NZAB's Role in Enabling the Next Generation of Farm Owners

Information only disclaimer. The information and commentary in this email are provided for general information purposes only. We recommend the recipients seek financial advice about their circumstances from their adviser before making any financial or investment decision or taking any action.

Helping hard working young kiwis purchase their first farm is one of the most meaningful and rewarding parts of our work. These transactions are never just about numbers, they’re about backing ambition, building trust, and crafting smart, sustainable pathways to ownership. Over the past 12 months, the NZAB Canterbury/Upper South Island team have had the privilege of advising on several successful first farm purchases, each with their own unique challenges and creative solutions. In my view there were three outcomes that were truly rewarding. I wanted to share these stories because I believe they show what is possible in a market that is perceived as impossible.

1. From Sharemilker to Farm Owner: A Long-Term Vision Realised

Our first example involves a client we’ve worked with since 2022, a driven sharemilker with a clear goal: to own his own dairy farm.

We helped them build a plan and position their existing sharemilking business and their contacts to leverage into ownership. The breakthrough came when we facilitated a conversation with their existing farm owner and our client. After several sessions, we worked with our client to present a proposal inviting the farm owner to co-invest in the new dairy farm. Our team proposed a clever structure that protected the farm owner investor’s interests while giving our client a clear path to full ownership. The deal involved the following:

• A shared ownership model with both parties holding shares for a minimum period with an agreed exit plan for our client to become 100% owner, within that period.
• A structure that gave the farm owner investor upside potential and good cash returns, while allowing our client to build equity and maintain operational control.

What ultimately transpired was that after two years, our client was able to fully purchase the shares, and the farm owner investor enjoyed a year-on-year return at double their cost of interest. It was a win/win.

This was a perfect example of how long-term relationships, strategic thinking, confidence and trust can come together to turn a dream into reality.

2. A Multi-Tranche Deal with a Clear Path to 100% Ownership

In another scenario, we advised a client on purchasing a dairy farm through a multi-tranche structure.

The farm was acquired in stages, with the purchase price split across fixed timeframes and a lease arrangement in place until full settlement.

Key elements of the deal included:

• Understanding the vendors (together with their advisors) needs out of the transaction, and presentation of the proposal that was targeted to meet their needs, together with our clients.
• A five-year plan with clearly defined milestones.
• A lease-to-own model on that gave our client operational control from day one.

The above structure gave our client the ability to step into ownership gradually, while still locking in the long-term opportunity. It also gave the vendor confidence in the buyer’s commitment and capability.

3. Finding the Right Equity Partner then Pivoting to Vendor Finance

Our third example began with a couple who were unsure whether to pursue a smaller farm with a larger ownership stake or a larger farm with a smaller share.

We helped them clarify their business goals and identify the type of operation that best suited their aspirations.

From there, we:

• Built a profile around them, their business, their achievements and their values.
• Tapped into our investor network to identify several credible equity partners.
• Conducted due diligence on multiple properties, including financial modelling, and shareholder alignment.
• Ultimately, when both investors stepped back for personal reasons, we pivoted.

We went directly to the vendor of the preferred property and presented and negotiated a vendor finance arrangement that:

• We knew met the bank’s criteria.
• Satisfied the vendor’s needs and security out of the transaction.
• Aligned perfectly with our clients’ ownership goals.

This deal is a great example of how flexibility, deep market knowledge, credit structuring, and (most importantly) tenacity can turn a complex situation into a successful outcome. 

Why First Farm Transactions Matter

Throughout my career, I’ve found the most purpose in helping kiwis buy their first farm. These are not just transactions - they’re life-changing moments. They require creativity, empathy, mahi, the right team, and a deep understanding of both the financial and emotional stakes involved.

At NZAB, we’re proud to stand alongside our clients as they take their bold next step. Because when we back ambition with the right structure and support, we’re not just helping people purchase farms - we’re helping them build futures for themselves and their families. 

If you want to discuss how NZAB may help you take the first step into farm ownership, don't hesitate to pick up the phone for a chat. 

Chris Laming

027 206 4602