Farm budget manual 1983 financial volume 1 - Lincoln University ...

1.3.2 Development Expenditure
Refer to Taxation Section.
1.3.3 First-Year Taxation Allowances - Buildings, Plant
and Machi nery
Refer to Taxation Section.
1.3.4 Stock Loans
(i) Short Term (5 to 7 years):
Sharemi 1 kers and other farmers who do not own the
1 and they farm may obtain loans to purchase stock
and plant.
Reasonable security of tenure, or a satisfactory
50/50 sharemilking agreement (normally 3 years) is
needed. Provi ded the appl i cant can meet hi s commitments
and make a reasonable contribution from his
own resources, a loan of up to 60% of the market
value of stock and plant may be advanced on the
basis of first instrument by way of security over
the stock (and, if necessary, the pl ant).
(ii) Long Term (10 to 25 years):
These loans are available for stock to be purchased
or increased (through retenti on of stock that woul d
normally be sold) in association with development or
the purchase of additional land; and for the
purchase of stock for diversification, where the new
stock is more costly per unit or where a change from
dry stock to breeding stock is being made. Loan
limits and security are flexible.
1.3.5 Maori Land Board Loans
[Rural Banking and Finance Corporation]
The Maori Land Board provides loan finance to experienced
farm workers of Maori descent to purchase stock and plant
for sharefarming purposes (see section 1.2.3).
1-11
[Department of Maori Affairs]