Australians join farm club

Press, 5 March 1982, Page 20

Australians join farm club

Ordinary folk with no connection with farming are being given the opportunity of owning part o) a large beef station near Sydney.

The scheme lias been formulated by the Farm Club of Australia which is offering for sale 350 shares oi SA7OOO each in Tugaloug Station, a 2183 hectare farm. Shareholders will be able to take a physical part in the running of the 'farm or simply spend holidays on the property which is situated 180 km from Sydney. Many city 'people wanted to have their own farm but were prevented because of the high cost of buying and maintaining farms 'said the clubs founder. Dr David M. Scienceman a Sydney-based consulting engineer who was in Christchurch recently. The [arm club was set up by the Agricultrual Technologists oi Australasia (A.T.A) to provide city people with the opportunity to enjoy country lite on their own farm. With the initial success of the club and the large number of “hobby” farmers in New Zealand. Dr Scienceman believes a farm club scheme could be successful in this country.

Another aim of the club is to counter the bad effects of "hobby” fanning by offering an acceptable alternative that would keep good agricultural land in efficient production, said Dr Sciencenian. Many "hobby” farms had become inefficient because of the continual work and finance needed to operate them properly. As a result these small-time farmersmany of whom had moved to I he country to escape city life—often lost interest in

their farms and the production capability of the land was wasted.

A committee consisting of representatives from shareholders and A.T.A. members will be elected to manage the station and a farm manager will be appointed to-run the commerical affairs of the property, such as breeding stock, pasture improvement and irrigation development. Shareholders will be able to physically work on the property under the guidance of the manager.

The A.T.A. considers Tugalong to be a commerically viable grazing property which has prospects for a significant agricultural improvement and development as a beef cattle property. It is expected that the station could run 500 cows and progeny in its present state.

In the first couple of years while the commercial aspects of the station are being developed and the size of the cattle herd is being increased. the club envisages making an annual profit of about 5 per cent but later a return of 10 to 15 per cent "would uot be unusual.”

For the last 10 years. Tugalong Station has' been used as a farm holiday property. Ten self-contained motel type units have already been constructed as well as a swimming pool, sauna, guest complex, horse stables and an airstrip.

The farm club is based on the successful development of ski clubs in which members obtain maximum benefit from joint ownership of a recreational investment.

To purchase Tugalong, a company was formed with a maximum of 350 shares.

As well as sharing in ownership of the station, each shareholder will be entitled to a discount of 40 per cent for his family or himself and three adults, on the cost of staying at the station. If a shareholder wanted to dispose of his shares he could either sell them privately or

the farm club would offer them to members. When the shares are fully subscribed the shareholder will own the property, stock, plant, and machinery. Provision has been made to spend $70,000 on pasture improvement, $170,000 on stock and have a working capital of $170.000.