2 Mar 2012

Wider base seen for potential farm buyers

1:05 pm on 2 March 2012

The NZ Real Estate Institute is not expecting two new farm purchase funds to have a large-scale impact in increasing the demand for farms.

But it says they will help to widen the base of potential buyers or investors.

Pastoral Dairy Investments announced plans last week to raise a $75 million fund to buy mainly larger farms .

NZREI rural spokesman Brian Peacocke says that will give smaller investors a chance to gain a stake in agriculture.

In another development, the ANZ bank is doubling a farm start-up programme announced late last year, providing up to $120 million to lend to young farmers take their first step in agriculture and progress towards farm ownership.

ANZ says it's had an overwhelming response to the scheme, with about 100 new farmers expected to take up packages by the start of the farming year in June.