Rural Property Pulse - PGG Wrightson Real Estate
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Rural Property Pulse
Issue 37 | Summer 2020
Contents
Inside
> Peter Newbold - Confidence in the
market set to return as fundamentals
remain strong
> Heartbeat - Securing finance a challenge,
though productivity and revenues
present market opportunities
> Regional update
> International economic factors strongest
influence on wool prices
> Good weather and high global demand
set growers up for a productive summer
> Good climatic conditions and positive
outlook for commodities boost livestock
markets
> A closer look...
pggwre.co.nz Helping grow the country
pggwre.co.nz
Confidence in the market
set to return as fundamentals
remain strong
Spring arriving late and tighter conditions Increased activity is likely to start in the sheep between the price expectations of buyers and
around bank finance left us with a subdued and beef sector, which is more removed from those of sellers. Eventually, as the uncertainty
rural property market in recent months. both the environmental pressure and the tighter noted above is resolved, we expect this
Farmers are dealing with uncertainty on banking criteria that applies to dairy. This is discrepancy will reduce and the market for
several fronts, which will generally leave already visible with December seeing key sales of dairy farms will resume at more normal levels.
many too cautious to consider buying or both sheep and beef and arable properties along
Whether you are interested as a buyer or a
selling farm land. with encouraging signs of horticulture properties
seller of rural property, this edition of Rural
coming to the market. Property Pulse will give you an insight into the
However, the Reserve Bank announcement
to lenders late last year will hopefully In regions including King Country, Eastern Bay present state of the market.
lead to increased confidence within the of Plenty, Hawke’s Bay, Tasman, North and South For further guidance, please drop by or contact
banking sector resulting in a more proactive Canterbury, Otago and Southland there is plenty one of my colleagues at your local branch
approach to lending (see page 3 for more of activity and several excellent sheep and beef of PGG Wrightson Real Estate. They have the
on this). properties for sale, attracting motivated buyer’s experience, networks and objectivity to help
interest. In the Waikato, where in recent months you achieve your business objectives when it
Good growing conditions, excellent prices
property listing levels have been lower than comes to the sale or purchase of a farm.
for most commodities and the Reserve
expected, December has seen an increase in
Bank’s announcement all point towards We look forward to hearing from you.
activity. Where purchasers have the financial
increased momentum in the rural property
wherewithal, transactions will occur. For those
market during summer and autumn.
that cannot secure a loan in the usual fashion, via
With farmers better understanding the
a bank, alternative measures are likely to emerge.
uncertainty that has prevailed around
pending or recently adopted regulations Dairy property transactions were held in check
to manage nitrate leaching and carbon during the spring. While the payout continues
emissions, they will see that the underlying to trend to the positive, the motivation to buy Peter Newbold
fundamentals of world markets remain increases and the reasons to hold back diminish. General Manager
strongly in their favour. At present there is a mismatch in the dairy sector PGG Wrightson Real Estate Limited
PGG Wrightson Real Estate Limited, licensed under REAA 2008
Rural Property Pulse is published quarterly by PGG Wrightson Real Estate Ltd, PO Box 292, Christchurch 8140.
The information provided in this publication is intended to provide general information only. This information is not intended to constitute expert or professional advice
and should not be relied upon as such. Specialist specific advice should be sought for your particular circumstances. ‘Rural Property Pulse’ is a registered trademark of
PGG Wrightson Ltd.
Rural Property Pulse | Page 2
pggwre.co.nz
Heartbeat – securing finance a challenge,
though productivity and revenues present market
opportunities
In the early weeks of a new production season, positive growth and elevated revenues are evident in most sectors
of the rural market.
While short to medium term returns are
encouraging, concerns in banking circles
associated with exposure to the rural sector
are hindering farmers’ access to finance. This
derives from the greater capital requirements
placed on banks, including the Reserve
Bank’s review of the capital framework
applying to locally incorporated banks and
guidelines on liquidity risk. It is also amplified
by the prospect of farmers facing higher
operating costs through environmental
compliance and future standards that will
exceed the status quo.
