Total farm sales in New Zealand reached their second lowest monthly level in September since January 2003. Total sales fell for the fifth consecutive month in September, to 130 from 146 in August and down from 264 in April, figures from the Real Estate Institute of New Zealand (REINZ) show.

Interest .co.nz keeps monthly farm sales figures. The record low dating back to January 2003 is 126 farm sales in the month of September 2006.

Dairy farm sales in September dropped to 13 from 19 in August.

"Dairy farmers are versatile and adaptable," REINZ rural spokesman Peter McDonald said. "In the same way as they weather climatic challenges such as droughts and floods, they adapt to financial ups and downs. Despite the lower milk solids payout announced by Fonterra, there is still confidence in the sector and it needs to be remembered the reduced payout announced is still considerably higher than it was a couple of years ago."

The September 2008 sales figure of 130 is 15% lower than the average for the month of September over the last four years. On average, farm sales figures in September are the lowest in the year.

McDonald said Fonterra's announced reduced payouts appeared to have had little immediate impact on last month's (August's) record dairy farm prices.

The national median farm price for the three months to September fell to NZ$1,672,500 from NZ$1,742,500 in the three months to August.

In both Taranaki and Manawatu/Wanganui, the median farm sale price for the three months to September fell 24% from the three months to August.

In other regions, the low volumes of sales made judgments based on median prices less justifiable. Farm sales on the West Coast of the South Island dropped to zero in the month of September from eight in August.

"One of the highlights in the three months to September was the sale of a high country merino farm in the South Island which fetched an impressive NZ$23.5 million," the REINZ said.

"It just goes to show there are people in the market still interested in farm properties if they find what they are looking for," McDonald said.

Interest.co.nz figures show that the merino farm sale was in July.

Arable farms were the only type of farms to experience an increase in sales figures from August, up to nine in September from four.