One of the larger real estate companies does not expect Fonterra's payout to dairy farmers to trickle-down to a flat rural property market.
Fonterra has confirmed a payout of $6.70 per kg of milk solids for the 2009/10 season.
After retentions, that means $6.37 for farmers, $1.20 higher than the previous year.
First National Group says rural property sales at their lowest in years, because tight lending criteria by banks are discouraging buyers.
General manager John Stewart says some farmers are resorting to joint-bids to purchase property.
He says groups are getting together for co-operative purchases and talking to their banks first.
Mr Stewart says "Queen Street farmers" are not much in evidence any more. He believes the rural property market will struggle for at least another year.