All Topics / Help Needed! / Agricultural Property – Anyone know how to separate the wheat from the chaff?

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  • Profile photo of propertynoobpropertynoob
    Member
    @propertynoob
    Join Date: 2011
    Post Count: 2

    Wondering if there are any Agricultural property experts on this forum?

    I personally believe that residential property is pretty overvalued and like the idea of purchasing a productive agricultural property (as an investment) in a nice rural area, particularly as demands for food/materials from Asia increases. Does anyone have any experience with this kind of thing?

    A few general questions

    – What kind of yields can one expect from an Agricultural property?
    – What’s the difference in risk/reward between different types? e.g. grazing, horticulture, forestry, etc.
    – Is it possible to have a relatively low maintenance ag property?
    – Any obvious traps to watch out for?
    – Any general tips or links to worthwhile resources?

    Thanks!

    Profile photo of Ryan McLeanRyan McLean
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    @ryan-mclean
    Join Date: 2010
    Post Count: 547

    Sorry but just to clarify. Are you wishing to purchase this property and run it as a business?..getting in people to manage your land and your yields?
    Or are you wishing to purchase this property and rent it out to some body so that they can run an agricultural business on the land?

    Ryan McLean | On Property
    http://onproperty.com.au
    Email Me

    Profile photo of propertynoobpropertynoob
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    @propertynoob
    Join Date: 2011
    Post Count: 2

    Good question – not entirely sure. I was thinking the former, but definitely interested in information on the latter too.

    Any info is much appreciated :)

    Profile photo of crustycrusty
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    @crusty
    Join Date: 2010
    Post Count: 127

      How long is a piece of string? It depends. How much you want to spent, your cashflow, your ability to get finance, your objective. There can be a vast difference between the same types.  You are only limited by what your imagination.  Obviously talk to agents consultants and agronomist.   I would look at reliable  low rainfall (300mm) light soils with consistent production record, you can make a fotrtune if you can produce in a drought when grain prices are high and you can buy livestock cheap  or you could just sharefarm where you get an agreed % usally around 25- 33%, depends on how much risk you want to take and who puts in what imputs.

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