The REINZ Dairy Farm Price Index fell 18.6% in the three months to October versus the same period of last year.
The Index adjusts for differences in farm size and location to show the trend across the country, but the number of dairy farms sold and their median price per hectare were also down.
According to the REINZ, 18 dairy farms were sold in the three months to October, compared with 23 in the same period of last year and 37 in the three months to October 2013.
The median sale price per hectare was $31,552 in the three months to October, down $11,747, or 27%, from $43,299 in the three months to October last year.
Other types of farming properties have generally fared better, with the REINZ All Farm Price Index down 5.9% in the three months to October compared to the same period of 2014.
Sales of horticultural properties were strong, with 68 selling in the three months to October at a median price of $171,482 per hectare, compared to 59 sales at a median price of $179,894 per hectare in the same three month period of last year.
And 153 grazing properties were sold at a median price of $19,253 per hectare in the three months to October, compared to 166 at a median price of $14,290 per hectare in the three months to October last year.
There was a sizable increase in sales of arable properties, with 35 selling in the three months to October compared to 29 in the same period last year, while the median sale price per hectare dropped sharply, almost halving from $68,514 in the three months to October last year to $36,110 in the three months to October this year.
REINZ rural spokesman Brian Peacocke said a notable feature of the market had been the increasing number of farms being marketed for sale in the greater Waikato region and speculation surrounding the values of such properties.
“That speculation gained some answers in the latter part of the month with good farms being offered by genuine vendors prepared to meet the market , selling at values fully firm on last season,” he said.
The REINZ said other features of the rural market included:
- Insufficient supply of properties to meet demand in Northland, where an easing of prices is anticipated.
- Strong demand in the Waikato with some exceptional prices being achieved for quality grazing/finishing/dairy support properties.
- A slow market in Taranaki affected by a cold, wet spring.
- Extraordinary strength in the Bay of Plenty kiwifruit market.
- Steady market conditions in the lower North Island.
- Mixed interest in dairy farms in Canterbury and inconsistent sales activity.
- A slower market in Southland with early sales indicating a drop in value of around 7%.
To read REINZ’s full market report all farm types and all regions, click on the following link: