Dairy farm sale prices stay high in Waikato

Waikato dairy farms are fetching prices despite a falling payout.

The Real Estate Institute of New Zealand quarterly rural market report shows that while the number of dairy farm sales remained similar to this time last year, the price per hectare jumped just over $14,000.

The report said there were ‘‘very strong prices for dairy farms in the Waikato with record prices being paid for select Tatuasupply properties’’.

‘‘Quality dairy support properties and cropping blocks are in strong demand with very high prices being paid.’’

Of the 47 farms sold in the quarter to October, 12 were dairy farms, and 25 were grazing, and four were finishing blocks. The

record median size for dairy farms was 84 hectares for dairy farms, 31ha for finishing and 35ha for grazing. Three more farms were sold in the year to October than in 2013.

The price for finishing blocks per hectare was up more than $8000 to $33,024, but grazing blocks fell in price for the Waikato by $2000 to $23,457 per hectare.

Nationally farm sales reached 346 in the three months to October, down three on the same period last year.

The median price per hectare for dairy farms nationally was $43,299 for the three months to October 2013, and the median size sold was 97ha. Median production per hectare across all dairy farms sold in October 2014 was 1062kgs of milksolids.