The biggest rise is however in rising one-year heifers - these have increased from a low of $530 to $819 - an increase of 54.5%. In talking to clients, this should come as no surprise as there seems to be a high demand for this age group of livestock.
Dairy bulls and steers have seen modest increases from last year, with breeding bulls now valued at $1,887.
There was an opportunity last year to move some clients from the national standard cost scheme to the herd scheme, due to the 2016 values being at historic lows and were the closest to national standard cost values than they had been for quite a long time. The rise in values in the 2017 year, and the recently announced dairy pay-out increases for the 2017/2018 year, mean that the decision to move was the correct one.
There may be an opportunity for clients who signed up to buy herds late last year at reasonably high prices to move into the herd scheme this year - assuming a 31 May settlement. This is something that can be considered at the time of completing your 2017 annual accounts. Each case will depend on the facts, and of course we have to consider the long term implications as we will then be in the herd scheme for the foreseeable future.
See dairy cows graph ...