclude GST

Source: Lincoln University, WorldBank

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368

LIVESTOCK, CROPPING and HORTICULTURE - INTRODUCING ENTERPRISE ANALYSIS

Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins.369 All prices are GST Exclusive. 369

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3.1

INTRODUCTION

3.1.1 Background Everything changes. Well maybe not everything, but much about farming and farming business is changing and changing dramatically. At the time of writing, Mycoplasma bovis is a massive challenge facing the dairy and beef industries. Uncertainty is affecting many, but especially farmers, families and their staff. By the time you read this, New Zealand will either have made real progress towards eradication or we may be discussing ways of managing and coping with another new disease. Change and challenge are constant. In these circumstances it is appropriate to mention one of the farming couples Lincoln University students visit each year in Taranaki. They stress the importance of budgeting and reviewing budgets when uncertainty and tough times impose a range of challenges. This couple took a very proactive role in protecting their business when students visited. Yes, we had disinfectant pads for our students, and yes, we had used them outside their farm. However, the couple also had further disinfectant drums set up for our use. A wonderful example of risk management in an owner operator business where protecting their investment was something they took very seriously. Challenges don’t just come in the form of new (or not so new) diseases… Farmers are also challenged by a diminishing licence to farm. Controls on pollution arising from intensive land-use is a part of this as are increasing animal welfare concerns. No longer does a farmer farm as though they are lord and master of all they survey (along with the bank manager). The public and even markets a long way from New Zealand are all influencing the way we farm. Health and safety concerns also challenge the way things have always been done. Various smart apps and on-line tools help farmers to meet their obligations in this regard. The tools to analyse and manage agri-business enterprises are also rapidly changing. A range of local and international companies provide many software based tools and systems- we can’t offer advice as to which is best for you. The range is challenging to evaluate. But there are some principles to consider. Talk with others in our area, but especially discuss options with your accountant and any consultants that you work with. Unless you are willing to change accountant, you may need to follow their advice. Accountants also need to keep up with the changing tools and with many tools available for farmers to use, the accountants and manager’s roles continues to change! One farmer recently reported six different mapping systems on their property – and they were looking at an Australian farm management product to help tie the farming system into a coherent whole. There’s considerable challenge in this area. Cash Manager Rural is the most widely used farm financial package in New Zealand. The MINDA suite from LIC (Livestock Improvement Corporation LTD) may well be the product of choice for the dairy industry as it provides many practical tools specifically targeted at the day to day management and analysis of a New Zealand dairy farm. Their 371

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service to the dairy industry is supported by a strong team who work hard at improving that service each year. It is hardly surprising that FarmIQ has become a major player in the systems analysis arena and tools for management, given it is backed by Primary Growth Partnerships funding. ‘ProductionWise’ is likely to be the tool of choice for intensive cropping farmers and this section’s cropping component relies on output from ProductionWise. Not only does the Foundation for Arable Research provide this section of the manual with costs and returns for arable crops, but these are broken down by month. The timeliness of activities is a real help to students and others working on cash flow budgets. Enterprise analysis starts with inputs and outputs and the basic tool is still a spreadsheet like Excel. This manual provides some examples based in Excel spreadsheets and linked worksheets. We believe it is important to understand first principles and a farm budget or gross margin presented in excel with each cell’s information and where it came from (calculations/ linked cells etc) allows students and others to understand the farm’s finances from first principles. NZ is well served by our private and government lead industry bodies eg Beef and Lamb New Zealand, DairyNZ, the Foundation for Arable Research etc provide worthwhile interactive tools. Many are also provided by commercial agents. Ask your agent for tools their company provides. Adequate financial analysis of perennial crops (grapes, apples, citrus etc) requires a development budget that covers (normally) 10-15 years, showing very significant expenditure in the first years and increasing annual profitability If you don’t later in the cycle. A simple gross margin may be helpful to measure it, you compare a situation where differing proportions of cultivars are being considered. Apple profitability is at least in part built on can’t manage it. the willingness to regularly change cultivar as market preferences change and new cultivars become available. Seek advice before you cultivate and plant these long-term crops. Accurate enterprise analysis is built on many factors. Tools used must be appropriate, carrying calculations that make sense in the world of biology first and foremost. Information relating to prices and costs must be as up to date as possible. Finally, unique situations in the grower’s own enterprise or plans must be entered for the analysis to be helpful – and not misleading. Banks don’t just support agri-businesses via lending. They provide very useful information services – consider the information and analysis provided in the graph below. We suggest readers explore banks’ information services.

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https://www.anz.co.nz/resources/7/1/7188b77f-3579-4ce8-9b39-0ff16f7f15a3/ANZAgriFocus-20180528.pdf?MOD=AJPERES The Agricultural Price Review â&#x20AC;&#x201C; over leaf is part of a comprehensive document updated on a regular basis by ANZ economists.

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3.1.2 Agricultural Price Review

From https://bit.ly/2rmrExH ANZ Agri Focus / June 2017

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3.1.3 Resources Key starting points are your own industryâ&#x20AC;&#x2122;s web site(s) but remember also, to check bank web sites. These also provide tools for farmers and analysis of trends. A few examples have been chosen to highlight and encourage the reader to pursue the internet resources directly. 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/ - 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. Dairy NZ provide a practical pdf document with screen shots to help you with your first and subsequent budgets. They also provide the actual spreadsheets in a downloadable form to get you started. 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 375 375

Beef and Lambs website also carries useful tools for the industry. https://apps.farmax.co.nz/pasture/BeefLambNZ pasture calculator - payment required for personalised service. https://apps.farmax.co.nz/pasture/BeefLambNZ DeerNZ provides useful information and a calendar that can be printed and used as a reminder for managers, owners and a learning tool for new staff. http://bit.ly/1uxavfr

From https://beeflambnz.com/data-tools

Useful tables showing daily feed requirements for gain required of various livestock and their current liveweight. http://bit.ly/1mHzbix The NZ Ministry of Primary Industries (MPI) monitoring reports have been ‘must have’ information for anyone seeking to understand New Zealand’s agricultural enterprises. Keep an eye on the link below.

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https://www.mpi.govt.nz/news-and-resources/open-data-and-forecasting/agriculture/ 3.1.4 Use of Gross Margins Gross Margins may be used as a first step in comparing the profitability of different enterprises. The direct or variable costs associated with an enterprise are subtracted from the total income from that enterprise. The gross margin result is then normally expressed in terms of dollars per stock unit or per hectare. It may be worth also comparing enterprises against other limits to production â&#x20AC;&#x201C; eg water used or pollution caused. Direct or variable costs include items such as animal health costs, and harvesting costs. They do not include costs common to all enterprises, such as rates and interest payments (fixed costs). Care must be taken when interpreting results of Gross Margin Analysis. It is important to note that gross margins assume that each enterprise is independent of all other farm or orchard activities, both technically and financially. This is seldom the case, with enterprises competing for labour and other resources, and unaccounted for synergies (eg the nitrogen fixed by a white clover seed crop is not (normally) accounted for in a gross margin analysis). Gross margins also assume that each additional unit of production is worth as much as, and costs as much as, each preceding unit. Note also that different properties are likely to show differing gross margin returns for identical enterprises, because yields, costs and various environmental variables will differ according to each individual property. In many instances, the farmer or grower will find it necessary to prepare partial or full budgets to further compare alternative enterprises. For example, the price of irrigation is under-estimated in the analyses that follow. Using water is expensive1, not only in terms of pivots or canals, but also in the compliance costs around managing pollution, as well as costs in obtaining finance. For some farmers many thousands are spent in environment courts seeking permissionsâ&#x20AC;Ś and when given, consents may be withdrawn due to changing rules. That makes for a very tough environment in which to farm. For those in Canterbury able to join Central Plains water, fees in the order of $1800/ha to join and annual fees of $650/ha mean that high production and low pollution requirements will be a challenging marriage.

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There is general agreement that gross margins are helpful with arable crops – but even so there are a multitude of factors – timing of expenditure and income stream, weather, length of time in the ground, difficulty with harvest (lodging, damp weather) that can dramatically change expected outcomes. Relatively new crops, for example hybrid carrots/radish may look attractive – but if pollination fails the crop may be a very expensive loss and if another crop is too close then purity standards may mean payments drop to zero. Some crops leave behind useful nitrogen and remove few nutrients (white clover) whereas others (eg wheat, maize) remove large amounts of nutrient and don’t enhance soil fertility. Barley and wheat normally require extra labour at harvest due to the large tonnage / ha to manage – and those tonnes need on-farm storage and (expensive) trucking to market. Feed barley is dependent on the fortunes of dairy farmers who have been buying large quantities of barley to encourage ever greater milk production. In other words- there’s much more to consider than just the figures presented in this section. Complexity abounds also in terms of the choices confronting a farmer. There are many options relating to controlling insect and weed pests. Various companies provide their own best bet chemicals. This manual does not seek to endorse any one company’s products, but rather provides you with information around options and a framework for decision making. Although gross margins have limitations – there are some good reasons for starting with a gross margin, particularly when enterprises that have fundamental similarities are to be compared. Once a gross margin has been created – comparison within an enterprise as various factors are changed becomes very straight forward using the power of spreadsheets as a starting point. Note that the examples presented do not try to cover all enterprises. The intent is to provide some examples that will assist you in creating your own analysis, uniquely fitting your own situation. Cost, price and yield estimates for the stock and crop enterprises are based largely on Canterbury figures as of mid-year 2018. Interest and Supplementary Feed Costs: Interest and supplementary feed costs are normally excluded from gross margins when comparing enterprises (in particular livestock enterprises) for the same property. However a partial budgeting approach may be adopted with livestock enterprises, including estimates of interest and feed costs in order 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. NOTE: ALL FIGURES USED IN THE CALCULATIONS ARE GST EXCLUSIVE. 378

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3.1.5 Beef and Lamb Information tools and portal

The screen shot above alerts the reader to the tools for analysis and comparison (benchmarking) available at http://portal.beeflambnz.com/tools/benchmarking-tool/

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3.2

LIVESTOCK GROSS MARGINS

Prices and costs used are those ruling in mid-2018. Assistance in the preparation of these gross margins was given by some industry sources as well as staff from the Faculty of Commerce, Farm Management Division. Their assistance is gratefully acknowledged. Some words of background, written by Professor Keith Woodford2 are timely and worth bearing in mind. They capture some of the complexity and challenge facing all of us . ‘In the immediate term it is Mycoplasma bovis that everyone is talking about. Everyone thinks eradication is a great idea in theory, but many are cautious as to whether the plan is going to work. Mycoplasma bovis has great ability to hide, and it will be many years before we can be sure it has been eradicated. Some of us also think that the treatment might be worse than the disease. Farmers are also troubled by the increasing compliance requirements relating to staffing, health and safety, nutrient management and animal welfare. These issues have been building over the last ten or so years. On the horizon, there are greenhouse gas emissions to also worry about. Dairy farming seems so much more complicated than in the past. There are many in the urban community who will say the answer is simple: get rid of the cows, or at least a great deal of them. If only it were that simple. Any notion that most of our dairy land can be turned to horticulture is naïve. The soils and topography are not suitable and neither is the climate. There are some great horticulture success stories, such as kiwifruit and wine. Apples have also come back into favour. In some niche areas, cherries and avocadoes are all the rage. But when it comes to protein crops such as soy or peas for those non-meat burgers, then New Zealand will never have a competitive advantage. There is good reason that New Zealand agriculture developed as pastoral agriculture. These farming systems were a natural fit for the soils and climate. If dairy declines, then it will be back to more sheep and more beef. However, sheep and beef can never replace the export income earned by dairy. The broader urban community has little insight as to the overall dependence of the economy on dairy and tourism. The urban community seldom asks ‘where does the money come from that pays for all the imports?’’. https://keithwoodford.wordpress.com/2018/07/11/nz-dairy-challenged-by-need-forstrategic-reset/#more-1879 2

Honorary Professor of Agri-Food Systems at Lincoln University, New Zealand.

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3.2.1 Sheep Gross Margins As this goes to press in July 2018, the sheep industry in New Zealand is buoyant. Recent sales of cull, empty ewes at $200/head seems unthinkable just a few years ago and possibly driven up by the fears in the cattle industry. Agricultural industries are dynamic and profitability changes – often rapidly. The author was reminded of goat and domestic rabbit prices in the 1980’s that were exceedingly buoyant for a time. Care with budgets and seeking information from a wide range of sources will help guide the newcomer through the opportunities and perils of agri-business here and overseas. The agribusiness and agri-system articles written by Professor Keith Woodford make worthwhile reading – particularly in the M. bovis debate that is so topical to date. https://keithwoodford.wordpress.com/ 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. As with the comments for the dairy industry a gross margin is only a starting point. Full farm budgets are considerably more useful and needed when significant decisions are being made. However the ability to make quick comparisons across enterprises ensures an on-going role for gross margins.

No liability (whether because of negligence or otherwise) is accepted for any loss of any kind that may arise from actions based on the examples in this section.

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3.2.2 Sheep â&#x20AC;&#x201C; Intensive Breeding Ewe Flock focused on meat production

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3.2.3

Bull Beef

Please note prices can change rapidly in this industry. Check your local market conditions, rather than just taking the values here at face value. At time of writing â&#x20AC;&#x201C; July 2018, the NZ Dairy and Beef industries were in the cross hairs of M. bovis eradication processes, which were creating severe uncertainty. Farmers were shifting their focus and practices around stock purchases, leasing of bulls, stock movements and isolation generally.

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In the table below, weaner prices are very variable- based on prices on various NZ websites in July 2018.

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3.2.4 Dairy cow enterprise analysis Dairying is the most important component of New Zealand’s agricultural output, earning about $12 billion annually. http://www.dcanz.com/about-nz-dairy-industry/

‘With annual exports in excess of NZ$13.7 billion, the dairy industry is New Zealand’s biggest export earner, 18% of total goods and service exports. Around 95% of New Zealand’s milk is exported.’

Software tools to assist farmers and managers monitor, record, analyse then report continue to be developed. We see a need for independent analysis and review of the various offerings available. This publication does not seek to deliver that needed review. DairyNZ is a good starting point to find tools of great use for the dairy industry. Start here https://www.dairynz.co.nz/business/budgeting/budgeting-tools. Benchmarking3 is a crucial component to understanding a dairy enterprise – comparison with other similar enterprises 

From https://www.dairynz.co.nz/business/dairybase/benchmarking//

www.dairynz.co.nz/business/dairybase/benchmarking/

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This section is divided broadly into two. The first provides the reader with resources relating directly to budgeting and points towards management tools that owners and managers use on a daily, to monthly and yearly basis to hone their business and pasture/cow management. 3.2.5 DairyNZ Annual Cash Budget https://www.dairynz.co.nz/business/budgeting/budget-case-studies//

DairyNZ (from the link above) provide budgets for top performing farms across New Zealand. Readers are encouraged to visit the site, where templates and other financial information and analysis is provided.

https://www.dairynz.co.nz/business/budgeting/sensitivity-analysis/

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Graph from DairyNZ Annual cash budget example at http://www.dairynz.co.nz/farm/financial/budgets/annual-cash-budgets/ The tools available for dairy farmers to manage their business of water, soil and soil fertility/losses, pasture, cow and milk production are continuing to develop. It is beyond the scope of this manual to do more than point users to tools worth considering.

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http://www.lic.co.nz/lic_MINDA.cfm

Lincoln University Dairy Farm and the Southland Demonstration farm 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. Follow them on facebook they update regularly. Referď&#x192; http://www.siddc.org.nz. This url4 provides the budgeted (and actual) values for the season with analysis that assists with comparisons â&#x20AC;&#x201C; eg cash farm working expenses per kg milksolids and cash operating surplus $/ha.

http://www.siddc.org.nz/files/LUDF%20Budget%202011%202012%20Season.pdf 389

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3.2.6 Dairy support / Dairy grazing enterprise analysis Dairy farmers have formed strong relationships with dairy grazers who have become crucial members of the dairy team nationwide. During the winter the dairy platform (dairy farm) grows grass to calve and start milking on. That farm rests for about 10-14 weeks with minimal stock. Cows and often young stock are grazed by specialist dairy grazers. These are farmers who have planted (normally) kale and/or fodder beet for winter cow grazing and have pasture for the young stock to grow on. These â&#x20AC;&#x2DC;dairy grazersâ&#x20AC;&#x2122; may also sell, or directly feed barley straw from their cash cropping enterprises and baleage made specifically for winter feeding . A possible cash flow for an example enterprise is provided on the next page. Sometimes winter grazed cows are charged based on, for example, 20 c/kg DM of kale/fodder beet fed to the cows. That means the estimation of yield â&#x20AC;&#x201C; amount offered- is very important. Various independent companies provide a yield estimating service. Other enterprises charge a fee per week for each cow. In this instance there needs to be trust that the cows are being fed sufficient for their requirements. Trust is crucial in these farmer to dairy grazer relationships and trust is built as farmers work successfully together. There is now a new level of trust and concern as farmers are less willing to send their cows off farm with the risks of M.bovis disease.

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A Dairy Grazing cash flow and income calculator is shown overleaf where calves, growing stock and the dairy herd are grazed. Notes to bear in mind1. Breeding bulls are not included but could be as ‘dairy support’ operators may be paid for them also. To include them it would be easy to upset the flow of deaths that are calculated automatically in the Calves and the R1 and R2 sections. Deaths are not calculated for the dairy cows. 2. In the live excel spreadsheet, green cells expect your input and red cells are ‘leave alone’ cells as they calculate for you. 3. This spreadsheet is used as part of Farm Management teaching at Lincoln University. (Check on www.aginfo.lincoln.ac.nz). The spreadsheet below has two parts, with the first shown in the next two pages. Grazing calves, R1/R2’s and Mixed age cows maybe  EITHER 1. Providing earnings for a dairy support enterprise OR 2. A cause for expenditure for a dairy farmer seeking grazing services. Both worksheets allow grazing rates for young stock to be entered as well as a percentage loss that calculate animals/month that are available for grazing, given starting values in green cells. Note the farming systems that have served the dairy industry very well are under review due to fears arising with Mycoplasma bovis disease. Some dairy farmers are now running closed herds where they graze their young stock directly on what was the milking platform or on land they own that allows them to be in control of cattle that meet their herd.

The spreadsheet on the next page requires that MA Cows are entered as numbers for each month with the days grazing in each month. This is needed as cow numbers are somewhat fluid as at times calving cows leave a grazing block and go to the dairy platform during grazing of winter crops. The key is to ensure a calculation of Cost of cow grazing = total number of cow grazing days * ((grazing cost for each cow/week)/days in a week) 391 391

Income expected and received for a Dairy grazing enterprise that is grazing calves, R1/R2â&#x20AC;&#x2122;s and cows.

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Total for the year - $342,350 with the scenario above. Note the values calculate a month after the grazing has been completed â&#x20AC;&#x201C; invoice at end of month and payment in next month. The month by month earnings can be fed into a cash flow budget. NB The July column is outside the budget year, but has money earned in this year, and paid in the following year.

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A further calculator takes relevant information from the budget to calculate the area of winter forage (kale or fodder beet) required.

Refer www.aginfo.lincoln.ac.nz

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3.2.7 Deer The limitations with gross margins discussed elsewhere apply in the deer industry. Some comparisons are provided, with the starting point being evaluation of costs of dry matter used. Calculations are provided below- refer this useful linkď&#x192; https://www.dairynz.co.nz/feed/supplements/feed-values/

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3.2.8 Pig Gross Margins Information kindly provided by Fresh Pork Farms Ltd.

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Information kindly provided by Fresh Pork Farms Ltd. NB. Historically 20 kg weaners were traded â&#x20AC;&#x201C; now the standard is 8 kg weaners.

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3.3 CROP GROSS MARGINS AND ASSOCIATED FINANCIAL ANALYSIS The following gross margins relate to an intensive cropping farm in Canterbury, on a medium soil type. Gross margins are a start to financial analysis. There are other analyses to assist in developing thoroughly profitable operations. Profitability has a new bedfellow â&#x20AC;&#x201C; called environmental management â&#x20AC;&#x201C; best practice. Some will argue this has always been the case. It may have been, but most farmers need to be more aware of the complexities around yield, caring for the environment and profitability. Take care when interpreting the Gross Margins in this section, as estimates of both yield and costs will differ according to each farm. 3.3.1 Foundation for Arable Research The editors of this manual are convinced of the value of the industry having an independent research and advisory body working on behalf of arable farmers. The ProductionWise on-line system, managed by FAR, not only provides useful information for farmers individually, but the database is able to be analysed across farms to provide useful comparisons and more robust advice. FAR have very kindly provided Gross margins for the cropping component of this section. (Most assume irrigation is applied and paid for). These gross margins add a very useful timeliness component, assisting the reader with any cash flow budgeting they may need to do. Please remember that a static screen shot does not do justice to the power of ProductionWise. All growers paying a levy with FAR have access to their software and that allows sensitivity analysis and reporting for traceability purposes. FAR DISCLAIMER This report is intended to provide accurate and adequate information relating to the subject matter contained in it. It has been prepared and made available to all persons and entities strictly on the basis that FAR, its researchers and authors are fully excluded from any liability for damages arising out of any reliance in part or in full upon any of the information for any purpose. No endorsement of named products is intended nor is any criticism of other alternative, but unnamed product. 3.3.2 Irrigation calculations Irrigation is expensive. For example, Central Plains Water in Canterbury is likely to be sold to farmers at $650/ha (per year) following approx. $1850/ha joining fee. Note those joining that scheme have many other additional costs to factor in to their farm budgets. Farmers canâ&#x20AC;&#x2122;t just consider irrigation costs as though irrigation has no other effects other than increasing yield and fertiliser demands. There is a game changer in the form of limits on pollution (nitrate losses) set by regional councils and in most instances determined by the Overseer Model.

404 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 404

1 mm = 1 litre/m2 There is therefore underlying complexity that each farmer must consider. Presently there are many and there are unknowns around the productivity that will be 10,000 m2 in a ha, so allowed, given that highly productive, irrigated 1 mm irrigation (or systems tend to pollute more / leach more nitrogen. To rainfall) = get started with analysis we must put those considerations aside and establish what we do know. 10,000 litres on each ha Putting some considerations aside does not minimise those issues. They are game changers, but the starting point in analysis is to gain clarity around what can be made clear. Firstly, direct costs of irrigating. The costs tend to be in two parts – the electricity required to run pumps on a daily and night/weekend basis AND the pump capacity charges that apply. Please note that costs associated with wells and set up are not included – so profitability is being overstated. These too will change for the farmers on irrigation schemes were gravity will provide pressure in pipe lines, dramatically reducing the present costs of pumping water. There is some good news in this story! Options for purchase of electricity have recently changed. In the past some contracts were available without a pump capacity charge. Now, the key element for farmers wishing to make their dollars go as far as possible is to realise the value of irrigating at night and weekends. If a farmer’s irrigation is 80% at night/weekends (and they pay a flat fee for pump capacity charge) their cost is $1.20/mm/ha. However if they are only able to water 50% of the time in night/weekend rates the cost rises to $1.43. (Refer tables below). Note these costs are based on the table below – none of the key and very large set up costs are included, so farmers are paying well in excess of the costs stated here. Indeed in the gross margins, kindly supplied by FAR, their estimate of irrigation cost is $2.15 per mm, which is likely to include fixed costs. What these calculations show is how seasonal costs can be reduced by careful management of contracts. Costs of pumping and effect of day and night rates Baseline information for calculations Baseline expected irrigation for season (mm) Pump capacity Irrigation season

Irrigated area

Pump power rating (kW) Pumping capacity (l/s) Start date End date Pivot length ie radius (m) Amount in tracks/not cropped (%) Net area of crop irrigated (ha)

200 120 60 1/10/2018 31/03/2019 700m 4%

mm kW l/sec Days 182 (ha) 153.9 6.2 147.8

405 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 405

Electricity costs belong in four categories:1 2 3 4

Company A Night/Wkend (c/unit) Plus Network charges Night/Wkend (c/unit) And Company A Day (c/unit) Plus Network charges Day (c/unit) Total for Night Weekend (c/unit) Total for Day (c/unit) % of pumping at Night-Weekend rate Pump capacity charge ($/kW/day)

Irrigation costs 8.89 1.31 10.88 9.59 10.2 20.5 60% 0.59

Irrigation Cost Calculation Irrigation rate- time to put one mm on one ha Time to apply 1mm to 1 ha ie 10m3 (minutes) 2.78 Variable power cost Cost ($/unit) based on % night & day rates chosen $0.14 Variable cost ($/mm/ha) Capacity charge ($/mm/ha) Capacity charge for season for this pump 120 kW $12,938 Capacity charge $/mm/ha Total cost ($/mm/ha) (NB - none of the installation costs, consents etc included in costs) Cost for irrigation - 148 ha, 200 mm

c/unit c/unit c/unit c/unit c/unit c/unit

$0.79

$0.44 $1.23 $36,432

From the spreadsheet above the table below can be produced, showing that for a fortunate irrigator with plenty of pump capacity, $5000 can be saved by moving from 50% pumping at night and weekend rates to 80% of pumping done at night and weekend rates- for one pivot over the season, delivering 200 mm water to 148 ha. Percent of pumping done at night/weekend rates 50 60 70 80

$/mm/ha

$/season per pivot (148 ha)

Savings as more irrigation is done in night/weekends (50% as base line)

$1.29 $1.23 $1.18 $1.12

$38,118 $36,432 $34,745 $33,059

0 $1686 $3373 $5059

406 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 406

3.3.3 Wheat The Foundation for Arable Research has results of independent research and fact sheets available. They have results of research identifying best cultivars â&#x20AC;&#x201C; in terms of disease resistance (various diseases), straw strength, crop height, maturity, sprouting susceptibility and yield comparisons over many locations in Canterbury as well as Southern North Island and Southland. The research results are focused on providing growers with economic analysis of treatments chosen. They provide advice in clear and straight forward terms â&#x20AC;&#x201C; if that is ever possible given vagaries of climate, soil and plant responses! Note that in most cases, irrigation is applied.

407 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive

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3.3.4 Barley Two years ago, barley prices were looking particularly unattractive to growers. The situation is changed considerably: -

408 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 408

409 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 409

3.3.5 White clover (Red clover) All small seeds are sold as Machine Dressed seed. Yield is everything in a clover gross margin where values are $5400/tonne. Yields are variable – from loss making 0.2 t/ha of seed to over 1t/ha of white clover seed and in red clover from 0.2 t/ha to a more normal maximum of around 0.7 t/ha. Prices are higher with red clover, but overall demand for seed is lower than with white clover and it is a more challenging crop to get high yields from. 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. Wide rows allows assessment of clover contamination by plants other than the sown cultivar. In these circumstances there is normally minimal or no grazing prior to spring flowering. In the Autumn it is common to get minimal grazing before it is sprayed and cultivated for a cereal that ‘mops up’ valuable N left by the clover. That N is not valued in the gross margin below. Alternatively it maybe grazed in Autumn and winter and be planted into spring sown peas. Peas do particularly well in fertile, well-structured soil. Grazing white clover may be valuable – but that normally only occurs if the clover is kept for two seed harvests ($500/ha grazing?). If farming systems were to change with increased costs relating to machinery and fuel – farmers will surely look for these changes to enhance value from each sown crop. Red clover is grown by just a few specialist growers who cope with lower yields but the red clover is much more likely to be in for two and sometimes three years with cuts for silage/baleage normal as well as considerable grazing – maybe more than $1000/ha of grazing returns. Red clover contracts are generally higher than for white clover. The gross margin below assumes the more normal, one-year white clover crop with no grazing as the ground is sprayed and cultivated for an Autumn sown cereal. Some contract drilling may cost more than $75/ha – check with your contractor.

410 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive

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411 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 411

3.3.6 Perennial Ryegrass as a seed crop Note that grazing is a total value, entered as $600. You need to calculate the worth of grazing to your enterprise, based on worth of grazing is estimated to arise from this crop. That grazing value is important! There are substantial costs involved in growing perennial ryegrass and substantial risk at harvest, particularly as wet and or windy weather can knock out a lot of seed. Damp weather at harvest can make it very hard to pick up after windrowing (cutting), as the crop will grow green leaf straight after cutting that will interfere with heading.

412 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive

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413 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 413

3.3.7 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. The vining crops are harvested some weeks earlier, allowing the possibility of establishment of autumn feed for livestock or a late (watch frost!) barley crop for example.

414 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 414

3.3.8 Vining Peas

Notes from Foundation for Arable Research- water use in peas Any water stress reduced yield in the marrowfat peas and the best yields and returns were obtained by applying the maximum applied of almost 380 mm. Note at these water rates, the potential for loss of nutrient to ground water increases, but given that FAR have shown little yield response to fertiliser, it would be advisable for growers to increase water and decrease fertiliser use – in peas. Increasing water will increase disease problems – there’s that complexity and need for careful husbandry again. These are just some of the complexities farmers face in each of the crops they grow. Tools in this section start a process of establishing base level profitability and choice – then further analysis will be required.

415 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive

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http://www.far.org.nz/mm_uploads/Making_Peas_Pay_final_191213.pdf

Source - http://www.far.org.nz/mm_uploads/Making_Peas_Pay_final_191213.pdf 416 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive

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Oil Seed Rape (cv Visitive)

417 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 417

3.3.9 Kale and Fodder Beet The increase in dairy cows across New Zealand in the last 25 years has meant a very great rise in the amount of winter feed grown by specialist dairy grazers. Kale was the main feed grown, but fodder and sometimes sugar beet has made big inroads in Kale’s dominance. Once used to the feed5, cows perform very well on them and fodder beet copes with snow better than kale, while providing a high quality feed with more carbohydrate / kg DM than kale. Refer, for example https://www.grassland.org.nz/publications/nzgrassland_publication_2652.pdf There are challenges feeding these crops and full discussion is outside the scope of this manual. Care must be taken with changing diets and DDT and Beets? particularly with sugar and also fodder beet, the high DDT is a very long lived sugar content can lead to acidosis and rapid death. organo-phosphate insecticide There are plenty of options for farmers to choose from used by earlier generations to in terms of cultivation, herbicide, insecticide, fertiliser control grass grub. and finally species/cultivar. 10 kg N are normally Those farms with high levels required for each tonne of dry matter. Very high levels of DDT are likely to prefer kale of dry matter may be achieved through large amounts against beet as stock grazing of fertiliser and irrigation – over 20 t DM/ha, but beet tend to ingest soil (along lodging and heavy stalks (kale) reduce utilisation. with DDT) which may show Very high yield targets, based on heavy fertiliser use up in milk samples and irrigation are rapidly becoming a ‘thing of the past!’ Why? Pollution limits imposed by regional councils are changing the way farmers operate – and in the process creating a range of new challenges. In Canterbury, ECan’s rules mean those who have been polluting heavily are allowed to continue, with reductions over time and their land is more valuable than those who have been ‘good’ with minimal pollution – dryland sheep or forestry are in the good category and those properties cannot shift to dairy with irrigation and expect to pollute in the same manner as their neighbours who have been polluting for years. Interesting times. The methodology to measure pollution is a process of modelling and estimation, with some measurements driving the model – known as Overseer. With these new rules in mind, fifteen t DM/ha seems a reasonable target-where much of the DM grown is of high quality and well utilised. Most of the costs are borne in the first four months of crop growth. Insect control at the seedling stage and later in the season is critical to ensure high crop yields. Over-use of insecticides reduces the chances of a natural balance being established, but given the mono-cultural nature of the landscape, natural balances in insect and birds are unlikely.

Transitioned is the normal term farmers use.

