The opening to south-east growing season began strongly with significant rains in early May after an extremely dry autumn.
Dry conditions contributed to very few summer weeds, good stock health and a prolific germination of clovers and grasses.
The high clover content in pastures and the colour of the paddocks has been remarkable which has delivered sound livestock growth rates through autumn, winter and early spring.
All these positive outcomes have combined for south-east producers who are set to take full advantage of current historically high livestock returns.
The current property selling season commenced with the sale of Ebenezer Downs, 757 hectares (1870 acres) located 16 kilometres west of Naracoorte.
The property presented well early in the season while there were few properties available for sale.
The property was set up for cattle while the management style looked to embrace various aspects of the cell grazing system.
Interest came from far and wide with inspections being conducted with parties from New South Wales, Victoria and South Australia.
After many inspections, seven bidders registered at the sale at Naracoorte where the property was sold at auction for $7.8 million equating to $4168 per acre - a record for the Stewarts Range/Spence District.
This sale result along with other properties Ruralco Property has transacted in the mid south-east during 2019 indicate they are witnessing new market values with increases of up to 30 per cent in the past six to 12 months.
Properties transacted in the mid south-east during 2019 indicate new market values with increases of up to 30 per cent in the past six to 12 months.
In some cases, this is equating to well in excess of $1250 per dry sheet equivalent.
The value of underground water taking licence has begun increasing, albeit gradually.
Allocations associated with higher profitability irrigation enterprises, are fetching up to $2000 per megalitre while licences with less intensive irrigation pursuits are attracting buyers at between $550 and $650 per megalitre with the odd sale up to $750 per megalitre.
The ongoing theme for rural sales in 2019 is a lack of property available for sale and strong unsatisfied demand.
This demand is coming from those including investors seeking better financial returns and the grazing fraternity who are enjoying excellent terms of trade.
Several dynamics are at play including a lack of breeding stock nationally along with a growing appetite for South Australian prime red meat.
Official interest rates continue to become keener.
A reduction of half a percent from 1.5pc compared with a half a percent from say 5pc is a massive proportional difference which greatly assists the business case for those purchasing rural land.
While those property owners who may be potential sellers choose to remain farming on account of the attractive returns, owners who do decide to sell into the current market will be well rewarded.
Ruralco Property are currently advising prospective sellers on the best way of achieving the maximum result when offering their property into this current buoyant market.
- Contact: Cameron Grundy, 0408 843 096, Ruralco Property Naracoorte.