This + remove any guarantees implied or explicit for other sectors / private companies (such as for the banks).
Lets give our farmers grants not Holden
- Thread starter Nigel Kibel
- Start date
Are you talking about farm management deposit scheme? Where a farmer puts money away in good years, and can get it out in bad ones? All this does is makes tax fair. When the money comes out in a bad year it is still taxed!
You must realise that sometimes a farmer might make a quarter million profit one year, then nothing the next few? Surely you can see how they are a bit different.
From the Australian taxation office,.....
Are you talking about where income can be averaged out among the rest of the family in the business? So that's no different to any other business.
Are you talking about the diesel tax rebate. Farmers get a refund back from fuel taxes because their machinery does not use the road system, which is heavily subsidised by general taxes. Just like miners. If farmers and miners didn't get this rebate, it would mean they'd be subsidising everyone else by paying for roads they don't use. Farmers still pay full price for fuel used in cars and trucks that use the road system.
What are these depreciation benefits?
What are these incentives to connect power, phone, build a dam etc. It costs a farmer a small fortune to put in a few power poles. Phone, everything else. Show me some examples of what you are talking about?
See ya's.
If food is the next boom industry, why would the industry need to be supported?
See ya's.
Most good farming land up north is already farmed. Mainly North Queensland along the coast. But it's a tiny fraction of the land. Head inland a bit and the land is some of the most infertile anywhere in the world. It gets a thousand mills of rainfall in the 4 months of the wet season, and then nothing for the rest. Just terrible conditions to grow anything.
The Ord River has been one big disaster. Economically speaking anyway. And it's the best bit of land up there, and it's tiny. Nothing will grow in the wet, as it's too wet and too many insects, disease [caused by waterlogging and constant humidity] and other pests. But great conditions in the dry if irrigated. Problem is it's mostly flat up there, and not many other areas to build dams, to catch water in the wet, to irrigate in the dry. Historically, agriculture developed in temperate fertile areas of the world with 500 to 800 mill rainfall, and continue to supply most of the worlds food.
All this talk of moving farming to the wet north is just rubbish by people who don't have any idea. It takes more than just a thousand mills of rain in 4 months on rubbish dirt to grow food profitably.
See ya's.
If you were starting anew and had to buy a farm in Australia, where would it be Topcropper?
Your remarks are interesting. Until you mentioned it, I (foolishly) thought that decent rainfall and fertilizer were the two things that would assure good returns.
I'd stay right where I am. Black soil plains of northern NSW. Incredible water holding capacity and natural fertility. 670 mills of summer dominant rainfall. Temperate climate. I can have 300 mills of water in the soil, ready for the next crop, as I plant.
If climate change is happening, climate scientists reckon my rainfall will not fall, but may increase over summer and reduce in winter. That would be perfect.
I'm an hour from Tamworth. Nearly an hour from the closest traffic light. A few hours from the coast, and east of me is the unpopulated coastal mountains, rainforests and rivers of Northern NSW, my favourite part of Australia.
See ya's.
That's a bit biased isn't it TC ? Your area might be ace for broad acre crops etc but would you look to buy in there as an investor ?
What about other agricultural areas and activities ? Parts of Gippsland closer in to Melbourne offer excellent potential for capital gain IMO . Also areas of Tassie .
Farms with reliable irrigation will also bring a premium in time I think .
Yeah. Biased absolutely. But I just answered the question honestly. I'm guessing you wouldn't leave where you are either?. If I went anywhere else I wouldn't know how to do almost anything. I've done farm tours of almost all farming areas of Australia, and it's amazing how different they all are.
See ya's.
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In terms of dollars per acre and returns, what's your take on this Pursefattner? Where would you be buying good-value farming land?
Quote:
Originally Posted by pursefattener
What about other agricultural areas and activities ? Parts of Gippsland closer in to Melbourne offer excellent potential for capital gain IMO . Also areas of Tassie . .
In terms of dollars per acre and returns, what's your take on this Pursefattner? Where would you be buying good-value farming land?
Good question One World . Unlike TC I haven't really seen a lot of Australia .
I'm in the dairy farming business so that's my focus . Good value farming land is sort of all over the place in Victoria at least .
