THE recent abolition of stamp duty, coupled with lower land values, means that now is a good time for farmers to deal with the headache of keeping the farm in the family and planning for their retirement, says Quotable Value New Zealand's principal consultant in Christchurch Ian Bunt . Despite low and stable inflation and interest rates, as well as a low New Zealand dollar for the six months ending December 1998, farm sales generally were down in both volume and price on the same period the year before. The bulk of farm sales are notified in the first half each year so interest in the June 1999 figures will be high for those wanting to gauge the continuing picture. Quotable Value New Zealand's quarterly figures show that the trend of both lower volume and average prices is continuing - at least at the moment. The farm market is currently quiet.
Buyers are cautious, highly selective and looking for signs of economic improvement in the industry.
There appears little evidence of that happening in the short term. Worst affected are the hill and high country, relying heavily on store stock and wool, especially fine wool. Those who can fatten stock are better off, as are the highly skilled or those on quality irrigated land with more options and opportunities. In town, confidence is returning to the urban property market as it feels the effect of more buoyancy in the rest of the economy. Outside the main centres Nelson fared the best.