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INCLUDED THIS MONTH; The long and overwhelming to-do list of a dairy farmer, by Gavin Haddon. 31 March Balance Date New Financial Year ACC CPX Renewals Using the correct tax code Proud to Support download here

Have you ever been served 100 tennis balls at once and expected to return each one with accuracy? – and when you don’t you are penalised! This is how a client described owning a dairy farm now with the outrageous level of compliance all are expected to achieve. Being totally confused by bombardment of expectation I sat down and started jotting down the on-farm compliance I am expected to conform with on my own farm. The list is still not complete.  I started with my Dairy Company Supply agreement which in itself is quite complicated and should be read.  The next hurdle I thought I should action is ensuring I have copies of my Resource Consents to take Ground Water. I notice they do have an expiry date which is worth noting in your diary. A complicated document on its own.  Being proactive I installed a meter and the readings are regularly sent to WRC. Just as well I do as late one Wednesday afternoon recently, I had a phone call from the Council saying they are conducting a spot audit the next morning. With slightly less sleep than usual the meeting went well, however they had no record of my meter readings. When they did however discover them, I now have an issue of using too much water and have to re-apply – Ouch. Hence a warning letter received shortly after. My Dairy Effluent Storage Calculator is an interesting beast. I have put my faith with the experts on this one along with the Actual Area Dairy Effluent Calculator. Yes, the sprinklers and irrigators are all calibrated and hopefully not spreading too heavily. No, it’s not ending up in the river! Heck, you should see my “Whole Farm Soil Test Fert Map & Plan”. A weighty document I have invested in to ensure no excess Fertiliser usage and my nitrogen application is under 190units/ha. That’s taken some precision calculating so not to be penalised. My Farm report now says my GHG CH4 (methane emissions) is 8495 and my GHG N2O (Nitrous Oxide Emissions) is 2098. Umm, the graph also shows 25KG/Ha/Yr Nitrogen Loss and 27% Nitrogen Conversion Efficient. My farm is in the middle of the graph so I must be ok, who knows. What about my Farm Environmental Plan? That’s on the to-do list. I’ve just found my Sustainable Dairying Water Accord. Again, I’m in the middle of the graph so I must be ok? QCONZ emailed and we booked in for the annual shed inspection. Mostly good but a few small issues that needed addressing. The incorrect soap at the hand basin was an easy fix however on the return visit I did have a little too much “manure” on the yard. It may have been because we have been trying to save water. Anyway, we survived that curve-ball! What’s next, well the milking machine test. Another hold your breath invoice turning up!, but we managed that one as well. All this methane gas has caused global warming and now my milk is too warm. Our farm was outside its “Milk Collection Temperature Specifications”. It sounded like an expensive fix (and it was). Concrete pads, ice banks, wiring, plumbing, the works but hey – I’ve got cold milk now. Another invoice, My Overseer annual subscription expired. I suppose I have to pay it to keep compliant. Thinking I’m on top of it all I received a phone call from the Dairy Company. “Ah Gavin, I’m just informing you that we are changing our tanker configuration and unfortunately you will have to restructure your entranceway so the tanker can pick up your milk”. Well at least I had a year to do it and a few more dollars from the same dairy company to spend on it. That invoice is still coming. A lovely lady rang me recently and said, “Gavin- do you think farming clients are up to speed with ensuring their workers houses are compliant?” I said – “I doubt it” knowing full well most aren’t! She responded – “I think they need help!” Well, you may as well start with my farm houses. Taking the appropriate step, I engaged her and received a very thorough report which suggested why I am legally obliged to get these houses to standard. – I said thank-you but yet more money to allocate. Due to my excellent sharemilker, I do own jackets from our Dairy Company with the words “Grade Free” embroidered. BUT speaking of sharemilkers I’ve just met with mine to discuss animal welfare compliance – That’s another article. We as Accountants are compliance driven. Compliance is our life. The reason I wrote about this is to encourage our clients to talk to their accountants about it, see how we can help with revenue versus capital expenditure, depreciation rates, tax deductions and low interest loans. Furthermore, we want to make you aware of your legal obligations. We are anticipating helping our farmers more and more in this space as time goes on. For the reasons above the Groundswell movement has gathered traction. Farmers are generally compliant but the volumes of policies are excessive and continue to increase and change. I also hope our non-farming readers understand more about what the HOOHAA is all about. download a copy Gavin HaddonDirector, CA P: 07 868 9945E: gavin@cooperaitken.co.nzM: 027 221 0130  

