Landcorp buys Hakataramea for new scheme

Press, 8 December 1987, Page 2

Landcorp buys Hakataramea for new scheme

By

OLIVER RIDDELL

in Wellington

Hakataramea station has been bought by the Government. The Land Corporation plans to turn it into three farming companies.

Ten years ago the station was the centre of controversy when it was sold to a syndicate of local farmers. In recent years the entire Hakataramea Valley has been subject to severe drought and bad wind erosion. The price paid by Landcorp to the syndicate is being kept secret, but it entails the purchase of 6887 ha, which is most if not all of Hakataramea station. Landcorp’s chief executive, Mr George McMillan, said there was scope for three if not four separate farming businesses. Shareholder farmers would be able to buy an equity in the station land. This is being done under a new scheme initiated by Landcqrp. It is intended to help proven farmers or farm managers improve their position in farming. It would not replace farm development

schemes, he said, and Landcorp would do the selection itself without any ballots. The scheme would provide opportunities for experienced farmers to move on to properties that were larger or offered more potential than their own. They would manage and be equity partners with Landcorp, requiring to find at least 30 per cent of the capital for the partnership. Landcorp did not need to be the main partner, Mr McMillan said. It could include investors or farmers who intended leaving farming, or both, and in such cases Landcorp would establish the venture on behalf of the clients and provide an ongoing consulting service.

Landcorp expected a 14 per cent gross rate of its investment at the start, rising to 20 per cent eventually. “Given current market

conditions the properties are expected to generate a good commercial return,” he said. Landcorp would take possession in mid-Febru-ary. The land was carrying 34,500 stock units, and this had been as high as 37,500. With good management and top-dressing this could be lifted to 40,000 in three years. The owner of Ngaripa station, also bought by Landcorp for the new farming scheme, said the land had tremendous potential and if he were 30 years younger he would not sell it, reports NZPA.

Mr Michael Rattray has been working his 1300 ha station, in South Canterbury, himself for the last nine months and thinks Landcorp’s plan is a good one.

Mr Rattray said he was selling because he was at retiring age and none of his family wanted to farm the property.