Year-on-year farm sales are down 10% at 1727, while sales for the three months to August are down almost 5%, according to data released yesterday by the Real Estate Institute of New Zealand.
REINZ's rural spokesman, Brian Peacocke, said in Otago and Southland the harder climatic and financial conditions were making an impact, but there had been some sales of grazing, beef and dairy-support properties, with prices holding at previous levels.
Although not reflected specifically in this month's data, the predicament of the dairy sector and the impending effects of the El Nino weather pattern in northern and eastern regions are a growing concern.
Mr Peacocke said ''caution was the dominant factor'' within the rural sector, particularly in the dairy industry where prudent operators were trimming costs wherever practicable.
''Reports indicate a reduction in dairy cow numbers with heavy culling of poorer performing and/or temperamental cows and heifers,'' he said in a statement yesterday.
New Zealand all-farm sales were down from 407 in August last year to 387, Otago sales declined from 35 to 29 while Southland fell from 30 to 19.
For the three months to August, there were 21 dairy sales, compared with 26 in the previous corresponding period, with per-hectare prices down from $43,125 a year ago to $26,906.
However, this was not a reflection of a pricing trend in dairying, but a distortion arising from the smaller number of farm sales, Mr Peacocke said.
''Spring will be the time when trends emerge,'' he said.
A small reduction in overall sales volumes for the three months ending August, from 433 to 387, confirmed farmers were focusing on the annual peak workload period, he said.
''While winter conditions in many areas have been wetter and colder than in recent seasons, most regions have coped well,'' Mr Peacocke said.
''Of concern, and causing nervousness throughout the northern and eastern regions of the country, is the prediction of an El Nino over the summer that would be most unwelcome,'' he said.
Farm sales
Percentage share of 387 sales in the three months to August
Grazing: 45.2%, 175 farms
Finishing: 17.8%, 69 farms
Horticulture: 16.5%, 64 farms
Arable: 10.1%, 39 farms
Dairy: 5.5%, 21 farms
Forestry + specials: 4.9%, 12 + 6 farms
Source: REINZ
