Growing Trend Towards Managed Equity Partnerships

Author(s): 
Andrew Watters is a director of MyFarm and its sister company AGInvest. He has special responsibility for deal sourcing, capital raising and business planning. He also owns two dairy farms, milking 550 cows on irrigated land in Wairarapa.
Issue: 
September 2008 - Page11 of the Journal: Page 13 of the PDF

Dairy equity partnerships have been the domain of keen young
sharemilkers and entrepreneurial dairy farmers banding together
to buy farms in regions where land could be relatively cheaply
converted to dairy. Many have been successful, but they can also
be extremely hard work for the equity partners involved.
At MyFarm we have been syndicating New Zealand
farmland into managed equity partnerships since 1990. We
currently manage 21 dairy farm companies with over 14,000
cows on 7,400 hectares in New Zealand, and 500 hectares in
Australia. Recently we have noticed an increasing trend away
from hands-on equity partnership involvement towards managed
equity partnerships. More than two thirds of our investors are
farmers looking to grow their business and diversify their risk,
but without adding to their workload.

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