MSI Global Alliance
Media Release: 26/06/14
Foreign direct investment in New Zealand farm land
By Michael Woodward, Mackay Bailey, Accountants, Christchurch
With current favourable commodity prices and global food security issues there is strong interest from foreign investors
purchasing an interest in New Zealand farm land. This is particularly prevalent with dairy farms which New Zealand is
well known for. In addition, we are seeing interest in pastoral grazing properties for sheep, cattle and deer as well as
cropping farms.
Foreign nationals or corporates are able to directly invest in New Zealand farm land. Purchases of land in excess of 5ha
or sensitive land generally require consent. Consents are considered by the Overseas Investment Office. In assessing
consents, the OIO primarily considers whether the intended purchaser is of good character, is experienced in farming and
the purchase will create an enduring benefit for New Zealand. Professional advice early on in the OIO process can ensure
the successful granting of a consent.
At Mackay Bailey, we recently assisted investors from the United States with the purchase of a large sheep, cattle and
deer grazing property. Advice included choosing the appropriate investment entity, advising on the tax implications of
the investment, accounting support, payroll and even delivering employment contracts to on-farm staff on the day of
takeover.
Looking to invest? Seek out an advisor who has relationships with other rural professionals including, estate agents and
farm advisors, to help form a group of professionals to support your investment in New Zealand farm land.