AS one of the first farms to go under the hammer this season in the WA rural property market, the sale of Cwmavon, Gnowangerup, represented a notable event for the sector.
Being a top quality property in a reliable farming area, it was expected by Elders Real Estate professionals that Cwmavon would fetch a premium price, but when the hammer went down at $7.65 million, many were slightly surprised and the vendors, Michael and Sue Lance, were certainly pleased.
The auction, held last Friday at the Gnowangerup Bowling Club, proved to be quite an event for the town, drawing more than 90 people, many of whom were seeking insight into the value of farmland in the local area.
The property was auctioned by selling agent, Elders Real Estate rural specialist Jeff Douglas and bought by Peter and Michelle Dewar, from Broomehill, who were consistent bidders throughout the auction.
Mr Douglas said given the market, he didn’t have an expectation of what the property would sell for.
“It is difficult to have a price expectation in today’s market which is part of the reason why properties go to auction, but it did sell for a premium price,” Mr Douglas said.
“It certainly means it is a great time to sell so people sitting on the fence should consider taking advantage of the market.”
Cwmavon measures 1672.4 hectares with about 1426.5ha being considered arable.
Based on the sale price of $7.65m, Cwmavon sold for about $4574.26 per hectare or $5362.78 per arable hectare.
A reserve price was set but not disclosed and bidding, which started at $5.5m, lasted about 10 minutes.
Mr Douglas paused the auction when bidding reached $7.45m to discuss with the vendors before officially declaring the property on the market.
Elders Real Estate sales executive – WA Rural Jim Sangalli, said the result reflected the strong demand for quality farmland in the Great Southern region.
“The good commodity prices has put extra confidence throughout the agricultural community and that put together with a lack of farms on the market leads to a healthy marketplace,” Mr Sangalli said.
“There were more than 90 people at the auction which is right up there with the largest crowd that I have seen at a farm auction.”
Mr Sangalli said the price that Cwmavon achieved last week was likely to boost confidence in the rural property market in the region, as many farmland owners saw first-hand just how good the demand for quality properties is.
“I am sure that for people thinking about putting their farms on the market, it will further reinforce that serious consideration should be given sooner rather than later,” he said.
The Lance family was very pleased with the auction result of the property, which had been in the family for 68 years and they plan to semi-retire and move onto new projects.
“We decided to sell because the size of the farm was not sufficient for the sort of operation that we wanted to run with family and it (was) a good time to sell,” Mr Lance said.
“We didn’t expect the price that we got but knew it would be firm as we had good interest.”
Having been farming for 45 years, Mr Lance said it felt “bitter sweet” to sell the farm.
“I enjoyed the rewards (of farming) from putting in the effort, you can see the fruits of your labour which has been very satisfying,” he said.
Buyers Mr and Mrs Dewar proved determined to secure the top-quality property as they have been wanting to expand their farm business.
They have three sons James, Adam and Mitchell and the eldest James, 21, is due to return to the farm soon.
“(Cwmavon) is a very good farm, it’s highly productive, in tip-top condition, has good infrastructure and has been very well farmed with a good sustainable rotation,” Mr Dewar said.
The Dewar’s existing operation, which was purchased by Mr Dewar’s parents Gavin and Pauline, comprises 60 per cent cropping and 40pc sheep with two full-time staff, Gavin and Simon, who have worked for the farm business for more than 15 years.
Since it was first cleared in the early 1900s, Cwmavon has been run with cropping as the primary enterprise and Merino sheep secondary.
Over the years the ratio of crop to livestock has varied due to economic and labour factors but the Lances ran the property as 65pc cropping and 35pc sheep.
Quality country, strong soils and proficient landcare were all significant factors that attracted plenty of interest in the property as it has an undulating landscape with rich river loams to the majority of the farm plus medium to heavy red brown loamy soils.
The landcare efforts taken were particularly impressive with advice being sourced in collaboration with Land for Wildlife and other private and government bodies.
Creek lines have been replanted with vegetation endemic to the area and it is fenced to facilitate management of livestock movement.
A focus has been to try to eradicate Bridal Creeper and Soursob from river and creek lines with great success.
Through a combination of drainage systems to lower water tables and vegetation planting, the reclamation of lower saline areas has been achieved.
Infrastructure on the property was also a major buyer drawcard, comprising of the homestead which was built in 1918, a large machinery shed, workshop, general purpose shed, grain and fertiliser shed, a fertiliser shed with a sliding roof, shearing shed, seven grain silos with a combined capacity of 222 tonnes, sheep yards with 1600 head capacity, 533,000 litres of rainwater storage, 85,000L of Flexi-N storage and two historic sheds.
Water for livestock is collected by 25 dams, with 18 fitted with roaded catchments or graded contours and water is conserved by connected contour drains to ensure overflows caught in the next dam down the slope.
