A dryland dairy farm in South Canterbury has changed hands for nearly $13 million - equating to $22,000 per hectare.
The 587ha property at Sherwood, 20km north of Fairlie, was sold by PGG Wrightson agent Ward Humphrey.
He said the farm's low cost structure attracted interest from throughout Canterbury and North Otago, but eventually went to a local buyer.
''This farm carries a milking herd of approximately 850 mixed-age cows and has historically produced in the order of 400kg of milk solids per cow per annum,'' Mr Humphrey said.
''With average rainfall over the last 10 years of 974mm, which is spread evenly throughout the year, it sits in an area renowned for dryland dairy farming, and the fact that there is no need for irrigation makes it a particularly worthwhile proposition.
''Most of the milking platform was converted five years ago and the farm has a well-maintained 44-a-side herringbone dairy shed.
''Dryland dairy properties do not come on to the market often, although $22,000 per hectare land and buildings was a satisfactory price at the upper end of the vendor's expectations, which indicates that, in spite of recent milk payout forecasts, appetite for investment in the dairy sector remains strong,'' he said.