The New Zealand rural property market-where to from here?

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.