Monday 19 September 2016 03:49 PM
NZ dairy farm prices show sharp rise, REINZ figures show
By Edwin Mitson
Sept. 19 (BusinessDesk) - The median price per hectare for a New Zealand dairy farm sales has increased by more than 50 percent on a year ago, Real Estate Institute of New Zealand figures show.
In the three months to the end of August 2016, the median sales price per hectare was $40,469, with 14 properties sold. In the same period a year earlier, the median price was $26,906, with 21 properties sold, a rise of 50.4 percent.
The figures cover the winter period, with REINZ noting that the low level of sales can distort statistics. The median size of a dairy farm sold was 100 hectares.
The price rises for dairy farms are far above the performance of other farms, with the median price per acre for finishing farms rising 4.5 percent, grazing farms falling 9.8 percent and horticulture farms falling 0.3 percent.
Grazing properties accounted for the largest number of sales, with a 40 percent of all sales in the three months to the end of August 2016, Finishing for 19 percent, horticulture 20 percent and Arable accounting for just 9 percent.
Dairy farm operators are currently in their third season of low global dairy prices but have been given heart by recent gains in the GlobalDairtyTrade auction which have led to processors raising their forecast price per kilogram of milk solids, with Fonterra raising its price by 50 cents to $4.75 in August.