January 25, 2008
Want To Hire A Cow?
We’ve seen cars, bikes, bags, even dogs as part of ever-expanding popularity of rental schemes, but this is the first cow-rental plan we’ve encountered! New Zealand agricultural provider and finance company PGG Wrightson have launched a new livestock leasing plan to help farmers combat the rising price of dairy cows.
PGG Wrightson finance general manager Peter Engel said New Zealand had 3.92 million cows, worth about $7.83b. In the last 12 months, the value of a single dairy cow has risen from $1250 to $2000, making the capital value of an average dairy herd worth around $700,000.
The option could be used by farmers wanting to convert to dairy and those wanting to buy more land, who needed to free up some capital, or sharemilkers looking to expand quickly. It could also attract equity partners who wanted to buy out other partners.
The plan is based on a five-year lease, at a cost of 2.7% per cow per month. The cows go back to PGG at the end of the lease. Farmers would own the progeny, letting them build their herds.
read more here
via Stuff.co.nz
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