There has been no sign of an easing in farm prices. In the last two months of 2018, there were several record-breaking sales across Southern NSW. On top of this, corporate money continues to pour into the sector. It is becoming harder and harder for this money to find a home. Recently, a large corporate farm based in Temora NSW was purchased by a Canadian Pension Fund. The fund is an ‘evergreen fund’ and is looking to hold assets such as farm land, toll ways, and other long-life assets that give a steady rate of return across a very long period of time. It is hard to imagine the Pension Fund selling anything it purchases within the next twenty years. They have a much longer time frame. Also, a large farm in Western Australia was recently purchased by a Middle Eastern ‘evergreen fund’. So, the ‘weight of money’ is still creating an environment whereby land prices are staying stronger for longer.
As Demeter looks to sell farms over the next few years, the market should remain strong if present indications are anything to go by.
As in the previous year, Angus assessed the fair market values of our farms. During the last twelve months a few sales happened in the area, which indicated that we had to lift some of our values to be in line with market prices. You see the new updated estimates on page x. Our accountant WDF will calculate the share price based on these values at the end of the financial year in June.