Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 220 more farm sales (+89.4%)
for the three months ended April 2021 than for the three months ended April 2020. Overall, there were 466 farm sales in
the three months ended April 2021, compared to 432 farm sales for the three months ended March 2021 (+7.9%), and 246
farm sales for the three months ended April 2020.
1,677 farms were sold in the year to April 2021, 45.1% more than were sold in the year to April 2020, with 120.0% more
Dairy farms, 84.1% more Dairy Support, 20.8% more Grazing farms, 54.4% more Finishing farms and 11.8% less Arable farms
sold over the same period.
The median price per hectare for all farms sold in the three months to April 2021 was $29,746 compared to $22,435
recorded for three months ended April 2020 (+32.6%). The median price per hectare increased 14.8% compared to March
2021.
The REINZ All Farm Price Index decreased 2.4% in the three months to April 2021 compared to the three months to March
2021. Compared to the three months ending April 2020 the REINZ All Farm Price Index rose 3.1%. The REINZ All Farm Price
Index adjusts for differences in farm size, location, and farming type, unlike the median price per hectare, which does
not adjust for these factors.
All 13 regions recorded an increase in the number of farm sales for the three months ended April 2021 compared to the
three months ended April 2020, with the most notable being Waikato (+61) and Northland (+27). Wellington recorded the
smallest increase in sales (+3). Compared to the three months ended March 2021, seven regions recorded an increase in
sales, the most notable being Waikato (+13) and both Otago and Southland (+7).
Brian Peacocke, Rural Spokesman, at REINZ says: “Sales figures for the 3 month period ending 30 April continue to
reflect the strength and resilience of the rural economy with the majority of categories registering significant
increases in volumes for the 12 month period just ended versus the preceding 12 month period.
“Improving product prices, particularly for the dairy and horticulture sectors are part of the story but of equal
significance is the fact that after several years of boardroom-induced restrictions, most banks have for the last six
months been coming back into the rural market.
“The mix of this support, backed up by a low interest rate regime, has assisted in a positive way, purchasing decisions
for those farmers with the necessary performance and equity credentials to expand their operations, and where the
opportunity has been available, to acquire additional land.
“Equally, such increased activity, which has applied to the pastoral, horticultural and forestry sectors, has allowed a
number of older landowners to either bring equity partners into their operations, or in many cases, to exit their
respective sectors altogether.
“COVID-19 continues to be an issue in some parts of the supply chain, particularly at the point of cargo discharge, but
the mix of careful planning and innovation has allowed most sectors to deal with such issues reasonably successfully.
“Regretfully however, some of the eastern regions of both the North and South Island have been impacted heavily by
drought conditions, and whilst many other regions have enjoyed excellent spring and autumn growing conditions, the
overall shortage of rain across the country has resulted in diminishing supplies of surface water as well as that in the
underground aquifer.
“Labour and compliance issues aside, water in all its components, quality and quantity, is one of the major issues
currently facing the rural sector, and for that matter, most of the urban centres throughout the country”, he concludes.Points of Interest around New Zealand include:Northland/Auckland - Solid results in the Northland dairy and grazing sectors, as well as ongoing activity in the dairy support, finishing
and horticultural sectors, with availability limiting the former and water supplies limiting the latter; the trend of
lesser quality land going to forestry continues, as does the expansion of the kiwifruit and avocado industries; a
distinct easing of activity across the board within the Auckland regionWaikato/Bay of Plenty/Rotorua/King Country - A continuation of good activity in the dairy and finishing sectors throughout the Waikato, with ongoing results in
the arable, dairy support and grazing categories, availability of properties and the later part of the season being the
limiting factors; reports of strong forestry activity on the southwestern side of the region; quieter in the Waitomo and
Taupo districts; lighter activity in the Bay of Plenty albeit very strong results on those few horticultural blocks
available; generally quiet in the Rotorua, Whakatane and Opotiki districtsGisborne/Hawke’s Bay - Reduced activity in Gisborne and medium to light results across dairy support, finishing, grazing and horticultural
properties in Hawke’s Bay where dry autumn conditions are an ongoing frustration for the farming communityTaranaki - a shortage of property has constrained activity but good inquiry and steady results for those few farms that did venture
