MyFarm for Investment
June 2010
Who is MyFarm?
MyFarm is a farm syndicate investment company. It provides investors quality opportunities to invest in farming.
In the period from 1990 to 2008 returns from MyFarm syndicate farm investments have averaged >17% p.a. Returns come from ‘dividend’ or cash payments and capital appreciation on the eventual sale of the property.
MyFarm’s investment opportunities are carefully appraised by the company’s three Directors, Andrew Watters, Cliff King and Grant Rowan who have a wealth of experience as farm owners and award winners.
MyFarm investment proposals target;
- Quality farms with the ideal combination of good location, soil type and climate
- Farms which are undervalued
- Farms where production can be increased by 25%
- Tax-efficient returns of more than 12% p.a.
What is a MyFarm syndicate?
A MyFarm syndicate is a farm business owned by two or more parties (typically 6-12 investors). The investment is usually structured as either a Private Company, or a Limited Liability Partnership with ownership issued in proportion to the sum invested. The business will usually own the land, plant and stock and will employ a manager or sharemilker to run day-to-day activities (often the manager is also a co-investor in the business).
Each farm business has a constitution and a Shareholder (or Partnership) Agreement defining the relationship between the investors. At the outset MyFarm’s role is to ensure investor expectations are clearly outlined in the Agreement and all investors have common goals for the business, including:
- Investment period or term
- Decision making processes
- Exit procedures
Investment returns:
MyFarm investments generate two types of returns; annual cash returns and expected capital growth. MyFarm targets cash returns of 4% - 7% p.a. commencing after the first establishment year, and capital growth from property and production improvements equating to 2% - 4% p.a. above inflation. MyFarm has a 20-year track record of achieving 5% per annum above industry average returns.
What are the safeguards?
- Top 10% on-farm performance. Each MyFarm syndicate has a management contract available for supervision by the MyFarm Management team. MyFarm is New Zealand’s most experience rural asset manager, currently managing 31 farms in Australasia, milking 26,000 cows on 13,000 hectares.
- Buying undervalued quality assets that can achieve a 25% increase in production. Quality drives cash returns and enhances eventual sale returns
- Tight fiscal discipline. MyFarm investments minimise borrowings. Low debt reduces risk and maximises cash returns.
Why become a MyFarmer?
- MyFarm Syndicates give you more control than other more traditional forms of investment. You can elect to be a Director at the outset and you can attend on farm meetings and fields days, AGMS and participate in quarterly conference calls.
- MyFarm syndicates are tangible, real investments that you can touch and experience.
- MyFarm syndicates offer diversity with investors coming from a large cross section of people. Typically they include farmers, professionals (such as accountants, lawyers and medical professionals) and a mix of people who have some connection with (or interest in) rural New Zealand.
- As a MyFarm investor you are able to benchmark your syndicate’s performance with similar farms; benefit from MyFarm’s negotiations for farm input bulk purchase deals; receive weekly news updates and participate in MyFarm events such as our conference in Invercargill Nov 2010.
- MyFarm can help you sell your investment thought its strong pool of investors looking to buy shares at realistic price
