Episode 111 - What rising cow prices mean

Cow prices and livestock values are front of mind across the dairy sector right now, with strong market demand, rising confidence and shifting tax implications all shaping decisions for farmers buying, selling or expanding herds. In this episode of the Dairy Country podcast, Anne Lee speaks with Chris Lewis from BakerAg, Jamie Cunninghame, National Dairy Specialist at PGG Wrightson, and Trudi Ballantyne from Stem Rural about what’s driving current cow values, what it means for farm business decisions, and why understanding both market conditions and tax settings is becoming increasingly important. Host: Anne Lee, Senior Journalist, Dairy Country Guests: Trudi Ballantyne, Stem Rural Chris Lewis, BakerAg Jamie Cunninghame, PGG Wrightson   Chris Lewis says confidence is strong across the sector, underpinned by solid milk returns, strong beef prices and relatively favourable feed costs. He says demand is currently being driven largely by farmers looking to top up herds with smaller numbers of quality cows, rather than full herd purchases, while strong prices are also encouraging trading activity. Chris adds that high cow values are creating equity-building opportunities for existing owners and share milkers, but careful attention to debt levels and downside risk remains essential. Jamie Cunninghame, National Dairy Specialist at PGG Wrightson, says the market was sparked early by conversion demand and has remained consistently firm through the season, with strong competition for quality cows. He says good in-calf heifers and dairy cows are generally trading between $2800 and $3300 a head, with occasional higher outliers depending on quality and scale. Jamie also notes that strong cull cow and beef schedules are helping underpin overall confidence, while farmers who build into larger operations progressively tend to carry less risk than those entering through full herd purchases at current prices. Trudi Ballantyne from Stem Rural says rising cow values make livestock accounting and tax planning increasingly important, particularly when it comes to understanding the National Standard Cost Scheme versus the herd scheme. She steps listeners through both schemes and explains that the scheme a farmer is on, along with the timing of livestock sales, can have a significant impact on tax outcomes, especially in periods of rising values. Trudi stresses that working with an accountant who truly understands livestock valuation is critical, as incorrect treatment or poor timing decisions can lead to unexpected and potentially large tax liabilities.   Sign up to the weekly DAIRY Country email newsletter here: https://dairycountry.co.nz/sign-up/See omnystudio.com/listener for privacy information.