This highlights the reality that most New Zealand farmers are not especially concerned with the capital value of their land (other than as equity for borrowing), or by low returns relative to the capital tied up in their land. Farmer’s attitudes are influenced by the more immediate fact that in recent years, after an extended rural depression, farming operations have generally achieved strong cash flows and become significantly profitable.

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Rural land prices are of primary importance to any potential buyer and especially to rural bank managers, however lifestyle values (a loose term commonly used in New Zealand and the real estate industry, to recognize the monitory value of recreational and life quality aspects of rural property) which are commonly associated with rural properties of all sizes, are frequently a complicating factor.

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The value of an individual property is to a large extent determined by soil type, tree varieties, ages, condition, water and infrastructure; all being the factors which influence both production levels and crop values. Irrespective of these factors however, all things being equal, an orchard located within the Heretaunga plains between Hastings City and the coast line of Hawkes Bay (as an obvious example) is likely to be significantly more valuable than a similar property on the west side of Hastings, where the risk of hail storms and acute late spring frost are significantly higher.

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Hill country farmers in Hawkes Bay traditionally gear their farming operations around the possibility of a summer pasture growth deficit by being prepared, if necessary, to sell a proportion of their lambs or cattle as “store” stock i.e., sale for fattening on other properties, and by growing summer stock feed crops as part of a cycle of pasture renewal.

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