Farm sales

Farm sales on the rise

Farm-gate sales figures show growing confidence in the rural sector, according to a spokesperson for the Real Estate Institute of New Zealand (REINZ).

Data released by REINZ shows that there were 193 more agricultural sales for the three months ending May 2021 than for the three months ending May 2020.

A total of 1,716 farms were sold until May 2021, 52% more than in May 2020.

In the year ending May 2021, 124.3% more dairy farms and 77.8% more dairy support properties were sold.

Brian Peacocke, rural spokesperson for REINZ, says these sales figures confirm an emerging trend for the latter part of the season, “whereby an increasing degree of confidence is emerging within the rural sector”.

“Driven by optimistic prospects for the entire range of products, the dairy sector is the big beneficiary of the recovery with sales volumes much higher than those relating to the equivalent periods of 2019 and 2020”, he explains. .

For the three months ending May 2021, the median selling price per hectare for dairy farms was $ 32,170.

This represents an increase of $ 7,350 over the same period in 2020.

Based on the price per kgMS, the median selling price is equivalent to $ 33.22 / kgMS for the three months ending May 2021, compared to $ 32.50 / kgMS for the same period in 2020.

Dairy farms also accounted for 20% of all farm gate sales.

All 13 regions of New Zealand saw an increase in farm gate sales, the most notable being Waikato and Northland.

“From a climatic point of view, significant parts of the country have shifted from one extreme to the other, with downpours ending the drought and extensive damage in parts of Canterbury to much-needed rains in the eastern regions. from the North Island, ”Peacocke said.

“The luckier provinces of Waikato, Taranaki and Southland in particular have had one of the best periods of grass growing in the fall and early winter in many years.”