418 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive

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Kale is often grown after run out pasture. Spraying with a high rate of roundup (up to 5 l/ha of Roundup 360) followed a month later by a low rate ensures a good kill of most weeds and allows some breakdown of the turf in the old pasture, but if cultivation is chosen the turf may need ploughing under to ensure a high quality seed bed. Herbicide is normally Roundup with perhaps added Granstar or Versatil for flat weeds and a surfactant to increase effectiveness. The pesticide companies provide many opportunities for decisions around damaging insect pests! However when soil structure has deteriorated sufficiently during (wet) winter grazing, direct drilling is abandoned in favour of cultivation. Most farmers would view the ease and cost of herbicide favourably compared with costs of cultivation- fuel, running costs and labour. Given the deterioration in soil conditions that often occurs during winter forage grazing, it may be sensible to cost extra cultivation required when moving out of winter forage crops, against those cropsâ&#x20AC;&#x2122; gross margins. Sugar / fodder beet requires specialist lifting/harvesting equipment as a high proportion of the root is below grazing height in ground. That cost is approximately 2-3 c/kg. Kale and beets are susceptible to insect damage as seedlings. Care must be exercised to protect it from being 'wiped out' by insects, but excessive use of insecticides can reduce chance of natural balance controlling, for example, white butterfly. Fertiliser requirements increase with increasing growth potential and potential is driven by water. Dryland crops can be expensive to grow, especially in dry years as insect damage requires continual inputs â&#x20AC;&#x201C; while yield potential declines with water stress. 3.3.10 Fodder beet

419 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 419

420 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 420

3.3.11 Kale

Editors note â&#x20AC;&#x201C; These are conservative values for both yield and price per tonne reflected in the gross margin. Modify values to suit your unique situation. If applied, irrigation will dramatically increase yield, so long as insect pests are adequately managed and adequate N fertiliser is applied.

421 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 421

3.3.12 Hybrid Carrot Seed Production Canterbury produces a surprisingly large proportion of the worldâ&#x20AC;&#x2122;s hybrid carrot seed requirements. The Gross Margin below shows that under present methods, seed crops are heavily reliant on a wide range of pesticides. Risks are high. Crops may fail in terms of seed quality â&#x20AC;&#x201C; germination must reach at least 87%, purity standards are high and it is quite possible to spend thousands of dollars and have a total yield failure. When it all works, the returns are high. The yield in the Gross margin below (200 kg/ha or 0.2 t/ha) is conservative, but grower beware, carrots are in the ground for about a year, require continual care and that means chemicals and pollination is often very challenging. The two lines have to flower together for optimum pollination, and bees get very little out of pollinating carrots. Other more attractive pollinators will draw the bees away. Bad weather at harvest can reduce germination and suddenly prices for the crop can plummet. Growers need to be sure the hives provided are actually strong hives, with plenty of flying bees per hive. Discuss with beekeeper first!).

422 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 422

A small increase in yield makes a very big difference to gross margin achieved! $45/kg for seed is what draws growers to this crop – that’s obvious but consider the inputs required, the time taken – more than 12 months and the risks…

423 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive 423

3.3.13 Maize Please note the maize gross margin is provided by ProductionWise, ex FAR with thanks. Maize isn’t for everyone – it is a C4 plant which grows particularly well in high temperature and sunlight conditions with plenty of water and fertiliser.

There’s also an online, free interactive tool worth working with, at: http://www.pioneer.co.nz/maize-grain/tools/maize-grain-economics/.

424 Information kindly provided by Foundation for Arable Research. FAR disclaimer at start of section refers to this and all crop gross margins. ProductionWise software allows interaction with these Gross Margins. All prices are GST Exclusive

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3.4

ENTERPRISE ANALYSIS IN HORTICULTURE

A simple gross margin doesn’t do justice to the analysis required to make wise decisions. What is needed is a detailed development budget that spans start-up right through to full production (and beyond for crops lasting several years). The process of thinking and gaining information is intense and wide ranging. Expert opinion will be sought from many areas, including other growers willing to share their experiences. For some crops (eg strawberry) the time frame may be just 1-3 years, while apples may require a budget process spanning 15 years. Inputs (costs) are heavily loaded during set up. Growers should expect to spend at least $50,000/ha (often well in excess of this figure) in some or all of the following  Council consents,  Design issues / advice – block layout,  Equipment – some of the expenditure may be delayed until crops are yielding, or through the use of contractors,  Trellis design, posts and other structures,  Soil tests and fertilisers including start up fertiliser for major soil amelioration – eg Sulphur required as part of lowering pH for blueberry,  Pest and Disease control,  Weed Control,  Irrigation including design, pumps, main lines, laterals, sprinklers, drippers,  Netting including posts – height, size, layout, wire A key issue is timeliness – when does expenditure supports, bracing and style of netting,  Packing sheds, cooler facilities, storage facilities, and income occur? Cash flow is critical. transport  Pollination. The result is total expenditure climbing for the first few years with normally no income and increasing mortgage interest costs. Risks add to the challenge of creating a profitable enterprise and include snow / frost, wind, disease / insect attack and for crops focussed on export – NZ currency fluctuations can markedly affect profitability. Market preferences may change quickly and an apple cultivar that was preferred at the start of orchard development may no longer be preferred a few years later – just when trees of that cultivar are reaching maximum yield. A useful analysis will incorporate many separate ‘calculators’ taking information and decisions and placing them appropriately into the 10+ year process indicating cash flow, mortgage and labour requirements. Some of these separate calculators may relate to fencing, trellising, irrigation, etc. Each component will have various possibilities and the calculators will assist growers in making wise decisions. It is clear by now, that the analysis of perennial crops like grapes, apples etc requires considerable detail over time. This is normally done on an annual basis. For annual crops, a more in-depth analysis will include the cash flow – expense and income, month by month. Although there is a need for detailed analysis over years, relatively simple comparisons – of varying cultivars, for example, within an enterprise mean that Gross Margin analysis remains a useful, but limited tool. 425 425

Some very useful and detailed information continues to be available on the Ministry of Primary Industries web site. The information presented from there is gratefully acknowledged. Note that many of the crops of interest in NZ horticulture are not covered, and that information is increasingly hard to come by as it is deemed commercially sensitive. Vegetable production fits into that category.

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3.4.1 Kiwifruit6 The budget provided here has been kindly made available from New Zealand Kiwifruit Growers Incorporated. Please note some expenses are not given - R&M, Personal Drawings, Electricity, irrigation if needed, vehicle costs etc are not included in this analysis. NZ Kiwifruit Growers state The table includes columns for each month that Net Income (OGR7) is received. The final column is a conversion of the income or cost into a Per Canopy hectare basis. This Per Canopy Hectare calculation is the most common and important metric used by a grower to benchmark the financial performance of their orchard against industry averages and prior historical information. As the orcharding year progresses a grower will find it necessary to understand the costs they incur on a ‘per hectare basis’. Often piecemeal rates charged by suppliers and contractors are also based on a ‘per hectare basis’, such as winter pruning and girdling

Source http://nzkgi.org.nz/wp-content/uploads/2016/12/2016-Kiwifruit-Book.pdf - Please note these figures are indicative only and should not be used for your specific budget purposes. Seek professional advice for more detailed information. Used with permission. 6

OGR – Orchard Gate Return.

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New Zealand Kiwifruit Growers Incorporated- Example Kiwifruit Growers Budget

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3.4.2 Pipfruit enterprise analysis Water Wairarapa have some useful case study/models relating to irrigation – and conversion costs and income – for first 12 years after conversion. The link below follows a (notional/model) dryland sheep enterprise being converted to an irrigated apple orchard. http://www.waterwairarapa.co.nz/news/images/ww-case-study-elm-grove-apple.pdf From their website –(July 2018; used with permission) The model assumes three irrigated orchard How many mm of irrigation is applied sizes, 15 ha, 50 ha and 100 ha, each using if 2890 m3 water is applied? 2,890m3 of water/ha. 2890 x 1,000 litres is applied to each ha.  In each case between 1,800 and 2,000 A ha is 100 x 100 m2 trees are planted per hectare. Varietal This is ((2890 x 1000)/10000) = mix consists of both commodity 289 litres of water on each m2. varieties (e.g. Braeburn and Royal That is 289 mm water applied. Gala) and higher-value modern Now, the figure stated, (289mm) is one (sweeter) varieties (e.g. Cripps Pink that irrigators in cropping, dairying and Envy) grown under licence. enterprises are familiar with.  The assumed mix listed below is weighted towards the high-growth Asian export market: Braeburn (10%) Cripps PinkTM (10%) EnvyTM (15%)

Fuji (20%) JazzTM (10%) Pacific QueenTM (10%)

Pacific RoseTM (5%) Royal Gala (20%)

 Cost of trees is based on a planting rate of 1,800- 2,000 trees per hectare at an average cost of $17.50 per tree (including royalties for specialist rootstocks and varieties). Due to high demand, the lead time on popular rootstock orders is up to two years.  High-quality trellis systems and support structures at an average cost of $24,000 per hectare.  Micro sprinklers have been chosen over drippers to provide even water distribution.  Plant and equipment includes tractors, sprayers, mowers and pruning equipment.  An average cost of $5,000 per hectare for implement sheds and amenities.  No artificial or additional shelter is necessary Based on the regional average for properties similar to Elm Grove, an expected farm surplus from a dryland operation is ~$602/ha. The following table provides an insight into financial viability at Orchard Gate Return (Gross Orchard Revenue less post-harvest expenses) and Gross Margin (Orchard Gate Return less Operating Expenditure) levels. This scenario assumes a ‘Top 10’ operator and a 15ha orchard.

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The figures used in the table above are based on a modern Hawkeâ&#x20AC;&#x2122;s Bay orchard. There are many ways an orchard can be developed, e.g. use of a less robust support structure, higher vigour rootstock planted at lower tree density and trained in a multi-leader form. Further, royalty payments on cultivar and rootstocks differ. Water Wairarapa continue to provide further analysis relating to sensitivity, environmental impacts and indicative nutrient losses. The reader is encouraged to visit their model analyses. Used with permission.

431 431

Key parameters, financial results and budgets for the pipfruit orchard models Year ended 31 December

2013

2014

2015 Budget

Hawke's Bay model Planted area (ha) Owned area (ha) Leased area (ha)

40.0 24.0 16.0

145 925 96 615

127 390 92 200

148 575 93 015

24.45

26.80

29.45

2 646 400

2 631 000

2 966 100

1 585 300

1 602 900

1 906 000

1 026 400

1 008 900

1 059 100

514 900 377 700 251 700

538 000 410 000 136 000

788 900 666 900 334 900

65%

63%

56%

19.1%

18.2%

25.6%

Percentage equity

60%

70%

75%

Nelson model Planted area (ha) Owned area (ha) Leased area (ha)

40.0 32.0 8.0

129 340 97 565 25.50

123 135 96 350 25.65

123 340 85 775 26.70

2 607 800 1 545 400 1 060 000

2 532 000 1 572 500 1 132 700

2 491 400 1 597 700 1 158 600

425 400 289 000 149 000

379 800 251 800 41 800

379 100 261 100 76 100

69%

72%

73%

11.8%

9.4%

9.2%

56%

63%

67%

Total TCE1 Export TCE Weighted average return ($/export TCE) 2 Net cash income ($) (at FAS) 2 Orchard gate return (OGR $) Orchard working expenses (to orchard gate $) EBIT ($) 4 Orchard profit before tax ($) Orchard cash surplus/deficit ($)

Orchard working expenses / OGR EBIT / Total orchard assets

Total TCE Export TCE Weighted average return ($/export TCE) Net cash income ($) (at FAS) Orchard gate return (OGR $) Orchard working expenses (to orchard gate $) EBIT ($) Orchard profit before tax ($) Orchard surplus/deficit ($) Orchard working expenses / OGR EBIT / Total orchard assets Percentage equity

432 432

Notes The pipfruit orchard models are representative of export pipfruit orchards and based on a company structure. The pipfruit orchard models were modified substantially in 2013 following a review of the MPI pipfruit monitoring programme. Hence direct comparisons with prior models are not recommended. Figures may not add to totals due to rounding. 1 Tray carton equivalent is a measure of apple and pear weight. A TCE is defined as 18.6 kg packed weight which equates to 18.0 kg sale weight. 2 Returns per export TCE are expressed at free alongside ship (FAS return). This is the value of the product at the ship's side net of commission, additional packaging costs and controlled atmosphere or SmartFresh TM costs. 3 Orchard working expenses include wages of management. 4 EBIT = earnings before interest and tax. The lease arrangements in the orchard models are permanent leases of land. Because of this, lease expenses are treated like interest expenses (i.e. cost of capital) for reporting purposes.

433 433

Hawke’s Bay pipfruit orchard model budget (two pages) 2013 Whole orchard ($)

2014 Whole Per Per TCE Per TCE orchard planted ha gross export ($) ($) ($) ($) 1

Revenue

Pipfruit income (at FAS) Other orchard income Net cash income

2 624 400 22 000 2 646 400

2 607 000 24 000 2 631 000

65 175 600 65 775

20.46 0.19 20.65

28.28 0.26 28.54

Less post-harvest expenses Orchard gate return (OGR)

1 061 100 1 585 300

1 028 100 1 602 900

25 703 40 072

8.07 12.58

11.15 17.39

Orchard working expenses (to orchard gate) Cash operating surplus

1 026 400 558 900

1 008 900 594 000

25 223 14 850

7.92 4.66

10.94 6.44

Depreciation EBIT2

44 000 514 900

56 000 538 000

1 400 13 450

0.44 4.22

0.61 5.84

Interest Rent and/or lease Orchard profit before tax Tax Orchard profit after tax

70 000 67 200 377 700 55 000 322 700

60 000 68 000 410 000 150 000 260 000

1 500 1 700 10 250 3 750 6 500

0.47 0.53 3.22 1.18 2.04

0.65 0.74 4.45 1.63 2.82

44 000 366 700

56 000 316 000

1 400 7 900

0.44 2.48

0.61 3.43

40 000 25 000 50 000 251 700

50 000 30 000 100 000 136 000

1 250 750 2 500 3 400

0.39 0.24 0.78 1.07

0.54 0.33 1.08 1.48

Land and buildings (Estimated opening market value ) 000 2 520 Plant and machinery (Opening book value ) 180 000 Total orchard assets 2 700 000 Total liabilities (Opening book value ) 1 080 000 Total equity 1 620 000

2 760 000 195 000 2 955 000 900 000 2 055 000

115 000 8 125 123 125 37 500 85 625

21.67 1.53 23.20 7.06 16.13

29.94 2.11 32.05 9.76 22.29

Allocation of funds

Add back depreciation Orchard surplus for reinvestment Revinvestment

Net capital purchases Development Principal repayments Orchard cash surplus/deficit Assets and liabilities3

Information kindly supplied by Ministry of Primary Industries. These were not publically available at time of publication, but are likely to be online ‘now’.

434 434

2015 BUDGET Whole Per Per TCE1 Per TCE orchard planted ha export gross ($) ($) ($) ($) 2 866 100 100 000 2 966 100

71 653 2 500 74 153

19.29 0.67 19.96

30.81 1.08 31.89

1 060 100 1 906 000

26 502 47 650

7.14 12.83

11.40 20.49

1 059 100 846 900

26 478 21 172

7.13 5.70

11.39 9.11

58 000 788 900

1 450 19 722

0.39 5.31

0.62 8.48

50 000 72 000 666 900 120 000 546 900

1 250 1 800 16 672 3 000 13 672

0.34 0.48 4.49 0.81 3.68

0.54 0.77 7.17 1.29 5.88

58 000 604 900

1 450 15 122

0.39 4.07

0.62 6.50

60 000 80 000 130 000 334 900

1 500 2 000 3 250 8 372

0.40 0.54 0.87 2.25

0.65 0.86 1.40 3.60

Notes Figures may not add to totals due to rounding. 1 Tray carton equivalent 2 EBIT = earnings before interest and tax. The lease arrangements in the orchard models are permanent leases of land. Because of this, lease expenses are treated like interest expenses 3 Land and building asset value includes the value of owned land, trees and supports, other improvements, orchard buildings and dwellings on the property. Asset and liability values per planted hectare are based on owned planted area of 24 hectares; not owned and leased planted area of 40 hectares.

2 880 000 120 000 19.38 30.96 200 000 8 333 1.35 2.15 3 080 000 128 333 20.73 33.11 780 000 32 500 5.25 8.39 2 300 000 95 833 15.48 24.73 Data kindly supplied by Ministry of Primary Industries.

435 435

Hawkeâ&#x20AC;&#x2122;s Bay Pipfruit orchard model expenditure (two pages) 2013 Whole orchard ($)

Whole orchard ($)

Per planted ha ($)

415 455 400 960 186 470 35 025 23 190 1 061 100

393 700 395 500 185 300 30 550 23 050 1 028 100

9 843 9 888 4 632 764 576 25 703

Per TCE1 gross ($) 3.09 3.10 1.45 0.24 0.18 8.07

Wages of management Hand harvesting Pruning Thinning Other wages ACC - employees Total labour expenses

90 000 283 100 83 200 124 400 113 800 8 400 702 900

92 000 259 800 94 800 110 400 114 400 8 600 680 000

2 300 6 495 2 370 2 760 2 860 215 17 000

0.72 2.04 0.74 0.87 0.90 0.07 5.34

1.00 2.82 1.03 1.20 1.24 0.09 7.38

Weed and pest control Pollination Fertiliser and lime Electricity Vehicle Fuel Repairs and maintenance General expenses Contract machine work Orchard operating expenses

116 600 2 900 5 200 7 800 16 800 34 600 42 600 20 600 7 800 254 900

115 600 2 900 7 400 7 400 17 000 30 400 46 000 25 800 8 400 260 900

2 890 73 185 185 425 760 1 150 645 210 6 523

0.91 0.02 0.06 0.06 0.13 0.24 0.36 0.20 0.07 2.05

1.25 0.03 0.08 0.08 0.18 0.33 0.50 0.28 0.09 2.83

10 800 2 800 9 400 18 800 4 600 7 200 3 200 11 800 68 600

11 200 3 400 9 400 20 600 4 200 7 000 3 000 9 200 68 000

280 85 235 515 105 175 75 230 1 700

0.09 0.03 0.07 0.16 0.03 0.05 0.02 0.07 0.53

0.12 0.04 0.10 0.22 0.05 0.08 0.03 0.10 0.74

1 026 400

1 008 900

25 223

7.92

10.94

514 900

538 000

13 450

4.22

5.84

Orchard working expenses3/OGR4

65.0%

63%

EBIT/Total Orchard Assets

19.1%

18.2%

EBIT less interest & lease/Equity Interest + rent + lease/OGR EBIT/OGR

23.3% 8.7% 32.5%

20.0% 8.0% 33.6%

Packing Packaging Cool storage (incl freight from coolstore to port) Freight (orchard to packhouse) Levies and compliance Total post harvest expenses

Rates Water and related charges General insurance Crop insurance Communication Accounting Legal and consulting Other administration Total overhead expenses Total on-orchard working expenses

2014 Per TCE export ($) 4.27 4.29 2.01 0.33 0.25 11.15

Calculated ratios

EBIT 2

436 436

Whole Per planted orchard ha ($) ($)

2015 BUDGET Per TCE Per TCE export gross ($) ($) 1

415 750 399 950 186 950 34 200 23 250 1 060 100

10 394 9 999 4 674 855 581 26 502

2.80 2.69 1.26 0.23 0.16 7.14

4.47 4.30 2.01 0.37 0.25 11.40

92 000 286 700 89 800 121 600 133 000 8 600 731 700

2 300 7 168 2 245 3 040 3 325 215 18 293

0.62 1.93 0.60 0.82 0.90 0.06 4.92

0.99 3.08 0.97 1.31 1.43 0.09 7.87

114 800 3 000 7 000 7 800 16 000 30 800 50 000 26 200 5 600 261 200

2 870 75 175 195 400 770 1 250 655 140 6 530

0.77 0.02 0.05 0.05 0.11 0.21 0.34 0.18 0.04 1.76

1.23 0.03 0.08 0.08 0.17 0.33 0.54 0.28 0.06 2.81

11 600 2 400 9 800 19 000 4 200 6 800 3 200 9 200 66 200

290 60 245 475 105 170 80 230 1 655

0.08 0.02 0.07 0.13 0.03 0.05 0.02 0.06 0.45

0.12 0.03 0.11 0.20 0.05 0.07 0.03 0.10 0.71

1 059 100

26 478

7.13

11.39

788 900

19 722

5.31

8.48

1 Tray carton equivalent. 2. 2 EBIT = earnings before interest and tax. The lease arrangements in the orchard models are permanent leases of land. Because of this, lease expenses are treated like interest expenses (i.e. cost of capital) for reporting purposes. 3 Orchard working expenses includes wages of management. 4 Orchard gate return. Refer -

https://www.mpi.govt.nz/documentvault/11057

56% 25.6% 29.0% 6.4% 41.4%

437 437

3.4.3 MPI Marlborough Vineyard Model Marlborough Vineyard, Model Budget, Provided by MPI https://www.mpi.govt.nz/dmsdocument/19916/loggedIn

Rounding errors may apply.

The Vineyard Model-

438 438

Marlborough Vineyard Model â&#x20AC;&#x201C; 2016/17

All data here from MPI, used with thanks. https://www.mpi.govt.nz/dmsdocument/19916/loggedIn

440 439

Further information â&#x20AC;&#x201C; variety gross margin benchmarking across key wine growing areas in NZ â&#x20AC;&#x201C; pls refer - https://www.mpi.govt.nz/dmsdocument/20144/loggedIn

441 440

441

442

TAXATION

Contributed by: Lay Associates Ltd Chartered Accountants Leeston, Rolleston, Ashburton

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/

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NOTE: This manual details the current (June 2018) 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.

444 444

4.1

INTRODUCTION

4.2

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 announced in the 2018 Budget. 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. 4.2.1 Changes to Tax Law In recent years there have been changes to the legislation in order to: Increase Certainty And Timeliness Of Provisional Tax Payments  Increasing the current $50,000 residual income tax limit for use of money interest (UOMI) to $60,000 (for individuals and non-individuals)  Removing UOMI interest for the first two provisional tax payments for all taxpayers who use the uplift method  Allowing businesses to use the Accounting Income Method (AIM) to calculate provisional tax via accounting software (applies from 1 April 2018)  Allowing companies to pay tax on behalf of shareholders Improve Self-Management And Integrity  Allowing contractors to elect their own withholding rate  Permitting voluntary withholding agreements  Extending withholding tax to labour-hire firms

445 445

Make The Penalty System Fairer  No longer imposing incremental late payment penalties on future GST, provisional tax, income tax and Working for Families Tax Credits (WFTC) debt Simplify Tax For Small Business  Simplifying FBT for close companies  Simplifying deduction calculations for dual use vehicles and premises  Increasing thresholds for adjustments in subsequent returns  Removing the requirement to renew RWT exemption certificates annually  Increasing the threshold for annual FBT returns from $500k to $1m of PAYE/ESCT Taxpayers should seek professional advice regarding these changes Bright-Line Test The bright-line test for the disposal of residential land 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 29 March 2018. Key features  The gains from the disposal of residential land acquired and disposed of within two or five years will be taxable, subject to some exceptions.  The two year 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 two-year 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. 446 446

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 1 October 2015 (or 29 March 2018 for the five 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. With respect to farming, the scope of changes to the tax legislation has been minimal in recent years. However, there has been an interpretation statement (IS 17/02) released by the Inland Revenue covering the deductibility of farmhouse expenditure (see Section to 4.8.2) Proposed changes to tax law In the 2018 budget the government announced a proposed change to the tax treatment of losses made on residential investment properties. It is proposed that losses made on residential investment properties would be ring-fenced, and could not be offset against a taxpayer’s other income (such as salary or wages, or business income). Losses can however be utilised in future years, when the properties are making profits, if the taxpayer is taxed on the sale of the property. This is expected to come into effect from the 2019/20 financial year.

447 447

4.3

THE INCOME TAX SYSTEM

4.3.1 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 schedular payments, or provisional tax systems. After the income year has concluded, each taxpayer 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 (see Section 4.2.5 Returns of Income for the different types of tax returns available). 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 disputes 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.

448

4.3.2 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. 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%) M 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.) ME 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. SB Earnings are secondary sources of income and annual taxable income is $14,000 or less. (Tax rate 10.5%) See Note 1 below. S 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. SH Earnings are secondary sources of income and annual taxable income is between $48,001 and $70,000. (Tax rate 30%). ST Earnings are secondary sources of income and annual taxable income is over $70,000. (Tax rate 33%). 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. 449 449

ST SL

Earnings are secondary sources of income and annual income is over $70,000 with a student loan. CAE Casual agricultural employee. NSW Recognised seasonal workers EDW Election day workers. 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 33 Droving work 15 Shearing work 15 Agricultural, maintenance, development or other allied work on farm or 15 land (including non-building improvements) Planting, sowing or harvesting of vegetable crops 15 Agricultural work involving firewood cutting, post splitting etc, grass 15 or seed cutting, hedge cutting, planting trees, planting or cutting flax, threshing, chaff cutting, hay making, etc, or gathering crops Forestry or bush work 15 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 be deducted by 15 cents for every $1. 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 along with the employer monthly schedules. The employer monthly schedule 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. 450

450

‘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). A PAYE payment form must accompany payments made to the Inland Revenue, and the full employer monthly schedule must be supplied with the second payment that is due on or before the 5th of the following month. Large employers are required to provide schedules electronically. Electronic filing is optional for employers that have gross annual PAYE of less than $100,000. However, this threshold is decreasing to $50,000 from 1 April 2019. Payday Filing From 1 April 2018 it is possible to file employee payroll information electronically on a payday frequency. The due date for payment has not changed but the employee information will be send to the Inland Revenue every payday. From 1 April 2019 it will be mandatory file employee information every payday, this can be processed either:  directly from payroll software  file upload to myIR  on-screen forms on myIR Exemptions are available for small employers 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 year 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% or 33% 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 increased to 33%. 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. These certificates may be issued 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 does not hold a valid certificate of exemption;  the payer’s interest is below the $5,000 exemption threshold. RWT does not have to be deducted on private borrowings unless those borrowings are used in a taxable activity e.g. Farming. Institutions which deduct RWT from interest/dividends are required to provide taxpayers with RWT certificates by 20th May each year. The certificates show RWT credits and allow a credit for the tax withheld to be claimed in the annual tax returns.

451

4.3.3 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 $2,500 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 $2,500 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. The due dates are specified in Section 4.15.1. 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. From 1 April 2017 use-of-money interest will generally run 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 2019 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 may elect to become provisional taxpayers, so long as they have a RIT of at least $2,500. 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’ returns 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. 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. 453 453

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 2016/17 RIT and pays 2018 provisional tax of $10,000. His total income is $63,875. Total tax due in his 31 March 2018 tax return (in whole dollars) is: Tax on total income Less PAYE deductions RESIDUAL INCOME TAX Less provisional tax already paid TERMINAL TAX

$12,183 1,000 $11,183 10,000 $1,183

His terminal tax payment will be due on 7 February 2019 (7th April 2019 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 2018/19 For the 2019 year, his provisional tax will be +5% of the residual income tax, (i.e. $11,742. The provisional tax payments for 2019 are due as follows: 28 August 2018 (one third) 15 January 2019 (one third) 7 May 2019 (one third)

$3,914 $3,914 $3,914 $11,742

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Key features are of safe harbour taxpayers are summarised as follows:

Classification

Interest Starting date:

Estimation: Instalment amount:

Safe harbour Current rules All provisional taxpayers except:  those who opt out  those with certificates of exemption Terminal tax date for those safe-harboured

Non-safe harbour Taxpayers All provisional taxpayers other than those who are safe harbour.

Not required. A taxpayer who estimates leaves the safe harbour Formula

Estimates not required

Late payment penalty:

Yes

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) No, unless taxpayer opts out of safe harbour

Interest on underpayments:

The interest applies from third instalment date for standard method or first instalment date if estimated.

Formula or estimate. A requirement that taxpayers take reasonable care if they estimate. Yes, if taxpayer pays less than estimated or required by formula. Yes (if more than $100)

Yes (if more than $100)

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. The qualifying criteria are as follows: A taxpayers residual income tax liability for the previous tax year is greater than $2,500 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;

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  

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 RIT previous year tax being calculated (2018 RIT (original 2019 formula)) (2018 taxable supplies – asset adjustments) x 100

RIT two years previous (2017 RIT (original formula)) (2017 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. 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). See Section 14.15.1.

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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 2019 is $22,050. Jane’s provisional tax due on 28th June 2019 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 2019 are $18,630, Jane’s provisional tax due on 28th August 2019 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). 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.

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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 them, without incurring IRD interest and late payment penalties. 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 2018. Income Year

Tax Date

Tax Amount

Cost with Tax Pooling

Estimated Savings Use of Money Late Payment Interest Penalties

2018

28 Aug 2017

$10,000

$10,771

$252

$1,954

2018

15 Jan 2018

$10,000

$10,513

$156

$1,488

2018

07 May 2018

$10,000

$10,313

$72

$1,039

TOTAL

$30,000

$31,597

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$4,961

Example 2 is based on the payment being made on the 12th June 2019 being 75 days after the due terminal tax date (7th April 2019 if return is filed by a tax agent). Income Year

Tax Date

Tax Amount

Cost with TMNZ Interest

Estimated Savings Use of Money Interest

Late Payment Penalties

2018

28 Aug 2017

$10,000

$11,154

$393

$2,945

2018

15 Jan 2018

$10,000

$10,886

$308

$2,316

2018

07 May 2018

$10,000

$10,669

$239

$1,954

TOTAL

$30,000

$32,709

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$8,155

4.3.4 Returns of Income Generally, every taxpayer must furnish a return of income each year setting out details of the assessable income derived during the year, plus supporting information, including financial accounts etc. Annual 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 a personal tax summary. The result is the elimination of a yearly tax return for many taxpayers. Personal tax summaries will be sent mainly to people who have a student loan, or receive working for families or are entitled to receive it. Personal tax summaries will also be sent to taxpayers who have had the PAYE rules applied incorrectly or had their tax under-deducted as a result of using inappropriate tax codes. 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 $2,500, 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 â&#x20AC;&#x201C; Partnerships and Look-through companies

IR9

Income tax return â&#x20AC;&#x201C; 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 personâ&#x20AC;&#x2122;s income year. There are penalties for filing returns after the due date. Refer to Section 4.2.7. 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. 460 460

4.3.5 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. The 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. For provisional taxpayers, due dates are specified in Section 4.15.1. No adjustment required. Confirmation of a tax loss which can be carried forward to be offset against future income.

The 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. Commentary on the disputes procedures appears in Section 4.2.1, Overview of the Tax System. 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.

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4.3.6 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 8.22% p.a., while interest on overpayment will be paid to the taxpayer by the IRD at 1.02% 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. 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. The remaining 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. 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) Promoter penalties imposed upon promoters of certain arrangements intended to produce taxation-related benefits. 462 462

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 Penalties relate to the offence and can vary from fines of up to $4,000 for first offences (e.g. for failing to provide information when required to do so), to fines of up to $50,000 and/or imprisonment for up to five years for tax evasion.

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4.4

CALCULATING TAXABLE INCOME - OVERVIEW

4.4.1 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 â&#x20AC;&#x153;globalâ&#x20AC;? 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.

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4.5

CALCULATION OF TAXABLE INCOME - INDIVIDUALS

4.5.1 Overview Individuals have to file IR3 tax returns (depending on their sources of income - see Section 4.2.5, Returns of Income). 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. The rates of tax are set out in Section 4.15.2 Rates of Income 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. 4.5.2 Assessable Income This includes, among other sources: 1.

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 e.g. company shares 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. 465

465

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.

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 â&#x20AC;&#x153;one who is engaged in a reasonable frequency of transactions.â&#x20AC;?

Land sold by a developer/divider of land. The same provisions re business/non-business acquisition set out in B above apply.

Land and improvements sold by a builder. The same provisions re business/non-business acquisition set out in B above apply.

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.

Sub-divided land where the scheme of subdivision was commenced within ten years of acquisition.

Major sub-divisions involving significant expenditure.

Residential land is acquired and disposed of within two or five years (BrightLine Test which came into force on the 1st of October 2015 and was increased to five years from 29 March 2018 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

466 466

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. 6.

Royalties and ‘know how’ payments.

Interest, dividends, annuities and pensions.

All income-tested benefits paid by the Department of Social Welfare.

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.

4.5.3 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).

