Win­ter hia­tus good time to pre­pare for spring sale

South Waikato News - - Your Health - PAUL O’SUL­LI­VAN

As farm­ers are pre­oc­cu­pied with lamb­ing and calv­ing, win­ter is gen­er­ally a quiet pe­riod for ru­ral prop­erty trans­ac­tions.

How­ever, for those think­ing about list­ing to sell a farm in the spring, it pays to look ahead.

Good prepa­ra­tion is nec­es­sary to op­ti­mise value.

A prop­erty’s phys­i­cal pre­sen­ta­tion makes a big dif­fer­ence.

This in­cludes main­te­nance of fenc­ing, farm tracks, dairy shed and plant (or wool­shed and yard), irrigation sys­tems, gen­eral out­build­ings, wa­ter sup­ply and other in­fra­struc­ture.

En­sur­ing that the pa­per­work is in or­der is equally im­por­tant.

Once the ‘x’ fac­tor and po­ten­tial cap­i­tal gains were what sold a farm.

These days, sales are in­vari­ably based on the busi­ness case.

Strong farm ac­counts, pro­duc­tiv­ity his­tory, fer­tiliser records, con­sents and prop­erty ti­tles all need to be in place and ready for a pur­chaser to un­der­take due dili­gence.

My PGG Wright­son Real Es­tate col­leagues and I are work­ing with a num­ber of lo­cal farm­ers pre­par­ing to list in the spring, and ex­pect some ex­cel­lent farms to come to the mar­ket.

These in­clude one of the Taupo dis­trict’s top per­form­ers, a 150 hectare 400 cow prop­erty with ex­cel­lent pro­duc­tion; along with a prop­erty close to a ma­jor farm­ing cen­tre, fea­tur­ing new fa­cil­i­ties and car­ry­ing a herd of over 800.

Pur­chasers tak­ing an in­ter­est in­clude in­vest­ment funds and lo­cally based farm­ers seek­ing to ex­pand their hold­ings.

Re­cently pub­lished Real Es­tate In­sti­tute sta­tis­tics sug­gest that con­fi­dence among dairy farm­ers is stead­ier than some would have us be­lieve.

Al­though fewer farms sold than in May last year, val­ues have only dropped by a min­i­mal amount.

Al­though farm­ers are some­what timid in bring­ing prop­erty to the mar­ket, sales are still hap­pen­ing at all lev­els across the coun­try at re­spectable (al­beit un­spec­tac­u­lar) val­ues.

This week, with Fiel­d­ays and Gypsy Day be­hind us, the dis­trict’s new farm­ers, in­clud­ing newly ar­rived sharemilk­ers, are in­vited to a wel­come din­ner, some­thing Fed­er­ated Farm­ers has put on in the South Waikato since the mid1950s – a great op­por­tu­nity to make new ac­quain­tances and be­come part of the lo­cal farm­ing fra­ter­nity.

It should be a good evening.

Paul O’sul­li­van is Bay of Plenty and Cen­tral Plateau Real Es­tate Man­ager for PGG Wright­son Real Es­tate Ltd. Since he be­gan his ca­reer in real es­tate in 1978, he has ne­go­ti­ated sales in ex­cess of $850 mil­lion worth of prop­er­ties, in­clud­ing dairy, sheep and cat­tle, forestry, water­front and agri-sci­ence projects.

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