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Land holders capitalise on commodity prices
8 Nov 2004
Higher prices for many farm commodities are driving the price of agricultural land higher, with existing land holders often the buyers. Land prices have reached their highest level in 12 years in some industry segments, while rural properties in some parts of Queensland have doubled in value. Three major cattle properties have recently sold for about $50 million, while cotton properties with water storage capacity are also receiving good prices. Some recent sales of cotton properties around St George and Moree fetched between $5 million and $6 million. Even sugarcane appears to have found support, with sugar prices exceeding the cost of production. Herron Todd White director Kerry Herron said the banks had also been very keen to lend. He said not so long ago a property sale of $10 million to $20 million was a stretch, but there had been many sales at those figures, particularly in the gulf and channel country. "There's very few new players. It's all existing growers enlarging their portfolios," he said.
Courier Mail, 08/11/04
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