Fewer dairy farms are hitting the market as the low milk payout has an impact, a rural valuer says.
Rural valuer Peter Loveridge, of Palmerston North-based company Blackmore Group, said because of the low payout, dairy farm sale prices were less than they were 12 months ago.
“As a starting point I’d say they were probably worth 10 per cent less. But with the low payout, we’re seeing no sales and there won’t be sales unless some are squeezed out by the banks.”
He said banks seemed keen to support dairy farmers through the low payout, but if there was a low milk price next season, some farmers will be forced out of the industry.
Source: Stuff
