While foreign investment in rural land has made most of the headlines in recent weeks, it’s a buyer closer to home making moves on farm property.

Investment managers for the government’s $17.4 billion superannuation fund are planning a huge buy up of farmland around the world.

The fund’s ‘rural land strategy’ outlines a plan to invest more than $500 million in farm properties, both here and offshore.

The investment plan got off the ground with the purchase of a 250 hectare West Otago Dairy farm on Wednesday, which runs a  650 strong herd, for an undisclosed amount.

General manager of investments for the Super fund, Matt Whineray, says the planned purchases represent around 3 percent of the total fund, and fits with their current financial strategy perfectly.

"Over time, we will commit up to 3% of the funds, which is roughly $500 million, so we’re just embarking on that - this is the first purchase but in time we will look to have up to 3%."

Mr Whineray says the deal is about getting the best possible returns for Kiwis’ money from an industry with a great long term outlook.

"We think there are opportunities for long term investors and it’s not one that you want to jump in and out of all the time, but we believe for a long term investor like ourselves it represents a good opportunity to improve the whole fund performance."

The New Zealand deals will be handled by local company ‘FarmRight’, with the international management contract still up for grabs.

For further details on the superfund’s plans, head to their fund strategy document, here.