Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Northland dairy farms selling out en-masse to out of towners

Northland dairy farms selling out en-masse to cash-rich ‘out-of-towners’



Selling Northland nationwide – the regions ‘cheap’ dairy farms are being snapped up by ‘out-of-town’ buyers from regions where their land is more highly valued.


The dynamics of dairy farming in Northland are undergoing the biggest shake-up the sector has seen in more than 50 years – with a wave of ‘out-of-towners’ coming into the region to take advantage of the comparatively cheap land on offer.

In the past 18 months, $20 million dollars of Northland dairy farms have been sold to Waikato, King Country, Taranaki, Canterbury, and Westland farmers moving into the province. The sales were brokered by real estate agency Bayleys – which is now looking to accelerate the trend this year.

Among the Northland dairy farming units which changed hands to ‘out-of-towners’ in the past year were:

• A 292 hectare Pouto dairy farm milking almost 600 cows which sold to Taranaki buyers for $3.7 million

• A 370 hectare Ruawai dairy farm producing 220,000 kilogrammes of milk solids bought by a Canterbury farmer for $7.3 million

• A 283 hectare mixed use beef and dairying unit at Matakohe bought by a Canterbury farmer for $2.7 million

• An 80 hectare Ruawai dairying unit sold to a Canterbury farmer for $2.8 million

• Whangarei and Maungaturoto farms sold to buyers from the Waikato

• A 425 hectare Aranga farm sold to a King Country buyer for $2. 7million

and

• A 285 hectare Dargaville dairying unit sold to a buyer from the West Coast of the South Island for $1.33 million

More than of half the properties which sold were taken on a national ‘roadshow’ by Bayleys last year – with copies of a portfolio showcasing the farms presented at seven industry seminars.

The company is now replicating the Northland Dairy Expo this spring – with expectations that an even greater number of the province’s farms will be bought by ‘out-of-towners’.

Bayleys’ Northland rural manager Tony Grindle said the company was looking to take more than a dozen Northland dairy farms on an expo’ designed to showcase the very best of Northland dairy units through a week-long road show encompassing Hamilton, New Plymouth, Palmerston North and Auckland.

“The motivation is simply about the economics of dairy farming – and the price of quality primary productive land in Northland compared to most other parts of the country,” Mr Grindle said.

“Last year we took 11 Northland dairy units on the roadshow... and all of those available sold.

So it was a proverbial ‘no brainer’ to do it again this year. The word is certainly out in the rural market about what we did.

“We’ve been out in the marketplace for a couple of months now talking about the roadshow, and we’ve noted a stronger interest and commitment from Northland farmers wanting to be a part of the campaign and promote their properties to buyers from these traditional dairying areas.

“With the support of Bayleys’ nationwide network, we are able to gain penetration into the more traditional dairy farming areas and ensure our vendors’ farms are put in front of quality prospective purchasers who may see a premium in the Northland land values.

“While traditional marketing of any productive rural units should of course start with canvassing the immediate locality, the dynamics for diary farming have changed significantly - meaning the potential buyer pool is now nationwide.”

Mr Grindle said that as a generalisation, most young Northland farmers wanting to get into the dairying sector simply didn’t have the comparable “financial muscle” being brought to the region by out-of-town buyers who were selling up their high-value units in New Zealand’s most productive pastoral zones.

Latest figures from the Real Estate Institute of New Zealand show the average cost per hectare of dairy farms in Northland was $15,555 per hectare. By comparison, the REINZ figures show the average cost per hectare of dairy farms in the Waikato was $49,000, while in Taranaki it was as high as $55,000 per hectare.

Mr Grindle said there were a number of reasons why Northland farmers had chosen now as a good time to exit the market – ranging from the drop in Fonterra’s forecast milk solids payout for the 2024/15 financial year, and a lack of succession planning for some ‘older’ farmers looking to retire, through to the second consecutive dry season for those in the western coastal region.

