Warrnambool district dairy properties sold for grazing and cropping, agents say

But they say the future is now looking brighter with a hike in milk prices and strong rainfall increasing inquires from dairy farmers.

Charles Stewart Real Estate Warrnambool branch director Nick Adamson said 16 dairy farms from Heywood, Vic, to Terang, Vic, sold last financial year, 13 to non-dairy buyers.

Mr Adamson said the price of dairy farms and grazing properties were close, and most dairy sales were due to declining profits or retirement.

"Grazing properties have gone up due to strong commodities, they have risen by up to 30 per cent over a three or four year period, and dairy farms have come back 25 per cent," he said, adding the last three properties sold continued dairying.

Elders rural property consultant Tom Luxton said the Warrnambool agency sold about 11 dairy farms last financial year, four to croppers or graziers, a relatively high number for the branch.

"We have seen more dairy inquiries in the last few months, the better quality properties are in demand now to be retained as dairy farms," Mr Luxton said.

"Twelve months ago inquiry wasn't as strong because of a combination in the low milk price, the cost of grain and hay."

Mr Adamson said 60pc of the dairy farms Charles Stewart sold were to local buyers wanting to expand their grazing holding, while the remainder of buyers were from drought-affected areas.

United Dairyfarmers of Victoria representative and Koroit, Vic, farmer Oonagh Kilpatrick said while some sales had been due to pessimism, confidence was now up.

"Our members are fairly confident. The milk price is very good," she said.

"Some farmers have decided to retire. The benefit has been in recent months that croppers and graziers have wanted to drought proof their businesses so they have come into the region."

This story first appeared on the Warrnambool Standard

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