Yesterday, the North Otago Irrigation Company announced enough farmers had put up money to buy shares for the stage 2 expansion - from Five Forks down to just north of Herbert - to go ahead.
More than 10,000ha is already being irrigated by the scheme, and a second stage of another 10,000ha was always planned when it was built in 2006.
Initially, the North Otago Irrigation Company (NOIC) aimed to sell about half the 7969 shares at $4200 a share to go ahead, but also had an offer from four North Otago farmers to underwrite up to $2 million if the company was close.
By the initial deadline for acceptance yesterday, the company had commitments for 2859 shares, but extended the offer another seven days at the request of some farmers who had found the time too short to meet all requirements to subscribe.
Company chief executive Robin Wells was confident the expected additional applications would meet the requirement and mean the $2 million underwriting would not be necessary.
The 2859 shares sold so far will irrigate about 3716 ha, depending on how farmers use it, but once all shares are sold it will cover about 10,300ha.
The first stage has added an extra $49 million to the North Otago economy and created 274 new jobs, according to an economic survey.
On-farm expansion has driven business growth.
Mr Kircher saw similar benefits from further expansion.
He had been ''reasonably confident'' the company would reach its target for stage two to go ahead, but acknowledged the rapid decline in milk payouts might have created some doubt.
''Some may say it was the worst time [to offer shares], because of commodity prices, but against that is farmers will have been very realistic in terms of the return on their investment.''
While dairy payouts had fallen, other commodities, such as beef, had risen.
The recent dry spell in North Otago had also brought home to farmers, the memory of past droughts, Mr Kircher said.
The council had promised extending a loan to the company for $17.5 million to build the second stage and Mr Kircher believed that loan could go ahead, subject to conditions being met.
The expansion will be funded by farmers, the council loan and a loan from ASB bank, which has been involved with the company from the start.
Ms Wells said other farmers wanted to apply for shares, but had not met the deadline yesterday because they had not had sufficient time to meet all conditions.
In light of the positive response and to not disadvantage anyone, the company has extended the deadline seven days to December 19.
''We have been absolutely delighted with the response. Over the last two days there has been a steady line of people bringing in their applications,'' she said.
Company chairman Leigh Hamilton appreciated the trust farmers had placed in the company by investing in shares.
An engineering and construction contract was expected to be signed early in the new year after confirming design pipes ordered soon after.
It was planned to have water available from September 1, 2016.
North Otago Irrigation Co
What: Stage 2 expansion to another 10,000ha
Cost: $53.2 million
Finance: Farmer shares, Waitaki District Council, ASB bank.
Stage 2 shares sold: 2859 totalling $12 million.
Total shares on offer: 7969 totalling $33.469 million.
What happens now
• Deadline extended for shares
• Detailed design starts
• Pipes ordered early next year.
• Build contract signed early next year.
• First water 2016 season
