Sheep and beef properties ‘the game in town’ this spring

Peter Newbold, General Manager Livestock & Real Estate for PGG Wrightson.

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Demand for rural property is lifting across most farming sectors, with sheep and beef farms expected to lead the market this spring, according to Peter Newbold, PGG Wrightson’s General Manager Livestock & Real Estate.

Newbold said there was renewed confidence throughout the rural sector.

“There’s renewed interest in all the sectors,” he told The Country’s Jamie Mackay.

“I think there’s good momentum and the rural community is in a good space, and I guess what’s happening overseas, you could argue, is a little bit more stable.”

Newbold said dairy farm sales were expected to remain steady despite recent pressure on farm margins from lower milk price forecasts and rising costs.

“I still think we’ll see continuity there in sales,” he said.

He also pointed to ongoing dairy conversions supporting demand.

However, Newbold said the sheep and beef sector appeared poised for the strongest spring growth.

He was particularly surprised by the level of activity in Otago and Southland.

“A lot of activity is taking place there, and then when you look at what’s coming up in the spring, I think it’ll all happen in early spring,” he said.

“I think sheep and beef are going to be the game in town this spring.”

Newbold said returns in both sheep and beef farming were encouraging confidence among farm owners.

“I think because there are good returns there, it puts people in a space where they can think about those other things which we’ve talked about previously, about bringing family into the farm or selling or succession.”

While some horticulture growers were facing challenges, Newbold said kiwifruit continued to perform strongly.

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“If you go back to October last year, that’s probably when it kicked back into gear, and we’ve seen an uplift in value since October up towards 20%.”

He said limited listings and ongoing demand could support further value growth.

“I think we’re going to see an upside in value.”

Meanwhile, with livestock, Newbold said uncertainty around El Niño conditions was prompting farmers to plan carefully for summer.

“A lot of people are probably looking ahead and thinking, ‘How do we manage our farm as we come into that summer period?’

“None of us really know what will happen, but if there is a drought, that will affect certain parts of our livestock business.”

For now, he said, farmers remained cautious but optimistic about the season ahead.

As momentum builds across the rural property market, taking the time to understand your options can help you make the most of the opportunities ahead.

PGG Wrightson Real Estate’s local agents are there to provide trusted advice and help you navigate your next move with confidence.

Connect with your local agent at pggwre.co.nz.