News Release 1 November, 2007
Dairy Impetus Boosts Farm Values
Values approaching $34,000 per hectare have been realised recently at auction for land suitable for dairy farming in
Canterbury, fueled by the buoyant dairy sector.
Yesterday PGG Wrightson sold a 166-hectare irrigated beef finishing farm near Burnham for $5.625 million, nearly $34,000
per hectare, said the company’s South Island real estate manager, Peter Crean.
Two weeks ago the company auctioned a 198-hectare non-irrigated sheep farm near Methven for $5.3 million to dairying
interests.
“These prices are very strong and are surpassing values previously achieved “ he said.
“Both auctions were attended by over 100 people, with most interest from prospective dairy farm owners and operators.
“The fully irrigated Burnham property will most likely be used as a dairy support block or conversion to full dairying,
while the Methven farm will probably be used as a support block.”
Recently PGG Wrightson sold a Southland dairy farm to a Waikato buyer for $29 million, believed to be a record for a
South Island transaction of its type.
Crean said demand is currently exceptional in Canterbury for dairy farm properties and those suitable for support or
conversion.
Ends