This uncertainty is having an effect on more
intensive businesses, including dairy farms,
which potentially face more intense scrutiny
relating to environmental compliance as well
as carrying higher exposure to debt.
Late in 2019 the Reserve Bank announced
final decisions on its review. Banks have
seven years to rectify their equity position.
Potentially this is a new positive, with banks
no longer unsure of where they stand,
therefore possibly able to take a more
positive and proactive approach. Time will
tell whether this makes it easier for farmers
to secure finance. If so the rural property
market should become more active. If
not, farmers will need to adapt to the new
conditions, which will happen, though may take over a fully functioning unit, particularly at remain strong through the coming season and
take some time. a time like this when there is a degree of market beyond. Horticulture exports are buoyant and
uncertainty. That being the case, a 100 to 200 the dairy payout is predicted to sit around $7 this
These financing challenges carry some hectare parcel of land will offer more options to year, which should leave every dairy farmer with
benefits including strong competition more potential buyers than a 500 hectare block. money in the pocket or at least in a less stressful
among banks for good farming clients. For the purchaser there is a more manageable equity position. Even more clearly, red meat
In due course, if there is no easing in capital requirement associated with a smaller prices look likely to exceed the record levels set
the coming weeks, they are also likely to block of land. in the 2018-19 season.
encourage farming businesses to seek
out alternative funding options. Equity Granting finance of $1 to $2 million for a smaller Around the market for sheep and beef farms
block, rather than $7 to $8 million for a full interest in the market is firm in several districts.
partnerships, agricultural investment
economic unit, is a much easier decision for the With two or three seasons of buoyant prices for
companies and alternative land use are all
bank to make. red meat behind them, positivity in the market
mechanisms that banks may look upon
has accumulated, and farmers are increasingly
more favourably. Clearly a series of important issues is creating
motivated to buy and sell property.
uncertainty, which is taxing farmer confidence.
Another impact on the rural property
These include requirements around carbon For those farmers who have no obligations
market, notable in several regions, is that
emissions and regulations relating to freshwater around succession, and assuming their
vendors who have subdivided larger
management, as well as bank lending. environmental compliance plans are in order,
holdings are finding it easier to sell. That
now would be an excellent time to capitalise on
strategy is based on understanding your In terms of revenue and demand however,
the years of hard work by offering their property
purchaser and the market. Farms are New Zealand agriculture is thriving. Commodity
to the market.
generally more likely to sell to buyers looking prices have been excellent for several years,
to augment an existing property, rather than with plenty of reasons to believe that they will
Rural Property Pulse | Page 3
pggwre.co.nz
Regional Update
Update
Northland than anticipated due to the difficulty of securing for dairy support and finishing sheep, was
Several Northland and Auckland farms finance, which is discouraging those who might also set to sell well later in the summer. With
were listed for spring sale. While potential otherwise make Waikato rural property available positive commodity returns likely to continue,
purchasers are active, obtaining finance is a for sale. a firm market for lower North Island sheep
challenge. Vendors prepared to be flexible, for and beef farms should prevail, with prices
example, leaving some money in the property, Bay of Plenty, Central Plateau holding up well.
