A farm is not a widget-factory where the switch can simply be switched off and then on again at some later date. A well-managed farm is a living, ‘organic’ business that cannot remain idle for too long. The creditors and Receiver have continuously expressed the desire for Mngeta Farm to be disposed of as a “going-concern”; however, this could only have occurred had it transitioned to new ownership and management within a 6-month period from the end of 2019. The ongoing delay for a final decision has accompanied ever-decreasing asset valuations over 24 months of inactivity.

Two inherent technical issues of poor surface drainage and strongly acidic soils severely constrained crop productivity throughout the decade-long period of farm operations up to the end of 2019. Both constraints are easily rectified, but to do so requires a substantial capital investment of $5 million. Further, significant opportunity costs are needed due to crop revenues foregone on areas being ameliorated over the first 2-3 years of the planned farm turnaround process. Failure to grasp this important issue has further contributed to the delays in a final decision on the farm disposal.