Farm prices fell by 2.4 per cent in the year to June, according to the Real Estate Institute of NZ's (REINZ) new farm price index.
REINZ said farm prices had shown compound annual growth of 2.1 per cent over the last 5 years and 7.4 per cent over the last 10, but are still down 24.8 per cent from their peak in October, 2008.
The institute said it had introduced the index to provide a guide to changes in farm sale prices.
The new measure had been developed in conjunction with the Reserve Bank and adjusts for property specific factors such as location, size and farm type in measuring changes in farm prices, REINZ said.
REINZ said the index is less influenced by the type of farms that sell, providing an improved measure of underlying farm prices, but said it would continue to publish median price per hectare data each month.