467

4.5.4 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. 4.5.5 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: 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. 468

468

4.5.6 Working for Families Tax Credit Working for Families Tax Credits (WfFTC) are intended to give 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 Parental tax credit (up to 30 June 2018) Best Start tax credit (from 1 July 2018) 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. The parental tax credit provides additional family support to low to middle income working families for a ten week period after the birth of a child. The maximum entitlement is $2,200 per dependent child born. From 1 July 2018 the following changes to working for families will occur:  A “Best Start” payment of $60 per week will be available for every child born on or after 1 July 2018 until they turn 1. Then, from the age of 1 until they turn 3, best start payments will be abated at 21% for family income above $79,000  The family tax credit will increase for most children  The income threshold for some WfF tax credits will increase from $36,350 to $42,700 and the abatement rate will increase. A summary of these changes are shown in Section 4.15.10 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: family tax + in-work payment + parental tax + best start tax – credit abatement. credit credit credit The family income thresholds and tax credit entitlements for receiving family tax credits, in-work tax credits, family tax credits and parental tax credits from 1 April 2018 to 30 June 2018 are set out in Section 4.15.10. 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 469

469

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.

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4.6

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 (see Section 4.2.4). 4.6.1 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 Company tax payable (28%) Profit after tax

$100.00 $28.00 $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) (refer to Section 4.2.3) 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 Gross Dividend = Dividend payment divided by .67 (1-.33) RWT = Gross Dividend x 33% Less maximum Imputation Cr RWT to pay

$50.00 $74.63 $24.63 $20.90 $ 3.73

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 â&#x20AC;&#x201C; $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 Less imputation credit as per above: Less RWT Credit Payment received by Shareholders 471

471

$74.63 $20.90 $ 3.73 $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. 4.6.2 Bonus Issues A company can elect to treat a bonus issue as either taxable or non-taxable. 4.6.3 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). 4.6.4 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.

472 472

4.6.5 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. 4.6.6 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. 4.6.7 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. 4.6.8 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.

473

4.7

CALCULATING TAXABLE INCOME - PARTNERSHIPS

4.7.1 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. 4.7.2 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.

474

4.8

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 has control (which is called the trust property), for the benefit of persons (who are called the beneficiaries) of whom he may himself 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. 4.8.1 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. 4.8.2 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: ď&#x201A;ˇ 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 ď&#x201A;ˇ 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.

475

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. 4.8.3 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% or 33%.

476 476

4.9

CALCULATING TAXABLE INCOME - FARMERS

4.9.1 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. (For valuation of stock, see Section 4.8.6).  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. See Section 4.8.7.  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. 4.9.2 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 come 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 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. 477

477

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

Dissection where possible, then 20% deduction unless taxpayer can substantiate a higher 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.

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 partnermanager, 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:  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);

478

        



    

 

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. (see Sections 4.8.3 and 4.8.4) 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. 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. (see Appendix, Section 4.15.6) 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 – see Section 4.8.5 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 (see Section 4.8.3) 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.

479

  

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 –See Appendix, Section 4.15.6. 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. 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 cooks 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.

480

4.8.3 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. Other expenditure on land improvements must be capitalised as an asset and amortised at the rates set out in Section 4.15.3 Expenditure on Land and Aquaculture Improvements. 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. Development Expenditure Example In the year ended 30 June 2018, 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 481

481

4.9.3 Depreciation (See also Section 4.8.3 for Depreciation on Land Improvements). 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. 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. Selected examples of the economic rates are set out in Section 4.15.8. Straight line (SL) method is a constant percentage of cost price. The rates are set by the IRD although special rates may be approved. Selected examples are set out in Section 4.15.8. 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) (ii) (iii)

The maximum cost or depreciated book-value of any one asset is less than $2,000. Taxpayers can use more than one pool. This is important because the lowest rate applying to any asset in a pool must be used. 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.

482 482

Example: Value of pool at year start Asset purchased during year Value at end of year

$18,000 6,000 $24,000

Average value of pool

= ($18,000 + $24,000) ď&#x201A;¸ 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 (Section 4.15.8) 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 taxpayerâ&#x20AC;&#x2122;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. 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). 483 483

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 $500 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. 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. 484

484

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. Summary of Depreciation Methods Date of acquisition Rates On or after 20 May 2010 20% loading cannot be used for assets purchased after this date 1 April 2005 and 2005/06 onwards New economic rates plus 20% uplift for new assets (not including buildings, used imported motorcars, fixed life intangible property, excluded depreciable property or international aircraft) 1995/96 to 2004/05 income year 1993-2005 economic rates plus 20% new asset uplift (where applicable) 1 April 1993 to 1994/95 income Old schedule rates plus 25% uplift (where year applicable) or 1993-2005 economic rates (without new asset uplift) 16 December 1991 to 31 March Old schedule rates plus 25% uplift (where 1993 applicable) 15 December 1991 and earlier Old schedule rates

485 485

4.9.4 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.

486 486

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)

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.

(b)

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. 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.

487 487

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 for farmers affected by the dairy price downturn  Assistance to farmers and fishers affected by the Hurunui and Kaikoura earthquakes  Assistance to Northland farmers affected by droughts  Assistance to farmers affected by the Bay of Plenty 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.

488

4.9.5 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. Refer to Section 4.15.6, Accrual Rules for Expenditure. 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. (Refer to Section 4.9 for provisions regarding purchase and planting of horticultural plants). Valuation of Livestock (Refer also to Sections 4.15.4 and 4.15.5.) 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 For non-specified livestock (such as horses, rabbits, dogs, or ostriches) other than bloodstock, the valuation options are:  Cost price  Market value 489 489

ď&#x201A;ˇ ď&#x201A;ˇ

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. Refer to Section 4.15.4 for recent national average market values.

490

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.

491 491

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 $13.00 per head Value per head = $13 Year 2:

Example 2

Calculation:

R1 year value RG2 costs from IRD Value per head = $21

$13.00 per head $ 8.00 per head

Rising 1 year stock No of lambs bred No of lambs purchased Average purchase price BRG costs from IRD Homebred lambs Purchased lambs

1,000 400 $25 per head $13 per head 1,000 @ $13 400 @ $25 1,400

Average cost of lambs

$13,000 $10,000 $23,000

= $23,000  1,400 = $16.43 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. 492

492

Example 3 Rising 2 year stock NB: The year following example 2. No of hoggets at start of year Cost of hoggets at start of year Sheep purchased (not R1 class) RG2 costs from IRD Calculation: Hoggets at start of year Rearing and growing costs Purchases

400 $16.43 per head 200 @ $30 each $8 per head 400 x $16.43 400 x $8 200 x $30 600

$ 6,572 $ 3,200 $ 6,000 $15,772

Average cost of mature sheep

= $15,772 ď&#x201A;¸ 600 = $26.29 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 ($16.43 + $8) The closing cost ($26.29 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. Example 4

Average cost of mature sheep Number on hand-start Intake of mature sheep Sales and deaths of mature sheep Number on hand - end Last year's average cost (say) This year's average intake cost

Calculation: Cost of sheep surviving from last year: (Start nos. - sales and deaths) x last year's cost (2,000 - 600) x $25 Cost of this year's intake: 700 x $26.29

2,000 700 600 2,100 $25.00 per head $26.29 per head

$35,000 18,403 $53,403

Average cost per head = $53,403 ď&#x201A;¸ 2100 = $25.43 per head Note: The actual formulae are more complex than these examples show. Farmers should seek professional advice. 493

493

Section 4.15.4 details the published National Standard Costs over recent years. Section 4.15.5 provides example calculations for the herd scheme and the National Standard Cost scheme.

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 standard cost N/A

HVR

Self-assessed cost Two-year

National same-year two-year Standard Cost HS NA N/A NA NA HVR two-year Not allowed N/A two-year Self-assessed two-year same-year two-year N/A cost MV/RP not required same-year two-year not required A taxpayer cannot use both the national standard cost and self-assessed cost year.

494 494

MV/RP not required NA two-year not required N/A in the same

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 (%) Rate (%) Sheep 25 33 Cattle 20 26 Stags 20 26 Other deer 15 22 Goats 20 26 Pigs 33 40 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. Livestock taxation examples are illustrated in Section 4.15.5. Bloodstock For tax purposes, bloodstock is defined to mean any horse that is a member of the standardbred or thoroughbred breed of horses. 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. 495

495

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.

496 496

4.9.6 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 An amortisation deduction is allowed for forest land development expenditures listed in Section 4.15.3. 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.  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.

497

4.9.7 Limitation of Tax Losses from Farming There is no limitation regarding the offset of farming losses against other income.

498

4.10 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 contained in Section 4.8. 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 (refer Section 4.8.4). Expenditure on land improvements and development is subject to the same rules as for farming (refer Sections 4.8.4 and 4.8.5). 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 (see Section 4.15.11). 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 (see Section 4.15.11).  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. 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 (see Section 4.15.3)  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. 499

499

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. 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.

500 500

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 Bedding plants House plants and roses Liners/plugs Shrubs and perennials Trees

DSP value 58% 55% 52% 48% 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%). 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.

501 501

On the other hand, plants that are scrapped are effectively no longer part of a growerâ&#x20AC;&#x2122;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. Circumstance The market selling value drops for a particular stock item, or there is no demand for the item, and the stock is scrapped The market selling value drops for a particular stock item, or there is no demand but stock is not scrapped Plant is damaged and left in a â&#x20AC;&#x153;bargain areaâ&#x20AC;? Plant is irrecoverably damaged and is scrapped Plant is over-mature and is scrapped Plant is over-mature and is not scrapped

Treatment Nil value DSP based market value DSP based market value Nil value Nil value DSP based market value

revised

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 (see Section 4.8.5).

502

4.11 CALCULATING TAXABLE INCOME - FISHING INDUSTRY The following provisions relate specifically to the fishing industry but readers should also familiarise themselves with Section 4.8 which includes information about farming generally. In general ‘fish’ includes shellfish and crustaceans. 4.11.1 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. 4.11.2 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. 4.11.3 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. 4.11.4 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. 503

503

4.11.5 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 fiveyear 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. 4.11.6 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 GSTregistered 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. 504

504

4.11.7 Income Equalisation Scheme Taxpayers engaged in the business of fishing are able to make deposits under the income equalisation scheme, and for this purpose â&#x20AC;&#x2DC;fishingâ&#x20AC;&#x2122; includes rock oyster farming, mussel farming, and freshwater fish farming. (Also see Section 4.8.5.)

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4.12 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.

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4.13 FRINGE BENEFIT TAX Error! Bookmark not defined. 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. 4.13.1 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. An example of the multi-rate calculation is set out in section 4.12.4. Current rates are available on http://www.ird.govt.nz/fringe-benefit-tax/fbttax-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.

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4.13.2 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. 2. 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. 3. Subsidised transport where the employer is a public carrier. 4. 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). 2. 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) 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. (b) For non-sale goods, the price is not less than 95% of the retail price. 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). 508

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4.13.3 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 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. 509 509

Example: During the quarter ending 31 March 2018, 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 49.25%. The number of days a fringe benefit was conferred is – Days of the quarter less no availability for private use less emergency calls less business trip days

7 2 10

19 71

The gross value of the benefit is calculated as follow 71 90

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 49.25% of the net quarterly taxable value, being – $759 x 49.25% = $373.81

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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 GSTinclusive cost price or 23% of the GST-exclusive cost price or 36% of the GST-inclusive 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. 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. 511

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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 From 1 January 2016 1 October 2015 to 31 December 2015 1 July 2015 to 30 September 2015 1 October 2014 to 30 June 2015 1 July 2014 to 30 September 2014 1 January 2013 to 30 June 2014

Rate 5.77 5.99 6.22 6.70 6.13 5.90

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. Free or Discounted Goods ď&#x201A;ˇ 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. ď&#x201A;ˇ 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.

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4.13.4 Calculation of Fringe Benefit Tax (Example from Tax Information Bulletin Vol. 12 No. 11 Nov 2000 â&#x20AC;&#x201C; 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) Cash Taxable value ($) of fringe benefits remuneration for quarter year $ Motor Foreign Medical vehicles superannuation insurance2 scheme1 CEO $80,000 (Includes $1,800* $750 $200 dividends received of $5,000 from JM Ltd) Employee 1 $50,000 $1,800* $750 $200 Employee 2 $40,000 $200 Employee 3 $37,500 $200 Total benefit $3,600 $1,500 $800 Total value of all benefits * 1 2 3

received per Discounted goods3 $100

$100 $100 $100 $400 $6,300

Based on a $36,000 vehicle used every day in the quarter (90 days). 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 43% or 49.25% single rate to this quarter. The company elects the 43% rate.

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The FBT liability for quarters 1 to 3 is as follows: Quarter Taxable value of FBT benefits rate Quarter 1 $6,300 43% Quarter 2 $6,300 43% Quarter 3 $6,300 43% Total

FBT payable $2,709 $2,709 $2,709 $8,127

Due date for return and payment 20 July 20 October 20 January

As JM Ltd has chosen to pay FBT at the 43% 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

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 non-attributed 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. Employee Cash Less tax on the Plus annual value of Equals fringe remuneration cash fringe benefits benefit inclusive remuneration attributed remuneration 1 CEO $80,000 $17,320 $10,200 $72,880 2 Employee 1 $50,000 $8,020 $10,200 $52,180  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.  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.

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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  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.  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. 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 Less tax on the cash Equals FBT benefit Inclusive Remuneration liability on remuneration 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 49.25% single rate or the 42.86% rate to the respective pools depending on whether the recipient of the benefit is a major shareholder-employee or an associate. Pool Value of nonFBT rate FBT liability attributed benefits Pool 1 (major shareholder$1,200 49.25% $591 employee a recipient) Pool 2 (major shareholder$3,600 42.86% $1,542 employee not a recipient) Total $2,133 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 Plus the FBT liability Less the FBT FBT liability in step 3 (FBT on calculated in step 4 (FBT assessed in the first for the final quarter attributed benefits) on non-attributed benefits) three quarters of the year $9,393.77 $2,133 $8,127 $3,399.77 JM Ltd’s FBT liability for the final quarter is $3,399.77. The tax and the return are due 31 May following the end of the quarter.

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4.14 GOODS AND SERVICES TAX (GST) 4.14.1 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.

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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. 4.14.2 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. It is no longer acceptable for payments to be postmarked by 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 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. 517

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4.14.3 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 â&#x20AC;&#x2DC;tax fractionâ&#x20AC;&#x2122; 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: Output Tax: Sales: Total taxable supplies for the period, including GST $11,000 less Zero rated supplies (e.g. direct export sales) 2,000 $9,000 GST Content: x 3/23 1,174 Plus Adjustments (e.g. GST on goods used privately) 200 Total Output tax $1,374 Input Tax: Purchases/expenses (business related): Total for which tax invoices are held, including GST GST Content x 3/23 Plus adjustments (e.g. business use of private vehicle) Total Input tax

$5,400 704 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. 518 518

4.14.4 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: GST inputs from cash book for Jan. and Feb. plus GST inputs included in GST accruals book for Feb. (invoices on hand but not yet paid at 28 Feb.) less

$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. 4.14.5 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. 519 519

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). 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. 4.14.6 Auction Sales Sales through auctioneers are also subject to special rules, because often it is not known if the sale is taxable or not (i.e. whether the principal is registered). With the principal's agreement, the auctioneer can treat all sales as taxable; the tax collected is either remitted to the IRD by the auctioneer on behalf of an unregistered principal, or passed to a registered principal for him to account for. If there is no agreement to adopt this approach, the sale by auction will only be taxable if the principal concerned is a registered person selling goods in the course of his taxable activity. It should be noted that the principal is the supplier/seller of the goods. Auctions may themselves be carried on either a tax-inclusive or tax-exclusive bidding basis the latter requiring GST to be added to the successful bid. Each auctioneer will decide his individual approach. It should also be noted that the commission charged by the auctioneers is subject to GST if the auctioneer is registered.

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4.15 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. 4.15.1 Levies on Employers The ACC levies on employers consist of three components: 1. Work Account Current Portion Levy, 2. Work Account Residual Portion Levy, and 3. Work Safer Levy. Workplace Cover levies are 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 classification groupings and associated levies are set out in Section 4.15.7. The Work Account Residual Portion Levy covers the long-term costs of treating and rehabilitating people in the workplace before 1 July 1999 and non-work injuries prior to 1 July 1992. 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. The classification groupings and associated levies are set out in Section 4.15.7. The work safer levy is currently set at 8 cents per $100 of the amount paid to employees in the previous year. The maximum amount of employee earnings on which the residual claims levy and employer premium is payable in respect of one employee in the 2018/19 year is $126,286. 4.15.2 Levies on the Self-Employed In the 2018/19 income year, self-employed persons and private domestic workers will pay the:    

Residual Portion of the Work Account Levy Current Portion of the Earners’ Levy Working Safer Levy Note: The Residual Portion of the Earners Levy was removed on the 1st April 2016.

The earners’ levies are set annually by Regulation. The categories and levy rates for 2018/19 are set out in Section 4.15.7. 521

521

The work account levy maximum amount of earnings for a self-employed person for the 2017 year is $124,053. Where a self-employed person works for more than an average of 30 hours per week and earns less that the minimum income of $32,760, the levy is calculated on the basis of the minimum income. 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 for self-employed as an alternative to the standard cover option. This option is beneficial for self-employed persons with fluctuating income. Standard cover provides weekly compensation of 80% of what was earned in the previous year. ACC Coverplus Extra 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. Levies on the self-employed are scheduled in Section 4.15.7. 4.15.3 ACC Levy Rates 2018/19 The average levy rates for 2018/19 are as follows: Earnerâ&#x20AC;&#x2122;s Account (paid by $1.21 per $100 of liable earnings employees through PAYE) Motor Vehicle Account $113.94 (paid by motorists)

522 522

From 1 April 2018 From 1 July 2017

4.16 TAXATION APPENDICES 4.16.1 2018/2019: Due Dates for the Payment of Provisional and Terminal Tax Month of Balance Date October November December January February March April May June July August September

Instalments A (optional) 28 Jan 28 Feb 28 Mar 7 May 28 May 28 Jun 28 Jul 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan

B (First) 28 Mar 7 May 28 May 28 Jun 28 Jul 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb

C (optional) 28 May 28 June 28 Jul 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar 7 May

D (Second) 28 July 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar 7 May 28 May 28 Jun

Terminal Tax E (optional) 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar 7 May 28 May 28 Jun 28 Jul 28 Aug

F (Third) 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar 7 May 28 May 28 Jun 28 Jul 28 Aug 28 Sep 28 Oct

No Tax Agent Sep Oct Nov Dec Feb Feb Feb Feb Feb Feb Feb Feb

Tax Agent Nov Dec Jan Feb Apr Apr Apr Apr Apr Apr Apr Apr

Example: Payment Dates A taxpayer with a 31 May balance date must pay their 2017-18 provisional tax instalments on or before 28 October 2017, 28 February 2018, and 28 June 2018. Any terminal tax for the 2017-18 tax year is due for payment on or before 7 February 2019, or if the taxpayerâ&#x20AC;&#x2122;s income tax return is linked to a tax agent, 7 April 2019. 2018/19: Instalment Dates and Calculation Methods for Provisional Tax Method Used

Standard Estimation GST Ratio Method, AIM (two-monthly or six-monthly GST filing) AIM (monthly GST filing) GST 6 monthly filing (using either the standard or estimation method)

Number of Instalments

3 3 6

Instalment Due Dates

B, D, F B, D, F A to F

Every Month

C and F

If a taxpayer chooses to use the GST ratio method, the taxpayerâ&#x20AC;&#x2122;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). 523

523

4.16.2 Rates of Income Tax Individuals 2014 and Future Income Years $0 to $14,000 $14,001 - $48,000 $48,001 - $70,000 Over $70,000

10.5% 17.5% 30.0% 33.0%

Companies Domestic companies: 28% of taxable income Overseas companies: 28% of taxable income Trusts Trustee income Beneficiary income to: - minors less than 16 years of age at trust balance date - other beneficiaries Distribution from a non-qualifying trust Undistributed rents, interest and royalties derived by the Maori Trustee Income from Maori Authorities

33 % 33% taxpayerâ&#x20AC;&#x2122;s marginal tax rate 45% 17.5% 17.5%

Tax Deductions: Withholding payment tax deduction rates Refer to Section 4.2.2 PAYE (Pay As You Earn) Tax on Personal Income. Tax Codes and Special Tax rates Refer to Section 4.2.2 PAYE (Pay As You Earn) Tax on Personal Income

524

4.16.3 Land and Aquaculture Development Expenditure Depreciation Rates Description and Rate of Depreciation Diminishing Value (%). PART A: FARMING AND AGRICULTURE (including HORTICULTURE) (1) (1B) (2) (3) (4)

(5) (6) (7) (8) (9) (10) (11) (12)

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. The draining of swamp or low-lying lands. The construction of access roads or tracks to or on the land. 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. 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. The sinking of bores or wells for the purpose of supplying water for use on the land. The construction of aeroplane landing strips to facilitate aerial topdressing of the land. The planting of non-listed horticultural plants on the land. The erection on the land of electric-power lines or telephone lines. The construction on the land of feeding platforms, feeding yards, plunge sheep dips, or self-feeding ensilage pits. The construction on the land of supporting frames for growing crops. The construction on the land of structures for shelter purposes.

5 45 5 5 5

5 5 5 10 10 10 10 10

PART B: FRESHWATER FISH FARMING (1) (2) (3) (4) (5) (6) (7) (8)

The drilling of water bores. The draining of land or the excavating of sites for ponds, tanks, or races. The construction or races, sluices, ponds, settling ponds, or tanks of impervious materials to conduct or contain waters. The supply and installation of pipes for water reticulation. The construction of walls, embankments, walkways, service paths, or access paths. The construction of effluent ponds. The supply and installation of baffles or screens for the containing or excluding of fish. The construction of fencing on the fish farm.

525

5 5 5 5 5 5 10 10

PART C: MUSSEL FARMING (1) (2) (3)

The acquisition, preparation, and mooring of pontoons, rafts, or other floating structures for collecting spat: 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 20

PART D: ROCK OYSTER FARMING (1) (2) (3)

The acquisition and preparation of spatting sticks. The construction and erection of posts, rails, or other structures for the holding of spatting sticks during spat catching and maturing. The construction of fences (including breakwater fences).

20 20 20

PART E: SCALLOP FARMING (1) (2)

The acquisition, preparation, and mooring of floating structures for collecting spat. The acquisition, mooring, and outfitting of long-lines from which the collected spat is suspended for subsequent growth.

20 20

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.

526

20 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) The construction of roads to or on the land (including any culverts or bridges necessary for the construction), when the roads â&#x20AC;&#x201C; (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) (ii) roads that are not metalled or sealed. (7) 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. (8) The repair of flood or erosion damage. (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.

527 527

5 5 5 5 5

5 5 10 10

4.16.4 Values for Specified Livestock National Standard Costs 2018 Income Year Source: http://www.ird.govt.nz/technical-tax/determinations/livestock/nationalstandard/livestock-nationalstandardvalues-2018.html Kind of Livestock

Category of Livestock

National Standard Cost $

Sheep Rising 1 year

34.60

Rising 2 year

24.10

Purchased bobby calves

186.00

Rising 1 year

437.30

Rising 2 year

333.30

Rising 1 year

362.50

Rising 2 year

203.40

Rising 3 year male non-breeding cattle (all breeds)

203.40

Rising 1 year

95.30

Rising 2 year

49.30

Goats (Meat & Fibre) Rising 1 year

28.30

Rising 2 year

19.40

Rising 1 year

184.50

Rising 2 year

40.50

Weaners to 10 weeks of age

103.90

Growing pigs 10 to 17 weeks of age

86.20

Dairy Cattle

Beef Cattle

Deer

Goats (Dairy)

Pigs

528

2017 Income Year Source: http://www.ird.govt.nz/technical-tax/determinations/livestock/nationalstandard/livestock-nationalstandardvalues-2017.html Kind of Livestock

Category of Livestock

National Standard Cost $

Sheep Rising 1 year

32.20

Rising 2 year

22.70

Purchased bobby calves

143.00

Rising 1 year

404.10

Rising 2 year

322.50

Rising 1 year

343.80

Rising 2 year

190.90

Rising 3 year male non-breeding cattle (all breeds)

190.90

Rising 1 year

101.20

Rising 2 year

49.90

Goats (Meat & Fibre) Rising 1 year

26.60

Rising 2 year

18.20

Rising 1 year

132.30

Rising 2 year

26.20

Weaners to 10 weeks of age

97.50

Growing pigs 10 to 17 weeks of age

79.50

Dairy Cattle

Beef Cattle

Deer

Goats (Dairy)

Pigs

529

2016 Income Year Source: http://www.ird.govt.nz/technical-tax/determinations/livestock/nationalstandard/livestock-nationalstandardvalues-2016.html Kind of Livestock

Category of Livestock

National Standard Cost $

Sheep Rising 1 year

31.00

Rising 2 year

21.50

Purchased bobby calves

158.50

Rising 1 year

529.10

Rising 2 year

414.20

Rising 1 year

322.80

Rising 2 year

181.20

Rising 3 year male non-breeding cattle (all breeds)

181.20

Rising 1 year

106.00

Rising 2 year

52.90

Goats (Meat & Fibre) Rising 1 year

25.30

Rising 2 year

17.30

Rising 1 year

174.70

Rising 2 year

31.40

Weaners to 10 weeks of age

103.20

Growing pigs 10 to 17 weeks of age

86.00

Dairy Cattle

Beef Cattle

Deer

Goats (Dairy)

Pigs

530 530

National Average Market Values 2018 Income Year Source: http://www.ird.govt.nz/technical-tax/determinations/livestock/nationalaverages/livestock-nationalavemarketvalues-2018.html Type of Classes of Livestock Livestock

Average Market Value per Head $

Sheep Ewe hoggets Ram and wether hoggets Two-tooth ewes Mixed-age ewes (rising three-year and four-year old ewes) Rising five-year and older ewes Mixed-age wethers Breeding rams Beef cattle Beef breeds and beef crosses: Rising one-year heifers Rising two-year heifers Mixed-age cows Rising one-year steers and bulls Rising two-year steers and bulls Rising three-year and older steers and bulls Breeding bulls Dairy cattle Friesian and related breeds, Jersey and other dairy breeds: Rising one-year heifers Rising two-year heifers Mixed-age cows Rising one-year steers and bulls Rising two-year steers and bulls Rising three-year and older steers and bulls Breeding bulls

531 531

123.00 119.00 179.00 160.00 142.00 109.00 289.00

735.00 1,137.00 1,497.00 922.00 1,283.00 1,608.00 3,004.00

691.00 1,313.00 1,529.00 581.00 936.00 1,320.00 1,947.00

Deer Red deer, wapiti, elk and related crossbreeds: Rising one-year hinds Rising two-year hinds Mixed-age hinds Rising one-year stags Rising two-year and older stags (non-breeding) Breeding stags Other breeds: Rising one-year hinds Rising two-year hinds Mixed-age hinds Rising one-year stags Rising two-year and older stags (non-breeding) Breeding stags Goats Angora and angora crosses (mohair producing): Rising one-year does Mixed-age does Rising one-year bucks (non-breeding)/wethers Bucks (non-breeding)/wethers over one year Breeding bucks Other fibre and meat producing goats (cashmere or cashgora producing): Rising one-year does Mixed-age does Rising one-year bucks (non-breeding)/wethers Bucks (non-breeding)/wethers over one year Breeding bucks Milking (dairy) goats: Rising one-year does Does over one year Breeding bucks Other dairy goats Pigs Breeding sows less than one year of age Breeding sows over one year Breeding boars Weaners less than 10 weeks of age (excluding sucklings) Growing pigs 10 to 17 weeks of age (porkers and baconers) Growing pigs over 17 weeks of age (baconers)

532

380.00 511.00 572.00 396.00 627.00 2,055.00 343.00 457.00 489.00 356.00 46300 1,103.00

62.00 83.00 52.00 51.00 394.00 59.00 88.00 51.00 63.00 394.00 301.00 383.00 324.00 42.00 286.00 358.00 544.00 86.00 148.00 213.00

2017 Income Year Source: http://www.ird.govt.nz/technical-tax/determinations/livestock/nationalaverages/livestock-nationalavemarketvalues-2017.html Type of Classes of Livestock Livestock

Average Market Value per Head $

533 533

109.00 103.00 150.00 131.00 110.00 86.00 349.00

824.00 1,171.00 1,431.00 986.00 1,325.00 1,614.00 3,095.00

819.00 1,421.00 1,649.00 713.00 1,091.00 1,356.00 1,887.00

303.00 473.00 526.00 343.00 595.00 1,861.00

Other breeds: Rising one-year hinds Rising two-year hinds Mixed-age hinds Rising one-year stags Rising two-year and older stags (non-breeding) Breeding stags Goats Angora and angora crosses (mohair producing): Rising one-year does Mixed-age does Rising one-year bucks (non-breeding)/wethers Bucks (non-breeding)/wethers over one year Breeding bucks Other fibre and meat producing goats (cashmere or cashgora producing): Rising one-year does Mixed-age does Rising one-year bucks (non-breeding)/wethers Bucks (non-breeding)/wethers over one year Breeding bucks Milking (dairy) goats: Rising one-year does Does over one year Breeding bucks Other dairy goats Pigs Breeding sows less than one year of age Breeding sows over one year Breeding boars Weaners less than 10 weeks of age (excluding sucklings) Growing pigs 10 to 17 weeks of age (porkers and baconers) Growing pigs over 17 weeks of age (baconers)

534

200.00 331.00 375.00 262.00 425.00 708.00

39.00 59.00 42.00 42.00 343.00 33.00 42.00 42.00 51.00 345.00 320.00 400.00 270.00 20.00 263.00 365.00 314.00 75.00 143.00 203.00

2016 Income Year Source: http://www.ird.govt.nz/technical-tax/determinations/livestock/nationalaverages/livestock-nationalavemarketvalues-2016.html Type of Classes of Livestock Livestock

Average Market Value per Head $

535 535

92.00 84.00 133.00 117.00 96.00 68.00 304.00

726.00 1,079.00 1,273.00 842.00 1,229.00 1,468.00 2,571.00

530.00 1,077.00 1,356.00 615.00 1,003.00 1,295.00 1,607.00

223.00 397.00 438.00 263.00 543.00 1,775.00

536

101.00 175.00 232.00 119.00 218.00 409.00

41.00 56.00 42.00 50.00 321.00 38.00 52.00 39.00 49.00 313.00 350.00 420.00 280.00 30.00 223.00 279.00 405.00 77.00 152.00 223.00

4.16.5 Livestock Taxation Examples The following examples calculate taxable income for sheep using either the herd scheme (where all sheep are included in the â&#x20AC;&#x153;herdâ&#x20AC;?) or the National Standard Cost scheme using the average cost inventory system. Three consecutive years are illustrated, namely the income years ending 30 June 2016, 2017, and 2018. Livestock Data Year ended 30 June

2015

2016

2017

2018

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

$327 581 3023 1241

$241 295 3031 1030

$381 103 3080 1051

Livestock purchases MA ewes Rams

$44 650 508 2

$24 510 350

$25 500 300

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

Livestock sales Lambs MA ewes

537 537

Herd Scheme 2016 Income Year

Opening tax values 1 July 2015 (opening stock @ 2016 NAMV) Ewe hoggets 2th ewes R3 and R4 year old ewes R5 year and older ewes Rams

930 760 1633 576 80 3979

x x x x x

Closing tax values 30 June 2016 (closing stock @ 2016 NAMV) Ewe hoggets 2th ewes R3 and R4 year old ewes R5 year and older ewes Rams

932 771 1638 581 80 4002

Taxable income due to changes in herd numbers

$ 460,029

Check Herd value 30 June 2016 Less herd value 30 June 2015 (as per 2015 NAMV)

Increase in opening capital value of herd Plus increase due to changes in numbers

x x x x x

Increase $ 457,317

92 133 117 96 304

$ 85,560 101,080 191,061 55,296 24,320 $ 457,317

92 133 117 96 304

$ 85744 102543 191646 55776 24320 $ 460,029

457,317

$460,029 $434,209

$434,209 $

Increase

Taxable Income from Sheep Sales Less Purchases Cash Surplus Plus Taxable increase in herd Taxable income from sheep

$ $ $ $ $

538

327,581 44,650 282,931 2,712 285,643

$2,712

$25,820 23,108 $2,712 $25,820

Herd Scheme 2017 Income Year

Opening tax values 1 July 2016 (opening stock @ 2017 NAMV) Ewe hoggets 2th ewes R3 and R4 year old ewes R5 year and older ewes Rams

932 771 1638 581 80 4002

x x x x x

Closing tax values 30 June 2017 (closing stock @ 2017 NAMV) Ewe hoggets 2th ewes R3 and R4 year old ewes R5 year and older ewes Rams

930 763 1732 576 80 4081

Taxable income due to changes in herd numbers

$ 533,992

Check Herd value 30 June 2017 Less herd value 30 June 2016 as (per 2016 NAMV)

Increase in opening capital value of herd Plus increase due to changes in numbers

x x x x x

Increase $ 523,646

109 150 131 110 349

$ 101,588 115,650 214,578 63,910 27,920 $ 523,646

109 150 131 110 349

$ 101370 114450 226892 63360 27920 $ 533,992

523,646

$533,992 $460,029

$460,029 $

Increase

Taxable Income from Sheep Sales Less Purchases Cash Surplus Plus Taxable increase in herd Taxable income from sheep

$ $ $ $ $

539

241,295 24,510 216,785 10,346 227,131

$10,346

$73,963 63,617 $10,346 $73,963

Herd Scheme 2018 Income Year Opening tax values 1 July 2017 (opening stock @ 2018 NAMV) Ewe hoggets 2th ewes R3 and R4 year old ewes R5 year and older ewes Rams

930 763 1732 576 80 4081

x x x x x

Closing tax values 30 June 2018 (closing stock @ 2018 NAMV) Ewe hoggets 2th ewes R3 and R4 year old ewes R5 year and older ewes Rams

934 735 1803 561 80 4113

Taxable income due to changes in herd numbers

$ 637,709

Check Herd value 30 June 2018 Less herd value 30 June 2017 as (per 2017 NAMV)

Increase in opening capital value of herd Plus increase due to changes in numbers

x x x x x

Increase $ 632,999

123 179 160 142 289

$ 114,390 136,577 277,120 81,792 23,120 $ 632,999

123 179 160 142 289

$ 114882 131565 288480 79662 23120 $ 637,709

632,999

$637,709 $533,992

$533,992 $

Increase

Taxable Income from Sheep Sales Less Purchases Cash Surplus Plus Taxable increase in herd Taxable income from sheep

$ $ $ $ $

540 540

381,103 25,500 355,603 4,710 360,313

$4,710

$103,717 99,007 $4,710 $103,717

National Standard Cost 2016 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 2016 also provides the national standard costs for livestock. The formulae have not been reprinted in this Manual.

