The Real Estate Institute regularly outlines a litany of reasons for the decline: bad weather, difficulties with hiring labour, the inexorable increase in compliance issues.
The Institute also points out farm owners are ageing and a younger generation is needed to rejuvenate the sector. Some of those ageing farmers might represent an avalanche of potential sales building up behind an earthen dam. Should the dam burst, what is the likely impact on farm values?
Massey University real estate analyst Iona McCarthy sees the need for a price correction and speculates it will happen because a decrease in sales volume invariably results in a decrease in price. The deep south might provide the best indicator. A Gore real estate manager claims prices there have come back 18-22% since five to 10 years ago though that sounds remarkably high.
Gerard Hutching
SFF repays subsidy
Meat processor Silver Fern Farms has paid back its $43.3 million employee wage subsidy and retained all 7000 staff across 14 plants while Alliance is yet to repay its subsidy but is investing in upgrading Lorneville.
Wool funding in progress
Funding for the wool governance group recommended in the Vision and Action report has yet to be worked out. Some are looking to the red meat sector as an exemplar for turning the sector around.
Debate over dairy
Chinese demand for whole milk powder might drop off as the New Zealand season progresses, a dairy webinar has heard. Analysts are taking a wait-and-see approach for an understanding of where dairy is heading.
Brits engage Lockwood
Former Trade Minister and High Commissioner to Britain Lockwood Smith has been appointed to a body advising the British government on trade matters.
Fieldays to do a virtual repeat
A Fieldays virtual event will take place alongside the physical one next year. Organisers are pleased with what was achieved on line though it is too soon to release details of how well it performed.
Farm sales decline
Compared to April-June 2018 only half the number of farms sold this year, leading to the question of whether a price correction is on the way.
