This piece is in partnership with Bayleys Country – your rural and lifestyle property specialists.

Canterbury dairy land values are holding firm, and Ben Turner from Bayley’s Canterbury says conversion economics are the reason buyers are comfortable paying what they are.

Tier-one dairy farms in the region are transacting at around $70,000 per hectare, Turner says. New farms are costing an estimated $70,000 to $75,000 per hectare to complete with full infrastructure, and that figure has become the benchmark buyers use when assessing existing operations.

“That’s where people have seen value in an existing dairy farm with say 10 years or less of newer modern infrastructure, that’s where we’ve seen people quite prepared to pay more for that,” he says.

Arable blocks with pivot irrigation and a strong history of dairy support are trading in the late $40,000s to early $50,000s per hectare in prime locations. Once infrastructure costs are added, the pathway to $70,000 per hectare for a well-established dairy farm becomes clear.

Turner says scale is a consistent theme at the top end of the market.

“Scale dairy farms and scale conversions tend to be the more sought-after. 

“Your conversions are a lot cheaper per hectare, and if a lot of that infrastructure is already in place from the farming point of view and it’s just shed, housing, and effluent, then that lowers that cost.”

Turner says the majority of farm sales this year have been to family groups, with some investing $20 to $30 million in new properties without placing pressure on themselves.

“That just shows how mature we are as a market, and the scale of family groups and corporates.”

He says the role Bayleys plays goes well beyond putting properties on the market. Advising vendors to hold off rather than sell at the wrong time, helping families work through succession, and matching young couples with established operators is all part of their work.

“We have so many examples of couples we’ve put together from young couples matching up with an older couple, and them going on to purchase land or get into business together.”

Bayleys Canterbury also sponsors the Ballance Farm Environment Awards and the Dairy Women’s Network conference. He says those partnerships reflect a long-term view of the rural sector.

“We really enjoy those partnerships, and we get a lot out of it from our learning and the people we deal with. 

“It leads into business down the track, but it only leads into business if we are still seen to be doing the best possible job and giving the best advice.”

This is brought to you in partnership with Bayleys Country. To learn more about rural and lifestyle property opportunities, or to connect with a local expert, visit bayleys.co.nz/country

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