» Myfarm Track Record

MyFarm track record

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1990-2007

From 1990 to 2007 MyFarm traded under the name Agricultural Investments Ltd. The business had a dual focus; providing agribusiness consultancy services and investment opportunities in dairy.
  • During that time there were 22 farms bought, operated and sold including six dairy conversions.
  • The farms represented $66 million of investment and $31 million (46%) of debt.
  • Milksolids production increased from 998 kgMS/ha to1188 kgMS/ha under MyFarm management.
  • $20.1 million was invested, which realised $54.7 million for investors.
  • The average rate of return (measured as IRR)1 was 23.7% p.a. with a range from 2.3% to 68.1%. During that same period the average rate of return for a NZ dairy farmer was 15.6% p.a.

2007-2010

The brand name, and subsequently company name “MyFarm” was introduced in 2007.
  • The investor model employed the same tenets of property quality, fiscal control and quality management, but added low levels of debt as part of the investment model.
  • MyFarm has bought and manages 15 NZ farms purchased between 1 June 2006 and 1 August 2010. Total capital invested was $160 million with $59million (37%) of debt.
  • Milksolids production has increased so far from 1065kgMS/ha to 1221 kgMS/ha under MyFarm management. The target is 1300 kgMS/ha.
  • Taking an estimate of current farm and asset values,if they were to be liquidated today the investors would earn a total return of 10.2% p.a.2 with a range from -0.9% to 19.2%. For the same period, an average NZ owner-operator earned 6.1%3.
  • All of these farms are being farmed on and the majority still have production and profit potential.

2010 - TODAY

  • MyFarm has bought 19 farms with a total asset base of $270 million, funded with $44.7 million (16%) debt.
  • Their average EBITDA was 7.8% p.a. for the 2010/11 operational year with a range in performance from 3.4% for a newly purchased property undergoing development to 13.3%.
  • The target is to increase milksolids production from 933 kgMS/ha to 1304 kgMS/ha.

OTHER FARMS

  • Not included in this analysis are three NZ sheep and beef farms and three dairy farms from Australia. Also not included are two Tararua dairy farms, a Northland dairy farm and three Waikato dairy farms.
  • These are farms where MyFarm has not retained the management contract for the operation of the property and we are not in a position to assess their value or performance. However, in general terms, the initial purchase price and several difficult seasons (summer droughts) have impacted on these dairy farms’ investment performance.
  • We note that MyFarm has retained management of all South Island properties and provides management or other services to four properties in the North Island.

 

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1 Measured as a ‘timeline IRR’ over the investment period.
2 A simple average of individual farm IRR’s.
3 DairyNZ data