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 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

It is becoming increasingly difficult for the New Zealand dairy farmer to access capital to grow and enhance their business.

  • Financial institutions are becoming increasingly cautious around farm lending.
  • The Reserve Bank is encouraging banks to act prudently with farm lending.
  • New legislation requires banks to hold more capital further restricting borrowing.
  • Restrictions on foreign investment further compound lender cautiousness.
How it Works

Complimentary to existing bank lending

  • The banking industry in New Zealand is welcoming this leasing option as an alternative to raising capital via bank lending.
  • An approved herd-leased farm will help improve a bank’s view of that farm’s credit quality, positioning it well for future financing.
  • The farmer sells the herd to StockCo Capital at market rates but the farmer still owns the progeny and the milk produced over the term of the lease.
  • By the end of the lease the number of cows leased has reduced to zero so the farmer owns the herd outright again at the end of that period.
  • On a herd size of 1000 cows valued at $1,600 per head this would release $1,600,000 of capital.
  • 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 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.
  • The farmer provides a signed Dairy Order so payments are made directly by the dairy company.
  • The farmer 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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