Average cost of livestock for the 2016 tax year has been calculated as: Ewe hoggets $ 31.00 per head Mature sheep $ 60.41 per head

Opening tax value 1 July 2015 Ewe hoggets Mature sheep

930 3049 3979

x x

$ $

28.20 56.55

$ 26,226.00 172,420.95 198,646.95

31.00 60.41

$ 28,892.00 185,458.70 214,350.70

Closing tax value 30 June 2016 Ewe hoggets Mature sheep

Change in stock on hand

932 3070 4002 $ 214,350.70

Taxable income from sheep Sales Less Purchases Livestock Trading Surplus Plus change in Stock on hand Taxable income from sheep

$ $ $ $ $

327,581 44,650 282,931 15,704 298,635

541

x x

$ $

$ 198,646.95 $

15,704

National Standard Cost 2017 Income Year Average cost of livestock for the 2017 tax year has been calculated as: Ewe hoggets Mature sheep

$ 32.20 per head $ 59.51 per head

Opening tax value 1 July 2016 Ewe hoggets Mature sheep

932 3070 4002

x x

$ $

31.00 60.41

$ 28,892.00 185,458.70 214,350.70

32.20 59.51

$ 29,946.00 187,516.01 217,462.01

Closing tax value 30 June 2017 Ewe hoggets Mature sheep

Change in stock on hand

930 3151 4081 $ 217,462.01

Taxable income from sheep Sales Less Purchases Livestock Trading Surplus Plus change in Stock on hand Taxable income from sheep

$ $ $ $ $

241,295 24,510 216,785 3,111 219,896

542

x x

$ $

$ 214,350.70 $ 3,111.31

National Standard Cost 2018 Income Year Average cost of livestock for the 2018 tax year has been calculated as: Ewe hoggets Mature sheep

$ 34.60 per head $ 60.97 per head

Opening tax value 1 July 2017 Ewe hoggets Mature sheep

930 3151 4081

x x

$ $

32.20 59.51

$ 29,946.00 187,516.01 217,462.01

34.60 60.97

$ 32,316.40 193,823.63 226,140.03

Closing tax value 30 June 2018 Ewe hoggets Mature sheep

Change in stock on hand

934 3179 4113 $ 226,140.03

Taxable income from sheep Sales Less Purchases Livestock Trading Surplus Plus change in Stock on hand Taxable income from sheep

$ $ $ $ $

381,103 25,500 355,603 8,678 364,281

543

x x

$ $

$ 217,462.01 $ 8,678.02

4.16.6 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 Postage and Stationery Subscriptions * Journals and periodicals * Trade and professional Telephone Vehicle Registration Rents payable for lease of land and/or buildings

Rents payable for lease or bailment of livestock or bloodstock Insurance premiums Maintenance contracts Service contracts which do not exceed $23,000 Consumable aids Periodic charges Rates Advance bookings for travel and accommodation Advertising Road user charges Audit fees Accounting costs

Limit on Expenditure No limit No limit No limit in total, but the maximum for any one association is $6,000. Expenditure must not exceed 12 months. Expenditure must not extend further than 2 months past balance date. No limit 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). Must not relate to a period beyond 6 months past balance date and the amount unexpired must not exceed $26,000. Must not relate to a period beyond 12 months past balance date and the amount unexpired must not exceed $12,000. The contract/warranty must have been purchased as an integral part of the asset(s). Performance completed within 3 months of balance. Must be in the possession of the taxpayer at balance date and the unexpired portion must not exceed $58,000. Must not relate to a period beyond 12 months past balance date and the unexpired portion must not exceed $14,000. No limit Maximum $14,000, must not exceed 6 months after balance date. Maximum $14,000, 6 months. No limit No limit 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. 544

544

4.16.7 Accident Compensation Levies 2018-19 ACC (CU) number Employer (EMP) and ACC CoverPlus self-employed (SEP) Work Account levy rate (the rate applicable to the 2017/18 employer final account will be found in the 2017/18 ACC Levy Guidebook). ACC CoverPlus Extra (CPX) is an optional product for self-employed people (including Non-PAYE shareholder-employees). CPX covers agreed weekly compensation. In the event of an injury where the claim is accepted the standard rate guarantees agreed weekly compensation without any adjustment if the business continues to generate income or there is a partial return to work 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 The Working Safer (WS) levy collected on behalf of WorkSafe NZ to support its activities. Note: All levy rates are shown exclusive of GST.

CU Description Horticulture and fruit growing 01110 Nursery production 01120 Floriculture production 01130 Vegetable growing 01140 Grape growing 01150 Apple and pear growing 01160 Stone fruit growing 01170 Kiwi fruit growing 01180 Olive growing Fruit growing (not elsewhere 01190 classified) 01191 Citrus growing 01192 Berryfruit growing Grain, sheep, and beef cattle farming 01210 Grain growing Grain-sheep and grain-beef 01220 cattle farming 01230 Sheep and beef cattle farming 01240 Sheep farming 01250 Beef cattle farming

EMP or SEP

545 545

Self Employed CPX CPX LLWC

1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06

1.42 1.42 1.42 1.42 1.42 1.42 1.42 1.42 1.42

1.34 1.34 1.34 1.34 1.34 1.34 1.34 1.34 1.34

0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08

1.06 1.06

1.42 1.42

1.34 1.34

0.08 0.08

1.06

1.42

1.34

0.08

2.34 2.33 2.33 2.33

3.08 2.95 3.07 2.94 3.07 2.94 3.07 2.94

0.08 0.08 0.08 0.08

01300 Dairy cattle farming 01410 Poultry farming – meat 01420 Poultry farming – eggs Other livestock farming 01510 Pig farming Horse farming and horse 01520 agistment 01530 Deer farming Livestock farming (not 01590 elsewhere classified) 01593 Beekeeping Other crop growing Crop and plant growing (not 01690 elsewhere classified) 01692 Cultivated mushroom growing Services to agriculture 02120 Shearing services Agriculture and fishing support services (not 02190 elsewhere classified) Hunting and trapping 02200 Hunting and trapping Forestry and logging 03010 Forestry 03020 Logging 03021 Forest products - gathering Forestry support services (excluding tree cutting and 03030 felling) Marine fishing Rock lobster and crab fishing 04110 or potting 04120 Prawn fishing Fish trawling, seining, and netting (including processing 04130 on board) Line fishing (including 04150 processing on board) Fishing (not elsewhere 04190 classified) Aquaculture 04210 Aquaculture - offshore 04220 Aquaculture - onshore

2.29 1.20 1.20

3.02 1.59 1.59

2.89 1.51 1.51

0.08 0.08 0.08

1.97

2.60

2.48

0.08

2.59 1.97

3.41 2.60

3.27 2.48

1.97 1.97

2.60 2.60

2.48 2.48

0.08 0.08 0.08

0.08

1.06 1.06

1.42 1.42

1.34 1.34

3.18

4.18

4.01

0.08

2.22

2.93

2.80

0.08

3.30

4.33

4.16

0.08

3.30 3.30 2.21

4.33 4.33 2.92

4.16 4.16 2.79

0.08 0.08 0.08

3.32

4.36

4.19

0.08

2.98 2.95

3.92 3.88

3.76 3.72

0.08 0.08

2.96

3.89

3.73

2.96

3.89

3.73

0.08 0.08

2.96

3.89

3.73

2.21 2.21

2.92 2.92

2.79 2.79

Further details may be obtained from the ACC website – http://www.acc.co.nz/aboutacc/levies/current-years-levy-rates/ 546

0.08

546

0.08

0.08 0.08 0.08

4.16.8 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. The depreciation rate for buildings with an estimated useful life of 50 year or more is 0%. IRD have an excellent on-line Depreciation calculator. (Search on-line â&#x20AC;&#x201C; IRD NZ Depreciation calculator). Industry Categories

Estimated useful life (years)

Agriculture, Horticulture and Aquaculture Agricultural and horticultural machinery (default class) Aeroplanes (top dressing and spraying) and specialised attachments Automated dairy drafting systems (2009/2010 and subsequent years) Automated milking system from 2011/12 income year (PROV) Beekeeping equipment Bush cutters Chainsaws Cherrypickers Cleaning machinery Compressor (refrigerant) Crates (cattle) Crates (pigs) Crates (sheep) Cultivators (rotary) Dairy shed and yard (including pipe work bails, railings and gates) Egg crates Equestrian arena consisting of permanent construction materials excluding the base course (2010/2011and subsequent years) Feeders (forage) Graders (capsicums) Graders (tomatoes) Grading machinery Harness Harvesters Haybalers Hi-trim shelter trimmer (including sub-frame) Hop kilns Irrigation piping (above ground)

547

15.5 10 6.6 10 12.5 5 3 12.5 15.5 12.5 10 10 10 5 33.3 3 12.5 8 8 15.5 5 15.5 12.5 10 15.5 15.5 15.5

DV rate %

DV + 20% loading (%)

SL equiv rate (%)

15.6

8.5

13.5

20 16 40 67 16 13 16 20 20 20 40

n/a 19.2 48 80.4 19.2 15.6 19.2 24 24 24 48

13.5 10.5 30 67 10.5 8.5 10.5 13.5 13.5 13.5 30

6 67

7.2 80.4

4 67

16 16 25 25 13 40 13 16 20 13 13

19.2 19.2 30 30 15.6 48 15.6 19.2 24 15.6 15.6

10.5 10.5 17.5 17.5 8.5 30 8.5 10.5 13.5 8.5 8.5

Industry Categories

Estimated useful life (years)

DV rate %

15.5 10 8 5

Irrigation pumps (above ground) Irrigators (travelling) Isolating transformers Kennels (dogs) Lawnmowers (domestic type used by lawnmowing contractors) Lawnmowers (non-domestic type used by lawnmowing contractors) Milk storage vat/silo Milking plant Mowers (gang and PTO type) Mulchers (commercial) Pig feeding plant 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) Poultry equipment Rifles (greater than 10,000 rounds per year) Rifles (less than 10,000 rounds per year) Rollers Rotary dairy shed milking platforms (turntables) Saddlery Shearing equipment Shellfish nets Shellfish ropes Shellfish stakes Shotguns (greater than 50,000 rounds per year) Shotguns (less than 50,000 rounds per year) Sorting machinery Sprayers (backpack) Sprayers (mobile crop) Sprayers (mobile weed) Spreaders Teat sprayers (automatic) Tools (hand) Tools (power) Tractor drawn implements Tractors (wheeled) Trough covers (plastic) (PROV) Wash down unit Wash down unit (portable) Water heaters Wintering pads (rubber)

548

13 20 25 40

DV + 20% loading (%) 15.6 24 30 48

SL equiv rate (%) 8.5 13.5 17.5 30

100

5 15.5 12.5 12.5 4 8 20

40 13 16 16 50 25 10

48 15.6 19.2 19.2 60 30 12

30 8.5 10.5 10.5 40 17.5 7

5 5 5 12.5 12.5 6.6 2 12.5 25 5 8 4 4 4 6.66 2 15.5 5 12.5 12.5 12.5 6.66 3 3 15.5 15.5 5 10 3 12.5 6.66

40 40 40 16 16 100 30 16 8 40 25 50 50 50 100 30 13 40 16 16 16 30 67 67 13 13 40 20 67 16 30

48 48 48 19.2 19.2 100 36 19.2 9.6 48 30 60 60 60 100 36 15.6 48 19.2 19.2 19.2 36 80.4 80.4 15.6 15.6 48 24 80.4 19.2 36

30 30 30 10.5 10.5 100 21 10.5 6 30 17.5 40 40 40 100 21 8.5 30 10.5 10.5 10.5 21 67 67 8.5 8.5 30 13.5 67 10.5 21

Industry Categories

Woven reflective mulch Dairy Plant Dairy plant and equipment (default class) Blending bins (casein) Butter making machines (except as specified) Butter patting machines Cartoning machines Centrifuges Cheddaring system Cheese maturing boards Cheese plant Churns Clarifiers (whey) Compressor (refrigerant) (on farm) Control equipment Conveyors Conveyors (crates) Cooling equipment Crating machines Dairy plant powder drying plant dry store building, acquired on or after 19 May 2005 for 2011 and subsequent income years (PROV) Decanters Decrating machines Dryers Effluent plant (excluding stainless steel tanks and screens) Electrodialysis plant (whey) Evaporators (MVR type) Evaporators (TVR type) Filling machines (bottle) Flow meters Grinding plant (casein) Heat exchangers Homogenisers Inflatable pipeline plug (PROV) Ion exchangers (whey) Metal detectors Milk storage vat/silo (on farm) Mixers Packing machines (butter) Packing machines (vacuum) Pasteurisers Pipeline crawler (PROV) Pipework

549

Estimated useful life (years)

DV rate % 67

DV + 20% loading (%) 80.4

SL equiv rate (%) 67

3 15.5 15.5 15.5 12.5 15.5 12.5 15.5 6.66 15.5 15.5 15.5 12.5 8 15.5 15.5 15.5 15.5

13 13 13 16 13 16 13 30 13 13 13 16 25 13 13 13 13

15.6 15.6 15.6 19.2 15.6 19.2 15.6 36 15.6 15.6 15.6 19.2 30 15.6 15.6 15.6 15.6

8.5 8.5 8.5 10.5 8.5 10.5 8.5 21 8.5 8.5 8.5 10.5 17.5 8.5 8.5 8.5 8.5

33.3 12.5 15.5 15.5

4.5 16 13 13

n/a 19.2 15.6 15.6

3 10.5 8.5 8.5

16 16 13 10 13 25 13 13 16 67 16 25 13 13 13 20 13 40 13

19.2 19.2 15.6 12 15.6 30 15.6 15.6 19.2 80.4 19.2 30 15.6 15.6 15.6 24 15.6 48 15.6

10.5 10.5 8.5 7 8.5 17.5 8.5 8.5 10.5 67 10.5 17.5 8.5 8.5 8.5 13.5 8.5 30 8.5

12.5 12.5 15.5 20 15.5 8 15.5 15.5 12.5 12.5 3 8 15.5 15.5 10 15.5 15.5 5 15.5

Industry Categories

Estimated useful life (years)

Powder dryer buildings Powder dryer buildings, acquired after 30 July 2009 Powder dryer buildings, acquired on or before 30 July 2009 Presses (butter) Presses (cheese) Refrigeration equipment Retorts Scrape surface heat exchangers Separators Sifting plant (casein) Silos Tempering bins (casein) Ultrafiltration plant Valves Vats Washers (bottles) Washers (boxes) Washers (crates) Fishing (see also "Meat and Fish Processing") Fishing equipment (default class) Alterations (auxiliary) Bins (plastic) Compressors (for refrigeration systems) Craypots Electronic systems Engines Floodlight systems Freezers (blast) Generators (auxillary) Hydraulic systems Icemaking machines Inflatable pipeline plug (PROV) Instrumentation (electronic) Insulation to refrigerated holds Lifejackets Liferafts Nets (fishing) bottom trawl, complete with accessories Nets (fishing) other, complete with accessories Peurulus (baby crayfish) traps Pipeline crawler (PROV) Piping Refrigeration systems

550

DV rate %

15.5

DV + 20% loading (%) 15.6

SL equiv rate (%) 8.5

15.5

n/a

6.5

15.5 15.5 15.5 15.5 25 12.5 12.5 15.5 25 15.5 10 15.5 25 15.5 12.5 12.5

13 13 13 13 8 16 16 13 8 13 20 13 8 13 16 16

15.6 15.6 15.6 15.6 9.6 19.2 19.2 15.6 9.6 15.6 24 15.6 9.6 15.6 19.2 19.2

8.5 8.5 8.5 8.5 6 10.5 10.5 8.5 6 8.5 13.5 8.5 6 8.5 10.5 10.5

20 10 5 10 2 5 12.5 3 10 10 5 10 3 5 15.5 4 8

10 20 40 20 100 40 16 67 20 20 40 20 67 40 13 50 25

12 24 48 24 100 48 19.2 80.4 24 24 48 24 80.4 48 15.6 60 30

7 13.5 30 13.5 100 30 10.5 67 13.5 13.5 30 13.5 67 30 8.5 40 17.5

1 12 1 5 10 10

100 100 100 40 20 20

100 100 100 48 24 24

100 100 100 30 13.5 13.5

Industry Categories

Safety equipment (other) Vessels (fishing, non-steel hulled) Vessels (fishing, steel hulled over 20 m) Vessels (fishing, steel hulled under 20 m) Winches Wire (trawl) Buildings and Structures Buildings (default class) up to and including 2011 income year. Aprons (airports) Barns (drying), acquired after 30 July 2009 Barns (drying), acquired between 1 April 2005 and 30 July 2009 incl Barns, acquired after 30 July 2009 Barns, acquired on or before 30 July 2009 Borewells Bridges (block) Bridges (brick) Bridges (concrete) Bridges (other than block, brick, concrete and stone) Bridges (stone) Buildings (default class) from 2012 and subsequent income years Buildings (portable) acquired between 1 April 2005 and 30 July 2009 incl. Buildings (portable) acquired on or after 31 July 2009) Buildings with prefabricated stressed-skin insulation panels Buildings with reinforced concrete framing up to and including 2011 income year. Buildings with reinforced concrete from 2012 and subsequent income years Buildings with steel or steel and timber framing from 2012 and subsequent income years Buildings with steel or steel and timber framing up to and including 2011 income year. Buildings with timber framing from 2012 and subsequent income years Buildings with timber framing up to and including 2011 income year. Bunkers (concrete) Carparking buildings (from 2012 and subsequent income years)

551

Estimated useful life (years)

DV rate % 50 10 13 10 20 100

DV + 20% loading (%) 60 12 15.6 12 24 100

SL equiv rate (%) 40 7 8.5 7 13.5 100

4 20 15.5 20 10 1

50 50 20

3 4 8.5

n/a 4.8 n/a

2 3 5

20 20 20 20 100 100 100

9.5 8.5 10 10 2 2 2

11.4 n/a 12 12 2.4 2.4 2.4

6.5 5 7 7 1.5 1.5 1.5

100 100

4 2

4.8 2.4

3 1.5

n/a

10.5

12.5

13.5

16.2

33.3

4.5

n/a

50 20

3 10

n/a 12

2 7

n/a

Industry Categories

Estimated useful life (years)

Carparking buildings acquired, or a binding contract entered into for the purchase or construction of the building on or before 30 July 2009 Carparking pads Carparks (building and pads) up to and including 2011 income year. Chemical works, acquired after 30 July 2009 Chemical works, acquired on or before 30 July 2009 Dairy plant powder drying plant dry store buildings, acquired on or after 19 May 2005 Dams (block) Dams (brick) Dams (concrete) Dams (earth with rock core) Dams (earth without rock core) Dams (stone) Driveways Dykes (earth) Equestrian arena consisting of permanent construction materials excluding the base course (2010/2011 and subsequent years) (PROV) 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) 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) Fertiliser works, acquired after 30 July 2009 Fertiliser works, acquired on or before 30 July 2009 Floating piers Fowl houses Grandstands from 2012 and subsequent income years Grandstands up to and including 2011 income year. Hardstandings Hothouses (glass or other excluding PVC) Hothouses (PVC or similar) Lampposts (excluding wooden) Lampposts (wooden) Manholes

552

DV rate %

DV + 20% loading (%)

SL equiv rate (%)

50 50

4 4

n/a 4.8

3 3

50 33.3

4 4.5

4.8 n/a

3 3

33.3

7.2

33.3 100 100 100 100 50 100 50 50

4.5 2 2 2 2 4 2 4 4

n/a 2.4 2.4 2.4 2.4 4.8 2.4 4.8 4.8

3 1.5 1.5 1.5 1.5 3 1.5 3 3

12.5 20

16 10

19.2 12

10.5 7

33.3

n/a

33.3 33.3

4.5 4.5

n/a n/a

3 3

33.3 33.3 20

6 6 8.5

7.2 7.2 n/a

4 4 5

n/a

50 50 20 12.5 25 20 50

3 3 8.5 13.5 8 10 4

n/a n/a n/a 16.2 9.6 12 4.8

2 2 5 8 6 7 3

Industry Categories

Estimated useful life (years)

Marine fender systems (2009/2010 and subsequent years) Memorials Pig houses Portable huts (not buildings) Powder dryer buildings, acquired after 30 July 2009 Powder dryer buildings, acquired between 1 April 2005 and 30 July 2009 Reservoirs (above ground, concrete) Reservoirs (for water, other than concrete or lined earth) Reservoirs (in-ground, concrete) Reservoirs (lined earth) Retaining walls (concrete) Retaining walls (wooden) Roadways Runways (for airports) Saleyards Shade houses (glass or other, excluding PVC) Shade houses (PVC or similar) Signs (road) Signs (street nameplates) Stopbanks (earth) Structures (default class) Swimming pools (in-ground) Tanneries Taxiways (airports) Tiered seating (not part of a building) Towers (for floodlights) Tunnels (block) Tunnels (brick) Tunnels (concrete) Tunnels (stone) Valve chambers and similar Wharf tarmac Wharves (block) Wharves (brick) Wharves (concrete) Wharves (other than block, brick, concrete and stone) Wharves (stone)

553

DV rate %

DV + 20% loading (%)

SL equiv rate (%)

20 50 20 12.5

10 4 8.5 16

12 4.8 n/a 19.2

7 3 5 10.5

15.5

n/a

6.5

15.5 50

13 4

15.6 4.8

8.5 3

33.3 100 50 100 25 50 33.3 33.3 20 12.5 6.66 6.66 50 50 33.3 33.3 50 50 25 100 100 100 100 50 50 100 100 100

6 2 4 2 8 4 6 6 8.5 13.5 30 30 4 4 6 4.5 4 4 8 2 2 2 2 4 4 2 2 2

7.2 2.4 4.8 2.4 9.6 4.8 7.2 7.2 n/a 16.2 36 36 4.8 4.8 7.2 n/a 4.8 4.8 9.6 2.4 2.4 2.4 2.4 4.8 4.8 2.4 2.4 2.4

4 1.5 3 1.5 6 3 4 4 5 8 21 21 3 3 4 3 3 3 6 1.5 1.5 1.5 1.5 3 3 1.5 1.5 1.5

50 100

4 2

4.8 2.4

3 1.5

Industry Categories

Estimated useful life (years)

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 Airships Ambulances Animal-drawn vehicles Baggage conveyor systems Baggage imaging machines Balloons Barges Barriers (electrically operated) Bicycles (pedal) Boat lift storage system (inflatable) Bulkheads (insulated, removable) Buoys Buses (for transporting people, over 12 seats) Cablecars Campervans (including Motorhomes) acquired on or after 1 April 2005 but prior to the 2010/11 income year Campervans acquired during or after the 2010/11 income year Canoes Caravans Chairlifts Child restraints (capsules and car seats) for hire Coaches (for transporting people, over 12 seats) Concrete trucks Containers (insulated, below 8m3) Containers (shipping) Dirigibles Dredges Drilling platforms Dump trucks Ferries Fire boats

554

DV rate %

DV + 20% loading (%)

SL equiv rate (%)

33.3 12.5 12.5 20 15.5 8 12.5 20 10 5 8 4 20 12.5 20

20 15 6 16 16 10 13 25 16 10 20 40 25 50 10 16 10

24 n/a 7.2 19.2 19.2 12 15.6 30 19.2 12 24 48 30 60 12 19.2 12

13.5 10 4 10.5 10.5 7 8.5 17.5 10.5 7 13.5 30 17.5 40 7 10.5 7

13.5

8 10 12.5 20 5 12.5 12.5 5 20 12.5 20 20 15.5 20 25

18 20 16 10 40 16 16 40 10 16 10 10 13 10 8

21.6 24 19.2 12 48 19.2 19.2 48 12 19.2 12 12 15.6 12 9.6

12.5 13.5 10.5 7 30 10.5 10.5 30 7 10.5 7 7 8.5 7 6

Industry Categories

Estimated useful life (years)

Fire engines Fleet tracking unit (PROV) Flight simulators (FTD and FNPT certifiable) aircraft specific (full-motion) Flight simulators (FTD and FNPT certifiable) aircraft specific (non-motion) Flight simulators (FTD and FNPT certifiable) upgradeable/multi aircraft specific (non-motion) Flight simulators (Non-certifiable) (non-motion) Floating docks Forklift trucks (8 tonnes and over used for shortterm hire of 1 month or less only) 2010/11 and subsequent income years. Forklift trucks (8 tonnes and over) Forklift trucks (under 8 tonnes used for short-term hire of 1 month or less only) 2010/11 and subsequent income years. Forklift trucks (under 8 tonnes) Freight cars (rail) Freight cars (tramway) Funicular railways Gliders Gondolas and the like Gyrocopters Hang gliders Helicopters Horse floats Hovercraft Inflatable boats Inflatable rafts Jetboats Jetskis Lifeboats (excluding inflatable) Lifejackets and the like Locomotives (diesel) Locomotives (electric) Locomotives (steam) Maintenance cars (rail) Maintenance cars (tramway) Metal detectors Microlites Military type vehicles Minibuses (up to and including 12 seats) (residual value has been estimated at 25%) Monorail vehicles Mopeds

555

DV rate %

20 6

10 30

DV + 20% loading (%) 12 n/a

SL equiv rate (%) 7 21

15.5

15.6

8.5

17.5

15.5 4 25

13 50 8

15.6 60 9.6

8.5 40 6

8 12.5

25 16

30 19.2

17.5 10.5

6.66 10 25 25 20 12.5 20 3 3 20 20 12.5 8 8 10 5 15.5 4 25 25 25 25 25 8 3 15.5

30 20 8 8 10 16 10 67 67 10 10 16 25 25 20 40 13 50 8 8 8 8 8 25 67 13

36 24 9.6 9.6 12 19.2 12 80.4 80.4 12 12 19.2 30 30 24 48 15.6 60 9.6 9.6 9.6 9.6 9.6 30 80.4 15.6

21 13.5 6 6 7 10.5 7 67 67 7 7 10.5 17.5 17.5 13.5 30 8.5 40 6 6 6 6 6 17.5 67 8.5

5 15.5 6.66

30 13 30

36 15.6 36

21 8.5 21

Industry Categories

Estimated useful life (years)

Motor launches Motor scooters Motor vehicles (for transporting people, up to and including 12 seats and used for short-term hire of 1 month or less only) Motor vehicles (for transporting people, up to and including 12 seats) (residual value has been estimated at 25%) 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) Motor vehicles—class NA (for transporting light goods, gross vehicle mass up to 3.5 tonnes) 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) 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) Motorcycles Motorhomes acquired during or after the 2010/11 income year Outboard motors Pallet covers (insulated) Parachutes Pleasure vessels Radar navigational signalling equipment Radar navigational traffic control equipment Railway jiggers Road signs Roll-on/roll-off vessels Roof racks Rowing boats Rubbish trucks Ship loading and unloading equipment (not elsewhere specified) Ships (bulk carrier) Ships (cargo) Ships (container) Ships (cruise)

556

DV rate %

20 6.66

10 30

DV + 20% loading (%) 12 36

SL equiv rate (%) 7 21

6.6

13.5

12.5

17.5

19.2

10.5

6.6 6.66

20 30

24 36

13.5 21

8 5 2 3 15.5 10 10 20 6.66 20 5 15.5 12.5

18 40 100 67 13 20 20 10 30 10 40 13 16

21.6 48 100 80.4 15.6 24 24 12 36 12 48 15.6 19.2

12.5 30 100 67 8.5 13.5 13.5 7 21 7 30 8.5 10.5

15.5 20 25 20 25

13 10 8 10 8

15.6 12 9.6 12 9.6

8.5 7 6 7 6

Industry Categories

Estimated useful life (years)

Ships (livestock) Ships (refrigerated) Ships (tanker) Sidecars Signs (street nameplates) Small boats Special-purpose vehicles Speed humps (metal) Speed humps (plastic) Speed humps (rubber) Straddle carriers Street furniture (excluding signs) Taxis (up to and including 12 seats) (residual value has been estimated at 25%) Towing tractors Tracklayers Tracks (monorail) Tracks (rail) Traction batteries Traction engines Tractors (farm type) Traffic lights Trailers - domestic (up to 1 tonne) Trailers (domestic, up to 1 tonne used for shortterm 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) 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) 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) 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 Trailers—classes TA and TB (for transporting light goods, gross vehicle mass up to 3.5 tonnes) excluding domestic trailers Tram tracks Tram wires Tricycles (pedal)

557

DV rate %

20 20 20 6.66 6.66 15.5 12.5 5 5 10 15.5 5

10 10 10 30 30 13 16 40 40 20 13 40

DV + 20% loading (%) 12 12 12 36 36 15.6 19.2 48 48 24 15.6 48

SL equiv rate (%) 7 7 7 21 21 8.5 10.5 30 30 13.5 8.5 30

5 15.5 15.5 25 25 5 25 15.5 12.5 15.5

30 13 13 8 8 40 8 13 16 25

36 15.6 15.6 9.6 9.6 48 9.6 15.6 19.2 30

21 8.5 8.5 6 6 30 6 8.5 10.5 17.5

12.5

15.6

8.5

15.5

19.2

10.5

13.5

6.66 20 20 5

13 10 10 40

15.6 12 12 48

8.5 7 7 30

Industry Categories

Estimated useful life (years)

