Frequently Asked Questions

MyFarm investments are open to investors that are considered as non public investors being either 'eligible persons' under section 5 (2CC) Securities Act 1978 (“the Act”) or fall within one or more of the categories set out in section 3 (2) (a)(i)-(iii) of “the Act”. To ensure adequate disclosure and understanding, the Act provides that otherwise before any offer to the public can be made, an investment statement must be produced, and a prospectus registered; each containing prescribed information. This would take time and incur considerable cost, increasing the amount required to be invested. Any allotments of such securities in breach of these requirements are void, unless an exception (as in this case) or exemption applies.

Section 5(2CB) of the Act provides exceptions or exemptions for certain offers – firstly to "Eligible" persons as per s5(2CC) of the Act who are deemed to be:

1.    Wealthy (net assets of at least $2m or annual gross income of at least $200,000 for each of the last two financial years)

2.    Experienced in; the industry/business to which the security relates; or investing money

Also secondly in terms of s3(2)(a)(i)-(iii)  of the Act to persons being:

3.    Relatives or close business associates of the issuer or Director of the issuer

4.    Habitual investors

5.    Investors subscribing a minimum of $500,000

6.    Any other person who can in circumstances not be regarded as a member of the public.

This is based on the proposition that such investors should be in a sufficiently strong position to make their own investment decisions (because of their knowledge or experience of investment matters) and do not require the usual disclosure protections provided by the Act. In terms of the Application for Investment forms one of two eligibility certificates have to be completed on behalf of eligible investors certifying the eligibility on the above grounds (1 & 2 for eligible persons otherwise 3,4,& 6 to a level to satisfy MyFarm in its sole discretion).

Production targets are set after consideration of a number of factors, including:

• Production achieved in previous seasons on the property and on similar farms locally.
• Our assessment of the productive potential of the farm defined by its soils, contour, micro-climate and our ability to source water for irrigation.
• Forecast increases in production following development/more intensive management (such as better fertiliser management and re-grassing).

Yes it can be. That is why some people prefer to invest with us, rather than perhaps go it alone. Our 21-year track record of providing and managing farm businesses combined with our farming wisdom alleviates many of the risks associated with farming.

We aim to successfully manage farms through a variety of climatic and economic conditions by focusing on quality assets with low levels of debt and then applying the farming wisdom of our experienced, quality farm managers. MyFarm managers are highly trained, experienced career farmers and some also choose to become investors in the farm business.

We believe that investing with MyFarm is an investment in the economic fundamentals of global food demand growth backed by the security of tangible and valuable physical assets such as farm land and Fonterra shares.

Yes, but as yet this has not occurred. Sometimes syndicates opt to take over the management of their investment (all or mostly) after the completion of the initial 3 year MyFarm Management contract.

Yes.

MyFarm dairy investments mean you can own a share of the New Zealand dairy industry for as little as $250,000. You have the flexibility to invest more than the minimum in one farm syndicate or make several investments across multiple farms.

A MyFarm investment is a medium to long-term investment. If you need to redeem your investment in three to four years perhaps this is not the investment vehicle for you. This said even when you plan for a medium term investment there can be unforeseen circumstances that arise which mean you may be required to sell your shares.

You can realise your investment in a MyFarm dairy syndicate when either the farm business is sold or through a share sale managed by MyFarm. MyFarm dairy syndicate shares are sought after and typically sell at valuation within 2-3 months. 

In 2013 MyFarm is planning to develop a secondary market to enable retail investors to participate in MyFarm syndicates. 

MyFarm strives to match like-minded investors to each farm investment. We do this by convening a conference call meeting when the investment group is close to formation. The objective being to;

• Introduce interested investors to each other
• Consider any due diligence items that have arisen
• Discuss the business plan
• Discuss the key terms of the Partnership agreements and the acceptability of the MyFarm property management agreement.

As a MyFarm investor each shareholder is entitled to be nominated for the Farm Board and can participate in the governance of the farm keeping a close eye on their farm investment.

We like to ensure the investment is inclusive and fun for all investors. This often means organising social get togethers for investors around on farm meetings and annual general meetings. We also encourage our investors to attend our biennial MyFarm Conference.

We can’t guarantee you will like all your fellow investors, but you are all have one thing in common - the property you have invested in.