My phone’s been running hot with clients starting to think about their next move, and while some are concerned, many are starting to see opportunity.

As expected, the economic environment is driving a lot of our conversations. It’s no secret fuel costs are tracking well above previous years and still climbing. It’s a stark reminder of how quickly things can shift, and how much sits outside your control, no matter how well you run your operation.

That’s usually where the conversation turns, not away from farming but to what sits alongside it.
Australian farmland has been a strong performer, with Rural Bank analysis showing it has outperformed the ASX200 and residential property over five-, 10- and 20-year timeframes. At the same time, rising property values have strengthened farmers’ equity positions, with ABARES reporting broadacre producers’ ratio of owned capital to debt reached 91% in 2023-24.

A lot of the famers we work with have built wealth over time through hard work and backing themselves year after year. But when most of that wealth is tied up in the farm, everything tends to move together. Good seasons, tough seasons, input costs, fuel prices – it’s all connected.

We’re seeing that again now. The question for many is how do we continue to diversify our wealth to build something income streams outside of farm operations?

For one family, with two young kids and a sheep and wheat operation, diversification meant buying a simple site just outside the Perth CBD. We’re now working through plans to develop three units and hold them long term, creating an income stream that isn’t tied to the farm.

For another client, who are further along in their journey, the thinking is a bit different. They’ve spent decades building their asset base and are now looking at what the next stage looks like. It’s less about growth and more about structure. As part of that, they’ve secured property in the south west they can transition into down the track.

In another situation, we’ve been able to acquire additional commercial properties to add to a client’s existing portfolio. These off-farm investments are providing solid low risk additional cash flow.

Different life stages, but it’s the same idea and the current economic environment is only bringing these conversations forward.

The good news is, in the majority of cases the fundamentals are there, land values are strong, balance sheets are solid, and that creates options.

If diversification is something you’ve been thinking about, now’s a good time to start or continue the conversation, I welcome your call for a confidential chat.

Andrew Johnson
Managing Director
0418 194 101