Dairy farm prices have declined by 21% from where they were a year ago, according to the latest figures from the Real Estate Institute of New Zealand.
The REINZ Dairy Farm Price Index, which adjusts for differences in farm size and location, was down 20.9% in the three months to February compared with the three months to February 2015.
Most of the decline appears to have occurred in February itself, with the Index down 14.3% in the three months to February compared with the three months to January.
The median selling price per hectare of all dairy farms sold in the three months to February was $36,687 compared with $45,105 in the three months to February 2015.
The number of dairy farm sales has also dropped steadily over the last two years, falling from 123 in the three months to February 2014 to 97 in the three months to February 2015, to 76 in the three months to February this year.
REINZ rural spokesman Brian Peacocke said favourable climatic conditions over much of the country had seen a continuation of good returns for beef and horticultural properties, but the outlook was being dominated by a "gathering of clouds and difficult conditions" for dairying.
The more robust outlook for non-dairy farms was reflected in the REINZ All Farms Price Index, which rose 0.6% in the three months to February compared with the three months to January and was up 6.2% compared with the three months to February 2015.
There was a steady level of sales for grazing and horticultural properties but an easing in activity for dairy and finishing properties, Peacocke said.
There were also indications that some dairy farmers in strong financial positions were holding back from making purchases in anticipation of lower prices.
Grazing properties accounted for 45.6% of all farm sales in the three months to February, followed by dairy farms 16%, finishing properties 15.6% and horticultural properties 11.4%.
Farm sales
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24 Comments
Christov, can I say CJ....
https://www.youtube.com/watch?v=GYoFCwIFB0M
can I lead the South American investigation....
If farms that are less productive and/or in a lower per ha price range are selling and higher end farms are not selling then the figures in a median price range get distorted. This is a recognized problem in quoting real estate sale comparisons. REINZ also have the comparison to R.V figures which give a better idea.
Hows this work?
https://reinz.co.nz/rural-property-data#
http://i.stuff.co.nz/business/farming/78006815/dairy-farm-prices-and-sa…
The median price per hectare for dairy farms has tumbled about $11,000 since a year ago, and there were no dairy farms sold at all in Canterbury or on the West Coast in the last three months.
If the Pinny farms that were recently sold and a few other Northland farms sold during this period then you would expect it to impact the national Median as those Northland farms were around $18-$19k / ha. ANZ usually has a good rundown of regional sales results in their rural report which gives a good gauge on what is happening in specific locations.
Swollen cheese and butter imports fuel US glut
http://www.agrimoney.com/news/swollen-dairy-imports-glut-us-market--942…?
Don't you go peddling those doomsday senario's Aj. Get with the programme...its called volatility!
http://www.stuff.co.nz/business/farming/agribusiness/77995989/no-dairy-…
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