Thursday, March 28, 2024

Dairy farm values increase

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Dairy farm values across New Zealand have jumped in the past month according to data released by the REINZ.  The median sales price for the 69 dairy farms sold in the 3 months to November 2013 was $40,023 per hectare. This was a big jump from the price of $32,701/ha median price of the 37 farms sold in the 3 months to October 2013.  It was also 8% higher than the median price of dairy farms recorded in the corresponding period in 2012. The REINZ Dairy Farm Price Index rose by 4.2% in the three months to November compared to the three months to October, from 1,772.0 to 1,845.9. Compared to November 2012 the REINZ Dairy Farm Price Index rose by 2.6%. The REINZ Dairy Farm Price Index adjusts for differences in farm size and location compared to the median price per hectare, which does not adjust for these factors. “Prices across the board for dairy properties have firmed, with a clear emphasis on quality and location” Brian Peacocke,  REINZ Rural Spokesman “The conclusion of numerous marketing programmes during the past month has resulted in a significant lift in the volume of farm sales for the November period”, says REINZ Rural Spokesman Brian Peacocke, “Prices across the board for dairy properties have firmed, with a clear emphasis on quality and location. ”  “Demand for properties with mixed contour, a lower standard of improvements or less favourable locations is evident, but at reduced price levels.” ‘Spectacular’ prices have been paid for select properties in prime locations, particularly in the main dairying areas of Waikato, Taranaki, Canterbury and Southland. Areas such as Rotorua/Taupo, Northland and Otago are experiencing a strong increase in activity as those seeking a higher return on investment and first farm buyers focus on regions where lower prices prevail. Demand for land suitable for dairy conversion in the South Isl
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