Trolley bus wires Trolley buses Tugs Tyre chains Vehicles, road-going (not elsewhere specified) Vending machines (for tickets) Windsurfers Yachts (international ocean-going) Yachts (other than international ocean-going)

558

20 15.5 25 3 15.5 8 3 6 15.5

558

DV rate % 10 13 8 67 13 25 67 15 13

DV + 20% loading (%) 12 15.6 9.6 80.4 15.6 30 80.4 18 15.6

SL equiv rate (%) 7 8.5 6 67 8.5 17.5 67 10 8.5

4.16.9 â&#x20AC;&#x2DC;Oldâ&#x20AC;&#x2122; Schedule of Rates of Depreciation IRD have an excellent Depreciation calculator both for historical rates and those applying presently. Refer - https://interact.irg.govt.nz/forms/depnrates These rates are applicable from the 1993/94 income year. Note: DV is the Diminishing Value rate. DV+ is the loaded interim rate of 1.25 times the Diminishing Value rate, where applicable. SL is the Straight Line rate (or Cost Price method). SL+ is the loaded interim rate of 1.25 times the Straight Line rate, where applicable. SV denotes Standard Value as agreed by IRD. * denotes the option of replacement value, annual revaluation or standard value. Bold indicates the method to be used for income years 1992-93 and earlier. Agricultural plant and equipment: Tractor drawn implements Self propelled equipment Aircraft: Fixed wing agricultural aerial work aircraft, including wing attachments for spraying, dusting and distributing seed: Helicopters from and including year ended 31 March 1969 - Airframe, engine, rotor system - Spraying tanks and attached spraying mechanism Barns: Simple loafing barns Wintering barns all types of construction Beehives Boats - see Vessels Boilers Bores and wells Bridges: Wooden Others Buildings: Reinforced concrete, steel or reinforced concrete framed with brick walls or permanent materials. Brick, stone or concrete walled without steel or reinforced concrete frame, stucco, steeltex or other similar construction with wooden frame. Wooden framed - not specified elsewhere. Affected by acid fumes - vinegar manufacturers, fertiliser works, bulk fertiliser stores, chemical

559 559

DV+

SL+

10 20

12.5 25

7 13.5

8.5 17.5

41.4

31.3

17.5

33.3

41.7

10 10

15 15 * 10 *

12.5

8.5

3 2.5

4 3

2.5 2

3.1 2.5

2.5 3

2 2.5

DV 6 10 10 10

DV+

SL 4 7 7 7

SL+

works, tanneries. Portable huts â&#x20AC;&#x2DC;Temporary Buildingsâ&#x20AC;&#x2122; Bulk lime spreaders 12.5 8.5 Bulldozers: General 20 25 13.5 17.5 Earthmoving contractors 25 31.3 17.5 22 Cars and Trucks: Rental 25 31.2 17.5 22 Other 20 25 13.5 17.5 Chainsaws 50 62.5 40 51 Cloches * Compressors: Portable 15 18.8 10 13 Fixed 10 12.5 7 8.5 Computers 20 25 13.5 17.5 Concrete mixers 15 18.8 10 13 Effluent Disposal units on farms 10 12.5 7 8.5 or Development expenditure Electric test equipment 20 25 13.5 17.5 Electronic scales 20 25 13.5 17.5 Ensilage pits - concrete walls with sliding roof 10 12.5 7 8.5 Feeding out units for cattle - all types of construction 6 7 4 5 Fences: Electric 10 12.5 7 8.5 Others Maintenance Fire fighting plant and equipment: Reservoir 1 2 1 1.3 Ring main and hydrants 1 2 1 1.3 Breathing apparatus, hoses, pipelines, pumps and diesel engines 10 12.5 7 8.5 Axes, ladders, blankets and fire extinguishers costing less than $100 each * Fish processing buildings 6 4 Fish processing plant 15 18.8 10 13 Fishing boats and gear - see Vessels Fork lifts 20 25 13.5 17.5 Freezers and cookers for preparation and storage of dog meat 10 12.5 7 8.5 Fowl houses - see poultry Frost protection plant - pumping unit, sprinklers, 10 12.5 7 8.5 standards and pipelines or partly claim as Development exp. Fuel tanks: Underground rate as for buildings Gas cylinder containers S.V. Gas water heaters 10 12.5 7 8.5

560

DV Glasshouses: Wooden framed Metal framed PVC tunnel houses Grain drying and storage bins Grain drying plant Grain - portable silos - see silos Hay balers Header harvesters Heating systems Helicopters - see aircraft Hop frames Hop kilns Incinerators Land Improvements - see Section 4.15.3. Lawnmowers: Motor driven Others Lime spreaders bulk Livestock saleyards - see saleyards Loose tools - no single item to exceed $250 in cost Milking sheds - all types: Built before 1 April 1966 Built after 1 April 1966 Cost of converting to herringbone design after 1 April 1966 Rotary Herringbone Motor vehicles, trucks and scooters Office equipment and machines Pallets Pig houses - all types Pipelines Plant and machinery - except as elsewhere specified: General including agricultural plant and implements but not motor vehicles Plastic pots for tomato growing Poultry: Battery type cages Colony houses with wooden frames, iron roofs and netting sides and bases Fowl houses-steel framed -wooden framed Saddlery and harnesses Saleyards: Constructed after 1 April 1971 Constructed prior to April 1971 - less than 40 years old. - 40 years or more

561

DV+

SL+

7 4 11 5 10

6.3 12.5

5 3 7.5 3.5 7

4 8.5

20 20 10

25 25 12.5

13.5 13.5 7

17.5 17.5 8.5

* 15 15

18.8 18.8

10 10

13 13

20 10 10

25 12.5 12.5

13.5 7 7

17.5 8.5 8.5

4 10

6 15 15 10 20 20 * 15

12.5 25 25

10 7 13.5 13.5

maintenance

8.5 17.5 17.5

10 S.V.

12.5

8.5

12.5

8.5

10 3 7 *

12.5

7 2.5 5

8.5

2.5

Spread over remaining years (assumed life of 50 years) 15 10

DV Additions: - if part of an existing yard - if virtually a new yard Saws - chain Sawmillers- diesel or petrol tractors, locomotives and power units used for log hauling Scales and weighing machines - mechanical - electronic Septic tanks and sewerage systems Sheep and cattle yards: Uncovered yards Roofed yards Gratings - fixed - loose Sheep crates Sheep and cattle dips: Shower type - tanks and pipes - dip or shower (including pumps) - electric motor and fitting Spray type - Shed - Base (race, floor of dip, two draining pens and sump) - tanks and pipes, dip including pumps, electric motor and fittings Silage storage bunkers Silos - Grain: - with built in drying and loading/unloading machinery - With separate drying, loading/unloading machinery - if erected on farms - portable Slaughterhouse on farms: Concrete Timber and concrete Timber Spray plant - orchardists: Self propelled and air blast units Others

DV+

13.5

17.5

10 12.5 7 20 25 13.5 As for buildings

8.5 17.5

See saleyards Appropriate building rate Appropriate building rate * 15 18.8 10 13 10 10 10

12.5 12.5 12.5

7 7 7

8.5 8.5 8.5

Appropriate Building rate Dev. expenditure 10 12.5 7 8.5 Development expenditure and maintenance 10

12.5

8.5

5 6.3 3.5 4 10 12.5 7 8.5 Cost of replacement or scrapping if abandoned

20 10

562

SL+

Spread over remaining life 2.5 3 2 2.5 50 62.5 40 51

5 6 10

7 8 15

562

25 12.5

13.5 7

17.5 8.5

DV SL DV DV+ DV+ SL SL+ SL+ 15 18.8 10 13 15 18.8 10 13 Appropriate building rate Appropriate building rate ** 20 25 17.5 20 25 13.5 13.5 17.5

Stock Stock food food manufacturing manufacturing plant plant Storage tanks underground Storage tanks - underground Tarpaulins Tarpaulins Threshing Threshing plant plant Tomatoes: Tomatoes: Plastic Plastic pots pots for for growing growing Structure for shading Structure for shading Tools Tools Traction Traction engines engines Tractors Tractors Trailers Trailers

S.V. S.V. 2.5 33 22 2.5 2.5 2.5 See Section 4.8.4 See Section 4.8.4 10 12.5 77 8.5 10 12.5 8.5 20 25 13.5 13.5 17.5 17.5 20 25 Rate applicable to Rate applicable to vehicle by by which which drawn drawn vehicle 25 31.3 17.5 22 25 31.3 17.5 22

Trickle irrigation irrigation equipment equipment in in glasshouses glasshouses Trickle Trucks -- see see motor motor trucks trucks Trucks Tunnel houses houses P.V.C. P.V.C. Tunnel Underground silage pits -- concrete concrete walled walled Underground silage pits with sliding sliding roof roof with Vessels (Registered for fishing): fishing): Vessels (Registered for Hulls including including fixed fixed gear gear and and -- Hulls refrigeration rooms refrigeration rooms -- Deck Deck machinery, machinery, winches, winches, and and motors motors Main engines engines -- Main Wagons, carts and drays drays Wagons, carts and Water towers towers Water Weighing machines and and scales scales Weighing machines Wells and and water water bores bores ** Wells Windmills Windmills Wine making making industry: industry: Wine Tanks and and vats vats Tanks -- stainless stainless steel steel Wooden -- Wooden Concrete: -- Concrete: for fermentation. for fermentation. for storage storage for Casks and barrels barrels Casks and both circulating circulating or or storage storage -- both Wintering barns barns -- all all types types of of construction construction Wintering Wire ropes Wire ropes

7.5 7.5

11 11 10 10

12.5 12.5

8.5 8.5

10 12.5 8.5 10 12.5 77 8.5 15 18.8 10 13 15 18.8 10 13 20 25 13.5 13.5 7.5 20 25 7.5 10 12.5 7 8.5 10 12.5 7 8.5 Appropriate building building rate rate Appropriate 10 12.5 7 8.5 10 12.5 7 8.5

563

563 563

10 10

12.5 12.5

8.5 8.5

10 10 10 10

12.5 12.5 12.5 12.5

77 77

8.5 8.5 8.5 8.5

10 10 66

12.5 12.5 77

77 44

8.5 8.5 55

S.V. S.V. 15 15 **

18 18

10 10

12.5 12.5

4.16.10 Working for Families Tax Credits 2019 (1 April 2018 to 30 June 2018) (Weekly payments) The table below gives estimates for each type of payment from 1 April 2018. Family tax credit (FTC) is paid regardless of your source of income. In-work tax credit (IWTC) is an additional payment for families who normally work a minimum number of hours each week for salary and wages. The amounts are based on your eldest child being aged 15 years or under and all other children being aged 12 years or under. If you have older children, you may be able to earn more and still be eligible. However, if you are receiving a Foster Care Allowance or an Orphanâ&#x20AC;&#x2122;s or Unsupported Childâ&#x20AC;&#x2122;s Benefit, the amounts listed in the table below will not apply to you. Please call Inland Revenue on 0800 227 773 to gain an accurate calculation of your entitlement. Family income (Before tax) Weekly $ Annual $ 0 to 699 0 to 36350 700 to 731 36351 to 38000 732 to 760 38001 to 39500 761 to 788 39501 to 41000 789 to 817 41001 to 42500 818 to 846 42501 to 44000 847 to 875 44001 to 45500 876 to 904 45501 to 47000 905 to 933 47001 to 48500 934 to 962 48501 to 50000 963 to 990 50001 to 51500 991 to 1019 51501 to 53000 1020 to 53001 to 54500 1048 1049 to 54501 to 56000 1077 1078 to 56001 to 57500 1106 1107 to 57501 to 59000 1135 1136 to 59001 to 60500 1163 1164 to 60501 to 62000 1192 1193 to 62001 to 63500 1221 1222 to 63501 to 65000 1250 1251 to 65001 to 66500 1279 1280 to 66501 to 68000 1308

ONE

Number of children THREE FOUR

TWO

FIVE

SIX

FTC IWTC FTC IWTC FTC IWTC FTC IWTC FTC IWTC FTC IWTC $ $ $ $ $ $ $ $ $ $ $ $ 92 85 79 72 66 59 53 46 40 33 27 20

72 72 72 72 72 72 72 72 72 72 72 72

157 150 143 137 130 124 117 111 104 98 91 85

72 72 72 72 72 72 72 72 72 72 72 72

221 214 207 201 195 188 182 175 169 162 156 149

72 72 72 72 72 72 72 72 72 72 72 72

286 278 272 265 259 252 246 239 233 226 220 214

87 87 87 87 87 87 87 87 87 87 87 87

350 343 336 330 323 317 310 304 297 291 284 278

102 102 102 102 102 102 102 102 102 102 102 102

414 407 401 394 388 381 375 368 362 355 349 342

117 117 117 117 117 117 117 117 117 117 117 117

143

207

271

102

336

117

136

201

265

102

329

117

130

194

258

102

323

117

123

188

252

102

316

117

181

246

102

310

117

110

175

239

102

303

117

104

168

233

102

297

117

162

226

102

290

117

155

220

102

284

117

149

213

102

277

117

564 564

Family income (Before tax) Weekly $ 1309 to 1337 1338 to 1365 1366 to 1394 1395 to 1423 1424 to 1452 1453 to 1481 1482 to 1510 1511 to 1538 1539 to 1567 1568 to 1596 1597 to 1625 1626 to 1654 1655 to 1683 1684 to 1712 1713 to 1740 1741 to 1769 1770 to 1798 1799 to 1827 1828 to 1856 1857 to 1885 1886 to 1913 1914 to 1942 1943 to 1971 1972 to 2000 2001 to 2029

Annual $

ONE

Number of children THREE FOUR

TWO

FIVE

SIX

FTC IWTC FTC IWTC FTC IWTC FTC IWTC FTC IWTC FTC IWTC $ $ $ $ $ $ $ $ $ $ $ $

68001 to 69500

142

207

102

271

117

69501 to 71000

136

200

102

265

117

71001 to 72500

129

194

102

258

117

72501 to 74000

123

187

102

252

117

74001 to 75500

116

181

102

245

117

75501 to 77000

110

174

102

239

117

77001 to 78500

103

168

102

232

117

78501 to 80000

161

102

226

117

80001 to 81500

155

102

219

117

81501 to 83000

148

102

213

117

83001 to 84500

142

102

206

117

84501 to 86000

135

102

200

117

86001 to 87500

129

102

193

117

87501 to 89000

122

102

187

117

89001 to 90500

116

102

180

117

90501 to 92000

109

102

174

117

92001 to 93500

103

102

167

117

93501 to 95000

102

161

117

95001 to 96500

102

154

117

96501 to 98000

102

148

117

98001 to 99500

102

141

117

102

135

117

102

128

117

102

122

117

102

115

117

99501 to 101000 101001 to 102500 102501 to 104000 104001 to 105500

565

Family income (Before tax) Weekly $ 2030 to 2058 2059 to 2087 2088 to 2115 2116 to 2144 2145 to 2173 2174 to 2202 2203 to 2231 2232 to 2260 2261 to 2288 2289 to 2317

Annual $ 105501 to 107000 107001 to 108500 108501 to 110000 110001 to 111500 111501 to 113000 113001 to 114500 114501 to 116000 116001 to 117500 117501 to 119000 119001 to 120500

ONE

Number of children THREE FOUR

TWO

FIVE

SIX

FTC IWTC FTC IWTC FTC IWTC FTC IWTC FTC IWTC FTC IWTC $ $ $ $ $ $ $ $ $ $ $ $ 0

102

109

117

102

117

102

117

102

117

102

117

102

117

102

117

101

117

The rates on the chart are based on your eldest child being under 16 and all other children being under 13. To work out how much you can expect if you have children older than this you will need to:  if oldest child is over 16: add $9 to FTC (5303/364*7 = 101) therefore difference between 92 and 101 is $9  for each child other than eldest aged 13,14,15 add $9 to FTC (3822/364*7 = 73), therefore diff between 64 and 73 is $9  for any other child 16,17,18 add $27 to FTC (4745/364*7 = 91) therefore difference between 64 and 91 is $27

566

From 1 July 2018 Family Tax Credit changes are shown below:

Eldest Child, 16 – 18 Eldest Child, 0 – 15 Subsequent child, 16 – 18 Subsequent child, 13 – 15 Subsequent child, 0 - 12

1 April 2018

1 July 2018

Annual Amount 18-19

Weekly increase 1 July 2018

$5,303

$5,878

$5,734

$11.06

$4,822

$5,614

$20.31

$4,745

$4,514

$17.75

$4,397

$26.80

$3,822

$4,745

$3,351

The abatement threshold will increase from $36,350 to $42,700, while the abatement rate will increase from 22.5% to 25%, 4.16.11

MINIMUM FAMILY TAX CREDIT (MFTC)

If your family income is below $26,156 a year after tax (or $30,516 before tax), you may also be eligible for the minimum family tax credit. Minimum family tax credit (MFTC) is paid to families earning up to $26,156 or less after tax to ensure a minimum family income of $503 a week after tax. To get this payment, at least one parent must be working for salary or wages for a minimum number of hours each week. FAMILY Weekly $ 0 to 182 182 to 269 270 to 298 299 to 326 327 to 355 356 to 384 385 to 413 414 to 442 443 to 471 472 to 500 501 to 528 529 to 557 558 - 586

INCOME (BEFORE TAX) Annual $ 0 to 9,500 9,501 to 14,000 14,001 to 15,500 15,501 to 17,000 17,001 to 18,500 18,501 to 20,000 20,001 to 21,500 21,501 to 23,000 23,001to 24,500 24,501 to 26,000 26,001 to 27,500 27,501 to 29,000 29,001 to 30,500

567 567

MFTC $ 503 to 339 339 - 262 262 -238 238 - 214 214 to 190 190 - 166 166 - 143 143 - 119 119 - 95 95 - 71 71 - 47 47 – 24 24 - 0

4.16.12

PARENTAL TAX CREDIT (PTC)

This is a payment for ten weeks after a new baby arrives in your family. You can receive up to $2,200 (in total) depending on your family income. FAMILY INCOME (BEFORE TAX) Weekly $ to 1,365 1,366 to 1,394 1,395 to 1,423 1,424 to 1,452 1,453 to 1,481 1,482 to 1,510 1,511 to 1,538 1,539 to 1,567 1,568 to 1,596 1,597 to 1,625 1,626 to 1,654 1,655 to 1,683 1,684 to 1,712 1,713 to 1,740 1,741 to 1,769 1,770 to 1,798 1,799 to 1,827 1,828 to 1,856 1,857 to 1,885 1,886 to 1,913 1,914 to 1,942 1,943 to 1,971 1,972 to 2,000 2,001 to 2,029 2,030 to 2,058 2,059 to 2,087 2,088 to 2,115 2,116 to 2,144 2,145 to 2,173 2,174 to 2,202 2,203 to 2,231 2,232 to 2,260 2,261 to 2,288 2,289 to 2,317

Annual $ to 71,000 71,001 to 72,500 72,501 to 74,000 74,001 to 75,500 75,501 to 77,000 77,001 to 78,500 78,501 to 80,000 80,001 to 81,500 81,501 to 83,000 83,001 to 84,500 84,501 to 86,000 86,001 to 87,500 87,501 to 89,000 89,001 to 90,500 90,501 to 92,000 92,001 to 93,500 93,501 to 95,000 95,001 to 96,500 96,501 to 98,000 98,001 to 99,500 99,501 to 101,000 101,001 to 102,500 102,501 to 104,000 104,001 to 105,500 105,501 to 107,000 107,001 to 108,500 108,501 to 110,000 110,001 to 111,500 111,501 to 113,000 113,001 to 114,500 114,501 to 116,000 116,001 to 117,500 117,501 to 119,000 119,001 to 120,500

NUMBER OF CHILDREN (INCLUDING YOUR NEWBORN) ONE TWO THREE FOUR FIVE SIX PTC $ PTC $ PTC $ PTC $ PTC $ PTC $ 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 198 220 220 220 220 220 164 220 220 220 220 220 130 220 220 220 220 220 97 220 220 220 220 220 63 220 220 220 220 220 29 220 220 220 220 220 0 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 195 220 220 220 220 162 220 220 220 220 128 220 220 220 220 94 220 220 220 220 60 220 220 220 220 27 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 193 220 220 220 159 220 220 220 126 220 220 220 92 220 220 220 58 220 220 220 24 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220

The rates shown assume you have one newborn and are entitled to the in-work tax credit. If your situation is different, please call us on 0800 227 773. Notes • The amounts in the charts are estimates only, and are initial payment amounts which may alter if your circumstances change. If your income is above $120,500 or you have more than six children, go to our online calculator “Estimate your Working for Families

568

Tax Credits” in the “Work it out” section, (search keywords: working for families tax credits), or call us on 0800 227 773. • To see which payment types you are eligible to receive, go to www.ird.govt.nz/wff-taxcredits/entitlement/what-is-wfftc • You can’t receive Working for Families Tax Credits (WfFTC) and the independent earner tax credit (IETC) at the same time. If you currently receive the IETC by using the ME or ME SL tax code and are entitled to WfFTC, you must change your tax code with your employer at the same time as you apply for WfFTC

569

4.16.13

Amortisation Rates for Listed Horticultural Plants 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

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.

(ii) 10% (which does not include the 20% loading); and (c) 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:

2. Reference This Determination is made pursuant to section 91AAB of the Tax Administration Act 1994. 3. 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)

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

4. Interpretation 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.

(d) 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

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.

(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.

5. Determination Pursuant to section 91AAB of the Tax Administration Act 1994: (a) 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

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.

(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

Graham Tubb National Manager (Technical Standards)

570

SCHEDULE TO DETERMINATION DET 05/01 Amortisation rates for listed horticultural plants

DV %*

DV% with 20% loading

Estimated useful life of horticultural plant (%)

Berryfruit Blueberry Blackcurrant

12 18

14.4 21.6

13 8

Rubus Raspberry Blackberry Boysenberry Loganberry Other Rubus

26 15 15 15 15

31.2 18.0 18.0 18.0 18.0

5 10 10 10 10

Citrus Grapefruit Lemon Lime Mandarin Orange Tangelo

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

Grapes Table grapes

7.5

9.0

Nuts Chestnut Hazelnut Walnut

7.5 6 4

9.0 7.2 4.8

20 26 30

Listed horticultural plant

Please note a 20% loading is to be added to the percentage in column 2 to arrive at the total diminishing value amortisation rate available each income year.

571

Listed horticultural plant

DV %*

DV% with 20% loading

Estimated useful life of horticultural plant (%)

Pipfruit Apple European pear Nashi Asian pear

9.5 7.5 9.5

11.4 9.0 11.4

15 20 15

Summerfruit Apricot Cherry Plum Nectarine Peach

9.5 7.5 9.5 12 12

11.4 9.0 11.4 14.4 14.4

15 20 15 12 12

Vegetables Asparagus

26.4

7.5 7.5 15 7.5

9.0 9.0 18.0 9.0

20 18 10 20

7.5

9.0

9.5

11.4

33 6 33

39.6 7.2 39.6

4 25 4

Other Avocado Feijoa Hop Kiwifruit Olives ď&#x201A;ˇ <500 trees per hectare ď&#x201A;ˇ >500 trees per hectare (typically hedges) Passionfruit Persimmon Tamarillo *

Please note a 20% loading is to be added to the percentage in column 2 to arrive at the total diminishing value amortisation rate available each income year.

572

INDEX

A Average market values of livestock .................................................................................531 AB (Artificial Breeding) cost of ........................................................................................................................106 ACC levy - 2018/2019 .......................................................................................................521 levy rates 2018/2019 .................................................................................................522 levy rates employer/employee ..................................................................................545 Access crossings - cost of......................................................................................................................345 Accident Compensation Levy ..................................................................................249, 521 Accountancy fees .............................................................................................................236 Accrual rules for expenditure (taxation) .................................................................................544 Acid detergents, cost of ....................................................................................................113 Adjuvants (spray oil) - cost of ...................................................................................................202 Administration expenses ..................................................................................................241 bank and stock company charges ..............................................................................254 courier charges ..........................................................................................................244 payroll .......................................................................................................................246 postage costs .............................................................................................................243 subscriptions..............................................................................................................246 telephone and internet costs ......................................................................................242 travelling ...................................................................................................................246 Advance payment milksolids ....................................................................................................................25 Adverse event income equalisation scheme .....................................................................................487 Advisory services, charges ...............................................................................................237 Aerators soil - cost of ...............................................................................................................314 Aerial fertiliser spreading fixed wing - cost of ....................................................................168 fertiliser spreading, forestry, cost of .........................................................................353 helicopter spreading of fertiliser - cost of .................................................................168 oversowing, seeding - cost of....................................................................................146 spraying - cost of .......................................................................................................203

573

Agricultural dolomite - cost of ......................................................................................................166 farm employees, wages and salaries ...........................................................................89 industry - ACC levies ................................................................................................545 lime - cost of .............................................................................................................166 lime flour - cost of .....................................................................................................123 salt, cost of ................................................................................................................124 workers - wages / salaries ...........................................................................................89 Agricultural chemicals - cost of......................................................................................................................157 Agricultural Price Review Beef ...........................................................................................................................374 Sheep .........................................................................................................................374 Wool ..........................................................................................................................374 Agriculture Price Review .............................................................................................................374 Agriculture Price Review Apples .......................................................................................................................374 Deer ...........................................................................................................................374 Grains ........................................................................................................................374 Grapes .......................................................................................................................374 Kiwifruit ....................................................................................................................374 AI - cost of, see artificial breeding ...................................................................................106 Air freight rates - cost of ..................................................................................................172 Air seeder precision drills - cost of .............................................................................................318 Alder trees, cost of ...........................................................................................................351 Algaecides - cost of......................................................................................................................200 Alkaline detergents, cost of ..............................................................................................113 Almond trees, cost of .......................................................................................................191 Alpaca fibre prices...................................................................................................................51 livestock values / prices ..............................................................................................51 Alpaca feed, cost of ..........................................................................................................125 Alsike clover, dressing and store handling charges .........................................................213 Amaranthus seed - cost of .............................................................................................................188 seed, cost of ...............................................................................................................185 Amenity trees - cost of......................................................................................................................351 Ammonium fertilisers, cost of .........................................................................................159 Amortisation rates for listed horticultural plants .....................................................................................570 Amortised loans, repayments on ......................................................................................258 Anemone bulbs cost of ........................................................................................................................189 Anemone bulbs, cost of ....................................................................................................189 574

574

Angora Bucks, cost of ..............................................................................................................45 Fibre, price trends .......................................................................................................44 Fibre, sale prices .........................................................................................................44 livestock prices ............................................................................................................45 Angus bull, cost of ...........................................................................................................110 Animal crushes - (cattle) cost of ............................................................................................334 crushes (deer) - cost of ..............................................................................................335 equipment - cost of ....................................................................................................101 feed and nutrition - cost of ........................................................................................120 feeders - cost of .........................................................................................................118 health - cost of .............................................................................................................93 recording data and processing systems - cost of .......................................................361 shelters - cost of ........................................................................................................343 waterers - cost of .......................................................................................................142 Annual certification of dairy sheds - cost of ..........................................................................116 clover seed - cost of ..................................................................................................176 Annual Ryegrass prices paid to producer ................................................................................................64 Anthelmintics cost of .........................................................................................................................94 Antibiotics cost of ..........................................................................................................................98 Antifreeze cost of ........................................................................................................................233 Antirrhinum seed â&#x20AC;&#x201C; cost of .............................................................................................................188 ANZ Agricultural Price Review .........................................................................................374 Apicultural Products prices paid to producers ..............................................................................................81 Apple cider (animal health) - cost of .....................................................................................98 trees - cost of .............................................................................................................190 trees amortisation rates (taxation) .............................................................................572 Apples picking - wage rates ....................................................................................................91 growers - drawings (personal expenditure).................................................................92 packing charges .........................................................................................................216 prices paid to grower - domestic .................................................................................66 prices paid to grower - export .....................................................................................66 transport costs ...........................................................................................................171 Application costs of fertiliser .................................................................................................................166 of sprays ....................................................................................................................203

575

Appreciation of currency impact on farm revenue.................................................................................................3 Apricot levies .........................................................................................................................210 trees - cost of .............................................................................................................190 Apron dairy - cost of ............................................................................................................115 Aquaculture ACC levies ................................................................................................................546 equipment - depreciation ...........................................................................................548 improvements - diminishing value depreciation .......................................................525 Arable farm - administration expenses .................................................................................241 farm - vehicle expenses .............................................................................................225 farm - weed and pest control .....................................................................................195 farms - repairs and maintenance ...............................................................................223 Arable crop levies - cost of ...........................................................................................................208 Arable farms ACC levies ................................................................................................................546 accountancy fees .......................................................................................................236 cost of leasing............................................................................................................251 cultivation costs.................................................................................................145, 226 drawings (personal expenditure) .................................................................................92 soil testing .................................................................................................................169 Arborist contractor charges .....................................................................................................148 Artificial breeding dairy - cost of ............................................................................................................105 Artificial Breeding Bull semen collection, cost of ...................................................................................108 cattle embryo transfers, cost of .................................................................................107 Dairy cows, cost of....................................................................................................106 Deer reproduction, cost of .........................................................................................108 Sheep / Goat reproduction, cost of ............................................................................109 Asparagus levy ............................................................................................................................212 price paid to growers ...................................................................................................79 Asset sale taxation of .................................................................................................................483 Aster seed - cost of .............................................................................................................188 Auction sales in relation to GST ......................................................................................................520 Auger grain - cost of ............................................................................................................319

576

Automatic drench gun - cost of ...................................................................................................101 teat sprayer - cost of ..................................................................................................115 vaccinator - cost of ....................................................................................................101 Average prices for farm equipment ..................................................................................................................296 machinery, implements and plant .............................................................................296 motorbikes .................................................................................................................295 vehicles / tractors ......................................................................................................295 Average values of livestock 2016 income year ......................................................................................................535 2017 income year ......................................................................................................533 Average vintages grapes - 2017 ...............................................................................................................70 grapes 2016 .................................................................................................................70 Avocado fertiliser - cost of .......................................................................................................161 levies .........................................................................................................................212 packing charges .........................................................................................................216 price paid to producers ................................................................................................68 trees - cost of .............................................................................................................190 B Backfat tester - cost of ............................................................................................................141 Backfill gravel, shingle products - cost of ..............................................................................349 Baconers returns from .................................................................................................................48 schedule prices ............................................................................................................48 Bactericides - cost of......................................................................................................................201 Bags planter- cost of ..........................................................................................................193 Bails dairy shed - per bail cost ...........................................................................................328 head - cost of .............................................................................................................334 Balance date and tax payments .......................................................................................................523 Bale clamp - cost of ...........................................................................................................303 fork - cost of ..............................................................................................................303 hay / straw - cost of ...................................................................................................127 hay / straw feeder - cost of ........................................................................................303 stencils (wool) - cost of .............................................................................................133 wrap - cost of.............................................................................................................219 wrappers - cost of ......................................................................................................303

577

Baleage contractor charges .....................................................................................................144 cost of ........................................................................................................................127 Baler conventional - cost of ................................................................................................303 large round - cost of ..................................................................................................302 large square - cost of .................................................................................................302 Balers - depreciation.............................................................................................................547 - depreciation (old schedule) .....................................................................................561 Baling tractor fuel consumption for......................................................................................226 twine - cost of ............................................................................................................303 wrap - cost of.............................................................................................................219 Ball valves cost of ........................................................................................................................269 Banana tree - cost of...............................................................................................................190 Bank financial packages .....................................................................................................254 services ......................................................................................................................254 Barbed wire - cost of......................................................................................................................287 Bark control collars dogs - cost of .....................................................................................141 cost of ........................................................................................................................194 Barley ...............................................................................................................................408 contract price ...............................................................................................................54 dressing charges ........................................................................................................213 drying charges ...........................................................................................................213 feed contract price .......................................................................................................56 malting contract price..................................................................................................54 price paid to growers ...................................................................................................54 prices 1973 to 2018, actual and ...................................................................................55 seed - cost of .............................................................................................................182 seed contract prices paid to growers ...........................................................................55 Barns - cost of......................................................................................................................343 - depreciation.............................................................................................................551 depreciation (old schedule) .......................................................................................559 Battens - cost of......................................................................................................................288 Battery powered energisers - cost of......................................................................................................................292 Beans dressing charges ........................................................................................................213 seed - cost of .............................................................................................................184

