West Coast farm ownership provides a pathway for the next generation

Why aspiring farm owners should take a closer look at the West Coast

We talk a lot about getting the next generation onto the farming ladder, but if we genuinely want young farmers to own land, we also need to talk about where that opportunity still exists. Right now, the West Coast deserves a serious look.

For aspiring farm owners who have built equity, livestock and experience but are finding it hard to secure their first farm, the Coast offers something different.

The West Coast offers a quality of life that is hard to compare and needs to be lived to be understood, with most farm businesses being self-contained owner-operator farming businesses. Historically, the West Coast was seen as the place to get a foothold and trade your way up in farming.

Dairying on the Coast is underpinned by Westland Milk Products, a proven international dairy company. Last season was very much a nod to the good old days, with 20 West Coast dairy farms changing hands for approximately $63.5 million. Reflecting improved farm profitability, stronger balance sheets, and confidence on the part of rural lenders in the longer-term outlook for the Coast.

The average dairy farm sold last season was 165 effective hectares, producing around 125,000kgMS, with a median sale price of $3.2 million or approximately $19,000 per effective hectare. These numbers illustrate why the West Coast continues to attract attention.

There are also different ways to make the move. Alongside dairy units, grazing and finishing opportunities can provide another pathway into land ownership or complement an existing farming business.

Buying a farm on the West Coast, like anywhere, requires good due diligence. Location, infrastructure, climatic risk and capital expenditure all matter, and the market is clearly distinguishing between quality properties and those requiring significant investment.

Our team can play a big role in ensuring you get good advice on location and climate influences too. The good news is it only rains at night.

West Coast dairy farms continue to trade at a substantial discount compared to other established dairy regions, while producing superior operating returns. We are now seeing the next generation viewing this differential as the opportunity to get ahead.

At Property Brokers, one of our goals is to help more young New Zealanders take that first step onto the rural property ladder. For some, the opportunity may not be where they originally expected to find it. The West Coast could just be the place to start.

Source: PB Data Centre