Spring Growth
The rain seems to continue to fall at the right times and some of my clients are telling me it’s one of the best springs for some time. All good, as store prices for lambs at the yards continue to exceed vendors expectations meaning our breeding and finishing farmers are in for another good year. Although a grass market might see some margins cut for both lamb and cattle trading farmers as they try to keep the phenomenal spring growth under control.
I can’t say that we are seeing this flow through to the land market yet with prices being offered still below vendor’s expectations. As stated before there is a real lack of larger scale listings on the market at present and this may have something to do with those thinking of selling wanting to enjoy the returns and growing conditions themselves for another year. I am also sensing that some buyers are not keen to borrow significant amounts to get that bit of land next door even though the Banks seem to have loosened their reins somewhat. Potential buyers seem more focused on catching up with some deferred maintenance and/or reducing their existing borrowings.
Another positive with these good returns is that those that may have been under some financial pressure to sell may now be in a position to “farm” their way out of it. The result being we won’t see a flood of properties come on the market that has often been rumoured in the past.
Paul Evans Manager – Rural and Lifestyle
