Hawke’s Bay farmer at risk of losing business as he struggles to repay a $700,000 debt

Tuesday, 31 March 2026

A Hawke’s Bay farmer is at risk of losing his business as he struggles to repay more than $700,000 in persistent debt.

The Māori Land Court has now granted an application by Mare Reiharangi Kupa Jnr to change the status of four rural sections from Māori freehold land to General land, so they can finally be sold.

The ruling, released by Judge D H Stone on March 20, stated that selling these sections would likely save the farming business and avoid foreclosure.

The court heard that various farm loans were due for repayment in 2026, and there was no certainty that the business would secure new funding.

While Kupa had partitioned the land in 2021 with the intent to sell, a previous application to change the land status was declined because no attempt had been made to sell the sections as Māori freehold land first.

Kupa told the court that the sections were marketed for sale from October 29, 2025. Although there were inquiries within the first 10 days, no firm offers were made and interest ceased.

Potential buyers reportedly provided feedback that they had no interest in purchasing Māori freehold land.

The court heard that Kupa’s bank, ANZ, also advised him it was not interested in using his Māori freehold land as security for finance to acquire a new property for his whānau.

Judge Stone found that the sections would be utilised more effectively as General land because changing the status appeared to be the only way they could be sold. The judge noted this was not a case of seeking a higher price, as the evidence showed the sections had not sold at all under their previous status.

The sale of the four sections, located at Pt Omahu 2C1C, is expected to fetch about $300,000 each. The ruling stated that “a primary reason for changing the status of these sections is so that they can be sold and the proceeds applied to the repayment of farm debt”.

“It goes without saying that the court expects any proceeds to be applied for that purpose,” the decision said.

Judge Stone said that since the sale was expected to provide a surplus after clearing the debt, the court would not likely entertain any further status changes for Kupa’s remaining Māori freehold land for debt repayment purposes.

CLARIFICATION: This article has been updated to clarify that it was the expectation of the court, not a requirement, that moneys acquired from the sale of the land would be applied to the debt.