The feasibility of farm ownership in the current financial climate

Abstract

The purpose of this report was to investigate key issues surrounding land ownership, how they are changing and what impact this has. Both rural and residential land have been discussed because in New Zealand often the driving force for change with one has a net effect on the other. The main focus however is towards rural land. This report has been split into a historical review of the New Zealand economy, land ownership, land prices and other influencing factors. Farm ownership pathways are outlined followed by a spreadsheet analysis tool which is used to investigate differing sheep and beef farm purchase scenarios and the returns from them. This report highlights the biggest obstacle to aspiring farm owners is the accumulation of sufficient capital and relatively poor returns.