Farm sales fall in September

The September quarter is the peak work load period for the majority of farmers.

Fewer farms were sold in New Zealand last month as farmers focused on getting through one of the busiest times of year, according to the Real Estate Institute of NZ.

Figures out from REINZ today show there were 342 farms sold in the three months ended September 2013, down from 369 sold in the previous three months.

Sales were up 27.1 per cent compared to the same period a year ago.

"The September quarter is the peak work load period for the majority of farmers and as a result farm sales for the period have been moderate", said REINZ spokesman Brian Peacocke.

"Prices for the reduced number of sales remain steady for dairy and grazing properties, with a slight easing in the median sale price for finishing properties. Sales volumes and prices of horticultural properties have remained constant over recent months."

The median price per hectare was $22,851, a lift of 5.4 per cent compared to August, the Rural Market Report showed.

The REINZ All Farm Price Index - which adjusts for differences in farm size, location and farming type - rose by 7.2 per cent compared to the three months to August, from 2,980.9 to 3,194.8.

Compared to September last year, the index rose by 17.9 per cent.

Of the regions, Bay of Plenty had the biggest jump in sales, followed by Waikato and Southland.

Three regions saw a drop in sales volume - Nelson, Canterbury and Gisborne.

Peacocke said demand for good dairy support properties remained particularly strong in the lower South Island.

Grazing properties accounted for the largest number of sales with a 39.8 per cent share.

Finishing properties accounted for 27.2 per cent, horticulture properties for 10.8 per cent and dairy properties for 8.2 per cent of all sales.

The median sales price per hectare for dairy farms was $34,912 and the median dairy farm size was 149 hectares.

The REINZ Dairy Farm Price Index - which adjusts for differences in farm size and location - rose by 0.4 per cent in the three months to September, from 1,776.1 to 1,782.5.