Buying a farm or lifestyle block
Is buying a farm or lifestyle block realistic for you?
Doug Wakelin, Rural/Lifestyle Sales Consultant, Property Brokers Te Awamutu
Short answer. It can be, if you've got the equity, the income to service debt and the skills for the type of farm. Lenders assess farm purchases case by case, and the deposit is usually bigger than for a house. Start with a conversation with your bank or a rural finance adviser before you look at properties.
A reality check
| Question | Why it matters |
|---|---|
| How much equity do you have, and in what form? | Banks look at equity and cash flow. BNZ has described a First Farm programme with a lower minimum deposit for eligible first-time dairy farm and herd buyers (BNZ). Terms change, so confirm them with BNZ or a broker. |
| Will the farm cover its own costs? | Interest, rates, fertiliser, labour, repairs, insurance and tax are all there before you earn anything. |
| Have you allowed for working capital and stock? | REINZ noted in May 2026 that higher livestock costs have created a working capital constraint for finishing buyers (REINZ, 14 May 2026). |
| Who's running it? | A hill country block needs skills, time and the right gear. |
| What's the family position? | Succession and equity partnerships need proper legal and accounting structures. |
| What is the plan if returns drop? | Fonterra's forecast for 2026/27 was lifted on 30 Oct 2026 to a $9.75 midpoint per kgMS, but prices move. |
ANZ and Rabobank don't publish a fixed deposit percentage for farm purchases, and assess lending case by case (ANZ agribusiness, Rabobank).
Ways people get into farming or a block
- Buy a lifestyle block first to learn the basics. See lifestyle blocks.
- Equity partnerships or family arrangements. Get legal and accounting advice on structure.
- Lease or share-milk for a time before buying.
- Grazing and dairy support blocks, which sit between a lifestyle block and a full farm.
Steps
- Talk to your bank manager or a rural finance adviser about what's possible.
- Talk to your accountant about structure and tax.
- Decide the type of farming you want. See farm types.
- Set a firm maximum budget including working capital, and keep a buffer.
- Look at a few properties with a farmer you trust, without pressure to buy.
Check before you rely on this
General information only, not financial, legal or tax advice. Talk to your lender, accountant and solicitor.