Economists are feeling ''more confident'' that farm prices and sales activity are improving.
For the three months to May, the Real Estate Institute of New Zealand farm price index was 0.9% higher than the corresponding period last year, while farm sales also firmed on the same basis, up 10% compared with a year ago.
Farm prices, per hectare, rose 20% compared with a year ago while anecdotal evidence aligned with the improving farm prices and sales activity, Westpac economist Nathan Penny said.
There were 512 farm sales in the three months to May, compared with 467 in the corresponding period last year, and the highest number of farm sales for May since 2008.
Sales in the dairy sector for the season concluded on a solid note with continued strong demand for good properties. The number of dairy sales for the year ending May was ''strongly ahead'' of the previous year and reflected an increasing degree of confidence within the dairy industry, REINZ rural market spokesman Brian Peacocke said.
Increasing confidence was also apparent in the drystock sector with ''healthy'' sales volumes of finishing and grazing properties, particularly in Canterbury, Otago and Southland, and Waikato, Taranaki and Manawatu-Wanganui, he said.
In Otago there were 50 farms sales in the three months to May, up from 41 in the corresponding period last year.
Mr Penny said farming confidence was more upbeat than in previous months. Drought concerns had eased, as generally autumn had been good and growing conditions had aided recovery.
High world dairy prices and Fonterra's $7 kg/ms opening forecast for the coming season had boosted farmer sentiment, at least in the dairy sector, while reports from the Fieldays at Mystery Creek suggested exhibitors had record sales, he said.
