Farm sales plummet in July - dairy sales down nearly 80pc

Farm sales have ground to a near halt as the slide in the all-important dairy payout has forced both banks and farm buyers onto the sidelines.

Nationwide farm sales slumped to 52 in July from 80 in June and 154 in July 2008, while dairy farm sales crashed 78 per cent in July to 5 from 23 in July of both 2007 and 2008.

Total July farm sales were 70 per cent below the average July month for the previous four years. This compared to June sales being 60 per cent below the previous four years' average and March sales being 62 per cent below their average.

The average drop in nationwide farm sales between the June and July months for the previous 6 years was 10.8 per cent, but it was 37.5 per cent this year.

The Real Estate Institute of New Zealand (REINZ) releases farm sales figures for three month periods. Their figures show 229 farms sold in the three months to July from 285 in the three months to June and 601 in the July period a year ago.

To read the full NZ Herald article click here

Posted: 18 Aug 2009

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