Leasing a pathway for next generation farmers
The New Zealand pastoral, forestry and orchard land market is in a dynamic state late in this decade as a number of economic, political and social factors start to impact across it.
After the relatively easy lending days early in the new millennium bankers have got tougher, while overseas investment rules have tightened up on the ability of overseas interests to buy New Zealand farmland.
Meanwhile farmers are not getting any younger, with an average age now just topping 60, many are looking to exit with dignity and cash intact. Land leasing options are providing opportunities to help give a younger generation of energetic, enthusiastic farmers get a foot on the ground, while also easing out an older generation keen to enjoy the fruit of their life’s commitment.
In the dairy sector the squeeze on lending is presenting some new leasing opportunities for a new generation of farmers committed to the land, but who have struggled to raise the capital for their own property.
In Canterbury Bayleys agent Ben Turner has found irrigation development around projects like Central Plains mean there is a tranche of farms that now present well as leasing options.
Read more...[Download PDF]