|
|
|
Investors chase farm profits
3 Mar 2008
Agricultural risk management expert Brett Stevenson says that price rises on global grain markets combined with the deregulation of wheat exports could re-shape Australian agriculture. He predicts a shift away from the family farm as investors find farming more attractive. "If we look at somewhere like the northern mallee of Victoria, at current prices on an average crop we estimate the return on capital will be somewhere around 175 per cent in the crop," he said. This would apply for someone paying a farmer the full lease and only investing in growing the crop, hiring the land, and paying contractors. "Even on the worst possible crop – even in a drought – you're still garnering returns of 20 and 30 per cent on capital because of the prices. It's a pretty amazing proposition and it's why we're seeing increased interest from the investment community," he said.
The Australian Financial Review, 3/3/2008
|
|
