The Country 19/09/24: Peter Newbold talks to Jamie Mackay

How much is your farm worth? We take our monthly look at the state of the rural market with the GM of PGG Wrightson Real Estate. 

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Episode Transcript

Speaker 1 (00:00):
Monthly here on the country, we tell you how much
your farm's worth. Let's ask an expert in the field,
because he's outstanding in a field today just Western christ Church,
Peter and Newbolden before we talk about the value of farms.
You're doing good work with the IHC. This morning. It
caused near and there to not only my heart but
also PGG Rights.

Speaker 2 (00:21):
Since Yeah, good afternoon, Jimmy. Yeah, it's a treat We're
out at a night Tahoo dairy farm and we've got
a large number of the ITC community out with us
today and so we were welcomed on to the Nahou
property and the community did a kapahaka which was a
lot of fun. And now we're taking them out onto

(00:41):
a dairy farm to get them to experience that and
we'll feed a few carves and just a great day out.
And as you know, you know, these special people deserve
a treat out and that's what they're going to get.
And so it's just going to be a fantastic day
out here.

Speaker 1 (00:56):
And congratulations to you and your company, PGG Rights and
for being such long standing supporters of the IHC carf
and Rural Scheme. I tip my hat to you. Look, Okay,
so we're getting some positive economic news, even though our
GDP dropped this morning. But in terms of the world,
we've seen the Federal Reserve have a big interest rate cut.
I think we're on the way up. We're certainly hit

(01:18):
the bottom and are trending upwards. Are we seeing that
reflected in the price or the volume of farms being sold?

Speaker 2 (01:26):
Yes, we are. I think every little bit of positive
things that take place. You know, if you look what
happened with the Fed overnight, that stimulates and helps and
changes sentiment. I think you'd like to think we're going
to see some more drops interest rate drops in New Zealand.
That will only help. But definitely we're seeing some late
springing listings come to the market. There are more active buyers,

(01:51):
and you know, there's just a different feeling out there
at the moment. So look, as I've said before, it's
not going to boom, but I think we're going to
see more activity. But again, you know, we've often talked
about it, but you know, you've got a market your
property realistically from a price perspective, and I think there's
buyers out there for those properties.

Speaker 1 (02:08):
I jokingly suggest that to you during the commercial break
that your phone might have been running hot with Southland
sheep farmers wanting to sell their farm after the weather
they've had during lambing over the past couple of weeks.
But on a more serious vein, are there any buyers
out there at the moment for sheep farms?

Speaker 2 (02:25):
Yes there are, and look there's not huge numbers, but
I think if you look at a sheep and beef
property which is in a good location, infrastructure is good,
and it's priced correctly, then there's buyers out there. But
if you're not going to price your farm where the
next person can get a return on it, then it's

(02:46):
not going to happen. So yes, there are buyers, and
I think the other thing that's interest is over the
last three or four weeks we have seen more or
fresh players come to the market looking at property. And
if you look at it from we were we've come
to we've passed through the bottom of the market, so
it's on the I think it's on the up again,
and you know, that's a great time to purchase.

Speaker 1 (03:08):
I'm hearing the corporates are now back in the game
when it comes to buying dairy farms. Is that a
good or a bad thing.

Speaker 2 (03:14):
Oh, I think it's a good thing. The challenge we've
got in the dairy space at the moment is, yes,
these buyers out there, and we have some dairy farms
for sale, but I just wonder if we've got enough now.
I'm not trying to overhype the market, but that's what
I'm seeing at the moment. And when you look at
what's being forecast there in the dairy world, it's looking

(03:35):
really positive, which is fantastic. What about horticulture, Yeah, horticulture.
I was actually looking at that today. It's probably it's
hard to get a take on where that's going. It's
probably been the quietest it's been a number of years.
But I think we will see signs in the spring.
Will we see a lot of it?

Speaker 1 (03:55):
No.

Speaker 2 (03:55):
The only thing I could probably add is we've seen
some larger properties transact in recent times, but we haven't
seen those volumes that took place like eighteen months twenty
four months ago. But look, that will change. I think
the markets settled and the values are where they should be.
Arable farming, yeah, that's probably the highlight out. They're not

(04:21):
a lot of arable farms transact and there's never a
lot that come to the market, but there is demand
for them. And if you look at what's taking place
over the last twelve months or what's coming up, I
think we're going to see good activity there. There won't
be a lot of numbers, but I think the values
will be strong and interesting. Like you know, people have

(04:42):
to move on with their lives, whether it's succession or
you know, retirements or whatever. We're going to see a
few of those properties come to the market shortly and
I think they will they will get good values for them.

Speaker 1 (04:54):
You're based on the beautiful Wakatipo basin, but you're in
christ Church today or Canterbury House, Canterbury looking.

Speaker 2 (05:01):
Yeah, it's not looking too bad. You know, it's been
a bit cold over the last few days. You know,
they've had a little bit of rain. Let's hope the
sun comes out and we get what would I say,
regular rainfall, and let's hope we all have a good spring.
And as you mentioned South before, let's hope they are
you know, there haven't been too many losses with that
cold weather because as you know, a lot of them

(05:22):
are in the height of the landing season at the moment.

Speaker 1 (05:25):
Peter and Newbold, a GM of PGG rights in real estate.
Thanks for your time. As always, we'll talk again next
month and I reckon farms will be worth more in
a month's time as well. Thanks for all you do
for the IAC CARF and rural scheme and farmers. If
you're listening, it's very easy to donate. You can donate
the real thing or virtually. It's a great cause and
as Peter said, you're giving people a wonderful opportunity. Thanks

(05:47):
for your time, Peter

Speaker 2 (05:49):
Yeah, thanks, Jomi, good afternoon, and we'll speak soon.