Due to a recent sharp rise in the number of complaints received by MBIE relating to the dairy sector, the Labour Inspectorate, along with the Tenancy Compliance Investigations Team, will start visiting dairy farms from late February to assess their compliance with minimum standards of employment and tenancy. This is now a focus area for the Inspectorate, and follows similar exercises first undertaken in 2013. According to Labour Inspectorate Regional Manager Callum McMillan, “The key objective of the visits is to ensure better compliance in the dairy industry across minimum employment and accommodation standards. This will include looking at employment agreements, record keeping and ensuring payments of at least the minimum wage. Of key importance will be the ability to produce records to show compliance in this area, this includes time and attendance records – i.e. timesheets & leave taken records. “We have had success working in close partnership with the dairy industry, to ensure this important part of New Zealand’s economy is meeting their obligations under labour and tenancy laws. “As part of this industry-wide exercise, labour inspectors will talk with employers and employees, review records and we will also be accompanied by officers from MBIE’s Tenancy Compliance and Investigations Team to assess standards of onsite accommodation for farm workers. “More broadly, these visits will check that if a dairy sector employer is providing housing to their employees, that its compliant with the Residential Tenancies Act 1986 and that it meets the minimum standards aimed at ensuring the homes are warm, dry and safe.” Warranted Labour Inspectors plan to visit farms in both the North and South Islands. “The industry has taken some steps over the last few years by setting expectations and establishing assurance systems and has support readily available for dairy farmers on matters of employment. “These visits are an opportunity for employers to demonstrate compliance, but if noncompliance is found, the Labour Inspectorate and TCIT will consider the appropriate response which may include the issuance of infringement notices.” Here at Cooper Aitken we have the knowledge, expertise, and industry experience to help you negotiate any of the issues raised in the above article. If you need help and/or support, please contact us on 0800 866 191 or email mail@cooperaitken.co.nz.

Life in general moves so fast nowadays and often we don’t put time aside for things that matter, as we navigate the hustle and bustle of everyday life. Sometimes these things include time to pursue a hobby, our health and well-being, and sometimes it is the big questions like – what happens when I’m not here anymore. As professionals, unfortunately it is a common reality for us to witness the fallout of under preparedness in terms of business and succession planning. Small businesses in New Zealand make up approximately 97% of all New Zealand businesses.[1] Just 30% of family businesses succeed into a 2nd[2] 75% of private family businesses are still owned by the business founder[3] and only approximately 15% of baby boomer business owners have completed a succession plan – despite the fact they are now aged between 58-76 years old.[4] The result of a failure to plan for succession can have adverse effects on business owners and their families, inevitably risking the opportunity to reap the rewards of years of hard work.[5] There is a great risk to New Zealand’s business success and structure as we know it, including land holdings, generational continuance, supply chains and employment, if this important matter isn’t considered by business owners sooner rather than later. When considering this process you should realise its dual purpose; firstly for the business to successfully carry on once you essentially ‘pass the baton’, but secondly for the circumstance where you are no longer around or able to work as you currently do in the business. There are two key aspects, which we believe are crucial in achieving a solid foundation in planning for the future – establishing and maintaining an adaptable succession plan and implementing an effective business plan, often going hand in hand. We encourage everyone in business to put their mind to these concepts, earlier rather than later – on a blue sky day. All businesses should have a succession plan in place, or at least be taking steps to think about this concept, and we encourage you to involve your professional advisors. Depending on your business and your age and stage of life will determine what is more imminently necessary – a business plan or the succession plan, often being intertwined in their establishment.  Your lawyer, accountant and any other key advisors to your business, i.e. investment advisor/farm advisor. It is important to have the support and guidance of a team who understand your business, your values and goals. The aim is to clarify what you want for the future and define the steps required to turn that vision into a reality. All while taking into consideration business, personal and family expectations. Managing family expectations is not always a straightforward process and navigating this can be eased with the help of your advisors. We encourage as a first step – an initial planning session, to determine your goals, objectives and what you want to achieve from the process. A succession planning professional will guide your planning process and act as a sounding board while giving appropriate direction.  