High profile spring listings get attention
Spring is shaping up well, with good grass growth, excellent production and an increase in each of the last three Global Dairy Trade auctions generating some quiet optimism.
If nothing else, it is great to see more farmers smiling again.
My PGG Wrightson Real Estate colleagues around the country, backed by wider market statistics, suggest dairy farms have sold through the winter at between 10 and 15 per cent less than their peak 2014 values.
Data for August from the Real Estate Institute, however, shows that farm sales are gradually rising, which the recent upturn for dairy suggests will continue.
Statistics for the Institute’s All Farm Price Index, adjusted for differences in farm size, location and farming type, rose nationwide by 3.8 per cent in the three months to August 2016 compared to the corresponding period last year.
Locally, a number of highprofile spring listings will be closely watched by anyone with an interest in the rural property market.
These include well-presented adjoining Mangakino farms of 252 and 290 hectares that are attracting considerable interest from corporates with an eye to exploiting the possibilities associated with farming them as a single unit.
Likely to garner even more attention, a 343 hectare Kinloch property, with a further 205 hectares of leasehold, is scheduled to go to auction on 27 October.
Running 850 cows then dropping to a herd of 500 for winter milking, it produced over 500,000 kilograms of milksolids in 2015/16.
Converted to dairy in the past few years, we are expecting a good turnout and it will be fascinating to see how the auction, which will be held at the Taupo Yacht Club, proceeds.
So far, in the first two weeks of this particular marketing campaign, nine parties have registered interest in the farm, including corporates, local iwi and larger local farmers.
That corroborates what is happening elsewhere in the country as the market enters this more positive phase.
While local buyers have been in the ascendant in recent years, larger farmer entities and corporates are now becoming more influential, which looks likely to be the case with this Kinloch sale.
Cows are happy and so is the rural real estate market in South Waikato.