Milk and beef prices offer confidence
Data released by the Real Estate Institute of NZ shows there were fewer farm sales around the country for the three months to July 2017.
In total, the market recorded 76 fewer farm sales, down 16.2 per cent, compared to the three months ended July 2016.
Overall, there were 392 farm sales in the three months ended July 2017, compared to 459 farm sales for the three months ended June 2017, a reduction of 14.6 per cent.
There were 468 farm sales for the three months ended July 2016.
A total of 1739 farms were sold in the year to July 2017, 1.5 pre cent fewer than were sold in the year to July 2016.
There were 44 per cent more finishing farms, 28 per cent more dairy farms and 21 per cent fewer grazing and 22 per cent fewer arable farms sold over the same period.
The median price per hectare for all farms sold in the three months to July 2017 was $27,158 compared to $26,492 recorded for three months ended July 2016, an increase of 2.5 per cent.
The median price per hectare increased 4.5 per cent compared to June.
The REINZ All Farm Price Index increased 5.6 per cent in the three months to July 2017 com- pared to the three months to June 2017.
Compared to July 2016, the REINZ All Farm Price Index increased 9 per cent. The REINZ All Farm Price Index adjusts for differences in farm size, location and farming type, unlike the median price per hectare, which does not adjust for these factors.
REINZ rural spokesman Brian Peacocke said the reduction in sales volumes for the three month period ending July 2017 reflects the dormant winter period.
He said farmers were focusing on the seasonal issues of lambing and calving, activities which dependent upon location and it will continue into August and September.
‘‘An air of confidence, or perhaps relief, is growing within the rural sector, stimulated by increase in milk payout and strong beef prices.’’
However that optimism has been tempered by recent poor weather generating difficult conditions for the wintering of cattle and calving of dairy cows.
‘‘Farmers were focusing on the seasonal issues of lambing and calving.’’