Establishing a realistic timeline for each step of the process is also an important part of initial discussions and the overall success of achieving a final plan. Organisational structure of the business is crucial. Clearly defining roles and responsibilities will not only assist with planning for the future but also in ensuring efficiencies in day-to-day operations. Considering a number of ‘what if’ scenarios is important and ‘real’ conversations should be had to identify and raise any potential issues, which may arise now, or in future, and threaten the success of a plan. A hard conversation now could avoid many conversations in future. Defining your goals, both personal and in business, is crucial in determining the most appropriate succession options. Time should be given to evaluating your team and highlighting potential successors within the business. The outcome of this process is not just about you – it impacts your employees, your customers and often your industry and community. How can you minimise possible impacts and ensure that what you are planning now will allow your business to succeed in the future? It is important to think about your own position and what life will look like for you in future. Consider how you will live, e.g. your capital requirements to maintain your lifestyle once you exit or become less involved in the day-to-day business. No one size fits all. The considerations and questions to be answered during this journey are very personal to you. Your personal and business goals may change over time and it’s important to remember succession planning is a journey. Outside influences or significant events can impact and change your plans so adaptability and depth within a plan is important.  Achieving a plan, documenting it and implementing it is the end goal. Moving forward it is important to be mindful of appropriate timeframes to review your plan and update it as necessary. It appears a ‘big task’, this often being the reason it is left too late, or not considered at all, but with the right guidance and tools achieving successful succession is possible. CooperAitken pride ourselves in offering our clients a progressive approach in all aspects of their business and in life. Talk to us about helping you plan for the future. [1] “Small and Medium Businesses in New Zealand: Report of the Small Business Development Group” 2016 – Ministry of Business, Innovation & Employment [2] Harvard Business Review, April 2015 [3] PWC, Next Generation Survey of Family Business Leaders, April 2016 [4] Succession Reset, Pitcher Partners, 2014 [5] “Government Response to SBDG Report” – Ministry of Business, Innovation & Employment download a copy Megan Potter Associate and In-House Lawyer P: 07 889 7153 E: meganp@cooperaitken.co.nz 

Requirements as per the Wages Protection Act 1993 From time to time, in your employment relationship, you may extend permission to your employee to use your Trade account to purchase personal items, or tools that then become subject to a tool allowance paid to them as part of their package. For our Agricultural clients, a common arrangement is the processing of a livestock unit for the freezer. The legislation regarding deductions from wages very specifically requires written consent from the employee. An employer should request the employee to sign a deduction form so this money can be deducted from their ongoing and/or final pay. Government departments and agencies, such as Ministry of Justice, making deductions against an employee’s wage or salary, are exempt under the Act and no employee consent is necessary. If the employee has a deduction clause in his employment agreement, this then becomes a requirement to consult the employee instead. Email or text messaging is a great way to instigate the consultation process, as it gives you a written record. When entering into an arrangement of this nature with your employee, it is important to keep an open line of communication regarding this transaction. An employee is entitled to cease payments or vary the amount – a request which must also be submitted in writing. Normally changes to, or cessation of, payments is processed within two weeks of the employee providing written notification. It is vital to take into consideration that Section 5 of the Act has some important information regarding such a transaction. Section 5. Deductions with worker’s consent An employer may, for a lawful purpose, make deductions from wages payable to a worker-a) With the written consent of the worker (including consent in a general deductions clause in the worker’s employment agreement); orb) On the written request of the worker.  An employer must not make a specific deduction in accordance with a general deduction clause in a worker’s employment agreement without first consulting the worker.  A worker may vary of withdraw a consent given or request made by that worker for the making of deductions from that worker’s wages, by giving the employer written notice to that effect; and in that case, that employer shall –a) Within 2 weeks of receiving that notice, if practicable; andb) As soon as is practicable, in every other case, – cease making or vary, as the case requires, the deductions concerned. If in any doubt, obtaining permission in writing will cover deductions made, and will assist in preserving a harmonious employer / employee relationship. Our dedicated payroll team are always available for practical advice and  documentation templates. If you require further assistance, please contact our Payroll team. EMAIL OUR TEAM CALL OUR TEAM

