Sheep and beef equity farming - an opportunity
Sheep and beef equity farming - an opportunity
Eggleton Robin, G
Eggleton Robin, G
Date
2001
Type
Other
Fields of Research
ANZSRC::070106 Farm Management, Rural Management and Agribusiness , ANZSRC::070108 Sustainable Agricultural Development
Abstract
Many New Zealand sheep and beef farmers are operating marginally viable farms. These people
often justify remaining. In farming by quoting that farming is not so much for the money but the
lifestyle.
When the financial situation of theses farms is explored it concludes that after taking reasonable
returns in real terms the farm is stagnant or slowly loosing ground.
There is an opportunity however through equity farming to increase size. So long as care is taken
through use of sound business practices to achieve top end performance the result is attractive.
Equity farming would appeal to marginally viable farmers achieving good production results, or
experienced farm managers wishing to take the next step. Equity farming on farms with scale is also attractive for investors. Returns equate around 5% - 6%
coupled with an inflating land value making equity farming comparable with other investment.
Rural investment is also attractive to overseas investors wanting a slice of New Zealand "paradise".
Rural investment is also appealing to ex farmers keeping an active involvement in an industry they
have spent so much of their life.
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