October 21, 2025 • 7 mins
David Frame of Craigs Investment Partners looks at farm sales and the flow-on regarding investment.
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Speaker 1 (00:01):
The Muster financial segment brought to you by Craig's Investment
Partners Gore. This information is general in nature and is
not financial advice. Craig's Investment Partners Limited Financial Advice provided
disclosure statement can be found at CRAIGSIP dot com slash tcs.
Speaker 2 (00:19):
David Frame joins us this afternoon from Craig's Investment Partners.
Speaker 3 (00:23):
It's going to call you Craig then, but it is David.
You work for Craig's IP.
Speaker 4 (00:27):
Good afternoon, Good afternoon, Andy. I get that a lot.
Speaker 5 (00:29):
I get David Craig and Craig Daniel, I get all
sorts of names.
Speaker 2 (00:33):
Tell me Craig David not a bad singer from the
early two thousand.
Speaker 4 (00:36):
Fantastic singer. Yeah, yeah, so we'll take that one.
Speaker 3 (00:38):
But you don't look like them.
Speaker 4 (00:40):
Ah, you haven't heard me sing.
Speaker 2 (00:42):
Well, I'm not judging your singing at all, and I'm
not going to judge your ability around accounting and around
figures as well finances.
Speaker 3 (00:49):
That's what Craig's OP does.
Speaker 2 (00:51):
Well, we're trying to figure out this GDT auction last night,
but unfortunately it seems to have been a victim of
what happened around the zeltage with Amazon from the other day.
Speaker 5 (01:00):
Yeah, we both had a good look this morning. Can't
find the data for it. The Amazon outage was quite widespread,
so it obviously affected those guys as well. I don't
know if the auction went through or if it didn't.
We definitely can't see the results of it.
Speaker 3 (01:15):
Right, oh, David.
Speaker 2 (01:16):
A subject that's pretty relevant for a lot of farmers
at the moment is they've come to the realization that
they no longer want to be on the farm. Their
siblings don't want to be involved, so they're thinking, well,
perhaps it's time to get out of the industry, and
spring traditionally is the best time to do it. Although
arguably the weather isn't playing ball at the moment, it
(01:36):
will come right eventually, I suppose.
Speaker 1 (01:39):
Yeah.
Speaker 4 (01:39):
Yeah.
Speaker 5 (01:40):
Generally we see a lot of farms come on the
market right now, don't we. And I think this year
could be quite a large season for it. We've got
a lot of people wanting to retire, some have to
for health reasons, and then on the other side, I
think there'll be quite a bit of interest from buyers
this year.
Speaker 2 (01:57):
When you say buyers is such you're talking about sheep
farmers to expand given the prices, although maybe not so
much when you think about the dairy sector side of things.
Speaker 5 (02:05):
Well, I've got clients in both the dairy and the
sheep and beef, and the large ones seem to have
deep pockets and be quite impressed that things are coming right.
We know it's all moves in different seasons, but I
know people who are eyeing up their neighbors block if
it did come on the market, and it'll be interesting
to apply prices land this season.
Speaker 2 (02:28):
So your dairy clients in particular, you look at the
season they've had though and smashing.
Speaker 3 (02:32):
Goals all over the place.
Speaker 2 (02:33):
Yes, the feed's a bit tight at the moment, but
you look at the price side of things, you're looking
at ten dollars the GDTs we talked to before. Not
sure what happened there, but still you're looking at ten
bucks in the interim, which is pretty done.
Speaker 3 (02:46):
Good loot it.
Speaker 5 (02:48):
Is, And those Fonterra shareholders are potentially getting a big
payout next year as well. So I think a lot
of people are thinking what do they do with their capital?
Do they expand? And we've seen that before with the
runoff blocksport. You know and over the last decade do
they invest off farm, which is something we can help
them with, or do they retire debt. So they've got
(03:11):
some large decisions ahead of them, and so do the
farm sellers. There's a fair bit of capital that could
be released through selling farms, through the dairy payout, even
the sheep payout's pretty good this year, isn't it.
Speaker 4 (03:22):
The land price's great.
Speaker 3 (03:23):
No, it's looking good.
