The agricultural property market continues its strong growth across most industries and regions of Australia.
Within the agricultural market, the family farming enterprise is fast becoming a dominant player. Consisting of entry-level buyers through to large family enterprises.
Never has there been a better opportunity for the family farm to set owners up for retirement, payout passive beneficiaries, and to provide the children that take over the business with a future in their own right.
National Rural Market Purchases
Acumentis data validates the high percentage of family agribusinesses in comparison to the balance of the market.
These percentages vary across the country with a higher proportion of family agribusinesses in Central and Northern Queensland (90%), Northern and Central New South Wales (89%), and Western Australia (95%).
Funds and corporate agribusinesses are more dominant by value throughout Victoria, Southern NSW, and Tasmania.
Market Observations
The agribusiness environment is currently thriving with record low interest rates, high commodity prices, and favourable seasonal conditions. In this environment we are observing a couple of interesting factors;
- A surge in property and enterprise value, leading to increased equity
One of the most noticeable factors in the current market is the size of family farm businesses in terms of enterprise value. It is not unusual for the family farming business buying land to have a $10 Million loan facility, and large family farming operations regularly supporting $50 million facilities. - Large family farming competitive with funds and corporates
With such favourable market conditions some large family farming enterprises are strongly competing against funds and corporates at the top end of the market. The family farms are operating with lower overheads and leaner teams
Recent Transactions
|
Mt Harden, Blackall QLD |
South Callandoon, Goondiwindi QLD |
| Livestock enterprise
Sold to Agricultural Fund Manager AAM for $24,800,000 |
Irrigated and dryland farming enterprise
Sold to private landholder MH Premium Farms (Sir Michael Hintze) for $100,000,000 |
Succession planning – the time is now!
With rural property values surging since 2015 the significant increases in equity and cashflow opportunities have allowed for the easier facilitation of succession planning.
Family farming enterprises can now commence succession planning within agribusinesses knowing there are now options for all of the family.
What role does Acumentis play?
The Acumentis Agribusiness team works alongside agribusiness owners, their solicitors, and accountants to play a key role in the succession planning process.
Our certified practising valuers provide invaluable valuation and property market advice. The team generally works on an ongoing engagement supplying up-to-date valuation and market advice during the succession planning process.
Future-focused advice is provided to validate property and business succession options.
The majority of the succession plans that we have assisted with over recent years have resulted in an Intergenerational transfer of assets between retiring parents to children or grandparents to grandchildren.
The facilitation of these transfers is the culmination of what is most often months if not years’ worth of financial, tax, and estate planning, across businesses which include land, plant, equipment, livestock, and crops.
Acumentis clients have been able to rely upon our consistent team over these prolonged periods to provide independent advice in a manner that is easily digested by family and other service providers.
Why engage Acumentis in succession planning?
Acumentis’ dedicated agribusiness specialists understand rural businesses with the majority being born and bred on the land, working in a rural enterprise, or remaining strongly connected to it.
The team develops a genuine understanding of the situation, needs, and wants of family members and applies their expertise and knowledge to provide useful and unbiased advice.
If the Acumentis rural & agribusiness team could assist you or your clients with succession planning, contact one of our friendly team.