PHOTO: GRANT MATTHEW/STUFF – Dairy farm sale prices have fallen 18 per cent in the past year.
A higher forecast dairy payout hasn’t been enough to halt falling dairy farm prices.
Data from the Real Estate Institute of NZ (REINZ) showed an 18 per cent slump in the median price per hectare paid for dairy farms in the past 12 months.
REINZ rural spokesman Brian Peacocke said although the milk price for the current season was better than last year, there were other factors at play.
Fonterra has set a forecast farmgate milk price of $6.75 per kilogram of milksolids for the year to September 2019, 25c/kgMS lower than the previous forecast but still high historically.
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READ MORE VIA STUFF