Landcorp will continue to run farms in the Far North that are to be transferred to the ownership of iwi there as part of a Treaty of Waitangi settlement.
The Crown and Te Hiku Forum, a group of five Far North iwi, have signed an agreement in principle towards settling Treaty claims that have been under negotiation for more than 20 years.
The agreement includes the transfer of the Aupouri forest along with accumulated rentals and seven farms from Landcorp and Crown agencies.
Deeds of settlement could be finalised and signed late this year, or next year.
Landcorp says that won't end its association with the farms.
Chief executive Chris Kelly says Landcorp will become the sharemilker on one of the farms, which is a dairy unit. The SOE will still own plant and livestock on the farms.