Buyers hunting for right farm
It could be that buyers are hunting out the right farm to purchase as farm sales drop for the three months ended December 2023. That’s according to the Real Estate Institute of New Zealand (REINZ).
The low payout may starting to affect farm sales in the dairy sector.
The Real Estate Institute of NZ Dairy Farm Price Index fell by 13% in the three months ending in July compared to the three months to June and 12.1% compared to the same period last year.
For the three months ended July 2015 the median sales price per hectare for dairy farms was $35,304 (41 properties) compared to $35,531 for the three months ended July 2015 (64 properties) and $36,673 (47 properties) for the three months ended July 2014.
“The recent Fonterra dairy payout announced confirmed widespread expectations within a market place anticipating a downturn in the current season,” says REINZ rural spokesman Brian Peacocke.
“The key issue for many is the time prices are likely to remain at current levels, with particularly concern being expressed for lower order and 50/50 sharemilkers.
“Banks generally appear to be supportive, but conversations are taking place given circumstances being appropriate. Across the board, culling of lower performing animals is evident, and the retention of surplus assets is under review.”
Recent trends seen include:
Prices holding firm in the Waikato for those few dairy farms sold in July
Early indications of some farmers in Northland initiating a change in land use from dairy to beef, purely in response to the economic situation.
The Ministry for the Environment (MfE) has found itself in a stoush with NZPork over the controversial National Policy Statement for Highly Productive Land (NPS-HPL).
Fonterra says the sale of its global consumer business and its Oceania and Sri Lankan operations could take 18 months to complete.
The lobby group the Methane Science Accord (MSA) says it welcomes a recent government move to seek outside advice on reducing biological methane targets, rather than relying on recommendations made by the Climate Change Commission.
Well-known scientist Jock Allison has passed away.
After a decade of consultation and court battles, Environment Southland has officially adopted a plan to prevent further decline in the region's water quality.
Farmers are throwing down the gauntlet to politicians - hold an independent inquiry into rural bank lending or face tough questions from the farming sector.
OPINION: Scientists claim to have found a new way to make a substitute for cow's milk that could have a…
OPINION: The Irish have come up with a novel way to measure cow belching, which is said to account for…