onto the marketWanganui/Manawatu/Tararua - Multi-offer situations in much of the western districts were a reflection of a shortage of available property, but
concerns regarding water consents is constraining activity in the dairy support sector; consistent results in the steady
Tararua district where forestry interests continue to maintain a focus on the market; demand currently exceeds supply in
all categoriesWairarapa/Wellington - Minimal sales during the last month but dairy farmers are back in the market where the
opportunity arises in the Wairarapa; sheep and beef farmers have begun challenging forestry interests for land purchases
in the pastoral sectorNelson/Marlborough - Strong demand across the diverse range of land uses within the region with activity constrained by the shortage of
supply; solid results on those finishing, grazing, horticulture and forestry properties which were availableCanterbury/West Coast - Whilst the climate throughout the eastern districts has been severely dry, activity has nevertheless been solid across
the arable, dairy, dairy support, finishing and grazing sectors; bank support is evident for qualified purchasers with
multiple cash offers being made for a limited supply of property; the majority of the activity has centered around
Ashburton, Timaru, Mackenzie and Waimate districts; good activity and results on dairy units in particular on the West
CoastOtago - Increased interest stimulated by qualified bank involvement has resulted in a good run of sales of dairy, arable,
finishing and grazing properties throughout the region, albeit a shortage of listings has been a constraint; Waitaki,
Dunedin and Clutha districts have been the predominant beneficiaries of this activitySouthland - With the benefit of one of the best autumns for years, Southland has experienced a very good run of sales across the
region, with good results at increased prices for dairy units and strong activity on grazing properties in particular;
evidence of forestry interests being prepared to pay more for good land then some pastoral farmers are prepared to pay;
the increase in prices is being attributed in part to the shortage of supply across the province, but also to an
improving degree of confidence within the rural sector.
Grazing and Dairy farms accounted for the largest number of sales, both with a 25% share of all sales over the three
months to April 2021, Finishing farms accounted for 24%, and Horticulture accounted for 10% of all sales. These four
property types accounted for 85% of all sales during the three months ended April 2021.
Dairy Farms
For the three months ended April 2021, the median sales price per hectare for dairy farms was $32,035 (116 properties),
compared to $32,035 (104 properties) for the three months ended March 2021, and $29,783 (35 properties) for the three
months ended April 2020. The median price per hectare for dairy farms has increased 7.6% over the past 12 months. The
median dairy farm size for the three months ended April 2021 was 130 hectares.
On a price per kilo of milk solids basis the median sales price was $34.45 per kg of milk solids for the three months
ended April 2021, compared to $34.49 per kg of milk solids for the three months ended March 2021 (-0.1%), and $32.97 per
kg of milk solids for the three months ended April 2020 (+4.5%).
The REINZ Dairy Farm Price Index rose 1.2% in the three months to April 2021 compared to the three months to March 2021.
Compared to April 2020, the REINZ Dairy Farm Price Index rose 13.8%. The REINZ Dairy Farm Price Index adjusts for
differences in farm size and location compared to the median price per hectare, which does not adjust for these factors.
Finishing Farms
For the three months ended April 2021, the median sale price per hectare for finishing farms was $35,185 (111
properties), compared to $35,185 (109 properties) for the three months ended March 2021, and $29,046 (59 properties) for
the three months ended April 2020. The median price per hectare for finishing farms has increased 21.1% over the past 12
months. The median finishing farm size for the three months ended April 2021 was 38 hectares.
Grazing Farms
For the three months ended April 2021, the median sales price per hectare for grazing farms was $10,915 (116
properties), compared to $11,249 (124 properties) for the three months ended March 2021 and $9,102 (69 properties) for
the three months ended April 2020. The median price per hectare for grazing farms has increased 19.9% over the past 12
months. The median grazing farm size for the three months ended April 2021 was 143 hectares.
Horticulture Farms
For the three months ended April 2021, the median sales price per hectare for horticulture farms was $462,995 (48
properties), compared to $427,218 (42 properties) for the three months ended March 2021 and $214,942 (30 properties) for
the three months ended April 2020. The median price per hectare for horticulture farms has increased 115.4% over the
past 12 months. The median horticulture farm size for the three months ended April 2021 was six hectares.