Record dairy farms on market but few buyers
Sales of farms have stalled in the last year amid signs of ‘‘record’’ numbers of properties coming on to the market, the Real Estate Institute (REINZ) says.
Over the year to the end of October, sales of all farm types were 1649, 6.3 per cent fewer than a year ago, with tough weather conditions in winter and spring playing a big part in the fall-off.
Institute spokesman Brian Peacocke said there were several reasons why dairy farmers in Waikato and Southland in particular were putting their properties on the market.
‘‘The drivers for such a movement appear to be a mix of the following: succession planning/increasing age of farmers, frustration for some resulting from the climatic conditions and difficulties with labour, the inexorable increase in compliance issues and the awareness it is probably better to sell when the dairy payout is at a reasonably healthy level as opposed to when the payout is under pressure.’’
Compared with October last year the REINZ all farm price index rose 7.3 per cent.
Even though many dairy farms were being put up for sale, only five sold in October throughout the country. Three of those were in Southland ‘‘at lower to modest levels’’ but none in Taranaki, Manawatu and Canterbury.
The median sales price per hectare for dairy farms was $40,012, for finishing farms $29,057, and for grazing farms $11,822.
Recent million dollar per hectare sales of kiwifruit orchards was reflected in the median price per hectare for horticulture properties rising 92.1 per cent over the past year. Sales of arable farms were up in October, with one Methven property fetching $58,000/ha. Finishing properties accounted for the most sales with a 33 per cent share of all sales over the three months to October, while grazing properties accounted for 27 per cent horticulture 15 per cent and dairy 8 per cent.