Payout could boost farm sales
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.