What happens to farm value when you drop stocking rate?

Some are worried that by producing less milk will devalue the farm.

Our experience says no.

Farm value is driven by its location, soil types, pasture performance and physical improvements.

Sure your production is a part reflection of these. But it also reflects different management styles. When it comes to selling a farm, we are not really selling a management system, but the asset that allows that system to be applied.

Increasing production by adding more feed does not increase farm value. That is a management issue, not a raw asset issue.

Neither does making a sensible decision to lower feed inputs and mothballing the mixer wagon make your farm worth less.

About Robert Dabb

Mobile 027 255 3992
Office 06 323 3363
Home 06 353 0298
Email: robertd@ruralandlifestylesales.com

Robert has been involved in the rural sector his whole working life. This includes as a Farm Consultant, specialising in dairy and a Regional Manager for Fonterra Co-operative Group from 2000 through to 2006 and has been in real estate since then. He holds a Bachelor of Agricultural Science degree from Massey University. With a wide network of contacts across rural industry, he is well positioned to professionally profile rural properties.