MyFarm secures land at 25% below premium

Farm investment company MyFarm says it was able to find high quality properties for up to 25 percent less for stock and land last year, than during the dairy boom in 2008.

The company reported investors had put $43 million into MyFarm dairy farm syndicates in 2009.

It said it had settled 45 investors into six properties in this country and two in Australia with a net asset value of about $65.7m.

MyFarm director Andrew Watters said a combination of lower asset prices and interest rates had reduced debt servicing costs by almost 50 percent, or 77c/kg of milk solids.

Demand for dairy farm investments was growing, with a factor in that interest being the 95 percent increase in Fonterra's payout to $6.05/kg.

The eight farm syndicates established in 2009 included four in Southland and two in Canterbury, which were growth areas for dairy investment.

``Southland continues to attract investment because of the availability of high quality, reasonably priced land and Canterbury properties with water can deliver very good cash returns,'' Mr Watters said.

Investors were also showing keen interest in sheep and beef investment, prompting MyFarm's newest syndicate investment opportunity _ Kaiangaroa station near Taihape, for the establishment of a heifer grazing and lamb finishing syndicate.

- NZPA