Speaker 2 (03:24):
And we talk about on farm inflation, which has been
a key driver of prices over the last few while.
The price of inflation, though, do you think that's going
to set itself back to equilibrium next year?
Speaker 3 (03:35):
Perhaps?
Speaker 4 (03:36):
I would hope.
Speaker 5 (03:37):
So it sounds like New Zealand's inflation's heading back up
a little bit towards three percent, but that's manageable. So
inflation it can be a killer, as we saw a
couple of years ago. But I think the economy's coming
right after COVID, and I think we're slowly grinding out
of a terrible recession as a country.
Speaker 2 (03:55):
How long do we blame COVID for things? I mean,
we look at the state of the national books. It's
not flash and let's be honest, it comes back to
that spending into the billions. But when can we start
looking at the president thinking we've just got to move
with the times.
Speaker 5 (04:09):
Well, when I talk about the economy two or three
years ago, that inflation, those high interest rates, that was
fueled directly from the government spending and the COVID period,
And as time goes on that the effects of that
will receive so we will have less influence on the economy.
What we need for our country really is to get
back on our own two feet, grow the economy, get positive,
(04:32):
start spending again.
Speaker 2 (04:34):
And the New Zealand dollar as well. It's dropped quite
a bit recently, especially against the quid against the UK pound.
I'll bring it up shortly, but it's still pretty unstable.
Speaker 5 (04:44):
I suppose it is, which is unusual because for the
last few years a lot of economists have said that
the US dollar would drop. The US dollar actually looks
pretty strong, their economy looks pretty good, the European economy
and even.
Speaker 4 (04:59):
The UK looks okay.
Speaker 5 (05:01):
We seem to be the lag art in that regard,
and hence why our interest rate is falling and why
our dollar is falling against our relative trading partners as.
Speaker 4 (05:10):
Well, which is good for exporters, I must add.
Speaker 2 (05:13):
Is that a concern the way the dollars just so
I don't know just swings and ebbs and flows the
way it does, or is that just affecting New Zealand's trade.
Speaker 5 (05:21):
It's part of our trade and it actually helps us.
So if we're exporting offshore and our economy suffering through
interrast rates or low growth, then the lower dollar should
help get more dollars back for our exports. So it
should be like a natural shock absorber of swings in
the market.
Speaker 2 (05:40):
But back to the selling of farms anyway, David, Look,
you're advised to anybody who's looking at what to do
with a bit of money, if they've got it saved
up and then thinking well what do we do? You know,
if you're a seller, you're going to have something to
look at for investment, you know, looking at your portfolio
going forward, or if you're a bias, certain things to
keep in the back of your mind.
Speaker 5 (05:58):
Right, Yes, well, i'd say approach your professionals early. We're
in a good position where we can provide initial advice
free of charge, so people can come and have a yarn.
We quite often see farm sellers in particular who put
the farm on the market, work through the season, it
ends up selling, and then they've got a clearing sale,
(06:19):
they have to move house and suddenly they've got a
world of work to do and they don't always have
a plan, which is quite sad. So you know, if
they came in early, they can have a chat. We
can go out to the farm or and have a
chat if they're too busy to come into town, and
then we could give them an option to consider and
there's no cost to that, and then they can run
(06:39):
that through with their accountant or their loved ones and
come up with a plan before the farm sells.
Speaker 4 (06:44):
Because I know.
Speaker 5 (06:45):
That it's quite a major event to sell a farm
move off farm.
Speaker 4 (06:50):
It tugs at the heartstrings.
Speaker 5 (06:52):
You're not necessarily going to enjoy it, and a home
for your money is probably the last thing you're thinking
of is even walking out the door, but it's probably
one of the most important things for the next ten
or twenty years.
Speaker 2 (07:07):
So if people want to get in touch with the
team at Craig's Investment Partners, the best.
Speaker 5 (07:10):
Way just come into our office at one twenty Main
Street and Gore, or find us online at craigsip dot com.
Speaker 3 (07:18):
Good on you, David, always good to catch up.
