Thinking about investing in NZ dairy farms while the industry is down – great idea.
Counter cyclical investing is about investing in an asset or stock while it is poor performing on the basis that performance is cyclical and the market will correct and returns will improve along with asset values.
BUT buying a farm and generating returns is not like buying commercial property or shares in the stock market OR is it?
HerdHomes® Systems Ltd is now here to help you through this period by sourcing & supporting a farm adviser to that will guide the investor for the first few years.
Why is this important?
NZ farming systems are based on NZ’s temperate climate and ability to keep animals outside all year round. The majority of the rest of the world is based on full housing systems using cut and carry. HerdHomes® Systems utilises a hybrid of the two of these taking the best from both.
It is a different philosophy from either full outdoors or full indoors and as such there are a limited number of people who understand this. Ironically the majority of people who do understand it are framers – and this is demonstrated by the awards clients with HerdHomes® Shelters have won up and down the countryside.
This hybrid system has been developed over the last 10-12 years of use as we have captured the knowledge of hundreds of farmers using HerdHomes Shelters. This means it has been developed based on the challenges and circumstances we face today – not the drivers of 20, 30 or 50 years ago.
The underlying principles are to focus on profit rather than minimising costs. For example a typical farm could spend upwards of $100,000.00 on an effluent system to enable them to manage effluent. A HerdHomes® Shelter allows you to manage effluent simply plus reduce your fertiliser expense year on year.
It is typical for farm systems with HerdHomes® Shelters to increase their overall spend BUT it is also typical to find a corresponding increase in production and so the cost / kg MS falls. Produce more at a lower cost.
Talk with us early about what is possible in today’s environment and set yourself up for the future.