increase font size
Simon Anderson, Bayleys.
A drop in the primary produce commodity price index will scarcely affect land prices, says the real estate industry.
Bayleys national manager Simon Anderson says farming’s lower revenues will little influence how farmers estimate future revenues. Farmers use revenue data, costs of production and debt servicing to figure what they should spend to buy a new property.
“Farmers, and more importantly their banks, are taking a long-term view of commodity prices. Long-term the outlook is strong for sheep, beef, and diary prices,” Anderson says.
“So while Fonterra is budgeting for a farmgate milk price of $4.70/kgMS for the next season, the banks take a longer term view – more around $6.30.
“There’s nothing new about the cycles of the rural market, but banks and farmers take a more flat-line approach to their revenue forecasts, working instead on long-term rolling averages rather than historical high and low positions which can fluctuate markedly in the short term.”
Bayleys notes more corporate buying rural property: high-equity farmers are looking to develop economies of scale by buying extra properties close to those they now own.
“Bigger… farmers can take advantage of fertiliser input, pasture management, seed or crop planting, feed production and staff management over nearby properties.
“While commodity prices are the same for all… economies of scale benefits vary depending on a farmer’s experience, equity, location and business plan.”
Buoyed by strong forecasts for milk prices and a renewed demand for dairy assets, the South Island rural real estate market has begun the year with positive momentum, according to Colliers.
Dairy Women’s Network (DWN) has announced real estate company Bayleys will be the naming partner for its 2025 conference.
Farm sales are on the rise. According to recent data from the Real Estate Institute of New Zealand (REINZ), there was an 18.9% increase in farm sales for the three months ending August 2024 compared to the same period in 2023.
Dairy
Recently released data from the Real Estate Institute of New Zealand (REINZ) shows there were 224 fewer farm sales (-48.6%) for the three months ended April 2023, compared to the same period last year.
Beef + Lamb New Zealand (B+LNZ) is calling for nominations for director roles in the Eastern North Island and Southern South Island electoral districts.
Going one better than a frustratingly close second place finish at last year's event, the country's top axeman, Jack Jordan of Taumaranui, last weekend won the Stihl Timbersports World Championship individual event in.
Canterbury A&P Association (CAPA) show president Brent Chamberlain says a big development for this year is the Wool Zone, first introduced two years ago as a showplace for everything produced from wool, but now greatly enlarged with its own Wool Marquee and more than 30 trade sites.
Salmonellosis is a serious disease in cattle.
Drench resistance is already hitting farm profits; it's not just a future problem.
Applications are open for Horticulture New Zealand's (HortNZ) 2026 scholarship programme, with 20 funding opportunities available.
