Affordability a major stumbling block for young Kiwis wanting to own a farm - 'Would be good to own our own dirt'

June 17, 2018

It's prompting National to again suggest selling off state farms to those starting out.

Affordability is proving a major stumbling block for young Kiwis wanting to own a farm, prompting National to again suggest the selling of state farms to those starting out.

One dairy farmer, Josh Cozens, has a dream of one day owning his own farm.

"It would be pretty good to own our own dirt, yeah," Mr Cozens said.

As a contract milker, Mr Cozens runs a dairy farm near Tauranga but does not own the land - or the herd.

"Certainly seems to have become more and more difficult over the last sort of 10 years for younger farmers to get into farm ownership."

While the number of individual farm sales has dropped, the cost of farm land remains steady.

The median price per hectare was $27,000 over the last three months, which young farmers say is expensive and, for most, will be too difficult to finance.

Young Farmers chief executive Terry Copeland said: "If there's any way that a scheme can be created where you can lease to buy, whether it's through government-owned land or a mechanism where you get preferential buying rates, I think young people would flock to being farmers."

A lease to buy scheme was floated by National at the last election with the idea of selling state-owned farms.

National MP, Agriculture Nathan Guy said: "It's National's view that Landcorp needs to be shrunk.

"They have about 150 farms [and] they're worth about $1.7 billion in asset value - that is massive."

Landcorp owns 169 hectares of land and manages another 203,287 hectares.

Combined, the total is six times the size of Lake Taupo.

"I'd definitely think there's an opportunity for Landcorp to open the door," Mr Cozens said.

Agriculture Minister Damian O'Connor concedes farm affordability is a major challenge, saying that he is open to exploring options to make farm ownership more attainable.

However, the minister in charge of Landcorp, Deputy Prime Minister Winston Peters, says the government has no plans to consider a lease to buy programme.

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