If you are buying or selling a business or property from 1st July 2021 the new purchase price allocation rules may apply to you. What is the purchase price allocation rules? Prior to 1st July 2021 there was no requirement for vendors and purchasers to agree on each individual asset value when assets were purchased or sold. This could mean that the vendor or purchaser could set the sale price for their best interests to minimise tax. Business asset sales can involve a mixture of: taxable assets such as trading stock, accounts receivable, patents depreciable assets such as plant or machinery non-taxable assets such as business goodwill A Sale and Purchase agreement could have a universal sale price and no breakdown of the individual assets making up the total price, meaning the vendors and purchasers chose how to split the sale price up between taxable assets, depreciable assets and non-taxable assets. Purchasers may have had more taxable expenses to claim if higher values were placed on taxable assets and depreciable assets. Whereas vendors may have had less tax to pay if high values were placed on capital non-taxable assets such as goodwill or depreciable assets. When do the rules apply and what is the criteria? From 1st July 2021 the rules will apply to transactions with a total purchase price of more than $1 million where there is a mix of taxable and non-taxable assets of $7.5million or more relating to a sale of residential property. Why are there new rules?The purpose of the new rules is to eliminate “mis-matched” purchase price allocations. In the past the IRD may have missed out on tax revenue due to purchasers and vendors treating the breakdown of the sale price differently i.e. the purchaser may have been able to claim depreciation expense on assets and on the same transaction the vendor did not return deprecation recovery on asset sales as taxable revenue. How are the new rules implemented? If the vendor and purchaser agree on the breakdown of the asset amounts, then these values will be recorded in the sale and purchase agreement. This will mean the parties agree on how the sale price is allocated between taxable, depreciable and non-taxable assets and then these values will be used for tax purposes. The agreement should be made and documented before either the vendor or purchaser submits their income tax return that includes the tax position for the sale. Neither party needs to notify IRD about the agreement unless requested. It is important to note, if the IRD consider the agreed amounts do not reflect the asset’s market value, they can still re-allocate amounts.   If the vendor and purchaser do not agree and the total purchase price is $1 million or more, or for residential property with a purchase price of $7.5 million or more, the following rules apply: The vendor within 3 months of settlement of the transaction may determine the amounts allocated and must notify both the purchaser and IRD of the amounts. The amounts cannot be less than the greater of the market value or the vendors tax book value for the assets. The amounts must be used by both the purchaser and vendor for income tax purposes. In the event the vendor does not notify the IRD and the purchaser within the 3-month timeframe, then within a further 3 months (within 6 months of settlement) the purchaser is then entitled to set the allocation and is obligated to notify the IRD and the vendor. The amounts cannot be less than market value for the assets. The amounts must be used by both the purchaser and vendor for income tax purposes. If the purchaser does not make a notification within the further 3-month timeframe, then IRD may allocate amounts to each asset. Any tax deduction that the purchaser is entitled to may be denied until the following year’s tax return. To Do: Set asset values in all Sale and Purchase Agreements – Don’t get caught out. It has always been good practice to reach an agreement of the values for the asset amounts in the Sale and Purchase agreement. Now more than ever though it is vital this is agreed to at the time of the agreement so you can make a decision to purchase or sell based on all the relevant tax implications. We recommend seeking our advice at the beginning of the sale or purchase process to ensure we can work with you to obtain the best tax outcome for the sale or purchase. DOWNLOAD A COPY Anna BennettDirector and Chartered Accountant P: 07 888 8002E: anna@cooperaitken.co.nz 

