Rain a challenge for all
After some areas around Auckland and Rodney received more than double their normal September rainfall, conditions are wet to say the least.
Within the PGG Wrightson Real Estate team, we are hearing from vendors who definitely want to sell farmland this spring and others likely to do so before or after Christmas. However, because of the last few weeks of rain, those plans are on hold. Once the ground dries out, vendors will complete final clean-ups and be ready to present farms in the best possible shape. Those properties, which are generally 20 to 50 hectare grazing blocks, should then come to the market.
For local farmers, the rain has been typically warm so pasture growth is strong. Unfortunately, pasture utilisation has decreased significantly and average covers are lifting. Ironically, while farmers are still feeding out silage and hay during this wet spell, as the ground dries out, they will probably end up making plenty of pasture silage to control the surplus they have created. Ensuring animals are fully fed at all times is the priority.
Increased positivity around dairy has drawn out enquiry from buyers this year and we expect to see more genuine dairy farms coming onto the market in the next few months.
One recent sale of a Tapora dairy farm continues an emerging trend. Purchasers of this 126 hectare property that changed hands in midSeptember intend to convert it for horticultural use. This is the third Tapora farm sold recently to buyers with similar plans, with more than one potential purchaser interested on each occasion. Tapora’s suitability for avocados and proximity to Auckland are driving steady demand for these properties.
Beef and larger grazing blocks are still in high demand, with listings attracting substantial viewings and selling quickly. Plenty of enquiry is still coming from Auckland’s fringes, as investors free up large amounts of equity, enabling buyers to come north.
Let’s hope this wet spring doesn’t lead into the dry summer many are predicting.
Scott Tapp sells rural property for PGG Wrightson Real Estate, focusing on farms in the greater Rodney and Kaipara regions.