Farm fund for city slickers

A new fund offering non-farmers the chance to invest in the agriculture sector is expected to be launched next month - but it will not be listed on the NZX.

The Business Herald understands the offer will be aimed at getting farmers and members of the public to pool tens of millions of dollars for investment in New Zealand farming.

The fund was planned after the success of the PGG Wrightson-promoted NZ Farming Systems Uruguay offer which raised $105 million for beef and dairy farming in that South American country.

But the new offering - details of which have not been finalised - is expected to be focused on domestic farms.

It is understood that investors would get returns from several sources related to a holding company running the farms.

Besides NZ Farming Systems Uruguay, other recent agricultural and horticultural sector investment offerings have included Dairy Equity's Fonterra swaps scheme and Delegat's wines.

The idea of a full or part listing of Fonterra shares has also been mooted as the company reviews its capital structure.

Many of the big food companies - Fonterra included - are run on the producer co-operative model, limiting the ability of the general public to invest in a slice of sizeable farming operations.