578

Bed formers - cost of......................................................................................................................319 Bedding sand - cost of......................................................................................................................349 Beef export schedule ...........................................................................................................15 farm - administration expenses .................................................................................241 farm - drawings (personal expenditure) ......................................................................92 farm - input price trends ..............................................................................................87 farm - repairs and maintenance costs ........................................................................223 farm - vehicle expenses .............................................................................................225 farm - wage rates .........................................................................................................89 farm - weed and pest control .....................................................................................195 farming - ACC levies ................................................................................................545 feed - cost of ..............................................................................................................125 see also Cattle, Bull beef .............................................................................................15 Beef + Lamb levies - cost of ...........................................................................................................206 Beef and Lamb Benchmarking ...........................................................................................................379 portal .........................................................................................................................379 Beef cattle average prices ..............................................................................................................17 breeding stock prices ...................................................................................................17 price trends, export ......................................................................................................15 prices - impact of exchange rates ..................................................................................3 prime stock prices .......................................................................................................16 schedule prices ............................................................................................................15 stock prices / values ....................................................................................................17 TB compensation ........................................................................................................20 Beehives - depreciation (old schedule) .....................................................................................559 Beekeeping ACC levies ................................................................................................................546 equipment - depreciation ...........................................................................................547 Bees - cost of......................................................................................................................221 hive hire- cost of .......................................................................................................220 Bees live price paid to apiculturalists .........................................................................................82 Beeswax price paid to producers ................................................................................................81 Beetroot seed - cost of .............................................................................................................184 Belly crutching rates ........................................................................................................131 Benchmarking ..................................................................................................................379 Bends pipe - cost of ..............................................................................................................269 579

579

Beneficiary (Trusts) income tax .................................................................................................................475 Bentonite cost of ........................................................................................................................123 Berryfruit growers - ACC levies ................................................................................................545 levies .........................................................................................................................210 plants - cost of ...........................................................................................................192 plants amortisation rates (taxation) ...........................................................................571 pollination â&#x20AC;&#x201C; cost of...................................................................................................220 workers wages .............................................................................................................91 Big balers cost of ........................................................................................................................302 Bike farm - see also Motor Bikes ......................................................................................298 Bike trailers - cost of......................................................................................................................299 Bin tipper cost of ........................................................................................................................309 Binder twine cost of ........................................................................................................................303 Bio-blend cost of ........................................................................................................................194 Bird netting - cost of .........................................................................................................218 repellent - cost of.......................................................................................................201 scarer - cost of ...........................................................................................................218 Bird netting deductibility of (taxation)..........................................................................................500 Bird proof meal bar cost of ........................................................................................................................118 Biscuits dog - cost of...............................................................................................................124 Blackberry plants - cost of ...........................................................................................................192 Blackcurrant plants - cost of ...........................................................................................................192 pollination â&#x20AC;&#x201C; cost of...................................................................................................220 workers wages .............................................................................................................91 Blackcurrants levies .........................................................................................................................210 Bloat control - cost of ...........................................................................................................96 dispenser - cost of .....................................................................................................102 knife - cost of ............................................................................................................101 Block salt lick - cost of ........................................................................................................124

580

Blood meal cost of ........................................................................................................................126 Bloodstock taxation of .................................................................................................................495 Blowers - cost of......................................................................................................................321 Blowfly treatment - cost of .......................................................................................................97 Bluebells bulbs cost of ........................................................................................................................189 Blueberries plants - cost of ...........................................................................................................192 Blueberry levies .........................................................................................................................210 workers wages .............................................................................................................91 Board and lodging as taxable income ......................................................................................................478 Bobby calf prices 2011 to 2015 .....................................................................................................36 prices 2016 to 2017 .....................................................................................................35 yard fees - cost of ......................................................................................................204 Boer goats cost of .........................................................................................................................46 Bolus - copper cost of ..........................................................................................................................98 Boom sprayer cost of ........................................................................................................................305 Boot safety - cost of ...........................................................................................................218 Boots cost of ........................................................................................................................217 Borderdyke scheme charges .........................................................................................................277 Bores and wells - depreciation.............................................................................................................551 - depreciation (old schedule) .....................................................................................559 Boron fertiliser cost of ........................................................................................................................158 Bottle (lamb) - cost of......................................................................................................................142 Bottle feeder (calves) cost of ........................................................................................................................118 Bovine TB levies - cost of ...........................................................................................................206 Boysenberry levies- cost of ............................................................................................................210 plants - cost of ...........................................................................................................192 workers wages .............................................................................................................91 581

581

Brands (tattoos) cost of ........................................................................................................................138 Brassica fertiliser - cost of .......................................................................................................161 levy ............................................................................................................................212 pollination â&#x20AC;&#x201C; cost of...................................................................................................220 Brassica seed price paid to grower ....................................................................................................65 Breeding cow expenses ....................................................................................................................105 fees (A.I.) ..................................................................................................................106 stock prices - beef cattle ..............................................................................................18 stock prices - dairy cattle ............................................................................................33 Breeding cow see also Beef Cattle ...........................................................................................................................17 Bridge crossings (systems) - cost of......................................................................................................................345 Bridges - cost of......................................................................................................................345 - depreciation.............................................................................................................551 - depreciation (old schedule) .....................................................................................559 Bridles cost of ........................................................................................................................142 Broad bean seed (process crop) - cost of......................................................................................182 Broadband internet charges ..............................................................................................242 Broccoli seed - cost of .............................................................................................................184 Brodaiea bulbs cost of ........................................................................................................................189 Brokers charges (wool) ....................................................................................................205 Bromus price paid to producers ................................................................................................64 seed - cost of .............................................................................................................178 Broodmare formula (feed) - cost of......................................................................................................................125 Broom woolshed - cost of .....................................................................................................133 Browntop dressing and store handling charges .........................................................................213 price paid to grower ....................................................................................................64 seed - cost of .............................................................................................................183 Brushcutters - cost of......................................................................................................................323 Brushweed spraying - cost of......................................................................................................................203

582

Bucket cost of ........................................................................................................................120 Bucket (front end loaders) cost of ........................................................................................................................309 Bucket (telehandlers) cost of ........................................................................................................................309 Bucks value / cost of ..............................................................................................................45 Budget Cash flow ..................................................................................................................393 DairyNZ Templates...................................................................................................374 Budget tools DairyNZ ....................................................................................................................375 Budgeting software (feed / cash) cost of ........................................................................................................................362 Builders mix (concrete aggregate) cost of ........................................................................................................................350 Building consent charges .........................................................................................................328 dairy sheds - cost of ..................................................................................................328 insurance of ...............................................................................................................247 materials - cost of ......................................................................................................349 research authority levy ..............................................................................................328 Buildings - depreciation.............................................................................................................551 - depreciation (old schedule) .....................................................................................559 depreciation allowance - tax .....................................................................................547 houses / cottages / garages - cost of ..........................................................................343 implement sheds / haybarns / shelter - cost of ..........................................................343 Bulbs Anemone, cost of ......................................................................................................189 cost of ........................................................................................................................189 Bulk wool measurement ....................................................................................................134 Bulk, bees price paid for ...............................................................................................................82 Bull evaluation - cost of ....................................................................................................108 halters - cost of ..........................................................................................................140 prodders - cost of.......................................................................................................141 rings - cost of.............................................................................................................140 semen collection - cost of..........................................................................................108 Bull beef schedule price - export ................................................................................................15 Bullbars (motorbike) cost of ........................................................................................................................299 Bulldozer - cost of......................................................................................................................320 583

583

Bulls cost of ........................................................................................................................110 Bumble bees cost of ........................................................................................................................221 Bush cutter - depreciation.............................................................................................................547 Butter beans seed - cost of .............................................................................................................186 Buttercup squash (kabocha) levy ............................................................................................................................212 Button hole (crutching) rates ...........................................................................................131 C Cabbage pollination â&#x20AC;&#x201C; cost of...................................................................................................220 seed - cost of .............................................................................................................184 Cable heating (greenhouse) - cost of ...................................................................................340 Cable logging (forestry) - cost of......................................................................................................................354 Calcium ammonium nitrate- cost of ........................................................................................161 chloride supplement - cost of ............................................................................120, 123 nitrate - cost of ..........................................................................................................159 Calf chains - cost of ..........................................................................................................140 covers - cost of ..........................................................................................................140 feed - cost of ..............................................................................................................124 feeding equipment, cost of ........................................................................................118 milk supplement - cost of ..........................................................................................120 pullers - cost of ..........................................................................................................140 Calf rearing cost of ........................................................................................................................117 Calf shelters - cost of......................................................................................................................343 Calf, bobby prices ...........................................................................................................................34 Calf, heifer (dairy) prices ...........................................................................................................................33 Calf-rearing milk tanker, cost of....................................................................................................119 Calving aids - cost of ..............................................................................................................140 chains - cost of ..........................................................................................................140 straps/ ropes - cost of ................................................................................................140 Camelids fibre prices...................................................................................................................51 livestock prices ............................................................................................................51

584

Campanula seed - cost of .............................................................................................................188 Capacity charge ................................................................................................................406 Capital gains (Brightline test) exemption from income tax ............................................................446 exemption from tax ...................................................................................................467 taxation ......................................................................................................................466 Capsicum price paid to grower ....................................................................................................77 seed- cost of ..............................................................................................................184 Captive bolt slaughter device - cost of ..........................................................................................140 Car - depreciation.............................................................................................................556 - depreciation (old schedule) .....................................................................................561 insurance - cost of .....................................................................................................229 licencing fee - cost of ................................................................................................229 licensing fees - cost of ...............................................................................................234 operating cost (total) .................................................................................................229 repairs and maintenance ............................................................................................229 Car running costs electric car .................................................................................................................232 Carrot ...............................................................................................................................422 pollination - cost of ...................................................................................................220 seed - cost of .............................................................................................................184 Carrots price paid to growers ...................................................................................................80 Cartage transport rates ............................................................................................................171 Cash flow Budget .......................................................................................................................393 Cash Manager Rural.........................................................................................................371 Castration equipment - cost of ....................................................................................................137 Castration ring applicator, cost of ......................................................................................................137 Casual workers wages (horticultural) taxation of .................................................................................................................449 Cattle average prices or stock 2010 to 2018f ........................................................................17 beef breeding prime stock prices ................................................................................16 beef breeding stock prices ...........................................................................................17 Beef schedule ..............................................................................................................15 bull beef schedule........................................................................................................15 commission on sale of ...............................................................................................204 cow beef schedule .......................................................................................................15 crates - depreciation ..................................................................................................547 crush - cost of ............................................................................................................334 585

585

see also Beef................................................................................................................15 dairy - live heifer export..............................................................................................37 dairy stock - prices ......................................................................................................33 deterrent - cost of ......................................................................................................289 farming - ACC levies ................................................................................................545 headbails - cost of .....................................................................................................334 national standard cost (taxation) .......................................................................492, 528 prime cattle prices (local market) ...............................................................................16 sale prices ....................................................................................................................17 stops - cost of ............................................................................................................289 store and breeding stock ..............................................................................................17 TB compensation ........................................................................................................20 yard fees - cost of ......................................................................................................204 yards - cost of ............................................................................................................333 yards - depreciation (old schedule) ...........................................................................562 Cattle endectocides cost of ..........................................................................................................................95 Cauliflower price paid to growers ...................................................................................................79 seed - cost of .............................................................................................................184 Cement - cost of......................................................................................................................349 Central Plains Water ........................................................................................................404 Centre pivots - cost of......................................................................................................................274 Centrifugal pumps - cost of......................................................................................................................264 Cereal levy ............................................................................................................................208 Cereals seed - cost of .............................................................................................................182 Certificate of Exemption (taxation) .................................................................................451 Certification of dairy sheds - annual cost ..........................................................................................116 Chainsaw chaps - cost of ...........................................................................................................217 trousers - cost of ........................................................................................................217 Chainsaws - cost of......................................................................................................................322 - depreciation.............................................................................................................547 - depreciation (old schedule) .....................................................................................560 Chaps (chainsaw) - cost of......................................................................................................................217 Charolais bull, cost of ......................................................................................................110 Cherry levies .........................................................................................................................210 trees - cost of .............................................................................................................190

586

Chevon prices ...........................................................................................................................43 Chicory seed - cost of .............................................................................................................179 seed, price paid to producers .......................................................................................65 Child taxpayer ..................................................................................................................468 Chopper fodder beet - cost of ..................................................................................................305 Choppers (pigs) price of ..................................................................................................................48, 50 Cider vinegar (feed supplement) - cost of........................................................................................122 Citrus levies .........................................................................................................................210 trees - cost of .............................................................................................................190 trees amortisation rates (taxation) .............................................................................571 Civil penalties taxation ......................................................................................................................462 Classification of income for trusts........................................................................................................475 trusts ..........................................................................................................................475 Classing charges (goat fibre ) ..........................................................................................205 Classing charges (wool) ...................................................................................................205 Cleaning machinery - depreciation.............................................................................................................547 Clearing sales commission payable ..................................................................................................204 Cloth shelter / windbreak / shade / weed - cost of ..............................................................355 Clover pollination - cost of ...................................................................................................220 seed varieties - cost of ...............................................................................................176 seed, price paid to grower ...........................................................................................64 Cobalt injection - cost of.........................................................................................................98 trace element supplement (stock water) - cost of......................................................122 Cocksfoot dressing and store handling charges .........................................................................213 seed - cost of .............................................................................................................178 seed, price paid to grower ...........................................................................................64 Colostrometer cost of ........................................................................................................................119 Colostrum keeper cost of ........................................................................................................................122 Combine harvester - cost of......................................................................................................................319 - licensing fee - cost of ..............................................................................................235 - running costs ...........................................................................................................235 587

587

Commission stock sales and plant ..................................................................................................204 Companies taxation of .................................................................................................................471 taxation rates .............................................................................................................524 Company re-purchase of shares (taxation) ................................................................................473 Comparison costs irrigation methods per ha ..........................................................................................261 Compensation beef cattle ....................................................................................................................20 deer (TB) .....................................................................................................................41 Compost - cost of......................................................................................................................194 Computer hardware prices .........................................................................................................359 software - depreciation ..............................................................................................484 software prices ..........................................................................................................361 Concentrates feeds - cost of ............................................................................................................124 Concrete aggregate (builders mix) cost of ........................................................................................................................350 Consent water / permits - cost of.............................................................................................273 Consolidated dressing and store handling charges ..........................................................213 Consultancy charges, farm advisory services ..................................................................237 Consumable aids as tax deductions - valuation of ................................................................................489 Consumer price index ........................................................................................................88 1891 to 2018..............................................................................................................364 Containers (insulated) - depreciation.............................................................................................................554 Containment systems (dogs) - cost of......................................................................................................................141 Contract barley prices ................................................................................................................54 fencing - cost of.........................................................................................................284 oat prices .....................................................................................................................57 wheat prices.................................................................................................................52 Controllers (greenhouse) - cost of......................................................................................................................340 Cool storage charges ..........................................................................................................216 Copper trace element supplement (stock water) - cost of......................................................122 Copper capsules cost of ..........................................................................................................................98 Cost of table mortgages....................................................................................................258 588

588

Council rates - cost of .............................................................................................................249 Courier charges ................................................................................................................244 Cover hay / silage - cost of ..................................................................................................219 Covered yards - depreciation (old schedule) .....................................................................................562 Covers (horse) - cost of......................................................................................................................142 Cow beef price trends ..........................................................................................................15 lifter - cost of .............................................................................................................139 prices - prime stock .....................................................................................................16 prices - store and breeding stock .................................................................................17 Cow beef see also Beef or Cattle .................................................................................................15 Cows pregnancy diagnosis - cost of ....................................................................................147 Cranberry plants - cost of ...........................................................................................................192 Crate (fruit) - cost of (hire) ............................................................................................................215 Crates stock (ATV /motorbike) - cost of..............................................................................299 Crayfish traps - depreciation ....................................................................................................550 Criminal penalties taxation ......................................................................................................................463 Crocus bulbs cost of ........................................................................................................................189 Crop protection bird netting - cost of ..................................................................................................218 frost cloth - cost of ....................................................................................................218 frost fans - cost of......................................................................................................218 micronet - cost of ......................................................................................................218 scarecrow gun, cost of ...............................................................................................218 Crop storage thermometer - cost of ................................................................................................324 Crossbred wool prices ..................................................................................................................12 Crown land lease ..............................................................................................................253 Crush cattle - cost of ............................................................................................................334 deer - cost of ..............................................................................................................335 Cucumber seed - cost of .............................................................................................................184 Cull cow paint - cost of......................................................................................................................138 589

589

Cultivation tractor fuel consumption for......................................................................................226 Cultivation / drilling contractor charges .....................................................................................................145 Cultivation implements - cost of......................................................................................................................314 Cultivators - cost of......................................................................................................................314 - depreciation.............................................................................................................547 Culvert crossing systems - cost of..........................................................................................345 pipe - cost of ..............................................................................................................280 Currency Exchange rates to NZ Dollar - monthly 2017/2018 ......................................................4 Cyprus trees - cost of .............................................................................................................351 D Dagging sheep - contractor charges .........................................................................................147 Dairy beef weaner, prices ......................................................................................................38 calves for rearing, prices .............................................................................................34 cattle - milk payments .................................................................................................29 cattle - national standard cost (taxation) ...........................................................490, 528 cattle - valuation of for taxation ................................................................................531 cattle - values ..............................................................................................................33 cattle, TB compensation ..............................................................................................20 company shares - cost of ...........................................................................................207 cattle - sale prices ........................................................................................................33 employees - wages / salaries .......................................................................................89 farm - ACC levies .....................................................................................................545 farm - administration expenses .................................................................................241 farm - repairs and maintenance .................................................................................223 farm - vehicle expenses .............................................................................................225 farm - weed and pest control .....................................................................................195 farm drawings (personal expenditure) ........................................................................92 farm expenditure in relation to taxation ....................................................................477 farm land lease costs .................................................................................................252 grazing fees ...............................................................................................................129 heifers - cost of ............................................................................................................33 heifers live export........................................................................................................37 plant and equipment - depreciation ...........................................................................549 produce - milk solids (milkfat) price ..........................................................................23 produce - milk solids (milkfat) price trends ................................................................29 shed - expenses..........................................................................................................113 shed - herringbone cost of .........................................................................................328 shed - rotary cost of ...................................................................................................329 shed - wash down pumps - cost of ............................................................................116 590

590

shed and yard - depreciation .....................................................................................547 shed building costs ....................................................................................................328 shed effluent disposal system - cost of .....................................................................282 sheds - depreciation (old schedule) ...........................................................................561 workwear - cost of.....................................................................................................115 Dairy Company Open Country Dairy ..................................................................................................374 Synlait .......................................................................................................................374 Tatua..........................................................................................................................374 Westland....................................................................................................................374 Dairy shed annual certification costs ...........................................................................................116 Dairy shed Dairy shed expenses disposable overboot...................................................................................................114 Dairy shed equipment cost of ........................................................................................................................114 DairyNZ budget tools ...............................................................................................................375 software .....................................................................................................................372 Dam liners - cost of......................................................................................................................268 Dams - depreciation.............................................................................................................552 Debudders contracting charge .......................................................................................................99 Deductions land development (tax)..............................................................................................481 Deer commission on sale of ...............................................................................................204 crush - cost of ............................................................................................................335 develveting cost...........................................................................................................99 embryo transfer - cost of ...........................................................................................108 farm - administration expenses .................................................................................241 farm - vehicle expenses .............................................................................................225 farmers - ACC levies.................................................................................................546 farms - repairs and maintenance ...............................................................................223 feed - cost of ..............................................................................................................125 live sales ......................................................................................................................40 livestock prices / value ................................................................................................40 national standard cost (taxation) .......................................................................490, 528 netting fence - contractor charges .............................................................................287 pregnancy diagnosis - cost of ....................................................................................147 pregnancy testing ......................................................................................................109 red, live sales ...............................................................................................................40 sale prices ....................................................................................................................40 schedule price ..............................................................................................................39 sheds - cost of ............................................................................................................332 stag - prices of .............................................................................................................40 591

591

stag - red, prices of ......................................................................................................40 stags - cost of.............................................................................................................111 stockyards - cost of ...................................................................................................335 TB compensation ........................................................................................................41 valuation of for taxation ....................................................................................489, 528 velvet - price trends .....................................................................................................41 velvet prices ................................................................................................................41 venison - price paid to producer ..................................................................................39 venison price trends ....................................................................................................39 venison schedule .........................................................................................................39 veterinary charges (develveting) .................................................................................99 wapiti - livestock sales ................................................................................................41 wapiti stag, prices of ...................................................................................................41 weaner prices...............................................................................................................40 yard fees - cost of ......................................................................................................204 Deer Industry levies - cost of ...........................................................................................................207 Dehorning cost of ..........................................................................................................................99 Dehorning devices cost of ........................................................................................................................139 Delphinium seed - cost of .............................................................................................................188 Demerit points milk payment...............................................................................................................29 Depreciation changing between methods of calculating ................................................................483 of assets (tax) ............................................................................................................482 of currency, impact on farm revenue ............................................................................3 pool method...............................................................................................................482 rates ...........................................................................................................................547 special rules ...............................................................................................................484 summary of methods .................................................................................................485 Depreciation calculator ....................................................................................................559 Detergents dairy shed - cost of ....................................................................................................113 Development fish farming allowable deductions ............................................................................503 Development expenditure farming - allowable deductions .................................................................................481 Develveting cost of ..........................................................................................................................99 Dianthus seed - cost of .............................................................................................................188 Diesel - cost of......................................................................................................................233 tanks - cost of ............................................................................................................348

592

Diggers (vegetable) - cost of......................................................................................................................319 Diminishing Value - depreciation of livestock .........................................................................................495 method of depreciation..............................................................................................482 Diminishing Value (DV) rates - depreciation ....................................................................................................547 Dip pour on - cost of ..........................................................................................................97 Dipping (sheep) contractor charges .....................................................................................................147 Direct drilling contractor charges .....................................................................................................145 Directors' fees withholding payments (taxation) ..............................................................................450 Disbudding cost of ..........................................................................................................................99 Discharge permit - cost of......................................................................................................................273 Discing contractor charges .....................................................................................................145 Discs / ploughs - cost of......................................................................................................................314 Disposal effluent system - cost of ............................................................................................282 Disposition of relationship property ................................................................................506 District council rates - cost of .............................................................................................................249 stock and rural domestic water charges ....................................................................272 Dividends taxation of .................................................................................................................467 Docking chute - cost of ............................................................................................................137 cradle - cost of ...........................................................................................................137 Does (goats) sale price .........................................................................................................45 Dog feed - cost of ..............................................................................................................124 kennels - depreciation ...............................................................................................548 kennels / motels - cost of...........................................................................................345 registration - cost of ..................................................................................................104 trainers - cost of.........................................................................................................141 Dog equipment - cost of......................................................................................................................141 Dogstail dressing and store handling charges .........................................................................213 Dolomite - cost of......................................................................................................................166 593

593

Domestic water supply - cost of ..........................................................................................................272 Douglas fir trees - cost of .............................................................................................................351 Drainage subsoiling - cost of ....................................................................................................279 Drench guns - cost of .............................................................................................................101 Drenches cost of ..........................................................................................................................94 Drenching costs for cattle / sheep .................................................................................................94 guns,cost of ...............................................................................................................102 injection gun, cost of .................................................................................................102 sheep - contractor charges .........................................................................................147 Dressing charges seed............................................................................................................................213 Drilling tractor fuel consumption for......................................................................................226 well - cost of ..............................................................................................................268 Drills air seeder/ precision - cost of ....................................................................................318 and seed boxes - cost of ............................................................................................317 Drying charges grain and seed............................................................................................................213 E Ear markers - cost of......................................................................................................................137 Ear tags - cost of......................................................................................................................138 Earmuff - cost of......................................................................................................................217 Earner levy (ACC) ...........................................................................................................521 Echinacea seed - cost of .............................................................................................................188 Effluent disposal system - cost of ...........................................................................................282 disposal system annual operating costs.....................................................................282 equipment - cost of ....................................................................................................266 hydrants - cost of .......................................................................................................267 irrigator / spreader - cost of .......................................................................................267 irrigator draghose - cost of ........................................................................................267 pipe - cost of ..............................................................................................................267 plant - depreciation....................................................................................................549 pond (concrete) - cost of ...........................................................................................283 pontoons - cost of ......................................................................................................266 pumps - cost of ..........................................................................................................266 stirrer - cost of ...........................................................................................................266 594

594

sump - cost of ............................................................................................................266 Eggplant seed - cost of .............................................................................................................184 Electric fence - cost per km ....................................................................................................287 fence gates - cost of ...................................................................................................289 fence wire - cost of ....................................................................................................293 fencing accessories - cost of .....................................................................................294 Electric Car running costs .............................................................................................................232 Electricity cost of ........................................................................................................................149 installation cost .........................................................................................................156 irrigation - cost of ......................................................................................................155 regional charges - examples ......................................................................................150 Embryo freezing / splitting /surgical transfer - cost of ...........................................................107 Embryo transfer (cattle) cost of ........................................................................................................................107 Employers ACC levy...........................................................................................................521, 545 Endectocides - cattle cost of ..........................................................................................................................95 Energisers electric fencing - cost of ............................................................................................292 Enterprise analysis ...........................................................................................................372 Kiwifruit ....................................................................................................................427 Pipfruit ......................................................................................................................430 Vineyard ....................................................................................................................438 Evening Primrose price paid to producers ................................................................................................62 Ewes average purchase prices - breeding stock 2010 to 2018e ............................................10 export schedule .............................................................................................................8 mutton price trends........................................................................................................8 see also Mutton, Sheep, Breeding ewe .........................................................................9 store and breeding stock prices ...................................................................................10 Excel spreadsheets ...........................................................................................................372 Exchange Rate $US to $NZ 1974 to2018 ..............................................................................................4 Impact on product prices ...............................................................................................3 major currencies TWI - monthly 2017/2018 ................................................................4 Exempt income (taxation) ................................................................................................467 Export apples - payments to growers 2014 to 2017 (budget) .................................................66 live dairy heifers..........................................................................................................37

595

F Facial eczema tolerance testing fees (rams).....................................................................100 Family partnerships - taxation of...........................................................................................474 trust- legal fees ..........................................................................................................238 Family Assistance and Support Tax Credits ............................................................469, 564 Fans (greenhouse) ventilation - cost of .............................................................................341 FAR ProductionWise .........................................................................................................372 Farm bikes average prices of ..............................................................................................295 buildings - insurance cost of .....................................................................................247 buildings depreciation allowance - tax .....................................................................482 gate prices, effect of exchange rate changes .................................................................3 insurance - cost of .....................................................................................................247 leasing costs ..............................................................................................................252 mowers, toppers, mulchers - cost of .........................................................................300 software packages - cost of .......................................................................................361 tractors - cost of.........................................................................................................297 truck depreciation ......................................................................................................560 wages / salaries - dairy ................................................................................................89 wages / salaries - sheep and beef ................................................................................89 Farming ACC levies ................................................................................................................545 depreciation of land improvement ............................................................................525 FarmIQ .............................................................................................................................372 FBT (Fringe Benefit Tax) ................................................................................................507 Feed barley - price paid to growers .....................................................................................56 barley - price trends.....................................................................................................56 grains - cost of ...........................................................................................................125 silos - cost of .............................................................................................................347 testing - cost of ..........................................................................................................169 wheat - price paid to growers ......................................................................................53 Feed pads - cost of......................................................................................................................331 Feeders (forage) - depreciation.............................................................................................................547 Fees family trusts...............................................................................................................238 farm consultancy .......................................................................................................237 land transfer...............................................................................................................237 legal ...........................................................................................................................238 professional ...............................................................................................................236 property purchase ......................................................................................................238 real estate...................................................................................................................239 seed testing ................................................................................................................214 596

596

subdivision ................................................................................................................240 surveying ...................................................................................................................240 valuation ....................................................................................................................239 Feijoa levies - cost of ...........................................................................................................212 price paid to producer .................................................................................................69 trees - cost of .............................................................................................................190 Fence crossing components - cost of .................................................................................................275 Fences - depreciation.............................................................................................................552 - depreciation (old schedule) .....................................................................................560 Fencing contractor charges .....................................................................................................284 Contractor charges - Dairy lane ................................................................................287 contractor charges - deer netting ...............................................................................287 contractor pricing ......................................................................................................284 contractor, deer..........................................................................................................287 contractor, sheep .......................................................................................................286 electric - contractor charges .....................................................................................287 electric accessories - cost of ......................................................................................294 electric gates - cost of................................................................................................289 energisers - cost of ....................................................................................................292 equipment - cost of ....................................................................................................290 outriggers - cost of ....................................................................................................293 posts, strainers, battens, stays cost of ........................................................................288 standards - cost of .....................................................................................................288 staples - cost of ..........................................................................................................294 straining equipment - cost of.....................................................................................290 tools - cost of .............................................................................................................290 underground cable - cost of.......................................................................................294 wire netting - cost of .................................................................................................289 Fencing wire - cost of......................................................................................................................287 Fertiliser - cost of......................................................................................................................157 aerial spreading - cost of ...........................................................................................168 and manure spreaders - cost of..................................................................................312 application - contractor charges ................................................................................166 helicopter spreading - cost of ....................................................................................168 horticultural - cost of .................................................................................................162 liquid - cost of ...........................................................................................................162 organic - cost of.........................................................................................................162 phosphorus availability in .........................................................................................165 slow release - cost of .................................................................................................164 trace element additive ratios .....................................................................................165 Fertiliser spreading tractor fuel consumption for......................................................................................226 597

597

Fescue dressing and store handling charges .........................................................................213 price paid to grower ....................................................................................................64 seed - cost of .............................................................................................................183 Fibre diameter testing charges ............................................................................................134 prices - alpacas and llamas ..........................................................................................51 prices - goats ...............................................................................................................44 wool testing charges ..................................................................................................134 Field peas - price trends .......................................................................................................58 peas - prices paid for ...................................................................................................58 Field peas dressing charges ........................................................................................................213 Fig trees - cost of .............................................................................................................190 Film (plastic) greenhouse - cost of .................................................................................................339 Fine wool prices ...........................................................................................................................12 Fire fighting equipment - cost of ......................................................................................217 insurance (forestry) - cost of .....................................................................................354 plastic tanks water reserve - cost of ..........................................................................262 tank fitting kit - cost of ..............................................................................................262 Firefighting equipment - depreciation (old schedule) ...................................................................560 Fish farming ACC levies ................................................................................................................546 buildings - depreciation (old schedule) .....................................................................560 development expenditure (taxation) .................................................................505, 525 plant - depreciation (old schedule) ............................................................................560 taxable income ..........................................................................................................503 Fish meal - cost of......................................................................................................................126 Fishing quotas - tax deductibility ...........................................................................................503 Fishing equipment - depreciation.............................................................................................................550 Fly dip - cost of........................................................................................................................97 Flystrike treatment - cost of........................................................................................................................97 Foaling alarm cost of ........................................................................................................................142 Fodder chopper - cost of ........................................................................................................305

598

Fodder Beet seed - cost of .............................................................................................................182 Fonterra share price .................................................................................................................372 Forage harvesters - cost of ....................................................................................................311 Forage Brassica seed - cost of .............................................................................................................181 Forage cultivars seed - cost of .............................................................................................................179 Forage harvesting tractor fuel consumption for......................................................................................226 Foreign Trusts taxation of .................................................................................................................475 Forest development expenditure ......................................................................................497 Forest growers levy ............................................................................................................................212 Forestry establishment costs ....................................................................................................353 fire insurance - cost of ...............................................................................................354 forecasts ......................................................................................................................83 ladders - cost of .........................................................................................................354 log prices - domestic ...................................................................................................83 log prices - export .......................................................................................................83 logging costs .............................................................................................................354 market outlook ............................................................................................................83 tending / pruning - cost of .........................................................................................353 Forestry Income Equalisation Scheme.............................................................................487 Forklifts - cost of......................................................................................................................309 - depreciation.............................................................................................................555 Fostering oil - cost of......................................................................................................................137 Foundation for Arable Research ..............................................................................372, 404 ProductionWise .........................................................................................................372 Fowl houses - depreciation.............................................................................................................552 - depreciation (old schedule) .....................................................................................561 Freesia bulbs cost of ........................................................................................................................189 Freeze brands - cost of......................................................................................................................138 Freezer peas, price paid for ......................................................................................................59 Freezers (blast) - depreciation.............................................................................................................550 Freezers (dog food) - depreciation (old schedule) .....................................................................................560 599