In March of this year the Government extended the Bright-line test to 10 years, the effect of this extension creates what is essentially a capital gains tax on residential property that is unable to be exempted as a main home, a business premises or a farm.  Although intended to target property investors it will have an impact beyond just investment properties. In particular, some lifestyle properties and holiday homes will likely become subject to tax if sold within a ten-year period and a gain is made. There are now three situations in which the sale of a property can be caught under this test.  Any gain made on sale will be taxable if; Purchased on or after 29 March 2018 and sold within 5 years Purchased on or after 27 March 2021 and sold within 10 years Purchased on or after 27 March 2021, it meets the new build investment criteria and sold within 5 years The family home will continue to be exempt from the bright-line test and property transferred under a relationship property agreement or inherited will continue to be provided relief. Also included in the changes was the inclusion of a change-of-use rule for the bright-line test.  This means that if the property is not used as a main home for a period longer than 12 months it would be subject to tax for the proportion of time not used as a main home if sold within the bright line period and a gain is made.  This will add significant complexity and require taxpayers to keep a track of the time that a property has not been used as a main home. Some of the traps that we are seeing with such a long bright-line test period are as follows; The sale of bare sections within the bright line period cannot be excluded under the main home exemption. As a house has not been built on the property it cannot be considered a main home. Properties that are too large to be considered a lifestyle block but too small to be considered a farm can be captured if the property is not used predominantly for the enjoyment of the owners. For example where 5 Ha of a 6ha property is leased to the neighbour the main home exemption will not apply. Second homes or holiday homes are not able to be exempted under the main home exemption. Properties jointly owned by parents and their children are being caught as the parents are unable to apply the main home exemption if the children purchase the remainder of the property off them. Restructuring will often reset the bright-line test period and can result in properties being brought into the bright-line test that we previously outside of it. There are a few other points to note; Any sale of a property between associated or related parties will be deemed to occur at market value. The end date for the test is the date of signing an agreement for sale which is in contrast to the start date which is the date of title transfer. Transferring more than 50% of the shares in a company that owns a property will trigger the bright-line test. Note a company cannot apply the main home exemption. Changing to or from a Look Through Company status will also trigger the bright-line test as it is considered a deemed sale and acquisition of all property owned by that company. A person can only have one main home, however spouses may have different main homes depending on living arrangements. A trust can apply the main home exemption based on the property that the main settlor resides in as their main home. A beneficiary solely living in the property cannot apply the main home exemption unless they are also the main settlor of the trust. It has been clarified that serviced apartments are captured by the bright-line test and not excluded as business premises. This also impacts residential houses being solely rented on air bnb etc. Finally it is worth noting that the bright-line test, which can only be described as a capital gains tax, has now become far more onerous than any capital gains tax previously proposed.  With the introduction of the 39% tax rate on personal income over $180,000 per annum there is a risk where property is owned by taxpayers in their personal names that this rate could apply.  This should be contrasted with the capital gains tax that was proposed during the 2017 election by Labour that had a rate of 15%. As you can see the bright-line test, originally quite simple, has now become both complex and potentially onerous.  We would recommend that you discuss any property transactions with us prior to signing any agreement so that you are aware of the implications of doing so. DOWNLOAD A COPY Rory NoorlandDirector and Chartered AccountantP: 07 889 7153E: rory@cooperaitken.co.nz  Read more about Rory

Parliament has passed the Holidays (Increasing Sick Leave) Amendment Bill to increase the minimum employee sick leave entitlement from 5 days to 10 days per year. Most employees who have worked for an employer for six months or over are entitled to sick leave if they, or a dependent, are sick or injured. Currently, employees are entitled to 5 days of sick leave per year; however, from 24 July 2021 this will increase to 10 days per year. Employees will get the extra five days when they reach their next entitlement date – either after reaching 6 months’ employment or on their sick leave entitlement anniversary (12 months after they were last entitled to sick leave). So, for example, take an employee who has been employed since 20 January 2021. They become entitled to sick leave on 20 July 2021. They will be entitled to only 5 days, because the new law won’t yet be in force. On their next sick leave anniversary, 20 July 2022, the employee will receive 10 days sick leave. On the other hand, take an employee who has been employed since 20 June 2021. Because they will have been employed for less than six months when the Act comes into force (on 24 July 2021), their entitlement to 10 days sick leave will occur on 20 December 2021 (that employee’s six-month anniversary). Employees who already get 10 or more sick days a year will not be affected by this change. The maximum amount of unused sick leave that an employee can be entitled to will remain 20 days. NOTE:Casual employees are also entitled to sick leave and bereavement leave after 6 months of starting work if during that time they have worked: an average of at least 10 hours a week least one hour a week or 40 hours a month. Please talk to our payroll team if you need further support or advice. P: 07 889 7153E: wages@cooperaitken.co.nz 

