The Real Estate Institute says higher confidence on farms around the country is driving the latest agricultural property boom.

As we reported last week, April saw more than 150 farms change hands – the most in a single month since July 2008.

That figure pushed the total number of farms sold in 2011 over nine hundred, the best for a first quarter in 3 years.

REINZ rural market spokesperson Peter McDonald says the rising confidence among farmers both buying and selling is certainly underpinning the market right now.

“It’s understandable that confidence in farming is coming back as a result of commodity prices.

“I anticipate, and I think it’s a pretty commonly shared opinion, that we will see a lift in the market next year.

“We’ll certainly see a lot more activity out there, with properties changing hands.

“But it would not be surprising at all if we see a lift in values.”

All regions across the country except Wellington recorded an increase in sales between March and April, driven largely by South Island activity.

Peter McDonald says dairy grazing blocks are proving popular ahead of the winter season down South.

“There’s been more activity in the bottom of the South Island, in Otago and Southland, than anywhere else in the country.

“The lift in interest in dairy support blocks has been right across the country, but strongest in the bottom of the South Island.

“That’s not unexpected because there’s a huge amount of dairy farming down there.”

Peter McDonald says if the high commodity prices continue, farmers could well see banks relaxing financial constraints as early as next year.