Rural round-up

September 6, 2017

Ag-tech edge requires boldness – Conor English:

Just as the axe handle allowed the human race to prevail, New Zealand needs to put its mind to discovering the next combination of technologies that is going to keep our country at the forefront of ag and food technology.

That is going to take capital, risk, and some out-of-the-box thinking.  There is much to do if we want to lead the race, writes Conor English.

The axe handle was incredibly important for the human race.

By combining three previously separate elements — a stone, a stick and string — humans invented a tool that gave them leverage and strength to better hunt animals that were faster and stronger than us. . . 

New technologies helping clean up NZ’s waterways:

New Zealand farmers and companies are starting to use Internet of Things (IoT) sensors, data analytics and automation to decrease impact on New Zealand rivers, a leading national tech expert says.

In countries, right across the world the IoT devices are being used to help clean up water, New Zealand IoT Alliance executive director Kriv Naicker says.

Irrigation is by far the largest use of water in New Zealand, making up 65.9 percent of water use between 2013 and 2014, the Ministry for the Environment says. . . 

Farmers becoming ‘lepers’ due to cattle disease scare – Gerard Hutching:

South Canterbury and Otago beef farmers are unwitting victims of the cattle disease Mycoplasma bovis even though testing so far has shown their livestock are free of any traces of the disease.

A farmer who rears calves as dairy support told Stuff he had a contract worth $100,000 for 200 calves cancelled as soon as the buyer heard the animals were being tested.

The Ministry for Primary Industries (MPI) has indicated these farmers will not be eligible for compensation. . . 

Provisional tax relief at last – Chris Cunliffe:

Provisional tax has long been difficult to get right and expensive to get wrong.

But not anymore: the much-maligned old rules have been put out to pasture.

These assumed farmers and growers could correctly forecast their income tax liability ahead of time, but if their prediction was not spot-on they got slapped by Inland Revenue’s steep interest on top of the underpaid amount.

Now new rules provide greater certainty about payments and reduce compliance costs for businesses who calculate their payments using the standard method. This method means you base your payments on 105% of last year’s income tax liability (or 110% of the previous year’s liability if your return has not been filed). Most taxpayers pay provisional tax this way. . . 

Dunedin produces mastitis diagnostics – Sally Rae:

A Dunedin-based startup has produced a diagnostic test kit to help farmers deal with the costly problem of bovine mastitis.

Mastitis, which is inflammation of the udder, is a major financial burden to the dairy industry, both in New Zealand and globally.

It was predominantly treated using antibiotics and mastitis treatment was the largest single use for animal health antibiotics.

On average, it was estimated to cost about $60,000 a year for an 800-cow herd, and the industry, as a whole, about $280 million.

Mastaplex founder Dr Olaf Bork has been developing products for treating mastitis at the Bayer Centre for Animal Health, before patenting his own research and founding the startup company. . . 

Wet flattens milk curve – Hugh Stringleman:

The extraordinary number of wet days over winter has raised the worry of a repeat spring milk production plateau rather than peak.

Soils in almost all dairying districts were saturated and fine weather was needed to kick-start spring grass growth and milk production.

Dairy farmers in northern provinces had almost completed the extended winter pasture feeding rotation when cows were break-fed the saved autumn pasture growth for 90 days. . . 

Major increase in community conservation funding:

Conservation work in New Zealand will be supercharged by substantially increasing the amount of money available to hard-working volunteer groups, National Party Conservation Spokesperson Maggie Barry says.

“We have a beautiful natural environment, and the efforts of local communities are crucial to protecting our landscape and native species for future generations,” Ms Barry says.

To support these groups, National will more than double the amount of funding available through the Department of Conservation Community Fund, from $4.6 million to $10 million a year. . . 

Spring farm sales upturn expected – Alan Williams:

Winter calving and lambing preparations and rainfall impacts have slowed the rural real estate market but prices have remained firm.

With an increased milk payout and higher beef prices “a quiet air of confidence or perhaps relief is quietly growing with the rural sector”, Real Estate Institute rural spokesman Brian Peacocke said.

Sales for the three months to the end of July were down by 76 to 392 compared to the end of June when there were 459 sales. In the July period last year there were 468 sales. . . 

New Zealand King Salmon fy17 result and dividend exceed expectations:

A combination of operational achievements and a successful market positioning strategy underpins strong growth for New Zealand King Salmon Investments Ltd which today reported its full year result for the twelve months to 30 June 2017 (FY17). The Board affirms the Company’s full year FY18 forecast as presented in its Product Disclosure Statement (PDS) dated 23 September 2016, prepared for its Initial Public Offering (IPO).

Key highlights include:

• Net profit after tax of $22.8 million, up 778% on the comparable twelve month period to 30 June 2016 (FY16) and 125% ahead of the Prospective Financial Information forecast (PFI) . . 

Fieldays reveals post-event survey results and theme for 50th anniversary in 2018

Results from a recent visitor and exhibitor survey has New Zealand Agricultural Fieldays celebrating another successful year as preparations begin for their 50th anniversary event in 2018.

In the survey, 96 per cent of visitors rated their experience of Fieldays 2017 as “good” to “excellent” and 92 per cent of exhibitors said they would exhibit again.

The iconic event, billed as the largest of its kind in the southern hemisphere, saw a record 133,588 people through the gates – its highest visitor number yet. . . 


Provisional tax changes small but welcome difference

February 4, 2009

Provisional tax is the business equivalent of PAYE on wages and salaries with one significant difference.

PAYE is levied on money actually earned, provisional tax is paid on a best guess of what will be earned and there are financial penalties if  your income is higher than expected.

That means businesses are caught between the rock of paying more in advance than they need to by overestimating their projected earnings, and the hard place of paying the penalties if they underestimate their end of year’s financial situation.

It’s not easy for any business to accurately predict its income and it’s particularly difficult for primary industry where the weather and markets can vary so much but the government has announced two changes to provisional tax today which will reduce the costs:

* Removing the 5% “uplift” rate that businesses pay in advance on provisional tax instalments throughout the year. To calculate the provisional tax they must pay in any given year, most businesses use the previous year’s income and add 5% to cover likely growth in the new income year – this 5% uplift will be removed for the rest of this year and next year.

*Reducing the “use of money” interest rates on underpaid and overpaid tax. The rate for underpayments will reduce from 14.24% to 9.73% and the rate for overpayments will fall from 6.66% to 4.23%. These changes will apply from March 1 2009.

These and other measures announced in the small business relief package are, as the NBR says more evolution than revolution but what else can they do?

The domestic constraints on business have been evolutionary too and there is no fast or simple remedy for them. Added to that is the global financial situation which will impact on us but is beyond any government’s control.

However, while the measures announced today may be relatively small they are significant in that they show we at last have a government that understands the importance of businesses and is prepared to cut some of the ties which have been holding them back.

There’s a story about a man wandering along a beach littered with starfish stranded when the tide went out.

He comes across a boy throwing them into the sea and says,  “There’s so many nothing you do will make a difference.”

The boy bends down, picks up a starfish, throws it back and says, “I made a difference to that one.”

The government must feel it’s facing a similarly impossible task, but Keeping Stock says today’s measures have made a difference to him.


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