Traditionally, a quiet winter in the rural property market is followed by increased spring activity. 

This year rising interest rates, climatic challenges and falling commodity prices have increased levels of uncertainty for many farmers, dampening their appetite to buy and sell land. While this is largely a predictable phase of the economic cycle, that doesn’t make it any easier to negotiate, particularly for those with significant levels of debt. As a consequence, over the past few months buyers and sellers have not been hugely motivated to come to the market. 

What that means is that those who otherwise would have come forward to sell for reasons of family succession, retirement, or to consolidate their holdings have held back, for now at least. 

Assuming we have probably reached the low point of the cycle, an upswing is not too far away. Some have already seen the earliest indications of a recovery, and while such signs will need to be confirmed before the market responds fully, those who catch the initial surge of the wave will do best. 

For success in the rural property market, as with virtually everywhere else, good preparation pays dividends.

Buyers need facts to evaluate whether to purchase. Full and accurate farm records should include: 

• Basic property information
• Stocking rates and holding capacity
• Production history and supply agreements 
• Consents
• A catalogue of recent improvements
• Inputs 
• Business expenses

Potential buyers will look for this information to help them make a sound, confident business decision about whether to buy your property. Gathering these facts well before the farm is offered for sale will address those reasons that might otherwise persuade buyers to hesitate. Without comprehensive information, you may be selling your farm short, and may well miss out on achieving its true value. 

Therefore, if you are thinking of selling when the market improves, even if you don’t intend to do so for another year or so, now is the best time to start your preparation, by collating all the relevant documentation and contacting a trusted rural property salesperson.

To evaluate your options to buy or sell a farm, orchard, or any other rural property, contact a PGG Wrightson Real Estate salesperson near you. Our nationwide network of specialist salespeople is on hand to help you achieve your property goals. Encompassing deep experience and decades of local knowledge, fully attuned to those who do business on the land, we know our region, we know the market, and we look forward to hearing from you soon.

Steps for Successfully Selling Your Farm

If you are selling a farm or considering selling in the next 12 to 18 months, here are some basic ideas that will help reduce the stress and improve the outcome during this complex time.

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