The Farmers Club

The “Club Notes” for Thursday, the 30th of May, 2024.

By Dwain Duxson

Keeping our equity intact

I had an interesting reply from a Farmer that got me thinking about an issue that might surface, one we probably may never have thought of. Here is what he said: "I can foresee quite a bit of Land coming to the market in my area within the next five to ten years. In the current climate of higher (note I said higher, not high) interest rates along with other headwinds for Ag (i.e. government interference), I would say possibly more Land than local Farmers can buy. It is somewhat reassuring that Corporates will potentially be in the market; otherwise, I fear our equity could be under threat, which would be a problem for people like me with a bit of debt”. In the US, it is forecast that half the American Farming Land to change hands in the next decade. It could be similar here. Now, that might mean Land being handed down, sold to other Farmers, or Institutions, and the like. But what if we have a scenario where supply far outweighs demand? From a Farmers point of view, they are going to want, at the very least, to maintain equity levels, and that is for Farmers with debt or without. As soon as we start seeing equity retreat, we will see some trouble. You would have a bit of an understanding of what is going on in your area. Do you envisage a scenario like this where supply could outweigh demand? Reply to [email protected]

Securing Food Supply Survey

This survey here is aimed at Victorians, but if you are outside Vic and feel strongly enough about this matter, please don’t hesitate to fill it out. This has been commissioned by the Parliament of Victoria, so here is your chance to have some real impact. See the press release here.

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