The Country 20/03/25: Peter Newbold talks to Jamie Mackay

We take our monthly look at the state of the rural market with the GM of PGG Wrightson Real Estate.

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Monthly here on the Country, we take a look at
the state of the rural real estate market with the
team from PGG Rights and the bloke running the show
as Peter Newbold. Peter renewed interest in farming as an investment.
I guess a lot of this is being driven off
the good returns for dairy farming.

Speaker 2 (00:18):
Oh yeah, Jamie. The dairy is I think the catalyst
and if you look back over time, it always has been.
So what happens the eras they are in good shape,
They then look at I guess, expanding their property portfolios,
which help set market prices, and that stimulates others. So
what we're seeing is through that they've been purchasing other properties,

(00:39):
which has stimulated that whole market. And so we're now
seeing a lot more activity in the sheep and beef
and even down through to those smaller, you know, sub
hundred sub ten hectea properties. But definitely, I think that's
the catalyst, and you know, things look good if you
look out over the next twelve to eighty months, looks

(01:00):
pretty solid. Yeah.

Speaker 1 (01:01):
Indeed, that RABO Farmer Confidence survey we talked about on
yesterday's show, driven by sheep and Beef farmers. So I'm
putting strong wall to one side again because it is
the troubled child if you want, of the primary sector.
But sheep and beef as stand alone as positive at
the moment.

Speaker 2 (01:20):
Yeah, look, it's really good and I think you're seeing
getting good pricing for their sheep and cattle. And again
that's if you look out, that's looking good going right
through into next season. So that's given them confidence. I
think you've seen inflation under control. You're seeing more activities
and sales taking place and interesting other weeks at the

(01:41):
Wannaker Show, which is one of the best events in town,
and speaking to farmers and clients there, you generally get
a feeling that things are a lot better and they
can see light at the end of the tunnel. And
so yeah, I think we're going to see more activity
and that'll help because everyone will be in a better

(02:02):
space too financially.

Speaker 1 (02:03):
Let's have a look at horticulture. I would have thought
Kiwi fruit would be a good bet at the moment.

Speaker 2 (02:09):
Yeah, look it is. You know, you've often asked me
that question and it's been sort of it a just
sort of meandering along. But talking to my team, we
definitely feel that there's a new cycle coming through and
we're starting to see, you know, really over the last
month or so, some renewed activity and interest in that,

(02:30):
and I think we're going to see that market move forward,
like I guess what's happened in dairy and sheep and
beef over the coming season. So that's really good because
it's been in a bit of a bit of a
holding block at the moment, but definitely there's signs and
we're seeing activity. So that's again, you know, you look
at that sheet and beef, dairy, hought, everything's looking pretty

(02:51):
good at the moment.

Speaker 1 (02:53):
Prices haven't really gone up or as far as I
can see, they haven't gone up across the board. Our
land prices have been pretty st just more realism in
the market now.

Speaker 2 (03:03):
Yeah, I think what's happening is, you know, those that
are purchasing are stuit and so we're seeing actually I
think properties you know, meeting the market as such. So
we're seeing a lot of I guess call it stock
being cleaned er, but yeah, we're not seeing a lot
of increases there. Of course, there's the odd property that
comes to market which is one of those unique price

(03:25):
places and they may get a premium, but in general terms,
we're seeing not a lot of movement there. The only
thing that sometimes does affect that if it's going to trees,
and then you'll see there's often a premium paid there.
But in general terms, to answer your question, no, I
think values are staying fairly fairly stable at this point

(03:46):
in time.

Speaker 1 (03:46):
Well, let's finish by addressing the elephant in the room.
And you've mentioned it, trees, namely pine trees being planted
on good arable and grazing country. It's still happening, Peter Newbold.

Speaker 2 (03:58):
Yeah, look at it, and I think it needs to
be managed better. And I know that coming up towards
I think it's the end of the year, the rules
change in, you know, classes of land which will come in,
and I think that's a good thing. I still you know,
there's a place for trees, but we don't want trees
on good, good country which produces good stock. So I

(04:21):
think there needs to be a balance there and that's
look like, that is looking like what is going to
take place, And I think that's good for everybody, to
be brutally honest, But that's my opinion. Not everyone will
agree with me.

Speaker 1 (04:33):
There well, there's plenty of places to plant pine trees,
but north facing good grazing country or arable farmland, no
blanket planting. No, that's just it's not my opinion. I'm
steadfast on that one. Anyhow. Some people will disagree with
the pair of us. But it's good to catch up
here on a monthly basis, Peter Newbold, and good to
see the rural market looking positive.

Speaker 2 (04:55):
Yeah, thanks Jamie. And look at is. I think it's
it's just it's going to help the whole of New Zealand.
And if if rule continues, the word is so, I
think that's just fantastic.