Farm sellers get realistic, helping more farms to change hands

A lot of the sales have been forced or pressured sales by banks and the banks have the final say on what offer is accepted in most cases. In the Tararua region there has been sales of $182-$250 su and others pending to go into forestry all up 30,000 su lost to trees. 45% of 2008 gv One school has 5 pupils and another school 3. Lamb kill same as 1961 this year with Ovation closing in Waipukurau.Ironic in a year of high returns for meat and wool.

You have the wrong stick anon, I was simply stating that a lot of the sales are bank induced, I wasn't talking about entitlement of farmers just merely stating how the sales figures are being manipulated to say that  or give the impression that there is confidence in the rural market. Banks have new regulations to abide by from the Reserve Bank. I was simply reflecting on how rural NZ is shrinking and changing and that is reflecting in the declining sheep numbers and potential export earnings for the country, let alone the human cost.

In my view anon, the realisation is that now cap gain is no longer there and not an entitlement anymore. Although its a bitter pil to swallow for some. Very few bank sales out there, the only one i am aware of sold at market price anyway. More a case of farmers just being willing to meet the market now that they understand where it is.

It looks like the market is finding some sort of level, given that there have been such low sales volumes recently its been no more than guesswork as to where the market was actually at .Those predicting the doomsday senario have once again been proven overly pessimistic.

Sentiment down south here is as high as I can recall with increaseing evidence that the lift in prices looks set to be continueing through next season and quite probably beyond. Im not suggesting this will result in significant captital gains but I do think it puts the market on a fully firm footing.

.......was the idea that the market is always right and that the “invisible hand” of market forces will allocate recourses through price signals. I have always been comfortable with this image of capitalism and the free market. However, as I have progressed through life have discovered that it does not apply in all situations, sometimes the government must intervene to avoid the possibility of a market “correction” that may reduce the stability of institutions that our government has chosen to value highly (i.e. the Banks). There are many examples of this and they are becoming more and more common as the government attempts to stabilize an increasingly unstable economic environment.

Examples of this include Landcorp purchasing farms in order to underpin the rural property price;

“Plenty of interest seen as Landcorp buys land” (Wanganui Chronicle, 16^th May 2011)

http://www.wanganuichronicle.co.nz/rural/news/plenty-of-interest-seen-as-landcorp-buys-land/3952003/ 

Or taking over failing farming enterprises (owned by Meat and Wool NZ chairman Mike Petersen) )))))_   ;

“Landcorp grabs Horizon jobs” (NZ Farmers Weekly, 25^th October 2010)

http://www.farmersweekly.co.nz/article/8066.html 

The government also underpins horticultural land in Hawkes Bay. This can be seen by its purchase of Scales Corp., which owns Mr. Apple. This sale was completed with investment from ACC and the NZ Superannuation Fund;

“SCF’s Scales stake sold off” (stuff.co.nz, 3^rd  May 2011).

http://www.stuff.co.nz/business/money/4956412/SCFs-Scales-stake-sold-off 

The government also underpins the housing market by offering home loans to people that would otherwise be unable to obtain such finance. This is via the “Welcome home loans” scheme, where you don't need a deposit for loans of $200,000 or less.

Carbon emissions is another example of the government manipulating market forces to ensure an acceptable outcome for those whom create this negative externality. Farmers are the largest producers of greenhouse gasses in this country. A tax has been imposed on all other areas of the economy that produce greenhouse gases in order to mitigate the effects. However, as the effect of making farmers accountable for their emissions would impact negatively on their economic situation, the government has decided to “postpone” their inclusion into the emission trading scheme, effectively subsidizing them, while the rest of the economy pays.

The government plays the entire spectrum; from managed economy to laissez faire, at its whim.  Providing government guarantees to banks and finance companies that it considers too large to fail (such as South Canterbury Finance) under the guise of a socialist left. While also allowing the invisible hand pummel the savings of pensioners and retirees, as Brigecorp, Hanover, Bluechip and the like fail, in true libertarian style. The government picks and chooses who is bailed out, and who is left to sink, with the tax payer picking up the tab. 

And farmers wonder why they are becoming more isolated in our society...

Federated Farmers National Vice President vandalising DoC Car Park 

http://tramper.co.nz/?6961 

Malarky, Im interested in your reasons for being pessimistic? This is not about "happy thoughts" its the actual reality of whats dropping into bank accounts and the probability of  another pending good year  at the very least. Recent reports from the likes of Oxfam and the UN back up trends often highlighted by the likes of Fonterra, Beef and Lamb NZ, MAF etc when predicting a positive macro enviroment for our farm products. Of course you know better.....