Speaker 2 (07:20):
Thanks Andy, David Frame of Craig's investment partners here and Gore,
you're listening to the muster up next with Derry and
z Ronica Rusfeed
The Muster financial segment brought to you by Craig's Investment
Partners Gore. This information is general in nature and is
not financial advice. Craig's Investment Partners Limited Financial Advice provided
disclosure statement can be found at CRAIGSIP dot com slash tcs.
Speaker 2 (00:19):
David Frame joins us this afternoon from Craig's Investment Partners.
Speaker 3 (00:23):
It's going to call you Craig then, but it is David.
You work for Craig's IP.
Speaker 4 (00:27):
Good afternoon, Good afternoon, Andy. I get that a lot.
Speaker 5 (00:29):
I get David Craig and Craig Daniel, I get all
sorts of names.
Speaker 2 (00:33):
Tell me Craig David not a bad singer from the
early two thousand.
Speaker 4 (00:36):
Fantastic singer. Yeah, yeah, so we'll take that one.
Speaker 3 (00:38):
But you don't look like them.
Speaker 4 (00:40):
Ah, you haven't heard me sing.
Speaker 2 (00:42):
Well, I'm not judging your singing at all, and I'm
not going to judge your ability around accounting and around
figures as well finances.
Speaker 3 (00:49):
That's what Craig's OP does.
Speaker 2 (00:51):
Well, we're trying to figure out this GDT auction last night,
but unfortunately it seems to have been a victim of
what happened around the zeltage with Amazon from the other day.
Speaker 5 (01:00):
Yeah, we both had a good look this morning. Can't
find the data for it. The Amazon outage was quite widespread,
so it obviously affected those guys as well. I don't
know if the auction went through or if it didn't.
We definitely can't see the results of it.
Speaker 3 (01:15):
Right, oh, David.
Speaker 2 (01:16):
A subject that's pretty relevant for a lot of farmers
at the moment is they've come to the realization that
they no longer want to be on the farm. Their
siblings don't want to be involved, so they're thinking, well,
perhaps it's time to get out of the industry, and
spring traditionally is the best time to do it. Although
arguably the weather isn't playing ball at the moment, it
(01:36):
will come right eventually, I suppose.
Speaker 1 (01:39):
Yeah.
Speaker 4 (01:39):
Yeah.
Speaker 5 (01:40):
Generally we see a lot of farms come on the
market right now, don't we. And I think this year
could be quite a large season for it. We've got
a lot of people wanting to retire, some have to
for health reasons, and then on the other side, I
think there'll be quite a bit of interest from buyers
this year.
Speaker 2 (01:57):
When you say buyers is such you're talking about sheep
farmers to expand given the prices, although maybe not so
much when you think about the dairy sector side of things.
Speaker 5 (02:05):
Well, I've got clients in both the dairy and the
sheep and beef, and the large ones seem to have
deep pockets and be quite impressed that things are coming right.
We know it's all moves in different seasons, but I
know people who are eyeing up their neighbors block if
it did come on the market, and it'll be interesting
to apply prices land this season.
Speaker 2 (02:28):
So your dairy clients in particular, you look at the
season they've had though and smashing.
Speaker 3 (02:32):
Goals all over the place.
Speaker 2 (02:33):
Yes, the feed's a bit tight at the moment, but
you look at the price side of things, you're looking
at ten dollars the GDTs we talked to before. Not
sure what happened there, but still you're looking at ten
bucks in the interim, which is pretty done.
Speaker 3 (02:46):
Good loot it.
Speaker 5 (02:48):
Is, And those Fonterra shareholders are potentially getting a big
payout next year as well. So I think a lot
of people are thinking what do they do with their capital?
Do they expand? And we've seen that before with the
runoff blocksport. You know and over the last decade do
they invest off farm, which is something we can help
them with, or do they retire debt. So they've got
(03:11):
some large decisions ahead of them, and so do the
farm sellers. There's a fair bit of capital that could
be released through selling farms, through the dairy payout, even
the sheep payout's pretty good this year, isn't it.
Speaker 4 (03:22):
The land price's great.
Speaker 3 (03:23):
No, it's looking good.
Speaker 2 (03:24):
And we talk about on farm inflation, which has been
a key driver of prices over the last few while.
