The objective of this report is to understand why farmland values have almost quadrupled since 1990 and perhaps more importantly analyse and try to predict where prices paid for farmland are likely to go from here. The consensus of numerous discussions with Economists, Real Estate agents, Bankers, Valuers and the people making the final decisions, Farmers, is that prices have risen too far too fast, cannot be justified by sensible rational financial parameters and that an overdue correction will happen. It is the extent and timing of this correction that causes most debate.

The New Zealand Kellogg Rural Leaders Programme develops emerging agribusiness leaders to help shape the future of New Zealand agribusiness and rural affairs. Lincoln University has been involved with this leaders programme since 1979 when it was launched with a grant from the Kellogg Foundation, USA.