Potential agricultural boom areas

[Jayjayjay]

Many are suggesting the next boom is going to be the soft commodities/agriculture sector. Given what happened to some significant mining areas over the past decade, I thought getting some ideas on potential significant agricultural regions/towns could be beneficially going forward.
Would love to hear people thoughts here.

 

[one world]

If milk prices in China are any indication, you may well be right.

Topcropper might advise us as to where productive agricultural land can be had without busting one's bank account.

 

[Ausprop]

http://au.news.yahoo.com/thewest/re...heap-milk-for-asia-spells-threat-to-industry/

 

[topcropper]

Just about the only way Australian farmers stay productive is by running a big scale mechanised business and try to employ few workers. Much the same as the mining industry.

If there was some huge agriculture boom, I could just see farmers making a lot more profit, farm land prices shooting up, and rural towns doing a bit better, but I don't think there'd be the towns booming like as in mining towns, as Australian farms still wouldn't employ many workers.


See ya's.

 

[Angel]

The farmers I know use overseas backpackers and offer them free accommodation and food in exchange for work. No rentals there for us.

 

[Angel]

The farmers I know use overseas backpackers and offer them free accommodation and food in exchange for work. No rentals there for us.

 

[Jayjayjay]

The idea here was to get some ideas of areas that MAY benefit from a POSSIBLE ag boom.
I doubt any Ag boom would be comparable to mining boom, however i think some possibilities may arise.
Not just in pure ag areas, but also affiliated industries such as fertiliser, potassium miners etc, processing regions, ports etc etc etc
Cheers

 

[topcropper]

I'm a grain grower. As far as I'm concerned the boom started in 2007 and still continues. It's been pretty good for my business. Land prices of good grain growing land have risen heaps as you'd expect.





Charts for other grains look identical to wheat.


See ya's.

 

[Icarus]

Was just reading an artile in this week's QLD Country Life about Keith De Lacey (former QLD Treasurer and Macarthur Coal Chair) buying up big in Northern Australia for cattle production.

He predicts a boom, but I don't see cattle prices shooting sky-high any time soon, there are just too many factors going against it at the moment (over supply, live ex trade up the creek, monopoly by big supermarkets, large debt in the rural sector, drought in w'ern QLD, relatively high land prices, ageing workforce etc.) things may be a little different over the farming side of the fence though, can't comment on that..

Grazing land prices up north have fallen over the last few years, but it'd be a brave man who'd gamble an agricultural boom is on the horizon. For our sake, I hope this is correct, but I'm not game enough to sink any hard earned coin in until something drastic changes in our mindset/economy/government.

Edit: Similar article from NQ Register - http://www.northqueenslandregister....le-beef/next-boom-cattle-de-lacy/2663482.aspx

 

[DaveM]

Wouldnt agri booms be spread across large geographical areas? Unlike say, iron ore, which is found in specific locations, cattle or sheep or cotton can be grown across vast areas which are often sparsely populated.

If there is an agri boom, I would think large regional hubs for processing and transport of the products would be your best bet?

 

[pursefattener]

There has been talk of an agri boom for a few years now but I'm not so sure where the ramp up in demand is going to come from . Many of the talked of country's from south east Asia are actually net exporters of food , at least in some commodities .

I run a dairy operation and the financial year just gone would be the toughest I think I have been through for at least 20 years .

Service towns in the more reliable grain growing areas might be worth a look . Most probably grain would be the one to boom first and then beef , dairy , pork etc follow . The $A would have to come off a bit more too .

Currently superannuation funds don't invest much in agriculture but if prospects become brighter then they may well do so . If this were to happen , the price of good farm land may appreciate rather quickly .

DaveM , I agree that major regional hubs might be worth a look . Margaret Lomas keeps banging on about this on her show from time to time . I find her pain full to listen to by the way ...

I think TC is right about agriculture here in Australia needing to be highly industrialised to be competitive . The cost of employing people is getting way out of hand . I know in dairying, robotic milking has been around for a while now but so far most of it is really only aimed at the confinement systems of the northern hemisphere . New robotics that can be applied to existing rotary s and general automation of most things will reduce the need for employees somewhat .