July 16, 2025 • 5 mins
We take our monthly look at the state of the rural market with the GM of PGG Wrightson Real Estate and find out that dairy farms have only increased in value by $2,000/ha over the past decade.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
How much is your farm worth monthly? Here on the country,
we tell you. Peter Nubold's the GM of PGG rights
in real estate. He also runs the livestock division. More
about that later, but Peter dairy farm values over the
past decade. In fact, if we go back to twenty fourteen,
dairy farms were worth on average thirty six thousand, seven
(00:21):
hundred dollars per hec there then now only and I
say only worth thirty eight seven hundred dollars. So you've
had a capital gain in eleven years of just two
thousand dollars per heck there.
Speaker 2 (00:36):
Yeh know, it's interesting when you look at the numbers, Jamie,
and so, yeah, that tells a story. I do think
this coming year we'll see a little bit of movement up.
How much I'm not sure, but there is definitely demand
out there. I think. The other interesting thing if you
go back to two fourteen, you know, you know, there
was four billion of rural sales and one and a
(00:56):
half of dairy and then everything dropped off the cliff
to where you know, two nineteen were about two point
six billion. But interesting, in this last year that's gone,
we were back up around two point nine and nearly
a billion and dairy. So there's definitely a trend there
heading up, and I actually think over the next twelve
(01:17):
months we'll see it move on beyond three billion and
head up maybe to where it was. So I think
there's a there's plenty of movement out there, and I
think it's good for the industry.
Speaker 1 (01:27):
The median price for rural land has fared a wee
bit better. This is across the board, obviously, just over
twenty thousand dollars per heck there in twenty fourteen. We
fast forward to last year. In fact, it's only ten years,
isn't it twenty twenty four that's twenty six two hundred,
so a bit more gain there. But I think the
(01:48):
TAKEO message out of all this is that farming or
farmers have got their head around the reason you buy
a farm. It's not for capital gain, it's for yield.
Speaker 2 (01:57):
You're correct there, and look, there are occasions where people
over the years have made some significant capital games. But
I think if you're coming into a farm today, really
you've got to look at the return and not what
it may be worth in five or six or whatever
year's time. So yeah, that's the key thing now people
are looking at yield, not capital games.
Speaker 1 (02:17):
Are you seeing genuine interest in terms of numbers for
dairy farm sales? That's part one of the question. And
then well, I keep my power dry a wee bit
on this one, but I want to talk about dairy conversions.
But let's go with the number of transactions.
Speaker 2 (02:32):
Yeah. Look, definitely there's been more interest. We've already got
things taking place in the winter, which is we haven't
seen for a number of years. There's a lot of
activity building for I think it'll be late winter. I
think a lot of properties will come onto the market
late winter early spring in all categories. But definitely there's
(02:53):
interest in dairy. The challenge will be will be enough
to meet the demand out there, But definitely it started earlier,
which is good. And I think even if you look
at the sheep and beef sector as well, again a
lot taking place there. And the other interesting thing We've
talked about it over the years, but definitely we're seeing
(03:14):
now succession and farmers retiring, etc. Coming into play. So
that's something we need to watch over the next six months.
Speaker 1 (03:23):
What about the conversions, I'm hearing all sorts of different
numbers up to thirty or forty having a crack, you're
suggesting the number might only be single digits.
Speaker 2 (03:33):
Yeah, there's a lot of pub talk out there in
that space. I think the fair thing at the moment,
there's a lot of I guess individuals and entities going
through the process and looking at it. But from what
I understand, it's not as simple as you think, and
there's a lot of cost involved. So I think the
numbers at the moment as I see it are sort
of that single digit Will it gain momentum, yes, but
(03:57):
to what number I'm just not really one hundred percent
sure at this point. And there'll be a number that
go through the process and may may not convert, but
users a feature to sell their properties in the future.
Speaker 1 (04:08):
It'll probably be a lot cheaper to buy an existing operation.
Speaker 2 (04:12):
Well, that was an interesting comment that was made to
me the other day. You know there's properties out there
where you know you can gain production, increase production, and
maybe that's a better option.
Speaker 1 (04:22):
Hey, your final word on horticulture. We know that Kiwi
fruit design are real high at the moment. Are we
seeing that come through?
Speaker 2 (04:29):
Yeah, just starting I was actually looking at some numbers
the other day. Definitely activity is grown, and I think
we'll see a lot of interest as we move into Christmas,
which is the time when activity takes place. So yes,
it's on the move. Will it get to those heady
days value wise, I'm not sure, but definitely values are
(04:50):
up and there's more demand.
Speaker 1 (04:52):
Yeah, two million dollars per canopy? Heck there. I think
one property went for That might have been a bit
of an inflated price, but that is truly for gold.
Speaker 2 (05:01):
Yeah, well that's right. And if you look at the
projections out in that industry, they look really strong, so
you know, probably when you look at it like that,
it's probably not a big deal.
Speaker 1 (05:10):
Mind Jet. The projections are also very good for dairy
and for red meat, So onwards it upwards. There you go.
How much your farm is worth this month? We'll catch
you next month.
Speaker 2 (05:18):
Yeah, thanks, Jemie, you have a good afternoon.
Speaker 1 (05:20):
Actually, just before I go, I did mention the fact
that you ran the livestock division. I just want to
get a plug in for the ic CARF and Rural Scheme,
which you and I are both involved with. Yeah, if
you want to be in with that, Peter, you just
need to talk to your local PGG Rights and stock
agents and they'll point you in the right direction. Thanks
for your support on that.
Speaker 2 (05:40):
Yeah, no problem with all, Jamie, and you know it's
a great cause and look we're fully behind it and
anything you can do out there to help us, we'd
be happy with.
