Lockwood Smith Praises Marlborough Community in Dealing with Drought

The Minister of Agriculture, Lockwood Smith, today praised the efforts of farmers, Federated Farmers and the local community for the way they had pulled together to cope with the effects of the drought in Marlborough.

Today Dr Smith toured drought affected areas in Marlborough and met with local farmers and their families to get a first hand impression of the extent and seriousness of the drought.

Also discussed were the various mechanisms the Government has to assist farmers who find themselves affected by adverse climatic conditions.

"There is no doubt this is a severe drought, and it is taking a total on the people affected," said Dr Smith. "You know things are bad when pine tress and even gorse are dieing through lack of water," he said.

"But, farmers themselves have taken early and decisive actions to minimise the effects of the drought. Many farmers have de-stocked early and now retain only essential breeding herds. In addition Federated Farmers has done a great job coordinating the local relief effort.

"As a result the condition of livestock in the area is very good, and that is a credit to all involved," said Dr Smith.

Also discussed was the important issue of tax liability. Because many farmers have been forced to sell animals that they would normally have retained as breeding stock, they may in fact be faced with large tax bills this year. However, as a result of this de-stocking farmers are likely to have low incomes next year.

To address these sorts of situations the Government has put in place a scheme that allows drought affected farmers to smooth out their incomes over a number of years.

Other taxation issues discussed included the payment of provisional and terminal tax. Those farmers affected should talk to their accountants or local Inland Revenue office as soon as possible about their options.

"But despite the excellent response to the drought thus far the worst may not be over," Dr Smith warned.

"Rain within the next two months is absolutely crucial to avoid a major disaster. Without grass growth prior to winter many farmers won't have enough feed to maintain even minimum breeding herds for next year. Obviously the Government will be monitoring this situation closely," Dr Smith concluded.