Irrigation expansion in North Otago has received a boost from the dry spell, although the declaration of a drought is not expected to bring a deluge of extra inquiries about buying in.
The farmer-owned North Otago Irrigation Company, which has operated since 2006, plans to start a $53.2 million expansion next month.
The plan is based on farmers' response to buying shares before Christmas.
The company, through a prospectus, offered 7969 shares at $4250 and at deadline on December 19, had commitments for about 4711.
Since then, there had been ''quite a bit of interest'' from other farmers in the shares, company chief executive Robyn Wells said yesterday.
''We are fielding quite a few inquiries. We also have applications out that we are waiting for a response to.''
Farmers had until today to buy shares at the $4250 post-prospectus price.
Detailed design of the scheme, followed by ordering pipes next month, would set the size and location of the expansion, based on the locations of farm properties to be irrigated, paid for from the new shares.
After that, subscribers wanting to connect would find shares in the scheme more expensive.
Mrs Wells did not believe yesterday's declaration of a drought along the east coast of the South Island by Minister of Primary Industries Nathan Guy, would result in a lot more applications.
''Most people now know how dry it can get here,'' she said.