are more likely to sell in such circumstances. and South Waikato
An 84 hectare Hunua property attracted Demand for orchards and Bay of Plenty land Hawke’s Bay
exceptional attention when it was offered suited for kiwifruit development is strong, though As in other regions, tightened financing
for spring sale. Approximately 30 tenders such properties were largely absent from the criteria has restricted sales of Hawke’s Bay
were lodged for the former dairy farm on market as 2019 ended. Growers are likely to farms. One significant transaction was
flat to easy rolling land six kilometres east of become more active as the new year progresses. Oakbourne, a 410 hectare farm mainly
Papakura. It sold in two parts, both to local In Rotorua several dairy farms listed for spring finishing bullocks 37 kilometres east of
farmers intending to augment existing farm. sale, though inclement weather, uncertainty in Waipukurau that sold in late winter between
Another spring listing that attracted plenty the sector and the difficulty of securing finance $11,000 and $13,000 per hectare, firm on
of buyer interest was an 1124 hectare dairy held purchasers back. A 164 hectare Reporoa farm current Central Hawke’s Bay values; while
portfolio around Ruawai, 30 kilometres south that changed hands for $45,000 per hectare gave Cabbage Tree Flat Station, Waimarama, a
of Dargaville, which also has soils suited to encouragement to other vendors. Activity around large coastal sheep and beef property 34
vegetable production. Its likely summer Whakatane and the wider Eastern Bay of Plenty kilometres south east of Hastings, changed
sale will be a clear market indicator for rural exceeded the same period last year, including two hands in October. Both transactions indicate
property in the region and wider. notable listings: a 203 hectare Whakatane dairy that enthusiasm for good properties remains
property recently re-developed to surpass likely strong. A 243 hectare Elsthorpe grazing
Waikato future environmental requirements; and a top property and a 557 hectare Patoka hill country
Despite all indications suggesting strong producing 314 hectare Nukuhou North dry stock breeding property both attracted reasonable
productivity and excellent commodity returns grazing and finishing farm. How quickly these find interest when presented recently, and the
across most primary production sectors, rural new owners will send clear signals to the market. speed with which they find new owners will
property market activity in Waikato during set the tone for the market in the coming
through recent months has been at a low Lower North Island months. In the sheep and beef sector buyer
level. Important environmental compliance Plenty of new listings came onto the spring rural numbers are tight, though good farms are
issues are expected to arise in the region property market through Taranaki, Wanganui, always sought after.
in the near future, impacting on farming Wairarapa, Manawatu and Horowhenua, covering
practices. Farmers are apprehensive about a range of farm sizes and land use types. Smaller Tasman
these and have prioritised meeting them sheep and beef properties were greeted Although spring and early summer listings of
ahead of paying attention to the property enthusiastically by purchasers while, as in other Tasman farms were scarce, those that came
market. Otherwise steady interest in larger regions, dairy farms were more difficult to transact, forward attracted plenty of attention. A 61
drystock farms remains thwarted due to with conventional financing proving problematic. hectare coastal finishing block at Best Island,
the absence of support from financiers. A 155 hectare East Taratahi irrigated grazing Richmond, a 215 hectare Upper Moutere
Although alternative lending options might property, just south of Masterton, sold at a good forestry and grazing block, and an 843 hectare
arise, they are not yet evident. While the level to a local purchaser in late November while Ward hill block all sold well prior to Christmas
region’s supply of farm listings exceeds the a 199 hectare flat to easy undulating Pohangina after mid-November listing. Prospects for sales
market’s enthusiasm level, it is still lower property 22 kilometres north east of Feilding, used in the new year remain firm. Any sheep and
Rural Property Pulse | Page 4
pggwre.co.nz
Regional Update
beef property on offer is attracting interest change hands during the summer. Elsewhere, likely in the region’s rural property market,
from neighbours. Earlier a 175 hectare dairy in a region where dairy dominates, suppliers of particularly around sheep and beef farms,
farm in Kohatu, Tapawera, 52 kilometres west Westland Milk Products’are gradually becoming where notable properties listed for spring
of Nelson, sold in late October to a corporate accustomed to the local processor having passed sale include several large Central Otago hill
agribusiness investor for conversion to a hop out of the co-operative model into the ownership country stations. Scaling up, scaling down
garden, reflecting considerable recent interest of an overseas purchaser. After a lengthy decision and succession planning are ongoing drivers
in hops within the tightly defined area where process, that sale was finally completed during the for vendors and purchasers. Having enjoyed
they are well established. As in other regions winter. Once the first full season payout is made good returns for the past couple of seasons,
demand is supported by strong pastoral under the new ownership regime, farmers are those approaching the end of their careers are
returns and underpinned by carbon farming likely to become more confident about the future now choosing to exit farming in a favourable
interest. and rural property market activity may resume. market, while land values are holding firm
Until that time, the supply of dairy farms offered and stock returns are high. At the same time
Canterbury for sale will continue to outweigh demand from there is a well populated bench of buyers,
Prospects for a large community irrigation prospective purchasers. A buyer’s market therefore mainly genuine farming families looking
scheme around Hawarden, North Canterbury, prevails on the West Coast with buyer inquiry just for additional land. At the lower end of the
became more likely in December, providing starting to kick in. market, forestry investors are active in Otago,
the market with greater certainty, which particularly paying attention to land located
should stimulate interest among purchasers Mid and South Canterbury conveniently to the port.
