• Farm management deposits scheme

    Farm management deposits (FMD) are a risk-management tool to help farmers deal with uneven income, which is common in agriculture because of natural disasters, climate and market variability. The FMD scheme complements other risk-management strategies available to primary producers, such as developing fodder and water reserves, financial planning and diversifying production systems.

    If you are a primary producer, this scheme allows you to:

    If you withdraw an FMD, the amount of the deduction you claimed is included in your assessable income in the income year the deposit is repaid to you – see Assessable income

    Consolidating multiple FMDs will have no tax consequences provided you meet the requirements for merging deposits.


    To be eligible for the FMD scheme, you must be:

    • carrying on a primary production business at the time you make a deposit
    • be an individual (including as a partner in a partnership or beneficiary of a trust) – companies and other entities are not eligible (Note: FMDs cannot be made by two or more people jointly, or made on behalf of two or more people)
    • have taxable non-primary production income not exceeding $100,000 ($65,000 prior to 1 July 2014).

    Trustees can only enter FMD agreements on behalf of a beneficiary who is entitled to a share of the income of the trust estate and is under a legal disability – for example, if they are a minor.

    If you are the beneficiary of a primary production trust that made a loss, you are still considered to be in a business of primary production, and eligible for the FMD tax concessions if either of the following apply:

    • the trustee of the primary production trust nominated you as a chosen beneficiary
    • you are the beneficiary of a fixed trust.

    Find out more

    Who is a primary producer?

    End of find out more
    • Last modified: 16 Dec 2014QC 27154