It is definitely a buyers market . I'm in SW Victoria near Camperdown and I have been buying farm land around me for years .
Terms of trade to the end of June were terrible for me . Looking at much better prospects now that the $A has fallen .
Have a look at SW Victoria
Originally Posted by pursefattener
What about other agricultural areas and activities ? Parts of Gippsland closer in to Melbourne offer excellent potential for capital gain IMO . Also areas of Tassie . .
In terms of dollars per acre and returns, what's your take on this Pursefattner? Where would you be buying good-value farming land?
Good question One World . Unlike TC I haven't really seen a lot of Australia .
I'm in the dairy farming business so that's my focus . Good value farming land is sort of all over the place in Victoria at least .
It is definitely a buyers market . I'm in SW Victoria near Camperdown and I have been buying farm land around me for years .
Terms of trade to the end of June were terrible for me . Looking at much better prospects now that the $A has fallen .
Have a look at SW Victoria
What sort of money are you paying per Ha?
Anyone but the new car industry. I want to be like NZ which doesn't have any car manufacturing and is allowed to do jap imports etc.
Cars there are cheaper than here. Before they closed off the 12 Yr Import Rule we imported a car from NZ that was from Japan. It's still going strong at 14 - a very cosseted and tweaked Subie
People might be able to afford to service their cars if they didn't have to pay such stupid amounts for a decent car.
There was an article in the financial review about 6 weeks ago that claimed that Australian car manufacturers received way less financial support than German and US car manufacturers and that most others in the world received substantial assistance. It surprised me.
I'd like to know more about what subsidies and assistance other countries give to their manufacturing industries before I say Australia's has to stand on it's own with no help whatsoever.
See ya's.
Ive been buying in NW Vic. There has been a ripple effect from the SW, by people saying land is too expensive there. But after 30%Capital gains over the last 3 years and gross yields on present prices of just over 5% immediate future gains maybe slower.
Quote:
Originally Posted by pursefattener
I'm in the dairy farming business so that's my focus . Good value farming land is sort of all over the place in Victoria at least .
What sort of money are you paying per Ha?
My latest purchase was at 9250 ha . No capital expenditure required , home , sheds , fencing , fert history etc all top notch . Bare land of course will be less .
Originally Posted by pursefattener
I'm in the dairy farming business so that's my focus . Good value farming land is sort of all over the place in Victoria at least .
What sort of money are you paying per Ha?
My latest purchase was at 9250 ha . No capital expenditure required , home , sheds , fencing , fert history etc all top notch . Bare land of course will be less .
I should point out the previous statement was taking into account a turn around in the season and the grain price outlook in the last month and there should be very strong competition for land in the next 6 months. There will be no bargains, especially with the low interest rates. In fact I sold one block to lock in some profits, over 400 GC, on another block the annual lease is the same as the original purchase price. 100% yield.
In my area there have been no capital gains really . Only capital losses
For the last couple of years anyway ..
Very few sales have been happening .
Which of course is what makes it so attractive IMO .
On the Liverpool Plains, flat black soil farming land sells for about $7,500 per hectare. Sloping grazing land, partly to mostly arable, black soil, probably $4,000 per hectare. Hilly rocky grazing, lighter or red soil, maybe $2,500 per hectare. This is all genuine farms, say bought by a farmer to make a profit.
But to complicate things, smaller farms of 50 to 200 hectares sell for a huge premium as lifestyle blocks. Land that would be worth $4000 per hectare to a farmer might go for $8,000 per hectare to a cashed up coal miner or retired business owner.
I haven't seen a drop in prices around here. Helped by good grain prices and continuing OK to good seasons and continuing flow of cashed up land buyers moving north over the range from the way overpriced [ridiculously expensive] Hunter region.
See ya's.
But to complicate things, smaller farms of 50 to 200 hectares sell for a huge premium as lifestyle blocks. Land that would be worth $4000 per hectare to a farmer might go for $8,000 per hectare to a cashed up coal miner or retired business owner.
I haven't seen a drop in prices around here. Helped by good grain prices and continuing OK to good seasons and continuing flow of cashed up land buyers moving north over the range from the way overpriced [ridiculously expensive] Hunter region.
See ya's.
