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

I Run a Motel/Boarding House – What Can I Claim With Tax?

I run a Motel/Boarding House - what can I claim? Inland Revenue have released an exposure draft on the deductibility of expenses incurred by hotels, motels and boarding houses. The release focuses on these businesses where the proprietor lives on-site. In short, the release clarifies how to account for private...
5 min read

Where Are Your Hard Earned Savings Ending Up?

Return On Investment (ROI) OCR New Zealand’s official cash rate (OCR) has been at 0.25 since March 2020 and this has reduced the return Kiwis can get on bank deposits. As bank deposit interest rates are currently very low (below 1% return) with no foreseeable increase in the next 1...
5 min read

Business Acquisition Expenses – Deductions Allowed

Businesses often incur expenses when acquiring business assets, even if the acquisition is abandoned and does not proceed. A recent review has occurred on the deductibility of these costs. In the past, an expense relating to the purchase of an asset that wasn’t successful could not be claimed as an...

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.