Field Notes, powered by KPMG, is a weekly news update on news nationally and globally from the agri-food sector.
Agri-finance company StockCo Capital has announced a $1 billion investment to fund a herd leasing service in order to help dairy farmers to raise capital. General Manager Will Purvis stated that farmers using their service will sell their cows to StockCo Capital and agree to lease them back, unlocking capital tied-up in their herd which can be then used to fund infrastructure, purchase land or restructure finances. Mr Purvis stated that it is estimated that 30 percent of dairy farmers in New Zealand are classified as being highly indebted, and this combined with the economic impact of Covid-19 as well as other factors is resulting in farmers struggling to access the funds they need to maintain and grow their business. The leasing service will initially be available to Fonterra Cooperative Group farmers and is aimed at those who are financially sound. Mr Purvis estimated that the average dairy herd of 400 cows will release $625,000 of capital through herd leasing. The leasing service includes features designed to support farmers, including lease payments being made during peak production, when cash flows are at their stronges
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