Support for Farmers

Written by
MBS Advisors
Published on
June 26, 2020

Farming can be tough and unpredictable.

That’s why having the support – financially and holistically – is key.

Here are some helpful ways you can access assistance during the ups and downs.

The Farm Debt Mediation Scheme

Farmers under financial strain will have access to extra support and guidance from July 2020. The Farm Debt Mediation Scheme, which comes into play on 1 July, provides mediation services to help farmers and their creditors work through debt issues. This means farmers can expect a structured, confidential, and impartial negotiation process that leads to an agreement on how to proceed.

Creditors who lend money to farmers will have to offer mediation before taking enforcement action if farmers default on payments.

Business owners in agriculture, horticulture, aquaculture, apiculture and sharemilking can ask for mediation at any time.

Staying well

Unexpected challenges can put pressure on your business and family, which is why it’s so important to do the little things that keep you sane. Check out www.farmstrong.co.nz for farmer-to-farmer tips and videos (backed by well-being science) on stress, burnout, sleeping, healthy eating, thinking and more.

The Rural Support Trust is also a great resource if you need someone to talk to http://www.rural-support.org.nz/

Tax relief for Mycoplasma bovis farmers

The Government will be introducing legislation to help farmers whose herds were culled in response to the Mycoplasma eradication programme. It will allow you to spread additional income from the cull over the next six years, as long as:

  • the culling of your breeding livestock and your replacements were due to Mycoplasma bovis
  • you’ve used, and continue to use, the national standard cost scheme or the self-assessed cost scheme for your breeding stock
  • you’ve substantially replaced your culled livestock within 12 months.

The legislation is yet to go through Parliament but it will apply retrospectively, from the 2017/18 income year. For more information, head to Inland Revenue’s website.

Remember, asking for help isn’t giving up, asking for help is refusing to give up.

Share this post
Blog

Explore our latest articles

Enjoy our latest news and blog posts

5 min read

Claiming Expenses for Non-Breeding Bloodstock

Taxpayers that breed horses as part of their business can claim expenses for non-breeding bloodstock that may be used for racing. If, as part of your breeding business you have bred a colt that is subsequently gelded for racing, you will need to apply to Inland Revenue to claim further...
5 min read

New Zealand Tenancy Laws Are Changing

New legislation in NZ Tenancy Law brings in a number of changes for landlords and tenants. Below are some of the changes: Increasing Rent - From 12 August 2020, rent increases are limited to once every 12 months. This is a change from once every six months. Required Notice Periods...
5 min read

New FBT Rate

Time to review employee perks Along with a new top tax rate introduced on April 1st, we also had a new top fringe benefit tax rate come into effect. What is fringe benefit tax? Fringe benefit tax, or FBT, is a way of taxing employee benefits. It’s designed to ensure...

Stay updated and sign up to our newsletter

By clicking Sign Up you're confirming that you agree with our Terms and Conditions.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.