Foreword
Monitoring is a process whereby MAF Policy monitors the production and financial status of farms and orchards in terms of their cash income and expenditure. Trends, issues, and sector concerns are also monitored.
The report discussed within reflects growers' expectations and intentions, and the thoughts of those servicing the sector. They are not MAF price or production predictions.
The model orchards depicted in this report are representative of their orchard type within the region. They are based on the average orchard in a statistical sense for the regions. However, they have been adjusted to represent real orchards.
From time-to-time the models are revisited. This results in some changes, and caution should be taken in comparing between years.
Information for each model is drawn from 20 orchardists, and discussions with a wide cross-section of agribusiness.
The aim of each model is to best typify an average orchard for the region. Budget figures are therefore indicative figures of the average levels of income and expenditure, management, orchard production, debt and expenditure on development and capital purchases. Drawings are averaged from the contributing orchards, as are off-orchard income, new borrowing, other cash income and lease costs.
Monitoring is being constantly improved to better accommodate the needs of the users of the reports.
The Economic Orchard Surplus (EOS) depicted in the model budgets is calculated as follows:
Gross Orchard Revenue + Change in Value of stock on hand - Working Expenses (excluding interest, rent and lease costs) - Depreciation - Wages of Management.
Wages of Management are calculated as follows:
$28,000 allowance for labour input + 1% of total capital as managerial reward. An upper limit for WoM of $45,000 has been set.
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Contact for Enquiries
Farm Monitoring Programme Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
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