NZ Farm Price Trends

REINZ have recently updated their farm price index and dairy farm price index as graphed below. It shows the overall FPI steadily rising since 1996. Dairy farm prices, after a big surge in 207-2009, declined significantly on the back of the GF crisis. A brief flurry in 2015, and a slight decline in the last season sees the index pretty similar to where it was back in 2005-2006.

Last years payout and this years forecast for much the same are gradually rebuilding confidence in dairy. We expect well located properties with reliable soils and long-term consents will receive steady interest this season – but don’t expect much activity from outside investors or overseas buyers – buyers will be existing dairy farmers and sharemilkers who are in the best position to understand the industry and appropriately assess the opportunities and risks.

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