Now is time to talk about the taboo subjects – Strategic Planning and Budgets. Why is it taboo? Well, there are a number of reasons like the following; I don’t know where to start It will cost me It requires effort, time and thought I know my numbers and they are heading in the right direction anyway There is no value in doing it It is like anything in life, if you don’t plan and do the necessary steps, you won’t get there.  No different to the challenge of losing weight or putting muscle on, there’s always essential components -the goal, the exercise and the diet.  To do any one of these is not enough, you need the full combination to achieve what you are aiming for.  I love the saying’s “Aim for the moon.  If you miss, you may hit a star” and  “If you aim for nothing then you will surely hit it”. Another director at CooperAitken often reminds us that we only have so many working days left in our life, I can’t remember his exactly, but if I did it for myself it would look something like this.  I would have only 3,440 working days left to make a difference for my family and retirement.  Only 28% of my time left to achieve some goals. We at CooperAitken have a real focus on working alongside our clients and planning for the future. The first step is understanding what your goals and future looks like and this changes at each stage of your life. Simple at the start when you are single, a little different when you have a partner and then the next change when you have a family or want to do something for others. It does not matter what you are doing for an income or how you are getting an income, but it does matter what you do with it. Strategic planning is not just about dollars but also focuses on the other areas you want to achieve in your life like work-life balance, supporting the community and the greater family, doing something for your industry and helping out the environment. Wealth and a higher standard of living comes from doing those hard yards, it does not come to us on a plate and if it has turned up, it still needs to managed because it will disappear quickly. Key elements of Strategic Planning are: Understand your external environment Complete a SWOT analysis of your internal organisation and external environment Involving the key decision makers/Shareholders/Directors Understand what the future could look like Consider the opportunities and how you can use innovation and technology Understand how and what you need to execute the strategy Wrap dollars around the financial value of the strategies Plans need to be flexible Where possible use data to substantiate the strategy Make sure there are actions With every action you need to know the measures to know if you are succeeding or not Produce a 1 page high level plan so it can be looked at on a regular basis and can be shared with the wider team Once you have a Strategy and a Vision of what you want to achieve then one of the other areas you focus on is budgets.  The budget helps to show the likely impact of your strategy. Budgets need to be dynamic and looking at more than the year in front. They should extrapolate the likely outcomes for the next 5 – 10 years at a high level.  They need to reviewed regularly and updated as things change. The budget is the tool we use to hold ourselves accountable to the strategy.  If we can achieve budget or close to budget then it will allow you to carry out the strategies and goals you want to achieve. Compounding works.  If you put a $10 per week aside and you get a 5% return on your investment, at the end of 25 years you will have $26,059.  Not bad for putting aside $10 per week.  If you changed it to $100 per week, then it would be $260,590. Take the time to do a budget and now is the time to do it. Start off a new financial year or before your next financial year begins.  Work with your team of advisors.  Let’s work together to achieve your goals with the help of CooperAitken.  The benefits will outweigh the costs. Act now to make a difference to your future! Peter HexterDirector and Chartered Accountant P: 07 889 7153E: peter@cooperaitken.co.nz 

