Rural New Zealand is assisting the country’s economic recovery, and right now there’s real demand to own a slice of it.

The agri-sector remains the backbone of the country’s economy and there’s genuine public sentiment that the primary sector is helping us out of the economic hole we ended up in.

According to the latest Situation and Outlook for Primary Industries report, food and fibre sector export revenue is expected to increase 12 percent to $59.9 billion for the year to 30 June 2025, supported by tight global beef and milk supplies, solid demand, and a weaker New Zealand dollar against the US dollar.

Looking ahead to 2025–2026, food and fibre sector export revenue is forecast to reach $61.4 billion, driven by strengthening returns in the dairy, meat and wool, horticulture, forestry, and processed food and other product sectors.

While farmers continue to look for efficiencies, there is no doubt that the increased returns, alongside easing interest rates and a more sustained positive farmgate outlook, are building farmer confidence particularly in our core sectors of dairy, pastoral and kiwifruit. Importantly, liquidity has returned to the market off the back of this.

Around this time last year, transactional activity really started kicking off for Bayleys’ rural team and we’ve seen large volumes of deals so far in 2025, with a record number of dairy transactions driving the flow of deals.

We’re seeing strong prices across the main agri-sectors and in particular for dairy, sheep and beef, and kiwifruit properties where values are intricately linked to returns.

Timing is everything

Farming has its cyclical ups and downs, but one thing is clear – timing is everything when it comes to executing an exit plan or growth strategy successfully.

Succession, either through growth or a staged exit, takes careful planning, clear communication and time. So many owners try to second-guess the market and then regret being under pressure to make decisions in a less-than-optimal window.

The natural laws of supply and demand still apply in the current market, but right now there’s liquidity with many factors aligning to create a right time, right place scenario. We’re in a good cycle of farmgate returns with most of the mainstay commodity prices firming, interest rates have settled down, farm owners have had three to four years of debt paydown meaning there’s legitimate equity, we have people wanting to exit the market and others looking for opportunities, and the banks are supportive.

There’s money circulating in rural communities and beyond, something we will also see more of if/when the Fonterra-Lactalis deal proceeds after a shareholder vote later this year.

Escape to the country

Meanwhile in the lifestyle market, we’re seeing a resurgence of people genuinely looking to move to well-connected and accessible areas in the country, close to service towns and amenities. The interest rate story is largely driving enquiry in the lifestyle space, and while the work-from-home narrative is recalibrating, improved rural broadband capability is giving people options to have the best of both worlds.

As the world gets busier and city wheels start turning faster, an escape to the country is resonating with more and more people.

Bayleys is proud to represent clients’ rural assets right across New Zealand, and is privileged to be trusted with intergenerational properties as the baton is passed on.

For authentic and data-driven service from some of the New Zealand’s best-performing rural salespeople, talk to Bayleys as we’re Altogether Better across the country.