Farm syndication in New Zealand is now very much a part of our rural economy. The growth in farm syndication has come from the likes of:
- share-milkers looking at different ways to grow their dairy interests
- professionally managed farming syndicates marketed to the public including existing farmers and new investors
- smaller groups of individuals sharing their resources to provide rationalisation of assets, skills and economies of scale.
Managed farm syndicates are now part of the investment landscape and provide a useful facility to existing farmers seeking to diversify and contribute their skills and experience. New non-farming investors are attracted by the opportunities presented.
Whilst these managed syndicates are generally professionally managed, documented and presented, the more usual "closely held" syndicates seem to be more hit and miss. This is understandable given the range of issues to be addressed in setting up a farming syndicate in, usually a constrained period - our initial questionnaire we work through with clients goes to 6 pages!
We often hear the saying "the devil is in the detail" – farm syndications are no exception. There is no substitute for good preparation, a clear process, full understanding and commitment.
For a 'Joint Venture Checklist', or further information contact:
P: +64 6 370 6475