16 Aug 2013

Farm prices up

2:51 pm on 16 August 2013

The generally mild winter weather that has given farmers perfect conditions for calving and the start of lambing have had an impact on the rural property market as well.

The weather and rising milk prices have helped to push up the demand for all types of farms.

The latest Real Estate Institute figures show farm sales for the past three months jumped by almost a quarter, compared with the same period the previous year, with 82 more farms changing hands.

Prices for pastoral farms and have also edged up, in contrast to horticultural properties, where prices have fallen.

Real Estate Institute rural spokesperson Brian Peacock says supply and demand for farms is getting out of kilter, because the same factors driving up demand are making farmers less inclined to sell.

"This mixture of the weather and the fact that there's been an increase in the product prices, whether the Fonterra payout or the prospects for beef and lamb, they're all looking pretty reasonable. That's all adding up to the fact that there is just a very good strong environment currently."

Mr Peacocke says lifestyle block sales and prices are also up.