Landcorp says it is now only waiting for approval from its board before it puts in a bid for some of the Crafar family farms that are in receivership.
The state-owned enterprise has completed due diligence on 16 North Island farms.
Chief executive Chris Kelly says the company plans to place a credible bid, based on the current conditions of the farms.
Mr Kelly says Landcorp has some advantages over the other known big-bidder, the Hong-Kong headquartered firm Natural Dairy NZ Holdings, as it does not need Overseas Investment Office approval so could make an immediate settlement.
He says it has a proven ability to manage a large number of farms, given it owns 105 farms already.
Mr Kelley says the board has been supportive of the move so far but must give formal approval before a bid is made.