While farm sales in the three months to the end of March were fewer than in the corresponding period last year they were slightly ahead of sales in the three months to the end of February.
“Benevolent autumn conditions in most regions throughout the country have allowed farmers to catch up on the production that was heavily impacted by extremely difficult climatic conditions during the late winter/early spring period of 2017.
“As a consequence, buoyed by strong prices for beef, lamb and horticultural products and the improving prices being signalled in the dairy industry, farmers attitudes are reflecting improving morale and a cautious degree of confidence.
“The caution referred to relates to the inexorable demands of the range of compliance issues and the far-reaching tentacles of the invidious livestock disease Mycoplasma bovis, which is sapping the financial and social resources of those within the livestock and property-owning chain who have been affected,” he said.
Good autumn conditions now favour the rural market.
In the first quarter this year sales were down by 11.4% or 50 farms on those for the same quarter last year.
There were 388 farm sales in the quarter and 438 in the quarter last year. In the three months ending February there were 384 sales.
In all 1513 farms were sold in the year ending March 2018, 15.7% fewer than were sold in the year to March 2017, with 26.6% more finishing farms, 4.8% more dairy farms, 36.9% fewer grazing and 40.9% fewer arable farms.
The median price per hectare for all farms sold in the three months to March 2018 was $27,428 compared to $27,509 recorded for three months ended March 2017 (-0.3%).
In Northland/Auckland there was good activity and stronger prices on good beef finishing properties, with increasing interest in lower quality drystock farms as a result of regional financial incentives for forestry. Ongoing inquiry for land suitable for both kiwifruit and avocado plantings was constrained by a lack of water.
Solid activity and prices on finishing properties in Waikato was backed by a strong surge of sales in the dairy sector throughout the region with moderate to high prices being maintained, including a particularly strong sale of a Tatua supply dairy farm. Sales activity is still evident late in the season.
Horticultural sales again dominate in Bay of Plenty with the continuation of a strong market for kiwifruit properties.
Prices for very good gold kiwifruit orchards are hovering around and above $1.1 million a canopy hectare and $450,000-$500,000 a canopy hectare, inclusive of crop, for the best green orchards. There was a very strong response to Zespri’s tender process for licences for gold plantings with high prices and substantial areas of plantings being indicated.
There was also reasonable activity around finishing farms.
A relatively quiet Taranaki dairy market had a low level of listings and a degree of negativity contributing to constrained inquiry, indicating a shortage of buyers.
Strong sales volumes were recorded for finishing and grazing properties in Manawatu-Wanganui with a solid contribution from the eastern area of Tararua.
Inquiries for good, smaller support blocks from both the sheep and beef and dairy sectors were increasing but it was hard work for agents on the remote properties and while quieter on the dairy front, a good autumn and strong livestock prices were contributing to a reasonably positive, albeit considered, tone in the marketplace.
The Wairarapa/Wellington market was quiet with limited sales in the drystock sector.
Nelson/Marlborough had a healthy market with strong inquiry for pastoral properties exacerbated by a shortage of listings and prices being paid reflecting external influences.
Lower volumes but strong prices were seen in the Marlborough viticulture sector when amalgamation opportunities arose, in spite of challenging harvesting conditions. Large areas of vineyard plantings are planned.
The dairy market was difficult.
Canterbury/West Coast had a reasonable level of sales of finishing properties but was quieter on the higher value dairy units.
In Otago a continuation of solid sales and activity on both finishing and grazing units was in spite of an early strike of winter.
Southland had good autumn conditions, good product prices and low interest rates underpinning returning confidence evidenced by busy activity and sales of finishing and grazing units but values were back by up to 20%.
Dairy farms were now being taken off the market until next season.
“Mycoplasma bovis and the ongoing management issues arising are a major issue in the region, particularly as that applies to owners of such properties seeking a sale,” Peacocke said.
