Orchard leasing is providing seasoned orchardists with a great asset management strategy, and industry newcomers with an easy entry.
Attractive returns, detailed budgets, yield-driven orchard management plans, and regular financial reporting, give you full control of your orchard investment.
Your budget specifies where and when all money will be spent. This not only includes managing your vines, but also looking after your orchard, including such items as shelter maintenance, weed spraying, a sustainable fertiliser programme, compliance and Psa requirements.
If costs are less than budget, only the actual amounts will be used when determining final returns.
Orchard leases typically develop into long-term business relationships. Not only do you receive a personal service by a dedicated manager, but as the largest kiwifruit service provider, Seeka has the critical mass to develop with the industry and ensure your product always has unrivalled access to international markets.
Further details about Seeka Leasing are listed below or alternatively email Seeka's Orchard Lease Client Manager Peter Wells.
Orchard Gate Return
— Seeka has developed an impressive record for achieving consistently high orchard gate returns – no hidden costs, only real payments made for each bin of submitted fruit.
A peer review system operating within Seeka’s orchard management team, and a focus on vine management and nutrition with input from Seeka’s research manager Murray Judd, has seen leased orchards consistently outperform production on grower-managed orchards across all growing zones in recent years.
High orchard production coupled with Seeka’s record for generating high orchard gate returns, means your fruit will generate maximum payments over the lifetime of your investment.
Seeka’s orchard leasing and management contracts are perfect for deriving income from established orchards, or for helping to develop bare farmland into one of New Zealand’s most productive export crops.
Lease Structure
— Seeka’s orchard lease agreements commit Seeka to fully fund and manage orchards to a sustainable management plan and reward owners:
- A rental is paid for the orchard based on productive hectares
- Profit sharing payment to an agreed schedule from crop revenue once all costs have been recovered.
- Seeka exercises full transparency and regular reporting in the budgeting and profit sharing process, and offers a choice between advance and arrears rental payments.
- Profit sharing commences after recovery from crop revenue of production and harvest costs, the initial lease payments, if applicable, and a funding cost margin.
- Our standard lease term is three years. This provides certainty for both you as lessors and Seeka as lessee, and contributes towards continuity of on-orchard planning and management.
- As our leases normally commence at the beginning of the growing season, orchard related expenses, which have been incurred from 1 June of that growing season, may be invoiced to Seeka for reimbursement, subject to verification and budget parameters.
Lease Profit Sharing
— Profit share to the orchard owner commences when orchard gate returns exceed the profit share threshold, being the sum total of:
- operating costs – the lesser of actuals or budgeted maximums
- actual harvest costs
- lease payments
- funding costs
Operating costs
Operating costs are actual costs incurred in operating the orchard, including the orchard management fee as defined in the orchard’s lease management plan. Recovery is at actual cost plus a 2% administration margin only.
Harvest costs
Harvest costs are deducted from orchard gate returns when determining the profit sharing threshold.
Profit sharing schedule
Rates are set following an evaluation of the leased orchard’s risk profile and production potential.
Owner’s revenue as a factor of Orchard Gate Returns
Seeka’s lease agreement minimises the owner’s exposure to risk from exceptionally low orchard gate returns, while distributing the bulk of the profit to the owner when orchard gate returns pass the profit sharing threshold.
