Lismore dairy farm sale sets industry benchmark

Lismore dairy farm sale sets industry benchmark

A substantial Mid Canterbury irrigated farm sold at auction this week has set a benchmark for local dairy land values, according to the auctioneer who sold the property.

Peter Crean of PGG Wrightson Real Estate says there was strong interest at Wednesday’s sale of the 208 hectare Lismore property, which reached $8.95 million under the hammer.

“This is the first big dairy farm to go to auction locally for some time, and plenty of professionals involved in the industry, including rural bankers, valuers and farm advisors, took an intense interest in the outcome.

“At more than $43,000 per hectare, which exceeded some people’s expectations, the sale price was justified by the quality of the farm itself, but also demonstrates the strength that the market still has, despite difficult recent times in rural property.

“It was a well attended sale with approximately 200 people present, an enthusiastic selling audience and one of the biggest turnouts at a local farm auction for several years.

“This is a well-located farm with good infrastructure and the vendor set a realistic reserve, which was comfortably exceeded in bidding. While a local buyer secured the sale, there was also serious competition from the Waikato, considerable interest in investment in the dairy industry and encouraging signs for anyone considering selling a dairy farm,” he said.

Listed by Robin Ford of PGG Wrightson, the Lismore farm produced in excess of 307,000 kg of milksolids last season from 700 cows. Pivot irrigated from the Mayfield Hinds scheme, supplemented by groundwater, the farm has a 54 rotary cowshed and a manager’s house plus other staff accommodation.

ENDS

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