Welcome to Bayleys Rural Insight, your go-to guide for regular, informative commentary on key matters affecting those living and working in rural New Zealand.
With New Zealand’s economic fundamentals and commodity markets ever changing, we take a look at how this can impact the rural sector as well as the effect it may have on rural and lifestyle property.
Every fortnight a new Rural Insight will be released focusing on the different sectors of the rural market including dairy, sheep and beef, viticulture, and horticulture. In addition, we will investigate issues relevant to those pursuing their lifestyle property dream.
Leasing provides appealing pathway to land stewardship.
Leasing the farm out rather than selling it is proving a new approach to the old challenges of succession, income generation, and farm business growth, providing a level of flexibility for parties on both sides of the leasing fence.
Automation and human capital to play key role in sector’s growth.
New Zealand’s primary sector has continued to thrive in the past year, surfing off a wave of global demand for quality, safe healthy food products.
Options open up with Commission.
The release of the Climate Change Commission’s first set of recommendations for New Zealand has been met with relatively widespread acceptance across the entire community, with a recognition that all sectors need to play a part if this country is to meet its obligations under the Paris Accord.
Buoyant year for primary sector comes with caveats.
New Zealand growers and farmers have kicked off the year with plenty of upbeat news, with strong commodity prices, relatively robust supply lines and continuing strong consumer demand for quality food putting farmers in a positive frame of mind as the new year starts.
Wine’s appeal goes beyond romantic vineyard.
As the global pandemic swept through countries, shuttering food businesses regardless of whether they were white tablecloth high-end restaurants or roadside diners, New Zealand’s wine industry nervously started revising industry budgets.
Primary sector deserves a happy Christmas.
The primary sector has reason to celebrate as the calendar year draws to a close, after a challenging year that has pushed farmers, growers, processors’ and exporters’ abilities with pandemic challenges and climatic demands.
China’s growth outshines world’s gloom.
As the rest of the world wrestles with surging COVID-19 cases and plummeting economic growth data, China appears to be functioning in a different universe, at least over the second half of 2020.
Hope rural sector’s value remains recognised.
The election result has delivered a historic and resounding result, for the first time under New Zealand’s MMP system a government has a mandate to rule outright without having to seek a coalition partner.
Lifestyle blocks link town and country.
Despite the level of uncertainty Covid-19 has injected into everyday life globally, the New Zealand property market continues to remain strong and no more so than for rural lifestyle blocks.
New Zealand trial to crunch regen numbers.
Regenerative agriculture has become something of a buzzword in farming and food circles over the past year, and the subject of well populated field days, chat groups and media coverage.
Bright prospects for avocados.
Kiwifruit has long deserved its poll position as New Zealand’s premier earning horticultural crop, generating almost 50 percent of the six billion dollars earned by the fruit and produce sector last year.
Equity partnership a pathway to land ownership.
The New Zealand primary sector faces a dilemma over funding for future expansion which has prompted Bayleys rural real estate to take the initiative on helping to solve it. An upcoming seminar aims to introduce young farmers who are keen to get a piece of their own property to investors who have the capital to help back them.
Hopes high for wool’s future.
The latest wool working group report brings some hope for reform, innovation and, most importantly, boosted returns for a sector that has languished for almost a generation of farmers as the smallest part of their income stream.
Horticultural prospects positive.
The horticultural sector has continued to surge ahead despite the turmoil and uncertainty Covid-19 has inflicted at a local and international level. Latest figures from Horticulture New Zealand highlight this success with the sector generating a record-breaking $6.2 billion of exports for the year ended June. This is up $700 million from last year and the sector’s earnings now account for 10 percent of the country’s export merchandise earnings.
Break away and support local.
With international travel off the table for the foreseeable future due to closed borders, Kiwis are being encouraged to see more of New Zealand and to redirect their leisure dollars into local economies.
Dairy prospects positive heading into new season.
Moving day in early June always brings a buzz of excitement through dairy farming regions as families move to new jobs and positions, taking up the next exciting opportunity in the industry they have committed much time, capital and energy to.
Primary sector a Covid-19 star in the economy.
The primary sector’s response to the Covid-19 crisis over the past weeks has set it up well for the uncertain future ahead, and offers some opportunities that will be welcome by many in those sectors that have been hit hard by the global pandemic.
Farm Environment awards recognise value of New Zealand farmers.
The Covid-19 lockdown has prompted organisers of New Zealand’s most prestigious farm awards to take an innovative approach when recognising this year’s top farmers.
Getting on with the “new normal”.
The past weeks have delivered unprecedented change to New Zealanders’ way of life, at home and in business, and looks likely to extend well beyond the exceptional four-week lockdown period.
Kiwifruit hold golden glow.
With the new season’s SunGold kiwifruit licensing tender due to open next month, expectations are that orchardist interest in the 750ha area being made available will be at least as strong as last year.
Fire risk rising with summer heat.
This summer, farmers and rural land owners have experienced one of the driest, hottest periods ever, with pasture and feed supplies rapidly dwindling in the summer heat.
Surfing for Farmers.
The opportunity to get off the farm, learn to surf and have some fun has proven to be a simple but successful formula to relieve stress for a growing number of farmers around New Zealand.
Small blocks’ supplements an income option.
With summer’s heat starting to impact feed supplies in many parts of the country many farmers are eyeing available feed supplies, and options for sourcing more should things run tight heading into autumn.
Solar power provides off-grid options.
