Alarm over farm buy up

A proposed buy-up of Southland farms valued at more than $150 million, by a Maori trust bank-rolled by Dubai cash, has Federated Farmers and the Green Party urging caution. The Rural News reported an Auckland-based "hapu" trust and Dubai state-owned conglomerate Dubai World were negotiating a treaty to buy Southland farms and processing plants in return for a guaranteed 99-year food supply. Federated Farmers is warning farmers tempted by an offer to ensure due diligence before making any deals. "I am very concerned with reports of people entering into these agreements without taking deposits," Mr Rose said. One farmer he had spoken to said the buyers had missed two deadlines for deposits reports The Southland Times. "For farmers to protect their investments they should insist a 10 per cent deposit to be paid up front as a sign of good faith," he said. It went against commercial sense for big-ticket items like farms not to be sold on that basis, he said. Mr Rose said Federated Farmers was advising members considering a deal to contact its lawyers to discuss the deals. Non-members should get independent advice. It was alarming if reports that Dubai World, or one of its subsidiaries, was the trust's financial backer were true, he said. The federation warned that Dubai World was close to defaulting on a substantial part of its US$60 billion (NZ$82 billion) debt. On Monday another Emirates state, Abu Dhabi, bailed out Dubai World to the tune of US$10 billion to save it from immediate default.