Herd Scheme Values 2026: What the Record Highs Mean for Your Farm
25th June, 2026
Inland Revenue has released this year’s Herd Scheme Values, and across nearly every livestock class, the numbers are at or near record highs.
For farmers who use the Herd Scheme to value their livestock, these movements can have a real impact on your tax position and financial statements.
Here’s a breakdown of what’s changed, and what to think about before your 2026 accounts are finalised.
Dairy Cattle: Up 34%, Two-Year High Continues
Dairy values have seen the most dramatic movement.
A mixed-age dairy cow now has a National Average Market Value of $2,824, up from $2,111 last year. That’s a rise of 33.78%, and a 75% increase over the past two years.
Rising one- and two-year heifers have also increased significantly, up 31.68% and 42.28% respectively.
The main driver is strong global commodity prices for dairy products, which have increased demand for dairy cattle. There’s also renewed interest in dairy conversions in parts of the South Island following some relaxation of environmental regulations.
The outlook for farm gate milk prices remains positive, supported by a weaker New Zealand dollar. That said, geopolitical risks—including United States tariffs and conflict in the Middle East—continue to create uncertainty, while fuel and fertiliser costs could also keep rising.
Beef Cattle: Record Highs Driven by Global Supply
Beef values have risen by an average of 33.5%, reaching another new high.
The biggest factor is tight global beef supply, particularly in the United States, where the cattle herd is at its lowest level in decades.
Strong demand in the United States and export markets has pushed prices to record levels, and the trend is expected to continue into the 2026–27 season.
As with dairy, tariff disruptions and conflict in the Middle East remain key risks to watch.
Sheep: Up 36%, and Wool Is Making a Comeback
Sheep values have increased strongly, averaging a 36% rise.
Reduced sheep numbers across the UK, Europe and Australia, due to weather, disease and profitability challenges, have tightened global supply while demand has remained strong.
Favourable growing conditions during the 2025–26 season have also allowed farmers to hold stock longer, improving carcass weights and returns.
Wool is also showing renewed strength. Prices are at their highest level in more than a decade, driven by increasing demand for natural fibres and growing concerns about microplastics.
For many farming businesses, wool has shifted from simply covering costs to becoming a meaningful income stream again.
Deer: A Mixed Picture
Deer values have been more subdued overall.
Red Deer, Wapiti and related breeds recorded only modest movements, while other breeds bucked the trend, rising by around 55% on average, largely driven by strong demand from the trophy hunting market.
Goats
Demand for natural fibres has lifted values for fibre goats.
Angora values have been more mixed, while dairy goat values have recovered after several years of decline, supported by stronger milk demand and a shortage of CAE-free breeding stock.
What Does This Mean for Your Livestock Valuation Election?
With livestock values sitting at record highs, it’s worth carefully reviewing your valuation choices before finalising your accounts.
If you’ve increased your livestock numbers during the year, you may have flexibility in how that increase is valued. You don’t necessarily have to use Herd Scheme values for those additional animals.
The best option will depend on factors such as:
- Where we are in the livestock value cycle
- Whether the increase in stock numbers is permanent or temporary
- Your longer-term plans for the farming operation
There isn’t a one-size-fits-all answer. We’ll work through the valuation options with you when reviewing your 2026 financial statements and tax returns.
Questions About Your Livestock Valuation?
If you’d like to understand what this year’s Herd Scheme Values mean for your farm, or you’d like a detailed comparison of the Herd Scheme and National Standard Cost (NSC) valuation methods, get in touch with the BWR team.
