News Release 1 November, 2007

Dairy Impetus Boosts Farm Values

Values approaching $34,000 per hectare have been realised recently at auction for land suitable for dairy farming in Canterbury, fueled by the buoyant dairy sector.

Yesterday PGG Wrightson sold a 166-hectare irrigated beef finishing farm near Burnham for $5.625 million, nearly $34,000 per hectare, said the company’s South Island real estate manager, Peter Crean.

Two weeks ago the company auctioned a 198-hectare non-irrigated sheep farm near Methven for $5.3 million to dairying interests.

“These prices are very strong and are surpassing values previously  achieved “ he said.

“Both auctions were attended by over 100 people, with most interest from prospective dairy farm owners and operators.

“The fully irrigated Burnham property will most likely be used as a dairy support block or conversion to full dairying, while the Methven farm will probably be used as a support block.”

Recently PGG Wrightson sold a Southland dairy farm to a Waikato buyer for $29 million, believed to be a record for a South Island transaction of its type.

Crean said demand is currently exceptional in Canterbury for dairy farm properties and those suitable for support or conversion.

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