The price of inflation, though, do you think that's going
to set itself back to equilibrium next year?
Speaker 3 (03:35):
Perhaps?
Speaker 4 (03:36):
I would hope.
Speaker 5 (03:37):
So it sounds like New Zealand's inflation's heading back up
a little bit towards three percent, but that's manageable. So
inflation it can be a killer, as we saw a
couple of years ago. But I think the economy's coming
right after COVID, and I think we're slowly grinding out
of a terrible recession as a country.
Speaker 2 (03:55):
How long do we blame COVID for things? I mean,
we look at the state of the national books. It's
not flash and let's be honest, it comes back to
that spending into the billions. But when can we start
looking at the president thinking we've just got to move
with the times.
Speaker 5 (04:09):
Well, when I talk about the economy two or three
years ago, that inflation, those high interest rates, that was
fueled directly from the government spending and the COVID period,
And as time goes on that the effects of that
will receive so we will have less influence on the economy.
What we need for our country really is to get
back on our own two feet, grow the economy, get positive,
(04:32):
start spending again.
Speaker 2 (04:34):
And the New Zealand dollar as well. It's dropped quite
a bit recently, especially against the quid against the UK pound.
I'll bring it up shortly, but it's still pretty unstable.
Speaker 5 (04:44):
I suppose it is, which is unusual because for the
last few years a lot of economists have said that
the US dollar would drop. The US dollar actually looks
pretty strong, their economy looks pretty good, the European economy
and even.
Speaker 4 (04:59):
The UK looks okay.
Speaker 5 (05:01):
We seem to be the lag art in that regard,
and hence why our interest rate is falling and why
our dollar is falling against our relative trading partners as.
Speaker 4 (05:10):
Well, which is good for exporters, I must add.
Speaker 2 (05:13):
Is that a concern the way the dollars just so
I don't know just swings and ebbs and flows the
way it does, or is that just affecting New Zealand's trade.
Speaker 5 (05:21):
It's part of our trade and it actually helps us.
So if we're exporting offshore and our economy suffering through
interrast rates or low growth, then the lower dollar should
help get more dollars back for our exports. So it
should be like a natural shock absorber of swings in
the market.
Speaker 2 (05:40):
But back to the selling of farms anyway, David, Look,
you're advised to anybody who's looking at what to do
with a bit of money, if they've got it saved
up and then thinking well what do we do? You know,
if you're a seller, you're going to have something to
look at for investment, you know, looking at your portfolio
going forward, or if you're a bias, certain things to
keep in the back of your mind.
Speaker 5 (05:58):
Right, Yes, well, i'd say approach your professionals early. We're
in a good position where we can provide initial advice
free of charge, so people can come and have a yarn.
We quite often see farm sellers in particular who put
the farm on the market, work through the season, it
ends up selling, and then they've got a clearing sale,
(06:19):
they have to move house and suddenly they've got a
world of work to do and they don't always have
a plan, which is quite sad. So you know, if
they came in early, they can have a chat. We
can go out to the farm or and have a
chat if they're too busy to come into town, and
then we could give them an option to consider and
there's no cost to that, and then they can run
(06:39):
that through with their accountant or their loved ones and
come up with a plan before the farm sells.
Speaker 4 (06:44):
Because I know.
Speaker 5 (06:45):
That it's quite a major event to sell a farm
move off farm.
Speaker 4 (06:50):
It tugs at the heartstrings.
Speaker 5 (06:52):
You're not necessarily going to enjoy it, and a home
for your money is probably the last thing you're thinking
of is even walking out the door, but it's probably
one of the most important things for the next ten
or twenty years.
Speaker 2 (07:07):
So if people want to get in touch with the
team at Craig's Investment Partners, the best.
Speaker 5 (07:10):
Way just come into our office at one twenty Main
Street and Gore, or find us online at craigsip dot com.
Speaker 3 (07:18):
Good on you, David, always good to catch up.
Speaker 2 (07:20):
Thanks Andy, David Frame of Craig's investment partners here and Gore,
you're listening to the muster up next with Derry and
z Ronica Rusfeed
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