Rural Australia’s property price free fall felt in western Victoria

An agribusiness leader says “tougher times” are coming with a rural property price crunch set to erode profitability

Rural property prices are in free fall and Victoria’s fertile Western District is feeling the full impact, an agribusiness leader says.

goFARM managing director Liam Lenaghan said much of rural Australia had been hit by a 25 to 30 per cent property price correction, with its impact to flow to farming budgets.

“I don’t think prices are going to plateau — I think they’re going to collapse, in terms of land prices,” Mr Lenaghan said.

NFF vice president David Jochinke, journalist Sue Neales, Fox and Lillie Corowa area manager Jenni Turner and goFARM managing director Liam Lenaghan. Picture: Alex Sinnott

“I think they’re completely over-inflated. And I think we’re seeing (the collapse) already.

“Last year, only 12 months ago or 18 months ago – head down to the blue-blood region of the Western District and farmland was $12, $13, $14 and $15,000 an acre.

“And now you talk to agents and valuers down there and they’re saying ‘it’s got to be a cracking joint to make $8000 or $9000’ (an acre).

“Well, $8000 or $9000 an acre, you’ve still a lot of wheat, it’s still a lot of sheep or wool you’ve got to grow to make that work.

GoFARM managing director Liam Lenaghan. Picture: Supplied

“As a relative drop from $12,000 back to $8000, that’s a huge correction.”

Mr Lenaghan made the grim prognosis at a Rural Press Club of Victoria panel discussion on Thursday morning.

He joined National Farmers’ Federation vice president David Jochinke along with Fox and Lillie Corowa area manager Jenni Turner in a discussion hosted by journalist Sue Neales.

Succession planning, environmental regulations and free trade agreements were also canvassed at the forum, with the $100 billion in agricultural output by 2030 a key focus.

Mr Jochinke said the 2030 target had “captured the imagination of not only our industry but the political sphere”.

“It’s no small feat to have agriculture having a common vision,” he said.

Ms Turner said workforce shortages needed to be mitigated by aiming recruitment efforts in new directions.

“We’re finding in our business that we need to attract people from other industries or other sectors of the community to come and work with us,” she said