599

Freezing blast - charges............................................................................................................216 Freight transport rates ............................................................................................................171 Friesian cattle, sale prices .........................................................................................................33 Fringe benefit tax - calculation of.....................................................................................................513 Fringe benefit tax .............................................................................................................507 Fringe Benefits calculation of .............................................................................................................509 definition of ...............................................................................................................507 valuation of ...............................................................................................................508 Fritillaria bulbs cost of ........................................................................................................................189 Frontend loaders - cost of......................................................................................................................309 Frost protection plant - depreciation (old schedule) ..........................................................560 Frost fans - cost of......................................................................................................................218 Frost protection cloth - cost of.............................................................................................................218 frost fans - cost of......................................................................................................218 Fruit prices paid to growers .................................................................................................66 trees - cost of planting, tax rules ...............................................................................499 Fruit bin carriers - cost of......................................................................................................................321 Fuel - cost of......................................................................................................................233 consumption - tractor ................................................................................................226 tanks - depreciation (old schedule) ...........................................................................560 Fumigants (soil) - cost of......................................................................................................................202 Fungicides - cost of......................................................................................................................200 G Garages - cost of......................................................................................................................343 Garden peas dressing charges ........................................................................................................213 price paid for ...............................................................................................................59 Gas cylinder containers - depreciation (old schedule) .....................................................560 water heaters - depreciation (old schedule) ..............................................................560

600

Gates electric fencing - cost of ............................................................................................289 steel - cost of .............................................................................................................289 Generators portable - cost of .......................................................................................................325 Glasses safety - cost of ...........................................................................................................217 Glasshouses - depreciation (old schedule) .....................................................................................561 Gloves (protective) - cost of......................................................................................................................217 Goat pregnancy diagnosis - cost of ....................................................................................147 Goats angora - national standard cost .................................................................................532 artificial breeding - cost of ........................................................................................109 chevon (meat) prices ...................................................................................................43 commission on sale of ...............................................................................................204 fibre - handling and classing charges ........................................................................205 fibre - prices ................................................................................................................44 livestock values / prices ..............................................................................................45 meat prices ..................................................................................................................43 milk prices ...................................................................................................................43 milking - national standard cost (taxation) ...............................................................532 mohair prices ...............................................................................................................44 sale prices ....................................................................................................................45 Goggles safety - cost of ...........................................................................................................217 Gorse control aerial spraying - cost of .............................................................................................203 GPS software, cost of ........................................................................................................362 software, cost of ........................................................................................................222 units, cost of ..............................................................................................................222 Grader blades - cost of ..........................................................................................................320 Grading machinery - depreciation ...........................................................................................547 Grain auger - cost of ............................................................................................................319 drying plant /bins - depreciation (old schedule) .......................................................561 growers - ACC levies ................................................................................................545 silos - cost of .............................................................................................................346 silos - depreciation (old schedule) ............................................................................562 Grain crusher - cost of......................................................................................................................311 Granular applicator - cost of......................................................................................................................311 601

601

Grape vines - cost of ............................................................................................................192 Grapefruit levies .........................................................................................................................210 trees - cost of .............................................................................................................190 Grapes prices for wine production 2017 .................................................................................70 wine - price paid to growers 2017...............................................................................70 Grass seed - price paid to grower ..........................................................................................64 Grass seed dressing and store handling charges .........................................................................213 Gravel backfill - cost of ........................................................................................................349 shingle products - cost of ..........................................................................................349 Grazing fees ............................................................................................................................128 Grease - cost of......................................................................................................................233 Greasy wool testing charges ..................................................................................................134 Green bean seed (process crop) - cost of......................................................................................182 Greenhouse film - cost of .............................................................................................................339 watering systems - cost of .........................................................................................342 Greenhouses - cost of......................................................................................................................337 Gross margin Barley ........................................................................................................................408 Carrot seed ................................................................................................................422 Field peas ..................................................................................................................414 Fodder Beet ...............................................................................................................419 Kale ...........................................................................................................................421 Kale and Fodder Beet ................................................................................................418 Maize .........................................................................................................................424 Oil seed rape..............................................................................................................417 Perennial ryegrass .....................................................................................................412 Vining peas ...............................................................................................................415 Wheat ........................................................................................................................407 White clover ..............................................................................................................410 Gross margins ..................................................................................................................404 Gross Margins ..........................................................................................................372, 377 Bull Beef ...................................................................................................................384 Crops General ...........................................................................................................400 Deer ...........................................................................................................................395 Pig .............................................................................................................................400 Sheep .........................................................................................................................382 602

602

Growing tunnels - cost of ........................................................................................................337 Growing media - cost of......................................................................................................................194 Growth promotants cost of ..........................................................................................................................96 Growth regulants - cost of......................................................................................................................202 GST auction sales ..............................................................................................................520 calculation example...................................................................................................518 exemptions ................................................................................................................516 input tax.....................................................................................................................518 invoice or payments basis .........................................................................................517 output tax...................................................................................................................518 records .......................................................................................................................519 registration ................................................................................................................516 returns and payment ..................................................................................................517 tax invoices ...............................................................................................................519 zero rating .................................................................................................................516 GST (Goods and Services Tax) .......................................................................................516 Guards tree protection - cost of .............................................................................................355 Guava plants - cost of ...........................................................................................................190 Gumboots (safety) - cost of......................................................................................................................217 H Hail damage compensation, taxation of .........................................................................................500 Handguns sprayers - cost of .......................................................................................................306 Handling charges goat fibre ...................................................................................................................205 Handling charges (velvet) ................................................................................................206 Handling charges (wool) ..................................................................................................205 Hard hat (safety) - cost of......................................................................................................................217 Harness chinball - cost of ........................................................................................................138 Harrows - cost of......................................................................................................................315 power - cost of...........................................................................................................315 Harvester combine - cost of .......................................................................................................319 combine - running costs ............................................................................................235 forage / silage - cost of ..............................................................................................311

603

Harvesters - depreciation.............................................................................................................547 - depreciation (old schedule) .....................................................................................561 vegetable - cost of .....................................................................................................319 Hay balers - depreciation ..................................................................................................547 balers - depreciation (old schedule) ..........................................................................561 bales - cost of ............................................................................................................127 barns - depreciation ...................................................................................................551 cover - cost of ............................................................................................................219 feeders - cost of .........................................................................................................303 handling equipment - cost of.....................................................................................303 making equipment - cost of.......................................................................................302 mower - cost of .........................................................................................................300 rakes - cost of ............................................................................................................302 Haybarns - cost of......................................................................................................................343 Haylage - cost of......................................................................................................................127 Hazard identification software - cost of .......................................................................................................362 Hazelnut trees - cost of .............................................................................................................191 Head lamp - cost of......................................................................................................................218 Headbails - cost of......................................................................................................................334 Header - cost of......................................................................................................................319 - running costs ...........................................................................................................235 Headers - depreciation (old schedule) .....................................................................................561 Heading / harvesting contractor charges .....................................................................................................146 Heating (greenhouse) - cost of......................................................................................................................340 Heating systems (greenhouse) - depreciation (old schedule) .....................................................................................561 Hedge mulching contractor charges .....................................................................................................148 Heifers - see also Beef, Cattle, Dairy ......................................................................................16 average prices ..............................................................................................................19 dairy - stock prices ......................................................................................................33 live export ...................................................................................................................37 livestock prices ............................................................................................................18 Helianthus (sunflowers) seed - cost of .............................................................................................................188 604

604

Helicopter contract rates (weed and pest) ...................................................................................203 Helicopter spraying vineyard fungicide or insecticide - cost of ................................................................203 Helicopters - depreciation.............................................................................................................555 - depreciation (old schedule) .....................................................................................561 Herbage seed levies - cost of ...................................................................................................207 Herbicides - cost of......................................................................................................................196 Herd scheme - examples ....................................................................................................540 scheme - for taxation of livestock .............................................................................489 scheme - movement of stock .....................................................................................491 Herd testing cost of ........................................................................................................................112 Hereford bull, cost of .......................................................................................................110 Herringbone milking plant - depreciation (old schedule) ..............................................................561 High-priced livestock taxation of .................................................................................................................495 Hinds live sales ......................................................................................................................40 schedule price ..............................................................................................................40 Hip clamp - cost of......................................................................................................................139 Hire bee hives - cost of......................................................................................................220 Hitches (implement) - cost of......................................................................................................................316 Hive (bee) valuation of (taxation) ...............................................................................................500 Hive (bees) - cost of......................................................................................................................221 hire - cost of ..............................................................................................................220 Hives (bee) - depreciation (old schedule) .....................................................................................559 Hobbles (cow) - cost of......................................................................................................................139 Hobbles (cows) cost of ........................................................................................................................101 Hoes rotary - cost of ...........................................................................................................314 Homogenisers - depreciation.............................................................................................................549 Honey price paid to producers ................................................................................................81 605

605

Hoofcutting equipment - cost of ....................................................................................................139 Hop frames / kilns - depreciation (old schedule) ..............................................................561 kilns - depreciation ....................................................................................................547 plants - amortisation rates (taxation).........................................................................572 Hormone (root forming) - cost of......................................................................................................................202 Horse bridles / saddles / covers - cost of .............................................................................142 feed- cost of ...............................................................................................................125 Horse expenses .................................................................................................................142 Horses commission on sale of ...............................................................................................204 Horticultural farm - administration expenses .................................................................................241 farm - vehicle expenses .............................................................................................225 farm - weed and pest control .....................................................................................195 farms - repairs and maintenance ...............................................................................223 levies - cost of ...........................................................................................................210 product prices ..............................................................................................................66 workers wages / salaries ..............................................................................................91 Horticulture Enterprise analysis ....................................................................................................425 Horticulture industry ACC levies ................................................................................................................545 taxation of .................................................................................................................499 Hoses (irrigation) - cost of......................................................................................................................276 Hoses anad fittings (irrigation) - cost of......................................................................................................................276 Houses, cottages - cost of......................................................................................................................343 Hunting and trapping ACC levies ................................................................................................................546 Hyacinth bulbs cost of ........................................................................................................................189 Hybrid ryegrass seed - price paid to producers .......................................................................64 Hydraulic post drivers - cost of ..................................................................................................291 I Icemaking machines (fishing industry) - depreciation.............................................................................................................550 Implement hitches - cost of .........................................................................................................316 Implement sheds - cost of......................................................................................................................343 606

606

Implements cultivation - cost of ...................................................................................................314 planting - cost of .......................................................................................................317 Imputation system (taxation) .......................................................................................................471 tax credits ..................................................................................................................471 Income apicultural production .................................................................................................81 camelids ......................................................................................................................51 cattle ............................................................................................................................15 crops ............................................................................................................................52 dairy ............................................................................................................................23 deer ..............................................................................................................................39 farm ...............................................................................................................................3 fruit ..............................................................................................................................66 goats ............................................................................................................................43 logs ..............................................................................................................................83 pigs ..............................................................................................................................47 sheep..............................................................................................................................5 small seeds ..................................................................................................................64 vegetables ....................................................................................................................77 wool .............................................................................................................................12 Income protection insurance - cost of......................................................................................................................248 Income tax assessable income .....................................................................................................465 assessment .................................................................................................................461 beneficiaries (trusts) ..................................................................................................475 bloodstock .................................................................................................................496 companies..................................................................................................................471 core provisions ..........................................................................................................464 depreciation allowances ............................................................................................482 development expenses...............................................................................................481 dividends / dividend imputation credits ....................................................................471 due dates for annual returns ......................................................................................460 evasion - penalties .....................................................................................................462 exempt income ..........................................................................................................467 family support / minimum income tax credit ............................................................469 farming ......................................................................................................................477 fishing industry .........................................................................................................503 forms to use ...............................................................................................................460 fringe benefit taxes ....................................................................................................507 horticulture ................................................................................................................499 income equalisation schemes ....................................................................................486 invoices - GST ..........................................................................................................519 minor beneficiaries ....................................................................................................476 partnerships ...............................................................................................................474 partnerships - family .................................................................................................474 607

607

penalties ....................................................................................................................462 property sales ............................................................................................................465 rates for individuals and companies ..........................................................................524 relationship property .................................................................................................506 returns for taxation ....................................................................................................460 stock (live) - valuation of ..........................................................................................489 trading stock - valuation of .......................................................................................489 trustees income ..........................................................................................................476 trusts - qualifying / non qualifying ............................................................................475 use of money interest ................................................................................................462 valuation of stock -examples ....................................................................................537 Income Tax Act ................................................................................................................445 Independent Earner Tax Credit ........................................................................................468 Inflation rates of - 1891 to 2018 ..............................................................................................364 Injector cost of ........................................................................................................................103 Inoculant silage - cost of ...........................................................................................................220 Insect screen - cost of......................................................................................................................218 Insecticides - cost of......................................................................................................................199 Insulators electric fences - cost of..............................................................................................292 Insurance combine harvester .....................................................................................................235 death cover - cost of ..................................................................................................248 employer liability - cost of ........................................................................................248 farm / farm buildings - cost of ..................................................................................247 forestry (fire / windstorm) - cost of...........................................................................354 public and product liability - cost of .........................................................................248 statutory liability - cost of .........................................................................................247 stock - cost of ............................................................................................................248 Internet charges ................................................................................................................242 Intra-rumen injector cost of ........................................................................................................................101 Invoice tax ..............................................................................................................................519 IR3, IR3B, IR3F, IR4, IR6, IR7, IR9 tax return forms ....................................................460 IR330 tax forms ...................................................................................................................449 IRD Depreciation calculator .............................................................................................559 Iris bulbs cost of ........................................................................................................................189

608

Irrigation earthworks - cost of ...................................................................................................278 effluent spray system - cost of ..................................................................................267 equipment - cost of ....................................................................................................274 horticultural equipment - cost of ...............................................................................276 low pressure systems - cost of ..................................................................................274 Pump capacity charge ...............................................................................................406 pump capacity charges ..............................................................................................405 scheduling service - cost of .......................................................................................278 scheme charges .........................................................................................................277 Variable power cost ..................................................................................................406 Irrigation equipment - depreciation.............................................................................................................547 Irrigation methods comparison costs per ha ............................................................................................261 Irrigation pond earthworks - cost of ...................................................................................................278 Irrigator fence crossing system components, cost of ..............................................................275 Irrigators centre pivots - cost of ................................................................................................274 Isolating transformers - depreciation.............................................................................................................548 Italian ryegrass price paid to producers ................................................................................................64 J Japanese Grade log price.......................................................................................................................83 Jersey cattle sale price .....................................................................................................................33 K Kale seed - price paid to grower ..........................................................................................65 seed (crop) - cost of ...................................................................................................182 seed (vegetable) - cost of ..........................................................................................184 Ked control - cost of ...........................................................................................................97 Kennels - cost of......................................................................................................................345 dog - depreciation......................................................................................................548 Kiwifruit Enterprise analysis ....................................................................................................427 export prices ................................................................................................................72 growers - ACC levies ................................................................................................545 growers, drawings (personal expenditure) ..................................................................92 packing charges .........................................................................................................216 plants - amortisation rates .........................................................................................572 pollination - cost of ...................................................................................................220 609

609

progress payments 2016/2017 .....................................................................................72 trays - cost of .............................................................................................................215 K-Line irrigation - cost of......................................................................................................................274 Knapsack sprayers - cost of .......................................................................................................308 L Ladders forestry - cost of ........................................................................................................354 orchard - cost of ........................................................................................................327 Lamb export meat schedule .....................................................................................................5 local meat prices............................................................................................................9 milk supplement - cost of ..........................................................................................120 pelt price trends .............................................................................................................7 price - impact of exchange rate .....................................................................................3 price trends ....................................................................................................................5 store prices ..................................................................................................................10 wool prices ..................................................................................................................12 Lamb / kid milk bar feeder - cost of ............................................................................................142 rail bucket feeder - cost of.........................................................................................142 Lambing equipment - cost of......................................................................................................................136 Land drainage - cost of......................................................................................................................279 Land improvement expenditure on - taxation / depreciation............................................................481, 525 Land transfer fees .............................................................................................................237 Late payment of tax - penalties ........................................................................................462 Leek seed - cost of .............................................................................................................184 Leg bands / straps (lambing) - cost of ..............................................................................138 splints - cost of ..........................................................................................................101 Legacies exemption from income tax ......................................................................................467 Legal fees .........................................................................................................................238 Legumes price paid for seed .......................................................................................................64 Lemon trees - cost of .............................................................................................................190 Lemon / Lime levies .........................................................................................................................210 Lentils dressing charges ........................................................................................................213 price paid to growers ...................................................................................................61

610

Lettuce seed - cost of .............................................................................................................184 Levies ACC ..........................................................................................................................545 apricot........................................................................................................................210 arable crop .................................................................................................................208 asparagus ...................................................................................................................212 avocado .....................................................................................................................212 Beef + Lamb NZ .......................................................................................................206 berryfruit ...................................................................................................................210 blackcurrants .............................................................................................................210 blueberries .................................................................................................................210 boysenberries ............................................................................................................210 Building Research Authority ....................................................................................328 buttercup squash ........................................................................................................212 cereal .........................................................................................................................208 cherry ........................................................................................................................210 Deer Industry.............................................................................................................207 Department of Building and Housing .......................................................................328 feijoa..........................................................................................................................212 forest growers ............................................................................................................212 Foundation for Arable Research ...............................................................................208 grapefruit ...................................................................................................................210 horticultural ...............................................................................................................210 lemon / lime ..............................................................................................................210 maize .........................................................................................................................208 mandarin....................................................................................................................210 NAIT .........................................................................................................................206 nashi pear ..................................................................................................................212 nectarines ..................................................................................................................210 NZ Citrus Growers inc ..............................................................................................210 onions ........................................................................................................................212 orange ........................................................................................................................210 orchard ......................................................................................................................212 peach .........................................................................................................................210 persimmon .................................................................................................................212 Pipfruit NZ ................................................................................................................212 plum ..........................................................................................................................210 Pork Industry .......................................................................................................47, 206 potatoes .....................................................................................................................212 summerfruit ...............................................................................................................210 tomato........................................................................................................................212 United Wheatgrowers ...............................................................................................208 vegetable ...................................................................................................................212 wheat .........................................................................................................................208 Liability insurance............................................................................................................248 Licensing fees vehicle - cost of .........................................................................................................234 611

611

Lifters (vegetable) - cost of......................................................................................................................319 Lime agricultural - cost of ..................................................................................................166 cost of ........................................................................................................................166 hydrated - cost of.......................................................................................................166 spreaders - depreciation (old schedule).....................................................................560 trees - cost of .............................................................................................................190 Limitation of tax losses from farming .............................................................................498 Liner dam / pond - cost of...................................................................................................268 Linseed price paid to grower ....................................................................................................62 Lisianthus seed - cost of .............................................................................................................188 Live bees price paid for ...............................................................................................................82 Live Sheep and Lamb exports ..............................................................................................7 Livestock high-priced, taxation scheme ....................................................................................495 insurance - cost of .....................................................................................................248 levies- cost of ............................................................................................................206 sire proving payments .................................................................................................32 valuation of - for taxation purposes ..................................................................490, 531 valuation of - worked examples ................................................................................537 Livestock gross margins ............................................................................................................380 Llama fibre prices...................................................................................................................51 livestock value / prices ................................................................................................51 Loading ramps - cost of......................................................................................................................336 Loan repayment tables .......................................................................................................258 Log lifter - cost of .............................................................................................................322 splitter - cost of .........................................................................................................327 Log splitter contractor charges .....................................................................................................148 Loganberry plants - cost of ...........................................................................................................192 Logging forestry - cost of ........................................................................................................354 Logs market outlook ............................................................................................................83 prices - domestic .........................................................................................................83 prices - export..............................................................................................................83 Look-Through Companies ...............................................................................................473 612

612

Loquat trees - cost of .............................................................................................................190 Lotus seed - cost of .............................................................................................................177 seed - price paid to growers ........................................................................................64 Lucerne seed - cost of .............................................................................................................179 seed - price paid to growers ........................................................................................64 Lupins dressing charges ........................................................................................................213 price paid to grower ....................................................................................................62 Lysine - cost of......................................................................................................................126 M Machinery farm - cost of .............................................................................................................295 Magazines (farming) - cost of......................................................................................................................246 Magnets (rumen) cost of ........................................................................................................................101 Main Crop potatoes - prices paid to growers ................................................................................79 Maize levy - cost of ..............................................................................................................208 planting - contractor charges ....................................................................................145 price paid to growers (contract) ..................................................................................60 seed - cost of .............................................................................................................180 silage - purchase price .................................................................................................60 Malting Barley - see also Barley ..........................................................................................................54 contract price ...............................................................................................................54 price trends 1973 to 2018 ............................................................................................55 Manager salaries - dairy / sheep / beef .......................................................................................89 Mandarin levies .........................................................................................................................210 trees - cost of .............................................................................................................190 Manuka Honey price paid to producers ................................................................................................81 Manure spreader - cost of .......................................................................................................312 Maple Peas price paid to producer .................................................................................................58 Market garden wages ...........................................................................................................................91 Marking ears (sheep) - cost of .................................................................................................137

613

Marking agents sprays - cost of ..........................................................................................................201 Marrowfat Peas price paid to producers ................................................................................................58 Mask / respirator kit - cost of......................................................................................................................217 Mastitis testing kit cost of ........................................................................................................................101 Mating devices - cost of.........................................................................................................138 Measuring wheels - cost of......................................................................................................................324 Meat goat - price of - see chevon .........................................................................................43 local prices - cattle (prime) .........................................................................................16 local prices - pork ........................................................................................................47 local prices - sheep (prime) ...........................................................................................9 Meat Schedule pork .............................................................................................................................47 venison ........................................................................................................................39 Meat Schedules lamb ...............................................................................................................................5 mutton ...........................................................................................................................8 Merino wool price ....................................................................................................................12 Metabolics cost of ..........................................................................................................................97 Metal (shingle) - cost of......................................................................................................................349 Metal injectors cost of ........................................................................................................................103 Methionine - cost of......................................................................................................................126 Metricheck/ Metricure cost of ..........................................................................................................................99 Microgreens seed - cost of .............................................................................................................184 Milk bar calf - cost of ........................................................................................................118 coolers - cost of .........................................................................................................115 goat - price of ..............................................................................................................43 payment basis ..............................................................................................................25 powder - cost of.........................................................................................................120 price penalties (poor quality) ......................................................................................29 prices and price trends.................................................................................................29 processing equipment - depreciation ........................................................................548 replacers - cost of ......................................................................................................120 solids - payout .............................................................................................................23 614

614

solids - price trends .....................................................................................................29 warmer - cost of ........................................................................................................119 whisk / mixer / plunger - cost of ...............................................................................119 winter contract price....................................................................................................29 Milking goats- national standard cost (taxation) ....................................................................532 Milksolids payout ..........................................................................................................................23 Milling wheat contract prices .............................................................................................................52 price trends ..................................................................................................................53 MINDA ............................................................................................................................371 herd recording services - cost of ...............................................................................362 Mineral blocks - cost of ..........................................................................................................124 lick - cost of...............................................................................................................124 nutritional supplements - cost of ...............................................................................120 Ministry of Primary Industries Monitoring Reports ...................................................................................................376 Misters - cost of......................................................................................................................321 Mixer wagons - cost of......................................................................................................................311 Mohair price paid .....................................................................................................................44 price trends ..................................................................................................................44 Moisture meters - cost of ..........................................................................................................324 Molasses feed supplement - cost of ..........................................................................................123 Mole drainage - cost of .......................................................................................................279 Molluscicides - cost of......................................................................................................................199 Monitoring soil moisture - cost of ................................................................................................278 water system components - cost of ...........................................................................275 monitoring reports ............................................................................................................376 Motor bikes - depreciation ...................................................................................................556 bikes average prices of ..............................................................................................295 bikes depreciation .....................................................................................................556 bikes, accessories - costs of ......................................................................................299 bikes, trailers - cost of ...............................................................................................299 launches depreciation ................................................................................................556 vehicles depreciation .................................................................................................556 Motor bikes cost of ........................................................................................................................298 615

615

Motorbike insurance - cost of .....................................................................................................248 licensing fees - cost of ...............................................................................................234 Mower conditioners - cost of......................................................................................................................301 Mowers - depreciation.............................................................................................................548 farm - cost of .............................................................................................................300 Mowing / tedding tractor fuel consumption for......................................................................................226 MPI Monitoring Reports ...................................................................................................376 Mulch - cost of......................................................................................................................194 Mulchers - depreciation.............................................................................................................548 Mutton export schedule .............................................................................................................8 price trends ....................................................................................................................8 prices - impact of exchange rate on ..............................................................................3 Mycoplasma bovis ...................................................................................................371, 380 N NAIT levies - cost of ...........................................................................................................206 NAIT tags - cost of......................................................................................................................138 Narcissus bulbs cost of ........................................................................................................................189 Nashi pear levies - cost of ...........................................................................................................212 National Average Market values of livestock (taxation) ...............................................................................................531 National Standard Cost Scheme 2018 livestock example ......................................................................................................543 Native regeneration pack - cost of......................................................................................................................351 Nectarine levies .........................................................................................................................210 trees - cost of .............................................................................................................190 Needles - cost of......................................................................................................................137 Netting bird - depreciation .....................................................................................................500 wire - cost of .............................................................................................................289 Nominated service (AB) cost of ........................................................................................................................106 Nucleus hives purchase ......................................................................................................................82 616

616

Nut

trees - cost of .............................................................................................................191 trees amortisation rates (taxation) .............................................................................571 Nutritional supplements minerals - cost of .......................................................................................................120 NZ Citrus Growers Inc levies .........................................................................................................................210 NZ Dollar exchange rates ...............................................................................................................4 O Oak trees - cost of .............................................................................................................351 Oats contract price ...............................................................................................................57 dressing and clipping charges ...................................................................................213 dressing charges ........................................................................................................213 drying charges ...........................................................................................................213 price paid to producers ................................................................................................57 seed - cost of .............................................................................................................182 Oil - cost of......................................................................................................................233 olive - prices received (wholesale) .............................................................................75 Ointments dairy - cost of ............................................................................................................114 Olive trees - cost of .............................................................................................................191 Olives price paid to producers ................................................................................................75 Onion seed - cost of .............................................................................................................184 Onions levy ............................................................................................................................212 price paid to producers ................................................................................................78 price trends ..................................................................................................................78 Orange levies .........................................................................................................................210 trees - cost of .............................................................................................................190 Orchard equipment - cost of ....................................................................................................321 levies .........................................................................................................................212 Orchard / packhouse workers wages ...........................................................................................................................91 Organic products (feed supplements)- cost of ........................................................................122 OSH management (software) cost of ........................................................................................................................362 Outriggers fence - cost of ............................................................................................................293 617

617

Over trousers (waterproof) - cost of......................................................................................................................217 Overalls (protective) - cost of......................................................................................................................217 Overalls (waterproof) - cost of......................................................................................................................217 P Packhouse workers wages ...........................................................................................................................91 Packing charges apple / pear ................................................................................................................216 avocado .....................................................................................................................216 kiwifruit .....................................................................................................................216 Parental Tax Credit (now Working for Families Tax Credit) ..................................469, 564 Parsnip seed - cost of .............................................................................................................184 partial budgeting ..............................................................................................................378 Partnerships family - taxation of ....................................................................................................474 taxation of .................................................................................................................474 Pasteurisers - depreciation.............................................................................................................549 Pastoral land - rental cost ........................................................................................................251 Pasture meters - cost of ..........................................................................................................323 seed - prices paid to grower ........................................................................................64 PAYE offences - penalties....................................................................................................462 taxation ......................................................................................................................449 Payroll giving ........................................................................................................................468 software - cost of .......................................................................................................363 Payroll outsourcing - cost of......................................................................................................................246 Peach levies .........................................................................................................................210 trees - cost of .............................................................................................................190 trees amortisation rates (taxation) .............................................................................572 Pear trees - cost of .............................................................................................................190 trees amortisation rates (taxation) .............................................................................572 Pears packing charges .........................................................................................................216 price paid to producers ................................................................................................66

618

Peas prices paid to growers (contract) .................................................................................58 seed (garden) - cost of ...............................................................................................184 seed (process crop) - cost of......................................................................................182 Pelts price paid for .................................................................................................................7 price paid for - lambs ....................................................................................................7 Penalties milk quality .................................................................................................................29 tax offences ...............................................................................................................462 Penetrants - cost of......................................................................................................................202 Pepino trees - cost of .............................................................................................................190 Peppers (capsicum) price paid to growers ...................................................................................................77 Perennial ryegrass seed, price paid to growers ..........................................................................................64 Perennial Ryegrass Gross margin .............................................................................................................412 Perlite (propagating media) - cost of......................................................................................................................194 Permit resource consent - cost of ..........................................................................................273 Persimmon levies - cost of ...........................................................................................................212 trees - cost of .............................................................................................................190 Personal income tax .................................................................................................................465 Independent Earner Tax Credit .................................................................................468 insurance - income protection - cost of .....................................................................248 tax credits ..................................................................................................................468 tax credits - children ..................................................................................................468 tax credits - donations ...............................................................................................468 tax credits - payroll giving ........................................................................................468 Perulus (crayfish) traps - depreciation ...................................................................................550 Pest control services - ACC levies ................................................................................................546 Petrol - cost of......................................................................................................................233 Petrol-hybrid car running costs .............................................................................................................231 pH meter - cost of......................................................................................................................324 Phosphorus availability in fertiliser .................................................................................165

619

Pig

crates - depreciation ..................................................................................................547 farmers ACC levies ...................................................................................................546 feed - cost of ..............................................................................................................124 feeding equipment - depreciation..............................................................................548 houses - depreciation .................................................................................................553 houses - depreciation (old schedule) .........................................................................561 national standard cost (taxation) .......................................................................492, 528 valuation of for taxation ............................................................................................490 valuation of, for taxation ...........................................................................................528 Pig tail docker cost of ........................................................................................................................141 Piglet tooth clipper - cost of......................................................................................................................141 Pigs - national standard cost (taxation) .............................................................................532 commission on sale of ...............................................................................................204 levies ...........................................................................................................................47 live sales ......................................................................................................................50 live sales price trends ..................................................................................................50 meat returns 1987 to2018 ............................................................................................48 meat schedule prices ...................................................................................................47 yard fees - cost of ......................................................................................................204 Pine trees - cost of .............................................................................................................351 Pine nut trees - cost of .............................................................................................................191 Pine trees log prices - domestic ...................................................................................................83 log prices - export .......................................................................................................83 see also Radiata ...........................................................................................................83 Pink eye patches cost of ..........................................................................................................................96 Pipe culvert - cost of .........................................................................................................280 Pipes / fittings - cost of......................................................................................................................269 Pipfruit Enterprise analysis ....................................................................................................430 growers ACC levies ..................................................................................................545 growers,drawings (personal expenditure) ...................................................................92 pollination - cost of ...................................................................................................220 price paid to growers ...................................................................................................66 trees amortisation rates (taxation) .............................................................................572 Pipfruit NZ levies - cost of ...........................................................................................................212 Pittosporum trees - cost of .............................................................................................................351 620

