Beyond the Balance Sheet: Specialized Accounting for Hawke's Bay's Farming & Property Sectors

• Sheep and beef farm profitability is forecast to jump by a staggering 89 percent in the coming season.
• The New Zealand farm sales market is experiencing a dramatic recovery, presenting significant investment opportunities.
• Local challenges, like the current "green drought" in Hawke's Bay, demand specific and proactive financial strategies.
• Generalist accountants often lack the deep industry knowledge required for complex farm and property accounting, which can be a costly mistake.

It’s a fascinating time to be in the agricultural sector. On one hand, the outlook is incredibly bright. According to the Ministry for Primary Industries, sheep and beef farm profit before tax is forecast to increase by a staggering 89 percent in the 2024/25 season. That’s not a typo. An 89 percent jump.

For farmers and rural business owners in Hawke’s Bay, this signals a massive opportunity. But we know it’s never that simple.

In our experience, these moments of huge potential are often paired with unique local pressures. It’s this very mix of high stakes and specific regional challenges that makes specialist financial advice so critical. A standard approach just won’t do when your livelihood is on the line.

The positive news isn't just about profitability. The entire market is buzzing with activity. We're seeing a major recovery in farm real estate, which is a fantastic sign of confidence in the industry. For the fiscal year ending in June 2025, the number of dairy farm sales surged by 100% in Southland and 53.5% in Canterbury.

While those figures are for other regions, the ripple effect is felt right here in Hawke's Bay. It tells us that the market is active and asset values are strong. Whether you’re considering expansion, succession planning, or selling up, these conditions create openings. But making the right move requires a solid financial strategy and an accountant who understands the intricate tax implications of large agricultural transactions, from GST on land sales to livestock valuation.

Now for the other side of the coin. While national reports paint a rosy picture, we’re on the ground with our clients, and we see the immediate challenges they face. Right now, that challenge is the "green drought". The landscape might look green, but a lack of real soil moisture is putting immense pressure on feed conservation.

This isn't just a farming headache; it's a direct financial threat. We’re seeing the impact in the stockyards. Local reports show that in October 2025, store cattle tallies hit 3,660, one of the highest levels since 2008. This reflects farmers being forced to offload stock under pressure.

When you're forced to sell, you're not in control. It can disrupt your cashflow, trigger unexpected tax events, and derail your long-term planning. This is where proactive advice becomes invaluable. A common mistake we observe is waiting until the end of the financial year to deal with the consequences. A better strategy is to get on the front foot with cashflow budgeting and tax planning the moment these pressures appear.

So, do you really need a specialist farm accountant? In our view, absolutely.

Farm accounting is its own unique beast. It involves far more than just profit and loss statements. We’re talking about complex areas like livestock valuation schemes, understanding farm-specific depreciation, and navigating the tax rules around farm ownership structures. A generalist accountant, who might be excellent at handling a retail business, could easily miss the nuances that are second nature to a rural specialist. We've seen firsthand how an incorrect livestock valuation can create a significant and unforeseen tax bill for a client.

It’s about knowing the industry, not just the numbers.

This need for specialised knowledge isn't limited to the agricultural sector. We see the same patterns with property investors. The financial landscape for landlords in New Zealand is constantly changing, with shifting rules around depreciation, interest deductibility, and compliance. Using the right ownership structure, whether it's a trust or a look-through company (LTC), can have a massive impact on your tax efficiency and asset protection.

An advisor who doesn't specialise in property may not be across the latest changes or the most effective strategies for your portfolio. Getting it wrong can cost you thousands.

With massive opportunities on the horizon and real challenges on the ground, a 'wait and see' approach to your finances is too risky. True financial management is about being proactive. It’s about building a robust budget, planning for your tax obligations, and having a clear strategy to achieve your long-term goals, whether that’s growing your wealth, planning for retirement, or passing the farm to the next generation.

No one knows your business better than you. Our job is to provide the expert financial framework to help you succeed.

The best way to start is with a simple conversation about your specific needs. We're here to help you make sense of it all. We invite you to schedule a free, no-obligation consultation with our team to discuss your business and your goals. Let's build a plan that suits you.

Disclaimer

The information provided in this article is for general informational purposes only and is not intended to constitute professional financial or tax advice. All information is provided in good faith; however, we make no representation or warranty of any kind regarding its accuracy or completeness. You should not act or refrain from acting based on this information without first seeking professional advice from a qualified chartered accountant who can consider your individual circumstances.