1 Apr 2012

Smaller farmers fear squeeze by corporate owners

9:33 am on 1 April 2012

Some farmers fear they are being squeezed out of the property market by corporate owners with better buying power.

As dairy farms become larger and more expensive, corporate ownership is becoming more prevalent.

Federated Farmers dairy chairperson Willy Leferink says corporate owners tend to own more than one farm and can use their buying power to negotiate hefty discounts.

He says it is frustrating the rest of New Zealand's farmers can't access the cheaper prices.

The country's largest corporate farmer Landcorp says corporate owners face extra costs for training and governance.

Landcorp chief executive Chris Kelly says corporate owners are often better placed to invest in farm technology such as state of the art milking systems.