sign up log in
Want to go ad-free? Find out how, here.

Farm prices have generally been firmer but dairy farm prices are down compared to a year ago

Rural News
Farm prices have generally been firmer but dairy farm prices are down compared to a year ago

The number of farms being sold is well down compared to year ago while prices are holding up well, according to the latest rural property report from the Real Estate Institute of New Zealand.

It shows 443 farms were sold in three months to the end of May, down 13.8% compared to the same period of last year.

However the REINZ All Farm Price Index, which adjusts for differences in the size, type and location of farms sold, was up 5.8% compared to a year ago.

"The 2017/2018 farm sales season ended on a good note with sales figures reflecting a solid degree of confidence, albeit an easing in volumes from an annual perspective," REINZ rural spokesman Brian Peacocke said.

That confidence appeared to have been reflected in attendance and purchase figures at the recent National Fieldays at Mystery Creek, he said, reinforced by an improving dairy payout, strong markets for beef and lamb and continuing low interest rates.

However there was also one large dark cloud hanging over the rural sector.

"The optimism stemming from an extremely benevolent autumn has been dominated by the pervasive impact of mycoplasma bovis disease, which is having a dramatic financial and social impact on many in the rural sector," Peacocke said.

"Time will tell if the Ministry of Primary Industries in tandem with other animal health entities and the wider farming community are to be successful with the current plan to eradicate as opposed to managing this difficult to detect disease," he said.

This was also reflected in lower sales volumes and prices of dairy farms, with 74 dairy properties selling in the three months to May, down 17% on the same period of last year, while the REINZ Dairy Farm Price Index was down 8.2% compared to a year ago.

On the lifestyle front, 2129 lifestyle properties were sold in the three months to the end of May, down 7.6% compared to the same period of last year, while May's median lifestyle block price of  $675,000 was up 7.7% compared to May last year.


For data on rural sales per hectare, see this.

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
 

Lifestyle blocks sold - REINZ

Select chart tabs

NZ total
Source: REINZ
Northland
Source: REINZ
Auckland
Source: REINZ
Waikato
Source: REINZ
BOP
Source: REINZ
Gisborne
Source: REINZ
Hawke's Bay
Source: REINZ
Manawatu
Source: REINZ
Taranaki
Source: REINZ
Wellington
Source: REINZ
Nelson/Marlborough
Source: REINZ
West Coast
Source: REINZ
Canterbury/Westland
Source:
Otago
Source:
Southland
Source:
 

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.