Agents expect more farm price records to fall in spring

Agents expect more farm record prices in spring

Property
MORE RECORDS: Cheap finance, good seasons and high prices give agents the confidence to predict more land price records will be set this spring.

MORE RECORDS: Cheap finance, good seasons and high prices give agents the confidence to predict more land price records will be set this spring.

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Property experts believe the record run of farm land prices will continue into the spring.

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Property experts believe the record run of farm land prices will continue into the spring.

Most expect the staggering records set earlier in the year will be eclipsed.

Even the flooding of the farm property market with the disposal of Corinella Group's 49 farms in Victoria and South Australia is not expected to dampen buyer's appetite.

Selling agents say the fundamentals which saw auction prices double, treble and go beyond in the first few months of the year are still with us.

Those reasons remain cheap finance, high commodity prices and a run of good growing seasons.

The big driver of some of the records has been the willingness of neighbours to make long-term generational investments to expand their operations.

Veteran rural Victorian real estate agent Jim Barham said he fully expected the run of record prices to continue into spring at least.

Mr Barham, an Elders agent at Ararat, said the sale of Corinella's portfolio "might have some bearing".

"There might be some who will take big chunks from that sale, I expect there will be many other properties coming out for sale in spring and they will do well," he said.

"The last sale record is only sets a base for the next sale which I expect will do ever better, the records will continue."

Nutrien Harcourts sales manager in Western Australia, Terry Norrish, told Farm Weekly there was "massive confidence" in the rural market.

Mr Norrish said the season has outstanding potential and commodity prices are at mostly all time highs.

"Sentiment would be the highest as a seller, whereas buyers and agents are looking for properties to buy and in the agent's case, market to sell."

Ararat Ballarat Real Estate holds one of the biggest records achieved anywhere in the country so far this year with $23,582ha paid for 179 hectares near Ararat for grazing/cropping country after a neighbour had bought the block from the retiring owner.

That result was closely shaved by the $23,590ha offered after neighbours competed at auction over a small 39ha paddock on South Australia's Yorke Peninsula.

Brad Jensen from Ararat Ballarat Real Estate said the impact of the Corinella sale "was unknown" as land supply was still tight.

"We expect prices will be even better in spring," Mr Jensen said.

MORE READING: Famed sheep farm to split into three.

There is still little detail on how the Corinella sale will progress.

Proterra Investment Partners announced last week it was selling 49 farms across south-eastern Australia.

The Corinella Group Pty Ltd of farms is scattered across more than 22,500ha but are mostly grain growing operations in western Victoria and the Wimmera.

All up price is about $350 million but Melbourne-based selling agents LAWD said the portfolio is being offered as a single portfolio or as individual farms.

Almost all those Proterra farms have been bought up over the past five years at a fraction of today's market prices, meaning a likely windfall for the investment group.

Outside of Victoria there is one large irrigation property at Naracoorte in South Australia with a 5778 megalitre water right.

Corinella Farms are being sold as four aggregations.

  • Lake Bolac aggregation with five properties.
  • Stawell aggregation with five properties.
  • Donald aggregation with four properties.
  • Naracoorte aggregation.

Some of the properties in the aggregations also include multiple farms to reach the 49 number.

LAWD has also been involved in the sale of Macquarie Bank's Lawson Grains business across 105,000ha in Western Australia and NSW.

The sell off has already been likened to mining magnate Gina Rinehart's impending sale of seven big stations in Western Australia and the Northern Territory covering some 1.876 million ha.

Proterra, founded in 2016, bought up most of its Victorian farms after the state's farmers suffered two poor seasons in a row.

Proterra was formerly Black River Asset Management, a wholly-owned, independently managed subsidiary of US grains and food giant Cargill.

Cargill remains a "strategic limited partner" in Proterra.

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