Tier one sheep and beef properties in the Hawke’s Bay are drawing strong buyer interest on the back of a $12 lamb schedule, beef approaching $10 a kilogram and a high dairy payout, says Tony Rasmussen, rural real estate specialist for Bayleys Hawke’s Bay.

“The market is probably hot on those really good properties,” he says.

“Banks have had big repays and they will be itching to lend some of that money out again, that’s for sure.”

Rasmussen says the flat land picture is more complicated. The departure of McCain’s and rising fuel costs have added pressure, though he sees opportunity for buyers prepared to approach things differently.

“It’s quality dirt and very good water consents in many cases; I think there may be some reversion from viticulture and process cropping into more livestock, both bull and beef finishing.”

He says tightening lamb supply could follow that shift, as summer grazing land that previously carried crops absorbs more stock through the finishing chain.

Lifestyle blocks are moving steadily.

“That market is always going to be key around Hawke’s Bay, there’s a lot of lifestyle property here, and it’s a great place to live.”

Equity partnerships are emerging as a way to connect capital-holding landowners with the next generation of farmers, with several already formed across the region.

“I think there’s a real future in that, which is not totally corporate farming.

“It’s a bit of both, and it’s keeping the young people on the land.”

CountryWide CONNECT with Andy Thompson & Sarah Perriam-Lampp is our daily rural show livestreamed from 11am-1pm. Visit country-wide.co.nz on how to watch/listen or download the CountryWide CONNECT mobile app, available on Apple iOS and Android.