Rural Advocate May 2014

Page 1

RURAL

BROUGHT TO YOU BY THE NORTHERN ADVOCATE

WEDNESDAY, 21 May 2014

Northland One name covers it all

Machinery Rentals

Formerly Northland Machinery, now Powerfarming Northland

Whangarei 09 438 9163

Dargaville 09 439 3333

Wellsford 09 423 7736

“DIGGERS • DOZERS • ROLLERS“

Call 09 435 2828

Low prices beckon buyers Northland farms among the cheapest in the country

GOING, GOING: Bayleys auctioneer Gary Caldwell got the bidding for a 58.6ha Parua Bay farm off at $800,000 but had to take his jacket off to work it up to $1.2 million, which secured the property for first farm buyer Colin Logue of Tomarata.

PHOTO/JOHN STONE

By Mike Barrington Low-priced Northland dairy farms are luring buyers seeking bargains, according to Bayleys Real Estate, which claims to have sold more Northland dairy farms over the past 12 months than all other real estate companies in the region combined. First farm owners, large corporate farmers and Waikato cockies downsizing to release capital without reducing production are eager to own Northland dairy units selling for sums seen as cheap as in the south, says a Bayleys review of 2013/14 sales. Northland dairy farms were selling for the lowest prices in the country a year ago. Real Estate Institute of New Zealand (Reinz) figures show the median dairy farm sales price in the region for the three months to April 2013 was $15,395 a hectare. The next lowest regional price for the same period was West Coast on $20,530 a hectare. High fliers were Canterbury on $45,283, with Waikato and Bay of Plenty both around $40,500, and the national median was $34,819 a hectare. Little has changed since then.

Reinz noted strong first farm purchase activity in Northland during the first quarter this year, when the the median sales price per hectare for the 102 dairy farms averaging 125ha sold around the country was $34,474. Meanwhile, Bayleys says it has buyers looking at top-tier Northland dairy farms priced from $20,000 a hectare, including

some with high-producing soils which, by New Zealand standards, have been undervalued. A 58.6ha dairy farm at Parua Bay was sold for $1.2 million, or $20,477 a hectare, at a Bayleys auction in Whangarei on May 9. Bayleys’ salesman John Nelley said half a dozen sharemilkers from Waikato and Bay of Plenty either bid by telephone

or turned up on the day for the sale. The farm, owned by Ean Brown and Margaret Galland trading as KVC Farms, is milking 120 cows and is on target to produce 30,000kgMS this season. It has a three-bedroom house with a self-contained flat attached, a 12-a-side herringbone milking shed and other barns. Its capital value

was $1.16 million. Auctioneer Gary Caldwell took his jacket off to work the bidding up and briskly knocked the sale down to first farm buyer Colin Logue, 38, of Tomarata. He was working on the place at the weekend but does not officially take possession until June 1. Mr Logue said he had looked at farms further south and considered he had got good value for money at Parua Bay. Northland Federated Farmers dairy section chairman Ashley Cullen of Maungaturoto said low Northland dairy farm prices were good because they gave young farmers somewhere to start. ‘‘There’s a saying that if you can farm in Northland you can farm anywhere,’’ he said. A group of Canterbury farmers were investing in Ruawai, ‘‘buying up farms like it’s going out of fashion’’. Mr Cullen said the southerners had acquired five farms so far and were thought to be considering housing dairy herds in sheds. ‘‘They paid good money, so that should help push the price for Northland dairy farms up a bit,’’ he said.

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Bryant Tractors

38 Rewa Rewa Road, Whangarei 09 438 1319

Renton Tractors & Machinery

3 Clifford St, Kaikohe 09 401 0313

Northland Machinery

104 Jervois St, Dargaville 20 Port Albert Road, Wellsford 09 439 3333 09 423 7736

Terms and conditions apply – only white stocks last


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