Investors back regen farm

Colin Williscroft colin.williscroft@globalhq.co.nz

A SYNDICATE of private investors is backing what it sees as the future by investing into a farm that’s being run on regenerative principles.

The Future Farming syndicate has been created by Napierbased investment management company Tremain Capital.

Owner Chris Tremain says the company started out investing in commercial properties, which still underpins much of what it does, but more recently it has moved into horticultural and agricultural investment opportunities, one of which is Greg and Rachel Hart’s Mangarara farm in Central Hawke’s Bay.

He and Greg have been friends for more than 30 years, so he was aware of Mangarara’s regenerative approach to farming and Greg’s vision for the future.

He also knew that Greg was looking for some external investment in the farm and that Tremain Capital’s limited partnership model could be an opportunity to provide that, which led to the establishment of the syndicate.

There are seven investors involved, some of who were already connected to the farm and others who were not but who were part of the Tremain Capital’s wider investment community.

Because of the syndicate’s model its members have to be wholesale rather than retail investors. To qualify for that, investors have to meet criteria set by the Financial Markets Authority, including having already invested in a range of financial products for a period of time of their own accord.

Tremain says like all investments there’s an element of risk and the returns available are different to other opportunities.

“Many of our investors are looking for a more meaningful investment within their portfolio. The investment into Mangarara will help to restore the land, improve animal health and support the wider rural community’s health,” Tremain said.

“The investors are a mix of relatively high net worth people who want to be involved in an investment that can help shape the future of New Zealand farming.”

He says, for these clients, profit is just one driver amongst a range of other holistic goals, including soil, animal and people health.

“In addition to running a profitable farm, there will be an accommodation dividend so we’re establishing a partners’ cabin on the property, which will be built over the next couple of years,” he said.

“And there’s a produce dividend, so part of the return profile includes receiving produce off the farm every six months or so.”

There will also be dividends when the business can support this cashflow, along with any capital value appreciation over time.

Greg says he got involved for a number of reasons.

“It has given us the ability to get rid of all our bank debt and allowed us to get some cash out of the farm as well as adding capital to the farm business, which will be used for further development,” Greg said.

“It also brings the expertise of Tremain Capital, who have obviously been very successful in a number of their businesses.

“There’s always plenty of room to improve the business, with our sales and marketing, and business strategies.

Although they’ve only been in this for a few months now, it’s exceeding their expectations.

“We’ve had challenges coming out of the second pretty dry summer/autumn in a row but no longer do you feel alone as a farmer dealing with these issues,” he said.

He says the extra layer of support helps to make decisions based on sound investment principles rather than emotion.

It also brings discipline to the farm’s management, particularly around budgets and reporting.

“Having these people involved with our business, both as support and to help make sure the right systems are in place, like good business management processes and structures, is really beneficial,” he said.

Tremain says this type of investment won’t suit everyone and like all businesses, there will be tough times.

The investors have a clear understanding of how it works and Greg has set up a WhatsApp group chat, so they can be engaged on a daily basis with what’s happening on the farm.

He says for most of those involved the syndicate is a relatively small part of their investment portfolio.

“Of course they want to make a profit but I’m increasingly seeing members of my investment community wanting to have some investments that have a social and environmental aspect to them,” Tremain said.

“They also want to be part of something that’s growing and improving our environment and our planet.”

He says in terms of the word regenerative, almost every New Zealand farmer is on some part of the journey towards it.

“Everyone is trying to improve their farm and leave a better legacy for their kids or for the future, but I think what the regenerative movement is helping to do is better define soil, animal and farmer health for both the rural community and their customers,” he said.

“It’s certainly got a big future.”

VALUED CONTRIBUTION: Greg and Rachel Hart have welcomed the input of private investors in their Central Hawke’s Bay farm.

They also want to be part of something that’s growing and improving our environment and our planet.

Chris Tremain Tremain Capital

O’Connor applauds hort industry’s efforts

Gerald Piddock gerald.piddock@globalhq.co.nz

AGRICULTURE Minister Damien O’Connor has paid tribute to the horticulture industry for its work over the past 18 months, which has been one of the toughest periods the sector has had to endure.

He thanked the industry for its work at Horticulture New Zealand’s annual conference at Mystery Creek, as it battled chronic worker shortages and adverse events.

The physical and mental wellbeing of growers had been put to the test over the past 18 months and he thanked growers who had supported others struggling at that time.

“That’s the way we will get through this,” O’Connor said.

He says there are 60,000 people working across the horticulture sector and labour shortages will continue to be a challenge; New Zealand was unique in that it has

“It does leave us exposed ... in international events like covid. These events unfortunately are likely to occur in the future,” he said.

The recent announcement to allow workers from Tonga, Samoa and Vanuatu for quarantine-free travel will take some pressure off the labour shortages.

