Skip to main content

Agriculture Scheme stocks for tax savings TIM , MIS , GTP , FCL ,TFC


The sales results of the listed agricultural managed investment scheme (MIS) providers yesterday trickled in, which in the main were disappointing.


Timbercorp (TIM) 80c

Great Southern (GTP) $2.89

Futuris (FCL, $1.03)

TFS Corp (TFC, $1.25)

As predictable, cashed-up investors in past years have flocked to end-of-year agrischemes in a desperate bid to avert handing over money to the taxman.Not so this year. For a start, stock market investors don't have such a need to offset capital gains because they don't have any, while the taxman now frowns on non-timber schemes that rely on their fees being deductible upfront.

Timbercorp disclosed $128 million of sales up to June 30, compared with $145 million previously. As a result of the tax crackdown, Timbercorp had only three schemes of offer in timber, olives and almonds, which had the imprimatur of a previous ATO private ruling.

Buried deep in yesterday's announcement, Timbercorp also admitted full-year earnings for the year to September 2008 would come in at $53-$57 million, compared with the previous year's $66 million.


Great Southern reported $315million of sales, 24 per cent lower. But excluding the effect of not having a beef cattle project that was offered last year, sales were down 6 per cent.

"If the stock market is falling or rising, crops in the ground don't know that and they still keep growing, so there's a real inherent risk management built into the agricultural sector".

Another big provider, Futuris (FCL, $1.03) last week confessed MIS sales of its Integrated Tree Cropping arm would fall short.

WA Indian sandalwood grower TFS Corp (TFC, $1.25) has increased subscriptions by 44 per cent, to 808 hectares from 558ha previously, prompting the company to boost full-year earnings guidance to a 54-58 per cent rise over the previous year's $19.18 million. According to an excitable company rep, this is a "truly fantastic effort and certainly worthy of comment when everyone else is full of gloom and doom".

The Indian sandalwood yarn is indeed a fascinating one: sandalwood oil and fibre are highly in demand as a perfume ingredient, yet the wood has not been grown out of India.

check out Recent posts

Aussie giants Westpac bank and st George bank to m...
US indian analyst from Goldman sachs Predicts Oil ...

Luckily, TFS is treated as a timber scheme for tax purposes. Most of the other providers face the grinding task of weaning their business away from retail-focused MIS revenues.

Timbercorp is working on a $150 million dairy fund to be pitched at institutional investors. Timbercorp also enjoys $300million of annual annuity streams from ongoing fees on MIS already in place. So if new business dries up, there's still some money to pay the rent.


Great Southern is timber-oriented and is less affected by the tax changes, but has a less favourable business model in that it relies on upfront, rather than annuity, payments. It also has a higher proportion of maturing allotments, which is potentially problematic in that the timber sales actually have to meet the claimed yields. On the positive side, it frees up land for new schemes, thus freeing up capital that has been used to acquire new dirt.

TFS is a speculative buy. The company won't be producing sandalwood in earnest until about 2010, but has already sold some of the output to French perfumiers at the going rate of $2000 a kilogram.

Finally, Tasmanian-oriented eucalypt grower Forest Enterprises Australia (FEA, 50c) grew scheme revenues by 93 per cent, to $116 million.

Popular posts from this blog

Best Australian stock forums online ( finance forums)

Many traders and investors use forums to share ideas, learn from the more experienced, or simply to stave off boredom during long hours at the computer. Here we list the known universe of forums, complete with costs, member numbers, extra benefits and popular forum topics. Please post a message on Your 2 Cents if your favourite forum isn't listed here, or if you feel that there's more to add about the day-to-day goings on in your online community.Forum
Stock comps
Forum areas
AussieStockForums.comFreeASX by share code, General, Beginners, Derivatives, Commodities, International, Strategies/SystemsEasy to use, independent forum. Aussie Stock Forums has a group of very active and knowledgeable traders. Private messaging available. Australian forum.
Chimes in ExileFreeASX stocks, fundamental analysis, technical analysis, commodities, economics, investment tools The forum has a small group of regular contributors that form a genuine community of investor…

The diggers and dealers forum meet 2011

The diggers and dealers forum has just begun August 1. Its a three day annual event happening every year  at the WA country town of kalgoorlie.2011 Diggers & Dealers forumBig name brokers  keenly watching the event will be MacquarieDeutsche BankBell PotterGoldman SachsRBS MorgansEvans & PartnersHartleysBlack Swan Euroz.Well most other websites will give you the  finer details of the annual meet and greet that happens at kalgoorlie , so we will just stick with the bare minimum of details  and focus on the more enjoyable bits  of information that the dealers require to strike a good deal while in town.Bare detailsWebsite : Diggers & DealersEvents : Program and scheduleWatering holes and entertainment at Diggers and dealers forumPubs , clubs  and skimpy (barmaids) culture in kalgoorlie . There are about 25 pubs in Kalgoorlie-Boulder area and for a city that stretches just 67sq km the number of pubs makes for  a good choice on drinking holesand entertainmentExchange Hotel ( Pa…

Stock market and High frequency trading

High frequency and computerised trading androgue trading is again  in the news with  trader Mr Adoboli working for UBS  who was arrested at his desk, is alleged to have lost £1.3 billion through his rogue trades  according to the company , now also annoucing that they might go into a loss in this quarter. According to some reports in the media it was said that Mr Adoboli Himself had reported the  trade when the trade went bad before the computers picked up the loss.
Not so long ago in 2008 Jérôme Kerviel, the Paris-based Société Générale trader lost £4 billion in rogue trades, but fought it out in court contesting that the trading firm knew about his trades with large amounts.

High frequency computerised trading in Australia HFT drives the wild swings in global markets and in co-relation influences the local assets, the intensity is expected to rise with online exchange Chi-X to  begin operating in Australia soon with a limited number of stocks in November. The ASX will launch its Pur…