The sale of a large south Waikato farm for $5.25 million last week suggests there is still confidence in farming, despite the recent decline in dairy prices, a real estate agent says.
The property is a 488-hectare converted forestry block at Lichfield, located between Putaruru and Tokoroa.
PGG Wrightson agent Richard Leach said of the five bidders, four were dairy farmers looking to buy the property as a support block or potential dairy conversion.
The winning bid was from a beef farmer who planned to develop the property into pasture to finish cattle.
Mr Leach said the bidders' appetite to push the price to that degree indicates the continued resilience of the dairy sector.
Dairy prices rose for the second consecutive time at Fonterra's global dairy trade auction overnight, following months of declines and a reduced forecast payout to farmers for the current season.