What is your farm worth?
Forecasting an achievable price is one of the main considerations when selling your farm asset. Arriving at the figure is not as simple as extrapolating from what was paid for a neighbour’s property, nor should it be based on what’s needed to cover debts and/or buy the retirement property of your dreams.
Estimating an achievable selling price includes a complex analysis of:
- The attributes of your property - soils, climate, topography, farming practices, infrastructure etc.
- Demonstrated productivity in terms of carrying capacity and cropping yields.
- Recent district sales of comparable properties.
- Seasonal conditions and projections.
- Time of year in relation to planting and harvesting windows.
- Economic and commodity market conditions (state/national/international).
- Political and legislative conditions.
- Opportunities in non-traditional uses for agricultural land, such as the energy, carbon, or biodiversity industry sectors.
Farms are not houses and buyers will make purchasing decisions based on business rather than emotion.
Over time, farms have proven to be consistent performers. The Australian Farmland Values Report 2023 (Rural Bank) indicates that the national 20-year compound growth rate for farmland is 8.5% per annum.
For buyers with a healthy equity position and appropriate expertise, farms are an attractive investment. But they are not without risk, especially during times of external factor volatility.
Rural Property NSW has more than 30 years of experience in selling commercial farms, and we can help you navigate the minefield of determining an achievable sale price. Please call Michael Guest on 0429 921 700 for a confidential and obligation-free discussion or make contact via our website.
by Michael Guest in Latest News
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