High pro­file spring list­ings get at­ten­tion

South Waikato News - - Community Cookbook - PAUL O'SUL­LI­VAN

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.

KELLY HODEL / FAIR­FAX NZ

Cows are happy and so is the ru­ral real es­tate mar­ket in South Waikato.

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