Friday, 16 October 2020 11:04

Allied Farmers in new land venture

Written by  Staff Reporters

Allied Farmers is forking out $2.5 million for a new scheme under which rural land will be bought and then leased to successful farm operators.

The company will buy 50% stake in a yet to be established entity, New Zealand Rural Land Management Limited Partnership (NZRLM).

NZRLM will hold the external management contract to provide management services to the New Zealand Rural Land Company Limited (NZRLC). NZRLC is a newly formed entity that will acquire rural land under a landlord model. Underlying rural land will be leased to high quality farming operators.

NZRLC is intending to launch an Initial Public Offering (IPO) next month of up to $150 million and list on the NZX Main Board in December 2020.  

 Allied Farmers is issuing up to 5,000,000 new ordinary shares at 50c/share to fund the acquisition.

Allied Farmers chair Richard Perry says this is an incredibly exciting and pivotal opportunity for the company. 

“Our strategy is to be the major solution provider to agricultural producers, growing value for those producers and our investors,” he says.

“Our NZ Farmers Livestock subsidiary is the foundation upon which we have built and delivered that strategy, and this investment enables diversification in a manner that is complementary to our core values and activities.  

 “We know there is compelling long-term value in owning rural land, and we can see the benefits for farm operators wishing to expand their operational platforms in a capital efficient manner.  NZRLC will be a capital providing partner for New Zealand’s highly skilled and productive food producers”. 

 Perry notes that the number of shares to be issued depends on whether shareholder approval is obtained for the placement.

In any event it will not be more than 20% of ALF’s shares on issue.  If Allied Farmers cannot issue shares, a proportion of the purchase price may be paid in cash.

Featured

 

Lely offerings for the future

Dutch robotic specialist Lely launched a new farm management application called Horizon at its recent Future Farm Days 2020.

Designed to connect data from a range of on-farm equipment and suppliers into one management system, it creates a real-time decision-support platform, to make the farmer’s life easier, the herd healthier and the farm more profitable, says Lely.

Developed over a 24-month period, with over 100 test farmers in seven countries, working with 75 engineers, designers, farm management advisors, veterinarians and AI specialists, the new application will eventually replace the current Lely T4C management system. It uses smart algorithms and the cloud to deliver data that is processed into actionable information that is always accessible on any device in a user-friendly way.

Lely claims the Horizon application unburdens farmers from routine decision making and helps them optimise their workloads, using integrated routines based on easily scheduled cow ‘touches’, create logical and more efficient workflows. It is also possible to assign a certain task to an employee and to schedule a time slot for the cow touch, rather than analysing different reports and filtering long lists.

Horizon is also able to connect and combine data from non-Lely sources into a complete solution for the farmer removing the need to enter the same data twice, while scrutinising individual data streams in different applications will no longer be necessary. Currently, connections with farming applications such as Dairy Comp, Uniform-Agri, CRV and Herde already enable farmers to synchronise information about calving and inseminations between applications. Lely’s ambition is to connect with more partners over time, to hand the farmer more smart data.

To ensure full support in the migration to Lely Horizon, existing Lely T4C customers will be personally informed by their Lely Center before the end of 2020.

The migration is planned in a phased approach, from country to country, over the year 2021.

Also launched at the event, Lely Exos is an autonomous concept for harvesting and feeding fresh grass to the herd.

The company suggests that feeding fresh grass makes better use of available roughage, suggesting “fresh” has between 10 and 20% more nutritional value than grass silage, as there are minimal losses typically seen during mowing, tedding, raking, harvesting and feeding.

Lely suggests that feeding fresh grass over an extended season reduces the amount of silage that has to be conserved, reduces the need for concentrates and bought-in feed and increase the margin made on each litre of milk produced.

Based around an all-electric vehicle that mows and feeds, Exos is light weight and uses soil friendly technology, that can be exploited throughout the growing season. Design to work 24/7 as feed requirements change, the system places no constraints on labour or time, while it is also designed to work in tandem with the Lely Vector automatic feeding systems.

In operation, Exos also collects field data as it goes about its job, giving framers live data on grass supply and lending itself to a further concept of delivering a targeted liquid fertiliser as it passes over a harvested area.

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