Market Update: Arable & Support Blocks

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Canterbury | September 2020

Demand for arable property in Canterbury was steady throughout the end of 2019 and 2020 as demonstrated by the number of sales that have occurred.

Buyers are predominantly neighbouring or nearby farmers that are increasing their land holding. To date liquidity has existed more commonly for properties in the 100 to 250 hectare range with few buyers for larger properties due to the reduced availability of capital.

Recent transactions demonstrate that some demand exists from purchasers with the financial strength to buy larger properties that are strategic purchases for a particular reason.

The market remains focused on the core physical resources, which includes the quality of the soils, the cost of irrigation water and type of irrigation, as well as the quality of the farm infrastructure.

Purchasers expect a farm to be compliant with Land and Water Regional Plan rules and Farm Environment Plans to be completed. Evidence of nutrient loss reductions and modelling to show how this will be achieved or possible alternative land use options are also likely to be considered favourably.

The recently announced National Policy Statement for Freshwater Management 2020 is generating discussion in the market, although perhaps more so for sheep and beef farmers.

We believe Canterbury is ahead of other regions in understanding environmental regulation and compliance and what this means for a farming operation.

Being part of an irrigation scheme with assistance provided with environmental regulation and compliance is viewed positively by the market in our experience. This is particularly true in the lease market with strong enquiry and lease rates achieved.

If you require further information on any of the sales analysed or the lease market, please do not hesitate to contact our team.


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Market Update: Arable & Support Blocks

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Related Experts

Tim Banks

Associate Director

Christchurch (Rural Valuation)


Prior to joining Colliers, Tim had 25 years agribusiness banking experience in the North and South Island in relationship management, business development and senior leadership roles.

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With his wife he owns an irrigated, intensive stock and cropping property in North Canterbury.

The family property was leased prior to farming meaning Tim understands the lease market, has experience dealing with lessor and lessees and negotiating lease agreements.

Tim brings to the Colliers Rural Valuation and Advisory team agribusiness banking and practical farming experience, an understanding of irrigation and environmental compliance as well as a strong network of farmers and their advisors.

His focuses are all types of rural land valuation throughout the South Island and advisory work in the rural sector.
 

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Greg is an experienced registered valuer and leads our Canterbury rural valuation and property consultancy team in Christchurch.

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Georgia Marshall

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Georgia has recently completed her bachelor’s degree in Land and Property Management where she specialised in Rural Valuation and Agricultural Management at Lincoln University. Georgia joined the Christchurch Colliers team upon graduation in January 2020.

Having grown up in Marlborough, she completed work in our Blenheim office during her studies, assisting with the valuation of vineyards and sheep and beef systems. Georgia received two Education NZ Prime Ministers scholarships to China and Brazil in 2018 and 2019 where she developed a deeper understanding of agribusiness concepts and farming systems within New Zealand's largest export markets. Along with this, she studied at Chonnam National University in South Korea where she developed key skills in international trade and marketing.

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