Livestock 2019 Herd Scheme Values released by the IRD Livestock 2019 Herd Scheme Values (National Average Market Values) have just been released by IRD and for once have not given us too many surprises. Many of our herds in New Zealand are based on Herd Scheme values whether it is for Dairy or Beef Cattle, sheep, goat, deer and pig farmers The other commonly used valuation method is National Standard Cost (NSC). This is the "standard" rearing and growing cost which is announced in January each year, but is affected by the actual purchase oosts on each individual fam so actual NSC values are not consistent between farms. They bare also usually lower than Herd Scheme values. Firstly looking at Dairy Cattle values, these have decreased only slightly for all age groups Values affect decisions such as whether stock from the 2018 values. For example a moxed age cow has decreased from $1,529 in 2018 too remembering that once they are on Herd $1,513 for 2019. For the first time for many years, this is the smallest change we have seen. With milk prices on the increase we would normally be expecting livestock values to generation. And cessation of farming prior to follow suit as it has done in the past. However, 1st November may mean livestock values from the current economic climate is one of uncertainty and farmers have been reluctant to pay high prices for their stock. on NSC be transferred to Herd Scheme, Scheme it is near impossible to reverse this. Also, there are complex rules for selling to associated parties, including to the younger the previous year need to be used See the table below comparing Herd Scheme values for Dairy Cows, Beef cows, mixed age Ewes and Does over one year for the past four years Beef cattle have also resulted in slightly lower values except for breeding beef bulls, which have bucked the trend and increased substantially from $3,004 in 2018 to $3,407 in 2019. Remember this is the value of a bull owned by a bull beef breeder, not for a bull simply on-hand to be used for mating with the cows. These would be valued as the lower 2016 2017 201 209 Joint Photographer of the Year Braden Fastier 1.356 Maed Age Dairy Cow t649 1529 153 1273 Mand Age Beet Cow 1431 1497 1355 value as rising two-year steers and bulls, for example, which is only $1,209. Med Age Ewes 117 131 00 190 383 Dary Goats over one Year420 400 414 stuff Sheep values show a small increase which refiects the improvement we have seen in prices of both sale yard store lambs and works prices recently. Similarly the value of dairy goats increased slightly. Valuation schemes can seem confusing, but we can think of herd scheme valuations as a system that with constant stock numbers there will be no tax effect over the years even with fluctuating prices. The actual values are arrived at by stock vaulers throughout the country valuing good quality on farm animals and based on actual sales data. Best news website or app Excellence in voyager. Media Awards 2019 New Zealand JOURNALISM Update by Coral Phillips, Director at CooperAitken. Please feel free to call us on 07 889 7153 for expert assistance with your farming needs. Visit our website at www.coooperaitken.co.nz ountants cooperaitken Orng freedom your business Livestock 2019 Herd Scheme Values released by the IRD Livestock 2019 Herd Scheme Values (National Average Market Values) have just been released by IRD and for once have not given us too many surprises. Many of our herds in New Zealand are based on Herd Scheme values whether it is for Dairy or Beef Cattle, sheep, goat, deer and pig farmers The other commonly used valuation method is National Standard Cost (NSC). This is the "standard" rearing and growing cost which is announced in January each year, but is affected by the actual purchase oosts on each individual fam so actual NSC values are not consistent between farms. They bare also usually lower than Herd Scheme values. Firstly looking at Dairy Cattle values, these have decreased only slightly for all age groups Values affect decisions such as whether stock from the 2018 values. For example a moxed age cow has decreased from $1,529 in 2018 too remembering that once they are on Herd $1,513 for 2019. For the first time for many years, this is the smallest change we have seen. With milk prices on the increase we would normally be expecting livestock values to generation. And cessation of farming prior to follow suit as it has done in the past. However, 1st November may mean livestock values from the current economic climate is one of uncertainty and farmers have been reluctant to pay high prices for their stock. on NSC be transferred to Herd Scheme, Scheme it is near impossible to reverse this. Also, there are complex rules for selling to associated parties, including to the younger the previous year need to be used See the table below comparing Herd Scheme values for Dairy Cows, Beef cows, mixed age Ewes and Does over one year for the past four years Beef cattle have also resulted in slightly lower values except for breeding beef bulls, which have bucked the trend and increased substantially from $3,004 in 2018 to $3,407 in 2019. Remember this is the value of a bull owned by a bull beef breeder, not for a bull simply on-hand to be used for mating with the cows. These would be valued as the lower 2016 2017 201 209 Joint Photographer of the Year Braden Fastier 1.356 Maed Age Dairy Cow t649 1529 153 1273 Mand Age Beet Cow 1431 1497 1355 value as rising two-year steers and bulls, for example, which is only $1,209. Med Age Ewes 117 131 00 190 383 Dary Goats over one Year420 400 414 stuff Sheep values show a small increase which refiects the improvement we have seen in prices of both sale yard store lambs and works prices recently. Similarly the value of dairy goats increased slightly. Valuation schemes can seem confusing, but we can think of herd scheme valuations as a system that with constant stock numbers there will be no tax effect over the years even with fluctuating prices. The actual values are arrived at by stock vaulers throughout the country valuing good quality on farm animals and based on actual sales data. Best news website or app Excellence in voyager. Media Awards 2019 New Zealand JOURNALISM Update by Coral Phillips, Director at CooperAitken. Please feel free to call us on 07 889 7153 for expert assistance with your farming needs. Visit our website at www.coooperaitken.co.nz ountants cooperaitken Orng freedom your business