Farm discounts likely

03 Jul, 2013 06:35 AM
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MORE farmland across Australia will fall into the distressed sale category following a number of high-profile receivership appointments.

In April, The Australian Financial Review surveyed the nation's top seven major insolvency specialists to find that at least 80 major farming operations across Australia, each worth more than $1 million were in receivership – or some form of distress.

The most recent high-profile appointments include R.M. Williams Agricultural Holdings and companies associated with agricultural land identity Craig Doyle.

Evidence is also building around discounted pricing with Queensland a hotbed of activity.

The 8480 hectare Brookvale in south-east Queensland was sold last month through Elders for a discount of about 30 per cent to previous expectations. A cattle property called Plattaway Station sold at a mortgagee auction for $5.1 million after once being listed for sale at $7.5 million.

Rural financial counsellor at Emerald in central Queensland Richard Lewis said the market for land was down. "If you are highly leveraged, your banks are going to be a bit anxious," Mr Lewis said.

AFR
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READER COMMENTS

dogsbody
4/07/2013 9:05:57 AM

And how many of these sales end up with overseas ownership? At some time will we realise we are feeding the rest of the world cheaply to our own cost. They will probably sell produce to subsiduary companies offshore at cost to avoid tax like some mineral commodities so we suffer further losses. Howard left a truly wonderfull legacy.
froggy
9/07/2013 7:44:20 AM

I'm sure that these overleveraged landholders would be grateful for interest from overseas investors, or any investors really... where is the investment by Australian institutions in Australian agriculture? Surely it has to look attractive.
Top Ender
9/07/2013 8:51:54 AM

The whole overseas ownership issue is a crock, driven as a highly emotive issue. The whole history of Australian Agriculture has been underpinned by foreign investment. Why should a farmer looking to sell their property not be able to sell for the highest price on the day - no matter where the funds come from?
Bluey
10/07/2013 5:19:26 AM

Given the Aus banks source 70% of their funds offshore, why not cut out the middleman and sell directly to foreigners. The anti-foreign ownership line is just faux patriotism.

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