Pay­out could boost farm sales

South Waikato News - - RURAL DELIVERY -

The Real Es­tate In­sti­tute is hop­ing Fon­terra’s in­creased dairy pay­out will lift the ru­ral prop­erty mar­ket out of a two-year trough.

Fon­terra an­nounced a pay­out of $6.70 a kilo­gram of milk­solids for last sea­son, a big rise on the pre­vi­ous year’s $5.21 and is fore­cast­ing be­tween $6.90 and $7.10 for this sea­son.

In­sti­tute spokesman Bryan Thom­son said the im­pact should be felt soon.

Lat­est sale fig­ures show the mar­ket re­mains re­pressed. Num­bers of farm sales are low al­though they are sell­ing for more money than in mid­win­ter.

The me­dian farm price for the three months to Septem­ber was $1.012 mil­lion, well up on the me­dian price of $877,500 for the same pe­riod last year.

How­ever only 164 farms changed hands, a 14.6 per cent drop on the 192 sold in the three months to Au­gust.

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