Editorial: Forest for the trees?
OPINION: Most people will be aware of the Government's plans to boost coal, oil and gas production to meet energy requirements.
The 5,000 hectare Mangaohane Station, just off the Napier Taupo highway, is up for sale by international tender. It winters around 40,000 stock units on a sheep-to-cattle ratio of 2 to 1. A group of NZ farmers and agribusiness people - calling themselves Farming Forever - has set in train a plan to buy the station, which is estimated to be worth in the vicinity of $45 million.
Heading the group is Hawke's Bay farmer and businessman Mike Barham. He told Rural News if the station was sold to an overseas buyer and planted entirely in trees it would be an "absolute tragedy for NZ".
Barham says there are other stations that have been sold and ended up being planted in trees. He says the plan is to get organised and put in a bid to the NZ owners and hopefully appeal to their social conscience to sell it to them.
"I am not opposed to trees on farms and there are properties that are suitable for this," Barham explains. "But Mangaohane isn't one of these and if we lose iconic stations like this, others will follow."
He says the property has Olsen P levels of between 50% and 70% and is a beautifully set up property with great farming infrastructure.
"My aim is to make this farm financially viable for investors so they can get an annual return and hopefully over time a capital gain," he says.
Barham says there's been a sharp rise in the number of grazing properties being sold and planted for carbon credits and he believes it's time to make a stand against it. He says buying Mangaohane Station would mean keeping it farming livestock, as well as keeping 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," he says.
Forever Farming NZ has produced an Information Memorandum and Expression of Interest document for potential investors to view and consider.
Barham and his team are seeking investors to form a syndicate to fund the purchase.
The minimum amount required to join is $250,000.
Barham says while this sounds like a lot of money, it is necessary to meet anti-money laundering and other regulations and it will also keep the number of investors to a workable level.
"So many people ring up and just want to give us $1,000 dollars for no ownership," he told Rural News. "But I can't accept that and I have got to do it this way."
Peeing In The Wind?
Mike Barham says Forever Farming is targeting urban as well as rural investors.
He says many people in urban areas don't get a chance to go on a farm and see and enjoy rural life as past generations did. Barham adds that in his experience, when urban visitors come to his farms they love it.
"Wouldn't it be great if a parent or grandparent bought a $250k share in this," he told Rural News. "What a legacy for them to be able leave their children or grandchildren."
Barham says his motives in setting up the syndicate is purely altruistic and that there is no financial gain in it for him. At this stage, he is personallhy paying all the legal and accounting cost of setting up the syndicates.
Barham says his motivation is based on what he's seen around the country, where high quality farm land is being planted in pines. He believes the Government should at least put an end to overseas buyers coming in and doing this.
"Some people are saying: 'Mike you're pissing against the wind - you are going to save one farm'," he adds. "I know I will save one farm but I also know that I am going to get a lot of political support for what I am trying to do. We have to start somewhere to get the Government's attention."
Anyone who wants to register their interest is asked to email: This email address is being protected from spambots. You need JavaScript enabled to view it.
