Horticulture puts pressure on farm prices

Some dairy farms are on the market for commercial horticulture and other horticultural activities.

This is the view of Brian Peacock, spokesman for the Institute of Real Estate. However, such land should have good soil, proper contour and sustainable water supply.

Peacock is a key water source and Northland’s new water plan will definitely encourage further horticulture development.

“In Wikato, we are seeing a surge in demand from the Gulf,” he said. Rural News. “Alternatively, some well-established fruit and vegetable gardeners in Waikato are expanding their operations to Kiwifrut, while Northland will be a mix of kiwifruit and avocado.”

Recently, Zespri announced that it would halve the number of kilowatt-hectares for SunGold this year, and Peacock believes that this could lead to higher prices for land in the area where kiifrut grows.

Last year the price was around $ 550,000 per hectare but this year it could reach $ 700,000.

Peacock considers milk conversion days too long.

There are several reasons for this, including the cost and difficulty of obtaining input permits, water supply and other environmental issues. People who want to change the land of the lower pastoralists find it difficult to get a permit – in terms of how local councils classify land use.

“It is easier to lower the land use category than to try to upgrade one,” he explains.

According to Peacock, good dairy farms in the main areas are being sold as dairy farms, and there is evidence of a change in land use in some fractional dairy areas. He said some dairy farms are returning to dairy farming. In some of the more backward, far-flung or inaccessible areas, there is a tendency for trees to move and merge into trees.

“Large farms continue to attract smaller neighbors and there are now very few small dairy farms left.”

Peacock says there is a high demand for good dairy farms and that this is often costing more than real dairy farms.

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