Lower prices and less demand for agricultural land

TO those outside of farming, the prices being paid for agricultural land over the past five years must have been mind-boggling, when they were constantly reminded of low farm incomes and rising costs.

Even more confusing to non-farmers must be the fall in interest from bidders for farmland apparent in the market in recent weeks — even though the dairy, grain and cattle sectors have had one of their better years, with dairy and cereal prices peaking in 2007, and beef prices reaching a record high this year.

Nevertheless, some farm auctions have been cancelled.