“As well as it just being the right time for those individuals and families that have been weighing up their options for the past few seasons,” he said.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

DIY Law: Government Exempts Some Home Improvements From Costly Consents

Homeowners, builders and DIYers will soon have an easier time making basic home improvements as the Government scraps the need for consents for low-risk building work such as sleep-outs, sheds and carports – allowing the construction sector ... More>>

ALSO:

Media Awards: The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards

The New Zealand Herald has been labelled a “powerhouse news operation” as it claims the two biggest prizes – Newspaper of the Year and Website of the Year – along with many individual awards at the 2020 Voyager Media Awards Website of the ... More>>

ALSO:

ASB Bank: ASB Takes The Lead Again With New Low Home Loan Interest Rate

ASB has moved again to support its customers, cutting a number of home loan rates, including the two-year special rate to a new low of 2.69% p.a. Craig Sims, ASB executive general manager Retail Banking says the reduced rate will be welcome news for many ... More>>

ALSO:

Nathan Hoturoa Gray: The Problems With Testing And Case Statistics For Covid-19

To begin to understand disease transmission in a country requires adequate testing of your population with properly vetted, accurate tests. As the world struggles to find what 'adequate percentage' of the population is necessary, (estimates predict ... More>>

ALSO:

RNZ: Fletcher Building To Lay Off 1000 Staff In New Zealand

The construction company will cut around 10 percent of its workforce as it struggles with the fallout from Covid-19. More>>

ALSO:

Can Pay, Won't Pay: Cashflow Moves Urged

Government Ministers are asking significant private enterprises to adopt prompt payment practices in line with the state sector, as a way to improve cashflow for small businesses. More>>

ALSO:

Gordon Campbell: On Why We Should Legally Protect The Right To Work From Home

For understandable reasons, the media messaging around Level Two has been all about “freedom” and “celebration”, but this is not necessarily going to be a universal experience. When it comes to workplace relations, Level Two is just as likely to ... More>>

ALSO:


Telecoms: Spark Welcomes Spectrum Allocation And Prepares For 5G Rollout Over The Next 12 Months

Spark welcomes spectrum allocation and prepares for 5G rollout over the next 12 months Spark today welcomed the announcement of the direct allocation process of 5G spectrum, with the Company to be offered management rights to 60 MHz of 3.5 GHz ... More>>

ALSO:


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>

ALSO:


Media Blues: Stuff Chief Executive Buys Company For $1

Stuff chief executive Sinead Boucher has purchased Stuff from its Australian owners Nine Entertainment for $1.
The chief executive was returning the company to New Zealand ownership, with the sale is expected to be completed by 31 May.
"Our plan is to transition the ownership of Stuff to give staff a direct stake in the business as shareholders," Boucher said in a statement.... More>>

ALSO:

RNZ: Bar Reopening Night 'much, Much Quieter'

Pubs and bars are reporting a sluggish first day back after the lockdown, with the fear of going out, or perhaps the joy of staying home, thought to be a reason for the low numbers. More>>

ALSO:

Stats NZ: New Zealand’s Population Passes 5 Million

New Zealand's resident population provisionally reached 5 million in March 2020, Stats NZ said today. More>>

NIWA: Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist

Seven weeks of lockdown has provided evidence of how pollution can vanish overnight with benefits for the environment and individuals, says NIWA air quality scientist Dr Ian Longley. Dr Longley has been monitoring air quality in Auckland, Wellington ... More>>

ALSO:

Government: Tax Changes Throw Cash Lifeline To SMEs

A significant package of tax reforms will be pushed through all stages in Parliament today to throw a cash flow lifeline to small businesses. More>>

ALSO:

Statistics: Some Indicators Pick Up As New Zealand Moves Out Of Lockdown

New Zealanders moved around more in the main centres and used more fuel and power while weekly exports held up as the country left the COVID-19 level 4 lockdown, Stats NZ said today. COVID-19 data porta l, our new webpage, includes about 40 near-real-time ... More>>

ALSO:



University Of Canterbury: Astronomers Discover The Science Behind Star Bursts That Light Up The Sky

University of Canterbury (UC) astronomers are part of an international team that has revealed how explosions on the surface of a white dwarf star can increase its brightness by thousands or millions of times making it look like a new star. For ... More>>

RNZ: International Passenger Numbers At Auckland Airport Drop 95 Percent

Auckland Airport says international passengers numbers have dropped more than 95 percent in the first 20 days of April over the year earlier. More>>

ALSO: