Time to invest beyond the farm gate?

For farmers focused on day-to-day operations, receiving a capital payout or strong profits can be a valuable opportunity to strengthen financial security.

While reinvesting in the farm or reducing debt may seem like the obvious path, it’s worth taking a moment to consider other options on the table.

Off-farm investments can offer a valuable way to diversify income, reduce exposure to agricultural risks, and build long-term financial resilience.  

The case for off-farm investing

Diversify assets, income and risk 

Investing a portion of funds off-farm can help to diversify both opportunity and risk.

Investment options like listed equities, bonds, and alternative assets provide exposure to other sectors and importantly, other geographies that are not affected by New Zealand economy, interest rates, legislation and weather.

A Craigs investment adviser can provide tailored investment advice and guidance regarding types of investments that are best suited to your specific needs, objectives and risk appetites.

Protect against inflation 

One of the most compelling reasons to invest is to protect money against inflation. Investing off-farm can help your capital keep pace with rising costs, preserving your ability to spend and invest in the future. 

Liquidity and flexibility 

Shares and funds are generally easier to sell than farm assets, offering faster access to cash during uncertain times or seasonal income gaps. 

Low entry cost, easy entry  

You can start small with off-farm investments, gradually building wealth without disrupting farm finances.

Low maintenance 

Off-farm investments don’t require feeding, fertilising or frequent maintenance. Once a portfolio is set up it can grow quietly in the background, with your Craigs adviser providing tailored advice and guidance to support your needs and objectives as well as regular reporting. This means you can focus on what matters most – your farm and your family.  

Build a base for retirement income 

Off-farm investments can create a reliable income stream to support your life after farming, and provide greater financial independence in retirement, allowing the next generation to take over the farm with less financial pressure. 

Help facilitate succession planning 

Support succession planning by creating financial flexibility. Investments off the farm can be used to provide for children or relatives who aren’t part of the farming business, helping to ensure fairness and avoid conflict during inheritance asset division.  

Future-proof your farm  

The most important step in any financial journey is deciding to start. As the saying goes, “Those who fail to plan, plan to fail”. 

Whether you’re thinking about retirement, succession, or simply building financial resilience, now is the time to talk about your goals and objectives. These conversations can be challenging but they’re essential. And you don’t have to do it alone. 

Our investment advisers play an important part of your off-farm support team, ready to help with investment decisions and tailored advice, or to help connect you with the right people in our network of financial professionals. 

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