Dairy farm sales plum­met af­ter drought

Matamata Chronicle - - News -

Drought dried up buyer ap­petite for Waikato dairy farms last month, with just three sales com­pared to 13 in Jan­uary and 14 in De­cem­ber.

But REINZ ru­ral mar­ket spokesman Brian Pea­cocke said the sit­u­a­tion was not echoed in graz­ing prop­erty sales, of which there were 10 last month, com- pared to five in Jan­uary and nine in De­cem­ber.

Fin­ish­ing prop­er­ties also bucked the drought, with two sales in Fe­bru­ary, five in Jan­uary and two in De­cem­ber.

De­mand for well lo­cated and con­toured dairy farms with good lev­els of im­prove­ment out­stripped sup­ply, Pea­cocke said.

He ex­pected the drought to take the shine off the tra­di­tional Jan­uary to early April surge in dairy farm sales.

Farm own­ers some­times did not put their prop­er­ties on the mar­ket if they were not look­ing their best, he said.

Seven in­creases

re­gions recorded in farm sales for the three months ended Fe­bru­ary com­pared to the same pe­riod last year.

Auck­land had the largest in­crease, with 17 more sales, Nel­son had 16 and Waikato 11 more sales.

Seven re­gions posted de­creased sales with Can­ter­bury head­ing the list with 16 fewer sales.

The me­dian price per hectare for all farms sold in the three months to the end of Fe­bru­ary was $21,951, 1.4 per cent up on the same pe­riod the pre­vi­ous year.

The na­tional me­dian for life­style blocks rose from $465,000 to $495,000 and the me­dian sales price per hectare for dairy farms was $33,254.

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