A group of New Zealand farming and agribusiness people is attempting to purchase a large central North Island station in a bid to stop it being planted in permanent exotic forest.
The group, called Forever Farming NZ, plans to buy Mangaohane Station by raising the estimated $45 million-plus required using a syndicated ownership structure where individuals are invited to invest a minimum of $250,000 per share.
The group’s intentions are to keep Mangaohane Station in New Zealand hands and farming livestock on the property.
Forever Farming NZ is headed by Hawke’s Bay farmer Mike Barham.
Seing Mangaohane Station sold to an overseas person or company and planted entirely in trees would be a tragedy for New Zealand, he said.
“We’ve seen a sharp rise in the number of grazing properties being sold and planted for carbon credits so it’s time to make a stand against it.
“Buying Mangaohane Station would mean we keep it farming livestock, and we keep the towns and businesses that surround it strong and vibrant. Farming is the backbone of the country and we need strong livestock farms to earn those export dollars to feed the nation.”
Barham is a lifetime farmer and is involved with multiple syndicates in both dairy and drystock farming that have different ownership models as well as being heavily involved with the Rural Support Trust.
That experience means he is familiar with the multiple ownership model being proposed. The model would also help urban people who invest reconnect with the farming sector, which is something he loves to see.
“I see in my dairy syndicates how people from town love to get involved even though they might know nothing about it. It’s very special and I want urban people to experience that.”
Barham said it really upsets him to see iconic farming stations like Mangaohane Station possibly converted to forestry.
“This is not about complaining, its about being proactive and buying it. Let’s make a stand and buy it for New Zealand Inc.”
If the purchase is successful, he hopes it may increase the publicity around sheep and beef farms being converted to forestry and force further policy change from the government.
“Agriculture still drives our economy and if we shut all of these farms down, we’re going to miss out on that. I’m worried that with all of the hoo-ha going on with farming at the moment, we’re going to put off the younger generation from going farming.”
Forever Farming NZ has produced an information memorandum and expression of interest document for potential investors to view and consider.
According to that memorandum, securing Mangaohane Station is expected to require an offer of $45-$55m, giving investors an indication of the value of its land and buildings.
The initial investment strategy is for Forever Farming NZ to pay cash for the land and buildings and fund the purchase of the stock and plant with debt funding. The Station is running 40,000 stock units, meaning this would require a further estimated $10m.
Barham said the initial response to the information memorandum had been positive and the group was getting responses to the expressions of interest.
He estimates it will need around 150 shareholders to reach the required $40-$50m. If there are those who are prepared to invest over and above the $250,000 minimum that number could drop.
“We’ll get bigger ones. We have had people already who have contacted us saying they want half a million.”
He is also well aware that the bid is reliant on the station’s vendor’s goodwill to sell the farm to them and hopes the offer will appeal to their sense of duty to retain the farm in local hands.
“They have a real place in New Zealand and please don’t take our iconic stations off us.”
The bid to buy the station would be overseen by an interim board which would then be replaced by a new board formed from the group of shareholders. This new board is expected to have an incredible set of skills to govern the station in the future.
The nearly 5000ha station is located just off the Napier-Taihape Road in central North Island is for sale by international tender through real estate firm Bayleys.
Bids close on December 7 and its scale, location and clear, easy contour is expected to draw strong overseas interest, particularly from companies seeking to find a source of carbon credits to offset their own fossil fuel emissions.
