Sales volumes fell, to 380 for the latest period, down from 443, though solid activity in May helped lift the tally from the April period number of 362.
The median price per hectare for all farms sold during the May three-month period was $22,244, a 15.2% fall from the 2018 value of $26,219/ha, institute rural spokesman Brian Peacocke said.
However, the all-farm index rose by 0.2% compared to a year earlier. The index adjusts for differences in farm size, location and farming type, which the median price does not, and is regarded as the best overall measure of sales pricing.
The number of farms sold during the year to the end of May was 1409, down 3% on the previous year. There were 34.2% fewer dairy farms sold, 13.8% fewer finishing farms and 6.7% fewer arable farms offset by a 26.3% increase in grazing farm turnover.
Compared to the three-month period in 2018, Gisborne (plus nine) had a solid increase in sales while Waikato (down 21) and Bay of Plenty (down 13) had the greatest declines. Compared to the most recent April three-month period, Canterbury had the biggest lift in sales, up by 14 during the period.
Peacocke reported a good and much-needed improvement in Canterbury with steady activity on dairy farms, good sales levels for finishing properties at solid prices and a big uplift in sales of grazing units at steady prices, including a surge in sales in the Mackenzie and Waimate districts.
Manawatu-Wanganui had a boomer month for grazing farm sales at good prices, especially in Tararua District, and some finishing block sales.
Across other regions:
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Northland had strong sales of grazing units but minimal activity in dairying and light finishing farm turnover.
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Waikato dairy farm sales are at half the level of a year ago but solid activity for finishing farms at some very strong prices.
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Bay of Plenty sales concentrated heavily on horticulture.
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Gisborne and Hawke’s Bay had reasonable sales of horticulture blocks, light grazing farm turnover and zero finishing farm activity.
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Taranaki had solid finishing farm sales at strong prices, only one dairy farm sale recorded in May and reasonable grazing turnover.
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Wairarapa-Wellington had a tough month in May with no pastoral farm sales and just one cropping unit.
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Nelson-Marlborough had healthy turnover for both grazing and finishing farms at some very good prices but just one dairy farm sale and acceptable results in horticulture.
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Otago had a continuation of steady sales of both grazing and finishing units.
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Southland had an upturn in dairy farm sales with five recorded in May alone and consistent turnover in the other sectors.
Southland was one of the regions where concern is being expressed about the hardening of lending criteria by the banks, Peacocke said.
It is one of the factors contributing to discontent among farmers, adding to evidence of sales of good pastoral land to forestry interests aided and abetted by the Overseas Investment Office and continuing compliance issues.
Although product prices were solid, the dairy sector is experiencing reassessment of budgets and equity situations, he said.
Fir the three-months to the end of May, the median sale price for dairy farms was $31,248/ha, higher than the $30,243/ha for the April period but down from $35.901 in May last year, a 13% fall. Year-on-year the institute’s dairy farm index fell 3.7%.
The median price for finishing farms was $30,908/ha, up from $29,093/ha in May last year, a 6.2% rise. The median price for grazing farms slipped 1.1%, to $10,572/ha from $10,687/ha a year earlier.
The median price for horticulture units rose 1.3%, to $281,384/ha from $277,842 in May last year.