620

Plant testing - cost of ..........................................................................................................169 Plant and machinery - depreciation.............................................................................................................547 - depreciation (old schedule) .....................................................................................561 commission on sale of ...............................................................................................204 depreciation allowances ............................................................................................482 Plantain seed - cost of .............................................................................................................179 Planter potato - cost of...........................................................................................................319 Plants in the ground valuation of (taxation) ...............................................................................................501 Plastic tanks - cost of ............................................................................................................261 Plate meters - cost of ..........................................................................................................323 Platform weighing - cost of ......................................................................................................136 Ploughing contractor charges .....................................................................................................145 tractor fuel consumption for......................................................................................226 Ploughs - cost of......................................................................................................................314 Plum levies .........................................................................................................................210 trees - cost of .............................................................................................................190 trees amortisation rates (taxation) .............................................................................572 Pollen price paid to growers ...................................................................................................81 Pollination - cost of......................................................................................................................220 return from hives .........................................................................................................82 Pond effluent- cost of .........................................................................................................283 irrigation storage - cost of .........................................................................................278 Pond liners - cost of......................................................................................................................268 Pool method of depreciation ............................................................................................482 Pool prices velvet ...........................................................................................................................41 Poplar trees - cost of .............................................................................................................351 Pork levies - cost of ...........................................................................................................206 prices ...........................................................................................................................47 Porkers prices ...........................................................................................................................50 621

621

Portable generators - cost of ....................................................................................................325 sheep yards - cost of ..................................................................................................336 welders - cost of ........................................................................................................325 Possum control - cost of .........................................................................................................200 Post drivers - cost of .........................................................................................................291 hole borers - depreciation ..........................................................................................548 Postage charges ................................................................................................................243 Posts fencing- cost of..........................................................................................................288 Potato planter - cost of .........................................................................................................319 Potatoes levy ............................................................................................................................212 prices paid to growers .................................................................................................79 Potting machines - cost of......................................................................................................................318 Poultry ACC levies ................................................................................................................546 equipment - depreciation ...........................................................................................548 equipment - depreciation (old schedule) ...................................................................561 feed - cost of ..............................................................................................................125 feeder - cost of...........................................................................................................142 Power harrows - cost of ........................................................................................................315 Power harrowing contractor charges .....................................................................................................145 Pre-cast effluent pond- cost of ................................................................................................283 Precision drills - cost of ............................................................................................................318 Pregnancy diagnosis (ultrasound) - cost of .................................................................................147 tester ultrasound - cost of ..........................................................................................141 Premier sire service (AB) cost of ........................................................................................................................106 Premium wheat price paid for ...............................................................................................................52 Premiums for contract winter milk...............................................................................................29 Prepaid expenditure taxation of .................................................................................................................479 Price discounts - farm income ................................................................................................3 Price indicators (wool) trends 1998 to 2018e ...................................................................................................13 622

622

Prices impact of exchange rates ...............................................................................................3 Prill applicator - cost of......................................................................................................................311 Prime cattle - local sale prices ...............................................................................................16 lamb - meat schedules ...................................................................................................9 lamb - price trends (export) ...........................................................................................5 mutton schedule ............................................................................................................8 sheep - local sales ..........................................................................................................9 Primrose (evening) seed - price paid to growers ........................................................................................62 Prize money exemption from tax ...................................................................................................467 Prodders bull - cost of ..............................................................................................................141 ProductionWise ................................................................................................................372 Professional fees ..............................................................................................................236 Propagation cables (heating) - cost of ...........................................................................................340 Propagation materials - cost of......................................................................................................................193 Propolis price paid for ...............................................................................................................81 Proprietary cultivars price paid to growers of seed - legumes......................................................................64 price paid to growers of seed - ryegrasses ..................................................................64 Protection tree guards - cost of ...................................................................................................355 Protective clothing tax deductibility.........................................................................................................480 Provisional tax payment dates ......................................................................................................523 taxation system ..........................................................................................................452 Provisional tax examples....................................................................................................................454 Pruning equipment - cost of ....................................................................................................326 saws - cost of .............................................................................................................326 Prussian peas price paid to growers ...................................................................................................58 Pulp (timber) price paid to producer .................................................................................................83 Pump firefighter - cost of ....................................................................................................217 Pump capacity charge ......................................................................................................406 Pumpkin seed- cost of ..............................................................................................................184 623

623

Pumps - cost of......................................................................................................................262 centrifugal - cost of ...................................................................................................264 effluent - cost of ........................................................................................................266 submersible - cost of .................................................................................................265 Punnets - cost of......................................................................................................................215 Purchase of land development expenditure (tax) .................................................................................481 Purple wheat price paid to growers ...................................................................................................52 Q Qualifying company .........................................................................................................473 Queen bee prices paid for..............................................................................................................82 Quota fishing - tax deductibility status ................................................................................503 R Rabbit feed - cost of ..............................................................................................................126 poison - cost of ..........................................................................................................200 Raddle - cost of......................................................................................................................138 Radiata pine log prices - domestic ...................................................................................................83 log prices - export .......................................................................................................83 Radish seed - cost of .............................................................................................................184 Rain gauge - cost of......................................................................................................................324 Rakes (hay) - cost of......................................................................................................................302 Ram purchases Border Leceister - cost of ..........................................................................................110 Borderdale - cost of ...................................................................................................110 Coopworth - cost of...................................................................................................110 Corriedale - cost of ....................................................................................................110 Dorset Down - cost of ...............................................................................................110 East Friesian - cost of ................................................................................................110 Finnish Landrace - cost of .........................................................................................110 Highlander - cost of...................................................................................................110 Kelso - cost of ...........................................................................................................110 Merino - cost of .........................................................................................................110 Perendale - cost of .....................................................................................................110 Polled Dorset - cost of ...............................................................................................110 Rissington Primera - cost of ......................................................................................110 Romney - cost of .......................................................................................................110 South Dorset Down - cost of .....................................................................................110 624

624

South Suffolk - cost of ..............................................................................................110 Suffolk - cost of.........................................................................................................110 Texel - cost of ...........................................................................................................110 Rampumps - cost of......................................................................................................................262 Ranunculus bulbs cost of ........................................................................................................................189 Rape forage - seed, price paid to grower ..............................................................................65 oilseed - seed, price paid to grower ............................................................................63 seed - cost of .............................................................................................................180 Raspberry amortisation rates (taxation) .....................................................................................571 plants - cost of ...........................................................................................................192 Rates council charges ..........................................................................................................249 of income tax .............................................................................................................524 of inflation 1891to 2018 ............................................................................................364 Real estate charges ...........................................................................................................239 Red clover ........................................................................................................................410 dressing and store handling charges .........................................................................213 seed, price paid to grower ...........................................................................................64 Refrigeration equipment- depreciation ............................................................................................550 systems - depreciation ...............................................................................................550 Regional council permits - cost of.........................................................................................................273 Registration dogs - cost of .............................................................................................................104 Regulants, growth - cost of......................................................................................................................202 Relationship property - disposition of ............................................................................................506 Rental land - cost of ..............................................................................................................251 Repairs and maintenance farm improvements ...................................................................................................224 in relation to taxation ................................................................................................480 machinery / vehicles..................................................................................................224 plant ...........................................................................................................................224 total farm costs ..........................................................................................................223 Replacement stock dairy cattle - cost of .....................................................................................................33 Reservoir - depreciation.............................................................................................................553 Resident Withholding Tax .......................................................................................451, 471 Residual Income Tax .......................................................................................................452

625

Resource consents - cost of......................................................................................................................273 Returns of income for taxation ........................................................................................460 Ring-fencing losses investment properties (taxation) ...............................................................................447 RIT (Residual Income Tax) .............................................................................................452 Road transport rates ............................................................................................................171 Road user charges ............................................................................................................234 Roading aggregate (farmers) cost of ........................................................................................................................350 Roading aggregate (forestry) cost of ........................................................................................................................350 Rodent control - cost of .........................................................................................................200 Rollers - cost of......................................................................................................................316 - depreciation.............................................................................................................548 Rolling tractor fuel consumption for......................................................................................226 Roofing materials - cost of ......................................................................................................349 Root forming hormones - cost of......................................................................................................................202 Rotary cultivator - cost of .....................................................................................................314 hoes - cost of .............................................................................................................314 Royalties taxation of .................................................................................................................467 wheat seed .................................................................................................................209 Rumen preparer cost of ........................................................................................................................123 Running costs tractor ........................................................................................................................227 Running Costs car ..............................................................................................................................229 diesel vehicle .............................................................................................................230 electric car .................................................................................................................232 petrol-hybrid car ........................................................................................................231 Rural water supply - cost of ..........................................................................................................272 Rutbuster rut filler - cost of .......................................................................................................310 RWT (Resident Withholding Tax) ...........................................................................451, 471 Ryecorn dressing charges ........................................................................................................213 price paid to growers ...................................................................................................61 seed - cost of .............................................................................................................182 626

626

Ryegrass dressing and store handling charges .........................................................................213 herbage seed levy ......................................................................................................207 seed turf - cost of .......................................................................................................183 seed varieties - cost of ...............................................................................................174 seed, price paid to growers ..........................................................................................64 S Saddles - cost of......................................................................................................................142 Safety equipment - cost of ....................................................................................................217 Safety vest - cost of......................................................................................................................218 Salaries dairy employees / managers ........................................................................................89 paid to relatives (in relation to Company tax) ..........................................................472 PAYE tax on .............................................................................................................449 sheep and beef employees / managers ........................................................................89 Salt blocks - cost of ..........................................................................................................124 mineral supplement - cost of .....................................................................................124 Sanitizers dairy shed - cost of ....................................................................................................113 Scales - depreciation (old schedule) .....................................................................................562 animal weighing - cost of ..........................................................................................136 Schedule meat - goat ...................................................................................................................43 meat - lamb (export) ......................................................................................................5 meat - mutton (export) ..................................................................................................8 meat - pork ..................................................................................................................47 meat - venison .............................................................................................................39 Scrotal measuring tape cost of ........................................................................................................................101 Second hand assets - depreciation.............................................................................................................484 Seed arable crops - cost of .................................................................................................182 drills - cost of ............................................................................................................317 Seed (herbage) levies - cost of ...........................................................................................................207 Seed testing - cost of......................................................................................................................214 Seeds pasture - cost of .........................................................................................................174 turf cultivars - cost of ................................................................................................183 Selenium trace element supplement (stockwater) - cost of.......................................................122 627

627

Self-employed ACC levies ................................................................................................................545 Selling charges stock ..........................................................................................................................204 Selling charges (goat fibre) ..............................................................................................205 Selling charges (velvet) ....................................................................................................206 Selling charges (wool) .....................................................................................................205 Separators - depreciation.............................................................................................................550 Septic tanks - depreciation (old schedule) .....................................................................................562 Septic Tanks cost of ........................................................................................................................283 Shade cloth - cost of.............................................................................................................355 houses - depreciation .................................................................................................553 Shallow well jet pumps - cost of .....................................................................................................264 Shearers ACC levies ................................................................................................................546 wages - taxation of ....................................................................................................450 Shearing contract rates .............................................................................................................131 equipment - cost of ....................................................................................................132 equipment - depreciation ...........................................................................................548 shed expenses ............................................................................................................132 work - PAYE or schedular payments........................................................................450 Shearing machines - cost of......................................................................................................................132 Shears - cost of......................................................................................................................133 Shed wool - cost of.............................................................................................................332 wool expenses ...........................................................................................................132 Sheds dangerous goods - cost of..........................................................................................348 deer - cost of ..............................................................................................................332 killing - cost of ..........................................................................................................348 Sheep artificial breeding â&#x20AC;&#x201C; cost of .......................................................................................109 average prices 1998 to 2018e ......................................................................................11 commission on sale of ...............................................................................................204 dagging - contractor charges .....................................................................................147 dipping - contractor charges ......................................................................................147 dips - depreciation (old schedule) .............................................................................562 drenching - contractor charges ..................................................................................147 farm - administration expenses .................................................................................241 farm - vehicle expenses .............................................................................................225 628

628

farm - weed and pest control .....................................................................................195 farm drawings (personal expenditure) ........................................................................92 farm employees - wages and salaries ..........................................................................89 farm- repairs and maintenance ..................................................................................223 farming - ACC levies ................................................................................................545 Gross margin, sensitivity...........................................................................................383 Gross Margins ...........................................................................................................381 income - export meat.................................................................................................5, 8 income - local prime stock prices .................................................................................9 income - store and breeding stock prices ....................................................................10 income - wool..............................................................................................................12 lamb schedule ................................................................................................................5 lamb skin price trends ...................................................................................................7 live exports ....................................................................................................................7 mutton prices trends (export) ........................................................................................8 mutton schedule ............................................................................................................8 national standard cost (taxation) .......................................................................492, 528 pregnancy diagnosis - cost of ....................................................................................147 sale prices ................................................................................................................9, 10 tailing - contractor charges ........................................................................................147 valuation of, for taxation ...................................................................................489, 528 yard fees - cost of ......................................................................................................204 yards - cost of ............................................................................................................336 yards - depreciation (old schedule) ...........................................................................562 Sheep / Goat embryo transfer fees ..................................................................................................109 feed - cost of ..............................................................................................................125 Shellfish industry - ACC levies ................................................................................................546 taxable income ..........................................................................................................503 Shellfish equipment - depreciation.............................................................................................................548 Shelter cloth - cost of.............................................................................................................355 trees - cost of .............................................................................................................351 Shingle / gravel - cost of......................................................................................................................349 Silage cover - cost of ............................................................................................................219 harvester - cost of ......................................................................................................311 inoculant - cost of ......................................................................................................220 maize - price paid to grower .......................................................................................60 making, contractor charges .......................................................................................144 wagons - cost of ........................................................................................................310 Silo dairy industry - depreciation .............................................................................548, 549 grain - depreciation ...................................................................................................550 grain - depreciation (old schedule) ...........................................................................562 629

629

Silos feed - cost of ..............................................................................................................347 grain - cost of ............................................................................................................346 Silver beet seed - cost of .............................................................................................................184 Sire proving payments .......................................................................................................32 Sire purchases Beef cattle .................................................................................................................110 Sheep .........................................................................................................................110 Skim milk blend - cost of......................................................................................................................126 Slaughter device - cost of......................................................................................................................140 Slurry spreader - cost of .......................................................................................................312 Small seeds prices paid for..............................................................................................................64 Snow plough - cost of......................................................................................................................320 Soaps dairy - cost of ............................................................................................................114 Social licence to farm .......................................................................................................371 Sodium bicarbonate - cost of ..................................................................................................120 Soft wheat prices paid to growers .................................................................................................53 software ............................................................................................................................371 Software - cost of......................................................................................................................361 FarmIQ ......................................................................................................................372 MINDA .....................................................................................................................372 ProductionWise .........................................................................................................372 Software (hazard identification) cost of ........................................................................................................................362 Soil loosener - cost of .......................................................................................................316 moisture meters - cost of ...........................................................................................324 moisture monitoring - cost of ....................................................................................278 testing - cost of ..........................................................................................................169 Soil fumigants - cost of......................................................................................................................202 Soya meal - cost of .............................................................................................................126 oil - cost of ................................................................................................................126 Special rules - depreciation.............................................................................................................484

630

Spray dips - cost of ................................................................................................................97 equipment - cost of ....................................................................................................305 Spray equipment - depreciation (old schedule) .....................................................................................562 Sprayers - depreciation.............................................................................................................548 handheld - cost of ......................................................................................................308 knapsack - cost of ......................................................................................................308 tractor mounted, cost of ............................................................................................308 Spraying tractor fuel consumption for......................................................................................226 Spreader fertiliser and manure - cost of ...................................................................................312 slurry - cost of ...........................................................................................................312 Spreaders fertiliser - depreciation ..............................................................................................548 Spreading agents sprays - cost of ..........................................................................................................201 Squash seed - cost of .............................................................................................................184 Stags cost of ..................................................................................................................40, 111 see also Deer ...............................................................................................................40 Standard value of livestock ................................................................................................................528 Standard Value of livestock ................................................................................................................490 Standards fencing - cost of.........................................................................................................288 Standing charges ..............................................................................................................247 Stand-off pads - cost of......................................................................................................................331 Staple wool measurement - cost of ......................................................................................134 Staples fencing - cost of.........................................................................................................294 Statice seed - cost of .............................................................................................................188 Stationary engines - cost of......................................................................................................................326 Steers average prices ..............................................................................................................17 see also cattle, beef......................................................................................................17 Stirrer effluent - cost of ........................................................................................................266

631

Stock average prices - cattle 2010 to2018f ...........................................................................17 average prices - sheep 2010 to 2018e .........................................................................10 commission on sale of ...............................................................................................204 crates - depreciation ..................................................................................................547 crates (ATV / motorbike) - cost of ............................................................................299 insurance - cost of .....................................................................................................248 prices - alpacas ............................................................................................................51 prices - beef cattle .......................................................................................................16 prices - dairy cattle ......................................................................................................33 prices - deer .................................................................................................................40 prices - goats ...............................................................................................................45 prices - llamas .............................................................................................................51 prices - pigs .................................................................................................................50 prices - sheep .................................................................................................................9 trading - valuation of for taxation .............................................................................489 transport rates ............................................................................................................171 underpass cost estimates ...........................................................................................330 valuation - worked examples ....................................................................................537 valuation of, for taxation ...................................................................................489, 528 water supply charges .................................................................................................272 yards (cattle) - cost of................................................................................................333 yards (deer) - cost of .................................................................................................335 yards (sheep) - cost of ...............................................................................................336 Stock and station agents commission on sale of livestock ...............................................................................204 Stock feeding systems - cost of......................................................................................................................143 Stock flowers seed - cost of .............................................................................................................188 Stock shelter - cost of......................................................................................................................343 Stomach feeder (lamb / kid / fawn) - cost of......................................................................................................................136 Stone trap - cost of..............................................................................................................266, 283 Stonefruit ACC levies ................................................................................................................545 pollination - cost of ...................................................................................................220 Stopbanks depreciation ...............................................................................................................553 Stops cattle - cost of ............................................................................................................289 Storage increments - wheat ......................................................................................................52 pond for irigation - cost of ........................................................................................278 tanks depreciation (old schedule) ..............................................................................563 Storage charges ................................................................................................................213 632

632

Store handling and dressing charges ..................................................................................213 Store stock prices - cattle ...............................................................................................................17 prices - pigs .................................................................................................................50 prices - sheep / lambs ..................................................................................................10 Straight line depreciation method ..................................................................................................482 depreciation rates ......................................................................................................547 Strainer - cost of......................................................................................................................288 Straining equipment (fencing) - cost of ....................................................................................290 Straw bales - cost of ............................................................................................................127 Subdivision charges / costs ...........................................................................................................240 Submersible pumps - cost of ..........................................................................................................265 Subscriptions farming magazines / organisations - cost of .............................................................246 Subsoiling - cost of......................................................................................................................279 tractor fuel consumption for......................................................................................226 Summerfruit levies .........................................................................................................................210 trees - amortisation rates (taxation) ...........................................................................571 Sump pump - cost of ...........................................................................................................266 Surveying charges / fees .............................................................................................................240 Swede seed - cost of .............................................................................................................181 Swedes seed, price paid to growers ..........................................................................................65 Sweet pea (lathyrus) seed - cost of .............................................................................................................188 Sweetcorn price paid to growers ...................................................................................................80 seed - cost of .............................................................................................................184 Swimming pools depreciation ...............................................................................................................553

633

T Table grapes - amortisation rates (taxation) ........................................................................571 Tag reader - cost of......................................................................................................................136 Tagasaste trees - cost of .............................................................................................................351 Tail paint - cost of.............................................................................................................138 Tailing equipment - cost of ....................................................................................................137 sheep - contractor charges .........................................................................................147 Tall fescue seed - cost of .............................................................................................................178 seed, price paid to grower ...........................................................................................64 Tallow - cost of......................................................................................................................126 Tally counter - cost of......................................................................................................................133 Tamarillo plants - amortisation rates (taxation).........................................................................572 Tangelo trees - amortisation rates (taxation) ...........................................................................571 Tank septic- cost of ............................................................................................................283 Tanks storage, depreciation (old schedule) .........................................................................563 underground fuel, depreciation (old schedule) .........................................................560 water - cost of ............................................................................................................261 Tarpaulins hay / truck / silage - cost of .......................................................................................219 Tattoos - cost of......................................................................................................................138 Tax Administration Act ...................................................................................................445 Taxable income ................................................................................................................464 TB compensation (cattle) ..................................................................................................20 compensation (deer) ....................................................................................................41 TBFree (Bovine) levies - cost of ...........................................................................................................206 Teat sprays - cost of ..........................................................................................................114 Tedder (hay) - cost of......................................................................................................................302 Telephone charges............................................................................................................242 Terminal tax ..............................................................................................................................452 tax payment dates ......................................................................................................523 634

634

Testing fees plant / feed - cost of...................................................................................................169 seed............................................................................................................................214 soil - cost of ...............................................................................................................169 water - cost of ............................................................................................................169 Thermometer crop storage - cost of .................................................................................................324 dairy floating - cost of ...............................................................................................115 greenhouse propagating / soil - cost of ....................................................................341 silage, hay storage - cost of .......................................................................................324 Thermostats greenhouse - cost of ..................................................................................................340 Timber prices - domestic .........................................................................................................83 prices - export..............................................................................................................83 Timothy dressing and store handling charges .........................................................................213 Tomato levy ............................................................................................................................212 seed - cost of .............................................................................................................184 Tomato glasshouse workers wages ...........................................................................................................................91 Tomatoes price paid to growers ...................................................................................................80 Tools - depreciation.............................................................................................................548 depreciation (old schedule) .......................................................................................561 Top dresser spreader - cost of .......................................................................................................312 Toppers / mowers - cost of......................................................................................................................300 Trace elements supplements (stock water) - XE "Selenium:trace element supplement (stockwater) - cost of" cost of ...................................................................................122 Track Rock cost of ........................................................................................................................166 Traction engines depreciation ...............................................................................................................557 depreciation (old schedule) .......................................................................................563 Tractor depreciation (old schedule) .......................................................................................559 drawn implements - depreciation .............................................................................548 running costs .....................................................................................................226, 227 transport trays - cost of..............................................................................................308 tyres and tubes - cost of.............................................................................................233

635

Tractors - cost of......................................................................................................................297 - depreciation.............................................................................................................548 average prices of .......................................................................................................295 depreciation (old schedule) .......................................................................................563 Trade Weighted Index (TWI) exchange rates ...............................................................................................................4 Trailed Sprayers - cost of......................................................................................................................306 Trailer depreciation ...............................................................................................................557 depreciation (old schedule) .......................................................................................563 licensing fees - cost of ...............................................................................................234 rutbuster (filler) - cost of ...........................................................................................310 tip - cost of ................................................................................................................310 Transferable term fishing quota TTQ ..............................................................................503 Transport equipment depreciation .............................................................................................557 rates - air....................................................................................................................172 rates - inter island ferry .............................................................................................172 rates - roads ...............................................................................................................171 Transportation (logging) - cost of......................................................................................................................354 Travelling (farm epenses) ................................................................................................246 Tray cell seeder - cost of....................................................................................................318 kiwifruit - cost of.......................................................................................................215 Tree expenditure taxation provision ..................................................................................497 guards - cost of ..........................................................................................................355 planting equipment - cost of .....................................................................................354 windbreak cloth - cost of ...........................................................................................355 Trees forestry - cost of ........................................................................................................351 shelter - cost of ..........................................................................................................351 tagasaste - cost of ......................................................................................................351 Trickle irrigation equipment depreciation (old schedule) .......................................................................................563 Trimmers / brushcutters - cost of......................................................................................................................323 Triticale seed, price paid to growers ..........................................................................................61 Trocar cost of ........................................................................................................................101 Trough feed - cost of ......................................................................................................118, 143 Trough valves cost of ........................................................................................................................269 636

636

Troughs cost of ........................................................................................................................262 plastic, cost of ...........................................................................................................262 Truck (farm) depreciation (old schedule) ............................................................................561 cover / tarp - cost of ..................................................................................................219 Trucks utilities, cost of ..........................................................................................................313 Trustees rate of income tax ......................................................................................................524 Trustees income tax .........................................................................................................476 Trusts classification of .........................................................................................................475 liability for income tax ..............................................................................................475 taxation of .................................................................................................................475 Tubes (tyres) - cost of......................................................................................................................233 Tulip bulbs cost of ........................................................................................................................189 Tunnel houses - cost of .........................................................................................................337 Tunnel houses depreciation (old schedule) ...............................................................................561, 563 Tunnels depreciation ...............................................................................................................553 Turf grasses seed, price paid to growers ..........................................................................................64 Turnip seed (crop) - cost of ...................................................................................................181 seed (vegetable) - cost of ..........................................................................................184 seed, price paid to growers ..........................................................................................65 Two-tooths average prices store stock 2010 to 2018e ...................................................................10 Tyre chains depreciation ...............................................................................................................558 Tyre tubes cost of ........................................................................................................................233 Tyres cost of ........................................................................................................................233 U Udder sprays / creams - cost of ............................................................................................114 Udder gun cost of ........................................................................................................................115 Ultrafiltration plant depreciation ...............................................................................................................550 Underground cable electric - cost of ...............................................................................................294 637

637

Underpaid tax interest due on ...........................................................................................................462 Underpass stock - cost of ............................................................................................................330 US Dollar exchange rate to NZ Dollar ...........................................................................................4 Use of money interest taxation provision ..............................................................................................453, 462 Utilities (light commercial) - cost of......................................................................................................................313 V Vaccines cost of ..........................................................................................................................96 Vaginal tape - cost of ..............................................................................................................137 tape/ suture needles - cost of .....................................................................................137 Valuation charges ......................................................................................................................239 fringe benefits ...........................................................................................................508 livestock ............................................................................................................489, 531 nursery stock (hort) ...................................................................................................501 of consumable aids ....................................................................................................489 plants in the ground (taxation) ..................................................................................502 Valuation of livestock - worked examples .....................................................................................537 Valves - cost of......................................................................................................................271 Variable power cost .........................................................................................................406 Vat depreciation ...............................................................................................................548 Vegetable fresh domestic levy ...................................................................................................212 fresh export levy........................................................................................................212 growers ACC levies ..................................................................................................545 harvesters - cost of ....................................................................................................319 plants amortisation rates (taxation) ...........................................................................572 pollination - cost of ...................................................................................................220 Vegetables price paid to growers ...................................................................................................77 Vehicle expenses ....................................................................................................................225 running costs .............................................................................................................229 Vehicles average prices of .......................................................................................................295 depreciation ...............................................................................................................556 licensing fees / registration - cost of .........................................................................234 repairs and maintenance - cost of..............................................................................224

638

Velvet grading / selling charges ...........................................................................................206 pool price.....................................................................................................................41 pool price trends ..........................................................................................................41 weighted avg farmgate price .......................................................................................41 Venison price trends ..................................................................................................................39 prices ...........................................................................................................................39 Ventilation fans (greenhouse) - cost of ........................................................................................341 Vermiculite - cost of......................................................................................................................194 Vessels (fishing) depreciation ................................................................................................551 Veterinary charges - farm visits ....................................................................................................99 Vineyard - administration expenses ..........................................................................................241 - vehicle expenses .....................................................................................................225 - weed and pest control .............................................................................................195 Enterprise analysis ....................................................................................................438 growers drawings (personal expenditure) ...................................................................92 repairs and maintenance ............................................................................................223 Vineyard spraying helicopter - cost of.....................................................................................................203 Vineyard workers wages ...........................................................................................................................91 Vintage wineries .......................................................................................................................70 W Wages dairy employees ..........................................................................................................89 horticultural workers ...................................................................................................91 market garden workers ................................................................................................91 orchard / packhouse workers ......................................................................................91 paid to spouse / partner (taxation) .............................................................................480 PAYE tax ..................................................................................................................449 sheep or beef employees .............................................................................................89 tomato glasshouse workers .........................................................................................91 vineyard workers .........................................................................................................91 Wagons depreciation (old schedule) .......................................................................................563 feed out - cost of........................................................................................................310 mixer - cost of ...........................................................................................................311 Walnut trees - cost of .............................................................................................................191 Walnut tree amortisation rates (taxation) .....................................................................................571 639

639

Wapiti average market values (taxation) ..............................................................................532 stag prices ....................................................................................................................41 Washers depreciation ...............................................................................................................550 Water greenhouse systems - cost of.....................................................................................342 irrigation scheme charges..........................................................................................277 monitoring system components - cost of ..................................................................275 permits - cost of.........................................................................................................273 supply charges ...........................................................................................................272 supply development costs .........................................................................................261 testing - cost of ..........................................................................................................169 towers - depreciation (old schedule) .........................................................................563 troughs concrete - cost of ..........................................................................................262 troughs plastic - cost of .............................................................................................262 Water tanks plastic, cost of ...........................................................................................................261 Water troughs concrete - cost of .......................................................................................................262 Waterblasters - cost of......................................................................................................................321 Waterproof clothing - cost of......................................................................................................................217 Weaner cattle - average prices 2010 to 2018f ..........................................................................17 deer - prices .................................................................................................................40 Weed cloth - cost of.............................................................................................................355 mat - cost of...............................................................................................................355 Weed and pest control ......................................................................................................195 Weed control aerial application - cost of .........................................................................................203 application - cost of ...................................................................................................203 Weigh crates - cost of ...........................................................................................................136 Weighbridge charges........................................................................................................221 Weighing machines - depreciation (old schedule).....................................................................562 Welders portable - cost of .......................................................................................................325 Well drilling - cost of .........................................................................................................268 shallow jet pumps - cost of .......................................................................................264 Wells and bores depreciation (old schedule) .......................................................................................559 Wet booms - cost of......................................................................................................................306 640

640

Wetting agents sprays - cost of ..........................................................................................................201 Wharves depreciation ...............................................................................................................553 Wheat biscuit contracts...........................................................................................................52 dressing charges ........................................................................................................213 drying charges ...........................................................................................................213 feed contract prices .....................................................................................................53 levies - cost of ...........................................................................................................208 price trends ..................................................................................................................53 prices - milling contracts .............................................................................................52 prices - seed .................................................................................................................53 seed - cost of .............................................................................................................182 seed royalties .............................................................................................................209 White clover .....................................................................................................................410 dressing and store handling charges .........................................................................213 herbage seed levy ......................................................................................................207 seed, price paid to growers ..........................................................................................64 Willow trees - cost of .............................................................................................................351 Windbreak cloth - cost of.............................................................................................................355 Windmills - cost of......................................................................................................................265 depreciation (old schedule) .......................................................................................563 Windrowers - cost of......................................................................................................................319 Wine grapes - price paid to growers .....................................................................................70 making equipment - depreciation (old schedule) ......................................................563 Winter milk contracts .........................................................................................................29 Wintering barns depreciation (old schedule) ...............................................................................559, 563 Wintering Pads - cost of......................................................................................................................331 Wire - cost of......................................................................................................................287 electric fence- cost of ................................................................................................293 netting - cost of .........................................................................................................289 Withholding tax - RWT..................................................................................................................451 Withholding payments tax - schedular ...........................................................................................................449 Wood pulp market outlook ............................................................................................................83

641

Wool average auction price ..................................................................................................12 bale stencils - cost of .................................................................................................133 brokers charges .........................................................................................................205 classing charges.........................................................................................................205 pelt payments - lamb (trends) .......................................................................................7 pelt payments - sheep ....................................................................................................8 press - cost of ............................................................................................................132 price - auction..............................................................................................................12 price - impact of exchange rate .....................................................................................3 price - indicator, trends ...............................................................................................13 shed - cost of .............................................................................................................332 sweep - cost of...........................................................................................................133 testing charges ...........................................................................................................134 Woolshed expenses ....................................................................................................................132 Woolstore work ACC levies ................................................................................................................546 Working for Families tax credit ....................................................................................................................469 tax credit amounts .....................................................................................................564 Wrap hay / silage - cost of ..................................................................................................219 Wrapping film - cost of ..............................................................................................................219 Y Yachts rate of depreciation....................................................................................................558 Yard fees - cost of......................................................................................................................204 Yards rate of depreciation (old schedule) ............................................................................562 Yorkshire fog seed - price paid to growers ........................................................................................64 Yorkshire Fog seed - cost of .............................................................................................................178 Z Zero-rating for GST .........................................................................................................516 Zucchini seed - cost of .............................................................................................................184

642

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