To critics who said it was too late, O’Connor says the world was still very much facing covid.

“Fiji has not been so lucky and any covid introduction into those islands will be devastating. We have been hard-nosed in ensuring there is proper protection for that two-way travel,” he said.

While the Government will continue to support growers needing RSE workers, he says it needed to think about making a longer-term worker transition so it was less reliant on these workers.

On trade, O’Connor says they are making progress in free trade agreements (FTAs) with the UK and EU. He hoped to have further news on the agreement by the end of this month.

“We always have high agreement on your behalf, but ultimately it is a negotiation. We have the advantage of the UK needing to reach out to the rest of the world to re-engage through formal trade agreements,” he said.

NZ was next in line for a trade agreement after Australia and had a different set of interests to that country.

“Let me reassure you that your interests have not been forgotten, put to one side or minimised in any way,” he said.

It was similar with the EU trade agreement, where the two parties are like-minded and share the same values.

This was particularly the case around climate change and they were determined to deal with people who are making efforts to reduce emissions.

“We can give them that assurance and that gives them some comfort,” he said.

Any agreement would not undermine the EU’s local producers or swamp its market with products.

“A trade agreement with the EU is one that will offer value for all of us and it’s not about competition. I’m sure we will get there,” he said.

On the Commerce Commission’s supermarket report, O’Connor said it had exposed a few realities and the Government was considering the report very carefully.

“For individual growers, it’s been impossible for them to speak up. I can assure individual growers that I will ensure your individual interests are upheld. Sponsorship doesn’t necessarily give you the right to suppression,” he said, in reference to supermarket chain Countdown being one of the main sponsors of the conference.

“We have healthy competition across our economy in all areas of supply and demand and the Commerce Commission’s role is to ensure that.”

TRYING TIMES: Agriculture Minister Damien O’Connor says covid-19 and adverse events had made for a tough year for fruit and vegetable growers.

#AginED ED FOR FUTURE AGRIPRENEURS!

Volume 69 I August 16th, 2021 I email: agined@globalHQ.co.nz I www.farmersweekly.co.nz/agined

Have a go:

1 Go to https://farmersweekly.co.nz/section/ https://farmersweekly.co.nz/section/

other-sectors/on-farm-story/they-grab-everyopportunity

Watch the Onfarm Story of David and Kate Acland

“We farm with a hundred year vision ” and read the accompanying article “They grab every opportunity ”. 2 Where in NZ to David and Kate Acland farm? 3 How many hectares is Mt Somers Station?

STRETCH YOURSELF:

1 The Aclands have several facets (aspects) to their farming systems. Can you list all of these? 2 What lies behind the 100 year vision that the

Aclands have? 3 What are the proportions of stock units from each facet of their farming system (i.e. how many sheep, finishing cattle etc.)? 4 Both Kate and David believe that off farm involvement is very important. What do each of them do outside of their farming business? 5 Why do Romney sheep suit their farming practice? 6 The farm is unirrigated, necessitating keeping stocking intensity lower. Why is this? 7 Mycoplasma bovis has impacted the Aclands in several ways. How has it changed their farming system? 8 Two thirds of their hoggets go to the ram. What do they grow on farm to help these reach their required weights?

PARASITES AND PESTS

Have a go at finding the pests and parasites listed below in our word find.

Do you know what each of these pests and parasites are and the problems they can create within the food and fibre sectors? Do some research on any that you aren’t familiar with. There are many interesting facts about them, how they got here and the problems they create. Wasps Mustelids Aphids Potato tuber moth Diamondback moth Thrips Codling moth Leafrollers Black Field Cricket Velvetleaf Yellow Bristle Grass Giant Buttercup

Clover Root Weevil Black Beetle Mice Pukeko Rabbits Possums Lice Ticks Tapeworm Roundworms Liver Flukes Lung Worm

Research is casting doubt on the economic value of drenching ewes with long-acting products. A co-funded study by AgResearch and B+LNZ has looked at the longer-term immunity of animals treated with longacting drenches compared with those that aren’t.

To read more head to https://beeflambnz.com/newsviews/value-long-acting-drench-treatments-againunder-spotlight?fbclid=IwAR1XjF-7Qe5R1dmcT77lBn This information from NZX Dairy shows Global Dairy Trade prices for various dairy products.

Have a go:

1 On the graph, in what months did prices peak? 2 What dairy product is valued at the lowest in US$/tonne? 3 What dairy product is valued at the highest in US$/tonne? 4 How are dairy products tracking compared to a year ago?

STRETCH YOURSELF:

1 Which product has seen the sharpest decline over the last few months? 2 Why do you think prices reflected on Global Dairy Trade are so important to the New Zealand dairy industry? 3 Do some research, what does WMP, SMP and AMF stand for? 4 Cold and wet weather across the country has slowed pasture growth. How might this affect the supply of NZ milk?