Friday, March 29, 2024

OPINION: To buy or not to buy

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It is truly amazing what a little (okay, a lot) of rain can do to pastures and in turn farmers’ confidence in a very short space of time. 
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This time last week I was looking at the forecast hoping we might get 65mm of rain on parched paddocks. Now, 150-200mm later and we are looking at very different landscape. The rain through Hawke’s Bay and East Coast was widespread, with most areas recording at least 100mm of good soaking rain.

Northern parts of the North Island also got a much-needed drenching and while some still have a long way to go before being back in the green it has certainly made life a lot easier.

In case you hadn’t noticed, I enjoy writing about happy news and the rain certainly lifted the spirits and confidence in my neck of the woods. The Stortford Lodge sale on Wednesday had a whole different vibe and as I walked the alleys with other sale-goers the talk was on how much rain had fallen and what people were going to do now. Vendors of lambs on the day were smiling, with prices up $11-$12 on the previous week.

Many farmers will now shut the gates on selling any more stock but might need to restock so there are three options available, which will no doubt be under consideration at many kitchen tables. Some keen buyers will look to jump right in and accept that the prices will be inflated. Others will take a cautious approach and wait until feed is re-established before entering the market and then there are those who will hold off for a few weeks for the rain bubble to burst and prices hopefully level out. So the question remains –to buy or not to buy?

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