A dairy farm near Morrinsville is set to break farm price records when it is auctioned in March, with expectations that it could fetch $7 million.
The 157ha No 8 Rd Tatuanui dairy farm is a Tatua Co-operative dairy supplier and the biggest to come on the market for at least
two years.
Farmers keen to join the 132 farmer shareholders are expected to bid record prices for the property.
As well as five houses on four titles, a seven-year-old 36-a-side herringbone milking shed and new stables, the new owner will get 625,000 Tatua shares and a 186,000 milk solid equivalent quota.
Bayleys Real Estate agent Mike Fraser-Jones says the farm is a "money tree" and he expects nationwide interest in the sale.
Tatua paid its farmers $6.60/kg milk solids last season - $1.30 more than Fonterra - which means $100,000 more for the average Tatua farmer than Fonterra's 13,000 farmer shareholders.
No reserve has been set yet, but locals think it could go for as much as $7 million.
The farm is owned by Colin and Fiona Hicks, who bought it five years ago. They initially bought 106ha but two seasons ago added another 50ha.
"It was a big decision to sell it, but we've decided to move on," said Hicks. "I'll be sorry to leave it in some ways, but I miss the hills."
Last year a 178ha dairy farm at Karapiro topped national farm sales at $4.325 million. A 69.7ha farm on No 8 Rd - also a Tatua supplier - sold in December for $1.77 million and was paid for 66,694kg of milk solids last season.
- NZPA
