Terrybank sold by negotiation in March 2016 and was marketed by Pat Portas of Property Brokers. Situated on Paget Road in Ashley Clinton, Terrybank is a 183 hectare dairy property with a recently constructed 36-aside herringbone, sold in conjunction with a further 34 hectare runoff block situated one kilometre up the road. The property has a good array of farm buildings; is predominantly flat contour with some small medium country toward the rear of the main dairy block. An interesting aspect of this sale is it was sold with a water contract to take approximately 500,000m³ of water if the Ruataniwha Water Storage Scheme proceeds. It is understood this was well received by the market with none of the potential purchasers raising concern about this water contract. Analysis of the sale is based on an average efficient system producing approximately 175,000kg milk solids with the property selling for approximately $29/MS. This illustrates good interest for dairy in the local market given consideration of the wider issues currently surrounding the dairy industry.
Marketed by Doug Smith of PGG Wrightson, Manaroa sold at auction on 26 November 2015. Situated on Puketitiri Road, Manaroa is a 514.5 hectare property of which an estimated 411 hectares are considered effective. The property has a good residence and array of farm buildings. A large proportion of the property is of near flat contour with the balance effective area being medium contour. The steeper portions of the property are primarily in QEII, Pinus radiata or bush and fenced off from the effective area. This sale illustrates there is still good demand for good quality sheep and beef properties in Hawke’s Bay.
“Springbush” marketed by Doug Smith of PGG Wrightson, sold at auction on Thursday 20 August 2015. Situated on Atua Road in Elsthorpe, this is a 357 hectare property of which approximately 315 hectares is effective. Improvements include a 2006 four bedroom dwelling with office, situated on an elevated site with views over the farm. The majority of the land is near flat to easy contour with a small area of steeper hill country to the rear. Much of the property has been re-grassed in recent years with good fertiliser history. The property also has good infrastructure in place including water system, yards and farm buildings. The property was purchased by adjoining owners for $4.575M. This sale further cements the strong land values for sheep and beef properties in Hawke’s Bay at present.
Dunloe marketed by Colliers International sold at auction on Thursday 30 July 2015. Dunloe is a 314 hectare bull beef unit located on Waihau Road, Waihau, some 42-45km from Napier/Hastings. A feature of the property is its very good balance of near flat to easy contoured hill country together with areas of some steeper sidlings. Some 30 hectares of steeper gully areas have been established in mid-term Pinus radiata. Building improvements include a comfortable four bedroom dwelling, four-stand wool shed, deer shed, implement shed, hay barn and other sundry buildings. Stock handling facilities include a set of cattleyards.
The property was purchased at auction by an adjoining owner for $4M. This sale continues the trend of good market prices for pastoral properties in the Hawke’s Bay locality.
The recent announcement of the sale of Hawke’s Bay Dairies main dairy farm and Rauriki blocks to Delegats for $29,300,000, sets a new precedent for land values in the Hawke’s Bay locality. The change of land use from dairy to viticulture highlights the versatility of flat land with irrigation.
Analysis of the value of the flat land suitable for planting in viticulture on a per hectare basis is close to $43,000/ha. There are many factors to consider in arriving at this value including the value of the water consents and any surplus water, the value of surplus land not suitable for viticulture, particularly on the Rauriki block, the value of forestry and the added value of plant and improvements on the dairy farm to a viticulturist. Our analysis of close to $43,000/ha is well above values seen in the locality in the past. However as the sale is in close proximity to existing Delegats operations, an adjoining owner premium is also worthy of consideration.
If this level of value becomes the new norm for bare land suitable for viticulture perhaps the Ruataniwha Plains may become a sea of vineyards when the dam proceeds.
Trish and Craig Sinclair of Kohurau, Glenross Road, Waiwhare were announced the winners of the Silver Fern Farms 2015 Hawke’s Bay Farmer of the Year at the Napier Ports Primary Industry Awards dinner held 1 April 2015. The business includes a 718ha Sheep and Beef unit on Glenross Road with a further property on River Road. “A stand out for the judges was the Sinclair’s achievements with high sheep and cattle performance in their challenging environment, farming 650 to 720 metres above sea level.” A field day is to be held on farm, 23 April 2015.
Winners of other categories included Justine Kidd who won the Hastings District Council Leadership Award recognising innovation in the local industry. The Laurie Dowling Memorial Award for outstanding contribution to agriculture went to New Zealand Federated Farmers immediate past president Bruce Wills, the Pan Pac Hawke’s Bay Farm Forester of the Year went to Simon and Josie Beamish from Awapai Station and third-year university student Kahlia Fryer won the Lawson Robinson Hawke’s Bay A&P Scholarship.
The Hawke’s Bay Regional Investment Company (HBRIC) has extended its financial closure date from 31 March to 30 June 2015. The target for HBRIC is around 40,000,000m³ of water in order to obtain institutional investment in the scheme. An HBRIC report advised current levels of farmer uptake is approximately 9,620,000m³ of water with further contracts written but yet to be signed. More urgently HBRIC requires $3.3 million in funding to keep the project going, of which $2 million is required urgently for geotechnical work to be undertaken at the dam site. The project has faced delays through an ongoing legal challenge to its consents and a related environmental plan change for the Tukituki catchment. There is an expectation that once resource consent issues are finalised, famer uptake will increase significantly.