Paengaroa property offers diversification option

A Paengaroa, Te Puke property is selling with a potential solution for any land that might otherwise end up converting to forestry.

Phil Goldsmith of PGG Wrightson Real Estate, Whakatane is offering the 166 hectare property for sale. He says innovative land use, based on carbon neutral farming, has resulted in a creative way to continue running livestock profitably on the steeper slopes, which better complements the property’s productive flat land.

“Throughout New Zealand many sheep and beef farms have sold in recent years for conversion to forestry. On this farm the current owners have come up with a progressive and far-sighted solution that diversifies revenue from their steeper slopes, without planting pine trees.

“To complement its 70 hectares of fertile flat land, three years ago this property’s present owners planted 14 hectares of the farm’s slopes in 960 elms and maples. Spaced to create a 30 per cent canopy cover, these were established to control erosion and mitigate the farm’s carbon footprint. From 2025 they will also generate revenue from the Emissions Trading Scheme (ETS). This creative combination of the slopes, the tree species and the level of cover they will provide enables stock to continue grazing the paddocks, therefore diversifying revenue from land that under traditional management would be less productive.

“Elsewhere, on the farm’s steeper sections, in 2019 1.2 hectares was planted in 4200 natives, which are similarly on track for ETS revenue generation, and further support the property’s future-proofed credentials,” he says.

Grazing a mix of Wiltshires and Herefords on the elm and maple planted slopes, the trees are flourishing and were selected to grow to medium height only, therefore enabling pasture to grow underneath. They are registered with the ETS, and forecast to return full value under the scheme by 2029. Maple syrup production is another potential future revenue opportunity from the planting, which would have zero impact on livestock production or ETS returns.

Intelligent adaptation to the ETS is not the only innovation to broaden the farm’s revenue streams.

“‘Falcon’s Nest,’ a new build luxury cabin situated in an appealing and secluded part of the farm is marketed via the Canopy Camping website: https://www.canopycamping.co.nz/falcons-nest. It ranks as one of the Bay of Plenty’s foremost accommodation retreats, with outstanding occupancy, making a significant contribution to the property’s bottom line,” says Phil.

Since 2018 several other improvements have been undertaken on the property.

“First among these is full renovation of what was previously a standard 1960s era rural three bedroom house, which has had a sheltered outdoor entertainment space added off the living area, an ensuite and walk-in wardrobe added to an extended master bedroom, addition of a large rumpus room/fourth bedroom, and an office, and high quality decoration. On the farm, a new five bay implement shed; new cattle and sheep yards; and new laneways, fencing and culverts have also been added,” says Phil.

Recent neighbouring horticulture development at equivalent altitude highlights an easy opportunity to contour and plant approximately five hectares in kiwifruit or avocadoes. Additional sections of the farm could support similar land use.

An attractive, elevated and serviced 0.74 hectare bare land lifestyle lot has been established and is in the subdivision process, presenting as another revenue generation option.

Phil says a drystock farm of this size is rarely capable of economically supporting its owner.

“This farm proves that scale is not the only consideration: smart thinking and a progressive approach will also find a way.

“This farm’s strong emphasis on sustainability and diversification provides inspiration for the future of smaller family livestock units. It stands as a wonderful opportunity for a purchaser committed to the vision that the vendors have set in motion, achieving enhanced profitability via carbon neutral farming,” he says.

For sale by tender, offers are invited by 10 November, with registration required by anyone interested in attending an open day.