Lying on the edge of the former Hikurangi Swamp, about 15 minutes from the city, gives it the balance of fertile flats as well as 30ha of hill country that is used mostly for calves and dry cows.
Its top production to date is 80,000kg milksolids (MS), or just over 860kg MS/ha, yet its rateable valuation is $2.12 million.
Add four titles into the package, good infrastructure, a 1989 five-bedroom homestead and a worker’s cottage, and Nicky Reid from Farmlands Real Estate says it becomes a great opportunity for a first-farm buyer to walk in and carry on milking.
“And at a level that you won’t get in many different areas of the country. In the Waikato you would only get a lifestyle block for that.”
Reid says the figures speak for themselves. The Real Estate Institute of New Zealand recorded 24 dairy farm sales in Northland during the 2014-2015 season and 10 of those sold for less than $2 million, averaging $15,000 a hectare. The average milk production of those 10 farms was 61,000kg MS and the highest 115,000kg MS.
“That’s a great return on investment. This is a massive opportunity for our next generation of farmers who have been priced out of the market in higher-value areas.
“And Northland offers a great lifestyle – the coast is never far away and the snapper fishing is good. Then there is the diving, hunting and duckshooting.”
The farm has some of the most fertile soils in Northland and pastures that have been renovated, including 6ha now in chicory, red clover and a Hunter annual ryegrass which has lasted two years.
Reid describes it as an “almost grass-only” system, with no bought-in supplements most years, but 12 tonnes of palm kernel on hand this year in case it’s needed. Silage is made on the farm each year and last year 250 bales were made. Most of the local dairy farms grow maize and produce “massive” crops, so Reid says it’s something that could be added into the system because its already producing 870kg MS/ha under a conservative grass-only system.
“We have a longer maize season and therefore some of the best maize crops grown in NZ. And the grass grows right through the winter here. It’s not often the soil temperature drops low enough to stop it.”
Calves stay on the farm until May and are then grazed off until they return to the farm as R2s in May. The vendor usually calves 210 cows from July 10 and is milking 184 this autumn.
The furthest walk for the herd is just 25 to 30 minutes to the 20-aside dairy and milking takes about 75 minutes, making the farm easily run by one person. Compliant storage is in place for effluent and once a year a contractor completely empties the ponds. The vendor also owns a half-share in an effluent cart with a neighbour, which can be used when needed.
Races throughout the farm are in good condition and metalled with brown rock from a quarry 4km up the road. Limestone is also available locally, while lime for fertiliser is just 8km away.
The races connect 54 paddocks on the flat land that makes up the milking platform which has had a new water system installed to troughs. Water is pumped from the Wairua River, with a UV water treatment plant for the dairy, while stock water heads through 32mm main lines and then 25mm lines to the troughs.
The homestead has panoramic views over the farm and across the Hikurangi Plains, while the cottage built in 2003 is a one-bedroom dwelling with an internal-access garage that could be converted to a second bedroom. Other buildings on the farm include a good round barn for calf rearing, and a larger fertiliser storage and implement shed.
Stock and machinery are available at valuation and the farm has 82,130 Fonterra shares. The farm will be auctioned on April 14. It can be viewed at www.farmlandsrealestate.co.nz ID DG1004. For further information contact Reid on 021 103 6277.
