NY to NZ – our gain

August 24, 2014

Federated Farmers vice president Anders Crofoot  reacts to emotive opposition to foreign investment:

When it comes to the foreign ownership of farmland my family has a unique perspective. 

Before my wife and I moved our family thousands of miles from upstate New York to the Wairarapa, we did research.  A great deal of it.  We’d narrowed our choices to English speaking Canada, Australia and of course, New Zealand.  Adding a new language, when you are moving thousands of kilometres, adds too much complexity.  Since moving downunder, we’ve learned that being a “good b..tard” is a complement. Maybe Winston Churchill was right when he said “Britain and America are two nations divided by a common language”. 

While Emily was the farmer, I was an investment analyst.  Together, we learned more about the country, its political stability, history, economy, agricultural system, climate and the rural property market.  Of course, being ‘foreign investors’, we checked out whether we’d be welcomed or not. 

We quickly dropped Canada from consideration for being even colder than New York.  We also wanted to break out of the closeted subsidy culture prevalent in North America. While Australia offered space aplenty, dealing with years of drought followed by floods was a challenge too far.  Our preference was for New Zealand’s more benign climate.

To farmers overseas, New Zealand is the mecca of farming.  Nowhere else had an organisation like Federated Farmers worked with a left-wing government to end subsidies.  Farmers there, we learned, were judged on their abilities as farmers and not the size of their subsidy cheque. New Zealand was at the forefront of pastoral research and practice too.  It also had plenty of migrant farmers who had integrated and excelled. New Zealand felt right.

Being in Federated Farmers a few years later, I came across one farmer who made Winston Peters look like a weak-kneed liberal.  Proving the debate is seemingly two-thirds heart and one-third brain, I later learned that he’d bought a farm in Australia but he still opposed foreign investment, albeit, slightly sheepishly. 

Sadly this hypocrisy isn’t unusual.

Deciding on a country is one thing, but it’s quite another to get the ideal farm. We were very fortunate to convince Castlepoint’s Board that New York Yankees were fit custodians for their iconic Wairarapa station.  That was 1998 and we’ve never looked back. 

Kiwis are the most hospitable people with an unerring knack of convincing you to take on more responsibilities. I was one of two non-New Zealand born farmers on the Federated Farmers National Board.  I’m also on the Board of Grow Wellington and to keep my feet firmly on the ground, I’m also Castlepoint’s Fire Chief.  Emily is similarly involved and our children are now working in New Zealand.

The Crofoots have and continue to contribute a lot to their local community, farming and the country.

Their decision to move from new York to New Zealand has been our gain.

Politicians are quick to say that families like us are their ‘ideal’ business migrants.  The message is that ‘people like us’ will continue to be welcomed, whichever party wins on 20 September. 

Unfortunately, that nuance is lost if you’re thousands of miles away reading herald.co.nz or watching news on-demand.  The streaming of talkback radio means Albany, New York can listen to ZB just as easily as someone in Albany, Auckland. 

If we were researching New Zealand, today, would we make the biggest of big moves?  Possibly not. 

The tone around foreign investment has hardened for the worse.  To outsiders, politics and cultish popularity now seem big determinants.  There’s also a nasty undercurrent which reflects poorly on us as Kiwis.  Who this is putting off we’ll never know, but it is off-putting.

That might be what those opposed to foreign investment want but it’s not necessarily in the best interests of New Zealand.

Farming is the most international industry we have.  It’s this mix of people that makes New Zealand agriculture unique and the success it is.  The Green Party opposed Shania Twain’s High Country purchase but look at what British record producer Robert “Mutt” Lange has given back; 53,000 hectares and a whole landscape permanently protected. The restoration and enhancement of Young Nicks Head would never have taken place had a Kiwi farmer purchased it rather than New York financier, John Griffin.  We’re even near neighbours of James Cameron, that’s in a rural sense because we’re over an hour away by car. 

Politics must come out of the ‘foreign investment’ debate because it can so easily spiral into the gutter.  Rules are important and we Kiwis accept that with sport, why not overseas investment? 

We have rules on foreign investment and those rules have been toughened since National has been leading the government.

It hasn’t been easy for foreigners to buy farms here for a long time and it’s harder now.

If the rules still aren’t tough enough it is fair enough to look at the m again.

But that look must be a rational one, mindful of both the costs and benefits of foreign investment, our obligations to trading partners and the benefits New Zealand and New Zealanders get from investing in other countries.

 

I know another couple from the USA who have made a big investment in New Zealand in hospitality and tourism. They are an asset to the community in which they’ve settled, the wider hospitality and tourism industry and the country.

I wonder how many others like that might write New Zealand off their list of countries to visit and possibly invest and settle in because of political opportunism?


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