Owners of high priced farm land opt for leasing deals

Troy Goldsworthy from Nutrien Harcourts says the new selling year has kicked off with a feast of properties on offer across his patch of the red hot Yorke Peninsula, arguably some of the most expensive farm country in the nation in the past few years.

He has four farm blocks for sale and six for lease.

Other South Australian agents have commented on the increased popularity of leasing deals.

"It is a lot (of listings) at one time in such a small area around Minlaton," Mr Goldsworthy said.

He said there was no single reason for the number of offers.

Family circumstances including farmers working well into their traditional retirement years was a reason for wanting to slow down and consolidate their holdings.

The run of good seasons and the stellar prices being paid for YP cropping land was another reason for some wanting to cash in.

Some lease offers and sales are forced on owners through illness or even death.

Mr Goldsworthy pointed to the number of large cropping blocks being offered on lease arrangements as an indication their owners were still keen to retain family ownership.

Leasing gives buyers looking for add-on blocks or even stand-alone farms a more affordable way to win a foothold in this in-demand part of the world.

Historically leasing rates were based on the farm's market price - generally set between 3-7 per cent of that value.

But the record run of high farm prices means some are questioning whether those land values reflect the productive capacity of the land.

A succession of expert reports last year detailed farm sales in parts of SA saw the largest rise in median price per hectare in the nation.

Prices of more than $15,000 per acre were paid at auction for YP cropping country last year.

Mr Goldsworthy has a public auction listed for the sale of a 97 hectare (240 acre) farm block at Koolywurtie at 2pm on March 5. The auction is being held at the Minlaton Bowling Club.

The Menz's block is set up into two large paddocks with a salt lake impacting the available arable country.

He is running an expressions of interest campaign for May's just west of the cemetery at Minlaton.

The block takes in 551ha (1361 acres) of arable country "in great heart".

The lease offers are also running on expressions of interest with terms like the length of the arrangement and payment to be privately negotiated.

Roscrea Hill at Arthurton contains 701ha (1733 acres) of arable land offered as a whole or in two lots with annual average rainfall of around 400mm.

Roscrea Hill is available for lease.

Mr Goldsworthy can be contacted on 0488 128801.