tag:blogger.com,1999:blog-5404820640426099135.post6871902892396118792..comments2023-10-31T00:46:35.316+13:00Comments on Anti-Dismal: The family owned farmPaul Walkerhttp://www.blogger.com/profile/13731003529546075700noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5404820640426099135.post-70974145703106959202012-10-08T16:50:26.926+13:002012-10-08T16:50:26.926+13:00There's also what Bill English refers to as th...There's also what Bill English refers to as the live it and love it factor: http://www.interest.co.nz/rural-news/60650/large-corporates-foreign-farm-owners-often-realise-they-have-live-it-and-love-it-mahomepaddockhttps://www.blogger.com/profile/08596903968235369282noreply@blogger.comtag:blogger.com,1999:blog-5404820640426099135.post-49160012711273804992012-10-07T17:07:42.105+13:002012-10-07T17:07:42.105+13:00I think you are significantly over simplifying the...I think you are significantly over simplifying the structure of farming - specialisation in different stages of the 'nature' cycle is definitely increasing... witness the emergence of dairy support blocks owned by people who only do that, or specialist finishing properties - where the farmers only engage in 'finishing' stock before going to the 'works'... <br /><br />Also witness the emergence of the specialist farm manager as a career professional. <br /><br />Three very quick examples off the top of my head...<br />Horace the Grumpnoreply@blogger.comtag:blogger.com,1999:blog-5404820640426099135.post-3141033885786730832012-10-07T15:30:43.802+13:002012-10-07T15:30:43.802+13:00Mark, yes tax is an issue with all forms of busine...Mark, yes tax is an issue with all forms of business organisation. The thing about farming is that the tax treatment of it differs widely around the world and yet we see family farms all around the world. So something in addition to tax is driving the use of the family farm.Paul Walkerhttps://www.blogger.com/profile/13731003529546075700noreply@blogger.comtag:blogger.com,1999:blog-5404820640426099135.post-23335768506796658032012-10-07T11:19:09.582+13:002012-10-07T11:19:09.582+13:00What a pity that the associated persons rules with...What a pity that the associated persons rules within our tax legislation now often make family farm transactions, particularly restructuring and succession, more difficult, and more expensive, than dealing with complete stranger third parties.<br /><br />For example, if your herd is on the Herd Scheme, you are a company and you sell to third party: no issues. Sell to your son or daughter, you create a disastrous dividend, so end up in convoluted restructurings to try and put you back on the same footing, that probably half the time imperil you on the tax avoidance provisions.<br /><br />I can see why the associated person rules exist, however, the unintended consequence (as with the welfare state) has been to make things even harder for the traditional family unit.Mark Hubbardhttps://www.blogger.com/profile/02541153163041831880noreply@blogger.com