Good that Natural Dairy bid for Crafar farms rejected. Inevitable.
Now room for Landcorp to buy, develop and sell in an orderly manner to Kiwis.
Maybe they could even involve share milkers and give young hardworking people a chance.
Good that Natural Dairy bid for Crafar farms rejected. Inevitable.
Now room for Landcorp to buy, develop and sell in an orderly manner to Kiwis.
Maybe they could even involve share milkers and give young hardworking people a chance.
This entry was posted on Thursday, December 23rd, 2010 at 7:35 am and is filed under agriculture. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
I am pleased that the farms are not going to be sold to Natural Dairy. However I am not sure they need to be sold as a box lot. sure that is one option, and Land-corp are an option for some or all of them, but I think sale as individual units should also be a well considered option.
Individual farmers tend to be the best managers of their land and make it the most productive.
Monty, keep in mind the receivers are looking to liquidate these assets as quickly and at as low a cost as possible. Therefore I’m sure they’ll prefer one purchaser to several.
“Individual farmers tend to be the best managers of their land and make it the most productive.”
People would have said that of the Crafers once…
Like most people in this world, farmers also get greedy and, it seems, that whenever a unit comes up for sale, it is not a new farmer setting out that gets to buy, but an established farmer increasing his lot.
How much does one farmer need? Has anyone put an acreage on that?
Under no circumstances should these farms be sold to Landcorp. They should be sold as individual units.
I think that Landcorp have an ability to maximize value which might mean people other than banks get some cash. They have over 100 years experience of getting farmers onto viable blocks. A few of the farms might fit their medium term configuration and thereby free yet others up for short term sale. Worth a look but not a foolish price.
Yay, no Chinese ownership! Woo Hoo!
!
They should be sold to the best bid (which is not necessarily the highest price). Logie – if you look back at the Crafer’s management there were several cases of poor management and land use breaches. True it is hard to start out in farming – but not impossible. You also ask about how much land does a farmer need. To remain competitive and efficient farms are growing in size. 40 years ago 350 acres was a massive dairy farm and rare. Now very common.
My brother a city boy went farming and has been very successful – mainly due to hard work and having a goal. He owns his farm. It is possible to own your farm if you have a plan.
Trev – your response if typical of labour and socialists. You fail to provide a reason why Landcorp would be better than an individual. Your rationale is weak. Yes Landcorp have experience – but are they going to be the best owners of these farms? I would put my money on the individuals who pay their own hard earned money to make a real go of maximising the productivity.
Trevor is absolutely on the button. These farms passed on to individual farmers in the long term, but to Landcorp in the short term to ensure land is being farmed to the best effect, including environmental issues where required, and then prepared for resale to next generation farmers, not aggregated to existing farms unless to small to survive individually.
A very merry Christmas everybody. (Even Al1en)
i am a dairy farmer/owner
I purchased a farm that had been run buy a corperate group
i have shaved 200k of the wages bill buy getting rid of the of the managers who manage the managers.
I also have no problem with landcorp buying these farms in the short term but i believe they should in time be sold off to sharemilkers etc
Just remember if national sell farms to kiwis dont make a big deal about selling the family silver farms are always run better under sole operators.
And the crafers were not sole operators
Landcorp should buy the farms then sell to farmers. Oh wait . That is privatisation…… See ! Sometimes private ownership is good.
Or they could buy, develop, and keep for the benefit of all kiwis.
You do understand that it was the individual farmers that caused these to lose productivity and to go into receivership don’t you?
Good management doesn’t automatically come from ownership. In fact, in the NZ experience, ownership usually brings bad management.
@fisiani. Yeah and I suppose Mighty River could stop trading in power too. Buying land developing it and selling it is Landcorp’s core role.
So Trevor you want Landcorp to pay more than market value for the farms.
Just like your mate Cullen did for the Railways and what a Blakhole that is.
Best to let individuals buy the farms and get more New Zealanders into farming.
Ooops – line 2 Blackhole.
I don’t think they need to pay over market pdm. And there is a market here.Sounds like they are heading towards a joint venture where they will have both skin in the game and a management role.
pdm – what you don’t seem to get is that the receivers were trying to sell them as a block and individuals were not and are not easily part of that process.
It’s not a market where individual farm sales are doing well. And these are farms which require some work.
Landcorp has the resources to buy them and invest time in them and then on-sell them to individuals (into a hopefully improving market).
SPC – if you look back on tis thread I think you will find that my first comment was that they should be sold individually.
Trevor – once again you want to put added costs into farm operations by having Managers, managing the managers who manage………….What part of this does not work don’t you understand or is it ideologically entrenched in your thinking.
Hey buddy this is about taking a strategic view of NZ’s strategic economic assets.
Something that you want to boil down to the market price of a farm on the day.
Well if a farm is worth $9M on the market one quarter, $10m the next, and $8.5M the quarter after, what is the real value of the farm? Ask someone with a longer term view than you have and voila! The answer changes again.
CV – Crafer is irrelevant in this argument. The damage he di cannot be rectified and the receivers are reaping the benefit.
ah receivers, how much $$$ do they get
Sorry mate i disagree. Bad management is bad management. Crafar shows that the Right Wing circus line of hands off management always works best and less management always works best is garbage.