How it works

A Snapshot

We buy your herd at the market rate, releasing capital for you to apply to your business.

We lease the herd back to you and you continue to receive normal milk revenues.

You pay lease payments to us when your cashflow is strongest - typically over a 4 year term.

The leased herd is progressively culled over the term of the lease. The cull value of the leased herd is determined at the outset.

Replacements can be retained by the farmer/sharemilker until the herd is owned outright or they can be sold and leased back to provide
cashflow flexibility.

How it Works

A smarter way to free up capital

  • StockCo Capital can help New Zealand dairy farmers and sharemilkers access capital to accelerate business growth.
  • The herd owner sells the herd to StockCo Capital at full market rates to release their equity in the herd.
  • The herd owner continues to receive all of the milk revenue from the entire herd and owns the progeny produced by the herd over the term of the lease.
  • By the end of the lease, the number of cows leased has reduced to zero so the herd owner owns the herd outright again at the end of that period.
  • The IRD has issued StockCo Capital a binding ruling, meaning that the lease payments are tax deductible, thereby making this option a very cost effective source of capital.

See our cashflow comparison chart in the ‘Resources’ section

How it Works

Further leasing detail

  • The farmer/herd owner maintains ownership of the milk, progeny and replacement stock.
  • Timing of payments is flexible, but are typically made between December and May when cashflow is generally more positive for the farmer/herd owner.
  • The farmer/herd owner provides a signed Dairy Order so payments can be made directly by the dairy company or by direct debit.
  • The farmer/herd owner is able to retain cull proceeds and the cull payments can be made to StockCo Capital either in the year the cows are culled or deferred until the end of the lease.
  • The amount deferred can be the full cull payment or an agreed portion.

Speak to a StockCo Capital representative today

Contact our team to discuss your capital raising options

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