Prime Southland dairy farm sells for $29.3 million

Prime Southland dairy farm sells for $29.3 million

A Southland dairy farm has sold for a record $29.3 million.

Stuart Cooper, general manager of PGG Wrightson Real Estate, which sold the 490 hectare property, said the price reflects strong recent demand for rural property in Southland.

“Prior to this sale, rural property values in Southland have already risen by 25 to 30 per cent since the start of the year, which is a remarkable performance, motivated largely by the record payout farmers will receive from Fonterra this year, and the strong projections that such a positive scenario will be maintained in coming seasons.

“The purchase price on this particular farm included plant and stock, worth in excess of $4 million. In addition, the sale was for immediate takeover, so the purchasers will capture a major proportion of this year’s record payout, resulting from inputs the vendor has already made.  

“Taking these factors into account, the value of the sale still equates to approximately $50,000 per hectare, which is significantly in excess of any other dairy farm sale we have been involved with.

“This sale is a record, but it illustrates an ongoing trend. Southland dairy farms were last season typically selling for between $25,000 and $35,000 per hectare. This is a relatively large farm situated on some of New Zealand’s best dairying soils, with the capacity to also diversify into horticulture. It has been developed to an exceptional standard and has a proven history of production. The farm has been bought by a couple who are successful business people, with well-established dairy farming interests in Waikato and Southland.

“Although it is a remarkable sale, the fundamentals of dairying at the moment, particularly in Southland, are such that the benchmark may not remain at this level for long,” he said.

The record-breaking farm, 8km from Edendale at Menzies Ferry, was converted to dairying approximately 15 years ago. With further land purchases the property has grown in size and with extensive improvements it is now running 1,400 cows, producing 550,000 kg milk solids last year. The property has a completely renovated six-bedroom homestead and four other dwellings, two fully automated 54 bale rotary cowsheds as well as a 30-a-side herringbone shed, and is currently wintering the cows on the farm. It also includes 30 hectares leased for growing tulips.

Brett and Susan Cullen are the purchasers of the property. Brett Cullen has been involved in the dairy industry for around 20 years. Previously based in Te Awamutu, the Cullens have owned rural property in Southland for the past 18 months and intend to relocate to Menzies Ferry.

Todd Anderson and Andrew Patterson were the PGG Wrightson Real Estate agents who handled the sale, which was by private treaty and went unconditional on 17 October.

 
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