Recent data shared by the Real Estate Institute of New Zealand research has revealed that in three months up-to Octobers, there was a sharp drop in both farm sales and farm prices. The news has managed to overshadow the joy that farmers across the country were currently experiencing over Fonterra's decision to increase farmer payouts.

Official figures have shared that as many as 205 farms were transacted in the aforementioned three months, down from 390 recorded for the same period last year, and a big drop from the figure of 582 for the same period in 2007. Average price of a rural property recorded for the period was $875,000, down from last year's recorded price of $1.5 Million.

Fonterra's new scheme, however, is still being viewed in an optimistic light, and experts are hoping that it might turn things around. "The new payout is extremely welcome news and it will change a lot of people’s budgets, encouraging greater confidence", said REINZ President Peter McDonald. "But to date banks have been reluctant to show their hand and as a result, a lot fewer farms have been sold this year than you would usually expect at this time of the year. Until we know what the banks’ policies are going to be, it’s a matter of ‘wait and see’".

Of all the farms sold this year for the three month period up-to October, 111 were grazing farms, 35 horticulture and 9 dairy farms.