Fact Sheets and FAQ’s

HWP has published a series of Fact Sheets and Frequently Asked Questions (FAQs) to help our farmer shareholders plan their farm irrigation with HWP.

Scroll through the questions below or Download each individual Fact Sheet

Please note that in relation to the water right shares referred to anywhere in these Fact Sheets:

  • HWP is not currently seeking any money in relation to the intended offer of water rights shares;
  • you cannot currently apply for or acquire water rights shares under the intended offer; and
  • if the offer of water rights shares is made, the offer will be made in accordance with the Financial Markets Conduct Act 2013.  

What is my irrigable area and how many water right shares will I need?

Each share will provide enough water and Nitrogen allocation to irrigate one (1) hectare of land (4mm/ha/day). This equates to a flow of 0.46 l/s at the farm turn out. The irrigable area of your land is largely dependent on the type of irrigator you use and the layout and features of your farm, such as shelter belts, buildings, gullys and other land forms. Establish how you want to use irrigation, what the soil types are, and work out what part of your land is feasibly irrigable. This will give you a good guide as to how many shares you will need. Once a farmer converts to irrigation, they generally want to irrigate more rather than less. It’s important for you to consider future proofing your system to allow for growth and to maximise the opportunity.

What type of irrigation system is most suitable for my farm?

There are a variety of irrigation systems available, and many things to consider when selecting the ‘right’ irrigation system.

Factors may include the shape of your farm, contour, desired water efficiency, and expected land use or farm system.

Different irrigation systems have different advantages and disadvantages, and there may be trade-offs. For example, K-lines or guns may have a lower purchase cost, but will likely require more labour and could have higher operating costs, compared to other systems such as pivots and solid set.

Irrigation consultants are well placed to assist you to develop a system that best suits your farm and business needs.

Is anything likely to change in the future that should form part of my decision making now?

There are many considerations that will influence the area of irrigation farmers choose to implement. Having access to irrigation water provides options for future land uses, whereas non-irrigated land will be limited in the farming systems that can be sustainably operated. Environmental compliance, good management practice and nutrient limits/restrictions will become a significant part of farming, whether you irrigate or not. We will all be held accountable for the things we do on-farm and whilst this may be a challenge today, it will become a normal part of farming in the future. Having reliable access to water, matched with the right nutrient budget, will provide options for the future and improve your ability to cope with unforeseen challenges.

What other things do I need to do?

HWP will build and operate the infrastructure to deliver water to the farm turn-out (usually located close to the farm boundary). There are other components to factor in. These will depend on your existing farm set-up, proposed farming system, proposed irrigation method, and other physical constraints on your farm. Irrigation companies will be able to give you advice on what you need to consider when planning your new layout. Farm advisors and farm accountants are often good sources of information in this space, as are farmers that are already experienced in irrigation.

Once you have decided what system is right for you, you will want to develop a project plan to ensure you do all the right things at the right time. Irrigation companies often provide project management and project planning services to make sure you capture all of the tasks required, to ensure a smooth transition to irrigation.

Who will help me to implement what I need to get done?

Whilst most farmers will be quite capable of managing the various tasks in the lead-up to first water, there are businesses that specialise in managing the process. Irrigation companies and farm advisors are a good place to start.

Are there things I can work in with my neighbours for mutual benefit, for example boundary realignments

There is always room for innovation.

Sharing the capital cost with neighbours can improve the profitability of your investment. There are cases where neighbours have constructed a large pivot on a boundary and shared the appropriate costs – giving you a larger area irrigated at a smaller outlay. In some cases, land swap can also be advantageous. Have a chat with your neighbours once your plan is done, you could have more options than you think.

What regulatory benefits does being a part of the HWP scheme provide?

Rules and restrictions are already in place for dryland farms and will likely become more stringent in the  future.
• HWP holds a consented nutrient load* and consents to use land for irrigated farming.
• The company coordinates farm plan auditing and reporting to ECan.
Unless you can develop your farm within ECan’s ‘10 percent rule’ (Hurunui Waiau Rivers Regional Plan), if you wish to irrigate, you will have to apply for your own resource consent. By taking water from the HWP scheme, you benefit from the resource consents already held.

