There was a slight drop in farm sales and prices in December but dairy remains resilient

There was a dip in the number of farms sold at the end of last year and in their their price, according to the latest figures from the Real Estate Institute of New Zealand.

According to the REINZ there were 486 farm sales in the three months to December last year, down 12.3% compared to the same period of 2013 but up 30% on the 374 sales recorded for the three months to November last year, suggesting most of the downturn in sales occurred in December.

 Although the median price per hectare of $28,781 for farms sold in the fourth quarter of last year was up 19.1% compared to the same period of 2013, it was down 3.5% compared to the three months ended November.

And the REINZ All Farm Price Index, which adjusts for differences in farm type, size and location, dropped to 3249.8 from 3278.1 in November (-0.9%), and was 0.2% lower than December 2013.

Dairy Farm prices remained resilient in the face of weak milk export prices, with the national median selling price at $41,227 per hectare, compared with $36,825 in November and $38,267 in December 2013. Prices were particularly strong in the Waikato, where the median dairy farm price was $44,584 per hectare compared with $41,227 in November and $43,902 in December last year.

Ninety five dairy farms were sold in the three months ended December, well up on the 55 sold in the three months to November but down compared with 121 sold in the fourth quarter of 2013.

The REINZ Dairy Farm Price Index for the fourth quarter of last year was 2157.6, down 3.2% compared to the three months ended November and up 11% compared to the fourth quarter of 2013.

REINZ rural spokesman Brian Peacocke said the latest sales volumes and prices indicated a a strong degree of confidence in the medium to long term future of the pastoral sector by vendors, purchasers and financiers.

Of particular note was the strength of dairy farm sales in the Waikato, with some farms there selling for record prices.