Market’s post-drought consistency surprises farmers

By Fiona Gowers

With 20 years’ experience in rural property sales in the South Burnett region, James Bredhauer has experienced the usual fluctuations synonymous with his industry.

But, what surprises the managing director of Aussie Land & Livestock most is that since drought broke in 2020 the farmland market has been so consistent across all sectors.

The reason? A once in 30-year collision of high commodity prices, low interest rates and a cracking season in most areas.

Add in a lack of listings, which is causing demand to outstrip supply, and you have the perfect sales storm.

“I can’t see it slowing,” Mr Bredhauer said. “And, it is so widespread.

“Grazing land is possibly selling faster than mixed farms due to activity in the cattle market, absolutely. But, yes, both are very strong.”

Mr Bredhauer said local families seeking to expand existing holdings were underpinning the sales momentum and “they’re unconcerned if properties don’t adjoin. They just want more land”.

“How quickly farmland sells is pretty much based on the merit of the property, the pricing and what returns you can draw from it.”

Mr Bredhauer said vendors’ prime reasons for selling were retirement, fulfilling their role in succession planning and relocating to bigger operations.

Meanwhile, in the neighbouring Gympie region, 30 farms sold between June and December 2022, with RP Data showing sales of land totalled $39.2 million, with a median price of $1.86m.

The majority of sales comprised cattle farms, with several orchards and a pineapple property also offloaded.

The most expensive rural property sold was located in Murgon and achieved $8.52m.