Managers and agents in regional offices suggest the outlook coincides with long-time farmers looking to exit.
PGW”s Waikato real estate manager John Sisley said older farmers are finding compliance issues increasingly complex to deal with.
At the same time the general optimism in the sheep and beef sector means inquiries from potential buyers are above normal levels.
That view fits in with Real Estate Institute rural spokesman Brian Peacocke’s comments over recent months that the increasing age of dairy farmers and issues finding farm labour could also lead to a solid number of dairy farms going to market this sales season.
The institute’s statistics show typically lighter sales activity over the winter months and subdued pricing though some areas, especially in the North Island, have remained very active.
Balclutha PGW agent Stewart Rutter said south Otago farmers looking to sell breeding and finishing properties appear to have made decisions earlier this winter than would usually be the case.
He put that down to the strong commodity prices and age of the vendors.
“Generational change sits at the back of most farmers’ minds and they know they have to time their decisions wisely.
“With interest rates remaining favourable older farmers will see that now is an excellent time to sell onto the next generation, giving a new owner a chance to make a positive start.”
In Hastings agent Doug Smith said there have been several good sales in Hawke’s Bay in June with older farmers choosing the right moment.
Farmer confidence is high as sheep and beef income is well above last year’s figures.
“Several farmers in their 60s and 70s recognise that this is a good time to sell, including some who have held back pending the fate of the Ruataniwha irrigation scheme, which now looks unlikely to proceed.”
The farms coming to market are generally of good quality, which should attract plenty of inquiries, he said.
PGW’s Canterbury and West Coast real estate manager Peter Crean said there are plenty of farmers making inquiries about buying 40ha to 70ha grazing blocks to augment their existing properties.
With relatively few listings that means a lot of interest shown in those farms that are on the market.
He expects values of sheep and beef farms will hold steady over the next few months.
In Southland the company’s real estate manager Andrew Patterson believes the high lamb and deer returns, in particular, will encourage farmers using cash not needed to repay debt into buying more land.
If farm prices remain around current levels then, with returns where they are, they still represent good value, which is a pointer to an active spring market, he said.
Outside the real estate sector PGW’s livestock national genetics manager Callum Stewart said exceptional demand at this year’s annual bull sales has marked a golden year for the red meat sector.
“In 2018 our breeders put up 2919 bulls with a 95% clearance rate. Year-on-year, the average price across all breeds, per bull sold, was about 40% ahead of last year.”
Farmers are also getting excellent weaner prices.
PGW seeds is also seeing greater grass-to-grass cultivation as farmers work to improve pasture, another sign of confidence.