How much is your farm worth monthly? Here on the country,
we tell you. Peter Nubold's the GM of PGG rights
in real estate. He also runs the livestock division. More
about that later, but Peter dairy farm values over the
past decade. In fact, if we go back to twenty fourteen,
dairy farms were worth on average thirty six thousand, seven
(00:21):
hundred dollars per hec there then now only and I
say only worth thirty eight seven hundred dollars. So you've
had a capital gain in eleven years of just two
thousand dollars per heck there.
Speaker 2 (00:36):
Yeh know, it's interesting when you look at the numbers, Jamie,
and so, yeah, that tells a story. I do think
this coming year we'll see a little bit of movement up.
How much I'm not sure, but there is definitely demand
out there. I think. The other interesting thing if you
go back to two fourteen, you know, you know, there
was four billion of rural sales and one and a
(00:56):
half of dairy and then everything dropped off the cliff
to where you know, two nineteen were about two point
six billion. But interesting, in this last year that's gone,
we were back up around two point nine and nearly
a billion and dairy. So there's definitely a trend there
heading up, and I actually think over the next twelve
(01:17):
months we'll see it move on beyond three billion and
head up maybe to where it was. So I think
there's a there's plenty of movement out there, and I
think it's good for the industry.
Speaker 1 (01:27):
The median price for rural land has fared a wee
bit better. This is across the board, obviously, just over
twenty thousand dollars per heck there in twenty fourteen. We
fast forward to last year. In fact, it's only ten years,
isn't it twenty twenty four that's twenty six two hundred,
so a bit more gain there. But I think the
(01:48):
TAKEO message out of all this is that farming or
farmers have got their head around the reason you buy
a farm. It's not for capital gain, it's for yield.
Speaker 2 (01:57):
You're correct there, and look, there are occasions where people
over the years have made some significant capital games. But
I think if you're coming into a farm today, really
you've got to look at the return and not what
it may be worth in five or six or whatever
year's time. So yeah, that's the key thing now people
are looking at yield, not capital games.
Speaker 1 (02:17):
Are you seeing genuine interest in terms of numbers for
dairy farm sales? That's part one of the question. And
then well, I keep my power dry a wee bit
on this one, but I want to talk about dairy conversions.
But let's go with the number of transactions.
Speaker 2 (02:32):
Yeah. Look, definitely there's been more interest. We've already got
things taking place in the winter, which is we haven't
seen for a number of years. There's a lot of
activity building for I think it'll be late winter. I
think a lot of properties will come onto the market
late winter early spring in all categories. But definitely there's
(02:53):
interest in dairy. The challenge will be will be enough
to meet the demand out there, But definitely it started earlier,
which is good. And I think even if you look
at the sheep and beef sector as well, again a
lot taking place there. And the other interesting thing We've
talked about it over the years, but definitely we're seeing
(03:14):
now succession and farmers retiring, etc. Coming into play. So
that's something we need to watch over the next six months.
Speaker 1 (03:23):
What about the conversions, I'm hearing all sorts of different
numbers up to thirty or forty having a crack, you're
suggesting the number might only be single digits.
Speaker 2 (03:33):
Yeah, there's a lot of pub talk out there in
that space. I think the fair thing at the moment,
there's a lot of I guess individuals and entities going
through the process and looking at it. But from what
I understand, it's not as simple as you think, and
there's a lot of cost involved. So I think the
numbers at the moment as I see it are sort
of that single digit Will it gain momentum, yes, but
(03:57):
to what number I'm just not really one hundred percent
sure at this point. And there'll be a number that
go through the process and may may not convert, but
users a feature to sell their properties in the future.
Speaker 1 (04:08):
It'll probably be a lot cheaper to buy an existing operation.
Speaker 2 (04:12):
Well, that was an interesting comment that was made to
me the other day. You know there's properties out there
where you know you can gain production, increase production, and
maybe that's a better option.
Speaker 1 (04:22):
Hey, your final word on horticulture. We know that Kiwi
fruit design are real high at the moment. Are we
seeing that come through?
Speaker 2 (04:29):
Yeah, just starting I was actually looking at some numbers
the other day. Definitely activity is grown, and I think
we'll see a lot of interest as we move into Christmas,
which is the time when activity takes place. So yes,
it's on the move. Will it get to those heady
days value wise, I'm not sure, but definitely values are
(04:50):
up and there's more demand.
Speaker 1 (04:52):
Yeah, two million dollars per canopy? Heck there. I think
one property went for That might have been a bit
of an inflated price, but that is truly for gold.
Speaker 2 (05:01):
Yeah, well that's right. And if you look at the
projections out in that industry, they look really strong, so
you know, probably when you look at it like that,
it's probably not a big deal.
Speaker 1 (05:10):
Mind Jet. The projections are also very good for dairy
and for red meat, So onwards it upwards. There you go.
How much your farm is worth this month? We'll catch
you next month.
Speaker 2 (05:18):
Yeah, thanks, Jemie, you have a good afternoon.
Speaker 1 (05:20):
Actually, just before I go, I did mention the fact
that you ran the livestock division. I just want to
get a plug in for the ic CARF and Rural Scheme,
which you and I are both involved with. Yeah, if
you want to be in with that, Peter, you just
need to talk to your local PGG Rights and stock
agents and they'll point you in the right direction. Thanks
for your support on that.
Speaker 2 (05:40):
Yeah, no problem with all, Jamie, and you know it's
a great cause and look we're fully behind it and
anything you can do out there to help us, we'd
be happy with.
Popular Podcasts
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.