Young farmers are being touted as the big buyers in the property market in the Eastern States, but in WA young buyers are taking a more collaborative approach.
Elders State real estate manager WA, Drew Cary, said while it was clear an intergenerational farming transition was taking place, young farmers were going into land purchases with their parents and relatives or were the beneficiaries of land purchases made by family members.
"Families are buying for the next generation," Mr Cary said.
"Parents are finally letting go of the reins a little bit, even if it is in some cases reluctantly, to their 30-40-year-old children."
This collaborative approach is forming a large majority of the buying market.
Many buyers of the same ages and demographics are all vying for land, often for smaller additions.
"Those smaller parcels are harder to find and they're being more actively chased after," Mr Cary said.
"Often when whole farm parcels come up, they are broken back down into two or three parcels."
According to Ray White South Australia, young farmers account for 70-80 per cent of its current buying market and are unafraid of high prices, financial risk and rising interest rates.
The new cohort of young land buyers mostly originate "from reputable and successful mixed farming operations".
"Their engagement ranges from managing succession plans to actively expanding their family enterprises by acquiring additional properties," the Ray White sales review found.
Many young or next generation farmers were also entering into leasing deals to expand existing enterprises.
Mr Cary said he agreed young farmers in WA were also more likely to have a greater appetite for risk.
"The younger generation are pressing forwards with new ideas, are willing to take bigger risks and are happy to pioneer new farming practices to increase the value of their property and productivity," he said.
"I would also say that each generation that comes is more willing to take on risk, generally in their early careers than when they are in their later career."
While reports of record high sales prices come from the east coast, Mr Cary said land prices were coming to a plateau in WA.
"We have recently set some records in land prices, but more generally I think we're seeing a plateau in prices at the moment," he said.
"We're not seeing the upward rapid growth that we have seen in the past three years.
"I think we'll continue through a period of consolidation."
Esperance has been a high demand area thanks to its reliable rainfall, with properties being snapped up quickly after a few years of having little stock on the market.
Areas near the Albany Highway, with towns from Williams to Kojonup to Albany have also been in high demand, as well as Moora, and towns from Carnamah to Geraldton.
Mr Cary said young farmers in WA simply don't have the equity behind them to take on land alone.
"Getting that initial start-up equity to get a farm of scale, to make it economically worthwhile is difficult.
"You've got to have a pretty solid stack of equity behind you to get into that marketplace.
"So that normally means the bank of mum and dad, or the help of mum and dad to get you a start."
Nutrien Harcourts WA real estate manager - west, Jon Bahen, said across WA aggressive buying was being seen by substantial family farming enterprises seeking to grow their scale, driven by the younger generation who have stayed on the farm or returned from university with a strong drive to take the family agribusiness enterprise to new heights.
"There is no mistaking they are very good farmers and have embraced technology and science to increase yield and financial returns,'' Mr Bahen said.
"Free from the burden of scared memories of high interest rates, low commodity prices and poor seasons, the new generation have been propelled by generous banking terms and a desire to acquire whatever comes available in a race for growth.
"With the growing complexity of farming, juggling finance, technology, capital and science, it's understandable the younger generation are leading the charge, armed with a war chest of equity built up by previous generation and an intimate relationship with their bankers."
Mr Bahen said across the Wheatbelt, where technology and science has had the greatest impact on yields and returns and land has been tightly held for generations, families were looking out further to increase production and scale.
"When the spring sales settle in the new year and the record sale prices are released it may be a time for some to consider their future and take the money off the table but in any case, there is no shortage of demand from a multiple of sectors and no signs of it slowing up,'' he said.
Nutrien Harcourts WA real estate sales consultant Terry Norrish said it wasn't just corporate business that was driving the market at the moment, but large family farms.
While corporate businesses are laying a good foundation for value, Mr Norrish said some of those family farming enterprises were small corporate businesses in their own right.
He said those enterprises seemed to have access to large amounts of capital, which was either at hand or easily leveraged against the equity in their current business.
"Well-managed farming businesses are still being encouraged by their financiers to increase their scale of operation," Mr Norrish said.
"New technology and methods of farming have really driven the younger generation into the market, particularly in recent years.
"The younger people can see plenty of upsides and are excited by the opportunities being created by the recent and rapid upgrades to farming methodology".
In his own area, the Central Midlands region, Mr Norrish said the main market drivers were farmers aged 28 to 40-years-old.
He said they had generally taken over managing the farming operation or were in the process of doing so.
"They have the full co-operation of the older generation to expand and be quite aggressive in their approach,'' Mr Norrish said.
"They have no option but to either meet the market or pay overs in doing so, thereby creating a new benchmark in price.
"They are using their existing capital of their farm to lever into more land, wherever they possibly can."
Mr Norrish said most of that demand had come from families where there were multiple siblings.
That was where each individual wanted a certain unit of land measure to "grow and maintain the status quo".
He said it is well known farmers in the Esperance region has a massive appetite to build their enterprises and were running out of quality land to meet that requirement.
"There is nowhere else to go but west and north, consequently agents are seeing occasional Esperance operations making purchases in the Great Southern and northern regions," Mr Norrish said.
"Esperance is a young farming fraternity that is growing rapidly - they see the positives in owning more land and farming using all modern techniques.
"They are out there buying land wherever they possibly can and are paying above local market value in areas west and north.
"They see these opportunities as being of good value as compared to what they are going to have to pay in Esperance.
"This new age group are quite bullish and are prepared to take risks."
LAWD director Simon Wilkinson had seen second and third generation farmers looking to take family generational businesses to the next level.
Mr Wilkinson said that demand was seen across all agricultural areas from Geraldton to Esperance.
He said many were looking at different ways to finance their growth by moving outside of traditional bank finance and working in collaboration with other financial providers.
"Whilst the banks have a critical role to play, there are other options to work closely with other industry players within the supply chain.
"You have some people that are looking at livestock finance and inputs and others who are looking at more share farming and leasing on a longer term.
"That is so they have that continuity or security of tenure, rather than short-term lease option and hope you get the next option".
Mr Wilkinson said the rise in younger farmers buying into the market had always been there, however there was a massive transition at the start of COVID, in particular.
That was with lower interest rates making it more attractive alongside some good years in farming.
At the same time, he said there has been a gradual realisation that agriculture was still one of the greatest and most humbling industries to be involved in in the world.
"You are feeding and clothing people in a sustainable way - what a great outcome," Mr Wilkinson said.
"I think there's a sense of realisation from up and coming agricultural enthusiasts that ag is such a majorly important part of the world."
