The rate at which farmers have been changing from sheep farming to dairying appears to be slowing reports the ODT. The prospect of improved sheep and beef returns and rising construction costs have led to planned dairy conversions being cancelled, although exact numbers are hard to confirm. Planned conversions in Canterbury and Southland have been cancelled, the result of building costs for dairy units having risen from $120,000 to $150,000 over the past year, making the price of existing dairy farms comparable with the cost of converting. PGGW Southland rural real estate manager Andrew Patterson said there were now 2-3 the number of dairy farms on the market than at the same time last year, with many vendors owners of several farms choosing to reduce their workload by selling one. Mr Patterson said prospects of improved returns for lamb, beef and venison, higher conversion costs and a lower milk price had made converting less viable.
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