Concession urged for farm investment

Press, Volume CXII, Issue 33049, 17 October 1972, Page 16

Concession urged for farm investment

The Society of Farm Management is urging the Government to extend from 25 per cent to 50 per cent the assessable income which farmers may transfer to their income equalisation accounts.

The president of the society, Professor J. D. Stewart, professor of farm management and director of the agricultural research unit at Lincoln College, said he believed that the Government should widen the scope of the income equalisation scheme “in the event of current wool and lamb prices holding throughout the season.” Present legislation limits the amount which can be placed in an equalisation reserve to 25 per cent of the farmer’s assessable income in any one year. The funds are taxable on withdrawal. “Members of the society—a large proportion of whom are involved in farm management advisory and consulting work—are concerned that the industry be given the opportunity of utilising

this year’s revenue effectively.” said Professor Stewart. “It is clear that these funds will largely be ploughed back and it is in the national interest that they should be. "There has been a lot of maintenance deferred over the last four years and the present prices will lead to a renewed interest in farm development. The funds will be utilised more efficiently and there will be less pressure on merchandise such as fencing materials and fertiliser, and on store stock such as cattle, if these expenditures can be ■spread more widely than the 25 per cent limit allows. “An extension of this limit ;to 50 per cent would enable : farmers to plan their financial management much more effectively,” Professor Stewart said.