Tuesday, March 19, 2024

Slow start to spring for farm sales

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Busy on-farm activity and the covid-19 lockdown are being blamed for sluggish farm sales for the three months ending August.
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Busy on-farm activity and the covid-19 lockdown are being blamed for sluggish farm sales for the three months ending August.

The latest data from the Real Estate Institute of New Zealand (REINZ) showed 51 fewer farm sales changed hands during those months compared to the three months ended August 2020.

Overall, there were 306 farm sales in the three months ended August, compared to 364 farm sales for the three months ended July 2021 and 357 farm sales for the three months ended August 2020.

REINZ rural spokesperson Brian Peacocke says the figures reflected both the time of the year and the effects of the covid lockdown.

“Sales figures for the most recent three-month period reflect both the time of the year, when the rural sector is busy with calving and lambing, and the impact of the covid-19 influenced lockdown, with both factors impacting on sluggish sales results,” Peacocke said.

“From a national perspective for the period, arable sales were down 66% from the same time last year; finishing sales eased 13%; grazing sales dropped 20%; and horticulture sales eased 15%.”

The dairy sector was the bright spot with 29 sales for the three-month period, an increase of 262% from the eight sales recorded in the period ending August 2020.

“Given the eventual freeing up of the lockdown, however, prospects for the rural sector look bright,” he said.

The dairy payout is close to the peak experienced in recent years, while beef and lamb prices are both strong.

He says horticulture income is healthy across the board and fine wool returns continue to dominate the strong wool sector, where a carpet induced lifeline is tantalisingly close to the latter.

“The financial sector is portraying an encouraging stance despite a predicted increase in the official cash rate which, if and when it occurs, will impact on the retail market for interest rates. Regretfully, however, labour, compliance and environmental issues continue to lurk and frustrate,” he said.

In the year to August, 1680 farms were sold, 37.3% more compared to the same three months last year, with 153.8% more dairy farms, 1% more dairy support, 24.4% more grazing farms, 50.8% more finishing farms and 46.4% less arable farms sold over the same period.

The median price a hectare for all farms sold in the three months to August was $27,250 compared to $25,460 over the same three months in 2020.

Four regions recorded an increase in the number of farm sales, with the most notable being Nelson/Marlborough with 11 sales and Southland with six sales.

 Manawatu-Wanganui and Wellington recorded the biggest decreases in sales with 22 and 15 fewer sales in the regions respectively.

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