Farm prices have continued to rise, despite the near halving of milk prices over the past year, according to Real Estate Institute of New Zealand data.
The institute's Dairy Farm Price Index rose by 6.9 per cent in the three months to April compared to the three months to March. Compared with March last year, dairy farm prices were up by 15.5 per cent, REINZ said.
This was despite Fonterra dropping its farmgate milk price forecast to $4.50 per kg of milksolids for this season, down from last season's record high of $8.40, because of sharp declines in the international traded price of wholemilk powder.
Farm prices in general were also higher - the REINZ All Farm Price Index rising by 1.9 per cent in the three months to April compared to the three months to March. Compared to April 2014, the index rose by 0.8 per cent.
"In contrast to the very topical discussions relating to the reduction in the dairy payout, beef prices remain strong, good properties continue to sell at values deemed fully firm, and large areas around the country are experiencing excellent autumn growing conditions," REINZ rural spokesman Brian Peacocke said.