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REAL ESTATE | 3 September 2010

NSW Agriculture - Invest Now

Now is a great time to invest in agricultural property. If that sounds like a real estate cliché, just stop and think for a moment, because you will soon conclude it is actually true.


Seven signature properties have just become available through Landmark on behalf of Clyde Agriculture, so it’s worth considering the investment you might make.


The biggest agricultural industries in New South Wales – grain, sheep and cattle – are all reporting tremendous prices. Add to this excellent soil moisture reserves in many regions and the outlook is very strong.


Consider grain: AWB is currently forecasting pool returns for APW wheat in the 2010 harvest well in excess of $300 a tonne. It is only the third season in history when this has occurred and the other two were in 2007 and 2008.


Prices were lower in 2009 after two successive world record crops built up stocks, but the picture has changed rapidly in recent months. Earlier this year the outlook was for continued low prices, with the grain trade talking about “burdensome global stocks”. Then Canada suffered an excessively wet autumn and a large slice of their grain crop wasn’t sown. Nervousness started to appear. Spring rains in the grain bowls of Russia, Ukraine and Kazakhstan failed and suddenly talk appeared of a 20 million-tonne hole in world wheat production. Nervousness turned to panic and prices skyrocketed – such is the growing demand for grain supplies and awareness of world food security.


Is this a one-year wonder? No, it’s the third year in four and it’s because the longer term trend is showing supplies are not keeping up with the demands of a growing world population.


Sheep and cattle: headlines of lambs selling for over $200 a head have appeared in NSW papers how many times now? Then look at prices for restocker cattle at four-year highs and add on increased demand for finished cattle driving prices up too.


World demand for protein is climbing, with the analysts showing that as economies develop, animal protein is preferred. Beef is the protein of choice in some cultures but not everywhere, and the biggest expansion of population is occurring in the developing world.


Does all this guarantee good outcomes from agriculture every year? No, we all know better than that, but the fundamental picture is indicating a strong future.


Consider then, the seven properties Landmark Real Estate has just listed for sale on behalf of Clyde Agriculture. Six are in the Warren-Coonamble region, amounting to over 132,000 hectares of exceptional cropping and livestock country. The seventh is near Walcha; over 5,000 hectares of prime livestock country.


Isn’t it time you took a very close look?


Full details: Signature Properties For Sale


Phil Rourke, NSW real estate manager, Landmark, 0418 667 659

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