through summer and autumn. Notable Rural property activity in Mid and South
December sales included Birchdale, a 660 Canterbury has been brisk in recent months, Southland
hectare sheep and beef breeding and with listings receiving plenty of attention from An unseasonably cold, wet spring kept the
finishing property at Masons Flat, which motivated purchasers. As in other regions, the Southland rural property market in check. As
sold in excess of $1200 per stock unit; and sheep and beef sector has been at the forefront. elsewhere, uncertainty associated with carbon
Achray, a 418 hectare Rotherham farm, both Those who subdivided larger holdings are finding emissions, freshwater management plans and
transactions indicating the market’s good the market is responding well. With buyers most bank lending criteria also held farmers back.
appetite for North Canterbury sheep and likely looking to augment an existing property, With warmer weather finally arriving in late
beef breeding and finishing units with scale. rather than take over a fully functioning unit, a spring, a productive summer and excellent
Previously a 90 hectare irrigated dairy support 100 to 200 hectare parcel of land offers options to returns through most commodity classes are
and beef finishing block in the Waimakariri more potential buyers than a 500 hectare block, as indicated. Whether that will coax farmers back
District sold in August between $24,000 and well as a more manageable capital requirement. to the property market remains to be seen.
$26,000 per hectare. While interest in dairy Southland farmers looking to move north have By late spring buyer interest had built, with
is more limited, farm owners seem prepared featured in the local market, prompted by prominent listing Barnhill at Castlerock, a 1025
to ‘farm on’ given current strong milk values, hectare Lumsden breeding and finishing unit,
uncertainty around changing local environmental
even for those who might otherwise opt to selling to local buyers. Meanwhile, interest in
regulations and the accompanying land and water
sell if buyers were more forthcoming. a 728 hectare Tapanui fattening and cropping
plans. They appear to prefer districts with greater
certainty and a more mature market that better unit was strong. Those looking to expand
West Coast understands the new conditions. larger sheep and beef farms are particularly
A 688 hectare drystock property at Kotuku motivated to buy. After spring’s late arrival,
near Lake Brunner, finishing beef cattle and Otago good weather and attractive listings should
sheep, attracted considerable market interest Although spring was late arriving south of the see Southland’s rural property market build in
when listed for sale in the spring and may Waitaki River, plenty of summer activity appears intensity during the summer months.
Rural Property Pulse | Page 5
pggwre.co.nz
International economic factors strongest
influence on wool prices
After its annual hiatus through the winter, New Zealand’s fine wool selling season re-commenced in early spring, largely
mirroring the situation in Australia. Prices paid at Australian fine wool auctions have fluctuated in recent months, with
New Zealand values following on, though consistently remaining at the top end of those cycles.
Meanwhile prices for crossbred wools Climate influences, the degree of colour in the producing the world’s best wool.
remained steady through spring and early clip and growers will need to remain vigilant
Growers should therefore ensure that any
summer, at low historical levels. around their preparation in order to maximise
raddle marks are removed at shearing time.
the value of their wool.
