Farm values breaking records across the country

Farm values breaking records across the country

27 October 2017

Rising farm values across the country are breaking records per hectare and bolstering the balance sheet of farmers, reports the AFR.

In the last month, two surprisingly strong sales in NSW have set a new benchmark for the value of land.

In Gunnedah, a local farming family purchased a 750-hectare farm for $5.975 million, or about $7,940 per hectare. This is one of the highest prices achieved for dryland farming country in the district where prices are normally around $6,000 per hectare.

Ray White Rural agent Tim Walsh said that six sales in the Gunnedah district this year have all exceeded $6,000 per hectare.

“We have seen a constant increase in the value of both grazing and farming land in the Gunnedah district and most properties that have sold twice in the last 10 to 15 years have doubled in value with most of the increase coming in the last five years,” Mr Walsh said.

Meanwhile, further south near Cowra, a 668ha property without a house or major infrastructure sold for about $11,360 per hectare or about $7 million. The property had 50 enquiries and 25 inspections.

“I’ve been in this business for 40 years and I have never seen it like this,” said Steve Nash at NGB Bellamy. “These bigger prices are becoming a regular occurrence for the really good properties.”

Strong increases in land values have also been realized in the Upper Murray of NSW, where two properties recently sold for more than $5 million, a record price per hectare in the area.

Inglis Rural Property sales manager Sam Triggs, who managed the sale on behalf of the Patton family, told the AFR in a separate report that local land values had substantially shifted upward.

“Good quality grazing land is now selling for between $9,880 and $12,350 per hectare in the Upper Murray,” he said.

In the Tarcutta district near Wagga Wagga, a syndicate of farmers has paid $2.26 million at auction for a 609-hectare cattle grazing and fattening property, says yet another AFR report.

The sale was well above pre-auction expectations of $1.8 million, demonstrating the appetite among local farmers to expand their operations at a time of low interest rates and strong returns in the beef sector and others.

It joins a string of recent rural auctions, which have smashed expectations, including Roseochi, a 2,225-hectare broadacre aggregation near Swan Hill in Victoria’s north-west, which sold for $8.1 million having had pre-auction hopes of about $6.3 million.

Several historic farming properties have recently been sold or offered for sale in Victoria and South Australia.

These include┬áthree properties making up a 3,553-hectare rural portfolio in Victoria that sold for a combined total of just over $15 million, and one of South Australia’s prized sheep and cattle grazing stations,┬áMount Schanck, which has an asking price of more than $50 million.