Episode 38 – Is now the time to buy farmland?
Springtime is said to be the best time of year to put your farm on the property market, and those across the real estate sector are feeling optimistic about the way the market is heading with rising milk payouts, and more interest from investors back into the dairy sector. After a tough couple of years, it looks like confidence and capital are building – so could it be a good time to look at buying land?
Guests include:
- Bruce Weir, General Manager of Country Banking, Rabobank
- Conrad Wilkshire, General Manager – Rural, Property Brokers
- Craig Bates, Otago/Southland Sales Manager, PGG Wrightson Real Estate
Hosts:
- Sheryl Haitana, Editor, Dairy Exporter
- Anne Lee, Deputy Editor, Dairy Exporter
Rabobanks General Manager of Country Banking Bruce Weir says in their latest Rural Confidence Survey 26% of farmers surveyed were looking to expand their farm business. He says at the moment they’re seeing confidence begin to grow after a tough couple of years, and are seeing a lot more diversification of farm systems, into the likes of solar, arable, and agritourism.
Rural General Manager for Property Brokers Conrad Wilkshire says that while dairy payouts have gone up, turnover of farm sales has gone down – with the lowest year in the past decade being 2019, when the Reserve Bank tightened up access to capital. He says the valuation of land at the moment is low, but that will change over time, and in the past twelve months they’ve had a higher number than usual of farmers buying their first dairy farms.
Craig Bates says they’ve been getting a steady number of people interested in buying their first dairy farm, or diversifying their current farm with dairy, as well property being sold by those already in the industry. He’s optimistic about the spring season with loan interest rates coming down, and interest from investors increasing.