Strong underlying demand for fine wool
On the positive side, there is more discussion
is driven by economic factors, largely One particular wool purity issue highlighted through global wool supply chains regarding
influenced by world financial markets, and recently is that growers must be aware of consumer views on the sustainability and
trade sanctions. Crossbred wool values are the problems that can be caused by the use biodegradable characteristics of wool and its
influenced by the same forces, albeit demand of sheep markers. Where sheep are marked future potential in the global fibre market. As
is considerably lower. for farm management purposes, such as to these issues become more prominent, New
Quantities of crossbred wool offered recently identify whether they are carrying singles or Zealand crossbred wool growers should gain
were relatively low through the period when twins, there is potential to detrimentally affect increasing financial benefit.
growers focused on lambing. As such positive scoured wool quality. If these marks are not
price movements were experienced at able to be washed out in the scouring process This report was prepared in consultation with
auction sales. Market response to crossbred it has significant financial implications to wool PGG Wrightson’s wool team.
wool in the coming months will depend growers, wool exporters and processors, as well
on the quantity and quality of wool offered. as compromising New Zealand’s reputation for
Good weather and high global demand set
growers up for a productive summer
Spring is always a busy time for growers. This late September, affecting stonefruit and pipfruit,
year that was certainly the case with pressure though it hit relatively early in the season and the
on to reach key milestones in continuing extent of the damage will become more apparent
developments ahead of the summer. closer to harvest.
These developments typically focus on In those regions where large scale vegetable
corporates diversifying beyond dairy and production is a key land use, including Pukekohe,
sheep and beef, adding horticulture to their Ohakune, Hawke’s Bay, Levin and Canterbury, wet
portfolios. In most instances and in various weather delayed planting crops out. Similarly, cool
different districts that entails planting apples, South Island weather set the apple and grape
avocados or cherries to meet growing export seasons back seven to ten days behind where
demand. Increased cherry production in they usually are.
Central Otago, for example, mainly from Regular spring chores include controls and
land previously used for grazing, is projected monitoring for pests and fungicide, along
to double the national crop of export with fertigation to keep growing crops in
cherries, which are finding ready markets optimum health.
throughout Asia.
Growers can look forward to a busy summer, with
In several districts, especially in the South the positive market outlook providing plenty of
Island, growers were confronted with encouragement and excellent prospects for a
frost pressure during the spring. As wind profitable season.
machines are part of most new horticulture
developments in the higher risk localities,
This report was prepared in consultation with
frost fighting to ensure crops are protected
PGG Wrightson’s Fruitfed Supplies, a leading
was generally easily managed.
horticultural service and supply business servicing
A severe hailstorm struck Hawke’s Bay in New Zealand’s major horticultural regions.
Rural Property Pulse | Page 6
pggwre.co.nz
Good climatic conditions and positive outlook for
commodities boost livestock markets
In the livestock market for sheep and beef, recent activity has been buoyant with animals in top condition and
commanding top dollar.
In the sheep and beef sector this spring’s This global situation is helping drive demand for encouragement for this season’s payout.
livestock market has been buoyant, with lamb, mutton and beef. Unexpectedly strong interest is already
animals in top condition and commanding showing in forward contracts on herds for May
In December focus will shift to the store cattle
top dollar. and June delivery. Farmers seeking quality need
market. Where previously farmers were taking a
to be in early to secure the best. Export heifers
After a climatically slow start to the spring, selective approach around beef types with the
exiting the country for China in high numbers
growing conditions have been excellent, a improved outlook, the net is wider with beef and may have repercussions later in the season
positive scenario reinforced by the situation dairy cross cattle all well sought after. resulting in low stock availability, justifying early
in China, where African swine fever has had a
Clearance rates through the dairy bull season were action. Additionally, dairy beef is a big focus
devastating impact on pork production.
satisfactory, particularly with extra bulls to sell, approaching the summer. Sales of 100 kilogram
Pigs are being culled in China at a huge rate, though values were down slightly on last year. weaners started well in the North Island, with
and the country is estimated to be facing a ten early indications that trading levels will track last
million ton shortage of protein by the end of Ram sales commenced in the North Island at year’s sales, boosted by positive beef schedules.
