Nikaweratiya Farm is relatively large consisting of 765 ha. It is located in an intermediate area between the wet and dry zones, and the farm is 2km from Nikaweratiya town on Kurunegala-Puttalam road. The farm commenced operations in 1983 with the intention of producing draught cattle. Khillari and Kangayans were introduced at that time, while the Hariyanas were introduced much later in 1970 all from India. Jersey Hariyana cross breeding commenced in 1973 by Artificial Insemination using Jersey seman from the Kundasale A.I. Centre. All Kangayans, Khillari, Hariyana and Cross Bred were subsequently sold and pure bred Sahiwal cattle and Nilli Ravi buffaloes were introduced to this farm in 1991, and in 1992 the farm was handed over to the NLDB. Currently this farm maintains Pure Nilli, Ravi herd of buffaloes and a Sahiwal herd of cattle, the original stock of which was imported from Pakistan.
The rainfall is varying from 1100mm with 60-80 rainy days for the year. The soil commonly available in the high land of farm is of Reddish Brown Earth type. Soil Organic matter level in rich and the farms soil is fertile. Most of the area is suitable for crop cultivation. The soil pH is 5.5-6.