This time last year I wrote about the beneficial impact to the New Zealand economy of the wet summer as city folk complained about the lack of sunshine during January and February 2012.
Twelve months on and the tables have turned. Sun worshippers and beach goers have had their wishes come true this year with summer recording exceptionally high sunshine hours. Now it is the turn of the farmers to suffer as the country is engulfed in a drought.
Auckland and Northland, amongst other regions, have been declared drought zones and the forecast for rain over the next month or so doesn’t look promising. Many dairy farmers have gone down to once a day milking and beef and sheep farmers are selling stock due to lack of grass. The combination of drought conditions and the high dollar has resulted in a difficult summer for the rural sector.
Having recently sold some weaner heifers at market I have experienced the financial impact of the dry summer. Prices are well down on the previous year as sellers outnumber buyers. Breeding cows too are being sent to the works earlier than normal due to the drought. The drought conditions will impact upon production over the next 12 months.
Due to the importance of the rural sector to the NZ economy it is inevitable that the rest of the country will be affected if the drought continues. So the next time you hear a radio DJ say “it’s going to be another glorious day in Auckland” spare a thought for the farming community. I know I certainly will.
In this newsletter you’ll find a mixture of news, commentary and reminders about:
- Rezoned Land Tax
- UHY client wins at NZ Home of the Year (again)
- UHY client wins at Men’s World Softball Championship
- Holiday Homes – New Tax Rules from 1 April 2013
- Residential Rental Property treatment of depreciation and losses
- Tax Avoidance – voluntary disclosure deadline looms
- Upcoming Tax Dates and Penalties for late filing GST
- Significant Tax Changes from 1 April 2013
- UHY Staff comings and goings
Please give us a call if there’s anything you’d like to discuss.
And pray for rain!
T: 09 839 0299
M: 021 220 5817