Editorial: Sensible move
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Dairy farmers are being urged to keep their budgets tight.
The call from Federated Farmers follows today's announcements from Synlait and Fonterra on the forecast milk price for the season; Fonterra is keeping its payout at $4.70/kgMS while Synlait has lifted its forecast from $4.40 to a $4.50 to $4.70 range.
"Farmers were hoping for some good news, but today's announcement enforces the need to maintain their frugal mindset," says Andrew Hoggard, Federated Farmers Dairy chair.
"The worst is not over yet, with farmers going into winter with the lower payouts starting to take affect and the drought affected regions, meaning farmers will be needing to buy in more supplementary feed than usual.
"What will be the biggest disappointment to farmers today is Fonterra's drop in its dividend. The dividend's role is to reflect the value in Fonterra's value add products. The belief amongst farmers has been that a low farmgate milk price would then reduce the cost of producing value add products which would be reflected in a higher dividend returned to farmers.
"Obviously today's result shows that this isn't the case; Fonterra will need to explain that well, and clearly, to their shareholder farmers."
Hoggard says there not a lot of money in the system this year so the 5c drop in the dividend is going to hurt. "All farmers can do now is sit tight, plan ahead and budget well."
Boutique Waikato cheese producer Meyer Cheese is investing in a new $3.5 million facility, designed to boost capacity and enhance the company's sustainability credentials.
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Compensation assistance for farmers impacted by Mycoplama bovis is being wound up.
Selecting the reverse gear quicker than a lovestruck boyfriend who has met the in-laws for the first time, the Coalition Government has confirmed that the proposal to amend Fringe Benefit Tax (FBT) charged against farm utes has been canned.
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The work Fonterra has done with Ballance Agri-Nutrients Ltd, LIC and Ravensdown to save farmers time through better data connections has been recognised with a national award.