[30 October/NZ Herald]

The Real Estate Institute of NZ has released figures that indicate the median price per hectare for dairy farms has fallen 18.3% over the last 12 months. Overall, the prices across all categories of agricultural land have fallen 7% on year on year. In commentary, REINZ said that the early spring farm market for all farms was subdued with 21 fewer sales than last year, with spokesperson, Brian Peacocke, suggesting that economic issues beyond the farm gate, both political and financial, are impacting on farm demand. The results of the REINZ survey are consistent with the expectations of Colliers International, who suggested that they expect dairy farm prices in Canterbury to fall due to limits on liquidity, the threat of Mycoplasma Bovis, the removal of international purchasers, the risk of further environmental regulation and the performance of Fonterra. Con Williams, head of Investment Research at MyFarm said that dairy farm prices were on a slow burn lower, suggesting that there are properties for sale that are not shifting that quickly with the removal of foreign investment has a significant impact on the number of purchasers available for large scale operations.