Looking to the sky for energy solutions is no longer something for daydreamers as more rural landowners consider solar energy as a means for powering their farms and lifestyle blocks.
Big effort to deliver sustainable premium for NZ food.
Much has been made about New Zealand’s status as “100% Pure” and how much, or how little, needs to be done to keep that claim valid.
Horticultural investment an appealing pastoral option.
Typically when investors think about horticulture as an option they will cast their eyes up to Northland for avocados, across to Bay of Plenty for kiwifruit, and possibly to Hawke’s Bay for apple orchards.
Botanicals offer scent of success.
The climate that has made some parts of New Zealand so good for growing grass also brings opportunities to develop some niche, high-value crops that are helping to establish new industries alongside traditional pastoral sectors.
Farm to plate innovation adds value.
Throughout provincial New Zealand there is a food revolution taking place boosting employment opportunities, adding value to raw products and growing this country’s reputation as a South Pacific food bowl.
Water plans bring tight deadlines.
Farmers and industry leaders have been scrambling to try and get submissions in on the government’s water quality package, and this will prove to be not the only tight timeline underscoring the proposals.
Camping with a twist is a lifestyle winner.
As the daily life becomes busier, people are seeking out holidays where they can disconnect. Rural property owners are realising the benefits of opening up their land to guests through innovative glamping opportunities.
Labour issues in booming sector.
The surge in production has been welcomed by rural New Zealand. However, labour shortages starting to threaten the sector’s ability to continue its productivity.
Award entrants provide pathway to sustainability.
With more environmental constraints being placed around farming, the timing has never been better to showcase those setting new standards with practices to keep New Zealand farming the most sustainable in the world.
Dry stock farm profit drives demand.
A recent report analysing dry stock farm production and profitability has provided some insights for farmers and consultants alike on what makes the top farms tick, and what will help average farms become better in an environment of positive returns this season.
Wool options open up with research.
Thanks to work by the likes of AgResearch and innovative corporates the applications for coarse wool in the future look likely to extend well beyond simply employing it as a fibre for clothing, carpet or coverings.
Farm biosecurity helps lock out disease risk.
The outbreak of M.bovis largely in South Island dairy farms has bought the issue of farm biosecurity into the spotlight, challenging how farmers deal with stock movements on and off their farms, and even the movement of people coming on and off the farm property.
Lessons from Europe in NZ’s food-farm opportunities.
Countries like Italy and France are renowned for the way they have interwoven their history, farming and food into an attractive, romantic cultural heritage that millions of people from around the world come to savour and enjoy.
Pastoral sector poised to cope with gas limits.
As the government’s rules on managing green-house gases becomes clearer, New Zealand’s pastoral sector is well positioned to handle the changes that the rules will bring to it.
Farm environment awards open networks for farmers.
The growth in numbers of farmers entering the Ballance Farm Environment Awards is testimony to increasing awareness the environment sits firmly at front and centre for the primary sector, with this year’s winners exhibiting some class leading skills.
Forestry partnership provides growth opportunities.
Carbon storage, government development incentives and a global appetite for timber all mean forestry is a more appealing investment option than ever, but also one that can be complicated by those same factors.
Sunny side up for rural sector’s real value.
The primary sector’s contribution to New Zealand’s wealth creation has continued to remain strong as global demand for quality, high end food products keeps growing.
People’s role recognised in sustainable journeys.
The Ballance Farm Environment Awards have long been a highlight in the rural calendar, with award winners doing much to showcase the best this country has to offer in farming talent that recognises and respects the environment they depend upon.
New Zealand food repositions as China grows wealthier.
When New Zealand signed its free trade agreement (FTA) with China in 2008 exports to that country totalled $2.1 billion and by year end September last year were worth $16.6 billion, almost twice what is sold to the United States.
Farm lending options needed.
Pressure is on farmers who have significant farm debt to start paying it down, while those seeking debt to purchase a new farm or expand their existing one are facing greater budget scrutiny and equity requirements from their bankers.
Tropical fruit options bring exciting opportunities.
Bananas, so often associated with warm tropical climates on the equator may prove to be another cropping opportunity for enterprising horticulturalists from Northland to Gisborne.
Orchard development brings options.
The horticultural sector has touched on golden times over the past five years as the value of the sector’s exports has surged by over 40% in five short years to 2017 - prospects are that growth will continue for years yet as the world clamours for quality fresh produce.
Organics gets big tick for standards.
The New Zealand organic farming sector has just received a valuable boost thanks to the recent agreement to set a national standard for the sector. While it comes several years after most of the rest of the world, a leading organic supporter says the move is better late than never.
Organic demand opens exciting land use options
With two out of three New Zealanders now buying organic products during their shopping trips, prospects for food producers in the sector are looking ever more promising.
Early start a good start for succession planning
Aging farmers without farm succession plans to help them step into well earned, enjoyable retirements are among the greatest concerns for realtors, financiers and farm advisors in New Zealand.
Rural property opportunities aplenty at Fieldays
A buoyant rural property market has provided an optimistic backdrop for Bayleys’ National Fieldays exhibit this year.
Green and Gold all go for kiwifruit sector
New crop varieties, good consumer demand and sound marketing have put kiwifruit back on the map for prospective investors and orchard owners wanting to participate in the sector’s success.
New Zealand remains popular stop for foreign land investment
Foreign interest in New Zealand farms, orchards and vineyards is helping maintain strong values in land across the primary sector, despite some tough times for some in agriculture.