2019. That will have important ramifications for the end of October, continuing into the new year.
Early sales reflected confidence, with farmers PGG Wrightson’s ‘Go’ credit products, funding
New Zealand red meat production, which is
prepared to re-invest in animal quality, ensuring client livestock trading, continue to be well
well placed to partially fill the gap. received, easing cashflow by enabling sheep
they can supply product that meets consumer
Some informed industry estimates suggest and beef farmers to buy, finish and onsell
requirements.
that it will take Chinese pork producers 15 to stock before paying for them. Meanwhile, the
20 years to fully recover from the epidemic. Early sales included Waimai Romney, Te Akau, company’s wholly-owned new Bidr business,
That presents the New Zealand red meat where all 80 rams offered were sold, averaging providing those trading livestock with access
industry with a chance to become permanently $2890, with the top lot selling for $5400; Nikau to a virtual nationwide saleyard, is also building
established in China at a more substantial level Coopworth, Waikato rams averaged $2059 for a momentum and achieving positive results
than previously, offering an alternative protein top price of $4000; at Grassendale, Wairarapa bringing buyers and sellers together.
that Chinese consumers are likely to acquire a Beltex Suftex cross rams achieved a total
taste for. clearance at an average of $1613 per head; and at This report was prepared in consultation with
the Mana Romney, Gladstone on-farm sale 30 out PGG Wrightson’s Livestock team.
Vietnam, the Philippines, North and South
of 32 rams sold, averaging $1550 with the top ram
Korea, Laos, Myanmar and Cambodia are also
fetching $3000.
struggling to contain the disease, which has
reportedly reduced China’s pig herd by almost While the dairy livestock scene is less buoyant,
half in the last 12 months. positive global dairy trade trends provide
Rural Property Pulse | Page 7
A closer look...
Sheep and beef a buyer can be located. In Southland spring’s late Two significant bare land sales occurred in recent
In several districts market interest in sheep arrival held the market back. A 156 hectare farm months, west of Hastings and near Havelock
and beef farms is firm, driven by two or at Lochiel, south of Winton, converted to dairy to North, both valued between $132,000 and
three seasons of buoyant returns for red a very high standard in 2015 was offered to the $134,000 per hectare. Significant quantities of
meat, which have left farmers increasingly market in November, generating strong buyer apples have been planted in Hawke’s Bay in the
motivated to buy and sell property. However, interest. While farm incomes are strong limited past few months, including on land previously
where stronger links to the dairy scene financing options are likely to continue to inhibit used for viticulture. Land planted in cherries is
prevail, farmers are apprehensive about the the market. also expanding in both Hawke’s Bay and Central
impact of compliance issues. Several banks Otago. In the latter region smaller bare blocks are
seem to have tightened their rural lending Viticulture changing hands at around $100,000 per hectare,
criteria, largely relating to dairy, though also After a limited quantity of viticulture property while larger blocks, including of 100 hectares
apparently being applied to pastoral farm changed hands privately during the spring, a or more, are valued at $50,000 to $60,000 per
purchases. Wherever they are coming to 14 hectare sauvignon blanc vineyard on the hectare. Some cherry development in Central
the market, the most productive sheep and outskirts of Blenheim sold to a local family in Otago is being undertaken in partnership with
beef farms in favoured locations and with December slightly above $250,000 per hectare. existing owners.
well-maintained infrastructure are attracting Several other strong recent sales underline the
plenty of interest from enthusiastic buyers. continued demand for viticulture properties. Cropping
For many in the sheep and beef sector, Wine companies and existing private growers Production and the markets indicate that
particularly those reaching an age where are the prospective purchasers, seeking to buy cropping farmers can look forward to a more
retirement beckons, this summer and strategically. Water for irrigation and contours financially rewarding season this year than last.
