Tuesday, March 19, 2024

Farm sales quiet but resilient

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The rural real estate market remained resilient through the quiet June trading period, especially for drystock farms even though prices were lower overall.
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Despite a positive pricing outlook for most sectors, the Mycoplasma bovis virus is a worry in dairy and beef farming zones and early spring is likely to be a test for the Government and industry animal eradication programme, Real Estate Institute rural spokesman Brian Peacocke said. 

Sales turnover was lower for the three months to the end of June compared to the three months to the end of May, with 32 fewer sales. 

For the year there were 1480 sales, down 17% on the corresponding period a year earlier.

For all farms, the median price per hectare for the three months was $21,745, down from $25,993 for the corresponding time last year, a fall of 16.3%. 

Prices were down slightly more on the May 2018 comparison.

Dairy farm prices were lower year-on-year on both measures, by 8.4% on a median price basis and by a hefty 11.5% on the institute’s dairy farm price index. 

For the June three-month period the index was down 3.4% compared to May.

Finishing farm prices were also easier with the latest median price being $26,245/ha, down from $29,093 for the May period and $27,613 for the three months to June last year. That was a 5% year-on-year fall.

Regionally, Manawatu-Wanganui had a solid increase in sales, up by 21 over a year earlier, and Waikato, plus eight, and Hawke’s Bay, six, were also busier. 

An increase in dairy farm listings is expected in Waikato in the spring.

Canterbury and Northland each had 23 fewer sales though Northland was active across most sectors during June, except that M bovis is affecting some transactions.

There was increased demand for land suitable for horticulture, stimulated by Zespri releasing more licences for gold kiwifruit as well as ongoing demand for avocado and market-gardening properties.

Peacocke said sales activity in Canterbury was hampered by very few properties being on the market during the winter.

Otago had 12 fewer sales though there was consistent activity in grazing and finishing farms.

There was inquiry for dairy support blocks as farmers look for self-containment to guard against M bovis. 

That was also a trend in Taranaki, Wairarapa-Wellington and Southland. 

There were strong sales of grazing units for increasing interest in sheep and beef in Southland. 

Nationally, grazing units had a median price of $10,113/ha in the June period, compared with $10,687/ha in May and $10,093 for the June 2017 three-month period.

Central Otago had strong inquiry for cherry orchards but listings were few and the kiwifruit market continued to have exceptional interest though listings will remain low till after pruning and tying-down over the next two to three months.

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