Landcorp Pays $25m in Dividends to Crown This Financial Year
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The Government will receive a $10 million special dividend from Landcorp Farming Limited today, State Owned Enterprises Minister Simeon Brown announced.
The payment brings Landcorp's total dividend contributions to the Crown to $25 million for the 2025/26 financial year.
"We expect our state-owned enterprises to operate efficiently, maintain strong balance sheets, and return value to New Zealanders," Mr Brown says.
The minister emphasised that dividend returns directly support government spending on essential services.
"Every dollar returned to the Crown is available to support the Government's investment in the public services New Zealanders rely on, including schools, hospitals, roads, and frontline services like Police. That is central to our plan to deliver better outcomes for Kiwis."
The special dividend stems from Landcorp receiving a $9.5 million capital repayment as a shareholder in Fonterra. The state-owned farming enterprise is passing this non-operating receipt through to the Government as a special dividend, which sits outside its ordinary dividend policy.
Brown highlighted the payment as evidence of Landcorp's improved financial performance following a significant turnaround in recent years.
"I'm pleased to see the continued improvement in Landcorp's performance, with recent half-year results pointing to a strong full-year outcome, supported by improved operations and favourable commodity prices," he said.
"This progress reflects disciplined management, a sharper operational focus, and a clear commitment to delivering value for taxpayers."
The minister said the dividend demonstrates confidence in Landcorp's financial position and its ability to deliver consistent returns to taxpayers.
Landcorp, which operates farms across New Zealand including properties in Southland, has undergone significant restructuring in recent years to improve its financial performance. The company's turnaround has been supported by better commodity prices and operational improvements.
The $10 million special dividend follows the capital payment from Fonterra and reflects what Brown describes as the strength of Landcorp's recent financial recovery.
Brown said the payment aligns with the Government's expectations for appropriate capital returns from state-owned enterprises, ensuring these businesses contribute meaningfully to public finances while maintaining strong operational foundations.