THANKS to a great growing season, Gisborne District Council has earned $1 million more than it expected from its key investment asset Tauwhareparae Farms Ltd. TFL has distributed $2.017 million to the council this year, compared with $1.561m in 2011 and $500,000 in 2010. Sheep income for the 11,000 hectare farm inland from Tolaga Bay was in the top 2 percent in the district, while income from cattle was in the top 10 percent. Its annual report for the year ending June 30, 2012 shows operating cashflows from pastoral farming of $2.87m, compared with $2.76m in 2010/11. TFL's distribution policy, negotiated with the council three years ago, is to pay out 70 percent of cashflow profits. Prior to that the council had sought a fixed dividend of $1m a year. An interim distribution of $500,000 is paid in February each year and a final distribution of $1.517m was made last month to Gisborne Holdings Ltd, which was then distributed to the council. Chairman Mark Egan said TFL's 2011/2012 results showed the highest cashflow from pastoral farming operations over the past five years. However, a loss after tax of $714,000 was recorded -- largely due to the payout to the council, a reduction in livestock value and a fall in carbon revenue from TFL's forests. As the price of carbon credits dropped from over $18 to less than $7, carbon revenue of $2.085m in 2010/11 turned into a net loss on carbon of $622,000 over the past year. With more than