According to REINZ, 23% more farms were sold in the year ending February.
The rural real estate market is consolidating, with agricultural sales increasing in most areas in the three months ending in February, new data shows.
Figures from the Real Estate Institute of New Zealand show that there were 129 more farm sales, almost 40% more, than at the same time last year. A total of 458 farm gate sales were recorded over the period, compared to 329 the previous year.
Thirty percent of sales during the three-month period were from finishing farms, 30 percent were pasture farms, while dairy products made up 20 percent and horticulture, 9 percent.
In the year ending February, 23% more farms were sold compared to the same period the previous year, with dairy farms accounting for the majority, or 51%, of sales. A total of 1,542 farms were sold in the year ending February.
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The median price per hectare for all farms sold in the three months to February was $ 25,665, compared to $ 20,569 for the same period last year.
For dairy farms, the median price per hectare was $ 33,538; for feeder farms it was $ 35,718; for pasture farms it was $ 11,597 and for horticulture it was $ 355,547.
The REINZ agricultural price index rose 7.4 percent in the three months ending February compared to the same period last year.
The index takes into account differences in size, location and type of farm, unlike the median price per hectare, which does not take these factors into account.
Ten of the 14 regions saw an increase in agricultural sales for the three months ended February compared to the three months ended February of last year, the most notable being Waikato, up 27 sales, and Auckland, in increase of 24 sales.
REINZ rural spokesperson Brian Peacocke said sales figures confirmed the rural market was in good shape, led by sales from dairy farms and finishing and grazing properties.
“Of particular note are the encouraging signals emerging from the global dairy market, which in turn translates into increased payments to dairy farmers. Increasing cash flow from this sector alone will have significant benefits for the New Zealand economy.
“The sales of finishing and pasture properties reflect the commitment of these sectors to explore all market possibilities despite serious supply chain issues, with the resulting growing demand and the sustainability of property values in these sectors. reflecting an underlying and seemingly enduring degree of confidence.
The activity was also gearing up in horticulture with a bumper harvest of kiwifruit underway, supported by specialized reefer vessels, he said.
However, the horticultural labor shortage was having a “dramatic impact”, with considerable amounts of export produce going unrealized, he said.