water markets

Agriculture’s dream run of rising land and water values coming to an end

11 July 2018

Peter Hunt, The Weekly Times
11 July 2018

AGRICULTURE’S overheated land and water markets are coming off the boil, as commodity prices plateau, banks move to raise interest rates and capital gains subside.

Farmers and investors have enjoyed a dream run of double-digit growth in land and water values in recent years. Aither consulting’s water entitlement index has doubled since mid-2015, as investors poured into the market, with a megalitre of Murray River entitlement rising from $1800 back then to at least $3600 today.

Land values have also boomed. Rural Bank reported a 21.6 per cent surge in cropping property values across northwest Victoria last year and a 24.3 per cent hike in southern NSW values. Even southern dairy farming country has hit $12,000/ha.

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