If there's one overwhelming message to emerge from the 2019 rural property market, it's that confidence in Australian agriculture remains rock-solid.
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Despite the ravages of the drought, Australian farmland by and large is still seen as a desirable investment haven.
Whether the buyer has been a foreign institution or a neighbour, sales results demonstrated a willingness to maintain values at or above the higher rates established in 2015.
Prices for most land types have now at least doubled since 2013, but at the same time - thanks to the drought - sales activity has effectively halved.
Much of the sales activity has been occurring at the top end, where according to Colliers International's data, sales of properties in the $5 million-plus bracket have been in line with the five-year average.
Sales worst affected by the drought have been family farms in the $2-$3m price range, whose typical buyers are now focused on survival, and lifestyle farms, which depend so much on presentation to lure buyers.
This year's biggest transactions were mostly between major corporations and institutions, as some existing players expanded and others downsized.
This year's biggest transactions were mostly between major corporations and institutions
Topping the list was the off-market sale (subject to Foreign Investment Review Board approval) by US-owned Auscott of its prized Gwydir Valley cotton farm Midkin for a rumoured $300m-plus.
Auscott has not revealed the identity of the buyer, but it is understood to be the Moree-based Australian Food and Fibre, with an offshore investor partner.
Other mega-deals involved Macquarie Bank, whose three agricultural investment vehicles - Paraway Pastoral, Lawson Grains and Viridis Ag - now control some $2.7 billion of Australian farm assets.
Viridis Ag in August acquired the 49 per cent stake in cotton mega-farm Cubbie Station at Dirranbandi, offloaded by its Chinese owner, Shandong Ruyi, for a reported $200m-plus.
That followed Viridis's purchase through CBRE earlier in the year of the 9300ha Brudle Park aggregation at Moree for around $50m from Ceres Agricultural Company, to which administrators were appointed in March.
In October, Viridis added two Croppa Creek farming properties to its North West spread, the 2058ha Grainfields and 3163ha Oodnadatta, both through CBRE at prices above $7500/ha.
Viridis also did some trimming, divesting through CBRE its 4200ha Canowindra Aggregation (including Canomodine Station), acquired in 2018 as part of the Qatari-owned Hassad portfolio, for $19.2m to Sir Michael Hintze's MH Premium Farms.
Also now in play, following its listing in July with CBRE, is the China-based Rifa Salutary portfolio of 14 NSW and Victorian properties, including the 24,000ha Cooplacurripa in the Manning Valley.
And topping all other deals, if shareholders approve it, will be the takeover of Webster Ltd's huge portfolio of orchard, cropping, livestock and water assets by Canada-based fund manager PSP Investments.
Away from the mega-deals, much of the limited sales action has been focused on the more rain-secure areas of southern NSW, where prices reached new highs, fuelled by "grass" demand.
A case in point was Bundarbo, the 2103ha Jugiong property offered for sale by Meares and Associates of Sydney for the estate of former media tsar Sam Chisholm and sold to Markus Kahlbetzer for close to the $30m asking price.
Further south, Aberfeldy and Stonehaven at Holbrook - both originally part of the Ross family's Kinross aggregation - were sold by Elders Albury for prices in excess of $22m and $11m respectively. Aberfeldy was bought by T.A. Field Estates and Stonehaven by former dairyfarmers, the Cox family from Shepparton, Victoria.
Mount Falcon, Tooma, marketed with price expectations of $13.5-$15m, was sold by Inglis Rural Property and Colliers Agribusiness for its China-based owner, Union Agriculture, to a family with local interests for an undisclosed price.
At Young, a new district record was set in December by the EOI sale of the 369ha mixed farming property Uplands, for an undisclosed price of more than $12,000/ha ($5000/ac) bare of improvements.
Owned by Max and Pamela McCloy and bought by neighbouring landholders John and Annie Snodgrass, the property was sold by CBRE and Delta Agribusiness in conjunction.
Even in the drought-racked Moree district, a new price record was set when the Cotter family's 1168ha Prospect Downs/Bonnie View aggregation at Biniguy was sold by CBRE and Moree Real Estate to George Clyne and family for $13.1m or $11,215/ha ($4540/ac).
- See 2020 property market outlook, January 9 edition.