Farm sales

Dairy Farm Sales Increase About $ 5-10 Million

Farm sales are heating up and buyers are once again considering multi-million dollar dairy properties.

After a two to three year lag, registrations and price tags are on the rise.

The big spenders of the golden years are absent, but agents say dairy farms worth $ 5-10 million will soon appear on the market.

PGG Wrightson Real Estate Director Peter Newbold said many stars were lining up for a more positive market after a long trough.

” We have seen over the past six months a marked increase in sales and some values, but remember we are coming out of a weak base. I think this will continue, but we still have a long way to go. There has been a turnaround in dairy with a lot more dairy properties coming this spring for a long time. ”

He said most dairy sales would have been less than $ 5 million in recent years, when there was genuine interest in properties $ 5 million to $ 10 million, and less for farms. from $ 10 to $ 15 million.

This follows a period of drought in selling activity when buyers were put off by declining yields, pressure from banks as well as additional environmental and regulatory requirements.

Low interest rates and high payments rekindled interest as farmers sought to invest after reducing farm debt, with people nearing retirement thinking about their succession plans.

Mr Newbold said the neighbors were also back in the game, and businesses, large groups and investors viewed dairy lands as a “safe” return.

He said it was probably too early to say if that interest would translate into real sales, but the signs were encouraging.

Sheep and beef properties for grazing and fattening were in constant demand, thanks to the high yields of lamb and beef.

This market has also been stimulated by forest investors who appropriate land for carbon cultivation.

Mr Newbold said investors were prepared to pay a 10-15% premium for this land, which proved irresistible to the owners.

Interest has remained low for large trophy stations since the tightening of legislation on foreign investors.

However, PGGW has one property about to be listed on their books soon, which just falls into that category.

– By Tim Cronshaw