Seedling Next Gen Agri L.P.
Agri-Business
The law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to this offer if you are a person who comes within Schedule1, clause 3(2)(a)-(c) or 3(3)(a)-(b)(ii) (inclusive) of the Financial Markets Conduct Act 2013. This includes where the amount invested upfront by the investor (plus any other investments the Investor has already made in the financial products) is $750,000 or more. If you fall within Schedule 1, clause 3 of the FMCA as a result of this exclusion, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for this investment. Investments of this kind are not suitable for retail investors. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.
Seedling Investments NZ is proud to present the launch of the Seedling Next Gen Agri Limited Partnership.
Seedling offers a unique opportunity to invest in the engine room of the NZ economy, and capitalise on unique market conditions of the succession crisis in farming by providing a win-win financial product.
Currently the average age of a dairy farmer is 55, for sheep and beef, it's 64. These farmers are looking for an exit and are struggling to find buyers, on the other side of the table, we have the next generation of farmers who can’t meet the capital requirements to get into ownership presenting a great opportunity for a financial product to meet the gap.
Leading rural bank Rabobank's 2025 whitepaper wrote that there is $150b of Agri assets that need to change hands in the near term, creating a long term market. This is not only an opportunity to support the rural sector of New Zealand, but an opportunity for improved acquisitions through off market transactions and retiring farmers supporting the initiative, knowing it will help the next generation. Your investment also becomes managed by operators who have the exact same set of incentives as you, as they’ve got skin in the game as well.
This is an opportunity for investment in the Limited Partnership capital raise, taking part in the initial unit issuance event. The Seedling Next Gen Agri Limited Partnership is open only to wholesale investors under the Financial Markets Conduct Act 2013.
For New Zealand’s economy, dairy continues to represent a significant contributor to the country’s exports, with over 95% of our dairy production being sold to more than 130 countries worldwide. In the year ending March 2024, dairy exports were valued at $23.7 billion, accounting for 24% of the country's total export values.
Investment into the Seedling Next Gen Agri Limited Partnership is backed by total assets. This includes land, residences, stock and equipment held. This provides investors security, and exposure to rural property market value movements. You can read more in this week's BusinessDesk article here.
Investment Highlights
- Target 9-14% pre-tax IRR with annual cash distributions starting from year 2 (target range 5-13%) in line with S&P/NZX50 10 year annualised returns of 8.94%**
- Multiple income streams with traditional dairy production plus emerging revenue from carbon sequestration and renewable energy
- Strong asset backing with total farm assets including land, livestock, and infrastructure
- Potential for significant capital growth as we focus on properties with developmental potential
- Our model directly aligns farmer and investor interests through innovative equity partnerships minimising operator risk and allowing us to attract top talent.
- Environmental enhancement through multi-species pastures, carbon sequestration, and reduced fossil fuel usage.
To find out more about the Seedling Next Gen Agri Limited Partnership, request a copy of the IM or discuss any questions you may have, speak with the Seedling team by registering your interest below.
*Targeted cash distributions of 5% p.a. paid every six months from year 2 of the LP, after fees and before tax.
** Source: NZX Trading - https://www.nzx.com/services/nzx-trading
