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Farmers turn cautious on land values
3 Mar 2006
The Australian Bureau of Agricultural and Resource Economics said fewer farmers bought additional land over the last year, as rising land values diminished the attraction of expansion as a business strategy. ABARE said that over the six years to 2004, more than five per cent of Australian broadacre farms expanded their farm area each year. However, in 2004/05 there was a significant decline in the proportion of broadacre farms expanding. ABARE said the general increase in land values resulted from a number of factors including higher farm incomes, historically low interest rates and a positive outlook for future industry returns. Another factor stimulating rural land values in recent years has been a steady increase in demand for land by urban Australians seeking a rural lifestyle and investment.
ABARE, 03/03/06
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