Northland vendors hope mild spring will help with farm sale

Spring this year had been one of the best for some time with relatively mild conditions in most regions stimulating good growth and production in the pastoral, horticultural and vegetable growing sectors, according to REINZ rural spokesman Brian Peacocke. Photo / NZME

Thirty-four farms in Northland were sold for the three months ended October — 19 grazing farms, six finishing and two dairy farms, three forestry blocks, two arable and two horticulture properties.

Real Estate Institute of New Zealand (REINZ) data shows nationally 263 farms sold for the three months ended October 2018, compared with 250 for the three months ended September 2018 and 261 for the three months ended October 2017. Northland sales for October 2018 were five down on the same period last year.

REINZ rural spokesman Brian Peacocke said this spring had been one of the best for some time with relatively mild conditions in most regions stimulating good growth and production in the pastoral, horticultural and vegetable sectors.

"The balance to such benefits is that increased production can impact on prices and environmental pressures in some areas is a cause for concern for those reliant upon water consents and irrigation."

one roof

Points of interest which REINZ highlighted for Northland included very good sales activity on grazing and finishing properties with beef farm sales up to $30,000 a hectare.

There was also a strong inquiry for quality smaller properties in the region, good dairy farms were sought after but were in short supply and bidding was very slow for second tier farms. Both private and corporate interests showed strong interest in Northland land suitable for horticulture, market gardening and forestry.

The 19 Northland grazing farms sold for the three months to October 2018 had a median sales price of $10,540/ha, similar to September 2018 but down on the $11,034/ha median for October last year.

The median price for the 90 grazing farms averaging 98ha sold nationally for the three months to October 2018 was $11,335/ha, down from $11,882/ha a year earlier.

The six Northland finishing farms sold for the three months to October 2018 had a median sales price of $30,328/ha, substantially up on the region's September median of $21,722/ha and ahead of the $27,817/ha median for finishing farm sales at this time last year. The median price for the 77 finishing farms averaging 33ha sold nationally for the three months to October 2018 was $32,969/ha, up from $29,057/ha a year earlier.

The two Northland dairy farms sold for the three months to October 2018 had a median sales price of $16,727/ha, similar to September 2018 but ahead of the $14,143/ha median for sales last October.

The median price for the 11 dairy farms averaging 213ha sold nationally for the three months to October 2018 was $28,555/ha, compared to $40,012/ha for sales in the three months ended October 2017.

On a price per kilogram of milksolids basis the median sales price was $30.59kgMS for the three months ended October 2018, compared to $34.30kgMS a year earlier.

The REINZ Dairy Farm Price Index decreased 6.2 per cent in the three months to October 2018 compared to the three months to September 2018. Compared to October 2017, the REINZ Dairy Farm Price Index fell 16.6 per cent.

The three Northland forestry blocks sold for the three months to October 2018 had a median sales price of $30,328/ha, far ahead of the $10,379/ha median for September 2018 sales and $1100/ha prices in October last year. The 17 forestry blocks sold nationally for the three months to October 2018 had a median sales price of $7452/ha.

The two Northland horticultural properties sold for the three months to October 2018 had a median sales price of $231,432/ha, up from $193,517/ha in September 2018 but down from $451,632/ha for sales in October last year. The 49 horticulture properties sold nationally for the three months to October 2018 had a median sales price of $198,768/ha.

The two Northland arable farms sold for the three months to October 2018 had a median sales price of $26,459/ha. The 15 arable farms sold nationally in the same period made $35,922/ha.

Meanwhile, 175 Northland lifestyle blocks sold for the three months to October 2018 had a median sales price of $540,000.