What is a Farm Environment Plan (FEP)?

Farm Environment Plans are effectively a farm planning tool with a focus on environmental outcomes. You may discover that you are already practicing many of the elements that

an FEP documents, but having it written down allows you to continuously improve.

Farm Environment Plans are mandatory. HWP will make standardised FEP templates available to shareholders. We will also undertake FEP auditing and compliance reporting for our shareholders.

Helpful information can be found on the ECan website: www.ecan.govt.nz/your-region/information-for-farmers/

What does an irrigated farm system look like?

Farm advisors with good knowledge of irrigated farming systems, will be able to assist you with defining advanced systems to maximise the benefit of irrigation. It is recommended that you seek professional advice, if only to provide you with a range of options to assist your planning.

Is there an opportunity to diversify my current business?

Consider whether there is an opportunity to let someone else do something different on a part of your farm that you will benefit from. We know we are good at producing food and fibre, but are there other types of food someone else could produce on your land? There may be other opportunities to lease some of your land to a specialist producer that doesn’t require significant additional input by you.

What’s the business case?

Your accountant, bank representative or farm advisor professional will be able to assist you with preparing a business plan for your transition to an irrigated system.

Are there other factors in play?

There are many factors that may influence farming business decisions including:

  • Succession planning (or exit strategy?)
  • Climate change and drought resilience
  • Increased nutrient restrictions
  • Opportunity for improved productivity and efficiency
  • Family and community desires

Investment in irrigation is a long term decision. Conversations with your family, business mentors and farm advisors are essential to ensure you maximise the opportunity provided by the HWP scheme.

Where’s the money coming from?

How to fund your investment in HWP and your on-farm assets is a big decision.

Starting the conversation early with your banking representative is important. New Zealand banks have been involved in many irrigation scheme developments, they have a great depth of knowledge in this area and will be able to assist you through the process.

Please note:

  • no money is currently being sought by HWP in relation to the intended offer of water rights shares;
  • water rights shares cannot currently be applied for or acquired under the offer intended to be made under the PDS; and
  • if the offer of water rights shares is made, the offer will be made in accordance with the Financial Markets Conduct Act 2013.

Do I need to upskill in any areas?

Irrigation New Zealand (www.irrigationnz.co.nz) is a good source of information for new irrigators and existing irrigators alike.

Other industry organisations such and Beef & Lamb and Dairy NZ also have tools and run training courses ranging from how to write a business case through to how to deal with succession planning.

How do I buy HWP Ordinary Shares?

Hurunui Water Project is not a listed company.

Our website now has a new share trading platform that enables buyers and sellers to find each other.

If you wish to purchase HWP Ordinary Shares or have HWP Ordinary Shares to sell, go to ‘All Listings’ at the top of any page, apply to open an Account and follow the prompts.

I already have HWP Ordinary Shares, why do I need to buy Water Right Shares?

The Ordinary Shares the company issued were to enable the company to reach an investment ready stage. It was always intended that Water Right Shares would be issued in addition to Ordinary Shares, when the time came.

Each Ordinary Share gives you the right to purchase one (1) Water Right Share. Water Right Shares will be ‘stapled’ to each Ordinary Share (they must be held together).

Please note:

  • no money is currently being sought by HWP in relation to the intended offer of water rights shares;
  • water rights shares cannot currently be applied for or acquired under the offer intended to be made under the PDS; and
  • if the offer of water rights shares is made, the offer will be made in accordance with the Financial Markets Conduct Act 2013.

When will Water Right Shares be available?

As of 1 November 2017, the company is targeting March/April 2018 to issue Water Right Shares. A Product Disclosure Statement (PDS, formally called a Prospectus) will be issued to all shareholders who hold Ordinary Shares.

Please note:

  • no money is currently being sought by HWP in relation to the intended offer of water rights shares;
  • water rights shares cannot currently be applied for or acquired under the offer intended to be made under the PDS; and
  • if the offer of water rights shares is made, the offer will be made in accordance with the Financial Markets Conduct Act 2013.