High Court farms decision could deliver certainty

A High Court decision that will see Ministers revisit the sale of the former CraFarms could improve investment certainty in the long run. When it finally comes to an end, Federated Farmers believes a thorough review of the receivership is needed.

“I recall Bruce Wills, Federated Farmers President, saying only last month that this legal challenge will put new overseas investment rules and processes through an acid test,” says Willy Leferink, Federated Farmers Dairy chairperson.

“Whatever falls out from this, it can only help to make overseas investment processes more robust.

“It’s also no secret farmers are asking some big questions about the receivers ‘all or nothing’ approach to selling these farms. There are plenty of farmers who could have bought individual farms as going concerns.

“Since these farms went into receivership, some 150 dairy farms have been sold nationwide. In the three months to December 2011, sixteen dairy farms were sold in the Waikato and Bay of Plenty.

“Eyebrows were raised when the Waikato Times reported the receivership bill was over $6 million as of last October.

“The decision to sell the farms as one lot has only prolonged things. All the while, the physical and productive capacity of these farms has suffered,” Mr Leferink concluded.