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.
Forget about a trifecta of looming taxes, it’s a "pick six", says Federated Farmers Dairy chairman Chris Lewis.
He says opposition parties propose to slap six new taxes on farmers: land tax, capital gains tax, carbon tax, water tax, nitrogen tax and inheritance tax.
“I’m not a TAB betting man but we aren’t just facing a trifecta of taxes; it’s clearly a pick six,” he told Rural News online.
He was commenting on DairyNZ saying the Greens and Labour policymakers want to hit dairy farmers with a trifecta of environmental taxes that could average $18,000 per year for each farm.
And the cost to farmers who draw water for irrigation would exceed $63,000 per year, says DairyNZ chief executive Tim Mackle.
“But unlike winning the trifecta at the horse races, there’s nothing for NZ dairy farmers to celebrate,” says Mackle.
“Our economists calculate that the proposed carbon tax would add an average of $6850 to each farm’s costs, the nitrogen pollution tax would add $11,232 per farm, and then there’s Labour’s proposed water use tax which would add a further $45,000 average for farms irrigating.”
Of NZ’s 12,000 dairy herds, 2000 use irrigation.
“The tax trifecta would severely reduce dairy farm profitability, and possibly demand extra borrowing for some farmers to meet expenditure. It would impact the success of our rural economy and put at risk the livelihood of our rural communities.”
Lewis says the Greens and Labour are trying to tax farmers out of their livelihoods. He recently saw Waikato farmers angry about the proposed taxes.
“Farmers realise these opposition parties are using these taxes to leverage more support from urban voters.”
Lewis says Greens and Labour leaders told the Feds annual conference three months ago in Wellington that they would work with farmers and there “wouldn’t be a Punch and Judy show”.
“Those words meant nothing,” says Lewis.
Recent years have seen farmers doing a lot to improve water quality and riparian planting, he says.
“We know that like any industry we still have a couple of cowboys, but their number is getting less and less.”
Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
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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