The trifecta of Goodness

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By Dwain Duxson.

The trifecta of Goodness - I know a few people who have recently leased their Farm out for pretty good coin, and it got me thinking that leasing isn't a straightforward option for everyone. The people I mentioned were in the right position to do so.

The old 5 per cent of the value of the Property rule has gone out the door, and there seems to be different values for different areas, and it can depend on what sort of commodity you're into. For instance, some are getting $400 an acre in the Yorke Peninsula (SA) because they can grow Lentils. That would be the clubhouse leader, and it comes down from there. If you have Livestock Country only, then you probably can't demand as much as Cropping Country right at this point, but these things can change around.

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Leasing your country out is not for everyone for several reasons; firstly, many who own Land probably don't want to do it. Also, debt plays a big part because those with too much debt can't do it because the numbers just don't work. On current figures it would be cheaper to lease rather than borrow and buy right now.

Many who have earned the right to lease out have usually paid for the Land through production over the years, so leasing can be a way they retain an interest in Agriculture. I'm calling it the trifecta of Goodness (top of my head) in that you still have retained an appreciating asset, you get an income off that asset, and you don't have the pressures of Farming to contend with anymore. You handball that to someone else. Would you ever think of leasing your place out? Reply to dwaind@farmtender.com.au

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