autumn shapes as an ideal time to capitalise suited to vines at sufficient scale add value to any However, as in other sectors, traditional lenders
on their careers and offer land to the market. suitable Marlborough bare land left undeveloped. have tightened their criteria for financing rural
Given the diminishing land resource, and suitable transactions. Any farmers seeking to expand their
North Island dairy grazing properties with potential for viticulture property holdings will therefore need to find
Recent sales of North Island dairy farms development now almost fully utilised, pricing capital beyond the conventional sources. Smaller
have been minimal. Despite a favourable expectations have reduced slightly in the past 18 spray irrigated Mid Canterbury arable properties
payout forecast, compliance hurdles and months, though remain fundamentally strong. changed hands in the spring at between
farming’s low standing in public perception Through the rest of the summer the underlying $41,000 and $45,000 per hectare, a softening
are eroding farmer confidence. Although conditions for a sellers’ market for viticulture
of the market. Summer transactions in South
those with strong intent will find other ways property are unlikely to change.
Canterbury also look likely to result in reduced
to fund purchases, conventionally financing
values compared to recent years. Several large
dairy farm transactions has become a Kiwifruit
Mid Canterbury farms will go to the market in the
substantial challenge. Alternative land uses Aside from a minimal number of private sales,
summer. Subdividing each of these into three
are motivating some buyers, for example few kiwifruit orchards were offered to the market
or four smaller blocks will help facilitate sales,
a 110 hectare Te Kawa dairy farm sold in early in spring, which is normal for this time of
particularly in terms of raising finance, though
October for conversion to milking goats. year. Those listed in late spring received strong
also in relation to nitrate management.
Three of the more notable spring listings enquiry from existing orchardists motivated to
were a 203 hectare property five kilometres expand their holdings. Previously, benchmark
Forestry
west of Whakatane incorporating many values for transactions of the best performing
Good enquiry was evident during the spring for
future-focused features; a 127 hectare orchards in the most sought after Bay of Plenty
established mature or semi-mature forests. Several
Waharoa, Matamata farm that produced districts equated to $1.25 million per canopy
purchases of forests, or land for trees, received
271,000 kilograms of milk solids last year; and hectare planted in gold kiwifruit and $600,000 per
Overseas Investment Office approval through the
a 246 hectare Arapuni farm producing around canopy hectare for land producing the standard
winter, as documented in the news media.
264,000 kilograms of milk solids from 520 green variety. As summer proceeds, once
A 729 hectare forest in Clinton, South Otago,
cows. How these sell as the summer proceeds pollination is completed and the fruit has set on
well placed relative to ports and with 328 hectares
will provide clear signals to the market. the vines, market activity in orchard transactions
planted in 1993 and 1994, listed for sale in late
may increase, in which case these values may be
South Island dairy tested once again. Based on recent trends and spring, commanding plenty of interest. Export
In spite of positive trends in the global dairy assuming the quantity of properties offered for prices have dropped in recent months, with
trade and prospects for a $7 plus payout, sale remains strictly limited, there is little chance A grade logs now fetching between $115 and
which should improve the financial position of these prices coming down. $120 per ton, a 20 per cent reduction. However,
of farmers by the end of the season, demand the five year average is steady and the only likely
for dairy farms in Canterbury and Southland Pipfruit and stonefruit impact of the weaker market will be short term,
during the spring was lacklustre. Premium With few spring listings and keen demand as farmers with small mature plantations grown
Canterbury farms with good water that might for Hawke’s Bay land suitable for pipfruit and for superannuation purposes hold off on
have fetched $56,000 to $58,000 per hectare stonefruit, anyone selling will attract plenty of harvesting for another season or two. Demand
two years ago are now valued between attention. Several larger pipfruit interests are through the summer is likely to remain steady.
$46,000 and $51,000 per hectare, assuming looking for land, either to purchase or lease.
www.pggwre.co.nzYou can also read
