Jamie Mackay from The Country recently had his monthly real estate update from PGG Wrightson.
Peter Newbold was unavailable but Peter Wylie, Real Estate Manager from the Waikato filled his boots ably.
Jamie wondered whether the wheels have fallen off carbon farming. He asked if there was the same level of forestry conversion for sheep and beef properties as there was six or twelve months ago? Peter reckoned there was still productive forestry enquiry and sales.
He said usually the flatter, easier land was passed on to locals in land swaps for steeper land suitable for forestry. Forestry and carbon farming have been underpinning the price of sheep and beef properties.
Jamie asked if it followed that the prices paid for sheep and beef farms were also falling. Peter confirmed this hasn't happened yet but it's early days.
Jamie turned to dairy and asked if anyone was up for buying a dairy farm these days. Peter says there hasn't been fantastic enthusiasm for dairy - he estimates they're about a third behind. The properties that were selling were very well located but second and third-tier farms had been hard to move, he said.
Jamie commented on land use changes in the Waikato, with kiwifruit edging its way in to the region. Peter agrees, saying it's particularly noticeable around Te Awamutu and Cambridge.
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