Currently there are a huge number of farmers approaching the retirement age, it’s estimated that there is $150 billion dollars worth of agricultural assets that need to change hands in the near term. However, the capital requirements needed for the next generation of farmers to purchase off market are generally too high. Seedling’s model plugs the capital gap.

Current bank requirements for purchasing a farm are 40% deposit - with most farms being worth well over $5m, the reality of a next generation farmer gathering a deposit large enough to get in is low. Seedling has several mechanisms on top of our basic equity partnership that allows farmers to grow their equity quicker than other pathways whilst providing a win-win with valuable liquidity to the fund.

We target a base range of between 9-14%. This is worked out of conservative milk payouts and interest rates.

We advise a minimum of 5 years to see the benefits of land value growth realised.

We have an initial two year lock in period, then at scale ($150m + AUM) we have consistent rolling liquidity mechanisms. Whilst the fund is sub $150 AUM we advise speaking to a member of our team.

We seek out dairy farms where there is room to improve the asset via adding irrigation, and/or seek farms where there are creative ways of adding revenue (energy leases etc). We also do not seek tier 1 farms where the land value is too high to justify a reasonable yield for our investors.

We do a Net Asset Valuation once a year, this incorporates third party property valuations and third party analysts and accountants, ensuring the valuations are impartial and as accuate as possible.

Seedling is a registered investment under the FMA. Our FSP is: 1009741. We use Syndex as our investment platform and use third party accountants and valuers (names available on request).

Our fees have been designed around aligning incentives with investors for the best possible outcome. We are also invested alongside you with senior management having units in the Next Gen Agri Fund, more details on fees are available in our Investment memorandum.

Your investment in the Seedling Next Gen Agri LP is fueling a purpose built financial product that’s primary focus is to align the incentives of the farmer and the investor. Our model is unique in the fact that we want farms to be moved off our books over time, once the development gains have been realised for the fund, and therefore the investor, this is a win-win for the farmer as they have the incentive to want to take over the entire farm in time and call it their own. 

Yes. We have a strict due diligence process, and also require a minimum investment amount of 300K NZD (plant and machinery can be factored in) and must be over the age of 27.

We handle the back end day to day running of the farm, and provide project management for any development work. Along with this we are keeping a keen eye on the farmer running the farm and giving them all the support they need to make the farm successful. We also handle all of the banking and supply relationships and lead the adoption of technology and systems on the farms.

Currently, yes we are only available to wholesale investors. Watch this space though!

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