Now is a good time to get familiar with the new Co-operative Difference payment so you can make a plan on how to achieve the standards and receive the 10 cent payment. From 1 June 2021 Fonterra is changing the way farmers are paid for their milk through the introduction of a new milk payment parameter called the Co-operative Difference. This will see a proportion of a farms milk payment influenced by the farms progress under the Co-operative Difference by up to 10 cents per KgMS. It is important to note that the 10 cents is included in the current milk price not on top of. So if the milk price is set at $7.60, you will receive $7.50 unless you reach the required standards under the Co-operative Difference milk parameters. The regime is part of getting the best return for farmers and is determined by Fonterra’s ability to access opportunities and markets who demand good practices on farm in relation to animal wellbeing and guardianship of the land. This means staying at the forefront of issues such as quality, safety and sustainability – that is what the new Co-operative Difference is all about. The Co-operative Difference payment is divided into 2 parts. The first part (Te Putake) being the 7 cent standard which is based on four main areas of achievement which cover Environment, Animals, People, and Co-op & Prosperity. The second part (Te Tihi) is the 3 cent achievement which is based around milk quality. To access this payment you must have first past the achievements to receive the 7 cent payment. The milk quality standard requires a farm to achieve milk quality excellence for at least 30 days. From that point onwards, ensuring you still maintain the milk quality excellence, you will get the 3 cents for milk supplied during this excellence period. So where to from here for my farm? The first step is to get the four achievements to access the 7 cent payment. These are listed below and give a brief outline of what they might look like to achieve. Further detailed information is provided in the official Fonterra documentation. Achievements under Te Putake 1          Co-op and Prosperity The requirement under this achievement is not a lot different to the current Dairy Diary. The big change here is it needs to be done online. 2            Animals The requirement under this achievement is to have an Animal Wellbeing Plan signed off by your vet annually. This shouldn’t take longer than 15 minutes to complete and conveniently many vets already have a good template that covers the main areas. Nutrition – Strategies to ensure cows reach body condition targets. Health, mastitis, lameness, mortality and minimising antimicrobial resistance. Environment – Planning for extreme weather events and development of management strategies for heat stress. Behaviour – Discussion about current and future herd improvement strategies through genetics. 3            EnvironmentTo pass the environment standard the farm must have a farm environment plan in place and be achieving 3 out of the 4 key practices (more on this below). If your farm does not have a Farm Environment Plan completed, please ensure you are registered for one with your Area Manager. You will still need to meet three of the four key environmental practices areas:             Environmental Practices; Purchased Nitrogen surplus is at or lower than 138kg/N/ha – you will find this figure on your Fonterra Environment Reports Participation in product stewardship scheme for on farm plastics and agri- chemicals – verification of this will be receipts. One of the approved schemes is Agrecovery  No discharge of farm dairy effluent to water 80% farm grown feed fed across the system 4            People and Community To pass this achievement your farm is required to achieve 100% on the Dairy NZ Workplace 360 Assessment on the Foundation level. Many of the questions in the assessment cover items in relation to Health and Safety, Employee records timesheets, leave records and rosters. The farm must have evidence to support the answers submitted. The good news here is you can complete the test as many times as possible until you get 100%, and the test gives you examples of where you can improve and how you can achieve a pass (Dairy NZ Workplace360 Assessment). The official verification of your achievement of the four achievements will be completed at your Farm Dairy Assessment.  You will need to give Fonterra no less than ten days’ notice prior to the Farm Dairy Assessment (you can do this through logging into your portal on the Farm Source website – the verification is the green circles on the Farm Source home page). QCONZ will be verifying documentation at the time of the assessment. The payment for this milk will be paid with the Retrospective payments. So where to from here? Co-op & Prosperity  – Start doing dairy diary online from 1 June. It’s easier than paper, your Area Manager can help and provide training in this area. Animal – Make a phone call to your Vet to get the Animal Wellbeing plan completed. Environment Plan – this is something that the farm has to complete anyway People – Achieve 100% in the Dairy NZ Workplace360 Assessment One thing is for sure, change is constant in business and farming is no exception. The Co-operative Difference payment is an opportunity for Fonterra farmers to make steps towards what will eventually become compliance. For some farmers there will be changes that need to be made to achieve some standards, in particular around the People and Community Standard. Achieving the 100% on the Foundation Level may require some changes or new procedures to be implemented with regard to Employees and Health and Safety.   We are here to help you through this process. If you would like to come in and sit the test at our office, please get in touch. We can also help you to set up and manage your documents and systems to allow you to achieve the 100% pass. nzfarmsource.co.nz/co-op-and-financials/the-co-operative-difference.html