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A resurgent dairy sector is leading the charge in the rural property market

Property
A resurgent dairy sector is leading the charge in the rural property market

The rural property market remains buoyant for the time of year with total farm sales over the three months to the end of July up 7.8% compared to the same period of last year, according to the Real Estate Institute of NZ's latest rural sales data.

It shows 359 farms were sold throughout the country over the three months to July this year July, compared to 333 in the three months to July last year.

The REINZ All Farm Price Index, which adjusts for differences in the mix of farms sold by type, size and location, was up 17% in the three months to the end of July this year compared to the same period of last year.

In the 12 months to the end of July this year 1720 farms were sold throughout the country, up 42.5% compared to the previous 12 months.

The number of sales increased for most types of farms, led by dairy farm sales which were up 147% over the 12 months to July this year compared to the previous 12 months, followed by finishing farms +58%, grazing farms +28% and dairy support units +18%.

The only of farm type to record a decline in sales were arable farms which were down 38% compared to the previous 12 months.

Dairy farm prices are also stronger, with the REINZ Dairy Farm Price Index up 17% over the three months to July this year compared to the same period a year earlier.

"Calving in the national dairy herd is well advanced, as is the case for lambing in the national flock, apart from the southern high country, so to date, flooding has been more of an issue rather than heavy dumps of snow," REINZ rural spokesman Brian Peacocke said.

"On the livestock front, reasonable feed reserves have resulted in extraordinarily high prices being paid for last season's lambs to be finished for the late winter/early spring market.

"The beef schedule is moving upwards on an incremental basis with a promise of more to come and the dairy industry pensively observes the recent pattern of volatility in the global dairy trade auction system with questions regarding the impact on the payout for the current season," he said.

There is more detail here.

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Farm sales

Select chart tabs

New Zealand
Source: REINZ
Arable
Source: REINZ
Dairy
Source: REINZ
Finishing
Source: REINZ
Forestry
Source: REINZ
Grazing
Source: REINZ
Horticulture
Source: REINZ

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